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ABSTRACT This paper finds club convergence within the 50 U.S. states using the Phillips and Sul regression-based convergence test with per capita real state domestic product from 1997 to 2017.… Click to show full abstract
ABSTRACT This paper finds club convergence within the 50 U.S. states using the Phillips and Sul regression-based convergence test with per capita real state domestic product from 1997 to 2017. Two clubs with diverging transition paths are found. Clubs 1 and 2 mimics the divide that is seen in the flow of funds from the federal government to the states. Hence, the Phillips and Sul logt test is telling the tale of there being two Americas if all factors remain the same, but this need not be the case with the proper policy prescription.
Journal Title: Applied Economics
Year Published: 2019
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