Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs
This paper studies cross-country patterns of economic growth from the viewpoint of income distribution dynamics. Such a perspective raises new empirical and theoretical issues in growth analysis: the profound empirical regularity is an ‘emerging twin peaks’ in the cross-sectional distribution, not simple patterns of convergence or divergence. The theoretical problems raised concern interaction patterns among sub-groups of economies, not only problems of a single economy’s accumulating factor inputs and technology for growth.
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