This paper contributes to the recent literature in spatial econometrics that focuses on space-time data modeling implementing a multi-location time-series statistical framework to analyze a regional system. Therefore, taking as a point of departure the Global Vector Autoregression approach...

The estimation of the impact of public investment on regional economic growth requires consideration of the spatio-temporal dynamics among the state variables of each region. Recent austerity policies in Spain that feature temporary decreases in the accumulation of regional public capital should...

By studying the interaction between social capital and decentralization, we show that political decentralization can be a source of divergence across heterogeneous regions. In particular, we claim that since the local endowments of social capital display their effect on the economy mainly...

This paper explores the contribution of knowledge capital to total factor productivity differences among regions within a regression framework. The dependent variable is total factor productivity, defined as output (in terms of gross value added) per unit of labour and physical capital combined,...

This paper presents a theoretical growth model that extends the Mankiw-Romer-Weil [MRW] model by accounting for technological interdependence among regional economies. Interdependence is assumed to work through spatial externalities caused by disembodied knowledge diffusion. The transition from...