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Earnings biases and convergence in the UK: a county level analysis

  • Paul Bishop
  • Peter Gripaios
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    Cameron and Muellbauer (Economic Journal, 110, pp. 412-19, 2000) have convincingly argued that problems in the methods used to compile UK Regional Accounts data have resulted in a misleading picture of regional differentials and σ convergence. This short paper extends their analysis to a wider range of measures of convergence and adopts a more disaggregated approach by analysing data at the county level. The results provide general support for their hypothesis and indicate that different measures of income can result in different conclusions concerning convergence. Thus, it is essential that future studies of convergence investigate the implications of using different measures of income where possible, rather than relying upon a single data source.

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    Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

    Volume (Year): 11 (2004)
    Issue (Month): 1 ()
    Pages: 33-37

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    Handle: RePEc:taf:apeclt:v:11:y:2004:i:1:p:33-37
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    1. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
    2. Gerry Boyle; & Tom McCarthy, 1997. "Simple Measures of Convergence in Per Capita GDP: A Note on Some Further International Evidence," Economics, Finance and Accounting Department Working Paper Series n751197, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
    3. Damien NEVEN & Claudine GOUYETTE, 1993. "Regional Convergence in the European Comunity," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9311, Université de Lausanne, Faculté des HEC, DEEP.
    4. Bernard, Andrew B & Durlauf, Steven N, 1995. "Convergence in International Output," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(2), pages 97-108, April-Jun.
    5. Boyle, G E & McCarthy, T G, 1997. "A Simple Measure of Beta-Convergence," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 257-64, May.
    6. Helmut Hofer & Andreas Worgotter, 1997. "Regional Per Capita Income Convergence in Austria," Regional Studies, Taylor & Francis Journals, vol. 31(1), pages 1-12.
    7. G. E. Boyle & T. G. McCARTHY, 1999. "Simple measures of convergence in per capita GDP: a note on some further international evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 6(6), pages 343-347.
    8. Peter Gripaios & Ben Gripaios & Sarah Keast & Nick Wiseman, 1999. "Differences in household income per head over the UK trade cycle; a comment," Applied Economics Letters, Taylor & Francis Journals, vol. 6(8), pages 471-476.
    9. Peter Gripaios & Paul Bishop & Sarah Keast, 2000. "Differences in GDP per head in GB counties: some suggested explanations," Applied Economics, Taylor & Francis Journals, vol. 32(9), pages 1161-1167.
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