Parameter variation in the "log t" convergence test

Johnson, Paul A. (2019): Parameter variation in the "log t" convergence test. Forthcoming in: Applied Economics Letters

Abstract

This paper estimates a local linear version of the model used in Phillips and Sul's (2007, 2009) "log t" convergence test. It documents the economically and statistically significant within-sample variation in the estimated value of the key parameter of that test when applied to data for 18 OECD countries during the 20th century. This variation suggests the substantial waxing and waning of the forces driving convergence, possibly due to low-frequency shocks and changes in the level economic integration.

• Item Type: MPRA Paper
• Language: English
• Keywords: Cross-country convergence, σ-convergence, transition
• Subjects: F - International Economics > F6 - Economic Impacts of Globalization > F63 - Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

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