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Clustering and polarization in the distribution of output: A multivariate perspective

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  • Battisti, Michele
  • Parmeter, Christopher F.

Abstract

Modeling the cross-country distribution of per capita income using mixture analysis provides a natural platform for the detection of clubs of countries. Unfortunately, these mixture methods, when based on a strictly univariate approach are limiting towards one’s ability to learn about the underlying process of the emergence of what constitutes a club. This paper takes a fresh look at the constitution of the emerging clubs in the distribution of cross-country output using bivariate and multivariate mixture analysis. Our results suggest that clubs are also forming in the main Solowian determinants of economic growth.

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  • Battisti, Michele & Parmeter, Christopher F., 2013. "Clustering and polarization in the distribution of output: A multivariate perspective," Journal of Macroeconomics, Elsevier, vol. 35(C), pages 144-162.
    • Handle: RePEc:eee:jmacro:v:35:y:2013:i:c:p:144-162
    DOI: 10.1016/j.jmacro.2012.10.003
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    4. Inmaculada C. Alvarez & Javier Barbero & Luis Orea & Andrés Rodríguez-Pose, 2023. "How institutions shape the economic returns of public investment in European regions," Efficiency Series Papers 2023/03, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
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