Testing for convergence from the micro-level

Giorgio Fazio and Davide Piacentino

Working Papers from Business School - Economics, University of Glasgow

Abstract: In the growth literature, researchers are typically concerned with macro convergence. However, to the extent that macro dynamics result from the underlying microeconomic relations, convergence should also be investigated at the micro-level. In this paper, we suggest an approach that allows exploiting large micro panels to test for convergence. Compared to the traditional convergence analysis, this approach allows obtaining, at the same time, β and σ like convergence parameters for both the micro and the macro level of interest. We provide a practical example that analyzes productivity convergence in Italy across firms and provinces using a large sample of Italian firms.

Keywords: Convergence; Multilevel Models; Italian firms (search for similar items in EconPapers)
JEL-codes: C33 D20 O47 (search for similar items in EconPapers)
Date: 2011-05
New Economics Papers: this item is included in nep-eff and nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Testing for convergence from the micro level (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:gla:glaewp:2011_07

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