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A spatial model of the Keynesian theory for Portugal

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  • Martinho, Vítor João Pereira Domingues

Abstract

With this work we try to present a spatial model for Portugal based on the Keynesian theory. We built the model analysing, through cross-section estimation methods, the influence of spatial effects in productivity in the NUTs III economic sectors of mainland Portugal from 1995 to 1999 and from 2000 to 2005, considering the Verdoorn relationship. Bearing in mind the results of estimations, it can been that the effects of spatial spillovers, spatial lags and spatial error, influence the Verdoorn relationship when it is applied to the economic sectors of Portuguese regions.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 33636.

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Date of creation: 2011
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Handle: RePEc:pra:mprapa:33636

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Keywords: Spatial Econometric; Verdoorn Law; Portuguese Regions;

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  1. Raymond J.G.M. Florax & Hendrik Folmer & Sergio J. Rey, 2002. "Specification Searches in Spatial Econometrics: The Relevance of Hendry's Methodology," Urban/Regional, EconWPA 0202001, EconWPA.
  2. Baltagi, Badi H. & Song, Seuck Heun & Koh, Won, 2003. "Testing panel data regression models with spatial error correlation," Journal of Econometrics, Elsevier, Elsevier, vol. 117(1), pages 123-150, November.
  3. Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 26(1), pages 77-104, February.
  4. Anselin, Luc, 2002. "Under the hood Issues in the specification and interpretation of spatial regression models," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 27(3), November.
  5. Bera, Anil K. & Yoon, Mann J., 1993. "Specification Testing with Locally Misspecified Alternatives," Econometric Theory, Cambridge University Press, Cambridge University Press, vol. 9(04), pages 649-658, August.
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