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Sigma-convergence in the presence of spatial effects

  • Sergio J. Rey

    (San Diego State University)

  • Boris Dev

    (San Diego State University)

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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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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  13. Sergio J. Rey & Mark V. Janikas, 2003. "Convergence and space," Urban/Regional 0311002, EconWPA, revised 16 Nov 2003.
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