This paper presents a framework for analysing the effects of economic development in Eastern Europe on Austria's regions. Therefore we concentrate on the effects of enhanced East-West trade, which results from the economic development in the transition countries. The analytical framework we use...

We reconsider the decomposition of the comparative statics effect of a factor price increase on (unconditional) factor demand into a substitution and a size (or level) effect. While for the own price effect the substitution effect and the size effect go into the same negative direction, the...

This paper estimates welfare effects resulting from reduced transaction costs in international trade, using a static multiregional general equilibrium model. The kernel of the model is the trade part specified in Dixit-Stiglitz-style. Interregional trade shows a gravity pattern due to...

According to New Growth Theory one can not rely on the convergence mechanisms inherent in traditional neoclassical constant returns to scale models. Convergence as well as divergence is possible, in general, depending on the assumptions about technology, factor mobility and ease of knowledge...

The paper shows that in a spatial price equilibrium under monopolisitc competition welfare can be increased by subsidising transport. Therefore transport can be said to exert a positive (pecuniary) externality. This is demonstrated by introducing a subsidy into a partial spatial price...

Theoretical reasoning shows that spatial effects of transport cost reductions may crucially depend on market structures in the tradables sector (degree of market power, strength of economies of scale, free or no free entry). The aim of this paper is to compare empirically the effects of...