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TAR Panel Unit Root Tests and Real Convergence
Author(s) -
Beyaert Arielle,
Camacho Maximo
Publication year - 2008
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/j.1467-9361.2008.00479.x
Subject(s) - unit root , econometrics , convergence (economics) , panel data , unit root test , economics , computation , per capita , unit (ring theory) , test (biology) , tar (computing) , mathematics , statistics , computer science , macroeconomics , algorithm , cointegration , geology , paleontology , population , demography , mathematics education , sociology , programming language
The authors propose a new panel data methodology to test real convergence in a non‐linear framework. This extends the existing methods by combining three approaches: the threshold model, the panel data unit root tests, and the computation of critical values by bootstrap simulation. The authors apply their methodology to the per capita outputs of a total of 15 European countries, including some of the East European countries that have recently joined the EU.