The endogeneity of the natural rate of growth – an empirical study for Latin‐American countries |
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Authors: | Lena Vogel |
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Affiliation: | Department Economics and Politics , University of Hamburg , Germany |
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Abstract: | The aim of this paper is to analyse the sensitivity of the natural rate of growth to the actual rate of growth for a sample of 11 Latin‐American countries, assuming the natural rate to be determined endogenously by changes in the actual rate of growth. The natural rates of growth are estimated in a system of SUR estimations over the period 1986–2003. In order to determine whether they react endogenously to changes in the actual rate of growth, a dummy variable for boom periods is added to the system of regressions. The results confirm the hypothesis about the endogeneity of the natural rate of growth. |
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Keywords: | natural rate of growth actual rate of growth endogeneity Latin America seemingly unrelated regressions |
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