Christopoulos, Dimitris K.; León-Ledesma, Miguel A. - In: Economics Letters 101 (2008) 3, pp. 297-299
We present time-series evidence on output convergence for 14 OECD countries allowing for time-varying determinants of transitional dynamics. We develop a simple theoretical model and test for non-stationarity in relative outputs using stationary covariates finding strong support for convergence.