This paper studies a two-region model in which unemployment, education decisions and interregional migration are endogenous. The poorer region exhibits both lower wages and higher unemployment rates, and migrants to the richer region are disproportionally skilled. The brain drain from the poor to the rich region is accompanied by stronger incentives to acquire skills even for immobile workers. ...

The aim of this research is to evaluate future retail developments in a medium-sized town and the indirect effects of individual behaviour on the local economy. Therefore we combine a spatial microsimulation model with a conditional logit model estimating the spatial shopping behaviour of households to simulate the effect of future retail developments. Then, we estimate the macro effects of the...

Generating effective employment opportunities is one of the principal challenges faced by development planners in Iran. If investment projects are undertaken on the basis of sectoral priorities in production and employment, the economic and social problems emanating from unemployment will be reduced, helping the Country’s process of development. In this paper, an attempt is made to identify key...

This article investigates common economic consequences of population aging and economic integration for agglomeration processes. We introduce demography into the New Economic Geography by generalizing the constructed capital approach to account for changes in the age structure of the population. Interestingly, the level of trade costs triggering catastrophic agglomeration is rather sensitive to...

We investigate the impact of knowledge spillovers and R&D cooperation on innovation activities in three German regions. We begin by estimating the knowledge-production function in order to test for interregional difference with regard to the efficiency of innovation activities. In a second step, we analyze the contribution of spillovers from R&D effort of other private firms and of public resea...

In this paper we endogenously group 311 U.S. cities by using dynamic clustering techniques. Then, we try to determine what the economic determinants of clustering are. In so doing, we use a spatial econometric model that disentangles the effect of intercity interactions operating through the input-output matrix from the effect of all others interactions. Preliminary incomplete version Do not ci...