Munich Personal RePEc Archive

The Morphology of Income Convergence in US States: New Evidence using an Error-Correction-Model

Alexiadis, Stilianos and Eleftheriou, Konstantinos (2010): The Morphology of Income Convergence in US States: New Evidence using an Error-Correction-Model.

[img]
Preview
PDF
MPRA_paper_20096.pdf

Download (224kB) | Preview

Abstract

This paper reconsiders the question of regional convergence across the US States over the long-run. The analysis is carried out over the period 1929-2005. Our analysis advocates and implements an Error-Correction-Model (ECM) approach to deal with this issue. The aforementioned model is applied in order to assess the possibilities of intraregional convergence towards steady-state equilibrium, approximated in terms of the State with highest per-capita income in each broad region. Empirical analysis suggests a pattern of convergence in accordance with the ECM supporting its validity. Further inspection of the results provides an indirect indication of the agglomerative effects in shaping the patterns of convergence.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.