Sigma Convergence versus Beta Convergence: Evidence from U.S. County‐Level Data

Abstract

In this paper, we outline (i) why σ‐convergence may not accompany β‐convergence, (ii) discuss evidence of β‐convergence in the United States, and (iii) use U.S. county‐level data containing over 3,000 cross‐sectional observations to demonstrate that σ‐convergence cannot be detected at the county level across the United States, or within the large majority of the individual U.S. states considered separately. Indeed, in many cases statistically significant σ‐divergence is found.

Evidence for Economic Convergence in the Eu: The Analysis of Past Eu Enlargements

“…Just to name the most important, we can refer the reader to Matkowski, Prochniak (2004, Prochniak (2006), Arbia et al (2008), Young et al (2008), Rapacki, Prochniak (2009), Vojinovic et al (2010), Szeles (2011), Oplotnik et al (2011), or Libman, Vinokurov (2012.…”

Are GCC Countries Converging or Diverging: Evidence from 1983–2011

“…Dalgaard and Vastrup (2001) show, using GDP per worker data for 121 countries, that the coefficient of variation and the variance suggest different trends in inequality. Young et al (2008) demonstrate, using U.S. county-level data containing over 3,000 cross-sectional observations, that σ-convergence cannot be detected during that time period or within the large majority of the individual U.S. states considered separately. Critics of σ-convergence argue that it provides a necessary, but not sufficient, www.ccsenet.org/ijef International Journal of Economics and Finance Vol.…”

“…In the empirical research, convergence is generally divided into β-convergence, σ-convergence and club convergence. β-convergence exists when the partial association between income growth over time and its initial level is negative (Young et al, 2008). The β-convergence can be divided into absolute β-convergence (unconditional convergence) and conditional β-convergence.…”

“…As for the conditional β-convergence, which is the main argument of the "new theory" of endogenous growth, it implies that economies converge to a different steady-state point of growth since they have different structures (Barro & Sala-i-Martin, 1992). β-convergence remains a primary focus of growth empirics, perhaps because, intuitively, it seems to be necessary for σ-convergence (Young et al, 2008). The absolute and conditional convergence hypotheses have been examined by numerous academics using different practices, procedures and data sets and appear to be strongly accepted by some of the data sets and rejected by others.…”

Spatial changes of the pig population in Hungary

“…A béta-konvergencia ezzel szemben a térben és időben vizsgált változó kiinduló értéke és növekedési üteme közötti negatív korrelációt jelenti (lásd Nemes Nagy [2011]). A béta-konvergencia érvényesülését nem feltétlenül kíséri szigma-konvergencia (Young-Higgins-Levy [2008]). Mivel csak két időpontot tudunk összehasonlítani, ezért a béta-konvergencia becsléséhez galtoni regressziót alkalmazunk minden üzemtípusra: …”