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AN INTEGRATED FRAMEWORK FOR ANALYSING INCOME CONVERGENCE *
Author(s) -
O'NEILL DONAL,
VAN KERM PHILIPPE
Publication year - 2008
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/j.1467-9957.2007.01047.x
Subject(s) - leapfrogging , convergence (economics) , economics , ranking (information retrieval) , measure (data warehouse) , econometrics , exploit , process (computing) , income distribution , inequality , economic inequality , microeconomics , computer science , mathematics , macroeconomics , economic growth , mathematical analysis , computer security , database , operating system , machine learning
We develop an integrated framework for studying income convergence that incorporates traditional measures of β‐convergence and σ‐convergence. These concepts are formally linked by a measure of re‐ranking (or leapfrogging). Our proposed measure of β‐convergence allows for nonlinearities in the growth process and explicitly identifies the contribution of faster growth among low‐income regions to reductions in overall inequality. To develop our framework we exploit the close links that exist between studies of income convergence and studies that examine the progressivity of the tax system. We illustrate our approach by examining both cross‐country and regional income dynamics.