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Is Puerto Rico Converging to the United States?

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  • Fernando Lefort

Abstract

The convergence hypothesis sustains that two economics sharing the same steady-state value of per-capita income, but with different initial conditions, will tend to close the existing gap between them. In this paper I apply this concept to the case of Puerto Rico. I show that Puerto Rico is not converging to the United States, and therefore Puerto Rico cannot be sharing the same steady-state level of income of the States of the Union. After controlling for several economic variables, I show that the political status of Puerto Rico might be part of the explanation for this phenomenon.

Suggested Citation

  • Fernando Lefort, 1997. "Is Puerto Rico Converging to the United States?," Working Papers Central Bank of Chile 09, Central Bank of Chile.
  • Handle: RePEc:chb:bcchwp:09
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    Cited by:

    1. Godoy, Ricardo A. & Goodman, Elizabeth & Levins, Richard & Caram, Mariana & Seyfried, Craig, 2007. "Adult male height in an American colony: Puerto Rico and the USA mainland compared, 1886-1955," Economics & Human Biology, Elsevier, vol. 5(1), pages 82-99, March.
    2. Godoy, Ricardo & Goodman, Elizabeth & Gravlee, Clarence & Levins, Richard & Seyfried, Craig & Caram, Mariana & Jha, Naveen, 2007. "Blood pressure and hypertension in an American colony (Puerto Rico) and on the USA mainland compared, 1886-1930," Economics & Human Biology, Elsevier, vol. 5(2), pages 255-279, July.

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