CONVERGENCE AND THE U.S. STATES: A TIME‐SERIES ANALYSIS*

Gerald A. Carlino · Leonard O. Mills

115 citations0/0 files storedJournal of Regional Science

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Economic Growth and Productivity Historical Economic and Social Studies Regional Economic and Spatial Analysis

Abstract

ABSTRACT. After decades of apparent convergence, state and regional per capita earnings diverged between 1978 and 1988. A central tenet of the convergence hypothesis is that shocks to relative state and regional earnings, such as those of the 1978 to 1988 period, are transitory. We find evidence for convergence for the U.S. states and regions during the 1929 to 1990 period after allowing for a break in the rate at which the various states and regions were converging in 1946. An important finding of this research is that the US. states and regions achieved per capita earnings convergence by 1946.

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References

1956A Contribution to the Theory of Economic Growth 1988On the mechanics of economic development 1986Increasing Returns and Long-Run Growth 1992A Contribution to the Empirics of Economic Growth 1991Economic Growth in a Cross Section of Countries 1989Economic Growth in a Cross Section of Countries 1989The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis 2002Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis

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