International output convergence: evidence from an autocorrelation function approach

✍ Scribed by Giovanni Caggiano; Leone Leonida

• Book ID: 102871280
• Publisher: John Wiley and Sons
• Year: 2008
• Tongue: English
• Weight: 559 KB
• Volume: 24
• Category: Article
• ISSN: 0883-7252
• DOI: 10.1002/jae.1038

✦ Synopsis

Abstract

This paper uses an autocorrelation function (ACF) approach to develop a new testing procedure for international output convergence. We define convergence in terms of sample ACFs of detrended output per capita, and construct an inference set‐up based on resampling and subsampling techniques for dependent data. Using per capita GDP for 15 OECD countries observed over a century, we find that the hypothesis of conditional convergence is unsupported; that, the USA apart, the linearized neoclassical growth model fails to replicate the transitional dynamics of OECD economies; and that these economies do not behave like a club. Copyright © 2008 John Wiley & Sons, Ltd.