Testing for convergence from the micro level

Giorgio Fazio and Davide Piacentino

Discussion Papers from D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy

Abstract: Empirical convergence analysis is typically envisaged from a macro aggregate perspective. However, researchers have recently highlighted how investigating convergence at the disaggregate level may yield interesting insights into the convergence debate. 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 beta- and sigma-like convergence parameters for both the micro and the macro level of interest. We provide a practical example that analyses productivity convergence 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: 2011-07-26
New Economics Papers: this item is included in nep-eff and nep-geo
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Citations: View citations in EconPapers (3)

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Working Paper: Testing for convergence from the micro-level (2011)
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