This paper analyzes the impact of a cluster tourism policy in the region of Colonia, Uruguay. The policy was implemented as part of an IDB-supported program. The study conducted a comparative analysis of Colonia vs. other tourism regions of the country applying a synthetic control method. This...

We introduce knowledge spillovers as an externality in the production function of competitive firms operating in a finite spatial domain under adjustment costs. Spillovers are spatial as productive knowledge flows more easily among firms located nearby. When knowledge spillovers are not...