Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (Bace) Approach

  title={Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (Bace) Approach},
  author={Gernot Peter Doppelhofer and Ronald I. Miller and Xavier Sala-i-Martin},
  journal={Macroeconomics eJournal},
This paper examines the robustness of explanatory variables in cross-country economic growth regressions. It employs a novel approach, Bayesian Averaging of Classical Estimates (BACE), which constructs estimates as a weighted average of OLS estimates for every possible combination of included variables. The weights applied to individual regressions are justified on Bayesian grounds in a way similar to the well-known Schwarz criterion. Of 32 explanatory variables we find 11 to be robustly… 

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