Paper #236

Título:

It's still 2%: evidence on convergence from 116 years of the US States panel data

Autor:

Etsuro Shioji

Data:

Septiembre 1997

Resumen:

A new debate over the speed of convergence in per capita income across economies is going on. Cross sectional estimates support the idea of slow convergence of about two percent per year. Panel data estimates support the idea of fast convergence of five, ten or even twenty percent per year. This paper shows that, if you ``do it right'', even the panel data estimation method yields the result of slow convergence of about two percent per year.

Palabras clave:

income convergence, panel data estimation, biases, maximum likelihood, US states

Códigos JEL:

O40, C23, O51

Área de investigación:

Macroeconomía y Economía Internacional

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