New Evidences about Convergence Across States

Research output: Contribution to journalArticle

Abstract

There are many empirical studies trying to test if there is income convergence across metropolitan areas in the continental United States. Drennan.et.al (J. of Economic Geography, 2004) claim that income divergence among metropolitan economies is diverging for the period 1969-2001 by applying univariate unit root tests to the time series data. This paper brings new information to this area of study by using linear unit root tests and non-linear unit root test of Exponential Smooth Auto-Regressive Augmented Dickey- Fuller (ESTAR-ADF) unit root test to the time series data for the period 1929-2005. Our results find evidence of stationarity for time series and, thereby supporting beta and sigma convergence among states.

Original languageEnglish
Pages (from-to)7-18
Number of pages12
JournalInternational Research Journal of Finance and Economics
Volume1
Issue number27
Publication statusPublished - May 2009
Externally publishedYes

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Unit root tests
Time series data
σ-convergence
Stationarity
Empirical study
β-convergence
Metropolitan areas
Income
Economic geography
Income convergence
Divergence

Cite this

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New Evidences about Convergence Across States. / Lau, Chi Keung; Marco.

In: International Research Journal of Finance and Economics, Vol. 1, No. 27, 05.2009, p. 7-18.

Research output: Contribution to journalArticle

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