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A new approach for analysing income convergence across countries

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  • O'Neill, Donal

    (Economics Dept., NUI Maynooth, Ireland)

  • Van Kerm, Philippe

    (CEPS/INSTEAD, G.-D. Luxembourg)

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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Bibliographic Info

Paper provided by IRISS at CEPS/INSTEAD in its series IRISS Working Paper Series with number 2004-03.

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Length: 26 pages
Date of creation: Feb 2004
Date of revision:
Publication status: Published in The Manchester School, 76 (1), January 2008, 1–20
Handle: RePEc:irs:iriswp:2004-03

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Keywords: convergence ; redistribution ; progressivity;

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  1. Tamura, Robert, 1992. "Efficient equilibrium convergence: Heterogeneity and growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 355-376, December.
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  8. Benabou, R. & Ok, E.A., 2000. "Mobility as Progressivity: Ranking Income Processes According to Equality of Opportunity," Papers 211, Princeton, Woodrow Wilson School - Public and International Affairs.
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Cited by:
  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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