Non-linear estimation for rate of convergence
Posted: Wed Dec 28, 2011 4:34 am
Hi i´m working on a non-linear relationship between the GDP growth rate(gy) and the initial GDP(year zero(yo)) for a group of countries. The main objective is to estimate the rate of convergence in different periods of time. I´m having trouble in the specification, how should i specificate it on eviews?
Equation: gy = b0 -((1-exp(-b1*20))/20)yo
Thanks in advance :D
Equation: gy = b0 -((1-exp(-b1*20))/20)yo
Thanks in advance :D