ABSTRACT
This chapter reviews the main theoretical and empirical studies on regional income convergence. It starts from the neoclassical growth model and then moves to discuss the new growth and new economic geography models. The chapter reviews the main methodologies used to assess the evolution of income disparities or income convergence. Starting from regression analyses it then focuses on approaches taking explicitly into account the role of spatial factors and, finally, focuses on the use of non-parametric methodologies. It presents a series of stylized facts on the evolution of regional income disparities in Europe. It then focuses on few examples of such models chosen since they can offer some useful insights on the impact of integration on agglomeration and income disparities in Europe. Therefore in Europe there is only weak evidence of regional income convergence and that while some disparities, especially between countries, are decreasing, others, particularly within countries, are increasing.
