On Growth and States

Xavier X. Sala-i-Martin

Ph.D. Dissertation, Harvard University, 1990

Dissertation Advisors:


This thesis consists of five chapters on the general topic of economc growth. Chapter 1 is a survey of the literature. Chapter 2 calibrates the convergence implications of the Neoclassical Model and shows that this prediction is not born out in the cross-country data.

Chapter 3 shows that there is strong evidence that the States of the United States tend to converge over time. The speed of convergence is much slower than the one predicted by the neoclassical model under the strict interpretation of the word capital. If we interpret capital broadly, my estimates suggest that the capital share in the aggregate production function is larger than 0.8.

In Chapter 4 I show some empirical correlations between Federal Spending and State Growth, and State Business Cycle Fluctuations as well as correlations between State and Local Government expenditure and State Economic Growth.

In Chapter 5 I present an endogenous growth model of labor mobility and show that it predicts convergence only if low human capital workers move more. I also show that migration leaves a great deal of convergence unexplained.


Growth Theories--General, 1110.