Arbeitspapier

Testing for Output Convergence: A Re-Examination

This paper investigates output convergence for the G7 countries using multivariate time series techniques. We consider both the null hypotheses of no convergence and convergence. It is shown that inferences on output convergence depend on which one of the two null hypotheses is considered. Further, the no convergence results reported in previous studies using the time series definition may be attributed to the low power of the test procedures being used. Our results also highlight some potential problems on interpreting results from some typical multivariate unit root and stationarity tests.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 319

Classification
Wirtschaft
Subject
Output convergence
multivariate test
unit root test
stationarity test

Event
Geistige Schöpfung
(who)
Cheung, Yin-Wong
Pascual, Antonio I. Garcia
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2000

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Cheung, Yin-Wong
  • Pascual, Antonio I. Garcia
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2000

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