Intra-distribution dynamics of regional per-capita income in Europe: evidence from alternative conditional density estimators
AbstractThis paper compares different conditional density estimators to analyze the cross-sectional distribution dynamics of regional per-capita incomes in Europe during the period 1980-2002. First, a kernel estimator with fixed bandwidth gives evidence of convergence. With a modified estimator with variable bandwidth and mean-bias correction, the dominant income dynamics is that of persistence and lack of cohesion: only a fraction of very poor regions improves its position over time converging towards a low relative income. An alternative graphical technique (more informative than the traditional contour plot) is also proposed to visualize conditional densities. Finally, a first-order spatial autoregressive model is applied to estimate the effect of spatial dependence on the evolution of income distribution.
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Bibliographic InfoPaper provided by ISTAT - Italian National Institute of Statistics - (Rome, ITALY) in its series ISAE Working Papers with number 75.
Length: 40 pages
Date of creation: Jan 2007
Date of revision:
Intra-distribution dynamics; Conditional density estimators; Convergence; European regions; Spatial dependence;
Other versions of this item:
- Roberto Basile, 2010. "Intra-distribution dynamics of regional per-capita income in Europe: evidence from alternative conditional density estimators," Statistica, Department of Statistics, University of Bologna, vol. 70(1), pages 3-22.
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- 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
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