IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v41y2007i1p19-38.html
   My bibliography  Save this article

Modelling a Regional Economic System: The Case of Lombardy

Author

Listed:
  • Maurizio Baussola

Abstract

Baussola M. (2007) Modelling a regional economic system: the case of Lombardy, Regional Studies 41, 19-38. During recent years the demand for quantitative economic investigation to be used for policy analysis has grown rapidly. In addition, the European economic and monetary integration process has increased the economic impact of regional economies, thus calling for analytical instruments aimed at supporting the decision-making process. A regional econometric model of Lombardy's labour market was set up in which both labour demand and supply are endogenously determined and, thus, unemployment is determined by their interaction. Therefore, labour demand in both the industrial sector and in private services is modelled, while labour supply is split into two components that define, respectively, the participation rate and self-employment. The model simulations evaluate the response of the regional labour market, in comparison with the national one, to exogenous shocks depending on shocks in either demand or supply. The intersectoral difference highlights the fact that industry, although declining in terms of employment, still maintains a crucial role in generating employment multiplier effects, which in turn may reduce unemployment. This evidence has important policy implications as it suggests that industrial policy may play a crucial role in stimulating labour demand and supply, and through this route the whole regional growth process. Baussola M. (2007) La modelisation d'un systeme economique regional: etude de cas de la Lombardie, Regional Studies 41, 19-38. On cherche a construire un modele econometrique regional du marche du travail de la Lombardie au sein duquel la demande et l'offre de main-d'oeuvre sont determinees de facon endogene. Les simulations evaluent la reponse du marche du travail aux chocs exogenes sur le plan regional, plutot que du point de vue national, par rapport a la demande ou a l'offre. La difference intersectorielle souligne que l'industrie joue toujours un role cle dans la production des effets multiplicateurs sur l'emploi qui, a leur tour, pourraient reduire le chomage. Les preuves ont des implications pour la politique, parce que cela laisse supposer que la politique industrielle pourrait jouer un role capital dans la stimulation du processus de croissance regionale sous tous ses aspects. Demande de main-d'oeuvre Offre de main-d'oeuvre Modeles econometriques regionaux Simulation Baussola M. (2007) Modellierung eines regionalen Wirtschaftssystems: der Fall der Lombardei, Regional Studies 41, 19-38. Wir errichten ein okonometrisches Regionalmodell des Arbeitsmarkts in der Lombardei, in dem sowohl die Nachfrage als auch das Angebot an Arbeitskraften endogen festgelegt werden. Durch die Modellsimulationen wird die Reaktion des regionalen Arbeitsmarkts auf exogene Storungen von Angebot oder Nachfrage untersucht und mit dem landesweiten Markt verglichen. Der Unterschied innerhalb des Sektors verdeutlicht die Tatsache, dass die Industrie auf dem Arbeitsmarkt weiterhin eine zentrale Rolle bei der Erzeugung multiplikatorischer Effekte spielt, welche wiederum zum Abbau der Arbeitslosigkeit beitragen konnen. Dieser Nachweis hat wichtige Auswirkungen auf die Politik, denn er legt den Schluss nahe, dass die Industriepolitik eine zentrale Rolle zur Forderung des Wachstums in der gesamten Region spielen kann. Nachfrage nach Arbeitskraften Angebot an Arbeitskraften Okonometrische Regionalmodelle Simulation Baussola M. (2007) Modelando un sistema de economia regional: el caso de Lombardia, Regional Studies 41, 19-38. Hemos creado un modelo econometrico regional sobre el mercado laboral de Lombardia donde la oferta y la demanda en el mercado laboral se determinan segun un modelo endogeno. En las simulaciones del modelo se evalua la respuesta del mercado de trabajo regional a choques exogenos en funcion de cada choque en la oferta o la demanda, comparandolo con el mercado nacional. La diferencia intersectorial destaca el hecho de que la industria sigue manteniendo un papel crucial para generar con efectos multiplicadores de empleo que, a su vez, pueden reducir el desempleo. Esta evidencia tiene importantes implicaciones politicas dado que sugiere que la politica industrial podria desempenar una funcion determinante en el estimulo del proceso de crecimiento regional en su conjunto. Demanda laboral Oferta laboral Modelos econometricos regionales Simulacion

