Galton's fallacy and economic convergence

Friedman (1992) argues that regressing cross-country income changes on their final levels can be informative about σ-convergence (the tendency for the dispersion of income levels to narrow) whereas a similar regression on initial levels of income cannot be. In this note we show that Bliss's (19...

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Bibliographic Details
Published in:Oxford economic papers 2000-04, Vol.52 (2), p.415-419
Main Authors: Cannon, ES, Duck, NW
Format: Article
Language:English
Subjects:
Convergence
Countries
Criticism
Economic analysis
Economic models
Economic theory
Economic value
Income
Income estimates
Income level
Inference
Manycountries
Null hypothesis
Regression analysis
Statistical discrepancies
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Summary:Friedman (1992) argues that regressing cross-country income changes on their final levels can be informative about σ-convergence (the tendency for the dispersion of income levels to narrow) whereas a similar regression on initial levels of income cannot be. In this note we show that Bliss's (1999) dismissal of this argument is in error.
ISSN:0030-7653
1464-3812
1464-3812
DOI:10.1093/oep/52.2.415