This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Conditional convergence and the dynamics of the capital-output ratio

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Kieran McQuinn
Karl Whelan

Additional information is available for the following registered author(s):

Abstract

Output per worker can be expressed as a function of technological efficiency and of the capital-output ratio. Because technology is exogenous in the Solow model, all of the endogenous convergence dynamics take place through the adjustment of the capital-output ratio. This paper uses the empirical behavior of the capital-output ratio to estimate the speed of conditional convergence of economies towards their steady-state paths. We find that the conditional convergence speed is about seven percent per year. This is somewhat faster than predicted by the Solow model and is significantly higher than reported in most previous studies based on output per worker regressions. We show that, once there are stochastic shocks to technology, standard panel econometric techniques produce downward-biased estimates of convergence speeds, while our approach does not. Copyright Springer Science+Business Media, LLC 2007

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://hdl.handle.net/10.1007/s10887-007-9013-3
File Format: text/html
File Function:
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by Springer in its journal Journal of Economic Growth.

Volume (Year): 12 (2007)
Issue (Month): 2 (June)
Pages: 159-184
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:jecgro:v:12:y:2007:i:2:p:159-184

Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=102931

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords: Convergence; Solow Model; Panel Data; O41; O30; C23;

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. McGuinness, Anne, 2007. "Institutions and Total Factor Productivity Convergence," Research Technical Papers 9/RT/07, Central Bank & Financial Services Authority of Ireland (CBFSAI). [Downloadable!]
  2. Michael Paffermayr, 2009. "Spatial Convergence of Regions Revisited: A Spatial Maximum Likelihood Systems Approach," Working Papers 2009-07, Faculty of Economics and Statistics, University of Innsbruck. [Downloadable!]
Statistics
Access and download statistics

Did you know? All full texts are decentralized with the publishers, none reside on this server, thus making it possible to offer this service for free to all parties.

This page was last updated on 2009-11-25.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.