Arbeitspapier

|aTesting nonlinear New Economic Geography models

We test a New Economic Geography (NEG) model for U.S. counties, employing a new strategy that allows us to bring the full NEG model to the data, and to assess selected elements of this model separately. We find no empirical support for the full NEG model. Regional wages in the U.S. do not respond to local wage shocks in the way predicted by the model. We show that the main reason for this is that the model does not predict either the migration patterns induced by local wage shocks or the repercussions of this migration for regional wages correctly.

Language
Englisch

Bibliographic citation
Series: Reihe Ökonomie / Economics Series ; No. 253

Classification
Wirtschaft
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Model Construction and Estimation
Size and Spatial Distributions of Regional Economic Activity
Subject
New Economic Geography
spatial econometrics

Event
Geistige Schöpfung
(who)
Bode, Eckhardt
Mutl, Jan
Event
Veröffentlichung
(who)
Institute for Advanced Studies (IHS)
(where)
Vienna
(when)
2010

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Bode, Eckhardt
  • Mutl, Jan
  • Institute for Advanced Studies (IHS)

Time of origin

  • 2010

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