reforms, reallocation, and growth
249
Table 7.2: Models of Fundamentals
Dependent variable
Regressor First lag of TFP
TFP
Reform index GDP
Demand shock
First lag of Dshock Reform index GDP
First lag of white collar White-collar Reform index labor hours GDP
Blue-collar labor hours
First lag of blue collar Reform index GDP
Materials
First lag of materials Reform index GDP
Energy
First lag of energy Reform index GDP
Model for aggregate component (1)
Model for idiosyncratic component (2)
0.931 (0.021) –0.160 (0.081) –0.0002 (0.0002) 1.003 (0.002) 0.024 (0.060) 1.4E-6 (0.0001) 0.790 (0.030) –67.240 (109.154) –0.038 (0.250) 0.873 (0.023) 146.873 (97.746) –0.070 (0.223) 0.957 (0.011) 0.490 (0.164) –0.0003 (0.0004) 0.990 (0.008) –0.008 (0.137) 5.8E-5 (0.0003)
0.916 (0.002)
Model for standard deviation of idiosyncratic error (3)
0.242 (0.061) 3.6E-6 (0.0001) 0.980 (0.001) 0.157 (0.047) –3.5E-5 (0.0001) 0.327 (0.003) 4.8E-13 (1.5E-12) 2.8E-15 (3.4E-15) 0.035 (0.004) 1.2E-12 (2.3E-12) 3.6E-15 (5.2E-15) 0.974 (0.001) –0.372 (0.079) 0.0005 (0.0002) 0.945 (0.001) 0.317 (0.149) 0.0001 (0.0003)
Source: Author’s calculations. Note: This table reports results of estimating models for the aggregate and idiosyncratic components of each fundamental, using data for Colombia (1985–98). Standard errors are in parentheses,