Measurement of intra-distribution dynamics: an application of different approaches to the European regions

Abstract

This paper examines the intra-distribution dynamics of per capita income between the European regions for the periods 1980-1993 and 1993-2005. To this end, three approaches are applied: the stochastic kernel approach, the highest conditional density approach and the estimation of mobility measures based on the Markov chain approach. One main conclusion and lesson have been obtained. The conclusion is that, although the distribution exhibits a great persistence, the degree of intra-distribution mobility has been much higher in the first period than in the second. The lesson is that, in dealing with intra-distribution dynamics, the use of different but complementary approaches is highly recommended.