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A New Approach For Analysing Income Convergence Across Countries

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  • Donal O'Neill
  • Philippe Van Kerm

Abstract

In this paper we develop a coherent framework that integrates both traditional measures of b-convergence and s-convergence within a study of cross-country income dynamics. To do this we exploit the close links that exist between studies of income convergence and studies analysing the progressivity of the tax system. Our framework offers a simple algebraic decomposition of s-convergence as the combined effect of b-convergence and leapfrogging among countries. We illustrate our approach using data for the period 1960-2000.
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  • Donal O'Neill & Philippe Van Kerm, 2004. "A New Approach For Analysing Income Convergence Across Countries," Royal Economic Society Annual Conference 2004 144, Royal Economic Society.
    • Handle: RePEc:ecj:ac2004:144
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    1. Krasnopjorovs, Olegs, 2013. "Latvijas ekonomikas izaugsmi noteicošie faktori [Factors of Economic Growth in Latvia]," MPRA Paper 47550, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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