| The aim of the project is to examine to what extent selectedinstitutional variables affect the economic growth performance ofcountries. For this purpose, the latent variables approach will beused to come up with better proxies for various institutionalvariables that have been claimed to affect the economic growthperformance of countries. The newly constructed proxies will be usedin growth models, in which so-called robust estimators are combinedwith the extreme bounds analysis to take the problems of outliers andmodel uncertainty into account. Not only cross-country models will beestimated, but also models in which higher frequency data are used. |
