Income Convergence Clubs for Brazilian Municipalities: a Non-Parametric Analysis

Márcio Laurini and Eduardo Andrade

No 51, Econometric Society 2004 Latin American Meetings from Econometric Society

Abstract: In this article we analyze the evolution of relative per capita income distribution of Brazilian municipalities over the period 1970-1996. Our analyses are based on nonparametric methodologies and do not assume probability distributions or functional forms for the data. We have carried out two convergence tests - a test for Sigma convergence based on the Bootstrap principle and a Beta convergence test using Smoothing Splines for the growth regressions. The results obtained demonstrate the need to model the dynamics of income for Brazilian municipalities as a process of convergence clubs, using the methodology of transition matrices and stochastic kernels. The results show the formation of two convergence clubs, a low income club formed by the municipalities of the North and Northeast regions, and another high income club formed by the municipalities of the Center-West, Southeast and South regions. The formation of convergence clubs is confirmed by a bootstrap test for multimodality

Keywords: Convergence Clubs; Non-Parametric Methods; Distribution Dynamics (search for similar items in EconPapers)
JEL-codes: C14 O15 O18 R11 (search for similar items in EconPapers)
Date: 2004-08-11
New Economics Papers: this item is included in nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.ibmec.br/sub/sp/download.php?recid=2718 main text (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecm:latm04:51

Access Statistics for this paper

More papers in Econometric Society 2004 Latin American Meetings from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().