Has the Lucas Paradox been fully explained?

Celine Azemar; Rodolphe Desbordes

doi:10.1016/j.econlet.2013.07.025

Has the Lucas Paradox been fully explained?

Celine Azemar, Rodolphe Desbordes

Research output: Contribution to journal › Article › peer-review

9 Citations (Scopus)

Abstract

Alfaro, Kalemli-Ozcan, and Volosovych (2008) argue that accounting for differences in institutional quality makes the Lucas Paradox disappear. We show that their key finding is driven by the presence of outliers. Once we control for them, we find that the Lucas Paradox remains.

Original language	English
Pages (from-to)	183-187
Number of pages	5
Journal	Economic Letters
Volume	121
Issue number	2
DOIs	https://doi.org/10.1016/j.econlet.2013.07.025
Publication status	Published - 2013

Keywords

capital flows
institutional quality
Lucas Paradox
outliers

Access to Document

10.1016/j.econlet.2013.07.025

http://www.journals.elsevier.com/economics-letters

Cite this

@article{0d623e6de8394b1ba63ee8e00d444b19,

title = "Has the Lucas Paradox been fully explained?",

abstract = "Alfaro, Kalemli-Ozcan, and Volosovych (2008) argue that accounting for differences in institutional quality makes the Lucas Paradox disappear. We show that their key finding is driven by the presence of outliers. Once we control for them, we find that the Lucas Paradox remains.",

keywords = "capital flows, institutional quality, Lucas Paradox, outliers",

author = "Celine Azemar and Rodolphe Desbordes",

year = "2013",

doi = "10.1016/j.econlet.2013.07.025",

language = "English",

volume = "121",

pages = "183--187",

journal = "Economic Letters",