This paper deals with heterogeneity and non linearities 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

BERTARELLI, Silvia
2013

Abstract

This paper deals with heterogeneity and non linearities 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).
Bernardini Papalia, R.; Bertarelli, Silvia
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11392/1578869
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