A new approach for analysing income convergence across countries

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A new approach for analysing income convergence across countries

Author Info

O'Neill, Donal (Economics Dept., NUI Maynooth, Ireland)
Van Kerm, Philippe (CEPS/INSTEAD, G.-D. Luxembourg)

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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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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
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Handle: RePEc:irs:iriswp:2004-03

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Paper
- 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. [Downloadable!]
- O'Neill, D. & Van Kerm P., 2003. "A New Approach for Analysing Income Convergence across Countries," Economics, Finance and Accounting Department Working Paper Series n1261003, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth. [Downloadable!]

Find related papers by JEL classification:
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

This paper has been announced in the following NEP Reports:

NEP-ALL-2004-03-07 (All new papers)
NEP-DEV-2004-03-07 (Development)
NEP-ETS-2004-03-07 (Econometric Time Series)
NEP-MAC-2004-03-07 (Macroeconomics)

References listed on IDEAS
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