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The empirics of economic geography: how to draw policy implications?

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  • Pierre-Philippe Combes

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Abstract

Using both reduced-form and structural approaches, the spectrum of policy recommendations that can be drawn from empirical economic geography is pretty large. Reduced-form approaches allow the researchers to consider many variables that impact on regional disparities, as long as they are careful about interpretation and endogeneity issues. Structural approaches have the opposite advantages. Less issues can be simultaneously addressed, but one can be more precise in terms of which intuitions are considered and the underlying mechanisms and effects at work. Many regional policy issues remain unanswered, opening some interesting future lines of research.

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Bibliographic Info

Article provided by Springer in its journal Review of World Economics.

Volume (Year): 147 (2011)
Issue (Month): 3 (September)
Pages: 567-592

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Handle: RePEc:spr:weltar:v:147:y:2011:i:3:p:567-592

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Related research

Keywords: Agglomeration economies; Regional policy; Structural estimation; Instrumental variables; R12; R23;

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Cited by:
  1. Sheard, Nicholas, 2011. "Regional Policy in a Multiregional Setting: When the Poorest are Hurt by Subsidies," Research Papers in Economics 2011:11, Stockholm University, Department of Economics.
  2. Holger Breinlich & Gianmarco I.P. Ottaviano & Jonathan R.W. Temple, 2013. "Regional growth and regional decline," Economics Discussion Papers 729, University of Essex, Department of Economics.

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