Growth equations: a quantile regression exploration

Mello, Marcelo de; Perrelli, Roberto

doi:10.1016/s1062-9769(03)00043-7

Cited by 61 publications

(32 citation statements)

References 15 publications

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“…This result also contradicts the idea of Epstein et al (2003) that the convergence in this set of countries is mainly due to the performance of the countries that grew less. Focusing on periods, our outcomes confirm those of Datta (2003) who finds convergence during the period 1950-1992 although with a cyclical trend, and modify the results of Mello and Perrelli (2003) who found a lower degree of convergence during the period 1960-1985. Our analysis, however, shows that convergence was stronger in the period 1960-1970.…”

Section: Resultssupporting

confidence: 84%

“…With this method, we can observe how the countries under consideration are converging towards several steady states and define clusters or clubs of convergence (Durlauf and Johnson, 1995). Mello and Perrelli (2003) and Ram (2008,) using this methodology for a broad sample, find evidence of unconditional convergence for countries in the upper tail of the conditional growth distribution but not for those in the lower tail. They find evidence of convergence for the whole set of OECD countries only in the upper tail of the conditional growth distribution, and for different sub-samples of OECD countries.…”

Section: The New and Alternative Approachesmentioning

confidence: 99%

“…Studies such as Mello and Perrelli (2003) and Ram (2008) apply the quantile regressions methodology with cross-sectional data and find evidence of convergence only for the upper tail of the OECD countries during . Therefore, there is no consensus in the results and they depend on the methodology and the technique used.…”

Section: Introductionmentioning

confidence: 99%

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Testing the convergence hypothesis for OECD countries: a reappraisal

Rivas

Villarroya

2017

Economics

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This paper reviews the results of a number of empirical studies of convergence among the OECD countries and discusses some limitations of these studies. Moreover, the paper tries to deal with these limitations by presenting a new and more appropriate methodology: quantile regressions. The results obtained with this specification support the view that, even among the OECD countries, there are different clusters. The parameter representing the convergence hypothesis, despite being negative in every case, is higher in value and more significant as we advance to higher quantiles. These outcomes reveal a faster convergence between the countries that belong to the upper quantiles. Moreover, 1960Moreover, -1970 is highlighted as the period in which convergence was more intense. JEL C32 O11

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Section: Resultssupporting

confidence: 84%

Section: The New and Alternative Approachesmentioning

confidence: 99%

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Testing the convergence hypothesis for OECD countries: a reappraisal

Rivas

Villarroya

2017

Economics

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“…Whether the effect of finance on growth is heterogeneous along quantiles of the conditional growth distribution is investigated entirely by Andini and Andini (2014) although they were inspired by some studies (Canarella and Pollard, 2004;Mello and Perrelli, 2003). Andini and Andini (2014) provide some evidence through the panel dataset of Levine, Loayza, and Beck (2000) that countries in the upper tail of the conditional growth distribution react more than countries in the lower tail to the same financial stimulus.…”

Section: Introductionmentioning

confidence: 99%

Quantile Parameter Heterogeneity in the Finance-Growth Relation: The Case of OECD Countries

Uyar¹,

Uyar²

2018

Prague Economic Papers

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This paper seeks to investigate the effect of financial development on growth in OECD countries during 1999-2014. The aim of the analysis is to study the dependence of growth on given financial development indicators along quantiles of the conditional growth distribution, taking into account the effect played by each country over time. For the purpose of the empirical analysis, it performed the instrumental variable quantile regression panel data (IV-QRPD) model suggested by Powell (2016). The findings of IV-QRPD model indicated that the effect of finance on growth is changing along quantiles of the conditional growth distribution. That is to say, we provide some evidence that high-growth OECD countries react to the changes in financial development less than low-growth countries.

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“…This technique, increasingly popular in the field of economic growth, as evidenced in recent studies by Mello and Perrelli (2003), Barreto and Hughes (2004) or Crespo-Cuaresma et al…”

Section: Introductionmentioning

confidence: 99%