Nonlinearities in economic growth and club convergence

Rosa Bernardini Papalia () and Silvia Bertarelli

Empirical Economics, 2013, vol. 44, issue 3, 1202 pages

Abstract: This paper deals with heterogeneity and nonlinearities in the growth process by developing a two-stage strategy to identify and estimate a club convergence model with threshold externalities. Because of identification and collinearity problems, we develop an entropy-based estimation procedure which simultaneously takes account of ill-posed and ill-conditioned inference problems. First, clubs are identified by introducing a mapping structure in a conditional convergence model. Finally, we estimate a multiple club convergence model, where clubs correspond to subsets of total observations. Our procedure is applied to assess the existence of club convergence for a large sample of countries (1965–2008). Copyright Springer-Verlag 2013

Keywords: Nonlinear growth; Club convergence; Mapping models; Maximum entropy estimation; C130; C210; C230; O470 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s00181-012-0568-2

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