Review of International Economics · 2001 · 54 citations · 0 references
Social SciencesEconomicsEconometricsEconomic DevelopmentMacroeconomicsEconomic GrowthEuropean EconomicsIncome DistributionPanel Data AnalysisPanel Data MethodsTime Series EconometricsPanel Data EstimationPanel HeteroskedasticityPanel Time Series AnalysisPanel Time Series ModelsPanel Unit Root TestsPer Capita IncomeUnit Root TestingUnit Roots
This paper uses three panel unit‐root tests and finds that real per capita GDP for OECD countries and a European subsample converge stochastically for the period 1948–87 but not for the entire sample of 1900–87. For the postwar period, the differential in income gaps or speed of adjustment is eliminated at an annual rate of 4–8% for OECD economies, and 6–9% for European economies.