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Inter‐state dynamics of invention activities, 1930–2000
Author(s) -
Co Catherine Y.,
LandonLane John S.,
Yun MyeongSu
Publication year - 2006
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.909
Subject(s) - convergence (economics) , limiting , markov chain , distribution (mathematics) , per capita , econometrics , economics , dynamics (music) , economic geography , mathematics , statistics , demography , engineering , economic growth , physics , sociology , mechanical engineering , mathematical analysis , population , acoustics
We study the dynamics of the cross‐section distribution of patents per capita for the 48 continental US states from 1930 to 2000 using a discrete‐state Markov chain. We test for and find evidence in favor of the (knowledge) convergence hypothesis. The distribution of patents is converging to a limiting distribution that is significantly more concentrated than its initial distribution. States in the extreme are more mobile than states in the middle of the cross‐sectional distribution and are likely to move to the middle. However, the rate of convergence to the limiting distribution is ‘slow’. Copyright © 2006 John Wiley & Sons, Ltd.