This paper analyses at micro-area level such consolidated economic growth relationships as those usually inquired at regional level. The first step is to estimate economic performance indicators at municipal levels. Through Chow Li (1971) and Bollino (1998) methodology we estimate value added for the Umbria municipalities for the years 2001-2003. Using previously estimated data for 1991, we perform a convergence analysis which shows the high heterogeneity that characterizes these micro-areas. Two heterogeneous behaviors arise in the region, thus indicating a failure of the convergence hypothesis. On the one side, there is a slow “periphery” effect and on the other side, there is a small cluster of historical municipalities (scattered through the whole region) which displays a higher growth pattern and leads the regional development.
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Find related papers by JEL classification: C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes