This paper considers the most important aspects of model uncertainty for spatial regression models, namely the appropriate spatial weight matrix to be employed and the appropriate explanatory variables. We focus on the spatial Durbin model (SDM) specification in this study that nests most models...

The speed of income convergence in Europe remains one of the hot topics in regional economics. Recently Bayesian Model Averaging (BMA) applied to spatial autoregressive models seems to have gained more popularity. BMA averages over some predetermined number of so called top models, ranked by the...

This paper presents a theoretical growth model that accounts for technological interdependence among regions in a Mankiw-Romer-Weil world. The reasoning behind the theoretical work is that technological ideas cannot be fully appropriated by investors and these ideas may diffuse and increase the...