Since 2014
Stochastic Convergence Across Brazilian States
Brazilian Review of Econometrics
View Archive Info| Field | Value | |
| Title |
Stochastic Convergence Across Brazilian States
— |
|
| Creator |
Mello, Marcelo; Ibmec Rio de Janeiro
|
|
| Subject |
Stochastic Convergence, High Persistence, Largest Autoregressive Root, Half- Life
C32, O41 — — |
|
| Description |
We analyze the dynamic properties of the relative income of Brazilian states for the 1985-2008 period. Unit root tests suggest that shocks to relative income have permanent effects, contradicting the stochastic convergence hypothesis. On the other hand, interval estimates of the largest autoregressive root produce wide confidence intervals that include many alternatives consistent with stationarity. Additionally, the confidence interval estimate of the half-life suggests that relative income shocks die out relatively quick, within an average of 0 to 5 years. These results suggest that relative income shocks have a temporary effect, thus supporting the stochastic convergence hypothesis. Furthermore, we build a relative income series for the Brazilian states for the 1947-2008 period andredo the exercises above. Finally, all of our results remain the same when we extend the sample to the 1947-2008 period.
— |
|
| Publisher |
Sociedade Brasileira de Econometria
|
|
| Contributor |
—
— |
|
| Date |
2010-10-11
|
|
| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
|
| Format |
application/pdf
|
|
| Identifier |
http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/2830
10.12660/bre.v30n12010.2830 |
|
| Source |
Brazilian Review of Econometrics; Vol 30, No 1 (2010); 23–52
Brazilian Review of Econometrics; Vol 30, No 1 (2010); 23–52 1980-2447 |
|
| Language |
eng
|
|
| Relation |
http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/2830/2231
|
|