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Convergence: Theory, Econometrics, and Empirics

In: Development Patterns of Material Productivity

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  • Larissa Talmon-Gros

    (University of Hohenheim)

Abstract

This chapter presents the theoretical background, the econometrics, and some empirical evidence with regard to convergence. Section 4.1 presents the basic Solow–Swan model, the starting point for analyses of convergence as well as the convergence properties in Schumpeterian models of endogenous growth. Section 4.2 discusses the econometric methods for examining convergence applied in this analysis. Those include growth regressions, (dynamic) panel approaches in terms of fixed effects models as well as panel unit root tests (Im, Pesaran, and Shin as well as Maddala and Wu/Choi). This chapter concludes with a review of empirics of convergence of different economic variables like for instance per capita income, labor productivity, energy productivity, or CO2 emissions.

Suggested Citation

  • Larissa Talmon-Gros, 2014. "Convergence: Theory, Econometrics, and Empirics," Contributions to Economics, in: Development Patterns of Material Productivity, edition 127, chapter 0, pages 29-79, Springer.
    • Handle: RePEc:spr:conchp:978-3-319-02538-4_4
    DOI: 10.1007/978-3-319-02538-4_4
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