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Sigma Convergence Versus Beta Convergence: Evidence from County-Level Data

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Matthew Higgins ()
Daniel Levy ()
Andrew Young ()

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Abstract

This note outlines (i) why sigma-convergence may not accompany beta-convergence; (ii) cites evidence of beta-convergence in the U.S.; (iii) demonstrates that sigma-convergence does not hold across the U.S., or within most U.S. states; and (iv) demonstrates the robustness of this finding to increases in mean income. The distributions of shocks appear important towards accounting for income disparity.

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Paper provided by Department of Economics, Emory University (Atlanta) in its series Emory Economics with number 0316.

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Date of creation: Sep 2003
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Handle: RePEc:emo:wp2003:0316

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  1. Evans, Paul & Karras, Georgios, 1996. "Do Economies Converge? Evidence from a Panel of U.S. States," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 384-88, August. [Downloadable!] (restricted)
  2. Efthymios G. Tsionas, 2000. "Regional Growth and Convergence: Evidence from the United States," Regional Studies, Taylor and Francis Journals, vol. 34(3), pages 231-238, May. [Downloadable!] (restricted)
  3. Matthew Higgins & Daniel Levy & Andrew Young, 2005. "Growth and Convergence across the U.S: Evidence from County-Level Data," Macroeconomics 0509023, EconWPA. [Downloadable!]
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  4. D Quah, 1996. "Convergence," CEP Discussion Papers 0290, Centre for Economic Performance, LSE. [Downloadable!]
  5. Sala-i-Martin, Xavier X., 1996. "Regional cohesion: Evidence and theories of regional growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1325-1352, June. [Downloadable!] (restricted)
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  6. Paul Evans, 1997. "How Fast Do Economies Converge?," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 219-225, May. [Downloadable!] (restricted)
  7. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May. [Downloadable!] (restricted)
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  8. Friedman, Milton, 1992. "Do Old Fallacies Ever Die?," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 2129-32, December. [Downloadable!] (restricted)
  9. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November. [Downloadable!] (restricted)
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