On the conditional effects of IMF loan program participation on output growth
- Panel Sample Selection ModelsThe empirical evidence currently available in the literature regarding the effects of a country's IMF program participation on its output growth is rather inconclusive. In this paper we propose and estimate a panel data sample selection model featuring state dependence. As in this model the output growth effects of program participation can be conditional on the realization of a state variable (conditional pooling), our framework may reconcile previous empirical evidence based on models without state-dependent effects. We find that the effects of IMF program participation on output growth vary systematically with an index reflecting a country's institutional record, and that output growth effects of program participation are significantly positive only if the program participation is coupled with sufficient improvement of the institutional record.
Author: | Michael Binder, Marcel Bluhm |
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URN: | urn:nbn:de:hebis:30:3-343188 |
URL: | http://www.imfs-frankfurt.de/fileadmin/user_upload/IMFS_WP/WP_78.pdf |
Parent Title (English): | Working paper series / Institute for Monetary and Financial Stability ; 78 |
Series (Serial Number): | Working paper series / Institute for Monetary and Financial Stability (78) |
Publisher: | Johann Wolfgang Goethe-Univ., Inst. for Monetary and Financial Stability |
Place of publication: | Frankfurt am Main |
Document Type: | Working Paper |
Language: | English |
Year of Completion: | 2014 |
Year of first Publication: | 2014 |
Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Release Date: | 2014/07/02 |
Tag: | Conditional Pooling; IMF Program Participation; Output Growth; Panel Sample Selection Models |
Page Number: | 44 |
HeBIS-PPN: | 344383016 |
Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
JEL-Classification: | C Mathematical and Quantitative Methods / C3 Multiple or Simultaneous Equation Models / C33 Models with Panel Data |
Sammlungen: | Universitätspublikationen |
Licence (German): | Deutsches Urheberrecht |