Authors: Rosa Bernardini Papalia Silvia Bertarelli
Publish Date: 2012/03/14
Volume: 44, Issue: 3, Pages: 1171-1202
Abstract
This paper deals with heterogeneity and nonlinearities in the growth process by developing a twostage strategy to identify and estimate a club convergence model with threshold externalities Because of identification and collinearity problems we develop an entropybased estimation procedure which simultaneously takes account of illposed and illconditioned inference problems First clubs are identified by introducing a mapping structure in a conditional convergence model Finally we estimate a multiple club convergence model where clubs correspond to subsets of total observations Our procedure is applied to assess the existence of club convergence for a large sample of countries 1965–2008
Keywords: