Does the business cycle matter for convergence testing? Evidence from U.S. commuting zone level data, 1973-2007

This research investigated regional growth patterns under different economic environments. Based on the varying innovation capacities that occur at different stages of the business cycle, I hypothesize that in the more advanced stages of regional development, regional income inequality increases during a normal growth period and decreases during a recession-recovery period. I tested this hypothesis with U.S. per capita income data from 1973 to 2007. This study found evidence supporting the hypothesis: under normal growth periods, regional convergence rate is lower; while during recession-recovery periods, regional convergence rate is higher. This study also found that the overall trend of the convergence rate was decreasing.

Name thesis:degree_name

M.U.P.

Level thesis:degree_level

Thesis

Discipline thesis:degree_discipline

Regional Planning

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2012

Author dc:creator

• Yu, Chenxi

Contributors dc:contributor

• Hewings, Geoffrey J.D.

• convergence
• divergence
• normal growth period
• recession-recovery period
• business /innovation cycle
• spatial spillover

Statement dc:rights

• Copyright 2011 Yu Chenxi

Language dc:language

en

Handle dc:identifier

http://hdl.handle.net/2142/29734

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/29734