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Persistence in inequalities across the Spanish regions

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Abstract

In this paper we investigate 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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  • Jesús Rodríguez & Diego Romero de Ávila & Diego Martínez-López, 2005. "Persistence in inequalities across the Spanish regions," Economic Working Papers at Centro de Estudios Andaluces E2005/11, Centro de Estudios Andaluces.
  • Handle: RePEc:cea:doctra:e2005_11
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    Cited by:

    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.
    2. Bluszcz Anna, 2016. "Classification of the European Union member states according to the relative level of sustainable development," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(6), pages 2591-2605, November.

    More about this item

    Keywords

    Convergence; Inequalities; Bayesian Econometrics; Gibbs sampling;

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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