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Sigma Convergence versus Beta Convergence: Evidence from U.S. County-Level Data

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

Abstract

In this paper we outline (i) why sigma-convergence may not accompany beta-convergence, (ii) discuss evidence of beta-convergence in the U.S., and (iii) use U.S. county-level data containing over 3,000 cross-sectional observations to demonstrate that sigma-convergence cannot be detected at the county-level across the U.S., or within the large majority of the individual U.S. states considered separately. Indeed, in many cases statistically significant sigma-divergence is found.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2714.

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Date of creation: 12 Apr 2007
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Handle: RePEc:pra:mprapa:2714

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Keywords: sigma-convergence; beta-convergence; Solow growth model; speed of convergence; balanced growth; U.S. county-level data; income distribution; Gini coefficient; income equality;

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References

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  1. Andrew Young & Matthew Higgins & Daniel Levy, 2004. "Heterogeneity in Convergence Rates and Income Determination across U.S. States: Evidence from County-Level Data," Development and Comp Systems 0402003, EconWPA.
  2. 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.
  3. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November.
  4. Andrew T. Young & Matthew J. Higgins & Daniel Levy, 2011. "Heterogeneous Convergence," Emory Economics 1106, Department of Economics, Emory University (Atlanta).
  5. 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.
  6. Matthew Higgins & Daniel Levy & Andrew Young, 2005. "Growth and Convergence across the US: Evidence from County-Level Data," Macroeconomics 0505009, EconWPA.
  7. Efthymios Tsionas, 2000. "Regional Growth and Convergence: Evidence from the United States," Regional Studies, Taylor and Francis Journals, vol. 34(3), pages 231-238.
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Citations

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Cited by:
  1. Young, Andrew & Higgins, Matthew & Levy, Daniel, 2007. "Black Populations and Economic Growth: An Extreme Bounds Analysis of Mississippi County-Level Data," MPRA Paper 1646, University Library of Munich, Germany.
  2. González-Val, Rafael, 2010. "What makes cities bigger and richer? New Evidence from 1990–2000 in the US," MPRA Paper 15636, University Library of Munich, Germany.
  3. Young, Andrew & Higgins, Matthew & Levy, Daniel, 2006. "Heterogeneous Convergence," MPRA Paper 954, University Library of Munich, Germany.
  4. Higgins, Matthew & Young, Andrew & Levy, Daniel, 2007. "Robust Correlates of County-Level Growth in the U.S," MPRA Paper 3088, University Library of Munich, Germany.
  5. García Callejas, Danny, 2011. "Per Capita GDP Convergence in South America, 1960-2007," BORRADORES DEPARTAMENTO DE ECONOMÍA 008983, UNIVERSIDAD DE ANTIOQUIA - CIE.
  6. Christina Elschner & Jost H. Heckemeyer & Christoph Spengel, 2011. "Besteuerungsprinzipien und effektive Unternehmenssteuerbelastungen in der Europäischen Union: Regelt sich die EU‐weite Steuerharmonisierung von selbst?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(1), pages 47-71, 02.
  7. Dariusz Wozniak & Piotr Czarnecki & Robert Szarota, 2011. "The analysis of convergence process of voivodships’ efficiency in Poland using the DEA metod," ERSA conference papers ersa11p925, European Regional Science Association.
  8. Paola Andrea Barrientos Quiroga, 2010. "Convergence Patterns in Latin America," Economics Working Papers 2010-15, School of Economics and Management, University of Aarhus.
  9. Aleksejs Melihovs & Igors Kasjanovs, 2011. "The Convergence Processes in Europe and Latvia," Discussion Papers 2011/01, Latvijas Banka.
  10. Andrew T. Young & Daniel Levy, 2005. "Explicit Evidence on an Implicit Contract," Emory Economics 0519, Department of Economics, Emory University (Atlanta).
  11. Rafael González-Val, 2011. "What makes cities bigger and richer? New Evidence from 1990–2000 in the US," ERSA conference papers ersa11p325, European Regional Science Association.
  12. Kumar, Surender & Managi, Shunsuke, 2009. "Productivity and Convergence in India: State Level Analysis," MPRA Paper 23738, University Library of Munich, Germany.
  13. Gebremeskel Gebremariam & Tesfa Gebremedhin & Peter Schaeffer, 2010. "Analysis of county employment and income growth in Appalachia: a spatial simultaneous-equations approach," Empirical Economics, Springer, vol. 38(1), pages 23-45, February.

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