This paper investigates whether non-primary exports directly or indirectly cause economic growth ... more This paper investigates whether non-primary exports directly or indirectly cause economic growth in the United Arab Emirates (UAE). This study performs the Johansen test to examine the presence of co-integration between the variables in an augmented production function. The Granger causality test is performed to investigate the short-run causality between non-primary exports and economic growth, while the long-run causality is investigated by employing the Toda and Yamamoto procedure. The empirical analysis indicates that the variables are co-integrated, and that short-run causality runs from non-primary exports to economic growth; results exhibit no evidence of direct causality from non-primary exports to economic growth in the long-run.
The goal of this paper is to revisit the influential work of Mauro [1995] focus-ing on the streng... more The goal of this paper is to revisit the influential work of Mauro [1995] focus-ing on the strength of his results under weak identification. He finds a negative impact of corruption on investment and economic growth that appears to be robust to endogeneity when using two-stage least squares (2SLS). Since the inception of Mauro [1995], much literature has focused on 2SLS methods revealing the dan-gers of estimation and thus inference under weak identification. We reproduce the original results of Mauro [1995] with a high level of confidence and show that the instrument used in the original work is in fact ’weak ’ as defined by Staiger and Stock [1997]. Thus we update the analysis using a test statistic robust to weak instruments. Our results suggest that under Mauro’s original model there is a high probability that the parameters of interest are locally almost unidentified in multivariate specifications. To address this problem, we also investigate other instruments commonly used in...
We present an overlapping-generations (OLG) macroeconomic model that applies a behavioral interpr... more We present an overlapping-generations (OLG) macroeconomic model that applies a behavioral interpretation of preferences for goods that generate health risks. In this paper proneness to poor health is viewed as a cognitive miscalculation by economic agents between their expected health state over various consumption bundles and the actual health care they require for their health outcome. To model this the paper borrows insight from prospect theory and applies the referencedependent preference framework to the specication of out utility model. In our model of the economy individual preferences are decomposed into intrinsic consumption utility and gain-loss utility associated with the miscalculation. Agents in the economy are stratied in their health states as well as their expected health care consumption according to some probability measure over the population. Heterogeneity introduced in this way generates consumers of varied proneness to risk associated with consumption of unheal...
We present an overlapping-generations (OLG) macroeconomic model that applies a behavioral interpr... more We present an overlapping-generations (OLG) macroeconomic model that applies a behavioral interpretation of preferences for goods that generate health risks. In this paper proneness to poor health is viewed as a cognitive miscalculation by economic agents between their expected health state over various consumption bundles and the actual health care they require for their health outcome. To model this the paper borrows insight from prospect theory and applies the reference-dependent preference framework to the specification of out utility model. In our model of the economy individual preferences are decomposed into intrinsic consumption utility and gain-loss utility associated with the miscalculation. Agents in the economy are stratified in their health states as well as their expected health care consumption according to some probability measure over the population. Heterogeneity introduced in this way generates consumers of varied proneness to risk associated with consumption of u...
It is well documented that resource-rich countries, on average, have experienced poor growth perf... more It is well documented that resource-rich countries, on average, have experienced poor growth performance compared to non-resource economies, often described as the "resource curse". Weak governance and institutional infrastructure could have a direct negative eect on growth by lowering the productivity of the economy. In addition, in more shock-prone economies, such as oil exporters, bad institutions can also aect
This series presents research findings based either directly on data from the German Socio-Econom... more This series presents research findings based either directly on data from the German Socio-Economic Panel Study (SOEP) or using SOEP data as part of an internationally comparable data set (e.g. CNEF, ECHP, LIS, LWS, CHER/PACO). SOEP is a truly multidisciplinary household panel study covering a wide range of social and behavioral sciences: economics, sociology, psychology, survey methodology, econometrics and applied statistics, educational science, political science, public health, behavioral genetics, demography, geography, and sport science. The decision to publish a submission in SOEPpapers is made by a board of editors chosen by the DIW Berlin to represent the wide range of disciplines covered by SOEP. There is no external referee process and papers are either accepted or rejected without revision. Papers appear in this series as works in progress and may also appear elsewhere. They often represent preliminary studies and are circulated to encourage discussion. Citation of such ...
Demography, Vol. 26, No. 1, February 1989 Relative Deprivation and International Migration Oded S... more Demography, Vol. 26, No. 1, February 1989 Relative Deprivation and International Migration Oded Stark Harvard University, 9 Bow Street, Cambridge, Massachusetts 02138, and Bar-Ilan University, Ramat-Gan, Israel J. Edward Taylor University of California, Davis, California ...
