The paper presents a multiregional endogenous growth model designed for calibration with real world data and for numerical policy evaluation. It integrates four strands of research: (1) the Ramsey model of consumer behaviour, (2) Tobin's q-theory of investment, (3) Romer's theory of endogenous...

The paper examines the impact of communication cost reductions on growth and welfare by means of an endogenous spatial growth model. Policy makers having to decide upon transport policies often claim certain policies such as infrastructure investments to have growth stimulating effects that...

Theoretical reasoning shows that spatial effects of transport cost reductions may crucially depend on market structures in the tradables sector (degree of market power, strength of economies of scale, free or no free entry). The aim of this paper is to compare empirically the effects of...

This paper quantifies regional welfare effects of new transport links, which are going to be established in the framework of Trans-European Networks (TEN). It is confined to the regional welfare effects resulting from the use of the new links for trading goods and services. Effects from the...

The paper shows that in a spatial price equilibrium under monopolisitc competition welfare can be increased by subsidising transport. Therefore transport can be said to exert a positive (pecuniary) externality. This is demonstrated by introducing a subsidy into a partial spatial price...

According to New Growth Theory one cannot rely on the convergence mechanisms inherent in traditional neoclassical constant returns to scale models. Convergence as well as divergence is possible, in general, depending on the assumptions about technology, factor mobility and ease of knowledge...