REGIONAL BUSINESS CYCLES AND INCOME CONVERGENCE IN US

Hasan Engin Duran ()

ERSA conference papers from European Regional Science Association

Abstract: Since early 90s, the issue of income convergence across regions has been widely discussed in a number of papers, both looking at long-term tendencies and trying to establish the role played by several socio-economic determinants. Much less attention has instead been devoted to the analysis of short-run convergence dynamics and the relationship with national business cycle. In the few papers that tackle this issue it is generally found that income disparities follow a pro-cyclical pattern, increasing during times of national expansions and decreasing in recessions. However, two important aspects have not yet been adequately studied in this specific area of research. First, is the relationship between national business cycle and regional income disparities linear or, rather, nonlinear. Second, what are the mechanisms and economic reasons behind the cyclical evolution of regional income disparities? And, more specifically, is the cyclical evolution a consequence of difference in the timing with which the business cycle is felt in regional economies or, alternatively, is it mainly motivated by the presence of size differences across local cyclical swings. In the present paper, we investigate the above issues using a combination of established and newly developed nonparametric tools applied to data on the states of US between 1969 and 2008. Keywords: Cyclical Regional Disparities, Regional Business Cycles, Income Convergence

Date: 2011-09
New Economics Papers: this item is included in nep-geo and nep-mac
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www-sre.wu.ac.at/ersa/ersaconfs/ersa10/ERSA2010finalpaper594.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa10p594

Access Statistics for this paper

More papers in ERSA conference papers from European Regional Science Association Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by Gunther Maier ().