Revistas Académicas WoS
On the Power of Absolute Convergence Tests
This paper analyzes whether or not the econometric methods usually applied to test for absolute convergence have provided this hypothesis a "fair" chance. I show that traditional (absolute and conditional) convergence tests are not consistent with even the simplest model that displays convergence. Furthermore, claims of divergence on the grounds of bimodalities in the distribution of GDP per capita can be made consistent with models in which neither divergence nor twin peaks are present in the long run.
STUDIES IN NONLINEAR DYNAMICS AND ECONOMETRICS, Vol. 10, No. 2, 2006
Autor(es): Chumacero Rómulo