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TAR Panel Unit Root Tests and Real Convergence

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  • Arielle Beyaert
  • Maximo Camacho

Abstract

The authors propose a new panel data methodology to test real convergence in a non‐linear framework. This extends the existing methods by combining three approaches: the threshold model, the panel data unit root tests, and the computation of critical values by bootstrap simulation. The authors apply their methodology to the per capita outputs of a total of 15 European countries, including some of the East European countries that have recently joined the EU.

Suggested Citation

  • Arielle Beyaert & Maximo Camacho, 2008. "TAR Panel Unit Root Tests and Real Convergence," Review of Development Economics, Wiley Blackwell, vol. 12(3), pages 668-681, August.
    • Handle: RePEc:bla:rdevec:v:12:y:2008:i:3:p:668-681
    DOI: 10.1111/j.1467-9361.2008.00479.x
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    References listed on IDEAS

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