Papalia, Rosa Bernardini; Bertarelli, Silvia - In: Empirical Economics 44 (2013) 3, pp. 1171-1202
This paper deals with heterogeneity and nonlinearities in the growth process by developing a two-stage strategy to identify and estimate a club convergence model with threshold externalities. Because of identification and collinearity problems, we develop an entropy-based estimation procedure...