IMF Working Papers

Institutions versus Geography: Subnational Evidence from the United States

By Alma Romero-Barrutieta, Eric V. Clifton

July 1, 2006

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Format: Chicago

Alma Romero-Barrutieta, and Eric V. Clifton "Institutions versus Geography: Subnational Evidence from the United States", IMF Working Papers 2006, 169 (2006), accessed May 19, 2025, https://doi.org/10.5089/9781451864298.001

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Empirical studies of the impact of geography and institutions on growth and development at the international level have become common place, but the high degree of abstraction at that level has led to calls for subnational studies. This paper examines these issues for a region of the United States, Appalachia, where the specific factors at play are identified and measured thus obviating the need for instrumental variable techniques. The evidence suggests that initial conditions, including both geography and institutions, are very important for economic development, having significant effects lasting hundreds of years.

Subject: Estimation techniques, Institutional arrangements for revenue administration, Personal income, Poverty, Spatial models

Keywords: Parameter estimate, Poverty rate, WP

Publication Details

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