Output gap and non-linear convergence

Beyaert, A., García-Solanes, J., Journal of Policy Modelling, 36, 1, 2014, pp. 121-135. Abstract: We apply unit root tests in a multivariate TAR model with bootstrapping simulations to assess the influence of short-run economic conditions on long-run economic convergence and to extract economic policy implications. We use two different groups of countries whose members share important…