The New Economic Geographhy (NEG) models explain the formation and the consolidation of economic agglomerations through a self-sustained process in which a trade-off between centripetal and centrifugal forces takes place. The centripetal forces work through two mechanisms: those known as the...

Regional inequalities in product per capita and labour productivity in the EU are large and persistent. Building on a model in which aggregate increasing returns is the result of the increase in the number of varieties of composite services, under competitive manufactures, we derive a simple and...

The effect of openness and trade orientation on economic growth remains a highly contentious issue. Trade facilitates knowledge diffusion and the adoption of more advanced and efficient technologies which faster total factor productivity (TFP) growth and, hence, per capita income. New...

The power purchasing parity (PPP) hypothesis and the law of one price (LOP) predict (long-run) price equalization across the space. In the absence of market frictions and transport costs, arbitrage should guarantee the same price, in a common currency, for a given commodity in different...

The main objective of this paper is to outline the relevance of regional externalities when explaining growth. The recent literature has already put attention to external economies or spillover effects, although in most cases it has been at firm or sectoral level. However, it is our belief that...

This paper proposes a set of tools to analyse the regional distribution of unemployment. As we are interested in the characteristics of the whole distribution, we complement results from the traditional regression analysis with those from the estimation of its external shape before and after...

This paper tests whether Spanish industry adjusted the amount of inputs and output to those considered optimal given their prices in each time period. With this aim, we use the short- and long-run equilibrium models given by duality theory, and we apply the optimality tests derived from them for...