Konferenzbeitrag

Capital Deepening and Regional Inequality: An Empirical Analysis

We present a simple reproducible methodology for constructing regional capital stock data, which we apply to Israel. We find that capital deepening has been sigma-convergent since 1985. This process is "inverted" since capital stocks and capital-labor ratios in the richer center have been catching-up with their counterparts in the poorer periphery. We explain this phenomenon in terms of fundamental changes in regional policy. Despite this, regional wages have not been sigma-convergent because other wage determinants have been sigma-divergent

Language
Englisch

Bibliographic citation
Series: 50th Congress of the European Regional Science Association: "Sustainable Regional Growth and Development in the Creative Knowledge Economy", 19-23 August 2010, Jönköping, Sweden

Classification
Wirtschaft
Subject
capital-labor ratios
regional inequalities
regional capital stock
wage convergence
regional human capital stock

Event
Geistige Schöpfung
(who)
Beenstock, Michael
Felzenshtain, Daniyel
Benzeev, Nadav
Event
Veröffentlichung
(who)
European Regional Science Association (ERSA)
(where)
Louvain-la-Neuve
(when)
2010

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Konferenzbeitrag

Associated

  • Beenstock, Michael
  • Felzenshtain, Daniyel
  • Benzeev, Nadav
  • European Regional Science Association (ERSA)

Time of origin

  • 2010

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