Stengos, Thanasis; Yazgan, M. Ege - Rimini Centre for Economic Analysis (RCEA) - 2011
In this paper, we examine the convergence hypothesis using a long memory framework that allows for structural breaks … than the simple I(1)=I(0) alternative, a simple absolute divergence and rapid convergence dichotomy produced by the latter … gaps. The speed of convergence captured by the estimated long memory parameter d, is explained by differences in physical …