On the Determinants of Distribution Dynamics
Davide Fiaschi (),
Andrea Mario Lavezzi and
Angela Parenti ()
Discussion Papers from Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy
In this paper we propose a novel approach to identify the impact of growth determinants on the distribution dynamics of productivity. Our approach integrates counterfactual analysis with the estimation of stochastic kernels. The counterfactuals are constructed from a semiparametric growth regression, in which the cross-section heterogeneity in the growth determinants is removed. The methodology also allows us to test for potential distributional effects in the residuals. We illustrate the usefulness of the proposed methodology by an application to a cross-section of countries, which highlights the significant impact on inequality and polarization in the world productivity distribution of growth determinants from an augmented Solow model.
Keywords: Convergence; inequality; polarization; distribution dynamics; counterfactual analysis. (search for similar items in EconPapers)
JEL-codes: C14 C21 O40 O50 (search for similar items in EconPapers)
Note: ISSN 2039-1854
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Persistent link: https://EconPapers.repec.org/RePEc:pie:dsedps:2013/165
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