European Regional Science Association
|
European Regional Science Association
|
|
|
|
|
The abstract for paper number 541:
Maria Abreu, Free University, Amsterdam, Amsterdam, The Netherlands, Raymond Florax, Free University Amsterdam, Amsterdam, The Netherlands, Henri L.F. De Groot, Department of Spatial Economics, Vrije Universiteit, Amsterdam, The Netherlands
A meta-analysis of the speed of convergence in growth regressions
Empirical estimates of the speed of convergence – a measure of how fast per-capita income approaches its steady state – abound, and yet there is little consensus as to the reliability and relevance of the results. Some authors have argued that the estimate of 2%, found for many settings and time-periods, should be taken as a “natural constant”. Other authors have used different specifications and arrived at higher estimates. In addition, various theoretical models have different implications for the speed of convergence. We use a meta-regression analysis to investigate whether changes in the empirical specification, and other regression characteristics, have a systematic impact on estimates of the speed of convergence. We also investigate whether some variables suggested by theory, such as the degree of capital mobility, and the stock of human capital, can account for part of the observed variation.
Unfortunately full paper has not been submitted.