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Sigma-convergence in the presence of spatial effects

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Author Info

  • Sergio J. Rey

    (San Diego State University)

  • Boris Dev

    (San Diego State University)

Abstract

This 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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File URL: http://128.118.178.162/eps/urb/papers/0404/0404008.ps.gz
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Bibliographic Info

Paper provided by EconWPA in its series Urban/Regional with number 0404008.

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Length: 21 pages
Date of creation: 21 Apr 2004
Date of revision: 22 Apr 2004
Handle: RePEc:wpa:wuwpur:0404008

Note: Type of Document - ps; pages: 21
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Web page: http://128.118.178.162

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Keywords: convergence; spatial dependence; spatial heterogeneity;

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References

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  15. Raymond J.G.M. Florax & Hendrik Folmer & Sergio J. Rey, 2002. "Specification Searches in Spatial Econometrics: The Relevance of Hendry's Methodology," Urban/Regional 0202001, EconWPA.
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  24. Sergio J. Rey & Mark V. Janikas, 2003. "Convergence and space," Urban/Regional 0311002, EconWPA, revised 16 Nov 2003.
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Citations

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Cited by:
  1. Julie Le Gallo & Sandy Dall'erba, 2008. "Spatial and sectoral productivity convergence between European regions, 1975-2000," Papers in Regional Science, Wiley Blackwell, vol. 87(4), pages 505-525, November.
  2. Pfaffermayr, Michael, 2009. "Conditional [beta]- and [sigma]-convergence in space: A maximum likelihood approach," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 63-78, January.
  3. Sergio J. Rey & Mark V. Janikas, 2004. "STARS: Space-Time Analysis of Regional Systems," Urban/Regional 0406001, EconWPA.
  4. García Callejas, Danny, 2011. "Per Capita GDP Convergence in South America, 1960-2007," BORRADORES DEPARTAMENTO DE ECONOMÍA 008983, UNIVERSIDAD DE ANTIOQUIA - CIE.

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