A note on the extent of U.S. regional income convergence

Mark J. Holmes, Jes̈us Otero, Theodore Panagiotidis

Resultado de la investigación: Contribución a RevistaRevisión Literaria

3 Citas (Scopus)

Resumen

© 2013 Cambridge University Press.Long-run income convergence is investigated in the U.S. context. We employ a novel pairwise econometric procedure based on a probabilistic definition of convergence. The time-series properties of all the possible regional income pairs are examined by means of unit root and non-cointegration tests, where inference is based on the fraction of rejections. We distinguish between the cases of strong convergence, where the implied cointegrating vector is [1, -1], and weak convergence, where long-run homogeneity is relaxed. To address cross-sectional dependence, we employ a bootstrap methodology to derive the empirical distribution of the fraction of rejections. We find supporting evidence of U.S. states sharing a common stochastic trend consistent with a definition of convergence based on long-run forecasts of state incomes being proportional rather than equal. We find that the strength of convergence between states decreases with distance and initial income disparity. Using Metropolitan Statistical Area data, evidence for convergence is stronger.
Idioma originalEnglish (US)
Páginas (desde-hasta)1635-1655
Número de páginas21
PublicaciónMacroeconomic Dynamics
DOI
EstadoPublished - ene 1 2013

Huella dactilar

Income convergence
Income
Common stochastic trends
Unit root tests
Income disparity
U.S. States
Weak convergence
Empirical distribution
Inference
Econometrics
Homogeneity
Cross-sectional dependence
Methodology
Bootstrap

Citar esto

Holmes, Mark J. ; Otero, Jes̈us ; Panagiotidis, Theodore. / A note on the extent of U.S. regional income convergence. En: Macroeconomic Dynamics. 2013 ; pp. 1635-1655.
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A note on the extent of U.S. regional income convergence. / Holmes, Mark J.; Otero, Jes̈us; Panagiotidis, Theodore.

En: Macroeconomic Dynamics, 01.01.2013, p. 1635-1655.

Resultado de la investigación: Contribución a RevistaRevisión Literaria

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