Have Absolute Price Levels Converged for Developed Economies?
Author InfoLein-Lein Chen (Department of Economics, University of Nevada) Seungmook Choi (Department of Finance, University of Nevada) John Devereux (Department of Economics, Queens College, CUNY) Abstract We compare price level and income convergence since 1870 for eleven developed economies using implicit price deflators derived from the GDP data of Maddison (1995, 2001, 2003). We find that “sigma” and “beta” convergence for prices occurs later and to a lesser extent than income. Price levels converge after 1950 while income convergence begins in the 1880s. We find no evidence for stochastic price convergence or for “club” price convergence. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology. Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the ID
