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Determinants of Long-term Economic Development: An Empirical Cross-country Study Involving Rough Sets Theory and Rule Induction

Author

Listed:
  • Obersteiner, Michael

    (Institute for Advanced Studies)

  • Wilk, Szymon

    (International Institute for Applied Systems Analysis)

Abstract

Empirical findings on determinants of long-term economic growth are numerous, sometimes inconsistent, highly exciting and still incomplete. The empirical analysis was almost exclusively carried out by standard econometrics. This study compares results gained by cross-country regressions as reported in the literature with those gained by the rough sets theory and rule induction. The main advantages of using rough sets are being able to classify classes and to discretize. Thus, we do not have to deal with distributional, independence, (log-)linearity, and many other assumptions, but can keep the data as they are. The main difference between regression results and rough sets is that most education and human capital indicators can be labeled as robust attributes. In addition, we find that political indicators enter in a non-linear fashion with respect to growth.

Suggested Citation

  • Obersteiner, Michael & Wilk, Szymon, 1999. "Determinants of Long-term Economic Development: An Empirical Cross-country Study Involving Rough Sets Theory and Rule Induction," Transition Economics Series 11, Institute for Advanced Studies.
    • Handle: RePEc:ihs:ihstep:11
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    File URL: https://irihs.ihs.ac.at/id/eprint/1202
    File Function: First version, 1999
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    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
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    5. Xavier X. Sala-i-Martin, 1997. "I Just Ran Four Million Regressions," NBER Working Papers 6252, National Bureau of Economic Research, Inc.
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    7. Durlauf, Steven N. & Quah, Danny T., 1999. "The new empirics of economic growth," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 4, pages 235-308, Elsevier.
    8. Sala-i-Martin, Xavier, 1997. "I Just Ran Two Million Regressions," American Economic Review, American Economic Association, vol. 87(2), pages 178-183, May.
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    Cited by:

    1. Peter Nijkamp & Jacques Poot, Victoria, 2002. "Meta-Analysis of the Impact of Fiscal Policies on Long-Run Growth," Tinbergen Institute Discussion Papers 02-028/3, Tinbergen Institute, revised 23 Apr 2003.
    2. Nijkamp, Peter & Poot, Jacques, 2004. "Meta-analysis of the effect of fiscal policies on long-run growth," European Journal of Political Economy, Elsevier, vol. 20(1), pages 91-124, March.

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    More about this item

    Keywords

    Economic growth; Rough sets; Rule induction;
    All these keywords.

    JEL classification:

    • C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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