"Spain in the European Union : a new approach to regional convergence" (co- authored with José Villaverde), in Meeusen, W. (ed.), Economic Policy in the European Union, Edward Elgar, Cheltenham 1999, p. 67-83.

This paper intends to analyse the current and expected evolution of regional disparities in Spain, paying special attention to the feasible impact of the integration in the single currency. Accordingly, it pursues some estimations of the steady state levels of labour productivity under different scenarios. Basic results confirm the idea that Spanish regions seem to be already close to their long run equilibrium. Furthermore, our empirical analysis suggests that the main reason explaining the lack of convergence in productivity levels is technology differences across regions. The single currency will probably bring Spanish regions still closer to the average European welfare level, but further homogenisation within autonomous communities is not warranted unless structural reforms are carried out.