IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v8y2020i2p40-d362498.html
   My bibliography  Save this article

How Does a Policymaker Rank Regional Income Distributions across Years? A Study on the Evolution of Greek Regional per Capita Income

Author

Listed:
  • Angelos Liontakis

    (Agricultural Economics Research Institute, Hellenic Agricultural Organization, 11528 Athens, Greece)

Abstract

This study examines the evolution of the regional per capita income from the perspective of a policymaker at the national level. To do that, it utilizes stochastic dominance analysis by including a utility function that expresses the “regional inequalities aversion” level of the policymaker. In this way, the analysis indicates how the policymakers rank income distributions according to their primary policy objectives and more specifically, GDP growth and diminishing of income inequalities. Data refer to the per capita GDPs of the Greek prefectures during the period 2000–2017, in real terms. The estimation of certainty equivalents provides a numeric index of preference among regional income distributions according to the policy objectives mix. Results indicate that the period 2000–2017 is characterized by different patterns of regional income evolutions. Overall, there is no regional convergence from year 2000 to 2017, while the evolution of regional income does not follow a constant path. The analysis provides thoughtful insights into the way that different policy targets and preferences can affect the relevant ranking of income distributions. In a certain level of policymakers’ “regional inequalities aversion”, a balance between economic growth and diminishing of regional inequalities targets is assumed. Apart from a useful tool in economic research, this quantification approach can also be utilized in policy design for setting more appropriate policy targets, based on the preferences of policymakers at the national level.

