2016
DOI: 10.1002/jae.2544
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Economic Transition and Growth: A Replication

Abstract: Summary Phillips and Sul (Journal of Applied Econometrics 2009, 24, 1153–1185) provide an algorithm to identify convergence clubs in a dynamic factor model of economic transition and growth. We provide a narrow replication of their key results, using the open source R software instead of the original GAUSS routines. We are able to exactly replicate their results on convergence clubs, corresponding point estimates and standard errors. We comment on minor differences between their reported results and their clus… Show more

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Cited by 82 publications
(56 citation statements)
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“…After that, Schnurbus et al (2017) further modify the original algorithm. The steps of the club clustering algorithm used herein are as follows [26]:…”
Section: Club Clustering Algorithmmentioning
confidence: 99%
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“…After that, Schnurbus et al (2017) further modify the original algorithm. The steps of the club clustering algorithm used herein are as follows [26]:…”
Section: Club Clustering Algorithmmentioning
confidence: 99%
“…In order to avoid missing any club members and to get as few clubs as possible, it is necessary to conduct a two-two merger convergence test on the initial club. Schnurbus et al (2017) suggest using the iterative method to test and merge the adjacent clubs [26]. First, merging the initial clubs 1 and 2, and then performing the joint log t regression test.…”
Section: Club Clustering Algorithmmentioning
confidence: 99%
See 1 more Smart Citation
“…We follow the proposal of[46], who slightly amend the PS algorithm, according to[47] 2. The smoothing parameter of the Hodrick-Prescott method can condition the results of the filtering, as noted in[48].…”
mentioning
confidence: 99%
“…for their analysis of convergence in 18 Western OECD countries. 2 Making use of portions of the R code written bySchnurbus, Haupt, and Meier (2017) for their replication ofPhillips and Sul's (2009) results on convergence clubs, I followPhillips and Sul (2009) and use theHodrick-Prescott (1997) filter to remove the cyclical component of the data and then calculate the dependent variable log − 2log (log ) as described above, before omitting the first third of the data points so that the effective sample period is 1914 to 2001. Estimation of Equation (1) using the data so constructed exactly reproducesPhillips and Sul's (2009) results for the 18 Western OECD countries.…”
mentioning
confidence: 99%