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Extreme Bounds Analysis

Posted: Mon May 24, 2010 9:13 am
by joelw
Hello,

I want to try and use the Extreme Bounds Analysis equation used in the following article at page 12 (Chapter 5: Estimation Approach and Data Description):

http://www.cesifo-group.de/pls/guestci/ ... _wp906.pdf


The equation has M and Z vectors which contain data such as GDP growth, Secondary school attainment , etc.
My question is - if I want to try and run the regression with different data, is there anyway I can know how to build the M or Z vectors?
I have the data but how do I build the M or Z vectors from data whose scale is different from each other (GDP growth + Attainment %).
What are the coefficients and scale of each data in these vectors?

Thank
Joel