[Journal:] Journal of Money, Credit and Banking [ISSN:] 1538-4616 [Volume:] 40 [Issue:] 5 [Pages:] 1083-1093
Ohio State University, Columbus
In this paper, we outline (i) why σ-convergence may not accompany β-convergence, (ii) discuss evidence of β-convergence in the United States, and (iii) use U.S. county-level data containing over 3,000 cross-sectional observations to demonstrate that σ-convergence cannot be detected at the county level across the United States, or within the large majority of the individual U.S. states considered separately. Indeed, in many cases statistically significant σ-divergence is found.
sigma-convergence beta-convergence Solow growth model speed of convergence balanced growth U.S. county-level data income distribution Gini coefficient income equality