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Exploring Changes in Poverty in South Carolina During the Great Recession Using a Spatial Durbin Model

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  • Lewis, Willis
  • Johnson, Christopher

Abstract

In this paper, we use a spatial Durbin model (SDM) to analyze poverty in South Carolina - a predominantly rural state with large pockets of persistent poverty counties. This allows for identifying specific factors in surrounding areas that influence local poverty rates, something missing from the existing literature. Earlier research relied on the general spatial model that we now know is not appropriate in applied research. We find poverty rates increased with more retirees and kids, more single moms, and higher average TANF payments in a county. There were no significant effects from income and job growth. Population density was the only variable with a negative effect during the study period 2003 to 2014.

Suggested Citation

  • Lewis, Willis & Johnson, Christopher, 2018. "Exploring Changes in Poverty in South Carolina During the Great Recession Using a Spatial Durbin Model," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 48(2), July.
    • Handle: RePEc:ags:jrapmc:339907
    DOI: 10.22004/ag.econ.339907
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    References listed on IDEAS

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    1. Rupasingha, Anil & Goetz, Stephan J. & Freshwater, David, 2006. "The production of social capital in US counties," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(1), pages 83-101, February.
    2. Anil Rupasingha & Stephan J. Goetz & David Freshwater, 2002. "Social and institutional factors as determinants of economic growth: Evidence from the United States counties," Review of Economic Design, Springer;Society for Economic Design, vol. 81(2), pages 139-155, April.
    3. J. Elhorst, 2010. "Applied Spatial Econometrics: Raising the Bar," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(1), pages 9-28.
    4. Louis Swanson & Rosalind Harris & Jerry Skees & Lionel Williamson, 1994. "African Americans in southern rural regions: The importance of legacy," The Review of Black Political Economy, Springer;National Economic Association, vol. 22(4), pages 109-124, June.
    5. Rupasingha, Anil & Goetz, Stephan J., 2007. "Social and political forces as determinants of poverty: A spatial analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(4), pages 650-671, August.
    6. Mindy S. Crandall & Bruce A. Weber, 2004. "Local Social and Economic Conditions, Spatial Concentrations of Poverty, and Poverty Dynamics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1276-1281.
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    8. Robert K. Triest, 1997. "Regional differences in family poverty," New England Economic Review, Federal Reserve Bank of Boston, issue Jan, pages 3-17.
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    1. Orazem, Peter F. & Tran, Thu, 2020. "To Inform or Influence? The Difference between Data Released by Nonprofits and by the Government," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 50(01), March.

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