Institutional quality convergence in the Euro area countries: a note and further evidence

Abstract

In a recent paper in this journal, Pérez-Moreno et al. (2020) examine the presence of convergence or divergence in terms of institutional quality among the Eurozone countries over the period 2008-17. Convergence is a long-term process. Furthermore, it may not follow a smooth and stable course since it can be affected by major episodes such as the recent crisis and the recession that afflicted Eurozone countries. Better insights can be drawn with the use of timeseries spanning over a longer period and by allowing for structural shifts in the process caused by important episodes and major events.