convergEU (version 0.7.3.2)

beta_conv: Beta-convergence statistic

Description

Given a dataframe of quantitative indicators along time, the unconditional beta convergence is a statistic capturing some important features. A time variable must be present and sorted. Missing values are not allowed. All other columns are indicator values in each considered country.

Usage

beta_conv(
  tavDes,
  time_0,
  time_t,
  all_within = FALSE,
  timeName = "time",
  useTau = TRUE,
  useCon = FALSE
)

Value

a list with the value of beta-conv, by OLS (least-squares), the transformed data and standard statistical tests.

Arguments

tavDes

the sorted dataframe time by countries on the original scale. No other variable besides time and countries' indicator must be present.

time_0

reference time.

time_t

target time strictly larger than time_0.

all_within

is FALSE if just two different years are considered (default); if more than two years are desired within the specified interval then it must be TRUE ; the reference time remains time_0.

timeName

the name of the variable that contains time information.

useTau

if TRUE the log ratio of indicator values is divided for the elapsed time (years).

useCon

if TRUE replaces 0 with a minimum constant value

References

https://www.eurofound.europa.eu/system/files/2022-04/introduction-to-the-convergeu-package-0.6.4-tutorial-v2-apr2022.pdf

Examples

# Example 1:
# Dataframe in the format years by countries:
require(tibble)
myTB1  <- tibble::tribble(
  ~years, ~UK, ~DE, ~IT,
  1990,   998,  1250, 332,
  1988,   1201, 868, 578,
  1989,   1150, 978, 682,
  1991,  1600,  1350, 802
)

# Sort the time variable:
newdata <- myTB1[order(myTB1$years),]

# Beta convergence statistic by considering just two times, e.g. 1989 and 1991:
myBC1 <- beta_conv(newdata,1989,1991,timeName="years")

# Visualize the summary of the results (estimated coefficients, standard errors, p-values):
myBC1$res$summary

# Visualize the adjusted R-squared:
myBC1$res$adj.r.squared

# Beta convergence statistic by considering more than two times:
myBC2 <- beta_conv(newdata,1988,1991,all_within=TRUE,timeName="years")

# Example 2:
# Dataframe in the format years by countries, time variable already sorted:
testTB <- tribble(
    ~time, ~countryA ,  ~countryB,  ~countryC,
    2000,     0.8,   2.7,    3.9,
    2001,     1.2,   3.2,    4.2,
    2002,     0.9,   2.9,    4.1,
    2003,     1.3,   2.9,    4.0,
    2004,     1.2,   3.1,    4.1,
    2005,     1.2,   3.0,    4.0
    )
myBC3 <- beta_conv(testTB, time_0 = 2000, time_t = 2005, timeName = "time")
myBC4 <- beta_conv(testTB, time_0 = 2000, time_t = 2005, all_within = TRUE, timeName = "time")

# Example 3
# Beta convergence for the emp_20_64_MS Eurofound dataset:
data(emp_20_64_MS)
empBC <- beta_conv(emp_20_64_MS, time_0 = 2002, time_t = 2006, timeName = "time")

# Summary of the model results:
empBC$res$summary

# Adjusted R-squared:
empBC$res$adj.r.squared