Convergence Among the U.S. States: Absolute, Conditional, or Club?
AbstractThis paper attempts to ascertain which of the convergence hypotheses – absolute, conditional, or club – best describes the economic development of the U.S. states since 1950. We use regression tree analysis to identify convergence clubs among the states and argue that the club characterization of the data dominates the other two. We find three convergence clubs with a state's age and it's initial densities of post offices and telephone cable determining club membership. Abstracting from catch-up effects, those states with higher densities tend to grow faster.
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Bibliographic InfoPaper provided by Vassar College Department of Economics in its series Vassar College Department of Economics Working Paper Series with number 50.
Date of creation: Aug 2001
Date of revision: Oct 2003
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