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Divergence, convergence, and the history-augmented Solow model

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  • Kufenko, Vadim
  • Prettner, Klaus
  • Geloso, Vincent

Abstract

We test the history-augmented Solow model with respect to its predictions on the patterns of divergence and convergence between the nowadays industrialized countries of the OECD. We show that the dispersion of incomes increased after the Industrial Revolution, peaked during the Second World War, and decreased afterwards. This pattern is fully consistent with the transitional dynamics implied by the history-augmented Solow model.

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  • Kufenko, Vadim & Prettner, Klaus & Geloso, Vincent, 2017. "Divergence, convergence, and the history-augmented Solow model," Hohenheim Discussion Papers in Business, Economics and Social Sciences 11-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    • Handle: RePEc:zbw:hohdps:112017
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    Cited by:

    1. Kutuk, Yasin, 2022. "Inequality convergence: A world-systems theory approach," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 150-165.
    2. Corriveau, Louis, 2021. "Technologies, Institutions, development and growth," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 159-164.
    3. Vadim Kufenko & Vincent Geloso & Klaus Prettner, 2018. "Does size matter? Implications of household size for economic growth and convergence," Scottish Journal of Political Economy, Scottish Economic Society, vol. 65(4), pages 437-443, September.
    4. Zhang, Junlai & Prettner, Klaus & Chen, Simiao & Bloom, David E., 2023. "Beyond GDP: Using healthy lifetime income to trace well-being over time with estimates for 193 countries," Social Science & Medicine, Elsevier, vol. 320(C).

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    More about this item

    Keywords

    history-augmented Solow model; divergence; convergence; cross-country inequality;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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