Is Spain a lumpy country? A dynamic analysis of the 'lens condition'

Francisco Requena Silvente, Juana Castillo and Andres Artal

Applied Economics Letters, 2007, vol. 15, issue 3, 175-180

Abstract: We implement the 'lens condition' of Deardoff (1994) to investigate whether lumpiness, an excessively uneven geographic distribution of production factors, is large enough to allow for regional specialization of production at different factor prices. Using data from 50 Spanish provinces over the period 1964 to 2001, we show that Spain evolved from being a lumpy economy to a state where lumpiness no longer mattered.

Date: 2007
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DOI: 10.1080/13504850600735288

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