Construct a scatterplot where the growth rate for the period is on the y-axis, and the personal income per capita for the initial year of the period under analysis is on the x-axis.

Module 8: Assignment: Analysis and Convergence Hypothesis
Module 8: Assignment: Analysis and Convergence Hypothesis
Review the lecture ECON_760_M8. Select 7 counties in a US state.
Search https://www.bea.gov/data/income-saving/personal-income-by-state for personal income per capita for those counties. Include in your final assignment from 1971 to 2020. Identify whether beta convergence holds in the chosen state.
1. Evaluate the convergence σ.
2. Construct a scatterplot where the growth rate for the period is on the y-axis, and the personal income per capita for the initial year of the period under analysis is on the x-axis.
3. Indicate whether the β convergence holds graphically.
4. Evaluate graphically if there is spatial dependency in the period of analysis .
5. Present the Moran Test  and explain your result .
6. Evaluate β-convergence by running OLS, SAR, and SEM. In each case:
○ Explain the sign of β and its meaning.
○ Calculate and explain the rate of convergence (θ). Explain R2.
○ Evaluate homoscedasticity .
○ Present a summary of your regressions in GeoDa

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