Volume 13 (2013)
Volume 12 (2012)
Volume 11 (2011)
Volume 10 (2010)
Volume 9 (2009)
Volume 8 (2008)
Volume 7 (2007)
Volume 6 (2006)
Volume 5 (2005)
Volume 4 (2004)
Volume 3 (2003)
Volume 2 (2002)
Most Downloaded Articles
- Comparing Wealth Effects: The Stock Market versus the Housing Market by Case, Karl E./ Quigley, John M. and Shiller, Robert J.
- Who Gets the Credit? And Does It Matter? Household vs. Firm Lending Across Countries by Beck, Thorsten/ Büyükkarabacak, Berrak/ Rioja, Felix K. and Valev, Neven T.
- Monetary and Macroprudential Policy Rules in a Model with House Price Booms by Kannan, Prakash/ Rabanal, Pau and Scott, Alasdair M.
- Is Discretionary Fiscal Policy in Japan Effective? by Rafiq, Sohrab
- In search of lost time: the neoclassical synthesis by De Vroey, Michel and Duarte, Pedro Garcia
Convergence Across Italian Regions and the Role of Technological Catch-Up
1Università Bocconi and IGIER, email@example.com
Citation Information: Topics in Macroeconomics. Volume 6, Issue 1, Pages –, ISSN (Online) 1534-5998, DOI: 10.2202/1534-5998.1405, August 2006
- Published Online:
This paper suggests that the main (and possibly unique) source of beta- and sigma-convergence in GDP per worker (i.e. labor productivity) across Italian regions over the 1980-2004 period is the change in technical and allocative efficiency, i.e. convergence in relative TFP levels. To obtain this result, I construct an approximation of the production frontier at different points in time using Data Envelope Analysis (DEA), and measure efficiency as the output-based distance from the frontier. This method is entirely data-driven, and does not require the specification of any particular functional form for technology. Changes in GDP per worker can be decomposed into changes in relative efficiency, changes due to overall technological progress, and changes due to capital deepening. My results suggest that: (i) differences in relative TFP are quantitatively important; (ii) while technological progress and capital deepening are the main, and equally important, forces behind the rightward shift in the distribution of GDP per worker, convergence in relative TFP is the main determinant of the change in its shape.