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Persistence in inequalities across the Spanish regions

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Author Info
Jesús Rodríguez López () (Department of Economics, Universidad Pablo de Olavide)
Diego Martínez López () (Centro de Estudios Andaluces y Department of Economics, Universidad Pablo de Olavide)
Diego Romero de Ávila Torrijos () (Department of Economics, Universidad Pablo de Olavide)

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Abstract

This paper investigates several issues concerning persistence in inequalities of relative income per capita among the Spanish regions over 1980-2002. For that purpose we take a Bayesian approach which extends the work by Canova and Marcet (1995). Firstly, we study to what extent there exists a fixed effect bias in the standard cross-section estimates, and we find that the speed of convergence is indeed underestimated. Secondly, we provide a battery of results in which steady states and convergence rates have been obtained for a continuum of prior distributions. Finally, we also deal with persistence in inequalites by determining whether initial conditions matter in the distribution of regional steady states, and our conclusion is that regional disparities tend to persist over time in Spain.

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File URL: http://www.upo.es/serv/bib/wps/econ0607.pdf
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File Function: First version, 2006
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Publisher Info
Paper provided by Universidad Pablo de Olavide, Departamento de Economía in its series Working Papers with number 06.07.

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Length: 22 pages
Date of creation: Mar 2006
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Handle: RePEc:pab:wpaper:06.07

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Related research
Keywords: Convergence Inequalities Bayesian Econometrics Gibbs sampling.

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Find related papers by JEL classification:
C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Bayesian Analysis
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

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References listed on IDEAS
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  1. Caselli, Francesco & Esquivel, Gerardo & Lefort, Fernando, 1996. " Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics," Journal of Economic Growth, Springer, vol. 1(3), pages 363-89, September.
  2. Sala-i-Martin, Xavier X., 1996. "Regional cohesion: Evidence and theories of regional growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1325-1352, June. [Downloadable!] (restricted)
    Other versions:
  3. Angel de la Fuente, 2002. "Convergence across countries and regions: theory and empirics," UFAE and IAE Working Papers 555.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
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  4. Etsuro Shioji, 2004. "Initial Values and Income Convergence: Do "The Poor Stay Poor"?," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 444-446, 05. [Downloadable!] (restricted)
  5. Barro, R.J. & Mankiw, N.G. & Sala-i-Martin, X., 1992. "Capital Mobility in Neoclassical Models of Growth," Papers 655, Yale - Economic Growth Center.
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  6. Fabio Canova, 2004. "Testing for Convergence Clubs in Income Per Capita: A Predictive Density Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(1), pages 49-77, 02. [Downloadable!] (restricted)
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  7. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May. [Downloadable!] (restricted)
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  8. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-51, April. [Downloadable!] (restricted)
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  9. Maddala, G S & Wu, S, 2000. "Cross-Country Growth Regressions: Problems of Heterogeneity, Stability and Interpretation," Applied Economics, Taylor and Francis Journals, vol. 32(5), pages 635-42, April. [Downloadable!] (restricted)
  10. Lee, Kevin & Pesaran, M Hashem & Smith, Ron, 1997. "Growth and Convergence in Multi-country Empirical Stochastic Solow Model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(4), pages 357-92, July-Aug.. [Downloadable!]
  11. Canova, Fabio & Marcet, Albert, 1995. "The Poor Stay Poor: Non-Convergence Across Countries and Regions," CEPR Discussion Papers 1265, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  12. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Diego Martínez López & Jesús Rodríguez López, 2006. "The role of new technologies in the economic growth of Andalucia," Economic Working Papers at Centro de Estudios Andaluces E2006/19, Centro de Estudios Andaluces. [Downloadable!]
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