A evolução das disparidades regionais no Rio Grande do Sul: uma aplicação de matrizes de Markov Evolution of regional income disparities in the Brazilian state of Rio Grande do Sul - application of Markov model]

Abstract

This paper analyses the regional convergence of the per capita income in the State of Rio Grande do Sul. A distributional function of the per capita income is estimated for the years of 1985 and 1999. Five income classes are defined. Based on these two functions, a Markov transitional probability matrix is estimated. The results indicate a process of income convergence toward the state average. In the long run, the five income classes would be reduced to three, with the disappearance of the lowest and the highest income classes.regional economy, income convergence, Markov model, the economy of Rio Grande do Sul