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Growth and Convergence across the U.S: Evidence from County-Level Data

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Author Info

  • Matthew Higgins

    (Georgia Institute of Technology)

  • Daniel Levy

    (Bar-Ilan University)

  • Andrew Young

    (University of Mississippi)

Abstract

We use U.S. county data (3,058 observations) and 41 conditioning variables to study growth and convergence. Using OLS and 3SLS-IV we report on the full sample and metro, non-metro, and 5 regional samples: (1) OLS yields convergence rates around 2 percent; 3SLS yields 6–8 percent; (2) convergence rates vary (e.g., the Southern rate is 2.5 times the Northeastern rate); (3) federal, state and local government negatively correlates with growth; (4) the relationship between educational attainment and growth is nonlinear; and (5) finance, insurance & real estate industry and entertainment industry positively correlates with growth while education employment negatively correlates.

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Bibliographic Info

Paper provided by EconWPA in its series Macroeconomics with number 0509023.

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Length: 54 pages
Date of creation: 22 Sep 2005
Date of revision:
Handle: RePEc:wpa:wuwpma:0509023

Note: Type of Document - pdf; pages: 54
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Web page: http://128.118.178.162

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Keywords: Economic Growth; Conditional Convergence; County-Level Data;

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References

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