دستمزد منطقه ای و واکنش های بازار اشتغال به پتانسیل بازار در اتحادیه اروپا

In new economic geography models, the spatial distribution of demand is a key determinant of economic outcomes. In one strand, it is argued that higher demand gives rise to a more than proportionate increase in production, a result known as the home market effect. Another strand emphasizes the effects of market sizes on factor prices. We highlight the theoretical connection between these two strands. Using data on 57 European regions, we show how wages and employment respond to differentials in what we call real market potential, a discounted sum of demands derived from the theory. Gadget timed out while loading

The academic attempt to describe, explain and predict the spatial distribution of economic activity has come to be called, among other things, economic geography. Perhaps, the best inspiration for this field comes from satellite pictures of the earth at night. Instead of the blues, greens and browns of daytime photos, we see only the light generated by human activity. These lights appear to be highly concentrated, leading to the central question of economic geography: What forces cause agglomeration (here defined as the spatial concentration of mobile resources)? Until the 1990s, the field took an eclectic approach, content to allow for a variety of mechanisms. Models incorporated this eclecticism by specifying the agglomeration economy as a multiplicative external effect in the production function depending on some measure of the amount of local activity.

The Dixit–Stiglit–Krugman model of monopolistic competition with trade costs is the foundation of new economic geography models. It is not easy to test. We frame our analysis around the iso-profit condition of the model and two polar cases through which a spatial equilibrium can be reached. The first case is where factor prices are equalized and firms (and hence production and employment) choose locations based on the spatial distribution of demand. The second polar case takes the location of firms as given and solves for the maximum wage consistent with equal profits. We investigate empirical implications of both polar cases using data on 13 manufacturing industries and 57 regions in Europe from 1985 to 2000. Three sets of findings indicate that wage adjustment is the main path towards spatial equilibrium in this data.