Rejoinder to Herzer, Nowak-Lehmann, Dreher, Klasen, and Martinez-Zarzoso (2014)

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openAccess

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Journal Title

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Volume Title

A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä

Date

2015

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Mcode

Degree programme

Language

en

Pages

397-399

Series

WORLD DEVELOPMENT, Volume 70

Abstract

The Herzer et al. (2014) comment on our article (Lof et al., 2014) addresses two issues. First, they propose various ways to circumvent our concerns regarding data handling in a paper by Nowak-Lehmann et al. (2012). We point out that under these new approaches the link between the empirical model and theoretical specification no longer holds. Moreover, the issue of reverse causality is not tackled by Herzer et al. (2014). Second, Herzer et al. (2014) criticize our empirical strategy and Panel VAR results. We show their remarks are based on misunderstandings and were, for the most part, already addressed in Lof et al. (2014).

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Keywords

foreign aid, growth, time-series, VAR models

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Citation

Lof, M, Mekasha, T J & Tarp, F 2015, ' Rejoinder to Herzer, Nowak-Lehmann, Dreher, Klasen, and Martinez-Zarzoso (2014) ', World Development, vol. 70, pp. 397-399 . https://doi.org/10.1016/j.worlddev.2014.08.008