Spatial dependence and Kaldor's laws: Evidence for the European regions

In this paper we provide an outline of Kaldor's growth model and tests its relevance to the economic experience of European regions during the 1984-1992 period. The Kaldor's first law asserts that manufacturing is the engine of economic growth. The second proposition, also known as Verdoorn's law, states that there is a strong positive relation between the productivity growth in manufacturing and the output growth of manufacturing. The third law suggests that overall productivity growth is positively related to output growth in manufacturing and negatively related to the employment of non manufacturing sectors. The empirical results, corrected for the presence of spatial autocorrelation, indicates that Kaldor's second and third laws are compatible with the economic growth of European regions during the period 1984-1992. Keywords: Kaldor's laws, regional economics, spatial autocorrelation

Survey of Research on Financial Sector Modeling within DSGE Models: What Central Banks Can Learn from It

This survey gives insight into the ongoing research in financial frictions modeling. The recent financial turmoil has fueled interest in operationalizing financial frictions concepts and introducing them into tools for policy makers. The rapid growth of the literature on these issues is the motivation for our review of the presented approaches. The empirical facts that motivate the inclusion of financial frictions are surveyed. This survey provides a description of the basic approaches for introducing financial frictions into dynamic stochastic general equilibrium models. The significance and empirical identification of the financial accelerator effect is then discussed. The role of financial frictions models in CNB monetary and macroprudential policy is also described. It is concluded that given the heterogeneity of the approaches to financial frictions it is beneficial for the conduct of monetary policy to focus on the development of satellite approaches. The role of financial frictions in DSGE models for macroprudential policy is also discussed, as these models can be used to generate stress-testing scenarios. It can be concluded that DSGE models with financial frictions could complement current stress-testing practice, but are not able to replace stress tests.DSGE models, financial accelerator, financial frictions.

Lobbying, political competition, and local land supply: recent evidence from Spain

We analyze whether local land supply is influenced by the degree of political competition, and interpret the findings as being indicative of the influence wielded by land development lobbies. We use a new database including both political and land supply data for more than 2,000 Spanish municipalities for the period 2003-2007. In Spain, land use policies are largely a local responsibility with municipalities having periodically to pass compre- hensive land use plans. The main policy variable in these plans, and the one analyzed here, is the amount of land classified for potential development. We measure local political competition as the margin of victory of the incumbent government. We instrument this variable using the number of votes obtained by parties represented in local government when standing at the first national legislative elections following the re-establishment of democracy, and the number of votes they actually obtained regionally at the national legislative elections. The results indicate that stiffer political competition does indeed reduce the amount of new land designated for development. This effect is found to be most marked in suburbs, in towns with a high percent of commuters and homeowners, and in municipalities governed by the left.urban growth controls, political economy, land use regulations

Industrial Location At the Intra-Metropolitan Level: A Negative Binomial Approach

The objective of this paper is to analyse the incidence of agglomeration economies on the new firms’ location decisions inside metropolitan areas. Following the literature we consider that agglomeration economies are related to the concentration of an industry (location economies) and/or the size of the city itself (urbanisation economies). We assume that those economies differ according the technological level of firms. So we use a sample of new firms belonging to high, intermediate and low technology levels. Our results confirm those sectoral differences and show some interesting location patterns of manufacturing firms Taking into account the renovated debate about the importance of the geography and distance in the location of economic activity, we introduce in the estimation the effect of the central city size as determinant for the location of new firms in the rest of the metropolitan area. This allows us to analyse if a suburbanisation effect exists and if that effect is the same depending on the industry and the central city size of the metropolitan area. Our main statistical source is the REI (Spanish Industrial Establishments Register), which has plant-level microdata for the creation and location of new industrial firms.

Acceptance Remarks

Bryan Marsal\u27s acceptance remarks at the annual Emory Bankruptcy Developments Journal Banquet. Mr. Marsal is the thirteenth recipient of the Annual Distinguished Service Award for Lifetime Achievement

“How Much Truth Can a Spirit Dare?” Nietzsche’s “Ethical” Truth Theory as an Epistemic Background for Philosophizing with Children

Philosophizing, according to E. Martens, can be seen as an elemental cultural technology, like arithmetic or writing, which both can and should be acquired in childhood. Martens is proposing here an understanding of philosophy that attributes value not only to the content canon, but also to the process itself, as Wittgenstein, for one, also did when he stated in the Tractatus Logico-Philosophicus, “Philosophy is not a doctrine, but an activity.” For Socrates, this activity consisted in “giving an account of ourselves, our knowledge, our way of life.” In Nietzsche’s view, the precondition for this kind of accounting is the personal capacity for self-distancing, which allows us to grasp our quite individual primal experiences of emotion, perception, sudden illuminations of insight, and so on, as general concepts and logical structures

Experimental control of pattern formation by photonic lattices

We study the control of modulational instability and pattern formation in a nonlinear dissipative feedback system with a periodic modulation of the material refractive index. We use a one-dimensional photonic lattice in a single-mirror feedback configuration and identify three mechanisms for pattern control: bandgap suppression of instability modes, periodicity induced pattern modes, and orientational pattern control.The authors acknowledge the support of the Conseil Régional de Lorraine, the bilateral FrenchAustralian Science and Technology program, and the Australian Research Council through Discovery projects