Transitional Dynamics with Endogenous Control Variables

Thomas Steger

Swiss Journal of Economics and Statistics (SJES), 2000, vol. 136, issue I, 25-43

Abstract: The method of cross-sectional conditional convergence regression is crucially based on the concept of exogenous control variables. However, there are strong theoretical arguments and solid empirical support for the view that at least a subset of the control variables varies systematically in the course of economic development. In addition to econometric issues, the explicit consideration of endogenous control variables affects the theoretical interpretation of the conditional convergence results. Accordingly, the variation of some of the control variables with the level and the growth rate of per capita income contains important information about the transition to the balanced-growth equilibrium rather than information about the balanced-growth equilibrium itself.

Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sjes.ch/papers/2000-I-2.pdf (application/pdf)

Related works:
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:ses:arsjes:2000-i-2

Access Statistics for this article

Swiss Journal of Economics and Statistics (SJES) is currently edited by Marius Brülhart

More articles in Swiss Journal of Economics and Statistics (SJES) from Swiss Society of Economics and Statistics (SSES) Contact information at EDIRC.
Bibliographic data for series maintained by Kurt Schmidheiny ().