Hostname: page-component-7479d7b7d-rvbq7 Total loading time: 0 Render date: 2024-07-12T18:44:49.236Z Has data issue: false hasContentIssue false
  • English
  • Français

Wage and Industry Effects in U.S. Regional Incomes, 1840 to 1987: A CES Wage Index Method

Published online by Cambridge University Press:  27 February 2004

STEPHEN C. COOKE
STEPHEN C. COOKE
Affiliation:
Associate Professor, Department of Agricultural Economics and Rural Sociology University of Idaho, Moscow, ID 83843. E-mail: scooke@uidaho.edu.
Get access Rights & Permissions [Opens in a new window]

Extract

The Solow growth and the Heckscher-Ohlin trade models describe two competing processes through which regional incomes converge over time. Solow's model attributes rising productivity of labor to additional regional capital investments. Heckscher-Ohlin's trade model ascribes the relocation of high value industries to regions with low wage rates. On the other hand Paul Krugman expects incomes to diverge over time as regions with an initial advantage maintain it through ever increasing external economies of scale. The Solow and Heckscher-Ohlin models imply that incomes converge through the movement of high quality labor and capital and high value goods and services into low income regions respectively.

Type
NOTES AND DISCUSSION
Information
The Journal of Economic History , Volume 63 , Issue 4 , December 2003 , pp. 1131 - 1146
Copyright
© 2003 The Economic History Association

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Diewert W. E., Exact and Superlative Index Numbers. Journal of Econometrics 4 (May 1976): 115–45.
Hanna Frank. Contribution of Manufacturing Wages to Differences in per capita Income. Review of Economics and Statistics 33 (February 1951): 18– 28.
Heckscher Eli F. 1955 Mercantilism. New York: MacMillan Co.
Kim Sukkoo. 1997 Economic Integration and Convergence: U.S. Regions, 1840–1987. Cambridge, MA: National Bureau of Economic Research Working Paper 6335,
———. 1998 Economic Integration and Convergence: U.S. Regions, 1840–1987. This Journal 58, no. 3 659–83.
———. 1999 Decomposing U.S. Regional Income: A Reply. This Journal 59, no. 3 779–85.
Krugman Paul. 1991 Geography and Trade. Leuven, Belgium: Leuven University Press and Cambridge, MA: MIT Press
La Croix Sumner. 1999 Economic Integration and Convergence: A Second Decomposition Method. This Journal 59, no. 3 773–78.Google Scholar
Hotelling H. 1935 Demand Functions with Limited Budgets. Econometrica 3 66– 78.Google Scholar
Solow R. 1956 A Contribution to the Theory of Economic Growth. Quarterly Journal of Economics 70 65– 94.Google Scholar
Thomas George B. 1962 Calculus and Analytic Geometry. 3rd ed. Reading, MA: Addison Wesley Publishing Co.