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On the Power of Absolute Convergence Tests
2006
Studies in Nonlinear Dynamics & Econometrics
1 I would like to thank Rodrigo Fuentes, William Easterly, and Klaus Schmidt-Hebbel for helpful comments and suggestions. Francisco Gallego provided able research assistance. The usual disclaimer applies. Abstract This paper analyzes whether or not the econometric methods usually applied to test for absolute convergence have provided a "fair" chance to this hypothesis. We show that traditional (absolute and conditional) convergence tests are not consistent with even the simplest model that
doi:10.2202/1558-3708.1237
fatcat:dnixafgelfbi5dvtfuxsftktqu