The stochastic convergence amongst Mexican Federal entities is analyzed in panel data framework. The joint consideration of cross-section dependence and multiple structural breaks is required to ensure that the statistical inference is based on statistics with good statistical properties. Once...

In this paper, we examine economic growth in Mexican states over 1940–2015, focusing on the issue of their convergence interpreted as catching-up. A nonlinear econometric model with asymptotically decaying trends of the income gap is applied for the analysis. Particular cases of the baseline...

This work considers the Euclidean distance concept to assess the evolution of regional disparities from aggregate data, such as for example, the per capita output. The vector space concept, as a measure of inequality, presents interesting properties: it tends to zero when the distances are...

This work considers the Euclidean distance concept to assess the evolution of regional disparities from aggregate data, such as for example, the per capita output. The vector space concept, as a measure of inequality, presents interesting properties: it tends to zero when the distances are...

The quarterly empirical relationship between Mexican manufacturing labor productivity and salaries 1993-2015 is examined for causality and whether first order labor market equilibrium is evident. An equilibrium would mean salaries and labor productivity are cointegrated. Wages above productivity...

Economic growth and β-convergence of American states 1963–2015 is analyzed adjusting for significant spatial autocorrelation with system-GMM by considering the four Census macro regions individually. The Census regions converged over the last 50 years with both physical and human capital...

The profitability-growth relationship is examined at the sectoral level of the Mexican manufacturing industry. For the theories that explain this connection, business growth drives profitability (classical), profitability explains business growth (evolutionary), or a negative link is a rule...

The power of standard panel cointegration statistics may be affected by misspecification errors if proper account is not taken of the presence of structural breaks in the data. We propose modifications to allow for one structural break when testing the null hypothesis of no cointegration that...