UK regional data on GDP and the GDP deflator are analysed to extract information on underlying demand and supply shocks as well as aggregate demand and supply shocks. Identification is achieved using long run restrictions, based on a theoretical model. The main results are that the supply shocks...

Purpose – This paper seeks to assess the importance of time-varying regional patterns to countries' per capita growth rates, and their effect on the conclusions that can be drawn from growth regressions. Design/methodology/approach – Pooled ordinary least squares on a data set of five-year...