We consider estimation of a panel data model where disturbances are spatially correlated in the cross-sectional dimension, based on geographic or economic proximity. When the time dimension of the data is large, spatial correlation parameters may be consistently estimated. When the time...

This paper examines the relationship between spatial clustering and inequality at the county scale with overall state per capita income in the U.S. over the period 1969-2000. For each of the 48 coterminous states we examine measures of inequality and spatial clustering and explore how a state's...

he purpose of this article is to analyse the dynamic trend of spatial dependence, which is not only contemporary but time-lagged in many socio-economic phenomena. Firstly, we show some of the commonly used exploratory spatial data analysis (ESDA) techniques and we propose other new ones, the...

This study try to identify the â-convergence process among regions in East Java using cross-section data of 30 regions for period 1983-2001, taking into account the presence of spatial heterogeneity and spatial dependence. Detection of spatial regimes using G-I* statistics on regional per...

This paper explores the implications that spatial effects can hold for the application of measures of sigma-convergence. The bias of a common indicator of convergence is examined for a family of spatial process models including: [a] spatial lag, [b] spatial error, and [c] spatial moving average....

The article proposes an enabling mechanism for the creation, adjustment and dissolution of governmental units, giving autonomy to each resident as in a direct democracy. Rather than focusing on a narrow model with restrictive and specialized assumptions, and subsequent solutions, as has been...

The paper presents an index of globalization covering its three main dimensions: economic integration, social integration, and political integration. Using panel data for 123 countries in 1970-2000 the effects of the overall index of globalization as well as sub-indexes constructed to measure...

Conventional wisdom has it that policy innovation is better promoted in a federal rather than in a unitary system. Recent research, however, has provided theoretical evidence to the contrary: a multi-jurisdictional system is characterized---due to the existence of a horizontal information...

Increasingly, in regional agreements, large economies, e.g. U.S. and E.U., offer lower trade barriers in exchange for cooperation by small economies in environmental, intellectual property and other issues. What is the effect of such agreements on multilateral trade liberalization? We show that,...

The paper derives a normative model for partial fiscal equalisation based on a number of axioms and makes special allowance for the existence of a specific fiscal need in the jurisdictions. A simple version of this idealised equalisation scheme relates net contri-butions to the equalisation...