Use of conditional convergence between economies to estimate steady state incomes within economies, The
This dissertation introduces a panel data method to estimate country-specific steady state levels of output in an augmented Solow growth model. The use of panel data permits the estimation of a country-specific effect which can explain the surprising result that many developing economies are above their steady states. These empirical results also confirm that the augmented Solow model can explain the present cross-country income divergence of developed and developing economies. Another application finds evidence that the post-Soviet economies began their transition toward markets with initial ...