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Acemoglu, Johnson, Robinson (2005) (view source)
Revision as of 14:50, 15 May 2012
, 14:50, 15 May 2012→The Role of Initial Institutions
:<math>u_{jt} = d_{t} + \delta_{j} + \sum\limits_{t>=1600} \alpha_{t} \cdot WE_{j} \cdot d_{t} + \beta \cdot ln AT_{t} \cdot PAT_{j} + \sum\limits_{t>=1500} \gamma_{t} \cdot I_{j,1415} \cdot d_{t} + \eta \cdot ln AT_{t} \cdot PAT_{j} \cdot I_{j,1415} + \epsilon_{jt}</math>
*<math>_I_{j,1415}</math> is the country j's initial institutions calculated as the average of constraint on the executive in 1400 and 1500. *The <math>\gamma_{t} \cdot I_{j,1415} \cdot d_{t}</math> term allows for any differential economic trends related to differences in initial institutions that would apply even without access to Atlantic trading. *<math>ln AT_{t} \cdot PAT_{j}</math> term measures the effect of Atlantic trade for a given level of institutions. *<math>ln AT_{t} \cdot PAT_{j} \cdot I_{j,1415}</math> tests the hypothesis of interest A significant <math>/eta</math> implies that there were differential paths taken by countries with different initial institutions, but divergent relates significantly to whether they took advantage to Atlantic trade.
=== What do the authors tests achieve?===
