Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/52669 
Authors: 
Year of Publication: 
1995
Series/Report no.: 
Kiel Working Paper No. 677
Publisher: 
Kiel Institute of World Economics (IfW), Kiel
Abstract: 
This paper tests the hypothesis that real per capita income growth rates are random walks against the hypothesis implied by models of endogenous growth that they are stationary. Thereby the influence of the choice of different test statistics as well as the choice of the H0 on the test results is analysed. As the results show, the overwhelming majority of countries rejects the random walk hypothesis in favour of the stationarity hypothesis, no matter what statistics and H0 is chosen. Additional tests show that growth rates of most countries significantly differ. Together with the stationarity result, this implies widespread and persistent divergence of real per capita incomes.
Subjects: 
New growth theory
time series analysis
unit root test
autoregressive models
Baysian econometrics
Document Type: 
Working Paper
Document Version: 
Digitized Version

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