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Testing stochastic income convergence in seasonal heterogeneous panels

Listed author(s):
  • Ucar, Nuri
  • Guler, Huseyin

In this paper we introduce a seasonal version of the Solow-Swan growth model and acquire an empirical income convergence equation. We take this equation as a basis to investigate whether income convergence exists in an OECD sample. To do this, we propose the test statistics under various asymptotic properties for some of the seasonal frequencies in the context of nonstationary heterogeneous panels. Critical values and moments of our statistics are generated and their finite sample performances are examined via Monte Carlo simulations.

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File URL: http://www.sciencedirect.com/science/article/pii/S0264-9993(09)00183-7
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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 27 (2010)
Issue (Month): 1 (January)
Pages: 422-431

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Handle: RePEc:eee:ecmode:v:27:y:2010:i:1:p:422-431
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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