This paper studies the robust estimation and inference of threshold models with integrated regressors. We derive the asymptotic distribution of the profiled least squares (LS) estimator under the diminishing threshold effect assumption that the size of the threshold effect converges to zero....

This chapter offers a general assessment of the economic activity in Bolivian regions thanks to an estimation, for the first time, of regional GDPs in Bolivia from 1950 onwards. The new quantitative evidence shows the economic upsurge and consolidation of new regions beyond the traditional...

We show that σ-convergence in regional productivity growth can be approximated by σ-convergence in sectoral productivity growth and σ-convergence in structural transformation-led productivity growth. Applying this framework to Japanese prefecture-level data from 1874 to 2008, we find support...