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A new approach for analysing income convergence across countries

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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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Publisher 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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Related research
Keywords: convergence; redistribution ; progressivity;

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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

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