Unveiling covariate inclusion structures in economic growth regressions using latent class analysis

B-Tier
Journal: European Economic Review
Year: 2016
Volume: 81
Issue: C
Pages: 189-202

Score contribution per author:

0.404 = (α=2.02 / 5 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We propose the use of Latent Class Analysis methods to analyze the covariate inclusion patterns across specifications resulting from Bayesian model averaging exercises. Using Dirichlet Process clustering, we are able to identify and describe dependency structures among variables in terms of inclusion in the specifications that compose the model space. We apply the method to two datasets of potential determinants of economic growth. Clustering the posterior covariate inclusion structure of the model space formed by linear regression models reveals interesting patterns of complementarity and substitutability across economic growth determinants.

Technical Details

RePEc Handle
repec:eee:eecrev:v:81:y:2016:i:c:p:189-202
Journal Field
General
Author Count
5
Added to Database
2026-01-25