Topic: Module 8: Assignment: Analysis and Convergence Hypothesis
Module 8: Assignment: Analysis and Convergence Hypothesis
Review the lecture ECON_760_M8. Select 7 counties in a US state.
Search https://www.bea.gov/data/income-saving/personal-income-by-state for personal income per capita for those counties. Include in your final assignment from 1971 to 2020. Identify whether beta convergence holds in the chosen state.
- Evaluate the convergence σ. (See slides 36, 47, and 50 of the presentation).
- Construct a scatterplot where the growth rate for the period is on the y-axis, and the personal income per capita for the initial year of the period under analysis is on the x-axis.
- Indicate whether the β convergence holds graphically. (See slides 48 and 49 of the presentation).
- Evaluate graphically if there is spatial dependency in the period of analysis (see slide 29 of the presentation).
- Present the Moran Test (graph) and explain your result (see slides 32 and 34 of the presentation).
- Evaluate β-convergence by running OLS, SAR, and SEM. In each case:
○ Explain the sign of β and its meaning.
○ Calculate and explain the rate of convergence (θ). (See slide 40 of the presentation) Explain R2.
○ Evaluate homoscedasticity (see slide 57 of the presentation).
○ Present a summary of your regressions in GeoDa (see slides 56 and 72 of the presentation).