Lederman, Daniel (contributor); … - 2008
consistent with
the economic growth literature can be written as:
(9) y
i
= a + h(ln(K/L)
i
) + f’X
i
+ e
i
,
where the … parity, X is matrix of other determinants of
cross-country income differences, and e is assumed to be white noise error. The … Barro (1991) is:
(10) y
i,t
- y
i,t-1
= a + g(y
i,t-1
) + h(ln(K/L)
i,t
) + f’X
i,t
+ e
i,t
.
The obvious …