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SSRN Electronic Journal
Article . 2007 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2007
Data sources: EconStor
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Conditional Beta- and Sigma-Convergence in Space: A Maximum-Likelihood Approach

Authors: Michael Pfaffermayr;

Conditional Beta- and Sigma-Convergence in Space: A Maximum-Likelihood Approach

Abstract

Empirical work on regional growth under spatial spillovers uses two workhorse models: the spatial Solow model and Verdoorn's model. This paper contrasts these two views on regional growth processes and demonstrates that in a spatial setting the speed of convergence is heterogenous in both considered models, depending on the remoteness and the income gap of all regions. Furthermore, the paper introduces Wald tests for conditional spatial sigma-convergence based on a spatial maximum likelihood approach. Empirical estimates for 212 European regions covering the period 1980-2002 reveal a slow speed of convergence of about 0.7 percent per year under both models. However, pronounced heterogeneity in the convergence speed is evident. The Wald tests indicate significant conditional spatial sigma-convergence of about 2 percent per year under the spatial Solow model. Verdoorn's specification points to a smaller and insignificant variance reduction during the considered period.

Keywords

European regions, O47, Wirtschaftswachstum, spatial solow model, spatial maximum likelihood estimates, ddc:330, Conditional spatial Beta- and Sigma-convergence; Spatial Solow model; Verdoorn's model; Spatial maximum likelihood estimates; European regions, conditional spatial beta- and sigma-convergence, Verdoorn's Law, R11, Solow-Modell, Verdoorn's model, Produktivität, Europa, C21, Schätzung, jel: jel:C21, jel: jel:O47, jel: jel:R11

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
7
Average
Average
Top 10%
bronze