Unit root tests of sigma income convergence across US metropolitan areas

Matthew P. Drennan, José Lobo, Deborah Strumsky

Research output: Contribution to journalArticlepeer-review

28 Scopus citations

Abstract

The standard deviation of metropolitan per capita personal income (PCPI) and metropolitan average wage per job (AWPJ) provide straightforward indicators of unconditional sigma convergence for metropolitan economies within the United States. Using data for all metropolitan areas in the continental United States for the period 1969-2001, we tested for the unconditional sigma income convergence hypothesis by applying two unit root tests to the time series of the two standard deviations. Our results indicate that the time series can be described as random walks with drift, thereby supporting the claim that income divergence among metropolitan economies is not decreasing.

Original languageEnglish (US)
Pages (from-to)583-595
Number of pages13
JournalJournal of Economic Geography
Volume4
Issue number5
DOIs
StatePublished - Nov 1 2004

Keywords

  • Metropolitan income convergence
  • Unit root test

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Economics and Econometrics

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