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Jointness of Growth Determinants


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Working Paper

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Authors

Doppelhofer, Gernot 
Weeks, Melvyn 

Abstract

Model uncertainty arises from uncertainty about correct economic theories, data issues and empirical specification problems. This paper investigates mutual dependence or jointness among variables in explaining the dependent variable. Jointness departs from univariate measures of variable importance, while addressing model uncertainty and allowing for generally unknown forms of dependence. Positive jointness implies that regressors are complements, representing distinct, but interacting economic factors. Negative jointness implies that explanatory variables are substitutes and act as proxies for a similar underlying mechanism. In a cross-country dataset, we show that jointness among 67 determinants of growth is important, ffecting inference and economic policy.

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Faculty of Economics

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