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Black Populations and Economic Growth: An Extreme Bounds Analysis of Mississippi County-Level Data

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  • Young, Andrew
  • Higgins, Matthew
  • Levy, Daniel

Abstract

We use Mississippi county-level data on (per capita) income and the percentages of populations that are Black (henceforth "Black") to examine the relationship between race and economic growth. The analysis is also conditioned on 40 other economic and socio-demographic variables. Given a negative and statistically significant partial correlation between income growth and Black, we ask if it is robust to exhaustive combinations of other conditioning variables (taken 3 at a time). The evidence suggests yes. Since even robust correlation does not imply causation, we then ask if other robust correlates with income growth play a roll in accounting for Black in the data. The answer “yes” is obtained for only one other robust correlate of the "right" sign: the percentage of a population that is below the poverty level.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 1646.

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Date of creation: 29 Jan 2007
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Handle: RePEc:pra:mprapa:1646

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Keywords: Racial Inequalities; Black Populations; Solow Growth Model; Speed of Convergence; U.S. County-Level Data; Extreme Bounds Analysis;

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  1. Glaeser, Edward L. & Scheinkman, JoseA. & Shleifer, Andrei, 1995. "Economic growth in a cross-section of cities," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 117-143, August.
  2. Andrew Young & Matthew Higgins & Daniel Levy, 2005. "Sigma-Convergence Versus Beta-Convergence: Evidence from U.S. County-Level Data," Macroeconomics 0505008, EconWPA.
  3. Andrew T. Young & Matthew J. Higgins & Daniel Levy, 2011. "Heterogeneous Convergence," Working Paper Series 18_11, The Rimini Centre for Economic Analysis.
  4. Matthew Higgins & Daniel Levy & Andrew Young, 2003. "Growth and Convergence across the U.S.: Evidence from County-level Data," Emory Economics 0306, Department of Economics, Emory University (Atlanta).
  5. Connaughton, John E. & Madsen, Ronald A., 2004. "Explaining Per Capita Personal Income Differences between States," The Review of Regional Studies, Southern Regional Science Association, vol. 34(2), pages 206-220.
  6. Paul Evans, 1997. "How Fast Do Economies Converge?," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 219-225, May.
  7. Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-63, September.
  8. 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.
  9. Matthew J. Higgins & Daniel Levy & Andrew T. Young, 2006. "Growth and Convergence across the United States: Evidence from County-Level Data," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 671-681, November.
  10. Evans, Paul, 1996. "Using cross-country variances to evaluate growth theories," Journal of Economic Dynamics and Control, Elsevier, vol. 20(6-7), pages 1027-1049.
  11. Mihai Nica, 2004. "Convergence in Mississippi: A Spatial Approach," Urban/Regional 0408007, EconWPA.
  12. 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.
  13. Evans, Paul & Karras, Georgios, 1996. "Convergence revisited," Journal of Monetary Economics, Elsevier, vol. 37(2-3), pages 249-265, April.
  14. Levernier, William & Partridge, Mark D. & Rickman, Dan S., 1998. "Differences in Metropolitan and Nonmetropolitan U.S. Family Income Inequality: A Cross-County Comparison," Journal of Urban Economics, Elsevier, vol. 44(2), pages 272-290, September.
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