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Regional Convergence and Aggregate Business Cycle in the United States

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  • Stefano Magrini
  • Margherita Gerolimetto
  • Hasan Engin Duran

Abstract

Magrini S., Gerolimetto M. and Engin Duran H. Regional convergence and aggregate business cycle in the United States, Regional Studies . The existing literature on convergence largely ignores the effect of aggregate fluctuations on the evolution of income disparities. However, if regional disparities follow a distinct cyclical pattern in the short run, the period of analysis should be chosen with great care to avoid distortions in the results. By analysing convergence among forty-eight conterminous US states through the distribution dynamics approach, it is shown that these distortions could be quite sizeable. Moreover, when convergence is analysed over an appropriate period that includes only complete cycles (1989-2007), results show that regional disparities exhibit a pro-cyclical behaviour and that the underlying long-run tendency is towards divergence.

Suggested Citation

  • Stefano Magrini & Margherita Gerolimetto & Hasan Engin Duran, 2015. "Regional Convergence and Aggregate Business Cycle in the United States," Regional Studies, Taylor & Francis Journals, vol. 49(2), pages 251-272, February.
    • Handle: RePEc:taf:regstd:v:49:y:2015:i:2:p:251-272
    DOI: 10.1080/00343404.2013.766319
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    References listed on IDEAS

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    1. Gerhard Bry & Charlotte Boschan, 1971. "Foreword to "Cyclical Analysis of Time Series: Selected Procedures and Computer Programs"," NBER Chapters, in: Cyclical Analysis of Time Series: Selected Procedures and Computer Programs, pages -1, National Bureau of Economic Research, Inc.
    2. Gerhard Bry & Charlotte Boschan, 1971. "Cyclical Analysis of Time Series: Selected Procedures and Computer Programs," NBER Books, National Bureau of Economic Research, Inc, number bry_71-1.
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    Cited by:

    1. Panagiotis Mitropoulos & Alexandros Mitropoulos, 2023. "Evaluating efficiency and technology gaps of the national systems of entrepreneurship using stochastic DEA and club convergence," Operational Research, Springer, vol. 23(1), pages 1-28, March.
    2. Hasan Engin DURAN, 2015. "Non-Linear Regional Income Divergence And Policies: Turkey Case," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 107-114, December.
    3. Margherita Gerolimetto & Stefano Magrini, 2016. "A spatial analysis of employment multipliers in the US," Letters in Spatial and Resource Sciences, Springer, vol. 9(3), pages 277-285, October.
    4. Alejandra Trejo Nieto, 2021. "Regional disparities in Mexico and the spatially cumulative effects of national development and economic cycles, 1940–2013," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(4), pages 1283-1296, August.
    5. Panagiotis Artelaris, 2021. "Regional economic growth and inequality in Greece," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(1), pages 141-158, February.
    6. Margherita Gerolimetto & Stefano Magrini, 2017. "A Finite Sample Appraisal Of The Distribution Dynamics Approach," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 71(4), pages 31-40, October-D.
    7. Weili Zhang & Wei Xu & Xiaoye Wang, 2019. "Regional convergence clubs in China: identification and conditioning factors," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(2), pages 327-350, April.
    8. John R. Posey, 2021. "The geographic redistribution of income in the United States, 1970–2010: the role of the super-wealthy," Letters in Spatial and Resource Sciences, Springer, vol. 14(3), pages 321-333, December.
    9. Kounetas, Konstantinos E. & Polemis, Michael L. & Tzeremes, Nickolaos G., 2021. "Measurement of eco-efficiency and convergence: Evidence from a non-parametric frontier analysis," European Journal of Operational Research, Elsevier, vol. 291(1), pages 365-378.
    10. Luca Salvati & Margherita Carlucci & Giuseppe Venanzoni, 2017. "Recession, resilience, local labour markets: wealthier is better?," Letters in Spatial and Resource Sciences, Springer, vol. 10(2), pages 177-204, July.
    11. Fazio, Giorgio & Piacentino, Davide, 2018. "Convergence analysis for hierarchical longitudinal data," Economic Modelling, Elsevier, vol. 73(C), pages 89-99.

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