We explore the variations in regional economic growth within 26 countries relative to the OECD norm between 1998 and 2003. This analysis sheds light on the role of regions in determining national growth patterns, while also providing a method similar to shift-share that can assess the relative...

Recent nonparametric studies find that the regional distribution of unemployment rates is more dependent on geographic location (neighborhood effects) than on national factors (state effects). These results, however, do not control for stochastic dependency between neighborhood and state effects...