Solow or Lucas? Testing speed of convergence on a panel of OECD countries

Research in Economics

Volumn 65, Issue 2, 2011, Pages 110-123

  Arnold, Jens ^a   Bassanini, Andrea ^a,b,c   Scarpetta, Stefano ^a,c  

^a OECD   (France)

^b UNIVERSITÉ PANTHÉON ASSAS   (France)

^c IZA ^*  (Germany)

Author keywords

AK models; Human capital; Panel data; PMG estimators; Speed of convergence

Indexed keywords

EID: 79955641251     PISSN: 10909443     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.rie.2010.11.005     Document Type: Article

References (48)

1. Arnold, J., Bassanini, A., Scarpetta, S., 2007. Solow or Lucas? Testing growth models using panel data from OECD countries. OECD Economics Department Working Paper. 592.
2. Barro R.J., Sala-i-Martin X. Convergence. Journal of Political Economy 1992, 100:223-251.
3. Barro R.J., Sala-i-Martin X. Economic Growth 1995, McGraw-Hill, New York.
4. Bassanini A., Scarpetta S. Growth, technological change and ICT diffusion: recent evidence from OECD countries. Oxford Review of Economic Policy 2002, 18:324-344.
5. Bassanini A., Scarpetta S. Does human capital matter for growth in OECD countries? A Pooled Mean Group approach. Economics Letters 2002, 74(3):399-405.
6. Bernanke, B., Gürkaynak, R., 2001. Is growth exogenous? Taking Mankiw, Romer, and Weil seriously. NBER Working Paper. 8365.
7. Bond, S., Hoeffler, A., Temple, J., 2001. GMM estimation of empirical growth models. CEPR Discussion Paper. 3048.
8. Bond, S., Leblebicioglu, A., Schiantarelli, F., 2004. Capital accumulation and growth: a new look at the empirical evidence. IZA Discussion Paper. 1174.
9. Caballé J., Santos M. On endogenous growth with physical and human capital. Journal of Political Economy 1993, 101:1042-1067.
10. Card D. The causal effects of schooling on earnings. Handbook of Labor Economics 1999, North Holland, Amsterdam. O. Ashenfelter, D. Card (Eds.).
11. Caselli F., Esquivel G., Fernando L. Reopening the convergence debate: a new look at cross-country growth empirics. Journal of Economic Growth 1996, 1:363-389.
12. Cohen D., Soto M. Growth and human capital: good data, good results. Journal of Economic Growth 2007, 12:51-76.
13. Crain W.M., Lee K.J. Economic growth regressions for the American states: a sensitivity analysis. Economic Inquiry 1999, 37:242-257.
14. De la Fuente A., Doménech R. Schooling data, technological diffusion, and the neoclassical model. American Economic Review, Papers and Proceedings 2001, 91:323-327.
15. De la Fuente A., Doménech R. Human capital in growth regressions: how much difference does data quality make?. Journal of the European Economic Association 2006, 4(1):1-36.
16. Denison E.F. The Sources of Economic Growth in the United States 1961, CED, New York.
17. Englander S., Gurney A. Medium-term determinants of OECD productivity. OECD Economic Studies 1994, (22). Spring.
18. Evans P. How fast do economies converge. The Review of Economics and Statistics 1997, 79(2):219-225.
19. Hausman J. Specification tests in econometrics. Econometrica 1978, 46:1251-1271.
20. Im K.S., Pesaran M.H., Shin Y. Testing for unit roots in heterogeneous panels. Journal of Econometrics 2003, 115:53-74.
21. Islam N. Growth empirics: a panel data approach. Quarterly Journal of Economics 1995, 110:1127-1170.
22. Jones C.I. Time series tests of endogenous growth models. Quarterly Journal of Economics 1995, 110:495-525.
23. Jorgenson D.W., Gollop F.M., Fraumeni B.M. Productivity and US Economic Growth 1987, Harvard Univ. Press, Cambridge, MA.
24. Jorgenson, D.W., Stiroh, K.J., 2000. Raising the speed limit: US economic growth in the information age. Brookings Papers on Economic Activity. August.
25. Judson R.A., Owen A.L. Estimating dynamic panel data models: a guide for macroeconomists. Economics Letters 1999, 65:9-15.
26. Krueger A.B., Lindahl M. Education and growth: why and for whom?. Journal of Economic Literature 2001, 39:1101-1136.
27. Lee K., Pesaran M.H., Smith R. Growth and convergence in a multi-country empirical stochastic Solow model. Journal of Applied Econometrics 1997, 12:357-392.
28. Levin A., Lin C.F., Chu C.S.J. Unit root tests in panel data: asymptotic and finite-sample properties. Journal of Econometrics 2002, 108(1):1-24.
29. Levine R., Renelt D. A sensitivity analysis of cross-country growth regressions. American Economic Review 1992, 82(4):942-963.
30. Li D. Is the AK model still alive? The long-run relation between growth and investment re-examined. Canadian Journal of Economics 2002, 35:92-114.
31. Lucas R.E. On the mechanics of economic development. Journal of Monetary Economics 1988, 22:3-42.
32. Mankiw G.N., Romer D., Weil D.N. A contribution to the empirics of economic growth. Quarterly Journal of Economics 1992, 107:407-437.
33. Mulligan C.B., Sala-i-Martin X. Transitional dynamics in two-sector models of endogenous growth. Quarterly Journal of Economics 1993, 108:739-773.
34. Nickell S. Biases in dynamic models with fixed effects. Econometrica 1981, 49:1399-1413.
35. OECD, 2007. Employment outlook. Paris.
36. Pesaran M.H. Estimation and inference in large heterogeneous panels with a multifactor error structure. Econometrica 2006, 74:967-1012.
37. Pesaran M.H., Shin Y., Smith R. Pooled Mean Group estimation of dynamic heterogeneous panels. Journal of the American Statistical Association 1999, 94:621-634.
38. Pesaran M.H., Smith R. Estimating long-run relationships from dynamic heterogeneous panels. Journal of Econometrics 1995, 68(1):79-113.
39. Pintus P. A note on convergence under income tax progressivity. Macroeconomic Dynamics 2007, 12:286-299.
40. Piras R. On Lucas's model of endogenous growth. Economic Notes 1997, 26:111-134.
41. Psacharopoulos G., Patrinos H.A. Returns to investment in education: a further update. Education Economics 2004, 12(2):111-134.
42. Romer D. Advanced Macroeconomics 1996, McGraw-Hill, New York.
43. Sala-i-Martin, X., 1997. I just ran two million regressions. AEA Papers and Proceedings. May.
44. Sala-i-Martin X., Dopperlhofer G., Miller R.I. A Bayesian averaging of classical estimates (BACE) approach. American Economic Review, American Economic Association 2004, 94(4):813-835.
45. Sianesi B., van Reenen J. The returns to education: macroeconomics. Journal of Economic Surveys 2003, 17(2):157-200.
46. Temple J. Growth regressions and what the textbooks don't tell you. Bulletin of Economic Research 2000, 52:181-205.
47. Topel R. Labor markets and economic growth. Handbook of Labor Economics 1999, North Holland, Amsterdam. O. Ashenfelter, D. Card (Eds.).
48. Uzawa H. Optimum technical change in an aggregative model of economic growth. International Economic Review 1965, 6:18-31.