Abstract Regional convergence of German labour markets represents a politically important question. Different studies have examined convergence processes in Germany. We derive equations to estimate the speed of convergence on the basis of an extended Solow model. The technique of geographically...

Abstract This paper sheds empirical light on the relationship between agglomeration and economic growth and its impact on the convergence hypothesis. Using a sample of 208 European regions over 25 years, ‘standard’ growth regressions are estimated using panel data techniques. Both the effect...

Abstract A spatial vector autoregressive model (SpVAR) is defined as a VAR which includes spatial as well as temporal lags among a vector of stationary state variables. SpVARs may contain disturbances that are spatially as well as temporally correlated. Although the structural parameters are not...

This paper assesses the impact of structural funds on the manufacturing sector of 145 European regions in the context of a Verdoorn’s law for the period 1989-2004. Three main innovations are included. First, we pay attention to the nature of the cohesion objective under study. Second, the...

We apply spatial econometric techniques to models of state and local fiscal policy convergence. Our work extends the work of Scully and Annala in much the same way that Rey and Montouri extended the literature on income convergence among U.S. states. Our results indicate that most fiscal...

Ziel dieses Artikels ist die Analyse der Leistungsfähigkeit des Gravitätsmodells, im Zusammenhang mit bereits bekannten Handelsströmen (Fall (a)), und als Prognosemodell (Fall (b)). Im Fall (a) dient das Modell der Erläuterung der Entwicklung von Handelsströmen. Der Test mit mehreren...

The development state of regions does not only depend on the own efficiency, but also on spatial spillovers. Positive (backward linkages, use of the infrastructure in neighbouring economic areas etc.) and negative (e.g. environmental effects) spillovers give reason for mutual economic...

We consider fiscal competition between jurisdictions. Capital taxes are used to finance a public input and two public goods: one that benefits mobile skilled workers and one that benefits immobile unskilled workers. We derive the jurisdictions' reaction functions for different spending...