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A spatial model of the Keynesian theory for Portugal

Martinho, Vítor João Pereira Domingues (2011): A spatial model of the Keynesian theory for Portugal.

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With this work we try to present a spatial model for Portugal based on the Keynesian theory. We built the model analysing, through cross-section estimation methods, the influence of spatial effects in productivity in the NUTs III economic sectors of mainland Portugal from 1995 to 1999 and from 2000 to 2005, considering the Verdoorn relationship. Bearing in mind the results of estimations, it can been that the effects of spatial spillovers, spatial lags and spatial error, influence the Verdoorn relationship when it is applied to the economic sectors of Portuguese regions.

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