On the potential pitfalls in estimating convergence by means of pooled and panel data

Carluccio Bianchi; Mario Menegatti

We show that the use of pooled and panel data in estimating convergence across countries (or other territorial areas) may involve some pitfalls since this type of data cannot properly distinguish between actual convergence and the possibility of decreasing growth rates over time within each country (or geographical unit). We also show how the possible bias in the estimates can be eliminated. -- Convergence ; growth ; panel data ; pooling

Year of publication:	Febr. 2004
Other Persons:	Bianchi, Carluccio (contributor) ; Menegatti, Mario (contributor)
Publisher:	Pavia
Subject:	Wirtschaftliche Konvergenz \| Economic convergence \| Panel \| Panel study

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