Myths about Beta-Convergence

Konstantin Gluschenko

No wp1040, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: A popular methodology of studying spatial income inequality is analysis of beta-convergence (i.e. an inverse relationship between current income per capita and its initial level). Its widespread use is based on a belief that the economic growth theory predicts income convergence among economies (countries or regions within a country), and that beta-convergence suggests decreasing income inequality. This article demonstrates that these are nothing but myths; hence, analyzing of betaconvergence cannot serve as an adequate methodology for studying and predicting the evolution of spatial income inequality.

Keywords: spatial income inequality; convergence; economic growth (search for similar items in EconPapers)
JEL-codes: D63 O11 O40 (search for similar items in EconPapers)
Pages: pages
Date: 2012-11-01
New Economics Papers: this item is included in nep-geo and nep-pbe
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Citations: View citations in EconPapers (6)

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Journal Article: Myths about Beta-Convergence (2012)
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