/*
** Regional Economic Convergence in China
** Data Analysis
** Economic Growth is defined as ln(yit/yi0)
** yit = t-th period per capita GDP in state i
** yi0 = base period per capita GDP in state i
*/
use gpe2;

/* use y to construct economic distance */
load y[29,26]=tsinghua\chinay2.txt; @ rpcgdpm.txt; @
y=y[2:29,2:26]; @ 28 state (rows) real per capita GDP over 25 years (columns) @

format /m1 /ros 12,5;  @ default format @
/* 1978-2002 (25 years) */
r=ln(y[.,25]./y[.,1])/25;

/* 1978-1989 (12 years) rolling windows */
i=14; @ from base year 1978... @
do until i<1;
    r=(ln(y[.,i+11]./y[.,i])/12)~r;
    i=i-1;
endo;
print "Per Capita Real GDP Growth";
print "   1978-1989    1979-1990    1980-1991    1981-1992    1982-1993    1983-1994    1984-1995    1985-1996    1986-1997    1987-1998    1988-1999    1989-2000    1990-2001    1991-2002    1978-2002";;
print 100*r; @ anual rate of growth in % @

/* analysis of spatial dependence for y */
load wd[29,29]=tsinghua\smatrix.txt;
w1=wd[2:29,2:29];
w2=denseSubmat(sparseOnes(spwpower(spw(w1),2),28,28),0,0);
w=w1+w2; @ use combined first and second orders of W @
w=w1; @ use first-order contiguity weights matrix W @
/*
@ economic distance weights based on y[.,1;t] @
ym=meanc(y'); @ state means over time periods @
w3=diagrv(1/abs(ym-ym'),zeros(28,1));
w=w3.*w; @ spatial weights matrix depends on economic distance @
*/
w=w./sumc(w'); @ row-standardized w @
_w_=sparseFD(w,0); @ dense matrix w -> sparse matrix _w_ @
_wr=real(eig(w));

print 1/maxc(_wr);
print 1/minc(_wr);


i=1; @ from base year 1978... @
do until i>15;
    /*
    @ economic distance weights based on y[.,t-11;t] @
    ym=meanc(y[.,t-11:t]'); @ 28 state average y over 12 (t-11:t) years @
    w3=diagrv(1/abs(ym-ym'),zeros(28,1));
    w=w3.*w; @ spatial weights matrix depends on economic distance @
    
    w=w./sumc(w'); @ row-standardized w @
    _w_=sparseFD(w,0); @ dense matrix w -> sparse matrix _w_ @
    _wr=real(eig(w));
    */
    call sptest1(r[.,i],0);
    i=i+1;
endo;

end;

#include gpe\spatial.gpe;