A regression analysis updating the study by Barro and Sala – I – Martin of income convergence across states. Their study concluded that state’s income per capita were converging to constant value and will at some time in the future be equal across all states. One shortcoming of their analysis was that they considered only nominal income per capita, not adjusted for inflation, and they did not consider cost of living differences across states. You will need to download the appropriate data, perform the appropriate regression, and analyze the results comparing the results to the original study. Gather state personal income and population data from the BEA web site (annual probably OK). Also, download an economic series to deflate real income. It would be helpful to locate economic time series that measures the relative cost of living differences between states. It may be OK to use state real GSP instead. This study also divided Classicals and Keynesians. A paper of the problem, analysis and results is to be handed in on the day of the final. It would be useful to have Microsoft Word with Microsoft Equation.Need to have data+ word.
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