How Do Structural And Policy Factors Affect A Country's Probability To Achieve The Most (Or The Least) Favorable Growth Path?
Source: Marquette University
The authors ask which economic policies can help a country create the most favourable conditions for development. They observe that the dynamics of several development indicators can be grouped into four clusters, each cluster corresponding to a different combination of growth and changes in inequality. Based on this observation, they define four different development scenarios and use limited dependent variable regressions to study how structural and policy factors affect a country's probability to achieve the most (or the least) favourable of these scenarios.