This, however, again leads to a coupling of h and k, and thus destroys unconditional convergence
We first calculate an unconditional convergence
model and then condition on entrepreneurship (1).
The key element of unconditional convergence
is to look at whether the levels of regional economy will converge to a constant vector for all the regions over a specific time period.
The results indicate that there is no evidence that supports the unconditional convergence
hypothesis of wages in the principal cities of Colombia.
The contribution of this paper is to provide a more robust test of unconditional convergence
in fiscal policies among the United States.
The GDP growth rate is the central piece of our analysis because is able to highlight the degree of conditional and unconditional convergence
and the factors underlying this process.
However, we believe that unconditional convergence
may not be expected when heterogeneous factors' endowment across countries is obvious.
From this inequality we can see the unconditional convergence
implies that the countries/regions converge to a common steady state while the conditional convergence implies that the countries/regions converge to their own steady state.
If they cannot reject the hypothesis of country dummies being equal, countries would be converging to the same steady state, that is, unconditional convergence
In the case of the OECD, the results would even seem to suggest the occurrence of unconditional convergence
(for a survey, see Sala-i-Martin 1996).
Moreover, Barro and Sala-i-Martin (1992, 1995) find evidence of unconditional convergence
using data for regional total output for the USA, the European Union, and the Japanese Prefectures.