Analysis of County Employment and Income Growth in Appalachia: A Spatial Simultaneous-Equations Approach

39 Pages Posted: 11 Jun 2007

See all articles by Gebremeskel H. Gebremariam

Gebremeskel H. Gebremariam

West Virginia University - Division of Resource Management

Tesfa G. Gebremedhin

West Virginia University - Davis College of Agriculture, Forestry, and Consumer Sciences

Peter V. Schaeffer

West Virginia University

Date Written: June 7, 2007

Abstract

County median household income and employment growth rates tend to be characterized by spatial interaction. A spatial simultaneous-equations growth equilibrium model was estimated using GS2SLS and GS3SLS. The results indicate strong feedback simultaneity between employment and median household income growth rates. They also show spatial autoregressive lag simultaneity and spatial cross-regressive lag simultaneity with respect to employment and median household income growth rates, as well as spatial correlation in the error terms. Estimates of structural parameters show strong agglomerative effects and significant conditional convergence with respect to employment growth and median household income growth in Appalachia in the 1990s.

Keywords: employment, income, spatial analysis, Appalachia

JEL Classification: C3, R1, R5

Suggested Citation

Gebremariam, Gebremeskel H. and Gebremedhin, Tesfa G. and Schaeffer, Peter V., Analysis of County Employment and Income Growth in Appalachia: A Spatial Simultaneous-Equations Approach (June 7, 2007). Available at SSRN: https://ssrn.com/abstract=992210 or http://dx.doi.org/10.2139/ssrn.992210

Gebremeskel H. Gebremariam (Contact Author)

West Virginia University - Division of Resource Management ( email )

Morgantown, WV 26506
United States

Tesfa G. Gebremedhin

West Virginia University - Davis College of Agriculture, Forestry, and Consumer Sciences ( email )

Morgantown, WV 26506
United States

Peter V. Schaeffer

West Virginia University ( email )

P.O. Box 6108
Morgantown, WV 26506-6108
United States
304-293-5572 (Phone)
304-293-3752 (Fax)

HOME PAGE: http://www.petervschaeffer.com

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