TY - JOUR
T1 - Sources of persistence in cross-country income disparities
T2 - A structural analysis
AU - Yau, Ruey
AU - Hueng, C. James
N1 - Funding Information:
*We wish to thank Steven Durlauf, Rodolfo Manuelli, John Shea, Kenneth West, two anonymous referees, and seminar participants at the University of Alabama and the University of Wisconsin for helpful comments. Support from the Chiang Ching-Kuo Foundation and the University of Alabama Summer Research Award Program I is gratefully acknowledged.
PY - 2000
Y1 - 2000
N2 - This study investigates the sources of cross-country income disparities in time series dynamics for both aggregate and sectoral levels. We first introduce a new approach for testing income disparity persistence. The method proposed by Pesaran, Pierse and Lee (1993) is then used to decompose the persistence into components due to various shocks. By using the quarterly data of the U.S., U.K., and Canada from 1961:i to 1996:iv, we find the persistence of aggregate income disparities is caused by the divergence in the non-agricultural sectors. In addition, macroeconomic shocks are quantitatively not as important as sector-specific shocks in driving the persistence.
AB - This study investigates the sources of cross-country income disparities in time series dynamics for both aggregate and sectoral levels. We first introduce a new approach for testing income disparity persistence. The method proposed by Pesaran, Pierse and Lee (1993) is then used to decompose the persistence into components due to various shocks. By using the quarterly data of the U.S., U.K., and Canada from 1961:i to 1996:iv, we find the persistence of aggregate income disparities is caused by the divergence in the non-agricultural sectors. In addition, macroeconomic shocks are quantitatively not as important as sector-specific shocks in driving the persistence.
UR - http://www.scopus.com/inward/record.url?scp=0034360928&partnerID=8YFLogxK
U2 - 10.1016/S0164-0704(00)00146-4
DO - 10.1016/S0164-0704(00)00146-4
M3 - 期刊論文
AN - SCOPUS:0034360928
SN - 0164-0704
VL - 22
SP - 611
EP - 630
JO - Journal of Macroeconomics
JF - Journal of Macroeconomics
IS - 4
ER -