 An alternative perspective on the stochastic convergence of incomes in the United StatesSteven Cook Applied Economics Letters, 2008, vol. 15, issue 12, 929-934 Abstract: In recent years a number of studies has examined the potential stochastic convergence of incomes in the United States. This research has been based upon examination of the order of integration of the ratios of regional levels of per-capita income relative to US aggregate per-capita income, with stationary of the ratios taken as evidence of stochastic convergence. In the present article this research and its implicit assumption that the individual regional and aggregate per-capita series are I(1), are revisited. In a departure from previous research, application of a more robust testing procedure incorporating two structural breaks to the individual aggregate and regional per-capita series, rather than their ratios, is seen to result in overwhelming rejection of the unit root hypothesis for all of the series examined. The unit root hypothesis is rejected also for more disaggregated State level data. The evidence of stationarity presented for the component per-capita income series suggests that care should be exercised when both interpreting results presented previously in the literature and conducting further research. Date: 2008 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:15:y:2008:i:12:p:929-934 Ordering information: This journal article can be ordered from DOI: 10.1080/13504850600949186 Access Statistics for this article Applied Economics Letters is currently edited by Anita Phillips More articles in Applied Economics Letters from Taylor & Francis Journals |
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