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Three (marginal?) questions regarding convergence

  • Francisco J. Goerlich
  • Matilde Mas

This paper focuses on three (marginal?) questions surrounding the analysis of economic convergence and uses Spanish provinces as a means of illustration. The three questions in hand are as follows. Given that the geographical units of analysis are usually quite different in economic size, is the weighting of economic units relevant in convergence analysis? The average per capita income of a given region, or country, is the first moment in the distribution of income, but what about the second moment, inequality, have we converged in inequality? An aggregate welfare index must take into account, at least, the evolution of the first two moments of the distribution of income, and so does the adjustment for inequality make important differences in the evolution of average per capita income? The answer to the first two questions is yes, but to the third it is clearly no.

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Article provided by Emerald Group Publishing in its journal Journal of Economic Studies.

Volume (Year): 31 (2004)
Issue (Month): 1 (January)
Pages: 25-38

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Handle: RePEc:eme:jespps:v:31:y:2004:i:1:p:25-38
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  1. Charles I. Jones, . "On the Evolution of the World Income Distribution," Working Papers 97009, Stanford University, Department of Economics.
  2. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
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  6. Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers 1286, C.E.P.R. Discussion Papers.
  7. Quah, Danny T, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," Economic Journal, Royal Economic Society, vol. 106(437), pages 1045-55, July.
  8. Deininger, K & Squire, L, 1996. "Measuring Income Inequality : A New Data-Base," Papers 537, Harvard - Institute for International Development.
  9. Sen, Amartya, 1974. "Informational bases of alternative welfare approaches : Aggregation and income distribution," Journal of Public Economics, Elsevier, vol. 3(4), pages 387-403, November.
  10. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
  11. Juan R. Cuadrado-Roura & Begoña García-Greciano & José Luis Raymond, 1999. "Regional Convergence in Productivity and Productive Structure: The Spanish Case," International Regional Science Review, , vol. 22(1), pages 35-53, April.
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  13. Francisco J. Goerlich Gisbert, 2003. "Weighted samples, kernel density estimators and convergence," Empirical Economics, Springer, vol. 28(2), pages 335-351, 04.
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