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A New Approach for Analysing Income Convergence across Countries

  • O'Neill, D.


    (Economics Dept., NUI Maynooth, Maynooth, Co. Kildare,Ireland,)

  • Van Kerm P.


    (CEPS/INSTEAD G.-D Luxembourg)

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 Department of Economics, Finance and Accounting, National University of Ireland - Maynooth in its series Economics, Finance and Accounting Department Working Paper Series with number n1261003.

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Length: 31 pages
Date of creation: Oct 2003
Date of revision:
Handle: RePEc:may:mayecw:n1261003
Contact details of provider: Postal: Maynooth, Co. Kildare
Phone: 353-1-7083728
Fax: 353-1-7083934
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  18. Tamura, Robert, 1992. "Efficient equilibrium convergence: Heterogeneity and growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 355-376, December.
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