US regional income convergence: A spatial econometric perspective

Sergio J. Rey, Brett D. Montouri

Research output: Contribution to journalArticle

469 Scopus citations

Abstract

US regional income convergence: a spatial econometric perspective, Reg. Studies 33, 143-156. This study reconsiders the question of US regional economic income convergence from a spatial econometric perspective. Recently developed methods of exploratory spatial data analysis provide new insights on the geographical dynamics of US regional income growth patterns over the 1929-94 period. Strong patterns of both global and local spatial autocorrelation are found throughout the study period, and the magnitude of global spatial autocorrelation is also found to exhibit strong temporal co-movement with regional income dispersion. A spatial econometric analysis of the familiar Baumol specification reveals strong evidence of misspecification due to ignored spatial error dependence. Because of this dependence, shocks originating in one state can spillover into surrounding states, potentially complicating the transitional dynamics of the convergence process.

Original languageEnglish (US)
Pages (from-to)143-156
Number of pages14
JournalRegional Studies
Volume33
Issue number2
DOIs
StatePublished - Apr 1999

Keywords

  • Exploratory spatial data analysis
  • Regional income convergence
  • Spatial econometrics

ASJC Scopus subject areas

  • Environmental Science(all)
  • Social Sciences(all)

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