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Growth and Convergence across the United States: Evidence from County-Level Data

Author

Listed:
  • Matthew J Higgins

    (University of Utah)

  • Daniel Levy

    (RCEA - Rimini Center for Economic Analysis, Emory University [Atlanta, GA], Bar-Ilan University [Israël])

  • Andrew T Young

    (TTU - Texas Tech University [Lubbock])

Abstract

We use U.S. county data (3,058 observations) and 41 conditioning variables to study growth and convergence. Using ordinary least squares (OLS) and three-stage least squares with instrumental variables (3SLS-IV), we report on the full sample and metro, non-metro, and and regional samples: (1) OLS yields convergence rates around 2%; 3SLS yields 6%–8%; (2) convergence rates vary (for example, the Southern rate is 2.5 times the Northeastern rate); (3) federal, state, and local government negatively correlates with growth; (4) the relationship between educational attainment and growth is nonlinear; and (5) the finance, insurance, and real estate industry and the entertainment industry correlate positively with growth, whereas education employment correlates negatively.

Suggested Citation

  • Matthew J Higgins & Daniel Levy & Andrew T Young, 2006. "Growth and Convergence across the United States: Evidence from County-Level Data," Post-Print hal-02387008, HAL.
    • Handle: RePEc:hal:journl:hal-02387008
    DOI: 10.1162/rest.88.4.671
    Note: View the original document on HAL open archive server: https://hal.science/hal-02387008
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    More about this item

    Keywords

    Economic Growth; Conditional Convergence; County-Level Data; US States; US Counties; Convergence Rate; Federal Government; State Government; Local Government; Educational Attainment; US Metro Areas; US Non-Metro Areas; US Regions;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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