Re: st: GDP growth and explanatory variables [was: ATE in stata 7, matching]

["Katarina Lynch" <ferkel999@hotmail.com>]

Stas and Scott,

you dropped very interesting comments!

The hypothesis I am trying to test is whether countries self-select 
themselves to different equilibrium levels between growth and another 
explanatory variable, i.e. whether there are some unobservable factors 
(location, culture, traditions, etc) that select countries to low GDP, low 
growh etc. The dependent variable is growth and i want to see if the effect 
of, e.g. government expenditures, on growth is different in sub-samples of 
poor/low growth, poor/high growth countries.

Quintile regression sounds attractive too. Will read the papers.

Kate

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