The Review of Economics and Statistics Vol. 84 No. 1 2002
World War II and Convergence
Abstract
Proxies that measure the effect of World War II on a country's capital stock are used as instruments for estimating standard cross-country growth regressions. The war's destruction should offer a natural experiment that allows us to consistently estimate the speed at which productivity growth converges to its long-run path. This paper presents evidence that convergence rates are approximately 4% to 6% per annum, substantially larger than conventional wisdom.
- DOI
- 10.1162/003465302317331964
- Volume
- 84
- Issue
- 1
- Pages
- 131-138
- Language
- en
- Sources
- openalex crossref