This paper investigates the role of political representation in explaining regional variation in fiscal transfers in Belgium. Using Eurostat data for the years 1995 to 2008, we find that on average per capita cash fiscal transfers –consisting of the net amount of federal income taxes and...

This paper analyses the wage demands of a sector-level monopoly union facing internationally mobile firms. A simple two-country economic geography model is used to describe how firms relocate: in function of international differences in production costs and market size. The union sets wages in...

The objective of the present paper is to study the impact of R&D investment on inter-regional labour migration and inter-sectoral labour reallocation in the EU, specifically at regional level. In order to capture important general equilibrium effects, we employ a structural NEG model called...

This paper outlines how regional labour market adjustments to macro-economic and policy shocks are modelled in RHOMOLO through participation, employment and migration decisions of workers. RHOMOLO, being a multi-sectoral, inter-regional general equilibrium model, is complex both in terms of its...

The present paper describes the modelling of regional labour markets in the newly developed dynamic spatial general equilibrium model RHOMOLO, where the labour market equilibrium is determined by firms' labour demand, a wage-curve determining unemployment, and inter-regional labour migration....

This paper derives a gravity equation for commuter flows from a simple spatial labor market model based on the classic model developed by Anderson and Van Wincoop in the context of international trade. The approach shows the importance of taking into account the effect of the economic structure...