02034cam a22002537 4500001000600000003000500006005001700011008004100028100002300069245011700092260006600209490005100275500001500326520093600341530006101277538007201338538003601410690011001446700002301556710004201579830008601621856003701707856003601744t0159NBER20161023053953.0161023s1994 mau||||fs|||| 000 0 eng d1 aBernard, Andrew B.10aInterpreting Tests of the Convergence Hypothesish[electronic resource] /cAndrew B. Bernard, Steven N. Durlauf. aCambridge, Mass.bNational Bureau of Economic Researchc1994.1 aNBER technical working paper seriesvno. t0159 aJune 1994.3 aThis paper provides a framework for understanding the cross- section and time series approaches which have been used to test the convergence hypothesis. First, we present two definitions of convergence which capture the implications of the neoclassical growth model for the relationship between current and future cross-country output differences. Second, we identify how the cross-section and time series approaches relate to these definitions. Cross-section tests are shown to be associated with a weaker notion of convergence than time series tests. Third, we show how these alternative approaches make different assumptions on whether the data are well characterized by a limiting distribution. As a result, the choice of an appropriate testing framework is shown to depend on both the specific null and alternative hypotheses under consideration as well as on the initial conditions characterizing the data being studied. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aC1 - Econometric and Statistical Methods and Methodology: General2Journal of Economic Literature class.1 aDurlauf, Steven N.2 aNational Bureau of Economic Research. 0aTechnical Working Paper Series (National Bureau of Economic Research)vno. t0159.4 uhttp://www.nber.org/papers/t015941uhttp://dx.doi.org/10.3386/t0159