Bakas, Dimitrios; Panagiotidis, Theodore; Pelloni, Gianluigi - Rimini Centre for Economic Analysis (RCEA) - 2013
from 1990:01 to 2011:12 for 48 U.S. states. Panel unit root tests that allow for crosssectional dependence reveal the …-sectional dependence in the panel, we show that sectoral reallocation is significant not only at the aggregate level but also at the state … heterogeneity and cross-sectional dependence are taken into account. …