Bekaert, Geert (contributor); … - 2004
prime
X
it
+epsilon1
i,t+k,k
, (2)
where X
it
are the variables controlling for different levels of long-run per capita GDP … variable, Lib
i,t
, to the growth regression:
y
i,t+k,t
= βQ
i,1980
+γ
prime
X
i,t
+αLib
i,t
+epsilon1
i,t+k,k
(3)
where Q
i …