Suggested Citation

  • Maurizio Baussola, 2007. "Modelling a Regional Economic System: The Case of Lombardy," Regional Studies, Taylor & Francis Journals, vol. 41(1), pages 19-38.
    • Handle: RePEc:taf:regstd:v:41:y:2007:i:1:p:19-38
    DOI: 10.1080/00343400600929036
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343400600929036
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00343400600929036?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Werner Roeger & Jan in 't Veld, 1997. "QUEST II. A Multi-Country Business Cycle and Growth Model," European Economy - Economic Papers 2008 - 2015 123, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    2. Glickman, Norman J., 1977. "Econometric Analysis of Regional Systems," Elsevier Monographs, Elsevier, edition 1, number 9780122865503 edited by Mills, Edwin S..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andy Pike, 2007. "Editorial: Whither Regional Studies?," Regional Studies, Taylor & Francis Journals, vol. 41(9), pages 1143-1148.
    2. Simon FAUSER & Maurizio BAUSSOLA & Jürgen ROTH, 2008. "The Footprint of Innovation- Regional Labour Market Reactions to Macroeconomic Shocks," EcoMod2008 23800038, EcoMod.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fernand Martin, 1991. "Measuring the Impact of Free Trade: Local Analysis versus Regional and National Models," International Regional Science Review, , vol. 14(1), pages 1-14, April.
    2. Paul M. Beaumont, 1983. "Wage Rate Specfication in Regional and Interregional Econometric Models," International Regional Science Review, , vol. 8(1), pages 75-83, June.
    3. Anne Brunila & Marco Buti & Jan In 'T Veld, 2003. "Fiscal Policy in Europe: How Effective Are Automatic Stabilisers?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 30(1), pages 1-24, March.
    4. Acosta, Juan & Rancan, Antonella & Sergi, Francesco, 2022. "Centralised and Decentralised Approaches to Multi-Country Macroeconometric Modelling at the Commission of the European Communities: The Short-Lived EUROLINK Model," Economics & Statistics Discussion Papers esdp22081, University of Molise, Department of Economics.
    5. K. Mc Morrow & W. Röger, 2002. "EU pension reform - An overview of the debate and an empirical assessment of the main policy reform options," European Economy - Economic Papers 2008 - 2015 162, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    6. JunHo Yeo & David Holland, 2004. "Economic Growth in Washington: An Examination of Migration Response and a Test of Model Accuracy," International Regional Science Review, , vol. 27(2), pages 205-237, April.
    7. Loïc Cadiou & Stéphanie Guichard & Mathilde Maurel, 2000. "Disparités institutionnelles et flexibilité des marchés du travail dans l'UE," Économie et Statistique, Programme National Persée, vol. 332(1), pages 49-63.
    8. Konstantina Gkritza & Kumares Sinha & Samuel Labi & Fred Mannering, 2008. "Influence of highway construction projects on economic development: an empirical assessment," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(3), pages 545-563, September.
    9. Sergio J. Rey, 1998. "The Performance of Alternative Integration Strategies for Combining Regional Econometric and Input-Output Models," International Regional Science Review, , vol. 21(1), pages 1-35, April.
    10. Roberta Capello & Andrea Caragliu & Ugo Fratesi, 2017. "Modeling Regional Growth between Competitiveness and Austerity Measures," International Regional Science Review, , vol. 40(1), pages 38-74, January.
    11. JACQUINOT Pascal & MIHOUBI Ferhat, 2010. "The Optimality of the Taylor Rule in MARCOS: Some Deterministic and Stochastic Experiments," EcoMod2003 330700073, EcoMod.
    12. Andrés, Javier & Boscá, José E. & Ferri, Javier, 2013. "Household debt and labor market fluctuations," Journal of Economic Dynamics and Control, Elsevier, vol. 37(9), pages 1771-1795.
    13. P Gordon & J Ledent, 1980. "Modeling the Dynamics of a System of Metropolitan Areas: A Demoeconomic Approach," Environment and Planning A, , vol. 12(2), pages 125-133, February.
    14. Aurelio Mattei, 1981. "Un modèle économétrique pour le Canton du Valais," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 117(IV), pages 605-616, December.
    15. J¨¹rgen Roth & Simon G. Fauser, 2011. "Reaction Patterns of German Regional Labour Markets to Macroeconomic and Policy-induced Shocks¡ª A Comparative Analysis," Review of Economics & Finance, Better Advances Press, Canada, vol. 1, pages 87-103, February.
    16. David L. Kay & James E. Pratt & Mildred E. Warner, 2007. "Role of Services in Regional Economy Growth," Growth and Change, Wiley Blackwell, vol. 38(3), pages 419-442, September.
    17. Anger, Annela & Köhler, Jonathan, 2010. "Including aviation emissions in the EU ETS: Much ado about nothing? A review," Transport Policy, Elsevier, vol. 17(1), pages 38-46, January.
    18. Marco Ratto & Riccardo Girardi, 2004. "Bayesian Estimation of Total Investment Expenditures For Romanian Economy using DYNARE," Computing in Economics and Finance 2004 151, Society for Computational Economics.
    19. André Sorensen & Junichiro Okata & Sayaka Fujii, 2010. "Urban Renaissance as Intensification: Building Regulation and the Rescaling of Place Governance in Tokyo’s High-rise Manshon Boom," Urban Studies, Urban Studies Journal Limited, vol. 47(3), pages 556-583, March.
    20. Fred M. Gottheil, 1986. "Marx versus Marxists on the Role of Military Production in Capitalist Economies," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 8(4), pages 563-573, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:41:y:2007:i:1:p:19-38. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.