-economy income convergence. Where RCK predicts partial income and consumption convergence between open economies Solow predicts full … convergence. This paper presents, by a small modification of the savings behavior in the Solow model, a framework that matches RCK … country size; that income growth will be a U-shaped function of initial income thus creating differentiated convergence; and …

regions, we find evidence for conditional convergence with speed around two percent. The convergence process between countries … is dominated by the catching up process of regions in Central and Eastern Europe (CEE), whereas convergence within …