In this paper we propose a novel approach to identify the impact of growth determinants on the distribution dynamics of productivity. Our approach integrates counterfactual analysis with the estimation of stochastic kernels. The counterfactuals are constructed from a semiparametric growth regression, in which the cross-section heterogeneity in the growth determinants is removed. The methodology also allows us to test for potential distributional effects in the residuals. We illustrate the usefulness of the proposed methodology by an application to a cross-section of countries, which highlights the significant impact on inequality and polarization in the world productivity distribution of growth determinants from an augmented Solow model.

On the Determinants of Distribution Dynamics

FIASCHI, DAVIDE;LAVEZZI, ANDREA MARIO;PARENTI, ANGELA
2013-01-01

Abstract

In this paper we propose a novel approach to identify the impact of growth determinants on the distribution dynamics of productivity. Our approach integrates counterfactual analysis with the estimation of stochastic kernels. The counterfactuals are constructed from a semiparametric growth regression, in which the cross-section heterogeneity in the growth determinants is removed. The methodology also allows us to test for potential distributional effects in the residuals. We illustrate the usefulness of the proposed methodology by an application to a cross-section of countries, which highlights the significant impact on inequality and polarization in the world productivity distribution of growth determinants from an augmented Solow model.
2013
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11568/841959
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact