This paper compares some specifications for estimating current sub-state (county or MSA) income. A large number of trials are generated, using the data for Tennessee, in a procedure akin to a series of Monte-Carlo experiments. The out-of-sample forecast errors are examined to see which...

The neoclassical perspective, exemplified by Bertil Ohlin, predicts the fact of interregional per capita income convergence and is therefore often invoked in explaining its causes. However, convergence is also explained by other perspectives, such as Gunnar Myrdal's circular and cumulative...