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Regional Convergence and Common, Stochastic Long-run Trends: A Re-examination of the US Regional Data

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  • Efthymios Tsionas

Abstract

The paper utilizes modern econometric techniques organized around I(1) and cointegration analysis to examine the number of common, stochastic long-run trends in regional incomes and assess the hypothesis of regional convergence for the US over the period 1929-1997. Time series evidence is conflicting but tends to indicate the presence of too many common, stochastic, long-run trends, thus providing no support for the convergence hypothesis. L'article emploie des techniques econometriques recentes basees sur des analyses I(1) et cointegree afin d'examiner le nombre de tendances communes, stochastiques a long terme des revenus regionaux et d'evaluer l'hypothese qui avance la notion de la convergence regionale aux Etats-Unis sur la periode qui va de 1929 a 1997. Des preuves presentees en serie temporelle s'averent contradictoires mais semblent indiquer la presence d'un nombre trop eleve de tendances communes, stochastiques a long terme, ce qui ne vient pas a l'appui de l'hypothese qui avance la notion de convergence. Dieser Aufsatz bedient sich moderner, okonometrischer Techniken, die um 1(1) angeordnet sind, sowie einer Ko-integrationsanalyse, um die Zahl der gewohnlichen, stochastisch langfristigen Tendenzen bei regionalen Einkommen zu untersuchen, und die Hypothese regionaler Konvergenz fur die Vereinigten Staaten im Zeitraum 1929-1997 zu beurteilen. Zeitserienbeweise widersprechen einander, zeigen jedoch meist ein Vorhandensein zu vieler gewohnlicher, stochasisch langfristiger Tendenzen an, und stellen somit keine Stu¨tzung der Konvergenzhypothese dar.

Suggested Citation

  • Efthymios Tsionas, 2001. "Regional Convergence and Common, Stochastic Long-run Trends: A Re-examination of the US Regional Data," Regional Studies, Taylor & Francis Journals, vol. 35(8), pages 689-696.
  • Handle: RePEc:taf:regstd:v:35:y:2001:i:8:p:689-696 DOI: 10.1080/00343400120084687
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    References listed on IDEAS

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    Cited by:

    1. Alexiadis, Stilianos & Eleftheriou, Konstantinos, 2010. "The Morphology of Income Convergence in US States: New Evidence using an Error-Correction-Model," MPRA Paper 20096, University Library of Munich, Germany.
    2. Holmes, Mark J. & Otero, Jesús & Panagiotidis, Theodore, 2014. "A Note On The Extent Of U.S. Regional Income Convergence," Macroeconomic Dynamics, Cambridge University Press, pages 1635-1655.
    3. Weber, William L. & Domazlicky, Bruce R., 2006. "Capital Deepening and Manufacturing's Contribution to Regional Economic Convergence," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(1).
    4. Holmes, Mark J. & Otero, Jesús & Panagiotidis, Theodore, 2014. "A Note On The Extent Of U.S. Regional Income Convergence," Macroeconomic Dynamics, Cambridge University Press, pages 1635-1655.
    5. Magrini, Stefano, 2004. "Regional (di)convergence," Handbook of Regional and Urban Economics,in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 62, pages 2741-2796 Elsevier.
    6. Michael Beenstock & Daniel Felsenstein, 2007. "Mobility and Mean Reversion in the Dynamics of Regional Inequality," International Regional Science Review, , vol. 30(4), pages 335-361, October.

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