Instability in spatial error models: an application to the hypothesis of convergence in the European case |
| |
| Authors: | Jesús Mur Fernando López Ana Angulo |
| |
| Institution: | 1. Department of Economic Analysis, University of Zaragoza, Gran Vía, 2-4, 50005, Zaragoza, Spain
2. Department of Quantitative Methods and Computing, Technical University of Cartagena, Paseo Alfonso XIII, 50, 30203, Cartagena, Spain
|
| |
| Abstract: | This paper focuses on the hypothesis of stability in the mechanisms of spatial dependence that are usually employed in spatial
econometric models. We propose a specification strategy for which the first step is to solve a local estimation algorithm,
called the Zoom estimation. The aim of this stage is to detect problems of heterogeneity in the parameters and to identify
the regimes. Then we resort to a battery of formal Lagrange Multipliers to test the assumption of stability in the processes
of spatial dependence. The alternative hypothesis consists of the existence of several regimes in these parameters. A small
Monte Carlo serves to confirm the behaviour of this strategy in a context of finite size samples. As an illustration, we solve
an application to the case of the hypothesis of convergence for the per capita income in the European regions. Our results
reveal the existence of a strong Centre-Periphery dichotomy in which instability extends to all the elements (coefficients
of regression as well as parameters of spatial dependence) that intervene in a classical conditional β-convergence model. |
| |
| Keywords: | |
| 本文献已被 SpringerLink 等数据库收录！ |
|
