A note on the use of quantile regression in beta convergence analysis
AbstractWe discuss how to interpret conflicting results obtained by the use of quantile regression methods in growth regression tests of Î²-convergence hypothesis and the results obtained by nonparametric methods. We show that the assumption of linearity may cause the non-rejection of the Î²-convergence hypothesis by quantile regression. We also show that using a nonparametric form of quantile regression, we can reject the hypothesis of Î²-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 InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 3 (2007)
Issue (Month): 52 ()
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Other versions of this item:
- Laurini, Márcio P., 2007. "A note on the use of quantile regression in beta convergence analysis," Insper Working Papers wpe_95, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
- C5 - Mathematical and Quantitative Methods - - Econometric Modeling
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