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Chapter 13 Modeling Parameter Heterogeneity in Cross-Country Regression Models

Economic Growth and Development

ISBN: 978-1-78052-396-5, eISBN: 978-1-78052-397-2

ISSN: 1574-8715

Publication date: 1 November 2011

Abstract

We employ various local generalizations of the Solow growth model that model parameter heterogeneity using human development at the beginning of the period with adult literacy rates and life expectancy at birth as a proxy. The model takes the form of a semiparametric varying coefficient model along the lines of Hastie and Tibshirani (1992). The empirical results show substantial parameter heterogeneity in the cross-country growth process, a finding that is consistent with the presence of multiple steady-state equilibria and the emergence of convergence clubs.

Keywords

Citation

Kourtellos, A. (2011), "Chapter 13 Modeling Parameter Heterogeneity in Cross-Country Regression Models", de La Grandville, O. (Ed.) Economic Growth and Development (Frontiers of Economics and Globalization, Vol. 11), Emerald Group Publishing Limited, Bingley, pp. 367-387. https://doi.org/10.1108/S1574-8715(2011)0000011018

Publisher

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Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited