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Convergence Among the U.S. States: Absolute, Conditional, or Club?

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Abstract

This paper attempts to ascertain which of the convergence hypotheses – absolute, conditional, or club – best describes the economic development of the U.S. states since 1950. We use regression tree analysis to identify convergence clubs among the states and argue that the club characterization of the data dominates the other two. We find three convergence clubs with a state's age and it's initial densities of post offices and telephone cable determining club membership. Abstracting from catch-up effects, those states with higher densities tend to grow faster.

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  • Johnson, Paul & Takeyama, Lisa N., 2001. "Convergence Among the U.S. States: Absolute, Conditional, or Club?," Vassar College Department of Economics Working Paper Series 50, Vassar College Department of Economics, revised Oct 2003.
    • Handle: RePEc:vas:papers:50
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    4. Guilherme Mendes Resende & Lízia de Figueiredo, 2008. "Economic Growth Of Minas Gerais: A Quantile Regression Approach Between 1980 And 2000," Anais do XIII Semin·rio sobre a Economia Mineira [Proceedings of the 13th Seminar on the Economy of Minas Gerais], in: Anais do XIII Seminário sobre a Economia Mineira [Proceedings of the 13th Seminar on the Economy of Minas Gerais], Cedeplar, Universidade Federal de Minas Gerais.

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