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Sigma Convergence Versus Beta Convergence: Evidence from County-level Data

  • Matthew Higgins
  • Daniel Levy
  • Andrew Young

This note outlines: 1) Why sigma-convergence may not accompany beta-convergence; 2) Cites evidence of beta-convergence in the U.S.; 3) Demonstrates that sigma-convergence does not hold across the U.S. or within most U.S. states; and 4) Demonstrates the robustness of this finding to increases in mean income. The distributions of shocks appear important towards accounting for income disparity.

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File URL: http://economics.emory.edu/home/assets/workingpapers/higgins_03_16_paper.pdf
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Paper provided by Department of Economics, Emory University (Atlanta) in its series Emory Economics with number 0316.

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Date of creation: Sep 2003
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Handle: RePEc:emo:wp2003:0316
Contact details of provider: Web page: http://economics.emory.edu/home/journals/
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  1. Efthymios Tsionas, 2000. "Regional Growth and Convergence: Evidence from the United States," Regional Studies, Taylor & Francis Journals, vol. 34(3), pages 231-238.
  2. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
  3. Matthew J. Higgins & Daniel Levy & Andrew T. Young, 2005. "Growth and Convergence across the US: Evidence from County-Level Data," Working Papers 2005-06, Bar-Ilan University, Department of Economics.
  4. Paul Evans, 1997. "How Fast Do Economies Converge?," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 219-225, May.
  5. Friedman, Milton, 1992. "Do Old Fallacies Ever Die?," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 2129-32, December.
  6. Sala-i-Martin, Xavier, 1994. "Regional Cohesion: Evidence and Theories of Regional Growth and Convergence," CEPR Discussion Papers 1075, C.E.P.R. Discussion Papers.
  7. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November.
  8. Evans, Paul & Karras, Georgios, 1996. "Do Economies Converge? Evidence from a Panel of U.S. States," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 384-88, August.
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