We explore the impact of the age structure of human capital on average regional productivity by applying a spatial econometric analysis based on an augmented Lucas-type production function. We also apply a new definition of regional human capital focusing on its availability. The estimates...

High unemployment rates are a concern for a country, existence of high regional unemployment differentials is another. Turkey has both. This paper using spatial and nonparametric techniques documents the wide regional unemployment disparities in Turkey from 1980 to 2000. Data indicate that the...

Unemployment arising from job search and recruiting friction is incorporated in a tax competition model with multiple jurisdictions. Due to the matching externality, for each jurisdiction, the revenue from a job opening does not coincide with its cost. Therefore, capital taxation, which can be...

This paper investigates several issues concerning persistence of inequalities of relative income per capita among the Spanish regions over the period 1980 to 2002. For that purpose we take a Bayesian approach which extends the work by Canova and Marcet. First, we study to what extent there...

This paper offers some preliminary steps in the marriage of some of the theoretical foundations of new economic geography with spatial computable general equilibrium models. Modelling the spatial economy of Colombia using the traditional assumptions of computable general equilibrium (CGE) models...

This purpose of this paper is twofold: First, we are interested in making a first step towards formally introducing demand uncertainty into the standard model of Löschian competition. Secondly, we wish to explore the effects of demand uncertainty on both the nature of the solution and...

In modern economic growth theory, R&D and the subsequent production of new knowledge are the driving forces for long-term regional growth. Empirical evidence, however, does not always support this popular belief in the regional context. Using a simple growth accounting model, this study examines...

The paper examines the effects of subcontracting on vertical product differentiation in a spatial competition model. It is shown that the level of differentiation is determined by the consignor's bargaining power and the ratio of the transport rates between the final product and the...