Young, Andrew T.; Higgins, Matthew J.; Levy, Daniel - Rimini Centre for Economic Analysis (RCEA) - 2011
-IV estimation method, we find that all statistically significant convergence rates (for 32 individual states) are above 2 percent …, with an average of 8.1 percent. For 7 states the convergence rate can be rejected as identical to at least one other state …’s convergence rate with 95 percent confidence. Convergence rates are negatively correlated with initial income. The size of …