Why Should We Analyse Convergence Using the Distribution Dynamics Approach?

Titolo Rivista SCIENZE REGIONALI
Autori/Curatori Stefano Magrini
Anno di pubblicazione 2009 Fascicolo 2009/1
Lingua Inglese Numero pagine 30 P. 5-34 Dimensione file 453 KB
DOI 10.3280/SCRE2009-001001
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Why Should We Analyse Convergence Using the Distribution Dynamics Approach? - Paper first received, September 2007; in final form, September 2008 The convergence hypothesis has stimulated heated debate within the growth literature. The present paper compares the two most commonly adopted empirical approaches the regression approach and the distribution dynamics approach and argues that the former fails to uncover important features of the dynamics that might characterise the convergence process. In particular, the empirical section highlights the interpretational advantages stemming from the use of stochastic kernels to capture the evolution of the entire cross-sectional income distribution. Incidentally, comparison between the results obtained from alternative sets of Italian regions suggests that the use of administrative regions may lead to ambiguous results. Keywords: Distribution Dynamics, Stochastic Kernel, -convergence, Regions JEL classification: C14; C20; O40; O52; R10

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Stefano Magrini, Why Should We Analyse Convergence Using the Distribution Dynamics Approach? in "SCIENZE REGIONALI " 1/2009, pp 5-34, DOI: 10.3280/SCRE2009-001001