ERSA Summer school Groningen 2006 Convergence among regions of the enlarged Europe: impact of spatial effects Nicolas DebarsyCem Ertur.

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ERSA Summer school Groningen 2006 Convergence among regions of the enlarged Europe: impact of spatial effects Nicolas DebarsyCem Ertur

General ideas My research topic consists in implementing theoretically spillovers effects in growth models, and thus using spatial econometrics as methodology Many studies over EU 15 NUTS-2 regions but barely one over enlarged EU This study shows importance of spatial effects in EU-25 NUTS-2 regions

General framework β-convergence framework –Absolute (unconditional) convergence –Spatial regimes

General framework Clubs convergence (allow to take some spatial heterogeneity into account) Use of Getis statistics (local autocorrelation statistics) to define spatial regimes

Description of clubs

Estimated equation D 1,i =1 if region i belongs to club West D 2,i =1 if region i belongs to club East

Empirics Period: NUTS-2 regions Creation of a weight matrix based on time distance

Estimation of absolute convergence by SAR

Future research and questions Develop a growth model including spatial effects work on panel data methods applied to spatial econometrics (Matlab routines) How to take outliers effet into account in a frequentist approach? Bayesian econometrics ?