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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 â-convergence and ó-convergence within a study of cross-country income dynamics. To do this we exploit the close links that exist between studies of income mobility and studies analysing the progressivity of the tax system. We also develop a welfare interpretation for the concept of â-convergence, which distinguishes it from the more general form of ó-convergence and which also suggests that the â-process may be worthy of independent study. 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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  20. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(02), pages 385-406, June.
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