Greg Mankiw explains. And, as a bonus, answers the question, "...what are economic policy advisers paid for?": Growth Regressions and Policy Advising. (Feb 18).
- See the comment to Mankiw's post by Ron Cronovich
- Also, follow the link suggested in the comment by Fundamentalist to: The Quest Continues by Lant Pritchett (March 2006). Pritchett looks at empirical growth theory in this popular article, and discusses, "he tension between the logics of academic interest and the needs of the policy practitioner..."