This paper deals with heterogeneity and spatial dependence in the economic growth analysis by developing a two stage strategy, which identifies clubs by a mapping analysis and estimates a club convergence model with spatial dependence. Since estimation of this class of convergence models in the presence of regional heterogeneity poses both identification and collinearity problems, we develop an entropy-based estimation procedure which simultaneously takes account of ill-posed and ill-conditioned inference problems. The two step strategy is applied to assess the existence of club convergence and to estimate a two- club spatial convergence model across Italian regions over the period 1970-2000.
IDENTIFICATION AND ESTIMATION OF CLUB CONVERGENCE MODELS WITH SPATIAL DEPENDENCE
BERTARELLI, Silvia
2013
Abstract
This paper deals with heterogeneity and spatial dependence in the economic growth analysis by developing a two stage strategy, which identifies clubs by a mapping analysis and estimates a club convergence model with spatial dependence. Since estimation of this class of convergence models in the presence of regional heterogeneity poses both identification and collinearity problems, we develop an entropy-based estimation procedure which simultaneously takes account of ill-posed and ill-conditioned inference problems. The two step strategy is applied to assess the existence of club convergence and to estimate a two- club spatial convergence model across Italian regions over the period 1970-2000.I documenti in SFERA sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
