Capital deepening and regional inequality: An empirical analysis

Michael Beenstock; Daniel Felsenstein; Nadav Ben Zeev

doi:10.1007/s00168-010-0397-1

Capital deepening and regional inequality: An empirical analysis

Michael Beenstock, Daniel Felsenstein, Nadav Ben Zeev

Research output: Contribution to journal › Article › peer-review

18 Scopus citations

Abstract

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.

Original language	English
Pages (from-to)	599-617
Number of pages	19
Journal	Annals of Regional Science
Volume	47
Issue number	3
DOIs	https://doi.org/10.1007/s00168-010-0397-1
State	Published - 1 Dec 2011
Externally published	Yes

Keywords

O18
R11
R53

ASJC Scopus subject areas

General Environmental Science
General Social Sciences

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10.1007/s00168-010-0397-1

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AU - Felsenstein, Daniel

AU - Ben Zeev, Nadav

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AB - 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.

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ER -

Capital deepening and regional inequality: An empirical analysis

Abstract

Keywords

ASJC Scopus subject areas

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