IDEAS home Printed from https://ideas.repec.org/a/adr/anecst/y2010i99-100p429-445.html
   My bibliography  Save this article

Per Capita Output Convergence : The Dickey-Fuller Test Under the Simultaneous Presence of Stochastic and Deterministic Trends

Author

Listed:
  • Manuel Gomez-Zaldivar
  • Daniel Ventosa-Santaularia

Abstract

We reconsider previous studies that analyze the convergence hypothesis in a time series framework. In doing so, we first describe two possible outcomes overlooked in this literature, namely loose catching-up and loose lagging-behind, these cases are in-between divergence and catching-up; then, we provide evidence of the proficiency of the Dickey-Fuller (DF) test to identify the new out-comes by means of asymptotic theory as well as Monte Carlo experiments. Finally, in the empirical section we illustrate that the excessive evidence in favor of divergence may be due to lack of attention to the cases loose catching-up and loose lagging-behind.

Suggested Citation

  • Manuel Gomez-Zaldivar & Daniel Ventosa-Santaularia, 2010. "Per Capita Output Convergence : The Dickey-Fuller Test Under the Simultaneous Presence of Stochastic and Deterministic Trends," Annals of Economics and Statistics, GENES, issue 99-100, pages 429-445.
    • Handle: RePEc:adr:anecst:y:2010:i:99-100:p:429-445
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/41219173
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ventosa-Santaulària Daniel & Gómez-Zaldívar Manuel, 2011. "Testing for a Deterministic Trend When There is Evidence of Unit Root," Journal of Time Series Econometrics, De Gruyter, vol. 2(2), pages 1-26, January.
    2. Gabriel Rodríguez & Juan Palomino, 2019. "Peru's Regional Growth and Convergence in 1979-2017: An Empirical Spatial Panel Data Analysis," Documentos de Trabajo / Working Papers 2019-478, Departamento de Economía - Pontificia Universidad Católica del Perú.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adr:anecst:y:2010:i:99-100:p:429-445. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Secretariat General or Laurent Linnemer (email available below). General contact details of provider: https://edirc.repec.org/data/ensaefr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.