To Study the Determinants of Growth Between the Countries of the World,researchers

question 12

Essay

To study the determinants of growth between the countries of the world,researchers have used panels of countries and observations spanning over long periods of time .Some of these studies have focused on the effect that inflation has on growth and found that although the effect is small for a given time period,it accumulates over time and therefore has an important negative effect.
(a)Explain why the OLS estimator may be biased in this case.
(b)Explain how methods using panel data could potentially alleviate the problem.
(c)Some authors have suggested using an index of central bank independence as an instrumental.Discuss whether or not such an index would be a valid instrument.

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Definitions:

Personality

A rephrased definition: The composite of emotional, attitudinal, and behavioral response patterns that define an individual's unique personal identity and ways of interacting with their environment.

Schizophrenic

Pertains to a mental disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Personality Disorders

Mental health conditions characterized by enduring patterns of thought, feeling, and behavior that deviate significantly from cultural expectations, lead to distress or impairment, and are consistent across time and situations.

Construct Validity

The extent to which a test measures what it claims to measure or is theoretically supposed to measure.