The Morphology of Income Convergence in US States: New Evidence using an Error-Correction-Model
AbstractThis paper reconsiders the question of regional convergence across the US States over the long-run. The analysis is carried out over the period 1929-2005. Our analysis advocates and implements an Error-Correction-Model (ECM) approach to deal with this issue. The aforementioned model is applied in order to assess the possibilities of intraregional convergence towards steady-state equilibrium, approximated in terms of the State with highest per-capita income in each broad region. Empirical analysis suggests a pattern of convergence in accordance with the ECM supporting its validity. Further inspection of the results provides an indirect indication of the agglomerative effects in shaping the patterns of convergence.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 20096.
Date of creation: 17 Jan 2010
Date of revision:
Income Convergence; Error-Correction-Model; US States;
Find related papers by JEL classification:
- R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-23 (All new papers)
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