Analysis of club convergence in the U.S. after the Great Recession

Abstract

This paper examines club convergence using per capita real state domestic product and three technological variables, which are patents, research and development, and bachelor's degrees in science and engineering in the 50 states of the U.S. as it exits the Great Recession. This study finds the states that are in higher clubs with respect to per capita real state domestic product also ranks higher in the technological clubs, which is in keeping with clustering around different steady-state equilibria. In terms of policy implications, this paper also finds there to be a more direct nonrandom, statistically significant association between per capita real state domestic product and research and development, and bachelor's degrees in science and engineering and an indirect association with patents.