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Spatial Analysis of Regional Income Inequality

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  • Sergio J. Rey

    (San Diego State University)

Abstract

Questions surrounding regional economic convergence have commanded a great deal of recent attention in economics literature. As in other recent cases in the social sciences, the application of spatially explicit methods of data analysis to the convergence question has yielded important insights on regional economic growth. By contrast, the literature on regional income inequality, although somewhat older than the convergence literature, has been slower to adopt new spatially explicit methods of data analysis. This chapter helps to speed that adoption by investigating the role of spatial dependence and spatial scale in the analysis of regional income inequality in the US over the 1929-2000 period. The findings reveal a strong positive relationship between measures of inequality in state incomes and the degree of spatial autocorrelation. Additionally, a geographically based decomposition of inequality highlights a strong positive relationship between the interregional inequality share (as opposed to intraregional inequality) and spatial clustering. Finally, a new approach to inference in regional inequality analysis is suggested and demonstrated as providing a formal explanatory framework to complement the broad, but descriptive approaches in the existing literature.

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Bibliographic Info

Paper provided by EconWPA in its series Urban/Regional with number 0110002.

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Length: 21 pages
Date of creation: 15 Oct 2001
Date of revision:
Handle: RePEc:wpa:wuwpur:0110002

Note: Type of Document - postscript; prepared on PC Debian GNU/Linux tetex; to print on HP/PostScript; pages: 21; figures: included
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Web page: http://128.118.178.162

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Keywords: spatial analysis; regional income inequality;

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References

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  1. Carlos R. Azzoni, 2001. "Economic growth and regional income inequality in Brazil," The Annals of Regional Science, Springer, vol. 35(1), pages 133-152.
  2. Paci, Raffaele & Pigliaru, Francesco, 1997. "Structural change and convergence: an Italian regional perspective," Structural Change and Economic Dynamics, Elsevier, vol. 8(3), pages 297-318, August.
  3. Amos, Orley Jr., 1988. "Unbalanced regional growth and regional income inequality in the latter stages of development," Regional Science and Urban Economics, Elsevier, vol. 18(4), pages 549-566, November.
  4. Steven N. Durlauf & Danny T. Quah, 1998. "The New Empirics of Economic Growth," NBER Working Papers 6422, National Bureau of Economic Research, Inc.
  5. Peter Nijkamp & Jacques Poot, 1997. "Spatial Perspectives on New Theories of Economic Growth," Tinbergen Institute Discussion Papers 97-056/3, Tinbergen Institute.
  6. Cowell, Frank A & Jenkins, Stephen P, 1995. "How Much Inequality Can We Explain? A Methodology and an Application to the United States," Economic Journal, Royal Economic Society, vol. 105(429), pages 421-30, March.
  7. X. Zhang & R. Kanbur, 2001. "What Difference Do Polarisation Measures Make? An Application to China," The Journal of Development Studies, Taylor and Francis Journals, vol. 37(3), pages 85-98.
  8. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
  9. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-85, November.
  10. Jeffrey A. Mills & Sourushe Zandvakili, 1999. "Statistical Inference via Bootstrapping for Measures of Inequality," Macroeconomics 9902003, EconWPA.
  11. M. Chatterji & J. H. Ll. Dewhurst, 1996. "Convergence Clubs and Relative Economic Performance in Great Britain: 1977-1991," Regional Studies, Taylor and Francis Journals, vol. 30(1), pages 31-39.
  12. Amnon Levy & Khorshed Chowdhury, 1995. "A Geographical Decomposition of Intercountry Income Inequality," Comparative Economic Studies, Palgrave Macmillan, vol. 37(4), pages 1-17, December.
  13. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-51, April.
  14. Zheng, Buhong & J. Cushing, Brian, 2001. "Statistical inference for testing inequality indices with dependent samples," Journal of Econometrics, Elsevier, vol. 101(2), pages 315-335, April.
  15. Tsui Kai-yuen, 1993. "Decomposition of China's Regional Inequalities," Journal of Comparative Economics, Elsevier, vol. 17(3), pages 600-627, September.
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Citations

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Cited by:
  1. Ferhan Gezici & Geoffrey Hewings, 2003. "Spatial Analysis of Regional Inequalities in Turkey," ERSA conference papers ersa03p99, European Regional Science Association.
  2. Ferhan Gezýcý, 2004. "New Regional Definition and Spatial Analysis of Regional Inequalities in Turkey. Related to the Regional Policies of EU," ERSA conference papers ersa04p57, European Regional Science Association.
  3. Ferhan Gezici, 2011. "Regional Disparities and the Performance of Peripheral Regions in Turkey," ERSA conference papers ersa11p147, European Regional Science Association.
  4. Juan Duque & Manuel Artís & Raúl Ramos, 2006. "The ecological fallacy in a time series context: evidence from Spanish regional unemployment rates," Journal of Geographical Systems, Springer, vol. 8(4), pages 391-410, October.

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