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Divided: The Two Americas-Examining Club Convergence in the U.S

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  • Barrios González, María Candelaria
  • Tierney, Heather L.R.
  • Nazarov, Zafar
  • Kim, Myeong Hwan

Abstract

This paper finds club convergence within the 50 U.S. states using Phillips and Sul’s (2007, 2009) regression-based convergence test using per capita real state domestic product from 1997 to 2017. Two clubs with diverging transition paths are found. Clubs 1 and 2 mimics the divide that is seen in the flow of funds from the federal government to the states (DiNapoli 2017, 2018). Hence, the log t test of Phillips and Sul (2007) is telling the tale of there being two Americas if all factors remain the same, but this need not be the case with the proper policy prescription.

Suggested Citation

  • Barrios González, María Candelaria & Tierney, Heather L.R. & Nazarov, Zafar & Kim, Myeong Hwan, 2019. "Divided: The Two Americas-Examining Club Convergence in the U.S," MPRA Paper 98274, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:98274
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    References listed on IDEAS

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    More about this item

    Keywords

    Convergence Clubs; Economic Convergence; Log t-Test; Growth and Development; U.S.;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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