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Divided: the two Americas-examining club convergence in the U.S

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  • María Candelaria Barrios González
  • Heather L. R. Tierney
  • Zafar Nazarov
  • Myeong Hwan Kim

Abstract

This paper finds club convergence within the 50 U.S. states using the Phillips and Sul regression-based convergence test with per capita real state domestic product from 1997 to 2017. Two clubs with diverging transition paths are found. Clubs 1 and 2 mimics the divide that is seen in the flow of funds from the federal government to the states. Hence, the Phillips and Sul logt test is telling the tale of there being two Americas if all factors remain the same, but this need not be the case with the proper policy prescription.

Suggested Citation

  • María Candelaria Barrios González & Heather L. R. Tierney & Zafar Nazarov & Myeong Hwan Kim, 2020. "Divided: the two Americas-examining club convergence in the U.S," Applied Economics, Taylor & Francis Journals, vol. 52(53), pages 5783-5796, November.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:53:p:5783-5796
    DOI: 10.1080/00036846.2020.1776832
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    Cited by:

    1. Stilianos Alexiadis & Konstantinos Eleftheriou & Peter Nijkamp, 2021. "Club convergence of per capita disposable income in the United States," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(5), pages 1565-1580, October.

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