Stiglitz (Econometrica 37 (1969) 382) shows income convergence in a many-agent Solow growth model with integrated capital markets (ICM). The many-agent Ramsey model (MARM) without ICM also gives income convergence. With a MARM, equal discount rates, and ICM, convergence of incomes (as opposed to product per capita) cannot occur. These results depend upon fixed saving propensities (Stiglitz) or ...

This paper analyzes the process of real economic convergence in the New Member States (NMS) bein g formerly centrally planned economies, using nonparametric methods instead of conventional parametric measurement tools like beta and sigma models. This methodological framework allows the examining of the relative income distribution in different periods of time, the number of modes of the density...

This paper examines the evidence for regional convergence or catch-up in levels and growth rates of per capita income among the 16 major states in India between 1960 and 1992. The results — estimated using OLS, the within-group LSDV estimator, Re-Weighted Least Squares, and Least Trimmed Squares — establish that unconditional convergence in growth rates does not obtain, but that there is clear ...

20 Years of German Unification: Evidence on Income Convergence and Heterogeneity We analyse the convergence and heterogeneity of living standards between East and West Germany since unification. Based on data from the German Socio-Economic Panel (GSOEP), we compare total individual income of permanent adult residents, including retirees and the unemployed, of East and West Germany over the fift...