Arbeitspapier

Dynamic Spatial Modelling of Regional Convergence Processes

Econometric analysis of convergence processes across countries or regions usually refers to a transition period between an arbitrary chosen starting year and a fictitious steady state. Panel unit root tests and panel cointegration techniques have proved to belong to powerful econometric tools if the conditions are met. When referring to economically defined regions, though, it is rather an exception than the rule that coherent time series are available. For this case we introduce a dynamic spatial modelling approach which is suitable to trace regional adjustment processes in space instead of time. It is shown how the spatial error-correction mechanism (SEC model) can be estimated depending on the spatial stationarity properties of the variables under investigation. The dynamic spatial modelling approach presented in this paper is applied to the issue of conditional income and productivity convergence across labour market regions in unified Germany.

Language
Englisch

Bibliographic citation
Series: HWWA Discussion Paper ; No. 261

Classification
Wirtschaft
General Regional Economics: Econometric and Input-Output Models; Other Models
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Subject
Regional convergence
dynamic spatial models
spatial unit roots
spatial error-correction
Regionale Entwicklung
Entwicklungskonvergenz
Raumwirtschaftstheorie
Ökonometrisches Modell
Schätzung
Theorie
Deutschland

Event
Geistige Schöpfung
(who)
Lauridsen, Jørgen
Kosfeld, Reinhold
Event
Veröffentlichung
(who)
Hamburg Institute of International Economics (HWWA)
(where)
Hamburg
(when)
2004

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Lauridsen, Jørgen
  • Kosfeld, Reinhold
  • Hamburg Institute of International Economics (HWWA)

Time of origin

  • 2004

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