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- W2253342783 abstract "Using a Solow-Swan model with a stochastic saving rate and stochastic productivity we analyse the distributions of parameter estimates that emerge under various choices of technology, and of the dimension of the panel on which cross-section regressions are based. There are distinct asymmetries that characterize these distributions. These asymmetries become more pronounced when the effects of a near-unit root in the productivity shock become magnified over a longer time horizon and when the underlying production function is not Cobb-Douglas. Consequently, relying on traditional econometric transformations of these parameter estimates based on symmetric distributions, such as t−ratios, will be quite misleading if one tries to assess technology parameters and β−convergence. ∗The first author gratefully acknowledges the hospitality of the Economics Department at the University of Guelph. Thanks also to Steve Dowrick, Timothy Kam, and participants at the Australasian Macro Workshop for helpful comments." @default.
- W2253342783 created "2016-06-24" @default.
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- W2253342783 date "2006-01-01" @default.
- W2253342783 modified "2023-09-27" @default.
- W2253342783 title "Estimates of Technology and Convergence: Simulation Results" @default.
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