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Changes in State PCPI Rankings

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  • Connaughton, John E.
  • Swartz, Caroline

Abstract

Research on convergence of state per capita personal income (PCPI) generally finds convergence through 1990. In recent years, the data suggest convergence stopped and it may have reversed. This study finds that the conclusion depends on the way states are grouped. Analysis of quintiles based on 1950 PCPI shows convergence until 1990 and a relatively con-stant dispersion thereafter. Quintiles based on 2012 PCPI show substantial divergence after 2000. This paper also analyzes the changes in state PCPI ranking over time. Between 1950 and 2012, eleven states experienced a double-digit increase in rank while ten states had a dou-ble-digit decline in rank. A regression model using both variable and fixed factors that affect PCPI indicates that state population growth had a negative and significant effect on state PCPI rank and higher rates of four-year college graduates had a positive and significant effect. Fi-nally, location in the Southeast, Rocky Mountain, and Far West regions had a negative and significant effect on state PCPI ranking.

Suggested Citation

  • Connaughton, John E. & Swartz, Caroline, 2015. "Changes in State PCPI Rankings," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(1).
    • Handle: RePEc:ags:jrapmc:243976
    DOI: 10.22004/ag.econ.243976
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