Existing literature on convergence largely ignores the effect of aggregate fluctuations on the evolution of income disparities. However, if regional disparities follow a distinct cyclical pattern in the short-run, the period of analysis should be chosen with great care to avoid distortions in the results. Analysing convergence among 48 conterminous US states through the distribution dynamics approach it is shown that these distortions could be quite sizeable. Moreover, when convergence is analysed over an appropriate period that includes only complete cycles (1989-2007), results show that regional disparities exhibit a pro-cyclical behaviour and that the underlying long-run tendency is towards divergence.

Magrini S., Gerolimetto M. and Engin Duran H. Regional convergence and aggregate business cycle in the United States, Regional Studies. The existing literature on convergence largely ignores the effect of aggregate fluctuations on the evolution of income disparities. However, if regional disparities follow a distinct cyclical pattern in the short run, the period of analysis should be chosen with great care to avoid distortions in the results. By analysing convergence among forty-eight conterminous US states through the distribution dynamics approach, it is shown that these distortions could be quite sizeable. Moreover, when convergence is analysed over an appropriate period that includes only complete cycles (1989-2007), results show that regional disparities exhibit a pro-cyclical behaviour and that the underlying long-run tendency is towards divergence.

Regional Convergence and Aggregate Business Cycle in the United States

MAGRINI, Stefano;GEROLIMETTO, Margherita;
2015-01-01

Abstract

Magrini S., Gerolimetto M. and Engin Duran H. Regional convergence and aggregate business cycle in the United States, Regional Studies. The existing literature on convergence largely ignores the effect of aggregate fluctuations on the evolution of income disparities. However, if regional disparities follow a distinct cyclical pattern in the short run, the period of analysis should be chosen with great care to avoid distortions in the results. By analysing convergence among forty-eight conterminous US states through the distribution dynamics approach, it is shown that these distortions could be quite sizeable. Moreover, when convergence is analysed over an appropriate period that includes only complete cycles (1989-2007), results show that regional disparities exhibit a pro-cyclical behaviour and that the underlying long-run tendency is towards divergence.
2015
49
File in questo prodotto:
File Dimensione Formato  
MagriniGerolimettoDuran-RegStudies2013.pdf

non disponibili

Tipologia: Versione dell'editore
Licenza: Accesso chiuso-personale
Dimensione 3.07 MB
Formato Adobe PDF
3.07 MB Adobe PDF   Visualizza/Apri

I documenti in ARCA sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10278/37222
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 21
  • ???jsp.display-item.citation.isi??? 19
social impact