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Government Partisanship, Labor Organization and Macroeconomic Performance: A Corrigendum

Beck, Nathaniel and Katz, Jonathan N. and Alvarez, R. Michael and Garrett, Geoffrey and Lange, Peter (1993) Government Partisanship, Labor Organization and Macroeconomic Performance: A Corrigendum. Social Science Working Paper, 848. California Institute of Technology , Pasadena, CA. (Unpublished)

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Alvarez, Garrett and Lange (1991) used cross-national panel data on the OECD nations to show that countries with left governments and encompassing labor movements enjoyed superior economic performance. Here we show that the standard errors reported in that article are incorrect. Re-estimation of the model using ordinary least squares and robust standard errors shows that the major finding of Alvarez, Garrett and Lange, regarding the political and institutional causes of economic growth, is upheld but the findings for unemployment and inflation are open to question. We show that the model used by Alvarez, Garrett and Lange, feasible generalized least squares, cannot produce standard errors when the number of countries analyzed exceeds the length of the time period under analysis. Also, we argue that ordinary least squares with robust standard errors is superior to feasible generalized least squares for typical cross-national panel studies.

Item Type:Report or Paper (Working Paper)
Related URLs:
URLURL TypeDescription ItemPublished Version
Katz, Jonathan N.0000-0002-5287-3503
Alvarez, R. Michael0000-0002-8113-4451
Additional Information:We would like to thank Gary King (for his persistence) and Brian Sala. Katz's work was supported by a National Science Foundation Graduate Fellowship. Published as Beck, Nathaniel, Jonathan N. Katz, R. Michael Alvarez, Geoffrey Garrett, and Peter Lange. "Government partisanship, labor organization, and macroeconomic performance: a corrigendum." American Political Science Review 87, no. 4 (1993): 945-948.
Group:Social Science Working Papers
Funding AgencyGrant Number
NSF Graduate Research FellowshipUNSPECIFIED
Series Name:Social Science Working Paper
Issue or Number:848
Record Number:CaltechAUTHORS:20170824-162753007
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Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:80779
Deposited By: Jacquelyn Bussone
Deposited On:28 Aug 2017 23:47
Last Modified:09 Mar 2020 13:18

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