Markov chains, eigenvalues and the stability of economic growth processes

Fernando Delbianco (), Andrés Fioriti () and Fernando Tohmé
Additional contact information
Andrés Fioriti: Departamento de Economía-Universidad Nacional del Sur

Empirical Economics, 2023, vol. 64, issue 3, No 11, 1347-1373

Abstract: Abstract In this paper, we analyze economic growth processes, using per capita growth series of 87 countries from 1961 to 2018 taken from the World Bank database, under the assumption that they followed Markov processes. We look for the regimes guiding those growth processes and define Markov chains according to which the time series switch from one regime to another. Our findings show that most of the growth processes are stable in the sense of remaining most of the time in a dominant regime. Hence, the main insight that can be obtained from our analysis is that growth processes can be better understood in terms of their idiosyncratic-dominant regimes.

Keywords: Markov process; Regime switching; Economic growth (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s00181-022-02276-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Markov Chains, Eigenvalues and the Stabilityof Economic Growth Processes (2021)
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:spr:empeco:v:64:y:2023:i:3:d:10.1007_s00181-022-02276-8

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

DOI: 10.1007/s00181-022-02276-8

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().