We show that the use of pooled and panel data in estimating convergence across countries (or other territorial areas) may involve some pitfalls since this type of data cannot properly distinguish between actual convergence and the possibility of decreasing growth rates over time within each country (or geographical unit). We also show how the possible bias in the estimates can be eliminated.
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Publisher Info
Paper provided by Department of Economics, Parma University (Italy) in its series Economics Department Working Papers with number
2004-EP02.
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