It's still 2%: evidence on convergence from 116 years of the US States panel data
A new debate over the speed of convergence in per capita income across economies is going on. Cross sectional estimates support the idea of slow convergence of about two percent per year. Panel data estimates support the idea of fast convergence of five, ten or even twenty percent per year. This paper shows that, if you ``do it right'', even the panel data estimation method yields the result of slow convergence of about two percent per year.
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Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number
236.
| Length: | |
| Date of creation: | Sep 1997 |
| Handle: | RePEc:upf:upfgen:236 |
| Contact details of provider: | Web page: http://www.econ.upf.edu/
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References listed on IDEAS
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