This paper discusses the smallness of subsidiary jurisdictions as a third dimension of centrality, besides vertical centrality and fragmentation (horizontal centrality). A panel analysis concerning all 26 Swiss cantons (from 1990 to 2003) shows that public expenditure per-capita increases with...

This paper argues that the conventional definition of the elasticity of complementarity is not well suited to deal with the case of increasing returns. It proposes a slightly different formula, that uses a distance function formulation instead of a production function. The proposed definition...

While exports within NAFTA face a lower hazard of ceasing, its onset has increased the hazard for Mexican and US intra NAFTA exports. Intra NAFTA exports still enjoy a lower hazard relative to exports to non-members. While NAFTA did affect the hazard for Canada's exports in the short run, its...

Combining micro and macro data, we construct demand-side shocks, which we take to be exogenous for individual firms. We estimate a reduced-form model to describe how firms adjust their production, employment, capital stock, and inventories in response to such shocks. Then, we chose the...