A New Approach for Analysing Income Convergence across Countries

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A New Approach for Analysing Income Convergence across Countries

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O'Neill, D. () (Economics, Finance and Accounting Dept., NUI Maynooth, Maynooth, Co. Kildare,Ireland,)
Van Kerm P. () (CEPS/INSTEAD G.-D Luxembourg)

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Abstract

In this paper we develop a coherent framework that integrates both traditional measures of â-convergence and ó-convergence within a study of cross-country income dynamics. To do this we exploit the close links that exist between studies of income mobility and studies analysing the progressivity of the tax system. We also develop a welfare interpretation for the concept of â-convergence, which distinguishes it from the more general form of ó-convergence and which also suggests that the â-process may be worthy of independent study. We illustrate our approach using data for the period 1960-2000.

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Paper provided by Department of Economics, Finance and Accounting, National University of Ireland - Maynooth in its series Economics, Finance and Accounting Department Working Paper Series with number n1261003.

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Length: 31 pages
Date of creation: Oct 2003
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Handle: RePEc:may:mayecw:n1261003

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Postal: Maynooth, Co. Kildare
Phone: 353-1-7083728
Fax: 353-1-7083934
Web page: http://www.may.ie/academic/economics/
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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, Donal & Van Kerm, Philippe, 2004. "A new approach for analysing income convergence across countries," IRISS Working Paper Series 2004-03, IRISS at CEPS/INSTEAD. [Downloadable!]

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