On the potential pitfalls in estimating β-convergence by means of pooled and panel data
We show that the use of pooled and panel data in estimating β-convergence across countries (or other territorial areas) may involve some pitfalls, since these techniques cannot properly distinguish between actual convergence and the possibility of decreasing growth rates over time within each country (or territorial unit). We also show how the possible bias in the estimates can be eliminated.
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Volume (Year): 14 (2007)
Issue (Month): 13 ()
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