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A evolução das disparidades regionais no Rio Grande do Sul: uma aplicação de matrizes de Markov Evolution of regional income disparities in the Brazilian state of Rio Grande do Sul - application of Markov model]

Author

Listed:
  • Valter José Stülp

    (PUC-RS)

  • Adelar Fochezatto

    (PUC-RS)

Abstract

This paper analyses the regional convergence of the per capita income in the State of Rio Grande do Sul. A distributional function of the per capita income is estimated for the years of 1985 and 1999. Five income classes are defined. Based on these two functions, a Markov transitional probability matrix is estimated. The results indicate a process of income convergence toward the state average. In the long run, the five income classes would be reduced to three, with the disappearance of the lowest and the highest income classes.

Suggested Citation

  • Valter José Stülp & Adelar Fochezatto, 2004. "A evolução das disparidades regionais no Rio Grande do Sul: uma aplicação de matrizes de Markov Evolution of regional income disparities in the Brazilian state of Rio Grande do Sul - application of Ma," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 14(1), pages 39-66, January-A.
    • Handle: RePEc:nov:artigo:v:14:y:2004:i:1:p:39-66
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    More about this item

    Keywords

    regional economy; income convergence; Markov model; the economy of Rio Grande do Sul;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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