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A note on the use of quantile regression in beta convergence analysis

  • Marcio Laurini

    ()

    (Ibmec Sao Paulo and IMECC-Unicamp)

We discuss how to interpret conflicting results obtained by the use of quantile regression methods in growth regression tests of β-convergence hypothesis and the results obtained by nonparametric methods. We show that the assumption of linearity may cause the non-rejection of the β-convergence hypothesis by quantile regression. We also show that using a nonparametric form of quantile regression, we can reject the hypothesis of β-convergence and confirm the results of divergence and formation of convergence clubs. We illustrate the discussion by using the conflicting results on convergence found in the dataset of per-capita income of Brazilian municipalities between 1970 and 1996.

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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 3 (2007)
Issue (Month): 52 ()
Pages: 1-8

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Handle: RePEc:ebl:ecbull:eb-07c50003
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  14. Quah, Danny T, 1997. " Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," Journal of Economic Growth, Springer, vol. 2(1), pages 27-59, March.
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