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The Paradox Of Slow‐Growth High‐Income Regions

Author

Listed:
  • Jean‐Luc Migué
  • Gérard Bélanger

Abstract

We attempt to provide an economic theory and the empirical evidence to explain why slow‐growth regions, like Quebec in Canada, enjoy as high living standards as rapidly growing regions. In the long term quantities not prices adjust (except for the price of land, a resource in fixed supply). Despite variations in regional growth rates, real per capita income adjusted for housing costs converge in all regions. The analysis offers important insights into regional development and has far‐reaching implications for federalism.

Suggested Citation

  • Jean‐Luc Migué & Gérard Bélanger, 2007. "The Paradox Of Slow‐Growth High‐Income Regions," Economic Affairs, Wiley Blackwell, vol. 27(3), pages 57-64, September.
    • Handle: RePEc:bla:ecaffa:v:27:y:2007:i:3:p:57-64
    DOI: 10.1111/j.1468-0270.2007.00756.x
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    References listed on IDEAS

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    1. Mitchener, Kris James & McLean, Ian W., 1999. "U.S.Regional Growth And Convergence, 1880–1980," The Journal of Economic History, Cambridge University Press, vol. 59(4), pages 1016-1042, December.
    2. Nordhaus William D, 2008. "Baumol's Diseases: A Macroeconomic Perspective," The B.E. Journal of Macroeconomics, De Gruyter, vol. 8(1), pages 1-39, February.
    3. Edward J. Chambers & Donald F. Gordon, 1966. "Primary Products and Economic Growth: An Empirical Measurement," Journal of Political Economy, University of Chicago Press, vol. 74(4), pages 315-315.
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