Convergence across States and Regions
ABSTRACT [eng] Transportation costs and monopoly location in presence of regional disparities. . This article aims at analysing the impact of the level of transportation costs on the location choice of a monopolist. We consider two asymmetric regions. The heterogeneity of space lies in both regional incomes and population sizes: the first region is endowed with wide income spreads allocated among few consumers whereas the second one is highly populated however not as wealthy. Among the results, we show that a low transportation costs induces the firm to exploit size effects through locating in the most populated region. Moreover, a small transport cost decrease may induce a net welfare loss, thus allowing for regional development policies which do not rely on inter-regional transportation infrastructures. cost decrease may induce a net welfare loss, thus allowing for regional development policies which do not rely on inter-regional transportation infrastructures. [fre] Cet article d�veloppe une statique comparative de l'impact de diff�rents sc�narios d'investissement (projet d'infrastructure conduisant � une baisse mod�r�e ou � une forte baisse du co�t de transport inter-r�gional) sur le choix de localisation d'une entreprise en situation de monopole, au sein d'un espace int�gr� compos� de deux r�gions aux populations et revenus h�t�rog�nes. La premi�re r�gion, faiblement peupl�e, pr�sente de fortes disparit�s de revenus, tandis que la seconde, plus homog�ne en termes de revenu, repr�sente un march� potentiel plus �tendu. On montre que l'h�t�rog�n�it� des revenus constitue la force dominante du mod�le lorsque le sc�nario d'investissement privil�gi� par les politiques publiques conduit � des gains substantiels du point de vue du co�t de transport entre les deux r�gions. L'effet de richesse, lorsqu'il est associ� � une forte disparit� des revenus, n'incite pas l'entreprise � exploiter son pouvoir de march� au d�triment de la r�gion l
- SourceAvailable from: journals.cluteonline.com[Show abstract] [Hide abstract]
ABSTRACT: The objective of the paper is to review and analyze the health of population and health care expenditure and to examine the trends of convergence of health care expenditure in EU countries. One of the most often used indicators characterizing a population's health is life expectancy at birth. Comparative analyses show that the life expectancy at birth in EU-12 countries is much lower than in EU-15 countries. Although in 1992-2004 the life expectancy increased both in EU-15 countries and in EU-12 countries, the differences in the life expectancy have still remained more or less the same. Besides the low life expectancy in EU-12 countries, also the resources used in health care are below the EU-15 average level. In our paper we test the β-, σ-and γ-convergence of the health care expenditure. For testing β-, σ-and γ-convergence the authors have used cross-sectional data over the period 1992-2004 for health care expenditure as share of GDP and per capita health care expenditure. Data of the World Health Organization (WHO) were used for the research. The study demonstrates that although usually the increase of economic integration facilitates economic growth, the mere fact of the European Union enlargement does not bring along an automatic homogenization of health care expenditure and health policy in the EU-12 countries.
- [Show abstract] [Hide abstract]
ABSTRACT: Long-run income convergence is investigated in the U.S. context. We employ a novel pairwise econometric procedure based on a probabilistic definition of convergence. The time-series properties of all the possible regional income pairs are examined by means of unit root and non-cointegration tests, where inference is based on the fraction of rejections. We distinguish between the cases of strong convergence, where the implied cointegrating vector is [1, −1], and weak convergence, where long-run homogeneity is relaxed. To address cross-sectional dependence, we employ a bootstrap methodology to derive the empirical distribution of the fraction of rejections. We find supporting evidence of U.S. states sharing a common stochastic trend consistent with a definition of convergence based on long-run forecasts of state incomes being proportional rather than equal. We find that the strength of convergence between states decreases with distance and initial income disparity. Using Metropolitan Statistical Area data, evidence for convergence is stronger.Macroeconomic Dynamics 01/2014; 18:1635-1655. · 0.45 Impact Factor
- [Show abstract] [Hide abstract]
ABSTRACT: The neoclassical prediction of long-run convergence is investigated by employing a novel pair-wise econometric procedure. Within this framework, a probabilistic definition of convergence is proposed and forms the basis of the test. We distinguish between the case of strong convergence, where the cointegrating vector is [1, -1] and that of weak convergence, where the latter is relaxed. A pair-wise approach is utilised where all the possible pairs are examined by means of unit roots and cointegration tests. Overall, the evidence is weak with regard to the strong convergence case and stronger for the weak.71st International Atlantic Economic Conference; 03/2011