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Dynamic Spatial Modelling of Regional Convergence Processes AgEcon
Kosfeld, Reinhold; Lauridsen, Jorgen.
Econometric analysis of convergence processes across countries or regions usually refers to a transition period between an arbitrary chosen starting year and a fictitious steady state. Panel unit root tests and panel cointegration techniques have proved to belong to powerful econometric tools if the conditions are met. When referring to economically defined regions, though, it is rather an exception than the rule that coherent time series are available. For this case we introduce a dynamic spatial modelling approach which is suitable to trace regional adjustment processes in space instead of time. It is shown how the spatial error-correction mechanism (SEC model) can be estimated depending on the spatial stationarity properties of the variables under...
Tipo: Working or Discussion Paper Palavras-chave: Regional convergence; Dynamic spatial models; Spatial unit roots; Spatial error-correction; Community/Rural/Urban Development; C21; R11; R15.
Ano: 2004 URL: http://purl.umn.edu/26211
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