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A note on the use of quantile regression in beta convergence analysis

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  • Marcio Laurini

    ()
    (Ibmec Sao Paulo and IMECC-Unicamp)

Abstract

We discuss how to interpret conflicting results obtained by the use of quantile regression methods in growth regression tests of β-convergence hypothesis and the results obtained by nonparametric methods. We show that the assumption of linearity may cause the non-rejection of the β-convergence hypothesis by quantile regression. We also show that using a nonparametric form of quantile regression, we can reject the hypothesis of β-convergence and confirm the results of divergence and formation of convergence clubs. We illustrate the discussion by using the conflicting results on convergence found in the dataset of per-capita income of Brazilian municipalities between 1970 and 1996.

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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 3 (2007)
Issue (Month): 52 ()
Pages: 1-8

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Handle: RePEc:ebl:ecbull:eb-07c50003

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Cited by:
  1. Marta Simões & João Sousa Andrade & Adelaide Duarte, 2012. "Convergence and Growth: Portugal in the EU 1986-2010," GEMF Working Papers 2012-13, GEMF - Faculdade de Economia, Universidade de Coimbra.
  2. Túlio Cravo & Guilherme Resende, 2013. "Economic growth in Brazil: a spatial filtering approach," The Annals of Regional Science, Springer, Springer, vol. 50(2), pages 555-575, April.
  3. Takahashi, Kazushi, 2013. "Pro-poor growth or poverty trap? : estimating intergenerational income mobility in rural Philippines," IDE Discussion Papers, Institute of Developing Economies, Japan External Trade Organization(JETRO) 382, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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