7/17/2019 Lab12C

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Labs for Weil, Economic Growth: Lab 12C

Lab 12C

Government and Growth

Assignment

The government of Nigeria has commissioned you to study the effects of government on the

growth rocess! "sing the results of your cross#country study and ta$ing into account current

measures of government olicy in Nigeria, Nigerian government officials would li$e you to tell

them which asect of their government should they change first in order to get the largest growth

imact! %n other words, if you could recommend only one olicy change to the Nigerian

government, what would it be&

%n answering this 'uestion, you will need to be sure to control for variables in your regression that

might be related to government olicy and also to growth! As you thin$ about the aroriate

emirical secification, consider carefully the mechanisms through which you believe

government affects growth! (our ideas will determine whether or not your emirical

secification contains a direct effect of government on growth or an indirect effect )i!e!, an effect

that oerates by affecting a fundamental variable that has a direct effect*!

+f course, in order to ma$e a convincing recommendation, you will need to interret your results,

describe your data, your methods, and the shortcomings of your analysis! "ltimately, you will

need to ma$e your recommendation based on both statistical significance and the magnitude of

the imact of these coefficients!

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