1. Economic Convergence vs. Socio-Economic Convergence M. Francesca CRACOLICI University of Palermo cracolici@unipa.it 19 th Advanced Summer School in Regional Science GIS and Spatial Econometrics 4-12 July 2006 Groningen, The Netherlands

2. AIMS To assess performance of territorial area stressing social aspects; To assess performance of territorial area stressing social aspects; To evaluate differences and development gaps among territorial area considering economic and social dimensions; To evaluate differences and development gaps among territorial area considering economic and social dimensions; To propose a compound measure of material and immaterial wellbeing; To propose a compound measure of material and immaterial wellbeing; To use spatial econometrics tools to investigate spatial spillovers.

3. STYLIZED FACTS 1) 1) International comparison on economic performance of countries aimed to evaluate the level of development or growth of them in terms of GDP; 2) 2) This approach has strongly criticized GDP index is not able to catch the different dimensions of wellbeing; 3) 3) GDP partial measure of a multi-dimensional concept as wellbeing (see Sen 1985, 1987; Knan 1991 and Dasgupta 1990, 1993)

4. FRAMEWORK Living Standards (Hobijn and Franses 2001; Neumayer 2003; Dowrick et al. 2003) Convergence in income levels is important similarity to study the convergence in living standards; To extent the evaluation of country’s performance at measures of living standards; High GDP necessary condition but not sufficient condition; Quality of Growth (see also UNDP 1996, Cracolici and Vassallo 2002).

5. CONCEPTUAL MODEL

6. OPEN QUESTIONS How to link material and immaterial wellbeing in order to consider the spatial dimension (spatial spillovers)? How to link material and immaterial wellbeing in order to consider the spatial dimension (spatial spillovers)? Could simultaneous spatial models be an useful tool (see Keleijan and Pucha 2004; Florax et al. 2006)? Could simultaneous spatial models be an useful tool (see Keleijan and Pucha 2004; Florax et al. 2006)?