Suggested Citation

  • Angelos Liontakis, 2020. "How Does a Policymaker Rank Regional Income Distributions across Years? A Study on the Evolution of Greek Regional per Capita Income," Economies, MDPI, vol. 8(2), pages 1-12, May.
    • Handle: RePEc:gam:jecomi:v:8:y:2020:i:2:p:40-:d:362498
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/8/2/40/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/8/2/40/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Meyer, Jack & Ormiston, Michael B, 1994. "The Effect on Optimal Portfolios of Changing the Return to a Risky Asset: The Case of Dependent Risky Returns," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(3), pages 603-612, August.
    2. Maasoumi, Esfandiar & Racine, Jeff & Stengos, Thanasis, 2007. "Growth and convergence: A profile of distribution dynamics and mobility," Journal of Econometrics, Elsevier, vol. 136(2), pages 483-508, February.
    3. Meyer, Jack & Ormiston, Michael B, 1985. "Strong Increases in Risk and Their Comparative Statics," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(2), pages 425-437, June.
    4. Angelos Liontakis & Christos T. Papadas & Irene Tzouramani, 2011. "Regional Economic Convergence in Greece: A Stochastic Dominance Approach," ERSA conference papers ersa10p1188, European Regional Science Association.
    5. Meyer, Jack, 1977. "Second Degree Stochastic Dominance with Respect to a Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 477-487, June.
    6. Bishop, John A. & Formby, John P. & Thistle, Paul D., 1991. "Rank dominance and international comparisons of income distributions," European Economic Review, Elsevier, vol. 35(7), pages 1399-1409, October.
    7. Coes, Donald V., 2008. "Income distribution trends in Brazil and China: Evaluating absolute and relative economic growth," The Quarterly Review of Economics and Finance, Elsevier, vol. 48(2), pages 359-369, May.
    8. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    9. Vassilis Monastiriotis, 2009. "Examining the consistency of spatial association patterns across socio-economic indicators: an application to the Greek regions," Empirical Economics, Springer, vol. 37(1), pages 25-49, September.
    10. Panagiotis KOUDOUMAKIS & George BOTZORIS & Angelos PROTOPAPAS & Vassilios PROFILLIDIS, 2019. "The Impact Of The Economic Crisis In The Process Of Convergence Of The Greek Regions," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 25-32, June.
    11. Yannis M. Ioannides & George Petrakos, 2000. "Regional Disparities in Greece and the Performance of Crete, Peloponnese and Thessaly," Discussion Papers Series, Department of Economics, Tufts University 0008, Department of Economics, Tufts University.
    12. George Petrakos & Yannis Psycharis, 2016. "The spatial aspects of economic crisis in Greece," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(1), pages 137-152.
    13. Costas Siriopoulos & Dimitrios Asteriou, 1998. "Testing for Convergence Across the Greek Regions," Regional Studies, Taylor & Francis Journals, vol. 32(6), pages 537-546, August.
    14. Gordon Anderson, 2004. "Making inferences about the polarization, welfare and poverty of nations: a study of 101 countries 1970-1995," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(5), pages 537-550.
    15. Vassilis Monastiriotis, 2008. "The Geography of Spatial Association Across the Greek Regions," Contributions to Economics, in: Harry Coccossis & Yannis Psycharis (ed.), Regional Analysis and Policy, pages 17-39, Springer.
    16. Yannis Psycharis & Dimitris Kallioras & Panagiotis Pantazis, 2014. "Economic crisis and regional resilience: detecting the ‘geographical footprint’ of economic crisis in Greece," Regional Science Policy & Practice, Wiley Blackwell, vol. 6(2), pages 121-141, June.
    17. Christofakis Manolis & Gaki Eleni & Lagos Dimitrios, 2019. "The impact of economic crisis on regional disparities and the allocation of economic branches in Greek regions," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 44(44), pages 7-21, June.
    18. Yannis PSYCHARIS & Antonis ROVOLIS & Vassilis TSELIOS & Panayotis PANTAZIS, 2014. "Economic Crisis And Regional Development In Greece," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 39, pages 67-85.
    19. Sergio J. Rey & Wei Kang & Levi John Wolf, 2019. "Regional inequality dynamics, stochastic dominance, and spatial dependence," Papers in Regional Science, Wiley Blackwell, vol. 98(2), pages 861-881, April.
    20. Gordon Anderson & Ying Ge, 2009. "Intercity Income Inequality Growth and Convergence in China," Journal of Income Distribution, Ad libros publications inc., vol. 18(1), pages 70-89, March.
    21. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
    22. Nazrul Islam, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 1127-1170.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arkadiusz Michał Kowalski & Jakub Rybacki, 2021. "Moderate Innovator Trap—Does the Convergence of Innovation Performance Occur in the World Economy?," Economies, MDPI, vol. 9(1), pages 1-12, February.
    2. Angelos Liontakis & Alexandra Sintori & Irene Tzouramani, 2021. "The Role of the Start-Up Aid for Young Farmers in the Adoption of Innovative Agricultural Activities: The Case of Aloe Vera," Agriculture, MDPI, vol. 11(4), pages 1-24, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Angelos Liontakis & Christos T. Papadas & Irene Tzouramani, 2011. "Regional Economic Convergence in Greece: A Stochastic Dominance Approach," ERSA conference papers ersa10p1188, European Regional Science Association.
    2. Stephen Dobson & Carlyn Ramlogan & Eric Strobl, 2006. "Why Do Rates Of Β‐Convergence Differ? A Meta‐Regression Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(2), pages 153-173, May.
    3. Hakki Kutay Bolkol, 2019. "Analysis of Regional Income Convergence in Turkey," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(2), pages 01-28, April.
    4. Hao, Yu & Peng, Hui, 2017. "On the convergence in China's provincial per capita energy consumption: New evidence from a spatial econometric analysis," Energy Economics, Elsevier, vol. 68(C), pages 31-43.
    5. Vítor João Pereira Domingues Martinho, 2023. "Evidence of Global Convergence: Perspectives for Economic and Territory Planning in Times of the COVID-19 Pandemic," Land, MDPI, vol. 12(6), pages 1-19, June.
    6. Sergio J. Rey & Mark V. Janikas, 2005. "Regional convergence, inequality, and space," Journal of Economic Geography, Oxford University Press, vol. 5(2), pages 155-176, April.
    7. Shahram Amini & Michele Battisti & Christopher F. Parmeter, 2011. "Decomposing The Conditional Variance of Cross-Country Output," Working Papers 2011-18, University of Miami, Department of Economics.
    8. repec:zbw:rwidps:0030 is not listed on IDEAS
    9. Atolia, Manoj & Chatterjee, Santanu & Turnovsky, Stephen J., 2010. "How misleading is linearization? Evaluating the dynamics of the neoclassical growth model," Journal of Economic Dynamics and Control, Elsevier, vol. 34(9), pages 1550-1571, September.
    10. Massimiliano Affinito, 2011. "Convergence clubs, the euro-area rank and the relationship between banking and real convergence," Temi di discussione (Economic working papers) 809, Bank of Italy, Economic Research and International Relations Area.
    11. Mustafa Gömleksiz & Ahmet Şahbaz & Birol Mercan, 2017. "Regional Economic Convergence in Turkey: Does the Government Really Matter for?," Economies, MDPI, vol. 5(3), pages 1-16, July.
    12. ?gel de la Fuente, "undated". "Convergence Across Countries And Regions: Theory And Empirics," UFAE and IAE Working Papers 447.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    13. Zhang, Xiaobei & Wang, Xiaojun, 2021. "Measures of human capital and the mechanics of economic growth," China Economic Review, Elsevier, vol. 68(C).
    14. Matthew Higgins & Daniel Levy & Andrew T. Young, 2003. "Growth and Convergence across the US: Evidence from County-Level Data," Working Papers 2003-03, Bar-Ilan University, Department of Economics.
    15. Panagiotis KOUDOUMAKIS & George BOTZORIS & Angelos PROTOPAPAS, 2021. "The Contribution Of Cohesion Policy To The Development And Convergence Of The Regions Of The European Union," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 277-290, June.
    16. Badri Narayan Rath, 2019. "Does Total Factor Productivity Converge Among Asean Countries?," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 21(12th BMEB), pages 477-494, January.
    17. William Brock & M. Taylor, 2010. "The Green Solow model," Journal of Economic Growth, Springer, vol. 15(2), pages 127-153, June.
    18. Aiyar, Shekhar & Duval, Romain & Puy, Damien & Wu, Yiqun & Zhang, Longmei, 2018. "Growth slowdowns and the middle-income trap," Japan and the World Economy, Elsevier, vol. 48(C), pages 22-37.
    19. Dubrocard, Anne & Prombo, Michel, 2012. "International comparison of Environmental performance," MPRA Paper 48072, University Library of Munich, Germany, revised 05 Jul 2013.
    20. Raffaele Paci & Emanuela Marrocu, 2014. "Tourism and regional growth in Europe," Papers in Regional Science, Wiley Blackwell, vol. 93, pages 25-50, November.
    21. Alexander B. Darku, 2021. "International trade and income convergence: Sorting out the nature of bilateral trade," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 5337-5348, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:8:y:2020:i:2:p:40-:d:362498. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.