TY - GEN
T1 - Nonlinear Models of Convergence
AU - Gluschenko, Konstantin
PY - 2020/7
Y1 - 2020/7
N2 - A significant issue in studies of economic development is whether economies (countries, regions of a country, etc.) converge to one another in terms of per capita income. In this paper, nonlinear asymptotically subsiding trends of the income gap in a pair of economies model the convergence process. A few specific forms of such trends are proposed: log-exponential trend, exponential trend, and fractional trend. A pair of economies is deemed converging if time series of their income gap is stationary about any of these trends. To test for stationarity, standard unit root tests are applied with non-standard test statistics that are estimated for each kind of trends.
AB - A significant issue in studies of economic development is whether economies (countries, regions of a country, etc.) converge to one another in terms of per capita income. In this paper, nonlinear asymptotically subsiding trends of the income gap in a pair of economies model the convergence process. A few specific forms of such trends are proposed: log-exponential trend, exponential trend, and fractional trend. A pair of economies is deemed converging if time series of their income gap is stationary about any of these trends. To test for stationarity, standard unit root tests are applied with non-standard test statistics that are estimated for each kind of trends.
KW - Income convergence
KW - Nonlinear time-series model
KW - Time series econometrics
KW - Unit root
UR - http://www.scopus.com/inward/record.url?scp=85092092468&partnerID=8YFLogxK
U2 - 10.1007/978-3-030-58657-7_18
DO - 10.1007/978-3-030-58657-7_18
M3 - Conference contribution
AN - SCOPUS:85092092468
SN - 9783030586560
T3 - Communications in Computer and Information Science
SP - 207
EP - 215
BT - Mathematical Optimization Theory and Operations Research - 19th International Conference, MOTOR 2020, Revised Selected Papers
A2 - Kochetov, Yury
A2 - Bykadorov, Igor
A2 - Gruzdeva, Tatiana
PB - Springer Science and Business Media Deutschland GmbH
T2 - 19th International Conference on Mathematical Optimization Theory and Operations Research,MOTOR 2020
Y2 - 6 July 2020 through 10 July 2020
ER -