Search results for "Control variables"

Variable selection in the analysis of energy consumption-growth nexus

2015

There is abundant empirical literature that focuses on whether energy consumption is a critical driver of economic growth. The evolution of this literature has largely consisted of attempts to solve the problems and answer the criticisms arising from earlier studies. One of the most common criticisms is that previous work concentrates on the bivariate relationship, energy consumption–economic growth. Many authors try to overcome this critique using control variables. However, the choice of these variables has been ad hoc, made according to the subjective economic rationale of the authors. Our contribution to this literature is to apply a robust probabilistic model to select the explanatory …