Myths about Beta-Convergence
AbstractA popular methodology of studying spatial income inequality is analysis of beta-convergence (i.e. an inverse relationship between current income per capita and its initial level). Its widespread use is based on a belief that the economic growth theory predicts income convergence among economies (countries or regions within a country), and that beta-convergence suggests decreasing income inequality. This article demonstrates that these are nothing but myths; hence, analyzing of betaconvergence cannot serve as an adequate methodology for studying and predicting the evolution of spatial income inequality.
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Date of creation: 01 Nov 2012
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spatial income inequality; convergence; economic growth;
Other versions of this item:
- Gluschenko, K., 2012. "Myths about Beta-Convergence," Journal of the New Economic Association, New Economic Association, New Economic Association, vol. 16(4), pages 26-44.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-02-03 (All new papers)
- NEP-GEO-2013-02-03 (Economic Geography)
- NEP-PBE-2013-02-03 (Public Economics)
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