We use a dynamic model to study the effects of technology and learning on the long run economic growth rates of a leading and a lagging region. New technologies are developed in the leading region but technological improvements in the lagging region are the result of learning from the leading...

I show that the nontradable sector of a regional economy benefits from attracting jobs in the tradable sector. I find that on average one new job in a tradable industry in a city will attract 1.02 extra jobs in the nontradable sector of that same city. This local multiplier effect increases with...

We study innovation and the resulting Schumpeterian economic growth that this innovation gives rise to in a model with N heterogeneous regions. For each region i where i=1,...,N, our analysis leads to five findings. First, we define the balanced growth path (BGP) allocations and the equilibrium...

A key aspect of understanding how regions grow is the interplay between jobs in the tradable and jobs in the non-tradable sector. Jobs in the tradable sector supply the world market and can therefore move from region to region, but every region has a local demand for non-tradable goods and the...