This study suggests a two-step approach to identifying and interpreting regional convergence clubs in Europe. The first step involves identifying the number and composition of clubs using a space-time panel data model for annual income growth rates in conjunction with Bayesian model comparison...

There is a great deal of literature regarding the asymptotic properties of various approaches to estimating simultaneous space-time panel models, but little attention has been paid to how the model estimates should be interpreted. The motivation for use of space-time panel models is that they...

This study suggests a two-step approach to identifying and interpreting regional convergence clubs in Europe. The first step involves identifying the number and composition of clubs using a space-time panel data model for annual income growth rates in conjunction with Bayesian model comparison...