^{In the regression equat}^ion^Y/N⁾^/^Y/N⁾⁼^a⁺^c^Y/N⁾1960^{, where}^Y/N⁾^/^Y/N⁾ stands for the average annual growth rate of per-capita income, the parameter c is___________when the data across countries are analyzed and __________ is found.

Question

Quizplus · Accepted Answer

The parameter c is negative when convergence is found in the data across countries, indicating that countries with lower initial incomes grow faster than those with higher initial incomes, thus converging over time.

In the Regression Equation Y/N)/Y/N) = a + cY/N)1960

^{In the Regression Equat}^ion^Y/N⁾^/^Y/N⁾⁼^a⁺^c^Y/N⁾1960