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Testing The Neg Model : Further Evidence From Panel Data

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  • Bernard FINGLETON

    ()
    (Department of Economics, University of Strathclyde (Scotland, UK))

Abstract

Local wage variations in the UK are explained by two non-nested rival hypotheses. The first derives from new economic geography theory, in which wages depend on market access. The second come from urban economics theory, giving a reduced form with wage rates dependent on employment density. The paper examines whether one of these rivals is encompassed by the other by fitting an artificial nesting model using three alternative panel data estimators. The estimates indicate that neither hypothesis is encompassed by its rival, suggesting a need for new, more comprehensive, theory.

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File URL: http://region-developpement.univ-tln.fr/fr/pdf/R30/11-Fingleton.pdf
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Bibliographic Info

Article provided by Region et Developpement, LEAD, Universite du Sud - Toulon Var in its journal Région et Développement.

Volume (Year): 30 (2009)
Issue (Month): ()
Pages: 141-158

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Handle: RePEc:tou:journl:v:30:y:2009:p:141-158

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Keywords: PANEL DATA; SPATIALLY CORRELATED ERROR COMPONENTS; MARKET ACCESS; NEW ECONOMIC GEOGRAPHY; SPATIAL ECONOMETRICS; NON-NESTED HYPOTHESIS;

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  1. Mion, Giordano, 2003. "Spatial Externalities and Empirical Analysis: The Case of Italy," ZEW Discussion Papers 03-38, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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