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A New Approach For Analysing Income Convergence Across Countries

  • Donal O'Neill
  • Philippe Van Kerm

In this paper we develop a coherent framework that integrates both traditional measures of b-convergence and s-convergence within a study of cross-country income dynamics. To do this we exploit the close links that exist between studies of income convergence and studies analysing the progressivity of the tax system. Our framework offers a simple algebraic decomposition of s-convergence as the combined effect of b-convergence and leapfrogging among countries. We illustrate our approach using data for the period 1960-2000.

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Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2004 with number 144.

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Date of creation: 17 Sep 2004
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Handle: RePEc:ecj:ac2004:144
Contact details of provider: Postal: Office of the Secretary-General, School of Economics and Finance, University of St. Andrews, St. Andrews, Fife, KY16 9AL, UK
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  17. Quah, Danny, 1993. "Galton's Fallacy and Tests of the Convergence Hypothesis," CEPR Discussion Papers 820, C.E.P.R. Discussion Papers.
  18. Duclos, Jean-Yves & Jalbert, Vincent & Araar, Abdelkrim, 2003. "Classical Horizontal Inequity and Reranking: an Integrating Approach," Cahiers de recherche 0306, CIRPEE.
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  26. Yoshiaki Sugimoto, 2003. "Inequality, Growth, and Overtaking," Data 0304001, EconWPA.
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