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One Way To Learn About What Makes Some Countries Richer
One Way To Learn About What Makes Some Countries Richer
One Way To Learn About What Makes Some Countries Richer
countries richer
One way to learn about what makes some countries richer
One way to learn about what makes some countries richer is to run statistical tests to see which
factors are good at predicting a nation’s level of productivity. Sometimes it turns out that a
relationship is just a coincidence (like the fact that people in rich countries eat more ice cream),
while other statistical tests really can tell you about the ultimate causes of productivity. A
statistical test can’t tell you everything, but it might help point you in the right direction. In
courses on econometrics and statistics, you can learn about how to run sensible tests.
Let’s look at one well-known set of tests, to see if what you learned in this chapter matches the
statistical evidence. Here are 17 variables that turned out to be very strong predictors of a
nation’s long-run economic performance in literally millions of statistical tests
They are in rank order, and a “+” means more of that value was good for long-run productivity:
a. Which of these factors sound like the “three factors of production?” Which ones do they
sound like?
b. Which of these factors sound like the “five key institutions?” Which ones do they sound like?
d. The western United States was a Spanish colony until 1849. On average, former Spanish
colonies have had poor economic performance. Does the western United States fit that pattern?
Why or why not?
ANSWER
https://solvedquest.com/one-way-to-learn-about-what-makes-some-countries-richer/