Analysis of Regional Income Mobility in Argentina

Trade, Integration and Economic Development: The EU and Latin America

Springer Wien New York

Año: 2008; p. 324 - 350

We study mobility by means of Markov chains using annual data for the Argentine provinces covering the 1980 ? 1998 period. The Hodrick ? Prescott filter allows us to separate the cyclical from the trend components. Annual transition matrices are estimated but other time-spans are also taken into account: 2, 3, 6,9, and 18 years. An ergodic vector is obtained which points to n important degree of polarization in the long-run. For the period 1986 ? 1998 we obtain fairly different results because the long-run outcome now depends on the initial conditions and, consequently, points to a much higher degree of polarization.