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Markov Chains, Eigenvalues and the Stabilityof Economic Growth Processes

Author

Listed:
  • Fernando Delbianco

    (Universidad Nacional del Sur/CONICET)

  • Andrés Fioriti

    (Universidad Nacional del Sur/CONICET)

  • Fernando Tohmé

    (Universidad Nacional del Sur/CONICET)

Abstract

In this paper we explore the data on economic growth processes in the lastdecades, assuming they follow Markov processes. We look for the regimes guidingthem and define Markov chains according to which the time series switch from oneregime to another. Our findings show that most of the growth processes are quitestable in the sense of remaining most of the time in a dominant regime. Furthermore,we do not find support for the hypothesis of convergence of economies. The mainconclusion of our analysis is that growth processes can be better understood interms of their idiosyncratic dominant regimes.

Suggested Citation

  • Fernando Delbianco & Andrés Fioriti & Fernando Tohmé, 2021. "Markov Chains, Eigenvalues and the Stabilityof Economic Growth Processes," Working Papers 88, Red Nacional de Investigadores en Economía (RedNIE).
    • Handle: RePEc:aoz:wpaper:88
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    References listed on IDEAS

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