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Three (marginal?) questions regarding convergence

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Author Info
Francisco J. Goerlich
Matilde Mas

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Abstract

This paper focuses on three (marginal?) questions surrounding the analysis of economic convergence and uses Spanish provinces as a means of illustration. The three questions in hand are as follows. Given that the geographical units of analysis are usually quite different in economic size, is the weighting of economic units relevant in convergence analysis? The average per capita income of a given region, or country, is the first moment in the distribution of income, but what about the second moment, inequality, have we converged in inequality? An aggregate welfare index must take into account, at least, the evolution of the first two moments of the distribution of income, and so does the adjustment for inequality make important differences in the evolution of average per capita income? The answer to the first two questions is yes, but to the third it is clearly no.

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Publisher Info
Article provided by Emerald Group Publishing in its journal Journal of Economic Studies.

Volume (Year): 31 (2004)
Issue (Month): 1 (January)
Pages: 25-38
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Handle: RePEc:eme:jespps:v:31:y:2004:i:1:p:25-38

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Related research
Keywords: Distribution; Income; Regional development; Spain;

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References listed on IDEAS
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  1. Charles I. Jones, . "On the Evolution of the World Income Distribution," Working Papers 97009, Stanford University, Department of Economics. [Downloadable!]
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  2. Deininger, K & Squire, L, 1996. "Measuring Income Inequality : A New Data-Base," Papers 537, Harvard - Institute for International Development.
  3. Raffaele Paci, 1997. "More similar and less equal: Economic growth in the European regions," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(4), pages 609-634, December. [Downloadable!] (restricted)
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  4. Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers 1286, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE. [Downloadable!]
  6. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June. [Downloadable!] (restricted)
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  7. Quah, Danny, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEPR Discussion Papers 1355, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  8. Quah, Danny T., 1996. "Regional convergence clusters across Europe," European Economic Review, Elsevier, vol. 40(3-5), pages 951-958, April. [Downloadable!] (restricted)
  9. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May. [Downloadable!] (restricted)
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