Income distribution dynamics across European regions: Re-examining the role of space
AbstractThis paper is aimed at exploring the role played by space on the dynamics of regional per capita income disparities in Europe between 1980 and 2005. To do that, an analysis based on the so-called distribution dynamics approach is used as benchmark. Therefore, the external shape of the per capita income distribution and movements within it are examined using both continuous and discrete techniques. This first approach reveals that regional disparities across European regions have decreased over time and, based on the computation of a mobility index, also highlights the existence of a medium mobility degree within the distribution. Subsequently, a spatially conditioned distribution dynamics approach is developed to adequately assess the spatial dimension of the convergence process. In this new approach per capita income of each region is doubly conditioned on its per capita income and the per capita income of its neighbours, both in a previous period. Additionally, a novel mobility index on the basis of a spatial Markov chains approach is devised. The results illustrate the importance of geography in explaining regional per capita income evolution; in particular it is shown that poor regions surrounded by rich regions have a much higher probability of escaping the poverty trap than other poor regions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Economic Modelling.
Volume (Year): 29 (2012)
Issue (Month): 6 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/30411
Regional disparities; Distribution dynamics approach; Spatial dependence; Spatial Markov chains approach;
Find related papers by JEL classification:
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Durlauf,S.N. & Johnson,P.A. & Temple,J.R.W., 2004.
18, Wisconsin Madison - Social Systems.
- Johnson, Paul & Durlauf, Steven N & Temple, Johnathan R. W., 2004. "Growth Econometrics," Vassar College Department of Economics Working Paper Series 61, Vassar College Department of Economics.
- Adolfo Maza & José Villaverde & María Hierro, 2009. "Regional Productivity Distribution in the European Union: Which are the Influencing Factors?," European Planning Studies, Taylor and Francis Journals, vol. 17(1), pages 149-159, January.
- Steven N. Durlauf & Danny T. Quah, 1998.
"The New Empirics of Economic Growth,"
98-01-012, Santa Fe Institute.
- Durlauf,S.N. & Quah,D.T., 1998. "The new empirics of economic growth," Working papers 3, Wisconsin Madison - Social Systems.
- Steven N. Durlauf & Danny T. Quah, 1998. "The New Empirics of Economic Growth," NBER Working Papers 6422, National Bureau of Economic Research, Inc.
- S Durlauf & Danny Quah, 1998. "The New Empirics of Economic Growth," CEP Discussion Papers dp0384, Centre for Economic Performance, LSE.
- Adolfo Maza & José Villaverde, 2009. "Spatial Effects On Provincial Convergence And Income Distribution In Spain: 1985-2003," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(3), pages 316-331, 07.
- Sergio Rey & Brett Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor and Francis Journals, vol. 33(2), pages 143-156.
- Leonardo Monasterio, 2010. "Brazilian spatial dynamics in the long term (1872–2000): “path dependency” or “reversal of fortune”?," Journal of Geographical Systems, Springer, vol. 12(1), pages 51-67, March.
- Hierro, Mara & Maza, Adolfo, 2009. "Structural shifts in the dynamics of the European income distribution," Economic Modelling, Elsevier, vol. 26(3), pages 733-739, May.
- Arbia, Giuseppe & Battisti, Michele & Di Vaio, Gianfranco, 2010.
"Institutions and geography: Empirical test of spatial growth models for European regions,"
Elsevier, vol. 27(1), pages 12-21, January.
- Giuseppe Arbia & Michele Battisti & Gianfranco Di Vaio, 2009. "Institutions and geography: Empirical test of spatial growth models for European regions," Working Papers CELEG 0907, Dipartimento di Economia e Finanza, LUISS Guido Carli.
- Giuseppe Arbia & Michele Battisti & Gianfranco Di Vaio, 2009. "Institutions and geography: Empirical test of spatial growth models for European regions," Quaderni del Dipartimento di Economia, Finanza e Statistica 72/2009, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
- Sergio J. Rey & Mark V. Janikas, 2005. "Regional convergence, inequality, and space," Journal of Economic Geography, Oxford University Press, vol. 5(2), pages 155-176, April.
- Quah, Danny T., 1996. "Regional convergence clusters across Europe," European Economic Review, Elsevier, vol. 40(3-5), pages 951-958, April.
- Julie Gallo & Coro Chasco, 2008.
"Spatial analysis of urban growth in Spain, 1900–2001,"
Springer, vol. 34(1), pages 59-80, February.
- Julie Le Gallo & Coro Chasco-Yrigoyen, 2006. "Spatial Analysis of Urban Growth in Spain (1900-2001)," ERSA conference papers ersa06p878, European Regional Science Association.
- Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers 1286, C.E.P.R. Discussion Papers.
- Isaias Hazarmabeth Salgado-Ugarte & Makoto Shimizu & Toru Taniuchi, 1998. "Nonparametric assessment of multimodality for univariate data," Stata Technical Bulletin, StataCorp LP, vol. 7(38).
- Quah, Danny T, 1997. " Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," Journal of Economic Growth, Springer, vol. 2(1), pages 27-59, March.
- Hall, Peter & Wolff, Rodney C. L. & Yao, Qiwei, 1999. "Methods for estimating a conditional distribution function," Open Access publications from London School of Economics and Political Science http://eprints.lse.ac.uk/, London School of Economics and Political Science.
- Valentina Meliciani, 2006. "Income and employment disparities across European regions: The role of national and spatial factors," Regional Studies, Taylor and Francis Journals, vol. 40(1), pages 75-91.
- Fan, Jianqing & Yao, Qiwei & Tong, Howell, 1996. "Estimation of conditional densities and sensitivity measures in nonlinear dynamical systems," Open Access publications from London School of Economics and Political Science http://eprints.lse.ac.uk/, London School of Economics and Political Science.
- Quah, Danny, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," CEPR Discussion Papers 1586, C.E.P.R. Discussion Papers.
- Stefano Magrini, 2009. "Why Should We Analyse Convergence Using the Distribution Dynamics Approach?," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 8(1), pages 5-34.
- Magrini, Stefano, 2004. "Regional (di)convergence," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 62, pages 2741-2796 Elsevier.
- Catherine Baumont & Cem Ertur & Julie Le Gallo, 2002. "The European Regional Convergence Process, 1980-1995: Do Spatial Regimes and Spatial Dependence Matter?," Econometrics 0207002, EconWPA.
- Maarten Bosker, 2009. "The spatial evolution of regional GDP disparities in the 'old' and the 'new' Europe," Papers in Regional Science, Wiley Blackwell, vol. 88(1), pages 3-27, 03.
- Bashtannyk, David M. & Hyndman, Rob J., 2001.
"Bandwidth selection for kernel conditional density estimation,"
Computational Statistics & Data Analysis,
Elsevier, vol. 36(3), pages 279-298, May.
- Bashtannyk, D.M. & Hyndman, R.J., 1998. "Bandwidth Selection for Kernel Conditional Density Estimation," Monash Econometrics and Business Statistics Working Papers 16/98, Monash University, Department of Econometrics and Business Statistics.
- Azomahou, Théophile T. & El ouardighi, Jalal & Nguyen-Van, Phu & Pham, Thi Kim Cuong, 2011. "Testing convergence of European regions: A semiparametric approach," Economic Modelling, Elsevier, vol. 28(3), pages 1202-1210, May.
- Costas Megir & Danny Quah, 1996. "Regional Convergence Clusters Across Europe," CEP Discussion Papers dp0274, Centre for Economic Performance, LSE.
- Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June.
- Magrini, Stefano, 1999. "The evolution of income disparities among the regions of the European Union," Regional Science and Urban Economics, Elsevier, vol. 29(2), pages 257-281, March.
- Andrés Rodríguez-Pose, 1999. "Convergence or Divergence? Types of Regional Responses to Socio-Economic Change in Western Europe," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 90(4), pages 365-378, November.
- Jesús Mur & Fernando López & Ana Angulo, 2010. "Instability in spatial error models: an application to the hypothesis of convergence in the European case," Journal of Geographical Systems, Springer, vol. 12(3), pages 259-280, September.
- Roberto Ezcurra & Pedro Pascual & Manuel Rapun, 2006. "Regional mobility in the European Union," Applied Economics, Taylor and Francis Journals, vol. 38(19), pages 2237-2253.
- Nazrul Islam, 2003. "What have We Learnt from the Convergence Debate?," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 309-362, 07.
- Fingleton, Bernard, 2008. "Competing models of global dynamics: Evidence from panel models with spatially correlated error components," Economic Modelling, Elsevier, vol. 25(3), pages 542-558, May.
- Lee, Lung-fei & Yu, Jihai, 2010. "Some recent developments in spatial panel data models," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 255-271, September.
- Antonio J. Mora & Esther Vayá & Jordi Suriñach & Enrique López-Bazo, 1999. "original: Regional economic dynamics and convergence in the European Union," The Annals of Regional Science, Springer, vol. 33(3), pages 343-370.
- Angelos Liontakis & Dimitris Kremmydas, 2013. "Food Inflation in EU: Distribution Analysis and Spatial Effects," Working Papers 2013-3, Agricultural University of Athens, Department Of Agricultural Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.