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145
Why is economic geography not an evolutionary science? Towards an evolutionary . . .
, 2006
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Regional Wage and Employment Responses to Market Potential in the EU, paper presented at the HWWA conference “New Economic Geography-Closing the Gap between Theory and Empirics
"... Recent theoretical work on economic geography emphasizes the interplay of transport costs and plant-level increasing returns. In these models, the spatial distribution of demand is a key determinant of economic outcomes. In one strand, it is argued that higher demand gives rise to a more than propor ..."
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Cited by 41 (0 self)
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Recent theoretical work on economic geography emphasizes the interplay of transport costs and plant-level increasing returns. In these models, the spatial distribution of demand is a key determinant of economic outcomes. In one strand, it is argued that higher demand gives rise to a more than proportionate increase in production, a result known as the home market effect. Another strand emphasizes the effects of market sizes on factor prices. We highlight the theoretical connection between these two strands. Using data on 57 European regions, we show how wages and employment respond to differentials in what we call real market potential, a discounted sum of demands derived from the theory. JEL Classification: F12, F15, R11, R12. Key words: Home market effects, wage equation, gravity equation, new economic
Increasing Returns and Spatial Unemployment Disparities
, 2003
"... Standard models of the new trade and location theories usually assme full employment and are thus ill-equipped to study spatial unemployment differences, which in reality are more pronounced that income disparities. Regional labour market theories like the 'wage curve'-approach on the othe ..."
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Cited by 25 (1 self)
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Standard models of the new trade and location theories usually assme full employment and are thus ill-equipped to study spatial unemployment differences, which in reality are more pronounced that income disparities. Regional labour market theories like the 'wage curve'-approach on the other hand can not endogenously explain the origin of regional economic disparities. We analyse regional agglomeration and regional unemployment in an unified approach by combining a wage curve with an increasing returns technology. We find that regional unemployment rates closely resemble the coreperiphery structure of regional GDP per capita. This matches the stylised facts from EU-15.
PUTTING NEW ECONOMIC GEOGRAPHY TO THE TEST: FREE-NESS OF TRADE AND AGGLOMERATION IN THE EU REGIONS
, 2005
"... An electronic version of the paper may be downloaded • from the SSRN website: www.SSRN.com • from the CESifo website: www.CESifo-group.de CESifo Working Paper No. 1566 ..."
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Cited by 22 (3 self)
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An electronic version of the paper may be downloaded • from the SSRN website: www.SSRN.com • from the CESifo website: www.CESifo-group.de CESifo Working Paper No. 1566
Education, migration, and job satisfaction: The regional returns of human capital in the EU
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Regional policy in the global economy: Insights from the New Economic Geography
, 2002
"... Abstract: So far the contribution of New Economic Geography (NEG) has been mainly positive. Normative analysis and policy implications have lagged behind. The reason is the fear of the consequences of taking too literally the neat structure of the models. Under this respect the somewhat incautious a ..."
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Cited by 19 (1 self)
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Abstract: So far the contribution of New Economic Geography (NEG) has been mainly positive. Normative analysis and policy implications have lagged behind. The reason is the fear of the consequences of taking too literally the neat structure of the models. Under this respect the somewhat incautious aim of this paper is precisely to take NEG models literally and ask what their exact policy implications are. This is viewed as a necessary though preliminary step towards bringing NEG insights to the policy domain.
Trade Integration, Market Size, and Industrialization: Evidence from China's National Trunk Highway System.
, 2013
"... Abstract Large scale transport infrastructure investments connect both large metropolitan centers of production as well as small peripheral regions. Are the resulting trade cost reductions a force for the diffusion of industrial and total economic activity to peripheral regions, or do they reinforc ..."
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Cited by 17 (1 self)
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Abstract Large scale transport infrastructure investments connect both large metropolitan centers of production as well as small peripheral regions. Are the resulting trade cost reductions a force for the diffusion of industrial and total economic activity to peripheral regions, or do they reinforce the concentration of production in space? This paper exploits China's National Trunk Highway System as a large scale natural experiment to contribute to our understanding of this question. The network was designed to connect provincial capitals and cities with an urban population above 500,000. As a side effect, a large number of small peripheral counties were connected to large metropolitan agglomerations. To address non-random route placements on the way between targeted city nodes, I propose an instrumental variable strategy based on the construction of least cost path spanning tree networks. The estimation results suggest that network connections have led to a reduction in GDP growth among non-targeted peripheral counties. This effect appears to be driven by a significant reduction in industrial output growth. Additional results present evidence in support of a trade based channel in the light of falling trade costs between peripheral and metropolitan regions.
The Case for Regional Development Intervention: Place-Based versus Place-Neutral Approaches
, 2011
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Multinationals’ location choice, agglomeration economies, and public incentives
- International Regional Science Review
, 2006
"... We study the regional location of multinationals in Ireland since the 1970s by focusing on the role played by agglomeration economies and public incentives intent on dispersing industrial activity to the more disadvantaged areas of Ireland. We find that regional policy has only been effective in att ..."
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Cited by 12 (3 self)
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We study the regional location of multinationals in Ireland since the 1970s by focusing on the role played by agglomeration economies and public incentives intent on dispersing industrial activity to the more disadvantaged areas of Ireland. We find that regional policy has only been effective in attracting low-tech firms to the disadvantaged areas during the time when there was a much more laissez-faire approach to regional policy and when the primary industrial policy emphasis was on attracting hi-tech firms into Ireland in general. Our results also show that hi-tech firms spread more evenly across the country and that urbanization economies were for these firms a more important locational determinant than public incentives.
The case for an EU-wide measure of poverty
- European Sociological Review
, 2007
"... Income poverty in the European Union (EU) is normally measured with reference to income thresholds defined at the level of each Member State, independently of any consideration of inequalities in income between Member States. This approach has come under strain as a consequence of the recent enlarge ..."
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Cited by 11 (0 self)
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Income poverty in the European Union (EU) is normally measured with reference to income thresholds defined at the level of each Member State, independently of any consideration of inequalities in income between Member States. This approach has come under strain as a consequence of the recent enlargement of the EU: income differences between Member States are now so wide that what is defined as the poverty threshold in the richer Member States would count as an above-average income in the poorer Member States. This article proposes that, in order to cope with empirical and policy issues arising in this new situation, measures of poverty based on EU-wide thresholds need to be utilized alongside existing measures. Indicators of objective living conditions and subjective feelings of deprivation are used to show that the very high poverty rates in poorer Member States that an EU-wide poverty measure would produce are empirically meaningful, in that they reflect the low living standards and a strong sense of deprivation experienced by large proportions of the population in those states. They are also relevant for policy, but in a context where EU anti-poverty policy is linked as much with the EU convergence project and the single EU labour market as of social policy in the usual sense.
