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

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Title: Does the business cycle matter for convergence testing? Evidence from U.S. commuting zone level data, 1973-2007
Author(s): Yu, Chenxi
Advisor(s): Hewings, Geoffrey
Department / Program: Urban & Regional Planning
Discipline: Regional Planning
Degree Granting Institution: University of Illinois at Urbana-Champaign
Degree: M.U.P.
Genre: Masters
Subject(s): convergence divergence normal growth period recession-recovery period business /innovation cycle spatial spillover
Abstract: 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.
Issue Date: 2012-02-06
Genre: thesis
URI: http://hdl.handle.net/2142/29734
Rights Information: Copyright 2011 Yu Chenxi
Date Available in IDEALS: 2012-02-06
Date Deposited: 2011-12
 

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