Estimating growth equations for previously centrally planned economies: Dealing with dubious data and disparate information

Rigorous analysis of the previously centrally planned economies (PCPEs) is one of the most important but at the same time difficult tasks currently facing macroeconomists. We develop applied techniques appropriate to situations typically faced by Western analysts of PCPEs, as well as by development economists more generally, involving data which is low in both quality and quantity and doubt concerning the direct applicability of Western theories and ideas, experience and data. We apply these techniques to estimate growth equations for a group of PCPEs and for groups of developed and developing economies.