The recent enlargement of the European Union (EU) will lead to unprecedented reforms of regional policies. We examine the regional distribution of gross value added, employment, and productivity for the Polish, Hungarian, and Czech regions, and compare them to the EU-15 average for the 1990-2000...

Numerous studies have pointed to the econometric problems introduced by heterogeneity in cross-sectional data samples used to explore convergence suggested by neo-classical growth models. We introduce a local concept of convergence along with a Bayesian locally linear spatial estimation method...

Measurement error in an independent variable is one reason why OLS estimates may not be consistent. However, as shown by Dagenais (1994), in some circumstances the OLS bias may be ameliorated somewhat given the presence of serially correlated disturbances, and OLS may prove superior to standard...