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Do Income Disparities dissipate across the US States? Experimenting with a Vector Error Correction Model

Author

Listed:
  • Stilianos Alexiadis

    (Ministry of Rural Development & Foods, Greece)

  • Konstantinos Eleftheriou

    (Abu Dhabi University, United Arab Emirates)

  • Peter Nijkamp

    (VU University Amsterdam)

Abstract

This paper examines the long-run trends in per-capita income across the US states (1929-2005). Our analysis advocates and implements a Vector Error Correction Model (VECM), in order to investigate whether disparities in per-capita income embody a stable long-run relation. The empirical application is supplemented with Factor Analysis to identify groups of States with a common behaviour in terms of per-capita income.

Suggested Citation

  • Stilianos Alexiadis & Konstantinos Eleftheriou & Peter Nijkamp, 2013. "Do Income Disparities dissipate across the US States? Experimenting with a Vector Error Correction Model," Tinbergen Institute Discussion Papers 13-165/VIII, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20130165
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    References listed on IDEAS

    as
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    3. Julie Le Gallo, 2004. "Space-Time Analysis of GDP Disparities among European Regions: A Markov Chains Approach," International Regional Science Review, , vol. 27(2), pages 138-163, April.
    4. Stilianos Alexiadis & Konstantinos Eleftheriou, 2010. "A note on the morphology of regional unemployment in Greece," Economics Bulletin, AccessEcon, vol. 30(4), pages 2779-2786.
    5. Roberto Ezcurra & Pedro Pascual & Manuel Rapún, 2007. "Spatial Inequality in Productivity in the European Union: Sectoral and Regional Factors," International Regional Science Review, , vol. 30(4), pages 384-407, October.
    6. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
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    8. Stanley Keil, 1997. "Regional Trends in British Manufacturing Employment: Tests for Stationarity and Co-integration, 1952-1989," Regional Studies, Taylor & Francis Journals, vol. 31(1), pages 13-24.
    9. Gary L. Hunt, 2006. "Population–Employment Models: Stationarity, Cointegration, and Dynamic Adjustment," Journal of Regional Science, Wiley Blackwell, vol. 46(2), pages 205-244, May.
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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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    More about this item

    Keywords

    Intraregional income disparities; Vector Error Correction Model; Factor Analysis;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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