Are U.S. regional incomes converging?
1993; Elsevier BV; Volume: 32; Issue: 2 Linguagem: Inglês
10.1016/0304-3932(93)90009-5
ISSN1873-1295
AutoresGerald A. Carlino, Leonard O. Mills,
Tópico(s)Fiscal Policy and Economic Growth
ResumoThe time series properties of per-capita income in U.S. regions are tested for consistency with the neoclassical growth model's prediction of per-capita income convergence. Two conditions are required for convergence. Shocks to relative regional per-capita incomes should be temporary (stochastic convergence), and initially poor regions should catch up to rich regions (β-convergence). We find evidence for stochastic convergence across U.S. regions during the 1929–1990 period after allowing for a trend break in 1946. We also find that U.S. regions have achieved β-convergence. These findings support the neoclassical model's prediction of conditional convergence.
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