It is a widely observed fact that in many European countries, regions of low population density get subsidies that are not justified by their size. This paper throws some light on the effect of this phenomena on location of manufacturing activities. Considering a simple two-region economic...

We investigate the impact of within-country spatial concentration of economic activity on country-level growth, using cross-section OLS and dynamic panel GMM estimation. Agglomeration is measured alternatively through measures of urbanization and through indices of spatial concentration based on...

We investigate the impact of within-country spatial concentration of economic activity on country-level growth, using cross-section OLS and dynamic panel GMM estimation. Agglomeration is measured alternatively through measures of urbanization and through indices of spatial concentration based on...

Knowledge spillovers and technical externalities play a fundamental role in basically all endogenous growth models. In a context of increasing returns to scale and transportation costs it seems reasonable to assume that regional agglomeration of production and R&D activities is linked to...

We investigate the impact of within-country spatial concentration of economic activity on country-level growth, using cross-section OLS and dynamic panel GMM estimation. Agglomeration is measured alternatively through urbanization shares and through indices of spatial concentration based on data...

Intergenerational links are often investigated by computing educational attainment correlations between parents and children, even though parental background may influence outcomes at earlier stages of the educational path. Because of early school track selection and widespread vocational...

This chapter surveys recent developments in agglomeration theory within a unifying framework. We highlight how locational fundamentals, agglomeration economies, the spatial sorting of heterogeneous agents, and selection effects affect the size, productivity, composition, and inequality of...

We model residential land use constraints as the outcome of a political economy game between owners of developed and owners of undeveloped land. Land use constraints are interpreted as shadow taxes that increase the land rent of already developed plots and reduce the amount of new housing...