Working Paper: CEPR ID: DP4349
Authors: Randall K. Filer; Dana Hajkova; Jan Hanousek
Abstract: Replication of two recent studies of growth determinants shows that results are sensitive to the choice of data from which growth rates are calculated, especially with respect to whether economic convergence has occurred. Previous warnings against using data that has been adjusted to increase cross-country comparability to study within-country patterns over time (growth rates) have been largely ignored at the cost of possibly contaminating the conclusions.
Keywords: growth; measurement
JEL Codes: C82; O47
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| choice of data source (Y10) | measured growth rates (O41) |
| different data sources (IFS and PWT) (Y10) | opposite signs in GDP growth (E20) |
| using domestic prices (P22) | lack of convergence (F62) |
| adjustments for cross-country comparability (O57) | distort within-country growth patterns (O57) |
| data source used for growth rates (Y10) | relationship between income inequality and growth (F62) |
| complex adjustments (F32) | distort understanding of growth determinants (O11) |