This paper extends the Puga (1999) model by introducing urban frictions. It assumes that the agglomeration of manufacturing in a city imposes a cost on the inhabitants of the agglomerated region. Furthermore, an implicit function methodology is developed to provide a numerical stability function...

The paper proposes a new algorithm for finding the confidence set of a collection of forecasts or prediction models. Existing numerical implementations for finding the confidence set use an elimination approach where one starts with the full collection of models and successively eliminates the...

The recent increase in the breath of computational methodologies has been matched with a corresponding increase in the difficulty of comparing the relative explanatory power of models from different methodological lineages. In order to help address this problem a universal information criterion...

Large scale, computationally expensive simulation models pose a particular challenge when it comes to estimating their parameters from empirical data. Most simulation models do not possess closed form expressions for their likelihood function, requiring the use of simulation-based inference,...

La nouvelle économie géographique présente les « rendements croissants d’agglomération » comme une variable explicative privilégiée de la concentration spatiale de l’activité économique. Dans ce cadre théorique, ces rendements croissants découleraient d’une préférence pour la...

La concentration de l’activité économique dans l’espace, et l’existence même des villes, est une des régularités empiriques les plus visibles en économie. Il n’est donc pas étonnant que cet aspect géographique de l’économie soit une notion ancienne, comme le montrent les...

This paper shows that signal restoration methodology is appropriate for predicting the equilibrium state of certain economic systems. A formal justification for this is provided by proving the existence of finite improvement paths in object allocation problems under weak assumptions on...

Knowledge spillovers have recently been analysed by Barde (2009) and Ostbye (2010) in a spatial general equilibrium framework. Both studies lack explicit micro foundations for the spillovers ‚Äí spillovers just take place and depend on firm density. The models must therefore be seen as...

Maximum entropy predictions are made for the Kirman ant model as well as the Abrams-Strogatz model of language competition, also known as the voter model. In both cases the maximum entropy methodology provides good predictions of the limiting distribution of states, as was already the case for...