IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The Decline in Income Growth Volatility in the United States: Evidence from Regional Data

  • Heather Anderson

    ()

  • Farshid Vahid

    ()

We use US regional and state data to determine which regions have contributed most to the apparent decline in income growth volatility in the United States. We study changes in the variance of income growth in each region, changes in the covariance of growth between regions and changes in regional income growth shares. We establish that there has been a significant decline in the income growth volatility in thirty eight US states, and it is this, rather than changes in income shares, that is mostly responsible for the decline in the aggregate growth volatility. Further, we find that the twelve states that show no significant decline in their income growth volatility, are states with policies that make them unattractive to new businesses. We suggest that state level industrial policy may be a good, albeit partial, explanation for the decline in income growth volatility of the United States.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.buseco.monash.edu.au/ebs/pubs/wpapers/2003/wp21-03.pdf
Download Restriction: no

Paper provided by Monash University, Department of Econometrics and Business Statistics in its series Monash Econometrics and Business Statistics Working Papers with number 21/03.

as
in new window

Length: 20 Pages
Date of creation: Nov 2003
Date of revision:
Handle: RePEc:msh:ebswps:2003-21
Contact details of provider: Postal: PO Box 11E, Monash University, Victoria 3800, Australia
Phone: +61-3-9905-2489
Fax: +61-3-9905-5474
Web page: http://www.buseco.monash.edu.au/depts/ebs/
Email:


More information through EDIRC

Order Information: Web: http://www.buseco.monash.edu.au/depts/ebs/pubs/wpapers/ Email:


No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:msh:ebswps:2003-21. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Simone Grose)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.