Abstract
We estimate the empirical bimodal cross-section distribution of real Gross Domestic Product per capita of 120 countries over the period 1960–1989 by a mixture of a Weibull and a truncated normal density. The components of the mixture represent a group of poor and a group of rich countries, while the mixing proportion describes the distribution over poor and rich. This enables us to analyse the development of the mean and variance of both groups separately and the switches of countries between the two groups over time. Empirical evidence indicates that the means of the two groups are diverging in terms of levels, but that the growth rates of the means of the two groups over the period 1960–1989 are the same.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Abramowitz, M. (1986) Catching Up, Forging Ahead, and Falling Behind, Journal of Economic History, 46, 385-406.
Barro, R.J. (1991) Economic Growth in a Cross Section of Countries, Quarterly Journal of Economics, 106, 407-443.
Barro, R.J. and X. Sala-i-Martin (1992) Convergence, Journal of Political Economy, 100, 223-251.
Baumol, W.J. (1986) Productivity Growth, Convergence, and Welfare: What the Long-Run Data Show, American Economic Review, 76, 1072-1085.
Bianchi, M. (1997) Testing for Convergence: Evidence from Nonparametric Multi-modality Tests, Journal of Applied Econometrics, 12, 393-409.
Canova, F. and A. Marcet (1995) The Poor Stay Poor: Nonconvergence Across Countries and Regions, cEPR Discussion Paper Series, No. 1265.
Desdoigts, A. (1994) Changes in the World Income Distribution: A Non-Parametric Approach to Challenge the Neo-Classical Convergence Argument, Working Pa-per, Universit é Paris Dauphine.
Durlauf, S.N. and P. Johnson (1995) Multiple Regimes and Cross-Country Growth Behaviour, Journal of Applied Econometrics, 10, 365-384.
Everitt, B. S. and D. J. Hand (1981) Finite Mixture Distributions, Monographs on Applied Probability and Statistics, Chapman and Hall, London.
Friedman, M. (1992) Do Old Fallacies Ever Die?, Journal of Economic Literature, 30, 2129-2132.
Geweke, J., R.C. Marshall and G.A. Zarkin (1986) Mobility Indices in Continuous Time Markov Chains, Econometrica, 54, 1407-1423.
Hamilton, J.D. (1991) A Quasi-Bayesian Approach to Estimating Parameters of Mixtures of Normal Distributions, Journal of Business and Economic Statistics, 9, 27-39.
Jones, C.I.(1997) Convergence Revisited, Journal of Economic Growth, 2, 131-153.
Kiefer, N.M. (1978) Discrete Parameter Variation: Efficient Estimation of a Switching Regression Model, Econometrica, 46, 427-434.
Levine, R. and D. Renelt (1991) Cross Country Studies of Growth and Policy: Some Methodological, Conceptual, and Statistical Problems, World Bank Working Paper Series, No. 608.
Levine, R. and D. Renelt (1992) A Sensitivity Analysis of Cross Country Regressions, American Economic Review, 82, 942-963.
Mankiw, N.G., D. Romer and D.N. Weil (1992) A Contribution to the Empirics of Economic Growth, Quarterly Journal of Economics, 429, 407-437.
Parente, S.L. and E.C. Prescott (1993) Changes in the Wealth of Nations, Quarterly Review, Federal Reserve Bank of Minneapolis, Spring 1993, 3-16.
Quah, D. (1993a) Galton’s Fallacy and Tests of the Convergence Hypothesis, Scandinavian Journal of Economics, 95, 427-443.
Quah, D. (1993b) Empirical Cross-section Dynamics in Economic Growth, European Economic Review, 37, 426-434.
Quah, D. (1996a) Convergence Empirics Across Economies with (some) Capital Mobility, Journal of Economic Growth, 1, 95-124.
Quah, D. (1996b) Empirics for Economic Growth and Convergence, European Economic Review, 40, 1353-1376.
Sala-i-Martin, X. (1994) Cross-sectional Regression and the Empirics of Economic Growth, European Economic Review, 38, 739-747.
Shorrocks, A.F. (1978) The Measurement of Mobility, Econometrica, 46, 1013-1024.
Summers, R. and A. Heston (1991) The Penn World Table (mark 5): An Expanded Set of International Comparisons, 1950-1988, Quarterly Journal of Economics, 106, 327-368.
Titterington, D.M., A.F.M. Smith and U.E. Makov (1985) Statistical Analysis of Finite Mixture Distributions, Wiley and Sons, New York.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2008 Springer Science+Business Media, LLC
About this chapter
Cite this chapter
Paap, R., van Dijk, H.K. (2008). Distribution and Mobility of Wealth of Nations. In: Chotikapanich, D. (eds) Modeling Income Distributions and Lorenz Curves. Economic Studies in Equality, Social Exclusion and Well-Being, vol 5. Springer, New York, NY. https://doi.org/10.1007/978-0-387-72796-7_5
Download citation
DOI: https://doi.org/10.1007/978-0-387-72796-7_5
Publisher Name: Springer, New York, NY
Print ISBN: 978-0-387-72756-1
Online ISBN: 978-0-387-72796-7
eBook Packages: Business and EconomicsEconomics and Finance (R0)