This paper is an attempt to explain variations across EU regions in productivity growth and takes into consideration … the important structure of the age-productivity relation of Human Capital. The study is fundamentally based on the theory … of Fingleton's model which analyses the spatial process of productivity growth on the on the foundations of the theory of …

average labor productivity in one spatial unit on employment density and other controls. The novelty of our analysis is that … agglomeration in the conditional mean of labor productivity. Additionally, the QR and IVQR estimators find a progressively … decreasing, but still positive, effect of employment density along the conditional distribution of labor productivity. …

with a monopolistic competition framework a la Dixit-Stiglitz considering heterogeneous firms with different productivity … run equilibrium only those firms with survive in the market which have a sufficiently high productivity level or can … compensate their lower productivity level by wage cost advantages. We show that the increase of productivity might be explained …

. Increased productivity allows producing a given quantity wit less labour. This is the displacement effect of technical progress …