Competition in the traditional sector does not matter for the ‘Core–Periphery’ model
We modify Paul Krugman’s (1991, J. Polit. Econ 9(3), 483-99) ‘Core-Periphery’ model by replacing the traditional competitive sector by a monopolistically competitive one. We show that the structure of spatial equilibria remains the same as in the original model. This result continues to hold true under Cournot or Bertrand oligopolistic competition with free entry in the traditional sector. The key factor that explains why the nature of competition in the traditional sector does not matter for the spatial equilibria is constant expenditure shares - due to nested Cobb-Douglas and CES preferences - which imply that trade in the traditional sector is independent from its sectoral characteristics.
Nowadays systemic interactions subjects of marketing space of territory are an essential object of the researches, devoted to the spatiotemporal paradigm application in the context of market relations development in Russia. The main advantage of the scientific research area, which is based on the spatial approach, is its interdisciplinarity and ability to take advantages of systemic approach and synergy effect in the study of issues related to the spatial organization of economy and management systems, including marketing systems. The paper considers the improvement of approaches, forecasting and hybrid modeling methods, taking into account their dynamics, measurability and evaluation of factors influencing on their spatial relationship and effectiveness of market subjects interactions.
The issue of capital city relocation is a topic of debate for more than forty countries around the world. In this first book to discuss the issue, Vadim Rossman offers an in-depth analysis of the subject, highlighting the global trends and the key factors that motivate different countries to consider such projects, analyzing the outcomes and drawing lessons from recent capital city transfers worldwide for governments and policy-makers.
We develop an economic geography model where mobile skilled workers choose to either work in a production sector or to become part of an unproductive elite. The elite sets income tax rates to maximize its own welfare by extracting rents, thereby influencing the spatial structure of the economy and changing the available range of consumption goods. We show that either unskilled labour mobility, or rent-seeking behaviour, or both, are likely to favour the occurence of agglomeration and of urban primacy. In equilibrium, the elite may tax the unskilled workers but does not tax the skilled workers, and there are rural-urban transfers towards the agglomeration. The size of the elite and the magnitude of the tax burden that falls on the unskilled decrease with product differentiation and with the expenditure share for manufacturing goods. All these results are broadly in line with observed patterns of urban primacy and economic development in Sub-Saharan African countries.
The purpose of the paper is the systematization of new economic geography research, on the analysis of the agglomeration process in region. Priority of the paper is given to the influence of theoretical research. Scientific novelty of the work is to specify the theoretical and methodological foundations of the agglomeration process due to analyzing the new economic geography attitude. As agglomeration forces facilitating the concentration of economic activity is defined: internal economies of scale, the level of transportation cost, the migration of the mobile labor in response to the wage gap, the elasticity of labor supply, forward and backward linkages of different content and other factors. As important condition is considered the trade costs level between regions. This study suggests that the formation of theoretical models system explaining the agglomeration process is under intense development.
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.