It is assumed that human capital external economies can increase factor productivity. However, as human capital is accumulated in an unequal way in the territory, productivity improvements will be different among territories. So, in the presence of labour mobility, wage differences will induce...

This article analyses the importance of labour market institutions and, in particular, collective wage bargaining in shaping regional wage differences in the Spanish labour market. Using microdata from the Spanish Structure of Earnings Survey, our results reveal that there are significant...

In this research note we propose a latent variable model in the spirit of Israilevich and Kuttner (1993) to measure regional manufacturing production. In order to test the validity of the proposed methodology, we apply it for those Spanish regions that have a direct quantitative index. The...

In applied regional analysis, statistical information is usually published at different territorial levels with the aim of providing information of interest for different potential users. When using this information, there are two different choices: first, to use normative regions (towns,...

The non-accelerating inflation rate of unemployment (NAIRU) describes the rate of unemployment at which there is equilibrium between workers’ wage growth aspirations and the objective of firms of maximizing profits. In this article, we develop a theoretical model with the aim of quantifying...

This paper analyses how fiscal adjustment comes about when both central and sub-national governments are involved in consolidation. We test sustainability of public debt with a fiscal rule for both the federal and regional government. Results for the German Länder show that lower tier...

Evidence during the nineties about the response of real wages to shocks highlights that this response is substantially lower in European countries than in the United States and that there are important differences among European countries. Which are the reasons that explain these different...