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Initial Values and Income Convergence: Do "The Poor Stay Poor"?

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  • Etsuro Shioji

    (Yokohama National University)

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    Abstract

    A panel data estimation finds a high speed of income convergence among the U.S. states. However, initial incomes show a pattern which is difficult to explain by the estimated model. A simulation study shows that this pattern can be explained much more naturally when we assume that true convergence is slow. © 2004 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/003465304774201888
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    Bibliographic Info

    Article provided by MIT Press in its journal Review of Economics and Statistics.

    Volume (Year): 86 (2004)
    Issue (Month): 1 (February)
    Pages: 444-446

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    Handle: RePEc:tpr:restat:v:86:y:2004:i:1:p:444-446

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    Web page: http://mitpress.mit.edu/journals/

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    Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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    Cited by:
    1. Jes�s Rodríguez-López & Diego Martínez-López & Diego Romero-Ávila, 2009. "Persistence of inequalities across the Spanish regions," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 841-862, November.
    2. Michael Artis & Toshihiro Okubo, 2008. "The Intranational Business Cycle: Evidence from Japan," Discussion Paper Series 221, Research Institute for Economics & Business Administration, Kobe University.
    3. repec:gen:geneem:12302 is not listed on IDEAS
    4. Stefan Sperlich & Yvonne Sperlich, 2012. "Growth and Convergence in South–South Integration Areas: Empirical Evidence," Research Papers by the Department of Economics, University of Geneva 12032, Département des Sciences Économiques, Université de Genève.

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