Do Income Disparities Dissipate Across the US States? Experimenting with a Vector Error Correction Model

STLS / US - VECM 6 . 1 : A Vector Error - Correction Forecasting Model of the US Economy

Any research or policy analysis exercise in economics must be consistent with the timeseries properties of observed macroeconomic data. This paper discusses in detail the specification of a six-variable vector error-correction forecasting model. We test for cointegration among those variables: the CPI, the implicit price deflator for GDP, real money balances (M1), the federal funds rate, the yi...

A nonparametric analysis of income convergence across the US states

In this paper I apply the nonparametric methods proposed by Quah to data on US state relative income levels. In contrast to Quah’s results using cross-country data I find no evidence of polarization in the cross-state income distribution. The long-run density implied by the estimates is strongly unimodal. This finding is consistent with the results of previous analyses of convergence in state i...

The Relationship between Education and Health: Vector Error Correction Model (VECM)

Background & objectives: Despite the importance and impact of health and education on economic growth in countries, the causal relationship between education and health is important to policymaking. This study aimed to investigate the causality relationship between education and health in the short and long runs using the Vector Error Correction Model (VECM) in Iran. Method: This was an analyt...

Survey of Money- Output Causality: Case Study of Iran, Based on Vector Error Correction Model (VECM)

This study investigated the dynamic relationship between money, prices and output in a multivariate structure of casualty analysis in Iran for the two period of 1969 to 2012 (entire period) and 1989 to 2012 (sub-period). This statistical framework has been projected for situations where causal links may have changed over the sample period. Results of a three-variable Vector Error Correction Mod...

A Vector Error-Correction Forecasting Model of the U.S. Economy