Possible explanations for lack of convergence

• Barro and Sala-i-Martin (1992): convergence is present if initial school enrollment and ratio of government consumption is held constant

  • In order to hold an explanatory variable constant, it must be present in the model
  • No data about government consumption
  • -> possible improvement of the results by inclusion of gov‘t consumption into the model

• Barro and Sala-i-Martin (1992) assume that technological level is the same across regions of interest

  • -> not applicable to the data in question

Notes: