Eastern Data and Western Attitudes

Most studies of the economies of Eastern Europe by Western analysts depend substantially on Western data and Western attitudes. Usually this dependence is implicit and concealed. An explicit and transparent treatment may yield better results, both for the individual analyst and for the profession overall. This article proposes and illustrates an econometric method for pooling Western and Eastern data. The pooled estimates depend on doubt about the Western attitudes, on the degree of experimental contamination in Western and Eastern data and on the similarity of Western and Eastern structures. The method is illustrated by a study of the determinants of the growth rates of developed and developing countries.