This paper analyses the level of relative specialisation in terms of gross fixed capital formation in EU regions for the period between 1985 and 1994. Controlling for heteroscedasticity and potential endogeneity problems, we get consistent econometric results. Larger market and regional sizes...

This paper analyses the level of relative specialisation in terms of gross fixed capital formation in EU regions. Larger market and regional sizes diminish; a higher unemployment rate, population density, the fact of being a central region, the distance to the economic centre, and economic...

"The Spatial Economy Cities, Regions and International Trade", by Masahisa Fujita, Paul Krugman and Anthony J. Venables, has been seen as the best synthesis of the so-called new economic geography. The purpose of this paper is twofold: first, to review the book; and second, to place it in the...

This paper examines how different electoral rules affect the location decisions of firms through the effect on regional policy. The equilibrium location of industry in the economically smaller (larger) region is higher under majoritarian (proportional) elections. The standard prediction in the...

This paper analyzes the location of manufacturing activities when regional policy is determined by each region’s relative propensity to vote. Once voting over government transfers to regions is included in an economic geography framework with size asymmetries, the standard prediction that the...

Many countries devote a large part of their national budget to regional policy. This paper analyses the interaction of economic integration and some typical regional policies in a new economic geography model with three regions of different size. The policies analysed are the relocation of...

This paper describes the determinants of FDI location among Italian provinces, focusing on the role of market potential (in terms of market access to Mediterranean and European countries) and institutions (presence of Mafia-type crime, corruption of public officers, inefficiency of the labour...

Since the Lisbon Agenda (2000), the European Union policies are increasingly oriented towards innovation as attested to by the deep change of the new Regional Policy. This paper proposes an analysis of an innovation subsidy policy in an agglomeration and growth model à la Martin and Ottaviano...