Macroeconomic effects of the geography of knowledge production: EcoRET, a macroeconometric model with regionally endogenized technological change for Hungary
AbstractMainstream economic thinking is still characterized by a predominantly a-spatial theoretical structure. Though economists are able to model the impacts of capital, labor or technology on output, employment or prices at both macro and micro levels, our methodological tools are still not sensitive to the influence of geography on the way inputs contribute to production. Empirical investigations of the relationship between agglomeration and macroeconomic growth are still relatively rare in the literature. It is also a very recent advancement that geographical structure is modeled simultaneously with other variables in macroeconomic models. This paper introduces EcoRET the macroeconometric model with regionally endogenized technological change for Hungary. The unique feature of EcoRET is that it incorporates spatial structure into a traditional macroeconometric model by a regional block of technological change. The model can be applied for policy simulations on the macroeconomic effects of changing geographical distribution of regional financial supports. JEL classification: O31, H41, O40 Keywords: endogenous growth theory, new economic geography, knowledge spillovers, total factor productivity, agglomeration economies
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Date of creation: Aug 2004
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Find related papers by JEL classification:
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-09 (All new papers)
- NEP-GEO-2005-11-09 (Economic Geography)
- NEP-MAC-2005-11-09 (Macroeconomics)
- NEP-URE-2005-11-09 (Urban & Real Estate Economics)
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.:
- Zoltán Ács & Attila Varga, 2005.
"Entrepreneurship, Agglomeration and Technological Change,"
Small Business Economics,
Springer, vol. 24(3), pages 323-334, 02.
- Zoltan J. Acs & Attila Varga, 2004. "Entrepreneurship, Agglomeration and Technological Change," Papers on Entrepreneurship, Growth and Public Policy 2004-06, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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