SUCHE
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Political Economy of Development (Ph.D.)

Winter term  2012/2013

 

Prof. Dr. Axel Dreher

Tel: 06221- 54 - 2921
Fax: 06221- 54 - 3649
Office hour: please arrange per e-mail (office: 01.019 c+d)
Email: axel.dreher@awi.uni-heidelberg.de

 

Dates and Grading

Introduction:         Friday, 26 October, 13.30-15:00 p.m., 0.601, KWZ

Seminar:               End of the term, tba

Grading:               Presentation at the end of the term (80%)

                             ~ 5 page report (20%)

Evaluation (pdf)

 

Content

Replicates empirical studies on the political economy of development. Participants are expected to replicate the results of one paper, test for the stability of the results, prepare a short description of these tests and the results, and present the study and additional tests to the class. One of the following methods should be applied: (i) Extreme Bounds Analysis, (ii) Multiple Imputation, (iii) Correct marginal effect of interacted variables in non-linear models, (iv) Dynamic panel methods: correcting bias for small n and t.

 

Literature

Replication

 

Dewald, William, Jerry Thursby and Richard Anderson, 1986, Replication in Empirical Economics: The Journal of Money, Credit and Banking Project, American Economic Review 76: 587-603.

Hamermesh, Daniel, Replication in Economics, Canadian Journal of Economics 40, 3:715-733.

McCullough, Bruce, Kerry Anne McGeary and Teresa Harrison, 2006, Lessons from the JMCB Archive, Journal of Money, Credit and Banking 38, 4: 1093-1107.

McCullough, Bruce, Kerry Anne McGeary and Teresa Harrison, 2008, Do economics journal archives promote replicable research? Canadian Journal of Economics 41, 4: 1406-1420.

 

 

(i) Extreme Bounds Analysis

 

Gassebner, Martin, Michael Lamla and James Vreeland, 2012, Extreme Bounds of Democracy, Journal of Conflict Resolution, forthcoming.

Sturm, Jan-Egbert and Jakob de Haan, 2002, How robust is Sala-i-Martin’s robustness analysis? mimeo.

Sala-i-Martin, Xavier, 1997, I Just Ran Two Million Regressions, American Economic Review 87, 2: 178-183.

 

 

(ii) Multiple Imputation

 

Carlin, John B., John C. Galati and Patrick Royston, 2008, A new framework for managing and analyzing multiply imputed data in Stata, Stata Journal 8: 49-67.

Carlin, John B., Ning Li, Philip Greenwood and Carolyn Coffey, 2003, Tools for analyzing multiple imputed datasets, Stata Journal 3: 226-244.

Schafer, Joseph L. and Maren K. Olsen, 1998, Multiple imputation for multivariate missing-data problems: A data analyst’s perspective, Multivariate Behavioral Research 33: 545-571.

 

 

(iii) Marginal effects of interacted variables in non-linear models

 

Ai, Chunrong and Edward C. Norton, 2003, Interaction Terms in Logit and Probit Models, Economic Letters 80: 123-129.

Berry, William D., Jacqueline H.R. DeMeritt and Justin Esarey, 2010, Testing for Interaction Effects in Binary Logit and Probit Models: Is an Interaction Term Necessary, American Journal of Political Science 54, 1: 248-266.

Greene, William, 2010, Testing Hypotheses About Interaction Terms in Nonlinear Models, Economic Letters 107: 291-296.

 

 

(iv) Dynamic panel methods: correcting bias for small n and t

 

Arellano, Manoel and Stephen Bond, 1991, Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations, Review of Economic Studies 58: 277-297.

Blundell, Richard and Stephen Bond, 1998, Initial conditions and moment restrictions in dynamic panel data models, Journal of Econometrics 87: 115-143.

Bruno, Giovanni S.F, 2005, Approximating the bias of the LSDV estimator for dynamic unbalanced panel data models, Economics Letters 87: 361-366.

Bruno Giovanni S.F, 2005, Estimation and inference in dynamic unbalanced panel data models with a small number of individuals, Stata Journal 5, 4: 473-500.

Roodman, David, 2009, How to do xtabond2: An introduction to difference and system GMM in Stata, Stata Journal 9, 1: 86-136.

 

 

 

Papers for Replication (suggestions for additional papers welcome)

 

Boone, Peter, 1994, The impact of foreign aid on savings and growth, Centre for Economic Performance Working Paper No. 677, London School of Economics. (suitable for: i, ii, (iv)

Burnside, Craig and David Dollar, 2000, Aid, Policies, and Growth, American Economic Review 90: 847-868. (suitable for: i, ii, (iv))

Channing, Arndt, Sam Jones and Finn Tarp, 2010, Aid, Growth, and Development: Have We Come Full Circle? Journal of Globalization and Development 1, 2: Article 5. (suitable for: i, ii, (iv))

Frey, Bruno and Benno Torgler, 2007, Tax morale and conditional cooperation, Journal of Comparative Economics 35: 136-159. (suitable for: i, ii, iii)

Kilby, Christopher, 2000, Supervision and performance: the case of World Bank projects, Journal of Development Economics 62, 1: 233-59. (suitable for: i, ii, iii)

Knack, Stephen and Aminur Rahman, 2007, Donor Fragmentation and Bureaucratic Quality in Aid Recipients, Journal of Development Economics 83: 176-197. (suitable for: i, ii)

Licht, Amanda A., 2010, Coming into Money: The Impact of Foreign Aid on Leader Survival, Journal of Conflict Resolution 54, 1: 58-87. (suitable for: i, ii, iii)

Michaelowa, Katharina and Anke Weber, 2007, Aid effectiveness in the Education Sector: A Dynamic Panel Analysis, in: S. Lahiri (ed.): Theory and Practice of Foreign Aid, Amsterdam (Elsevier), pp. 357-385. (suitable for: i, ii, iv)

Quinn, Dennis, Martin Schindler and A. Maria Toyoda, 2011, Assessing Measures of Financial Openness and Integration, IMF Economic Review 59, 3: 488-522. (suitable for: i, ii, iv)

Raghuram G. Rajan and Arvind Subramanian, 2008, Aid and Growth: What Does the Cross- Country Evidence Really Show? Review of Economics and Statistics 90, 4: 643-665. (suitable for: i, ii, iv)

Rose, Andrew K., 2004, Do We Really Know That the WTO Increases Trade? American Economic Review 94, 1: 98-114. (suitable for: i, ii, iv)

Rose, Andrew K., 2004, Do WTO Members have More Liberal Trade Policy? Journal of International Economics 63, 2: 209-235. (suitable for: i, ii)

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