Increasing returns in matching between skilled workers and firms create a local thick-market externality when labour markets are geographically segmented. This generates an agglomeration force that can offset the dispersion force due to local competition in a segmented product market. When this...

The aim of this paper is to discuss the process of regional convergence within the framework of an overlapping generations model in which the engine of growth is the accumulation of human capital. In particular, we consider different education funding systems and compare their performance in...

The paper presents the newly developed dynamic spatial general equilibrium model of European Commission, RHOMOLO. The model incorporates several elements from economic geography in a novel and theoretically consistent way. It describes the location choice of different types of agents and...

The paper presents the newly developed dynamic spatial general equilibrium model of European Commission - RHOMOLO, in which the interplay of agglomeration and dispersion forces can be analysed in a novel and theoretically consistent way. A particular attention is paid to flows of goods, factors...

In this paper, we analyse the geographic concentration of economic activities within the framework of a two countries and four regions model. Trade both between regions and countries entails transport costs which are differentiated according to the interregional or international nature of the...

The aim of this paper is to discuss the issue of monetary policy coordination in a framework where partners differ not because of idiosyncratic shocks but because of structural asymmetries affecting the conduct of national economic policies. These are introduced at the level of the country size...

In this Paper, we develop a two country four region model allowing for a core periphery pattern inside countries. We then examine how both the integration and the agglomeration process inside a given country affects the pattern of specialization and international trade. We also analyse how...