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
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ABSTRACT: Using detailed disaggregate data on taxes and expenditures for the 48 contiguous U.S. states and a spatial econometric approach, this paper examines the eects of scal policy on state economic growth. Following the Lagrange Multiplier, Wald, and Likeli-hood Ratio tests, the data are found to be characterized by both spatial lag and spatial error processes, leading to the estimation of a spatial Durbin model. Decomposing the results of the Durbin model into direct, indirect (spillover), and total eects, the re-sults for the various expenditure categories indicate that the direct (own-state) eects of expenditures are typically associated with increases in state income growth, while the spillover eects are negative. On the tax side, the results show that, in general, taxes have negative direct eects on state income growth but positive spillover eects on the growth of nearby states. These results are robust to the choice of the spatial weights matrix. (JEL: 1 We would like to thank James LeSage and two other anonymous referees for valuable comments on an earlier draft. All other errors of course remain our own.
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ABSTRACT: In this paper we shed light on the six countries of the Gulf Cooperation Council (GCC) by empirically investigating the presence of convergence across these six countries, over a period (1983-2011). In this period there are significant events that affected these countries, including different episodes of expansions and recessions, fluctuations of oil prices, Gulf Wars (I, II, and III) and the 2008 financial crisis. In line with numerous studies on convergence, we use cross-state regressions to determine the existence or lack of convergence among the GCC countries. The empirical tests give some support to absolute and conditional β-convergence; however we don't find significant evidence of σ-convergence.