IDEAS home Printed from
   My bibliography  Save this article

Per Capita Output Convergence : The Dickey-Fuller Test Under the Simultaneous Presence of Stochastic and Deterministic Trends


  • Manuel Gomez-Zaldivar
  • Daniel Ventosa-Santaularia


We reconsider previous studies that analyze the convergence hypothesis in a time series framework. In doing so, we first describe two possible outcomes overlooked in this literature, namely loose catching-up and loose lagging-behind, these cases are in-between divergence and catching-up; then, we provide evidence of the proficiency of the Dickey-Fuller (DF) test to identify the new out-comes by means of asymptotic theory as well as Monte Carlo experiments. Finally, in the empirical section we illustrate that the excessive evidence in favor of divergence may be due to lack of attention to the cases loose catching-up and loose lagging-behind.

Suggested Citation

  • Manuel Gomez-Zaldivar & Daniel Ventosa-Santaularia, 2010. "Per Capita Output Convergence : The Dickey-Fuller Test Under the Simultaneous Presence of Stochastic and Deterministic Trends," Annals of Economics and Statistics, GENES, issue 99-100, pages 429-445.
  • Handle: RePEc:adr:anecst:y:2010:i:99-100:p:429-445

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Ventosa-Santaulària Daniel & Gómez-Zaldívar Manuel, 2011. "Testing for a Deterministic Trend When There is Evidence of Unit Root," Journal of Time Series Econometrics, De Gruyter, vol. 2(2), pages 1-26, January.
    2. Mirjana Gligoric, 2014. "Paths Of Income Convergence Between Country Pairs Within Europe," Economic Annals, Faculty of Economics, University of Belgrade, vol. 59(201), pages 123-156, April – J.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adr:anecst:y:2010:i:99-100:p:429-445. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laurent Linnemer). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.