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Are Regional Incomes in the USA Converging? A Non-linear Perspective

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  • Dimitris K. Christopoulos
  • Efthymios G. Tsionas

Abstract

Christopoulos D. K. and Tsionas E. G. (2007) Are regional incomes in the USA converging? A non-linear perspective, Regional Studies 41, 525-530. This article deviates from the current practice of regional convergence by allowing output convergence to follow a non-linear process. In this scenario all standard linear unit root tests have low power, thus frequently leading to misguided conclusions. In light of this a unit root test based on a non-linear model is adopted which tests the null hypothesis of a unit root against a non-linear alternative. The findings overwhelmingly support the tendency of US regions to converge over time. Christopoulos D. K. et Tsionas E. G. (2007) Les revenus regionaux aux Etats-Unis, est-ce qu'ils convergent? Un point de vue non-lineaire, Regional Studies 41, 525-530. L'article s'ecarte de la pratique actuelle de la convergence regionale en permettant a la convergence du rendement de suivre un processus non-lineaire. Dans ce cas-ci, tout test lineaire standard de la racine unitaire s'avere peu puissant et, par la suite, amene frequemment a des conclusions trompeuses. A la lumiere de ce constat, on emploie un test de la racine unitaire base sur un modele non-lineaire qui teste l'hypothese nulle d'une racine unitaire par rapport a une alternative non-lineaire. Les resultats viennent indubitablement a l'appui de la tendance a la convergence des regions aux Etats-Unis dans le temps. Convergence Non-lineaire Modeles E-STAR Christopoulos D. K. und Tsionas E. G. (2007) Gibt es eine Konvergenz beim Regionaleinkommen in den USA? Eine nicht lineare Perspektive, Regional Studies 41, 525-530. In diesem Beitrag weichen wir von der derzeitigen Praxis der regionalen Konvergenz ab, indem wir die Output-Konvergenz einem nicht linearen Prozess folgen lassen. In diesem Szenario haben alle herkommlichen linearen Einheitswurzelprufungen nur geringe Potenz und fuhren daher haufig zu fehlgeleiteten Schlussfolgerungen. Aus diesem Grund passen wir eine Einheitswurzelprufung an ein nicht lineares Modell an, wodurch die Nullhypothese der Einheitswurzel gegen eine nicht lineare Alternative gepruft wird. Unsere Ergebnisse bekraftigen durchschlagend die Tendenz einer Konvergenz der US-amerikanischen Regionen im Laufe der Zeit. Konvergenz Nichtlinearitat E-STAR-Modelle Christopoulos D. K. y Tsionas E. G. (2007) ¿Se estan convergiendo los ingresos regionales en los Estados Unidos? Una perspectiva no lineal, Regional Studies 41, 525-530. En este articulo nos desviamos de la practica comun de convergencia regional permitiendo que la convergencia de rendimientos siga un proceso no lineal. En este escenario, dado que todos los tests estandar de raices unitarias y lineales tienen poco poder, con frecuencia nos llevan a conclusiones mal encaminadas. Por este motivo aqui adoptamos un test de raices unitarias basado en un modelo no lineal que comprueba la hipotesis nula de una raiz unitaria comparada con una alternativa no lineal. Nuestros resultados respaldan predominantemente la tendencia de las regiones de los Estados Unios a converger con el tiempo. Convergencia No linealidad Modelos E-STAR

Suggested Citation

  • Dimitris K. Christopoulos & Efthymios G. Tsionas, 2007. "Are Regional Incomes in the USA Converging? A Non-linear Perspective," Regional Studies, Taylor & Francis Journals, vol. 41(4), pages 525-530.
    • Handle: RePEc:taf:regstd:v:41:y:2007:i:4:p:525-530
    DOI: 10.1080/00343400601120254
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    4. Tunali, Çiǧdem Börke & Yilanci, Veli, 2010. "Are per capita incomes of MENA countries converging or diverging?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(21), pages 4855-4862.
    5. Kris Ivanovski & Sefa Awaworyi Churchill & John Inekwe, 2020. "Convergence in Income Inequality Across Australian States and Territories," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(1), pages 127-142, February.
    6. Connaughton, John E. & Swartz, Caroline, 2015. "Changes in State PCPI Rankings," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(01).
    7. Juan Carlos Cuestas & Carlyn Ramlogan-Dobson, 2013. "Convergence of Inflationary Shocks: Evidence from the Caribbean," The World Economy, Wiley Blackwell, vol. 36(9), pages 1229-1243, September.
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    9. Maria Jesus Herrerias & Vicente Orts, 2011. "The driving forces behind China’s growth," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(1), pages 79-124, January.

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