Weak links: Half truth and good studies
Maria-Carmen GUISAN, http://www.usc.es/economet/guisan.htm | November 29, 2008
Cross section and pool regressions may be very interesting when authors show a deep and true analysis of direction of causality and may be uninteresting or with little interest when there is only a mechanical application of econometric tests. Regarding the comments in “Weak links” by Erwin Bulte, I find that it is a “half truth”: It is true that there are many researchers that try to find, in a mechanical way, significant coefficients in their models with little or null regard to the direction of causality, or to the direct and indirect effects of a third variable, but it is also true that a few of the best researchers do not work in a mechanical way but with deep analysis of the direction of causality and they have found many interesting results with international comparisons. It should be highly positive for developing countries if economics advisors would contribute to select and spread the best knowledge provided by the good econometric studies to help those countries. For example economists should agree to convince and persuade police makers, and international donors, about the important positive role of education on economic development and suggest other important measures that have been proven by several interesting studies. This “broker on line” website may be a positive contribution in this regard if we see the "another half truth" as to say the results of the good cross-section and pool studies.





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