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Equilibrium Regional Disparities: Theory and British Evidence

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Author Info
Patricia Rice
Anthony Venables

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Abstract

R ICE P. and V ENABLES A. J. (2003) Equilibrium regional disparities: theory and British evidence, Reg. Studies 37 , 675-686. Regional inequalities in many countries, including the UK, are large and persistent. They show up in a number of economic variables, most of them endogenous, making it difficult for the researcher to identify the underlying causes of the disparities. This paper uses sub-regional data for Great Britain to identify spatial patterns of disparities. It then compares these patterns with those predicted by a theoretical model under a number of alternative hypotheses about the underlying cause of the disparities. The approach lays the groundwork for theory based econometric modelling of the causes of regional inequalities. R ICE P. et V ENABLES A. J. (2003) Déséquilibres régionaux: la théorie et les preuves britanniques, Reg. Studies 37 , 675-686. Dans beaucoup de pays, y compris la Grande-Bretagne, les inégalités sont importantes et persistantes. Elles se manifestent à partir de nombreuses variables économiques, dont la plupart sont endogènes, ce qui le rend difficile pour le chercheur d'identifier les causes sous-jacentes des inégalités. Cet article se sert des données infrarégionales pour la Grande-Bretagne afin d'identifier la distribution géographique des inégalités. Puis on cherche à comparer ces distributions à celles qui sont prévues par un modè le théorique sous quelques hypothèses alternatifs sur les causes sous- jacentes des inégalités. Cette façon fait le travail pré paratoire pour une modélisation économétrique des causes des inégalités régionales basée sur des thé ories. R ICE P. und V ENABLES A. J. (2003) Gleichgewicht und regionale Ungleichheiten. Theorie und Beweise aus Großbritannien, Reg. Studies 37 , 675-686. In vielen Ländern, einschließlich des UK, gibt es große und anhaltende regionale Ungleichheiten. Sie treten in Form zahlreicher wirtschaftlicher Veränderlicher auf, die meisten endogen; das erschwert es dem Forscher, herauszufinden, was den Ungleichheiten zugrunde liegt. Dieser Aufsatz stützt sich auf Daten von Teilregionen Großbritannier's, um räumliche Muster von Ungleichheiten herauszustellen. Anschließend werden diese Muster mit jenen verglichen, die ein theoretisches Modell von einer Anzahl alternativer Hypothesen über die zugrunde liegenden Ursachen der Ungleichheiten vorausgesagt hatte. Der Ansatz legt den Grundstein für auf Theorie gestützte ökonometrische Modelle der Ursachen regionaler Ungleichheiten.

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Article provided by Taylor and Francis Journals in its journal Regional Studies.

Volume (Year): 37 (2003)
Issue (Month): 6-7 (August)
Pages: 675-686
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Handle: RePEc:taf:regstd:v:37:y:2003:i:6-7:p:675-686

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Keywords: Regional Inequalities; Economic Geography; Uk Regions;

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References listed on IDEAS
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  1. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March. [Downloadable!] (restricted)
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  2. Ciccone, Antonio, 2002. "Agglomeration effects in Europe," European Economic Review, Elsevier, vol. 46(2), pages 213-227, February. [Downloadable!] (restricted)
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  3. Andrew B. Bernard & Stephen J. Redding & Peter K. Schott & Helen Simpson, 2002. "Factor Price Equalization in the UK?," Yale School of Management Working Papers ysm287, Yale School of Management. [Downloadable!]
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  4. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476.
  5. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June. [Downloadable!] (restricted)
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  6. Bernard Fingleton, 2001. "Equilibrium and Economic Growth: Spatial Econometric Models and Simulations," Journal of Regional Science, Blackwell Publishing, vol. 41(1), pages 117-147. [Downloadable!] (restricted)
  7. Ermisch, J. F. & Findlay, J. & Gibb, K., 1996. "The Price Elasticity of Housing Demand in Britain: Issues of Sample Selection," Journal of Housing Economics, Elsevier, vol. 5(1), pages 64-86, March. [Downloadable!] (restricted)
  8. Canova, Fabio & Marcet, Albert, 1995. "The Poor Stay Poor: Non-Convergence Across Countries and Regions," CEPR Discussion Papers 1265, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Andrew Bernard & Stephen Redding & Peter Schott & Helen Simpson, 2003. "Relative wage variation and industry location," IFS Working Papers W03/17, Institute for Fiscal Studies. [Downloadable!]
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  2. Patricia Rice & Anthony J. Venables, 2004. "Spatial Determinants of Productivity: Analysis for the Regions of Great Britain," CEP Discussion Papers dp0642, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  3. Bernard Fingleton, 2007. "A multi-equation spatial econometric model, with application to EU manufacturing productivity growth," Journal of Geographical Systems, Springer, vol. 9(2), pages 119-144, June. [Downloadable!] (restricted)
  4. Christopher Candelaria & Mary Daly & Galina Hale, 2009. "Beyond Kuznets: persistent regional inequality in China," Working Paper Series 2009-07, Federal Reserve Bank of San Francisco. [Downloadable!]
  5. Bernard Fingleton, 2005. "Towards applied geographical economics: modelling relative wage rates, incomes and prices for the regions of Great Britain," Applied Economics, Taylor and Francis Journals, vol. 37(21), pages 2417-2428, December. [Downloadable!] (restricted)
  6. Overman, Henry G. & Rice, Patricia & Venables, Anthony J., 2008. "Economic Linkages Across Space," CEPR Discussion Papers 6786, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2004. "Spatial Wage Disparities: Sorting Matters!," CEPR Discussion Papers 4240, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  8. Eleonora Patacchini, 2008. "Local analysis of economic disparities in Italy: a spatial statistics approach," Statistical Methods and Applications, Springer, vol. 17(1), pages 85-112, February. [Downloadable!] (restricted)
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