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σ‐convergence in the presence of spatial effects

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  • Sergio J. Rey
  • Boris Dev

Abstract

. This paper explores the implications that spatial effects can hold for the application of measures of σ‐convergence. The bias of a common indicator of σ‐convergence is examined for a family of spatial process models including: [a] spatial lag, [b] spatial error, and [c] spatial moving average. We show that the measure of σ‐convergence is sensitive to a number of distinct influences including global dispersion, spatial dependence, and a variety of forms of spatial heterogeneity. We suggest a decomposition of the convergence indicator into two components: one reflecting global dispersion, and one reflecting the influence of spatial effects. We then illustrate this approach with a case study of the U.S. states over the 1929–2000 period.

Suggested Citation

  • Sergio J. Rey & Boris Dev, 2006. "σ‐convergence in the presence of spatial effects," Papers in Regional Science, Wiley Blackwell, vol. 85(2), pages 217-234, June.
    • Handle: RePEc:bla:presci:v:85:y:2006:i:2:p:217-234
    DOI: 10.1111/j.1435-5957.2006.00083.x
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