Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/2673
Authors: 
Bickenbach, Frank
Bode, Eckhardt
Year of Publication: 
2001
Series/Report no.: 
Kiel Working Paper 1086
Abstract: 
Although it is well known that Markov process theory, frequently applied in the literature on income convergence, imposes some very restrictive assumptions upon the data generating process, these assumptions have generally been taken for granted so far. The present paper proposes, resp. recalls chi-square tests of the Markov property, of spatial independence, and of homogeneity across time and space to assess the reliability of estimated Markov transition matrices. As an illustration we show that the evolution of the income distribution across the 48 coterminous U.S. states from 1929 to 2000 clearly has not followed a Markov process.
Subjects: 
Markov process
chi-square tests
U.S. regional growth
Convergence
JEL: 
O40
R11
C12
Document Type: 
Working Paper

Files in This Item:
File
Size
141.38 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.