Testing for economic convergence
Posted: Tue Apr 16, 2019 5:37 pm
Hi folks,
I am running a panel regression with the growth rate of per capita income as the dependent variable. As is standard in the literature, I want to control for the initial level of per capita income (which in my case is the per capita income in 1970). How do I include this convergence term in my regression?
I am running a panel regression with the growth rate of per capita income as the dependent variable. As is standard in the literature, I want to control for the initial level of per capita income (which in my case is the per capita income in 1970). How do I include this convergence term in my regression?