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The return of convergence in the US states

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  • Janice Boucher Breuer
  • William Hauk Jr.
  • John McDermott

Abstract

We analyse convergence of per capita income across the US states for the period 1929--2011. We find that absolute convergence was in evidence early, but it broke down around 1978. It appears to have returned in 1990, although more weakly than before. We use two standard metrics to evaluate convergence: (1) σ -convergence, a reduction in the SD of state per capita income and (2) β -convergence, the fact that poor states grow faster than rich states.

Suggested Citation

  • Janice Boucher Breuer & William Hauk Jr. & John McDermott, 2014. "The return of convergence in the US states," Applied Economics Letters, Taylor & Francis Journals, vol. 21(1), pages 64-68, January.
    • Handle: RePEc:taf:apeclt:v:21:y:2014:i:1:p:64-68
    DOI: 10.1080/13504851.2013.826905
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    References listed on IDEAS

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    1. Edward L. Glaeser & Kristina Tobio, 2007. "The Rise of the Sunbelt," NBER Working Papers 13071, National Bureau of Economic Research, Inc.
    2. Johnson, Paul A. & Takeyama, Lisa N., 2001. "Initial conditions and economic growth in the US states," European Economic Review, Elsevier, vol. 45(4-6), pages 919-927, May.
    3. William Hauk & Romain Wacziarg, 2009. "A Monte Carlo study of growth regressions," Journal of Economic Growth, Springer, vol. 14(2), pages 103-147, June.
    4. Maurseth, Per Botolf, 2001. "Convergence, geography and technology," Structural Change and Economic Dynamics, Elsevier, vol. 12(3), pages 247-276, September.
    5. Evans, Paul & Karras, Georgios, 1996. "Do Economies Converge? Evidence from a Panel of U.S. States," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 384-388, August.
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    Cited by:

    1. Mustafa Emre Ertu rul & Kemaletttin Tanr seven, 2018. "Analysis of Income Convergence in G-20 Countries with Structural Break Unit Root Test," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 344-349.
    2. Up Lim & Donghyun Kim, 2015. "Toward Sustainable Economic Growth: A Spatial Panel Data Analysis of Regional Income Convergence in US BEA Economic Areas," Sustainability, MDPI, vol. 7(8), pages 1-17, July.
    3. Celbis M.G. & Crombrugghe D.P.I. de, 2014. "Can internet infrastructure help reduce regional disparities? : evidence from Turkey," MERIT Working Papers 2014-078, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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