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Three (marginal?) questions regarding convergence

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  • Francisco J. Goerlich
  • Matilde Mas

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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Bibliographic 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

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  1. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
  2. Quah, Danny T, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," Economic Journal, Royal Economic Society, vol. 106(437), pages 1045-55, July.
  3. Persson, T. & Tabellini, G., 1993. "Is Inequality Harmful for Growth," Papers 537, Stockholm - International Economic Studies.
  4. Charles I. Jones, . "On the Evolution of the World Income Distribution," Working Papers 97009, Stanford University, Department of Economics.
  5. Sen, Amartya, 1974. "Informational bases of alternative welfare approaches : Aggregation and income distribution," Journal of Public Economics, Elsevier, vol. 3(4), pages 387-403, November.
  6. R. Paci, 1996. "More similar and less equal. Economic growth in the European regions," Working Paper CRENoS 199609, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  7. Quah, Danny T., 1996. "Regional convergence clusters across Europe," European Economic Review, Elsevier, vol. 40(3-5), pages 951-958, April.
  8. Deininger, K & Squire, L, 1996. "Measuring Income Inequality : A New Data-Base," Papers 537, Harvard - Institute for International Development.
  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.
  10. Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers 1286, C.E.P.R. Discussion Papers.
  11. Enrique Lopez Bazo & Esther Vaya Valcarce & Antonio Jose Mora & Jordi Surinach Caralt, 1997. "Regional economic dynamics and convergence in the european union," Working Papers in Economics 12, Universitat de Barcelona. Espai de Recerca en Economia.
  12. Francisco J. Goerlich Gisbert, 2003. "Weighted samples, kernel density estimators and convergence," Empirical Economics, Springer, vol. 28(2), pages 335-351, 04.
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Cited by:
  1. Pei-Chien Lin & Ho-Chuan Huang, 2012. "Convergence in income inequality? evidence from panel unit root tests with structural breaks," Empirical Economics, Springer, vol. 43(1), pages 153-174, August.
  2. Shatakshee Dhongde & Xing Miao, 2013. "Cross-Country Convergence in Income Inequality," Working Papers 290, ECINEQ, Society for the Study of Economic Inequality.
  3. Francisco José Goerlich Gisbert & Antonio Villar Notario, 2009. "Desigualdad y bienestar en España y sus comunidades autónomas (1973-2003)," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 17(2), pages 119-152, Autumn.
  4. Lin, Pei-Chien & Huang, Ho-Chuan (River), 2012. "Inequality convergence revisited: Evidence from stationarity panel tests with breaks and cross correlation," Economic Modelling, Elsevier, vol. 29(2), pages 316-325.
  5. Nissan, Edward & Carter, George, 2010. "States' Nonagricultural Employment at the 3-Digit North American Industry Classification System (NAICS) Level," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(1).
  6. Pei-Chien Lin & Ho-Chuan Huang, 2011. "Inequality convergence in a panel of states," Journal of Economic Inequality, Springer, vol. 9(2), pages 195-206, June.

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