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Activity Number:
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115
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Type:
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Contributed
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Date/Time:
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Monday, August 7, 2006 : 8:30 AM to 10:20 AM
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Sponsor:
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General Methodology
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| Abstract - #306645 |
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Title:
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Identifying and Interpreting Regional Convergence Clusters across Europe: Asymptotic versus Boostrapped Inference
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Author(s):
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Luisa Corrado*+ and Melvyn Weeks
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Companies:
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University of Cambridge and University of Cambridge
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Address:
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Sedgwick Site, Cambridge, CB39DD, UK
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Keywords:
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regional convergence ; new economic geography ; cluster methods ; bootstrapping ; stationarity tests
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Abstract:
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In this paper we test for regional convergence clusters across the European Union. We base the analysis on a cluster methodology using the following two steps: (i) generate regional clusters based upon pairwise stationarity tests; (ii) test the resulting cluster outcomes against a number of possible hypothesized cluster patterns based upon geographic, socio-demographic and politico-institutional factors as suggested by the new regional economic 'theory'. Further, our method allows regional convergence clusters to vary over time. Given that the time series are relatively short, there are potential problems in basing inference on asymptotic results for stationarity tests. To circumvent this problem we bootstrap the stationarity test and explore the robustness of the cluster outcomes.
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