method additionally allows for other forms of cross-sectional heterogeneity. We consider a two-group approach for the model … Dirichlet process (DP) mixture of multivariate normals (other cross-sectional heterogeneity). We develop our approach for … continuous heterogeneity leads to an improved in-sample and out-of-sample performance and interesting insights. These findings …

this joint treatment by extending the linear model to allow for multiple-regime parameter heterogeneity of the type … suggested by new growth theory, while addressing the variable selection problem by means of Bayesian model averaging …. Controlling for variable selection uncertainty, we confirm the evidence in favor of new growth theory presented in several earlier …