Sigma Convergence versus Beta Convergence: Evidence from U.S. County-Level Data

Young, Andrew and Higgins, Matthew and Levy, Daniel (2007): Sigma Convergence versus Beta Convergence: Evidence from U.S. County-Level Data.

Abstract

In this paper we outline (i) why sigma-convergence may not accompany beta-convergence, (ii) discuss evidence of beta-convergence in the U.S., and (iii) use U.S. county-level data containing over 3,000 cross-sectional observations to demonstrate that sigma-convergence cannot be detected at the county-level across the U.S., or within the large majority of the individual U.S. states considered separately. Indeed, in many cases statistically significant sigma-divergence is found.

• Item Type: MPRA Paper
• Institution: University of Mississippi, Georgia Institute of Technology, and Bar-Ilan University
• Language: English
• Keywords: sigma-convergence; beta-convergence; Solow growth model; speed of convergence; balanced growth; U.S. county-level data; income distribution; Gini coefficient; income equality
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O18 - Urban, Rural, Regional, and Transportation Analysis ; Housing ; Infrastructure; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H70 - General

References

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