The paper presents a formalization of Kaldor's two-sector agriculture-industry model of economic growth. It analyzes the model under two different scenarios. The first scenarioânamely, that of idealized (relative) price adjustment in which growth is unconstrained by effective demandâis already...

It has long been an article of faith amongst regional economists that increasing returns to scale are necessary to explain the punctiform location of economic activity and population. However, there is no consensus in the empirical literature over whether returns to scale are constant or...

This article presents some new estimates of the degree of returns to scale for European regional manufacturing, for the period 1986—2002. To obtain these estimates, the article makes use of a Verdoorn law framework, estimating both demand- and supply-side versions of the law. Estimation...

Abstract Verdoorn's law is estimated in a spatial econometric framework for individual manufacturing industries using EU regional data. Estimates of encompassing returns to scale are large, but other explanatory variables, including measures of industrial specialization and diversity, tend to be...

Using data envelopment analysis, we calculate indices of total factor productivity (TFP), efficiency and technological change for the manufacturing sectors of 68 European NUTS1 regions over the period 1986-2002. We subsequently examine these indices using exploratory spatial data analysis (ESDA)...