This paper investigates whether non-primary exports directly or indirectly cause economic growth ... more This paper investigates whether non-primary exports directly or indirectly cause economic growth in the United Arab Emirates (UAE). This study performs the Johansen test to examine the presence of co-integration between the variables in an augmented production function. The Granger causality test is performed to investigate the short-run causality between non-primary exports and economic growth, while the long-run causality is investigated by employing the Toda and Yamamoto procedure. The empirical analysis indicates that the variables are co-integrated, and that short-run causality runs from non-primary exports to economic growth; results exhibit no evidence of direct causality from non-primary exports to economic growth in the long-run.
The goal of this paper is to revisit the influential work of Mauro [1995] focus-ing on the streng... more The goal of this paper is to revisit the influential work of Mauro [1995] focus-ing on the strength of his results under weak identification. He finds a negative impact of corruption on investment and economic growth that appears to be robust to endogeneity when using two-stage least squares (2SLS). Since the inception of Mauro [1995], much literature has focused on 2SLS methods revealing the dan-gers of estimation and thus inference under weak identification. We reproduce the original results of Mauro [1995] with a high level of confidence and show that the instrument used in the original work is in fact ’weak ’ as defined by Staiger and Stock [1997]. Thus we update the analysis using a test statistic robust to weak instruments. Our results suggest that under Mauro’s original model there is a high probability that the parameters of interest are locally almost unidentified in multivariate specifications. To address this problem, we also investigate other instruments commonly used in...
We present an overlapping-generations (OLG) macroeconomic model that applies a behavioral interpr... more We present an overlapping-generations (OLG) macroeconomic model that applies a behavioral interpretation of preferences for goods that generate health risks. In this paper proneness to poor health is viewed as a cognitive miscalculation by economic agents between their expected health state over various consumption bundles and the actual health care they require for their health outcome. To model this the paper borrows insight from prospect theory and applies the referencedependent preference framework to the specication of out utility model. In our model of the economy individual preferences are decomposed into intrinsic consumption utility and gain-loss utility associated with the miscalculation. Agents in the economy are stratied in their health states as well as their expected health care consumption according to some probability measure over the population. Heterogeneity introduced in this way generates consumers of varied proneness to risk associated with consumption of unheal...
We present an overlapping-generations (OLG) macroeconomic model that applies a behavioral interpr... more We present an overlapping-generations (OLG) macroeconomic model that applies a behavioral interpretation of preferences for goods that generate health risks. In this paper proneness to poor health is viewed as a cognitive miscalculation by economic agents between their expected health state over various consumption bundles and the actual health care they require for their health outcome. To model this the paper borrows insight from prospect theory and applies the reference-dependent preference framework to the specification of out utility model. In our model of the economy individual preferences are decomposed into intrinsic consumption utility and gain-loss utility associated with the miscalculation. Agents in the economy are stratified in their health states as well as their expected health care consumption according to some probability measure over the population. Heterogeneity introduced in this way generates consumers of varied proneness to risk associated with consumption of u...
It is well documented that resource-rich countries, on average, have experienced poor growth perf... more It is well documented that resource-rich countries, on average, have experienced poor growth performance compared to non-resource economies, often described as the "resource curse". Weak governance and institutional infrastructure could have a direct negative eect on growth by lowering the productivity of the economy. In addition, in more shock-prone economies, such as oil exporters, bad institutions can also aect
This series presents research findings based either directly on data from the German Socio-Econom... more This series presents research findings based either directly on data from the German Socio-Economic Panel Study (SOEP) or using SOEP data as part of an internationally comparable data set (e.g. CNEF, ECHP, LIS, LWS, CHER/PACO). SOEP is a truly multidisciplinary household panel study covering a wide range of social and behavioral sciences: economics, sociology, psychology, survey methodology, econometrics and applied statistics, educational science, political science, public health, behavioral genetics, demography, geography, and sport science. The decision to publish a submission in SOEPpapers is made by a board of editors chosen by the DIW Berlin to represent the wide range of disciplines covered by SOEP. There is no external referee process and papers are either accepted or rejected without revision. Papers appear in this series as works in progress and may also appear elsewhere. They often represent preliminary studies and are circulated to encourage discussion. Citation of such ...
Demography, Vol. 26, No. 1, February 1989 Relative Deprivation and International Migration Oded S... more Demography, Vol. 26, No. 1, February 1989 Relative Deprivation and International Migration Oded Stark Harvard University, 9 Bow Street, Cambridge, Massachusetts 02138, and Bar-Ilan University, Ramat-Gan, Israel J. Edward Taylor University of California, Davis, California ...
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