The paper uses a model of growth and imperfect capital mobility across multiple economies to characterize the dynamics of (cross-country) income distributions. This allows convenient study of the convergence hypothesis, ad reveals, where appropriate, polarization and clumping within subgroups. The data show little cross-country convergence; instead, the important features are persistence, immobility, and polarization, exemplified by 'convergence club' or 'twin peaks' dynamics.

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August 1995     Paper Number CEPDP0257

Download PDF - Convergence Empirics across Economies with (Some) Capital Mobility