This paper examines empirical strategies that have been or could be used to evaluate the importance of agglomeration and trade models. This theoretical approach, widely known as ‘New Economic Geography’ (NEG), emphasizes the interaction between transport costs and firm-level scale economies...

This Paper estimates the agglomeration benefits that arise from vertical linkages between firms. The analysis is based on international trade and economic geography theory developed by Krugman and Venables (1995). We identify the agglomeration benefits of the spatial variation in firm level...

Using data on name distributions in 95 French departments observed from 1946 to 2002, we investigate spatial and social mechanisms behind the transmission of parental preferences. Drawing inspiration from recent work on social interactions, we develop a simple discrete choice model that predicts...

Major economic transitions, even when they are disruptive, do not occur instantaneously but rather occur over time, as regions within a country change at different rates. Accordingly, these dynamics may be reflected in a geographic lifecycle with different regions characterized by different...

In this paper we investigate the determinants of entrepreneurial activity in a cross section of German regions for the period 1998-2005. Departing from the knowledge spillover theory of entrepreneurship, the focus of our analysis is on the role of the regional environment and, in particular,...