Arbeitspapier
Spatial Convergence of Regions Revisited: A Spatial Maximum Likelihood Systems Approach
This paper suggests that one should account for the endogeneity of important explanatory variables and the persistence of technology shocks when analyzing spatial convergence among regions.Specifically, it is argued that a systems approach is called for that includes the average growth rate and the initial income level as the endogenous variables. For 212 European regions the estimation results reveal a substantial correlation between the disturbances of the equation explaining initial income per capita and that of its subsequent average growth rate. Moreover, the estimated speed of convergence is found substantially higher in a systems framework. This holds true for both spatial conditional and unconditional convergence.
- Language
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Englisch
- Bibliographic citation
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Series: Working Papers in Economics and Statistics ; No. 2009-07
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
Multiple or Simultaneous Equation Models: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Spatial Solow model
Spatial systems maximum likelihood estimation
Europeanregions
Regionale Einkommensverteilung
Regionales Wachstum
Entwicklungskonvergenz
Technische Effizienz
Maximum-Likelihood-Methode
Schätzung
Europa
- Handle
- Last update
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20.09.2024, 8:21 AM CEST
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Pfaffermayr, Michael
- University of Innsbruck, Department of Public Finance
Time of origin
- 2009