A note on non-parametric estimation with predicted variables

This article gives the asymptotic properties of non-parametric kernel-based density and regression estimators when one of the variables is predicted. Such variables, also known as ‘constructed variables' or ‘generated predictors', occur quite frequently in econometric and applied economic analysis. The impact of using predicted rather than observed values on the properties of estimators has been extensively studied in the fully parametric context. The results derived here are applicable to the general situation in which the predictor is estimated using a consistent non-parametric method with standard convergence rates. Therefore, the presented results are, generally speaking, the asymptotics for semi-nonparametric two-step (or plug-in) estimation problems. The case of parametric estimation based on non-parametric predictors is also covered

Growth and convergence in south-south integration areas: an empirical analysis

Until recently, it has been argued in economic theory that regional integration and trade agreements among developing countries may achieve negative growth effects. This study tests empirically the effects of such South–South agreements on growth and convergence. All three world regions in question are considered: South America, Southeast Asia, and Sub-Saharan Africa. A comprehensive panel data analysis is conducted that distinguishes between the problems of testing for stronger growth and accelerated convergence, respectively. The data indicate that the considered South–South agreements promote both