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Do Income Disparities dissipate across the US States? Experimenting with a Vector Error Correction Model

Stilianos Alexiadis, Konstantinos Eleftheriou () and Peter Nijkamp

No 13-165/VIII, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This paper examines the long-run trends in per-capita income across the US states (1929-2005). Our analysis advocates and implements a Vector Error Correction Model (VECM), in order to investigate whether disparities in per-capita income embody a stable long-run relation. The empirical application is supplemented with Factor Analysis to identify groups of States with a common behaviour in terms of per-capita income.

Keywords: Intraregional income disparities; Vector Error Correction Model; Factor Analysis (search for similar items in EconPapers)
JEL-codes: C22 R10 (search for similar items in EconPapers)
Date: 2013-10-11
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20130165

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