TY - JOUR
T1 - Convergence and long-run uncertainty
AU - Pincheira, Pablo M.
PY - 2014
Y1 - 2014
N2 - In this paper the neoclassical convergence hypothesis is tested for the thirteen regions of Chile using cross-section techniques and the time-series based tests proposed by Bernard, A. and S. Durlauf, 1995, "Convergence in International Output", Journal of Applied Econometrics 10 (2), pp. 97-108. Cross-section analysis in combination with a Bayesian Modeling Averaging strategy supports the convergence hypothesis, despite of some instability detected in the estimated speed of convergence. When applying time-series based tests, the no convergence null hypothesis cannot be rejected at the usual significance levels. When clustering the Chilean regions into three different groups, however, evidence of cointegration within these groups is found, indicating that the regional growth process in Chile is driven by a lower number of common trends.
AB - In this paper the neoclassical convergence hypothesis is tested for the thirteen regions of Chile using cross-section techniques and the time-series based tests proposed by Bernard, A. and S. Durlauf, 1995, "Convergence in International Output", Journal of Applied Econometrics 10 (2), pp. 97-108. Cross-section analysis in combination with a Bayesian Modeling Averaging strategy supports the convergence hypothesis, despite of some instability detected in the estimated speed of convergence. When applying time-series based tests, the no convergence null hypothesis cannot be rejected at the usual significance levels. When clustering the Chilean regions into three different groups, however, evidence of cointegration within these groups is found, indicating that the regional growth process in Chile is driven by a lower number of common trends.
KW - Bayesian model averaging
KW - Chile
KW - Cointegration
KW - Convergence hypothesis
KW - Economic growth
UR - http://www.scopus.com/inward/record.url?scp=84901677163&partnerID=8YFLogxK
U2 - 10.4067/S0718-88702014000100002
DO - 10.4067/S0718-88702014000100002
M3 - Article
AN - SCOPUS:84901677163
SN - 0716-5927
VL - 29
SP - 17
EP - 52
JO - Revista de Analisis Economico
JF - Revista de Analisis Economico
IS - 1
ER -