233 CONVERGENCE 0.025 GA TX ARL 0.02 MD DE L UT LA NJ CT 0.015 MA NY PAWA AB CA 0.01 WY AZ 0.005 -0.6 -0.2 0.2 O.6 1 1.4 1.8 LOG(1880 PER CAPITA PERSONAL INCOME) FIG. 1-Growth rate from 1880 to 1988 vs. 1880 per capita income Barrow and Sala-i-Martin (1992), Convergence PER CAPITA GROWTH RATE, 1880-1988
233 CONVERGENCE 0.025 GA TX ARL 0.02 MD DE L UT LA NJ CT 0.015 MA NY PAWA AB CA 0.01 WY AZ 0.005 -0.6 -0.2 0.2 O.6 1 1.4 1.8 LOG(1880 PER CAPITA PERSONAL INCOME) FIG. 1-Growth rate from 1880 to 1988 vs. 1880 per capita income Barrow and Sala-i-Martin (1992), Convergence PER CAPITA GROWTH RATE, 1880-1988
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter19: The Macroeconomic Perspective
Section: Chapter Questions
Problem 31P: Ethiopia has a GDP of 8 billion (measured in U.S. dollars) and a population of 55 million. Costa...
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The horizontal axis of the figure below shows log of real personal income per person in 1880 for 47 U.S. states. The vertical axis shows the average annual growth rate of real personal income per capita for each state from 1880 to 2000. The two-letter abbreviation identifies the state. The solid line is the straight line that provides the best fit to the relation between the growth rate of income per person and the level of income per person in 1880. Based on this figure, discuss whether the U.S. states do or do not exhibit convergence. Explain.
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