2018/09/24 by Philip Kostov, Julie Le Gallo
Economics, Econometrics and Finance · #Economic Growth and Productivity #Economic Policies and Impacts #Fiscal Policy and Economic Growth
paper · doi:10.1111/sjpe.12196
openalex publication_date 2018/09/24 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/29
Abstract The estimates for the human capital effect in cross‐country growth regressions have been subject of considerable controversy. We argue that human capital is intrinsically a multidimensional construct. We construct human capital measure by combining available alternative proxies via confirmatory factor analysis. Using panel data endogenous quantile regression methods we analyse the whole conditional growth distribution by simultaneously accounting for the potential endogeneity of human capital and country‐specific effects. Our results conform to theoretical expectations and we are able to demonstrate the beneficial effect of both the measurement approach and the endogeneity correction on the derivation of theoretically consistent estimates.