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Author Bode, Eckhardt ♦ Mutl, Jan
Source EconStor
Content type Text
Publisher Kiel Institute for the World Economy (IfW)
File Format PDF
Language English
Subject Domain (in DDC) Social sciences ♦ Economics
Subject Keyword New Economic Geography ♦ Spatial econometrics ♦ 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
Abstract 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.
Part of series Kiel Working Paper x1605
Learning Resource Type Article
Publisher Date 2010-01-01
Publisher Place Kiel
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