Bayesian model averaging is applied to robustly ascertain the determinants of various output volatility measures, including the downside semi-deviation of growth rates. Financial sophistication variables are found to have qualitatively different effects on volatility. The ratio of government...

This paper analyses the growth effects of EU structural funds using a new panel dataset of 124 NUTS-1/NUTS-2 regions over the time period 1995-2005. We extend the current literature with regard to at least three aspects: First of all, we extend the time period of investigation, using structural...

Due to problems with existing methodologies that aim to identify the causal impact of European Union cohesion policy on economic growth, we adopted a novel methodology. We first estimated 'unexplained economic growth' by controlling for the influence of various region-specific factors, and then...

One of the most fundamental issues worldwide is the economic interdependence of countries which affects their economic growth. Some new growth theorists such as Mankiw et al., Islam, Ertur and Koch, Lee, Yu and Yu Ho et al. consider geographical proximity and trade as spatial variables. This...

Regional scientists frequently work with regression relationships involving sample data that is spatial in nature. For example, hedonic house-price regressions relate selling prices of houses located at points in space to characteristics of the homes as well as neighborhood characteristics....

Pro-Poor Growth (PPG) is the vision of combining high growth rates with poverty reduction. Due to the myriad of possible determinants of growth and poverty a unique theoretical model for guiding empirical work on PPG is absent, though. Bayesian Model Averaging is a statistically robust framework...