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dc.contributor.authorLe Pen, Yannick
dc.date.accessioned2011-07-26T14:46:36Z
dc.date.available2011-07-26T14:46:36Z
dc.date.issued2011
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/6806
dc.language.isoenen
dc.subjectGrowthen
dc.subjectRegional Convergenceen
dc.subjectPair-wise approachen
dc.subjectUnit rooten
dc.subjectStructural breaksen
dc.subjectAutocorrelation functionen
dc.subject.ddc338.9en
dc.subject.classificationjelC32en
dc.subject.classificationjelO47en
dc.titleA pair-wise approach to output convergence between European regionsen
dc.typeArticle accepté pour publication ou publié
dc.description.abstractenWe apply the Pesaran (2007) pair-wise approach of convergence to the per capita outputs of 195 European regions for the period 1980–2006. Pesaran's approach is based on the computation of the percentage ratio of output gaps which fulfil a given convergence criterion. A high ratio will be interpreted in favour of convergence. In a first step, we define stochastic convergence between two regions as level stationarity of their output gap. Deviations from its equilibrium value will only have a temporary effect. Results from several usual unit root or stationarity tests show us that the percentage ratio of level stationary output gaps is low, which stands against this definition of convergence. However, this convergence criterion excludes the possibility of changes in output gap equilibrium value or catching up between regions. To fit these cases, we combine the pair-wise approach with unit root or stationarity tests with structural breaks. Structural breaks are modelled by dummies (Zivot and Andrews, 1992; Kurozumi,2002) or as smooth structural breaks (Christopoulos and León-Ledesma, 2009). Overall results are not changed as convergence is not accepted more often. Finally, we consider the autocorrelation function approach of Caggiano and Leonida (2009). Autocorrelations and their confidence intervals are estimated for each output gap. Convergence between two regions is accepted if their per capita output gap autocorrelations become nonsignificantly different from zero after some lag. Results show that a high percentage of regions satisfy this convergence criterion. Contrary to the conclusions which could be made from previous results, shocks to output gaps seem to disappear as time passes.en
dc.relation.isversionofjnlnameEconomic Modelling
dc.relation.isversionofjnlvol28en
dc.relation.isversionofjnlissue3en
dc.relation.isversionofjnldate2011
dc.relation.isversionofjnlpages955-964en
dc.relation.isversionofdoihttp://dx.doi.org/10.1016/j.econmod.2010.11.006en
dc.description.sponsorshipprivateouien
dc.relation.isversionofjnlpublisherElsevieren
dc.subject.ddclabelCroissance et développement économiquesen


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