Mixture Models, Convergence Clubs, And Polarization
AbstractWe argue that modeling the cross-country distribution of per capita income as a mixture distribution provides a natural framework for the detection of convergence clubs. The framework yields tests for the number of component distributions that are likely to be more informative than "bump hunting" tests and includes a method of assessing the cross-component immobility necessary to imply a correspondence between components and convergence clubs. Applying this approach to Penn World Data for the period 1960 to 2000 we find evidence of three component densities. We find little cross-component mobility and so interpret the multiple mixture components as representing convergence clubs. We document a pronounced tendency for the strength of the bonds between countries and clubs to increase and show that the well-known "hollowing out" of the middle of the distribution is largely attributable to the increased concentration of the rich countries around their component means. Copyright 2009 The Authors. Journal compilation International Association for Research in Income and Wealth 2009.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.
Volume (Year): 56 (2010)
Issue (Month): 1 (03)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0034-6586
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Michele Battisti & Michael S. Delgado & Christopher F. Parmeter, 2013. "Evolution of the Global Distribution of Carbon Dioxide: A Finite Mixture Analysis," Working Papers, University of Miami, Department of Economics 2013-10, University of Miami, Department of Economics.
- Di Vaio, Gianfranco & Enflo, Kerstin, 2011.
"Did globalization drive convergence? Identifying cross-country growth regimes in the long run,"
European Economic Review, Elsevier,
Elsevier, vol. 55(6), pages 832-844, August.
- Gianfranco Di Vaio & Kerstin Enflo, 2010. "Did Globalization Drive Convergence? Identifying Cross-Country Growth Regimes in the Long Run," Working Paper Series, The Rimini Centre for Economic Analysis 30_10, The Rimini Centre for Economic Analysis.
- Garance Genicot & Debraj Ray, 2014. "Aspirations and Inequality," NBER Working Papers 19976, National Bureau of Economic Research, Inc.
- Battisti, Michele & Parmeter, Christopher F., 2012. "GDP clustering: A reappraisal," Economics Letters, Elsevier, Elsevier, vol. 117(3), pages 837-840.
- Clementi, F. & Schettino, F., 2013.
"Income polarization in Brazil, 2001-2011: A distributional analysis using PNAD data,"
2013 Second Congress, June 6-7, 2013, Parma, Italy, Italian Association of Agricultural and Applied Economics (AIEAA)
149891, Italian Association of Agricultural and Applied Economics (AIEAA).
- Fabio Clementi & Francesco Schettino, 2013. "Income polarization in Brazil, 2001-2011: A distributional analysis using PNAD data," Economics Bulletin, AccessEcon, vol. 33(3), pages 1796-1815.
- Oleg Badunenko & Daniel Henderson & R. Russell, 2013. "Polarization of the worldwide distribution of productivity," Journal of Productivity Analysis, Springer, Springer, vol. 40(2), pages 153-171, October.
- Fishman, Ezra & Kimhi, Ayal, 2013. "Is the Israeli Labor Market Segmented? Revisiting the Mixture Regression Model," Discussion Papers, Hebrew University of Jerusalem, Department of Agricultural Economics and Management 164512, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.