We show that the use of pooled and panel data in estimating beta-convergence across countries (or other territorial areas) may involve some pitfalls, since these techniques cannot properly distinguish between actual convergence and the possibility of decreasing growth rates over time within each country (or territorial unit). We also show how the possible bias in the estimates can be eliminated.
On the potential pitfalls inestimating BETA-convergence bymeans of pooled and panel data
BIANCHI, CARLUCCIO;MENEGATTI, MARIO
2007-01-01
Abstract
We show that the use of pooled and panel data in estimating beta-convergence across countries (or other territorial areas) may involve some pitfalls, since these techniques cannot properly distinguish between actual convergence and the possibility of decreasing growth rates over time within each country (or territorial unit). We also show how the possible bias in the estimates can be eliminated.File in questo prodotto:
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