Divided: the two Americas-examining club convergence in the U.S

María Candelaria Barrios González, Heather L. R. Tierney, Zafar Nazarov and Myeong Hwan Kim

Applied Economics, 2020, vol. 52, issue 53, 5783-5796

Abstract: This paper finds club convergence within the 50 U.S. states using the Phillips and Sul regression-based convergence test with per capita real state domestic product from 1997 to 2017. Two clubs with diverging transition paths are found. Clubs 1 and 2 mimics the divide that is seen in the flow of funds from the federal government to the states. Hence, the Phillips and Sul logt test is telling the tale of there being two Americas if all factors remain the same, but this need not be the case with the proper policy prescription.

Date: 2020
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DOI: 10.1080/00036846.2020.1776832

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