A note on the spatial correlation structure of county-level growth in the US

This paper examines the spatial correlation structure of county-level growth across the contiguous United States. Estimated spatial correlograms using data on four different measures of aggregate economic activity-population, employment, income, and earnings-over the period 1984-1994 indicate that cross-county interdependence is limited to relatively short ranges of distance. For each of the measures, the average correlation between the growth rates of two counties approaches zero within a range of approximately 200 miles. Moreover, the rate at which correlations decline with distance is not uniform. Inside of roughly 40 miles correlations show only a very slow rate of decline whereas beyond this range they drop off at a substantially higher rate.