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Convergence Equations and Income Dynamics: The Sources of OECD Convergence, 1970-1995

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  • de la Fuente, A.

Abstract

This paper illustrates how convergence equations can be used to analyze the dynamics of the income distribution, thus overcoming some of the limitations of this methodology noted by Quah. Using panel data for a sample of OECD countries, we estimates a growth equation which relates the growth rate of income per capita to the rates of accumulation of physical, human and technological capital, the share of government expenditures in GDP and the behaviour of the labour market, while allowing for the main convergence mechanisms identified in the literature.

Suggested Citation

  • de la Fuente, A., 1998. "Convergence Equations and Income Dynamics: The Sources of OECD Convergence, 1970-1995," UFAE and IAE Working Papers 407.98, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    • Handle: RePEc:aub:autbar:407.98
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    Keywords

    ECONOMIC GROWTH ; INCOME;

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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