Do economies converge? Evidence from a panel of U.S. states
Article Abstract:
A study aims to establish a convergence among the 48 contiguous US states and, if established, the absoluteness of such convergence. Economies were found to converge only when technology remains in line with a common trend. An occurring convergence is unlikely to be absolute unless there are no economy fixed effects in technology, share of capital, and rental rate. An analysis of data on the share of capital, level of technology and rental rate showed that contiguous US states rapidly converged to disparate levels.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
The risky spread, investment, and monetary policy transmission: evidence on the role of asymmetric information
Article Abstract:
Euler equations were used to analyze the importance of finance constraints that may arise when important information assymmetries exist in financial markets. A symmetric information specification of investment behavior was rejected in favor of an agency cost specification in which a divergence of the shadow cost of finance from the market interest rate is possible. Empirical estimates suggest that shocks to net worth can significantly increase the shadow cost of finance.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
The effects of monetary policy shocks: evidence from the flow of funds
Article Abstract:
Monetary policy shocks are significant in changing the flow of funds in various sectors of the US economy. Using flow of funds account data for analysis, it was observed that households react to shocks by maintaining their assets and liabilities within a certain period of time. Moreover, businesses increase their funds for approximately one year, after which it subsequently decreases.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Fundamental q, cash flow, and investment: evidence from farm panel data. Structural models of the liquidity effect
- Abstracts: Unemployment equilibria and input prices: theory and evidence from the United States. Insights or forecasts? An evaluation of a computable general equilibrium model of Spain
- Abstracts: Investment in energy efficiency: do the characteristics of firms matter? Effective rates of protection when domestic and foreign goods are imperfect substitutes: the case of Thailand
- Abstracts: Implementation with coalition formation: a complete characterization. An algorithm for checking strong Nash implementability
- Abstracts: Short-term forecasting of industrial electricity consumption in Brazil. Modelling the impact of temperature on electricity consumption in the Eastern Province of Saudi Arabia