This paper examines the long-run trends in per-capita income across the US states (1929-2005). Our analysis advocates and implements a Vector Error Correction Model (VECM), in order to investigate whether disparities in per-capita income embody a stable long-run relation. The empirical...

Usually, the diffusion of a non-rival market knowledge externality - called a Knowledge Spillover (KS) - is related to geographical proximity. In this paper we explore the channels through which knowledge spreads. Compared with earlier work on KS measures, this study makes a step forward by...

Tourism has over the past decades turned into a core activity for accelerated growth. The purpose of this study is to determine the role of tourism in the economy of Aruba. More specifically, this investigation attempts to answer the following questions: (1) Is there is a long-run equilibrium...

Cultural diversity is a complex and multi-faceted concept. Commonly used quantitative measures of the spatial distribution of culturally-defined groups -- such as segregation, isolation or concentration indexes -- are often only capable of identifying just one aspect of this distribution. The...

We analyze the interactions between positive and negative externalities in innovation and trade for economic growth in a region when this region is part of an aggregate economy consisting of two regions. In both regions consumers have constant relative risk aversion preferences, there is human...

We focus on the interaction between a representative polluting tannery and a negatively impacted small farmer in Kanpur, India. The tannery produces leather and toxic chemical waste that ends up in wastewater used by the small farmer to irrigate agricultural land and grow vegetables. The waste...

We provide a theoretical framework to analyze how climate change influences the Ganges and how this influence affects pollution in the river caused by tanneries in Kanpur, India. We focus on two tanneries, A and B, that are situated on the same bank of the Ganges in Kanpur. Both produce leather...

Knowledge drives the growth of nations and regions in a competitive space-economy. Hence, we would expect a strong correlation between investments in R&D, knowledge and learning processes, on the one hand, and productivity increases, on the other. However, the empirical evidence shows consistent...