This article considers some of the issues and difficulties relating to the use of spatial panel data regression in prediction, illustrated by the effects of mass immigration on wages and income levels in local authority areas of Great Britain. Motivated by contemporary urban economics theory,...

According to the simplest neoclassical theory, closer integration will ultimately eliminate the current differences in per capita incomes between European Union (EU) regions. Models based on the Keynesian tradition and endogenous growth theory suggest different outcomes. This article looks at...

On the assumption that it is sometimes necessary to take a step sideways to make progress, this article describes the author’s preferred spatial econometric modeling approach based around recent theory developed in the field of urban economics. This has many features in common with...

Because of heterogeneity across regions, economic policy measures are increasingly targeted at the regional level and, therefore, require regional forecasts. The data available to compute regional forecasts are usually a pseudo panel of a limited number of observations over time and a large...

This article analyzes artificial neural networks (ANNs) as a method to compute employment forecasts at a regional level. The empirical application is based on employment data collected for 327West German regionsover a periodof fourteenyears. First, the authors compare ANNs to models commonly...