The Unequal Pattern of European Growth: A Regional-Based Semiparametric Analysis

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Daniel Rodríguez González
Universidade de Santiago de Compostela
Spain
Xavier Vence Deza
Universidade de Santiago de Compostela
Vol 22 (2013): Economics of inequality, Special
DOI: https://doi.org/10.15304/rge.22.Extra.1396
Submitted: 19-09-2013 Accepted: 19-09-2013
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Abstract

The aim of this paper is to analyze the relationship between inequality and the equivalent disposable income available at a regional level and to contrast the type of relationship between two variables in the developed world in the context of a standard neoclassical growth model. In this paper we will estimate a panel data model using the method of OLS fixed effects, and also analyze the possible existence of spatial autocorrelation in the model and the need for implementation of spatial models. A novel contribution is estimated by a semiparametric analysis, which allows conditional no Relational function. Semiparametric analysis, unlike the nonparametric analysis, allows the introduction of other variables by a linear function defined as the initial inequality, population density, employment in various sectors (industry mix), transfers, etc. This application of the semiparametric analysis is a relevant contribution to the study, since it is still a novel technique for the study of inequality.

Keywords:

Inequality, Income, European regions, Kuznets’ curve, Semiparametric analysis
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