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Spatial equilibrium in deviations: An application to skill‐premium and skill‐mix heterogeneity

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  • Antonio Accetturo
  • Alberto Dalmazzo
  • Guido de Blasio

Abstract

In this paper, we propose a novel—and general‐purpose—modeling approach. We give a linear representation of the spatial general equilibrium, expressed in terms of local percentage deviations from the benchmark case of symmetry, where all the areas in the economy are taken to be initially identical. To illustrate the flexibility of our approach, we revisit the literature on the spatial heterogeneity of local skill premia and local skill mix. We show that our approach is able to encompass a variety of alternative explanations in a simple “unifying framework.” Finally, we exploit a graphical version of the model to show how to implement empirical tests.

Suggested Citation

  • Antonio Accetturo & Alberto Dalmazzo & Guido de Blasio, 2019. "Spatial equilibrium in deviations: An application to skill‐premium and skill‐mix heterogeneity," Journal of Regional Science, Wiley Blackwell, vol. 59(4), pages 615-632, September.
    • Handle: RePEc:bla:jregsc:v:59:y:2019:i:4:p:615-632
    DOI: 10.1111/jors.12418
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    Cited by:

    1. Carlo Ciccarelli & Alberto Dalmazzo & Daniela Vuri, 2021. "Home Sweet Home: the Effect of Sugar Protectionism on Emigration in Italy, 1876‐1913," Papers in Regional Science, Wiley Blackwell, vol. 100(4), pages 925-957, August.
    2. Alberto Dalmazzo & Guido de Blasio & Samuele Poy, 2021. "Gimme shelter. Public housing programs and industrialization. The INA-casa plan, Italy," Discussion Paper series in Regional Science & Economic Geography 2021-09, Gran Sasso Science Institute, Social Sciences, revised Jun 2021.
    3. Dalmazzo, Alberto & de Blasio, Guido & Poy, Samuele, 2022. "Can Public Housing Trigger Industrialization?," Journal of Housing Economics, Elsevier, vol. 57(C).
    4. Eleonora Bartoloni & Andrea Marino & Maurizio Baussola & Davide Romaniello, 2023. "Urban Non-urban Agglomeration Divide: Is There a Gap in Productivity and Wages?," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(2), pages 789-827, July.

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