Sigma-convergence in the presence of spatial effects
AbstractThis paper explores the implications that spatial effects can hold for the application of measures of sigma-convergence. The bias of a common indicator of convergence is examined for a family of spatial process models including: [a] spatial lag, [b] spatial error, and [c] spatial moving average. We show that the measure of sigma-convergence is sensitive to a number of distinct influences including global dispersion, spatial dependence and a variety of forms of spatial heterogeneity. We suggest a decomposition of the convergence indicator into two components: one reflecting global dispersion and one reflecting the influence of spatial effects. We then illustrate this approach with a case study of the U.S. states over the 1929-2000 period.
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Bibliographic InfoPaper provided by EconWPA in its series Urban/Regional with number 0404008.
Length: 21 pages
Date of creation: 21 Apr 2004
Date of revision: 22 Apr 2004
Note: Type of Document - ps; pages: 21
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convergence; spatial dependence; spatial heterogeneity;
Find related papers by JEL classification:
- R - Urban, Rural, Regional, Real Estate, and Transportation Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-04-25 (All new papers)
- NEP-GEO-2004-04-25 (Economic Geography)
- NEP-URE-2004-04-25 (Urban & Real Estate Economics)
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