Robust Tests for Convergence Clubs

Luisa Corrado, Thanasis Stengos, Melvyn Weeks () and Ege Yazgan ()
Additional contact information
Melvyn Weeks: University of Cambridge

No 451, CEIS Research Paper from Tor Vergata University, CEIS

Abstract: In many applications common in testing for convergence the number of cross-sectional units is large and the number of time periods are few. In these situations asymptotic tests based on an omnibus null hypothesis are characterised by a number of problems. In this paper we propose a multiple pairwise comparisons method based on an a recursive bootstrap to test for convergence with no prior information on the composition of convergence clubs. Monte Carlo simulations suggest that our bootstrap-based test performs well to correctly identify convergence clubs when compared with other similar tests that rely on asymptotic arguments. Across a potentially large number of regions, using both cross-country and regional data for the European Union we find that the size distortion which afflicts standard tests and results in a bias towards finding less convergence, is ameliorated when we utilise our bootstrap test.

Keywords: Multivariate stationarity; bootstrap tests; regional convergence. (search for similar items in EconPapers)
JEL-codes: C51 R11 R15 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2019-02-14, Revised 2019-02-14
New Economics Papers: this item is included in nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ceistorvergata.it/RePEc/rpaper/RP451.pdf Main text (application/pdf)

Related works:
Working Paper: Robust Tests for Convergence Clubs (2018)
Working Paper: Robust Tests for Convergence Clubs (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rtv:ceisrp:451

Ordering information: This working paper can be ordered from
CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma
https://ceistorvergata.it

Access Statistics for this paper

More papers in CEIS Research Paper from Tor Vergata University, CEIS CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma. Contact information at EDIRC.
Bibliographic data for series maintained by Barbara Piazzi ().