Initial Values and Income Convergence: Do “The Poor Stay Poor”?
The Review of Economics and Statistics
2004
A panel data estimation finds a high speed of income convergence among the U.S. states. However, initial incomes show a pattern which is difficult to explain by the estimated model. A simulation study shows that this pattern can be explained much more naturally when we assume that true convergence is slow.
- DOI
- 10.1162/003465304774201888
- Volume
- 86 (1)
- Pages
- 444-446
- Language
- en
- Export
- BibTeX
- Sources
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