Convergence and Growth: Revisited
The present paper builds on the work of Caselli, Esquivel and Lefort (1996) where growth equations are estimated using the Generalized Moment Method. It is shown here that the results of those authors are biased due to a methodological problem. The convergence rate of around 12% that they report is overestimated and the real rate is in fact around 3 or 4 %; in line with earlier studies. The results found are robust to various new dynamic panel estimation techniques, although the significant differences are indicated when making inferences if variance corrections are not considered for estimators that use the Generalized Moment Method.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kiviet, Jan F., 1995.
"On bias, inconsistency, and efficiency of various estimators in dynamic panel data models,"
Journal of Econometrics,
Elsevier, vol. 68(1), pages 53-78, July.
- Tom Doan, . "LSDVC: RATS procedure to estimate a dynamic FE model with correction for bias," Statistical Software Components RTS00111, Boston College Department of Economics.
- Stephen Bond & Anke Hoeffler & Jonathan Temple, 2001.
"GMM Estimation of Empirical Growth Models,"
2001-W21, Economics Group, Nuffield College, University of Oxford.
- Frank Windmeijer, 2000. "A finite sample correction for the variance of linear two-step GMM estimators," IFS Working Papers W00/19, Institute for Fiscal Studies.
- Richard Blundell & Steve Bond, 1999.
"GMM estimation with persistent panel data: an application to production functions,"
IFS Working Papers
W99/04, Institute for Fiscal Studies.
- Richard Blundell & Stephen Bond, 2000. "GMM Estimation with persistent panel data: an application to production functions," Econometric Reviews, Taylor & Francis Journals, vol. 19(3), pages 321-340.
When requesting a correction, please mention this item's handle: RePEc:udc:wpaper:wp224. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rafael Carranza)
If references are entirely missing, you can add them using this form.