On Asymmetric Business Cycle Effects on Convergence Rates: Some European Evidence

Ramón María-Dolores and Israel Sancho
Authors registered in the RePEc Author Service: Ramón Maria-Dolores

No 45, Computing in Economics and Finance 2004 from Society for Computational Economics

Abstract: In this paper, we provide empirical evidence for some European countries, over the period 1963-2000, on whether business cycle affects convergence process or catching-up. To do so, we first evaluate beta-convergence. We find evidence in favour of this type of convergence for six countries (Spain, Portugal, Finland, Denmark, Sweden and Germany). Spain, Portugal and Finland are countries initially "poor" with a growth rate larger than EU-15 average. On the contrary, Germany, Denmark and Sweden are countries initially "rich" growing smaller than average. We observe that convergence rates in "poor" countries has been larger during expansions than recessions while two of the "rich" countries, Denmark and Sweden, experiment the opposite effect

Keywords: stochastic convergence; cyclical convergence; Markov switching models (search for similar items in EconPapers)
JEL-codes: C22 E32 O40 (search for similar items in EconPapers)
Date: 2004-08-11
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:sce:scecf4:45

Access Statistics for this paper

More papers in Computing in Economics and Finance 2004 from Society for Computational Economics Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().