The Structural Stability of the US Regions: Evidence and Theoretical Underpinnings

Abstract

A follow-up to a recent paper on the US regional dynamic structure is presented. Taking off from the previous work, where a system of two coupled ordinary differential equations on relative regional population and per-capita income was formulated and tested, the present paper outlines certain theoretical ramifications. They include: the derivation of a regional potential, fast and slow motions, and a two-time-scale maximum-entropy principle. Some policy implications are drawn.