Economic Development and Public Finance Working Paper Series
REP 06-05, Growth and Convergence in the Space Economy: Evidence from the United States, by John I. Carruthers, Michael K. Hollar and Gordon F. Mulligan, August 2006.
This paper investigates geographic relationships in a dynamic, neoclassical growth
model-namely, a land use based regional adjustment model containing equations for population
density, employment density, and wages-in the United States during the 1980s and 1990s. The
results suggest that, even as the nation's post-industrial economy continues along its path of
decentralization, market-or, more specifically, agglomeration-forces work to maintain an
uneven pattern of development characteristic of the well-known, hierarchical system of regional
economies described by traditional forms of location theory.
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