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Parameter variation in the 'log t' convergence test

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  • Paul A. Johnson

Abstract

This article estimates a local linear version of the model used in the ‘log t’ convergence test. It documents the economically and statistically significant within-sample variation in the estimated value of the key parameter of that test when applied to data for 18 OECD countries during the twentieth century. This variation suggests the substantial waxing and waning of the forces driving convergence, possibly due to low-frequency shocks and changes in the level of economic integration.

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  • Paul A. Johnson, 2020. "Parameter variation in the 'log t' convergence test," Applied Economics Letters, Taylor & Francis Journals, vol. 27(9), pages 736-739, May.
    • Handle: RePEc:taf:apeclt:v:27:y:2020:i:9:p:736-739
    DOI: 10.1080/13504851.2019.1644436
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    2. Paul Johnson & Chris Papageorgiou, 2020. "What Remains of Cross-Country Convergence?," Journal of Economic Literature, American Economic Association, vol. 58(1), pages 129-175, March.
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    Cited by:

    1. Harry Aginta, 2021. "Spatial dynamics of consumer price in Indonesia: convergence clubs and conditioning factors," Asia-Pacific Journal of Regional Science, Springer, vol. 5(2), pages 427-451, June.

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    More about this item

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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