NBER Working Papers and Publications
|January 1992||Convergence and Growth Linkages Between North and South|
with John F. Helliwell: w3948
Using cross-sectional data for 98 countries for 1960-85, this paper shows that growth of per capita GDP depends negatively on initial income levels, as implied by the convergence hypothesis, as well as on international differences in investment rates in physical and human capital. There is some evidence of slight economies of scale (1.06) among the industrial countries. The evidence in favor of the convergence hypothesis is strongest for the countries of the OECD and Latin America, and weakest for Asia. Growth in Latin America and Africa is lower than elsewhere even after allowing for international differences in initial income levels, scale, schooling and capital investment. Analysis of Solow residuals for the OECD countries (for which capital stock data are available) shows convergence i...
Published: North-South Linkages and International Macroeconomic Policy, Vines, Davidand David Currie, eds., Cambridge: Cambridge University Press, 1995,pp. 77-100.
|January 1991||Macroeconomic Convergence: International Transmission of Growth and Technical Progress |
with John F. Helliwell
in International Economic Transactions: Issues in Measurement and Empirical Research, Peter Hooper and J. David Richardson, editors
|February 1990||Macroeconomic Convergence: International Transmission of Growth and Technical Progress|
with John F. Helliwell: w3264
This paper uses data for nineteen industrial countries over the period 1960-1985 to examine the evidence for international convergence of technical progress. Several models of convergence, including a model in which convergence is affected by changes in a country's openness to trade, are evaluated against competing alternatives. We also assess the extent to which convergence depends on some key measurement issues, including the use of purchasing power parities to compare real output in different countries, the use of different capital stocks in aggregate production functions, and alternative ways of representing embodied or disembodied technical progress. The various models of technical progress are assessed by non-nested tests of both the estimated output equations, using the factor utili...
Published: International Economic Transactions: Issues in Measurement and Empirical Research, edited by Peter Hooper and J. David Richardson, pp. 388-436. Chicago: The University of Chicago Press, 1991.
|June 1985||Aggregate Output with Operating Rates and Inventories as Buffers BetweenVariable Final Demand and Quasi-Fixed Factors|
with John F. Helliwell: w1623
Empirical evidence has long shown that output varies more in the short-run than do all factor inputs, including employment and hours worked. There is also evidence that all factors, including capital, start adjusting within a few months, suggesting that production models should treat all measured factor inputs as quasi-fixed. In such a context, long-run equilibrium involves the choice of average factor proportions, including an average operating rate, that minimize total costs of producing the desired level of output. In response to unexpected or temporary changes in demand or cost conditions, optimal temporary equilibrium involves some changes in factor demands coupled with the joint use of pricing and production decisions to make best use of the buffering capacity provided by inventorie...
Published: Chung, Alan and John F. Helliwell. "Aggregate Output with Variable Rates of Utilization of Employed Factors." Journal of Econometrics, Vol. 33, (1986) .