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The Evolution of the Conditional Joint Distribution of Life Expectancy and Per Capita Income Growth

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Author Info

  • Thanasis Stengos

    ()
    (Department of Economics, University of Guelph.)

  • Brennan S. Thompson

    ()
    (Department of Economics, Ryerson University.)

  • Ximing Wu

    ()
    (Department of Agricultural Economics, Texas A&M University.)

Abstract

In this paper we investigate the joint conditional distribution of health (life expectancy) and income growth and its evolution over time. The conditional distributions of these two variables are obtained by applying nonparametric methods to a bivariate nonparametric regression system of equations. Analyzing the distributions of the nonparametric fitted values from these models we find strong evidence of movement over time and strong evidence of first-order stochastic dominance of the earlier years over the later ones. We also find strong evidence of second-order stochastic dominance by non-OECD countries over OECD countries in each period. Our results complement the findings of Wu, Savvides and Stengos (2008) who explored the unconditional behaviour of these joint distributions over time

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Bibliographic Info

Paper provided by University of Guelph, Department of Economics and Finance in its series Working Papers with number 0901.

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Length: 36 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:gue:guelph:2009-1

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Keywords: Income; Health; Global Distribution; Inequality; Poverty;

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References

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  1. Danny Quah, 1992. "Empirical Cross-Section Dynamics in Economic Growth," FMG Discussion Papers dp154, Financial Markets Group.
  2. Li, Qi & Racine, Jeff, 2003. "Nonparametric estimation of distributions with categorical and continuous data," Journal of Multivariate Analysis, Elsevier, vol. 86(2), pages 266-292, August.
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  5. repec:att:wimass:9419 is not listed on IDEAS
  6. Brian McCaig & Adonis Yatchew, 2007. "International welfare comparisons and nonparametric testing of multivariate stochastic dominance," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(5), pages 951-969.
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  10. Maasoumi, Esfandiar & Racine, Jeff, 2006. "Growth And Convergence: A Profile Of Distribution Dynamics And Mobility," Departmental Working Papers 0605, Southern Methodist University, Department of Economics.
  11. Bidani, Benu & Ravallion, Martin, 1995. "Decomposing social indicators using distributional data," Policy Research Working Paper Series 1487, The World Bank.
  12. Quah, Danny T, 1997. " Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," Journal of Economic Growth, Springer, vol. 2(1), pages 27-59, March.
  13. Liu, Zhenjuan & Stengos, Thanasis, 1999. "Non-linearities in Cross-Country Growth Regressions: A Semiparametric Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(5), pages 527-38, Sept.-Oct.
  14. Racine, Jeff & Li, Qi, 2004. "Nonparametric estimation of regression functions with both categorical and continuous data," Journal of Econometrics, Elsevier, vol. 119(1), pages 99-130, March.
  15. Durlauf, Steven N & Johnson, Paul A, 1995. "Multiple Regimes and Cross-Country Growth Behaviour," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 365-84, Oct.-Dec..
  16. Cheng Hsiao & Qi Li & Jeff Racine, 2006. "A Consistent Model Specification Test with Mixed Discrete and Continuous Data," IEPR Working Papers 06.47, Institute of Economic Policy Research (IEPR).
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