Please use this identifier to cite or link to this item:
Haupt, Harry
Meier, Verena
Year of Publication: 
Series/Report no.: 
Working Papers, Institute of Mathematical Economics 455
Classical growth convergence regressions fail to account for various sources of heterogeneity and nonlinearity. While recent contributions are able to address either the one or the other, we present a simple two-step method to address both issues. Based on a slightly augmented version of a recently proposed algorithm to identify convergence clubs, we formulate a flexible nonlinear framework which allows to analyze convergence effects on both individual and club level, while alleviating potential misclassification in the club formation process using simultaneous smoothing over the club structure. The merits of the method are illustrated for data on different aggregational levels.
Document Type: 
Working Paper

Files in This Item:

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.