Abstract
The paper attempts to empirically quantify the factors underlying sigma convergence among the contiguous states of the U.S. Using annual state data the study finds a significant effect of the wedge in explaining the variation in state per capita productivity. Employing a time series framework, the paper finds that an increase in the variation of 1 percent in the wedge will increase the variation in per capita productivity by roughly 0.12 percent in the short run and roughly 0.45 to 0.55 percent in the long run.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Abramovitz, M. "Catching Up, Forging Ahead, and Falling Behind,"Journal of Economic History, 1986, pp. 385–406.
Alam, S. "Convergence Tendencies: Some Time-Series Results,"Southern Economic Journal, 1991, pp. 841–7.
__. "Convergence in Developed Countries: An Empirical Investigation,"Weltwirtschaftliches Archiv, 1992, pp. 189–200.
Barro, R.; Mankiw, N.; Sala-i-Martin, X. "Capital Mobility in Neoclassical Models of Growth,"American Economic Review, 1995, pp. 103–15.
Barro, R.; Sala-i-Martin, X. "Convergence,"Journal of Political Economy, 1992, pp. 223–51.
__. "Convergence Across States and Regions,"Brookings Papers on Economic Activity, 1, 1991, pp. 1107–82.
Baumol, W. "Productivity Growth, Convergence, and Welfare: What the Long-Run Data Show,"American Economic Review, 1986, pp. 1072–85.
Bean, C.; Symons, J. "Ten Years of Mrs. T,"NBER Macroeconomics Annual, 1989, pp. 13–61.
Costello, D. "A Cross-Country Comparison of Productivity Growth,"Journal of Political Economy, 1993, pp. 207–22.
De Long, B. "Productivity Growth, Convergence and Welfare: Comment,"American Economic Review, 1988, pp. 1138–54.
Dollar, D.; Wolff, E. "Convergence of Industry Labor Productivity Among Advanced Economies,"The Review of Economics and Statistics, 1988, pp. 549–58.
Dowrick, S.; Nguyen, D. "OECD Economic Growth,"American Economic Review, 1989, pp. 1010–30.
Heitger, B. "Corporatism, Technological Gaps and Growth in OECD Countries,"Weltwirtschaftliches Archiv, 1987, pp. 463–73.
Jasinowski, J. "The Contribution of Manufacturing to Long-Term Economic Growth,"Eastern Economic Journal, 1992, pp. 65–72.
Keil, M.; Symons, J. "An Analysis of Canadian Unemployment,"Canadian Public Policy, 1990, pp. 1–16.
Layard, R.; Nickell, S.; Jackman, R.Unemployment: Macroeconomic Performance and the Labour Market, Oxford, United Kingdom: Oxford University Press, 1991.
Lucas, R. "On the Mechanics of Economic Development,"Journal of Monetary Economics, 1988, pp. 3–42.
Mallick, R. "Convergence of State Per Capita Incomes: An Examination of Its Sources,"Growth and Change, 1993, pp. 321–40.
Mankiw, N.; Romer, D.; Weil, D. "A Contribution to the Empirics of Economic Growth,"Quarterly Journal of Economics, 1992, pp. 407–37.
Newell, A.; Symons, J. "Corporatism, Laissez-Faire and the Rise in Unemployment,"European Economic Review, 1987, pp. 561–614.
Romer, P. "Human Capital and Growth: Theory and Evidence," Carnegie-Rochester Series on Public Policy, 1990, pp. 251–86.
Tallman, E.; Wang, P. "Human Capital Investment and Economic Growth: New Routes in Theory Address Old Questions,"Economic Review, Federal Reserve Bank of Atlanta, 1992, pp. 1–12.
U.S. Department of Commerce. Bureau of Economic Analysis, Washington, DC: U.S. Government Printing Office, various years.
__. "Manpower Report of the President," Washington, DC: U.S. Government Printing Office.
U.S. Department of Labor. "Geographic Profiles of the Employment and Unemployment," Bureau Washington, DC: U.S. Government Printing Office, various years.
__.Handbook of Labor Statistics, Washington, DC: U.S. Government Printing Office, 1986, 1989.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Vohra, R. The wedge and sigma convergence among U.S. states. Atlantic Economic Journal 24, 371–377 (1996). https://doi.org/10.1007/BF02298438
Issue Date:
DOI: https://doi.org/10.1007/BF02298438