Alexiadis, Stilianos Eleftheriou, Konstantinos Nijkamp, Peter
Year of Publication:
Tinbergen Institute Discussion Paper 13-165/VIII
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.
Intraregional income disparities Vector Error Correction Model Factor Analysis