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Technical appendix

Published online by Cambridge University Press:  22 September 2009

Lykke E. Andersen
Affiliation:
Universidad Católica Boliviana
Clive W. J. Granger
Affiliation:
University of California, San Diego
Eustaquio J. Reis
Affiliation:
Institute for Applied Economic Research, Rio de Janeiro
Diana Weinhold
Affiliation:
London School of Economics and Political Science
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Summary

In the following sections we detail the econometric methodology employed in this book. While most of the econometrics are fairly standard procedures, several of the techniques have been developed by the authors, in some cases specifically for the purpose of analyzing the kind of data we have in the DESMAT data set. These include the panel model evaluation technique developed by Granger and Huang (1997), the random reduction estimation strategy developed by Weinhold (2001) and the ideas of “thick” modeling presented in Granger (2000).We provide a fairly comprehensive description here but for a complete technical discussion we refer the interested readers to the academic working papers cited above.

The technical appendix proceeds as follows:

  • Section A1 addresses the overall modeling philosophy and discusses some of the econometric work that preceded the models presented in this book.

  • Section A2 describes the technical detail behind the Granger and Huang (1997) model evaluation technique frequently utilized in writing this book.

  • Section A3 outlines in detail the random reduction strategy employed in the estimation of the main models and reviews some of Granger's ideas of “thick” modeling.

  • Section A4 discusses some technical details of how the models were used to produce the roads and Avança Brasil simulations.

  • Section A5 includes a table of variables and the full model results for both the 1985 and 1995 models.

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Publisher: Cambridge University Press
Print publication year: 2002

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