5.1. Kuznets-Type Analysis Based on the Ranking of States

The Kuznets-type analysis leads to distinguish three stylized facts: 1) the persistence of income differentials among states over time, 2) the high-income states display the widest income gaps, and 3) the relation low income - fast growth rates does not hold during recessions. In all three cases, whether a state is considered rich or poor is based on the ranking of the state average income series.