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The evolution of regional income distribution in Japan

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  • Sung Jin Kang

Abstract

Using data on per capita income of Japan's 47 prefectures between 1955 and 1997, this paper shows that one of the most popular measurements of convergence, σ-convergence, is not invariant with both transformation and definition of dispersion. Measured by the standard deviation, the actual per capita income has diverged, whereas measured by the coefficients of variation, it has converged since 1955. The log of per capita income and relative income of all prefectures to Tokyo, however, have converged regardless of the measurement of dispersion. In addition, through the estimation of density function and transition matrix, the intradistribution dynamics of each prefecture's per capita income is identified.

Suggested Citation

  • Sung Jin Kang, 2004. "The evolution of regional income distribution in Japan," Applied Economics, Taylor & Francis Journals, vol. 36(3), pages 253-259.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:3:p:253-259
    DOI: 10.1080/0003684042000175352
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    References listed on IDEAS

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    1. Durlauf, Steven N. & Quah, Danny T., 1999. "The new empirics of economic growth," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 4, pages 235-308, Elsevier.
    2. Dalgaard, Carl-Johan & Vastrup, Jacob, 2001. "On the measurement of [sigma]-convergence," Economics Letters, Elsevier, vol. 70(2), pages 283-287, February.
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    Cited by:

    1. Daniel A. Tirado Fabregat & Alfonso Díez-Minguela & Julio Martínez-Galarraga, 2015. "A closer look at the long-term patterns of regional income inequality in Spain: The poor stay poor (and stay together)," Working Papers. Serie EC 2015-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    2. Faiza Azhar KHAN, 2016. "Revisiting the Relationship between β and σ Convergence," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 26(1), pages 43-52.
    3. Falko Juessen, 2005. "A distribution dynamics approach to regional income convergence in reunified Germany," ERSA conference papers ersa05p411, European Regional Science Association.
    4. Ji Kim, 2007. "Regional convergence and efficiency in Korea," Applied Economics Letters, Taylor & Francis Journals, vol. 15(1), pages 57-60.
    5. Ji Kim, 2005. "Convergence hypothesis of regional income in Korea," Applied Economics Letters, Taylor & Francis Journals, vol. 12(7), pages 431-435.

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