Convergence, endogenous growth, and productivity disturbances

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

17 Scopus Citations
View graph of relations



Original languageEnglish
Pages (from-to)535-547
Journal / PublicationJournal of Monetary Economics
Issue number3
Publication statusPublished - Dec 1996
Externally publishedYes


Kelly (1992) has recently shown that evidence on convergence cannot be taken as evidence against endogenous growth in general. This study uses a well-known class of stochastic growth models to show other difficulties with traditional empirical studies of convergence. Key parameters typically cannot be estimated consistently in cross-section regressions. When the parameters are assumed known, implications for convergence arc unavailable except under restrictive and economically unmotivated assumptions. Those same assumptions that relate key parameters to cross-country convergence render cross-section regressions impossible to estimate consistently.

Research Area(s)

  • Cross-country dependence, Cross-country regression, Increasing returns, Stochastic growth, Time-series regression

Citation Format(s)