Structural Breaks and Convergence in Output Growth in the EU

Clifford L.F. Attfield ()

Bristol Economics Discussion Papers from School of Economics, University of Bristol, UK

Abstract: Convergence is defined for a multivariate time-series model of output with breaks in intercepts and in time trends. Using OECD quarterly data on output from 1980, the convergence hypothesis is tested across seven European economies, Belgium, Finland, France, Italy, the Netherlands, Spain and the UK. On the strictest definition, the hypothesis of convergence of output can be rejected but, with a weaker definition, there is some evidence of convergence for the five countries Belgium, Finland, France, the Netherlands and the UK. The data is consistent with a model in which each country's trend output is related to a common European stochastic trend. This trend output is estimated and graphed for each country.

Keywords: Convergence; Output Growth; Permanent Stochastic Trends (search for similar items in EconPapers)
JEL-codes: C32 C51 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2003-01
New Economics Papers: this item is included in nep-eec, nep-ets and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:bri:uobdis:03/544

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