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Interstate Income Inequality In The United States: Measurement, Modelling And Some Characteristics

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  • Rati Ram

Abstract

Five points are made in this study. First, using a well‐recommended measure, interstate income inequality is reported for each year from 1950 through 1989, and its very small magnitude is pointed out along with the U‐shaped profile. Second, it is shown that a simple quadratic‐form model fits the data extremely well. Third, inequality indices for 1977 and 1988 are recomputed after adjusting for interstate price‐level variations, and large reductions in the indices, and a virtual disappearance of the increase in inequality after 1978, are noted. Fourth, a simple decomposition shows that income changes account for most of the inequality change in each decade. Last, states that have contributed most to inequality are identified.

Suggested Citation

  • Rati Ram, 1992. "Interstate Income Inequality In The United States: Measurement, Modelling And Some Characteristics," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(1), pages 39-48, March.
    • Handle: RePEc:bla:revinw:v:38:y:1992:i:1:p:39-48
    DOI: 10.1111/j.1475-4991.1992.tb00400.x
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    Cited by:

    1. Laurel J. Fish & Dennis Halcoussis & G. Michael Phillips, 2021. "Price‐Parity Adjustments Shouldn'T Be A Trade Secret: State‐Level Price Parity And Assessment Of Covenants Not To Compete Enforceability," Contemporary Economic Policy, Western Economic Association International, vol. 39(1), pages 220-235, January.
    2. Branko Milanovic, 2004. "Half a World: Regional inequality in five great federations," Urban/Regional 0404002, University Library of Munich, Germany.
    3. J.A. Duro, 2004. "Regional Income Inequalities in Europe: An Updated Measurement and Some Decomposition Results," Working Papers wpdea0411, Department of Applied Economics at Universitat Autonoma of Barcelona.
    4. Roberto Ezcurra & Pedro Pascual, 2008. "Fiscal Decentralization and Regional Disparities: Evidence from Several European Union Countries," Environment and Planning A, , vol. 40(5), pages 1185-1201, May.
    5. Tatiane Almeida de Menezes & Carlos Roberto Azzoni, 2001. "Estimação de uma Estrutura de Ponderação para as Cidades Brasileiras," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 078, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    6. Anthony Shorrocks & Guanghua Wan, 2005. "Spatial decomposition of inequality," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 59-81, January.
    7. Black, David C. & Dowd, Michael R., 1997. "Measuring real interstate income inequality in the United States," Economics Letters, Elsevier, vol. 56(3), pages 367-370, November.
    8. Roberto Ezcurra & Carlos Gil & Pedro Pascual & Manuel Rapún, 2002. "Geografía y dinámica de la desigualdad regional en la Unión Europea," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0207, Departamento de Economía - Universidad Pública de Navarra.
    9. Cletus C. Coughlin & David C. Wheelock, 1995. "Lessons from the United States and European Community for the integration of high and low income economies," Working Papers 1995-007, Federal Reserve Bank of St. Louis.
    10. Michael Beenstock & Daniel Felsenstein, 2007. "Mobility and Mean Reversion in the Dynamics of Regional Inequality," International Regional Science Review, , vol. 30(4), pages 335-361, October.
    11. Weatherspoon, Dave D. & Seale, James L., Jr. & Moss, Charles B., 2003. "Extending Theil's Inequality Index: Addressing Dynamic Convergence in the OECD," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35(Supplemen), pages 1-12.
    12. Afonso Henriques Borges Ferreira & Clélio Campolina Diniz, 1994. "Convergência entre as rendas per capita estaduais no Brasil," Textos para Discussão Cedeplar-UFMG 079, Cedeplar, Universidade Federal de Minas Gerais.
    13. Carolyn Sherwood-Call, 1996. "The 1980s divergence in state per capital incomes: what does it tell us?," Economic Review, Federal Reserve Bank of San Francisco, pages 14-25.
    14. repec:rre:publsh:v:38:y:2008:i:2:p:211-31 is not listed on IDEAS

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