This paper studies the convergence of per-capita GDP across European regions over a fairly long period. Most of the works in the field are based on either cross-sectional or fixed-effects estimates. We propose the estimation of convergence in per-capita GDP across European regions by making use of panel-data models extended to include spatial error autocorrelation (Anselin, 1988; Elhorst, 2003). This will allow us to extend the traditional betaconvergence model to include a rigorous treatment of the spatial correlation among the intercept terms. A spatial analysis of such intercept terms will also be performed in order to shed light on the concept of spatially conditional convergence.
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Paper provided by ISAE - Institute for Studies and Economic Analyses - (Rome, ITALY) in its series ISAE Working Papers with number
51.
Find related papers by JEL classification: C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
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