Testing the 'new economic geography': a comparative analysis based on EU regional data
AbstractThis paper evaluates 'new economic geography' theory by comparing it with a competing non-nested model derived from urban economics. Using bootstrap inference and the J-test, the paper shows that while NEG theory is supported by the data, it needs to be modified to achieve this, and it is not the only, or even the best or simplest, explanation of regional wage variations across the EU.
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Bibliographic InfoPaper provided by EconWPA in its series Urban/Regional with number 0504003.
Length: 37 pages
Date of creation: 11 Apr 2005
Date of revision:
Note: Type of Document - pdf; pages: 37. this is a short version of a longer paper presented at the Kiel Institute for World Economics conference on spatial econometrics.
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'new economic geography'; urban economics; bootstrap; J test;
Find related papers by JEL classification:
- R - Urban, Rural, Regional, Real Estate, and Transportation Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-04-16 (All new papers)
- NEP-GEO-2005-04-16 (Economic Geography)
- NEP-URE-2005-04-16 (Urban & Real Estate Economics)
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- Knaap, Thijs, 2006.
"Trade, location, and wages in the United States,"
Regional Science and Urban Economics,
Elsevier, vol. 36(5), pages 595-612, September.
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