Spatial Clustering, Inequality and Income Convergence

This paper examines the relationship between spatial clustering and inequality at the county scale with overall state per capita income in the U.S. over the period 1969-2000. For each of the 48 coterminous states we examine measures of inequality and spatial clustering and explore how a state's overall income level may be influenced by, or influence, these measures. Our exploratory analysis utilizes the open- source package Space-Time Analysis of Regional Systems (STARS) to illustrate some new techniques for analyzing regional income dynamics. The results provide insight into the possible relationships between inequality, clustering and relative income levels, and generates a number of interesting avenues for future research.