Dietrich Vollrath, Ph.D.


Contact

Address:
201C McElhinney Hall
University of Houston
Houston, TX 77204

E-mail:
devollrath -AT- uh.edu

The Geographic Origins of Inequality

(in submission)

A common hypothesis is that geographic characteristics were instrumental in determining the historic distribution of wealth. This paper examines that hypothesis empirically using county-level data from the United States in 1860. Controlling explicitly for spatial correlations in inequality across counties, regression results show significant effects of geographic characteristics (growing periods, rainfall patterns, and soil types) on land inequality. The results suggest that geography can account for up to 50% of farm size inequality, while spatial correlations themselves are capable of explaining nearly 40\%. Further results show that for the breadth of land-holding this link is due to crop choice and agricultural productivity, as suggested by Engerman and Sokoloff (1997)


The draft "county_081609.pdf" below is the main manuscript, excluding the map of Theil indices by county.  "county_081609_fig1.pdf" is the map as a separate file, if you are interested.

If you are interested in the data used in this paper, the ZIP file below contains the (poorly documented, I apologize) data and programs to replicate the results. You will need to install the "spatreg", "spatgsa", and "spatdiag" commands in STATA. The "setup" do-file merges the spatial weighting data with the Census data and performs the spatial correlation calculations. The "regress" do-file performs the basic spatial regressions with both lag and error structures. The "mechs" do-file performs the mechanism regressions. The "us theil" do-file does the decomposition of inequality into geographic, spatial, and residual components.

Attachments (3)

  • GeogData.zip - on Mar 15, 2009 1:04 PM by Dietrich Vollrath (version 1)
    993k Download
  • county_081609.pdf - on Aug 19, 2009 11:15 AM by Dietrich Vollrath (version 1)
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  • county_081609_fig1.pdf - on Aug 19, 2009 11:14 AM by Dietrich Vollrath (version 1)
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