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Income convergence among U.S. states: crosssectional and time series evidence

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  • Jac C. Heckelman

Abstract

We perform convergence tests on the U.S. states for per capita income from 1930 to 2009. Crosssectional tests support overall convergence and convergence but may not hold true for the last three decades. Time series tests suggest that about half of the states exhibit stochastic convergence and of these all are also converging. Probit regressions reveal that the likelihood a state is converging is a function of changing capital to labour ratios, the size of the agricultural sector, and levels of taxation and tax revenue. Regional disparities in convergence remain among the southern and midwestern states.

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  • Jac C. Heckelman, 2013. "Income convergence among U.S. states: crosssectional and time series evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 46(3), pages 1085-1109, August.
    • Handle: RePEc:cje:issued:v:46:y:2013:i:3:p:1085-1109
    DOI: 10.1111/caje.12037
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    Cited by:

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    3. Rafael González-Val, 2015. "Cross-sectional growth in US cities from 1990 to 2000," Journal of Geographical Systems, Springer, vol. 17(1), pages 83-106, January.
    4. Makram El‐Shagi & Steven Yamarik, 2019. "State‐level capital and investment: Refinements and update," Growth and Change, Wiley Blackwell, vol. 50(4), pages 1411-1422, December.
    5. Theodoros Arvanitopoulos & Vassilis Monastiriotis & Theodore Panagiotidis, 2021. "Drivers of convergence: The role of first- and second-nature geography," Urban Studies, Urban Studies Journal Limited, vol. 58(14), pages 2880-2900, November.
    6. Claudio Detotto & Bryan C. McCannon, 2017. "Economic freedom and public, non-market institutions: evidence from criminal prosecution," Economics of Governance, Springer, vol. 18(2), pages 107-128, May.
    7. Jac Heckelman & Sandeep Mazumder, 2013. "Are we there yet? On the convergence of financial reforms," Economics of Governance, Springer, vol. 14(4), pages 385-409, November.
    8. Joshua C. Hall & Donald J. Lacombe & Shree B. Pokharel, 2020. "State Exit Exams and Graduation Rates: A Hierarchical SLX Modelling Approach," The Review of Regional Studies, Southern Regional Science Association, vol. 50(2), pages 189-206.
    9. Vicente German-Soto & Gregory Brock, 2022. "Overall US and Census Region β-Convergence 1963–2015 Controlling for Spatial Effects," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(1), pages 44-67, March.
    10. Brantley Liddle, 2018. "Warming And Income Growth In The United States: A Heterogeneous, Common Factor Dynamic Panel Analysis," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 9(04), pages 1-14, November.
    11. Heckelman, Jac C. & Young, Andrew, 2018. "How Global is Globalization?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 48(3), August.
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    13. Kinfemichael, Bisrat & Morshed, A.K.M. Mahbub, 2019. "Convergence of labor productivity across the US states," Economic Modelling, Elsevier, vol. 76(C), pages 270-280.

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    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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