This paper adopts a spatial econometric perspective to analyse regional convergence of per capita income in Europe in … with reality of empirical dynamics. The two-club spatial error convergence model with groupwise heteroskedasticity is found … data provide much support for unconditional beta-convergence in Europe. The second is that the usual convergence …

convergence toward a good no-default equilibrium below the threshold and a default equilibrium above the threshold. However, in …