Economic Development and Volatility among the States

  • Thomas Grennes, Asli Leblebicioglu

Abstract

Using state level personal income, we empirically demonstrate the importance of economic development and diversification for the changes in volatility. We show that volatility of income growth is initially decreasing in the level of income and the degree of diversification. Yet, as state income continues rising, its volatility starts increasing. We also… (More)

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