We apply the accelerator principle to measure the functional efficiency of capital markets. We estimate the elasticity of capital with respect to output using a panel of firms across 44 countries, and compare the results with existing approaches. Furthermore, we correlate our measure with...

This paper examines the geographic variation in inequality, and it distinguishes between wage and income inequality. Wage inequality is associated with skills, human capital, technology and metro size - in line with the literature on skill-biased technical change. Income inequality is instead...

Short on the role of airports in for regional development in earlier work, our research examines two things: (1) the likelihood for the region to have an airport in the first place and (2) the effects of airports for regional economic development. Based on multiple regression analysis for US...

The economic crisis contributed to sharp increases in U.S. unemployment rates for all three of the major socio-economic classes. Results from regression models using individual-level data from the 2006-2011 U.S. Current Population Surveys indicate that members of the Creative Class had a lower...

The prevailing geographic model for high-technology industrial organization has been the “nerdistan,” a sprawling, car-oriented suburb organized around office parks, of which Silicon Valley is the prototypical example. This seems to contradict a basic insight of urban theory, which...

In this paper we generalize the median regression method in order to make it applicable to systems of regression equations. Given the existence of proper systemwise medians of the errors from different equations, we apply the weighted median regression with the weights obtained from the...

Economic theory tells us that abnormal firm and industry profits will not persist for any significant length of time. Any firm or industry making profits in excess of the normal rate of return will attract entrants and this competitive process will erode profits. However, a substantial amount of...

This chapter provides an integrated view of knowledge transfer between university and industry by combining two different approaches. First, we report results from an econometric analysis, where recent matching techniques are used on a dataset of 2,071 Swedish firms. Our findings from this...

In this paper, we use simulated data to investigate the power of different causality tests in a two-dimensional vector autoregressive (VAR) model. The data are presented in a non-linear environment that is modelled using a logistic smooth transition autoregressive (LSTAR) function. We use both...