Policymakers Beware : The Use and Misuse of Regressions in Explaining Economic Growth
نویسنده
چکیده
I. Causality, Measurement and Robustness: The Usual Suspects Suppose a policymaker is deciding whether to increase her country’s exposure to international trade. A new report comes out filled with growth-regression exercises that attribute a significant increase in growth to trade liberalization. Prominent in the report are a set of visually impressive scatter plots on which a regression line is superimposed in order to show that more open economies have higher growth rates. How should this information affect her decision?
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