Economics at your fingertips  

A continuous time model of European growth, integration and technology diffusion: The role of distance

Bernardo Maggi, Pier Carlo Padoan and Paolo Guerrieri

Economic Modelling, 2009, vol. 26, issue 3, 631-640

Abstract: Economists have been devoting increasing attention to the diffusion process of knowledge in economic activities. However, the models till now developed concentrate mostly on the dynamics determined by the steady state, when dealing with the interaction among many countries. Instead, we present a non-linear model where explicitly formalize the disequilibrium as starting point. We evaluate theoretically and empirically, with a continuous time analysis applied to panel data, the integration process of some main European countries by considering a simultaneous interaction among output, technology and business services. In this process we take particular care of distance, as a strategic variable over time, and of the following consequences on the convergence to the steady state. On this subject we also show a closed form solution in presence of a linear constraint on technology among countries.

Keywords: Continuous; time; econometrics; Distance; Growth; Stability; Sensitivity (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-07-22
Handle: RePEc:eee:ecmode:v:26:y:2009:i:3:p:631-640