# 13-165/VIII (2013-10-11)

Author(s)
Stilianos Alexiadis, Ministry of Rural Development & Foods, Greece; Konstantinos Eleftheriou, Abu Dhabi University, United Arab Emirates; Peter Nijkamp, VU University Amsterdam
Keywords:
Intraregional income disparities, Vector Error Correction Model, Factor Analysis
JEL codes:
C22, R10

This paper examines the long-run trends in per-capita income across the US states (1929-2005). Our analysis advocates and implements a Vector Error Correction Model (VECM), in order to investigate whether disparities in per-capita income embody a stable long-run relation. The empirical application is supplemented with Factor Analysis to identify groups of States with a common behaviour in terms of per-capita income.