One of the most widely studied empirical questions in the new growth economics concerns the role of initial conditions in affecting long-run outcomes. The statistical formulation of this dependence is known as convergence. This article surveys empirical work on convergence, with emphasis on the relationships between conventional definitions of convergence, the main statistical frameworks of evaluating convergence, and various economic models.
KeywordsCass–Koopmans growth model Cobb–Douglas functions Cointegration Convergence Endogenous growth Galton’s fallacy Growth nonlinearities Identification Income distribution Literacy rates Neoclassical growth theory Production functions Solow growth model Statistics and economics Technical change Time series analysis Regression tree
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