A Primer on Nonparametric Methods and Their Application to Research in Human Capital and Economic Growth
A Primer on Nonparametric Methods and Their Application to Research in Human Capital and Economic Growth
This chapter outlines basic nonparametric techniques, looking at their specific applications in testing the human capital–growth relationship. The second section provides an overview of nonparametric econometric methods. The third section discusses a commonly used semiparametric model, the semiparametric partially linear (PLR) model. The fourth section describes the modeling of economic growth using the PLR model. It notes that a semiparametric PLR specification of the cross-country growth regression function is a particularly useful way of studying the contribution of human capital to economic growth from a nonlinear perspective.
Keywords: human capital–growth relationship, nonparametric techniques, PLR model, economic growth
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