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Sigma-convergence in the presence of spatial effects

Author

Listed:
  • 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.

Suggested Citation

  • Sergio J. Rey & Boris Dev, 2004. "Sigma-convergence in the presence of spatial effects," Urban/Regional 0404008, University Library of Munich, Germany, revised 22 Apr 2004.
  • Handle: RePEc:wpa:wuwpur:0404008
    Note: Type of Document - ps; pages: 21
    as

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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. 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.
    2. García Callejas, Danny, 2011. "Per Capita GDP Convergence in South America, 1960-2007," BORRADORES DEPARTAMENTO DE ECONOMÍA 008983, UNIVERSIDAD DE ANTIOQUIA - CIE.
    3. 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.
    4. Sergio J. Rey & Mark V. Janikas, 2004. "STARS: Space-Time Analysis of Regional Systems," Urban/Regional 0406001, University Library of Munich, Germany.

    More about this item

    Keywords

    convergence; spatial dependence; spatial heterogeneity;

    JEL classification:

    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics

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