Testing for convergence from the micro level
AbstractEmpirical convergence analysis is typically envisaged from a macro aggregate perspective. However, researchers have recently highlighted how investigating convergence at the disaggregate level may yield interesting insights into the convergence debate. In this paper, we suggest an approach that allows exploiting large micro panels to test for convergence. Compared to the traditional convergence analysis, this approach allows obtaining beta- and sigma-like convergence parameters for both the micro and the macro level of interest. We provide a practical example that analyses productivity convergence across firms and provinces using a large sample of Italian firms.
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Bibliographic InfoPaper provided by D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy in its series Discussion Papers with number 9_2011.
Date of creation: 26 Jul 2011
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Convergence; Multilevel Models; Italian Firms.;
Other versions of this item:
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- D20 - Microeconomics - - Production and Organizations - - - General
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-09 (All new papers)
- NEP-EFF-2011-10-09 (Efficiency & Productivity)
- NEP-GEO-2011-10-09 (Economic Geography)
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