Knowledge Matters: The Long‐Run Determinants of State Income Growth

16 Pages Posted: 21 Apr 2012

See all articles by Paul W. Bauer

Paul W. Bauer

Federal Reserve Banks - Federal Reserve Bank of Cleveland

Mark E. Schweitzer

affiliation not provided to SSRN

Scott Shane

Case Western Reserve University - Department of Economics

Date Written: May 2012

Abstract

State per capita income differences narrowed considerably between 1939 and 1976. However, this convergence has been incomplete. We examined the sources of relative per capita income growth using an augmented growth model and a panel of the 48 contiguous states from 1939 to 2004. We explored the effect of tax burdens, public infrastructure, size of private financial markets, rates of business failure, industry structure, climate, educational attainment, and technology production. Our results show that a state's technology and its college attainment rates are the main factors that allow some state's per capita income to remain above those of other states.

Suggested Citation

Bauer, Paul W. and Schweitzer, Mark E. and Shane, Scott A., Knowledge Matters: The Long‐Run Determinants of State Income Growth (May 2012). Journal of Regional Science, Vol. 52, Issue 2, pp. 240-255, 2012, Available at SSRN: https://ssrn.com/abstract=2043367 or http://dx.doi.org/10.1111/j.1467-9787.2011.00729.x

Paul W. Bauer (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Cleveland ( email )

PO Box 6387
Cleveland, OH 44101
United States
216-579-3021 (Phone)

Mark E. Schweitzer

affiliation not provided to SSRN

No Address Available

Scott A. Shane

Case Western Reserve University - Department of Economics ( email )

Cleveland, OH 44106
United States

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