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In this study, we examine the importance of multifactor productivity ( MFP) growth in goods and services for U.S. States during 1980-2007 by applying the dual growth accounting framework. We find that MFP growth was relatively high and converged in the goods sector, but was low and did not converge in services. Although low growth in MFP in services was due to declining real user cost, particularly in real estate services, the lack of convergence itself was due to variation in wage growth. We also document that while the gap between productivity and wage growth was higher in goods, the two series were more strongly correlated in services. Finally, states with higher initial human capital experienced higher growth in both sectors. ( JEL O47, R11) [ABSTRACT FROM AUTHOR]

• The paper uses unsaturated night light data to investigate convergence within India over a 15 year period, 1996–2010. • Unlike the widely held view that regional disparities are increasing, we find absolute convergence at the district level. • This convergence happens mainly due to faster catchup in poorer (less well lit) rural areas. Urban Convergence is slower. • Districts that ranked lower in geographical advantages also grew faster during this period. • The results hold even after controlling for major policy initiatives that overlapped this period. A large body of research on India's rapid economic growth since 1991 also documents increasing regional disparities. In this paper, we use unsaturated night light data to challenge this dominant narrative of unequal growth. For 520 districts spanning a 15 year period (1996–2010), we find overwhelming evidence of absolute convergence. Dividing districts further into rural and urban areas, we also show that this catching-up can be attributed mainly to faster growth in rural areas. Geographically disadvantaged districts - those further away from the coast, with lower agricultural suitability, and more rugged terrain also grew faster. The convergence results are not associated with major infrastructure and education initiatives that overlapped with the period of analysis, and also hold for alternative measures of night-lights that cover a longer period of time (1992–2013). [ABSTRACT FROM AUTHOR]