This paper empirically examines the international spillover of economic growth through bilateral trade. We extend the Solow growth model with a spatial autoregressive term and a spatial time lag term, and estimate such a model with a sample of 26 OECD countries over the period 1971–2005. We...

This paper investigates the quasi-maximum likelihood (QML) estimation of spatial panel data models where spatial weights matrices can be time varying. We show that QML estimate is consistent and asymptotically normal. We also derive the asymptotic distribution of average impact coefficients...

Predictions of the portfolio model of the economy are tested using regional growth data from Europe. It is shown that more aggregated regions of Europe tend to be more economically diverse than more disaggregated regions. Then, using different frontier estimation methods, evidence of a convex...

The concept of economic homogeneity in regional science is based on two very different notions: composition and similarity. In the case of the states of the US, measures of homogeneity based on these different notions are "negatively" correlated with each other, suggesting that the results of...

The application of the portfolio framework to the economy predicts the existence of a convex growth-instability frontier. Using two data sets on Gross State Product for the states of the United States, this hypothesis is tested. The tests confirm the existence of a convex frontier for economic...