Holmes, Mark J.; Otero, Jesús; Panagiotidis, Theodore - Rimini Centre for Economic Analysis (RCEA) - 2013
Long-run income convergence is investigated in the US context. We employ a novel pair-wise econometric procedure based … on a probabilistic definition of convergence. The time-series properties of all the possible regional income pairs are … distinguish between the cases of strong convergence, where the implied cointegrating vector is [1,-1], and weak convergence, where …
