First experiments with an econometric regional model of the Belgian economy

Abstract

This paper presents an econometric nonlinear model of the 9 Belgian provinces. There are 7 equations for each province, thus 63 equations in all. The variables used are defined on three levels: the province considered, the other provinces (some or all of them), the rest of the world. The estimation procedures go from ordinary least squares to methods used for generalized variance components models and to a scanning maximum likelihood method.