Abstract This paper deals with heterogeneity and nonlinearities in the growth process by developing a two-stage strategy to identify and estimate a club convergence model with threshold externalities. Because of identification and collinearity problems, we develop an entropy-based estimation procedure which simultaneously takes account of ill-posed and ill-conditioned inference problems. First, clubs are identified by introducing a mapping structure in a conditional convergence model. Finally, we estimate a multiple club convergence model, where clubs correspond to subsets of total observations. Our procedure is applied to assess the existence of club convergence for a large sample of countries (1965–2008).
Non linearities in economic growth and club convergence / Bernardini Papalia R.; S. Bertarelli. - In: EMPIRICAL ECONOMICS. - ISSN 0377-7332. - STAMPA. - 44, 3:(2013), pp. 1171-1202. [10.1007/s00181-012-0568-2]
Non linearities in economic growth and club convergence
BERNARDINI PAPALIA, ROSA;BERTARELLI, SILVIA
2013
Abstract
Abstract This paper deals with heterogeneity and nonlinearities in the growth process by developing a two-stage strategy to identify and estimate a club convergence model with threshold externalities. Because of identification and collinearity problems, we develop an entropy-based estimation procedure which simultaneously takes account of ill-posed and ill-conditioned inference problems. First, clubs are identified by introducing a mapping structure in a conditional convergence model. Finally, we estimate a multiple club convergence model, where clubs correspond to subsets of total observations. Our procedure is applied to assess the existence of club convergence for a large sample of countries (1965–2008).I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.