A Macroeconomic Growth Model of Competing Regions
In the growth context, this paper concentrates on the supply-demand determination of regional equilibrium incomes in regional goods markets as a framework for discussing the implications of competition among regions. Prices at the regional and national level are fixed so that all variables are of real magnitudes; there are no money markets. Regional factor stocks (private and public capital, labor force in the form of human capital) and regional demand set up the barriers to economic growth (cf. generally Barro, Sala-i-Martin (1995)). The analysis is restricted to two regions embedded in the State. The supply side of the model is represented by different regional production function is which generate regional factor demand. Demand-side determination of equilibrium regional incomes arises from the definitions of national accounting enriched by basic behavioral relationships. Substantial consideration is given to the equalization of regional supply and demand in diverging cases (e.g., excess demand in one of the two regions). Changes in factor stocks (differential equations) maintain the dynamics of the model. Regional competition is expressed by variations of regional and state parameters. Their numerical influences on growth will be dealt with in Bobzin (2000).
|Date of creation:||2000|
|Contact details of provider:|| Postal: Hölderlinstr. 3, D - 57068 Siegen|
Phone: ++49 (0)271 740-3139
Fax: ++49 (0)271 740-2590
Web page: http://www.uni-siegen.de/fb5/vwl/research/diskussionsbeitraege/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sie:siegen:90-00. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael Gail)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.