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fAs an alternative to looking for an inverse relationship between initial income and rates of growth as a way to look for evidence of convergence,
\fAs an alternative to looking for an inverse relationship between initial income and rates of growth as a way to look for evidence of convergence, a second way that economists do so is to compute the standard deviation of income per capita across countries for a given year and then check to see if the standard deviation declines over time. If it does, then this is evidence of convergence. The Excel file for this problem set contains data on log real GDP per capita from 1990 to 2019 for several countries that were formally communist, but not part of the Soviet Union. Specifically, the data set covers, Bulgaria (BGR), Czech Republic (CZE), Hungary (HUN), Poland (POL), Romania (ROU), Slovakia (SVK), and countries that were part of the former Yugoslavia, Bosnia- Herzegovina (BIH), Croatia (HRV), North Macedonia (MKD), Montenegro (MNE), Serbia (SRB), and Slovenia (SVN). a. For each year, have Excel compute the standard deviation of log real GDP per capita across these 12 countries. You should end up with 29 values for the standard deviation, one for each year. The Excel command is = stdev.s(array). N b. Plot the standard deviation time series that you found in part a and include the plot with your answers. Do you see evidence of convergence across these countries? Why or why not
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