Putting new economic geography to the test: free-ness of trade and agglomeration in the EU regions

Based on a new economic geography model by Puga (1999), we use the equilibrium wage equation to estimate two key structural model parameters for the NUTS II EU regions. The estimation of these parameters enables us to come up with an empirically based free-ness of trade parameter. We then confront the empirically grounded free-ness of trade parameter with the theoretical relationship between this parameter and the degree of agglomeration. This is done for two versions of our model: one in which labor is immobile between regions, and one in which labor is mobile between regions. Overall, and in line with related studies, our main finding is that agglomeration forces still have only a limited geographical reach in the EU. Agglomeration forces appear to be rather localized

Are there localized saddles behind the heterogeneous dynamics of supercooled liquids?

We numerically study the interplay between heterogeneous dynamics and properties of negatively curved regions of the potential energy surface in a model glassy system. We find that the unstable modes of saddles and quasi-saddles undergo a localization transition close to the Mode-Coupling critical temperature. We also find evidence of a positive spatial correlation between clusters of particles having large displacements in the unstable modes and dynamical heterogeneities.Comment: 7 pages, 3 figures, submitted to Europhys. Let

Perspectives on the sources of heterogeneity in Indian industry

The authors examine technical efficiency variation across four industrial sectors in India, using a stochastic production frontier technique. The results are comparable to technical efficiency distribution patterns obtained in other countries. The authors examine heterogeneity in firm-level efficiency against internal, firm-level characteristics and against external characteristics (industry and location). The results suggest that managerial effectiveness significantly influences efficiency and that considerable benefits derive from location within established industrial clusters for particular industries. The methodology and findings indicate that the study of industry-specific technical efficiency patterns is a useful analytical tool for tracking domestic firms'response to liberalization and the advance of market forces. An important policy implication of the authors'results: There is considerable room for efficiency gains through better organization and management of production processes and improved supply chain management, even in the highly organized corporate sector. These gains could be achieved by purely internal learning processes with no extra investment in physical plant or equipment, or with the help of outside consultants, or through business alliances with partners from industrial countries (a rising trend). The results also show that greater technical efficiency correlates with better energy use and higher investments in plant management. How firms can be induced to undertake such investments in the"software"of production is an important issue. Liberalization and globalization are likely to bring significant productivity gains even in low-technology industries as managers gear up to meet the challenges of competition.Environmental Economics&Policies,Water and Industry,Health Monitoring&Evaluation,Economic Theory&Research,Banks&Banking Reform

The nature of the finite temperature QCD transition as a function of the quark masses

The finite temperature QCD transition for physical quark masses is a crossover. For smaller quark masses a first-order phase transition is expected. Using Symanzik improved gauge and stout improved fermion action for 2+1 flavour staggered QCD we give estimates/bounds for the phase line separating the first-order region from the crossover one. The calculations are carried out on two different lattice spacings. Our conclusion for the critical mass is $m_0 \lesssim 0.07 \cdot m_{phys}$ for $N_T=4$ and $m_0 \lesssim 0.12 \cdot m_{phys}$ for $N_T=6$ lattices.Comment: Talk presented at the XXV International Symposium on Lattice Field Theory, July 30 - August 4 2007, Regensburg, Germany. 7 pages, 6 figure

Firm Location Choice in Cities: Evidence from China, India, and Brazil

We use large survey data sets of firms provided by the World Bank for China, India, and Brazil?Investment Climate Surveys?to address the important question: what determines the locational choice of firms among cities in these countries. We find that capital cities in all countries are attractive for firms to locate. In India and China, labour-intensive firms tend not to locate in mid-sized or large cities, when compared with smaller ones, perhaps due to higher wage, training and attrition costs. Labour regulations both in India and China deter firms from locating in the larger cities, but not in Brazil. Exporter firms prefer to locate in large cities in these two countries, but not so in the largest cities of Brazil. Finally, while the size of a firm has no impact on its location decision in China, large firms in India prefer to locate in the largest cities, but not in mid-sized cities. Proximity to inputs within the city has a positive impact on firm location. The post-reform firms in China tend to locate in the large cities whereas in the case of India, post-1991 firms refrain from locating in the mid-sized or large cities. These findings have important policy implications for urban governance in these countries, which are summarized in the paper.India, China, Brazil, location choice, industry location, firm location

On the Emergence of Nonextensivity at the Edge of Quantum Chaos

We explore the border between regular and chaotic quantum dynamics, characterized by a power law decrease in the overlap between a state evolved under chaotic dynamics and the same state evolved under a slightly perturbed dynamics. This region corresponds to the edge of chaos for the classical map from which the quantum chaotic dynamics is derived and can be characterized via nonextensive entropy concepts.Comment: Invited paper to appear in "Decoherence and Entropy in Complex Systems", ed. H.T. Elze, Lecture Notes in Physics (Springer, Heidelberg), in press. 13 pages including 6 figures and 1 tabl