We investigate the efficiency of the Dickey-Fuller (DF) test as a tool to examine the convergence hypothesis. In doing so, we first describe two possible outcomes, overlooked in previous studies, namely Loose Catching-up and Loose Lagging-behind. Results suggest that this test is useful when the...

We study the hypothesis of convergence amongst Mexican regions since 1940 with special interest in the post-trade liberalization period. A standard time-series convergence test shows that per capita income levels between the capital and the rest of the regions tend to narrow over time. Using the...

En este estudio se analiza la hipótesis de convergencia entre regiones de la República Mexicana desde 1940, con particular interés en el periodo posterior a la liberación económica. Un análisis de series de tiempo muestra que la diferencia en ingreso per capita entre la región Capital y...