Fconomlc Growth TbdolEd

indiortor. *hich ploled io b. skristicillv
th. Es€sion speifi@lion
h*:*tt e&*sr..ItB
9.2.3 E.dD.doD ltethodoloE/
dref@ nor hed includc!
Th. |!s@her hd Ned GMM pd.due in lh. mtFh TfieE ir a d€dh of lihruE using
OMM merhodolog in line $rics, crGlsctional 6 wlt 6 !€El bt$d asimarions lt 's
baed on rhe 6e$od or somenrs (Pe@n. 1891, 1895) and dlindrion techniqud using
in$tumcnts (ReieMl l94l; streo 1958; llmsn 1982). cMM eslimltion h bas'd on tho
el&tid of paldel€N 6 $list $e $orlictl Elotiofthip vnh nininm devialions tl is
morc oblsr edinalidn s mmpdrd 10 olnd .srimdid nElhods like mdinun lik'lihood a
it is lmlfet d ro rhe @toE of di$6.e disniburim To ,pplv tlis dlodolos/, r|i.
foll@ing .qdio is dimr€d bY GMM:
ttn - fo+ f,L + f8,+ et
Tt. inndmdhl @itblcs lor rn€ equrio e lll .xpld.torv vdabl6 l. thb equarion
sl or inslitutional v*iables od ). is et of ot\er ind.Pen&nl variable
B
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