IQ and the wealth of states

Abstract

In IQ and the Wealth of Nations (2002), Lynn and Vanhanen estimate the mean IQs of 185 nations and demonstrate that national IQs strongly correlate with the macroeconomic performance of the nations, explaining about half of the variance in GDP per capita. I seek to replicate Lynn and Vanhanen's results across states within the United States. I first estimate “state IQs” from the SAT data, and show that the state IQs correlate moderately with the economic performance of the states, explaining about a quarter of the variance in GSP (gross state product) per capita.