"Vanishing Cities:" Can Urban Costs Explain Deindustrialization?
Anas's impossibility theorem states that monopolistic competition or economies of scale alone are insufficient to explain growth of cities in response to growing population or decreasing trade costs (under constant urban costs); cities shrink. To enhance realism of assumptions, instead of Anas's normative approach, we study stable equilibria in the presence of another sector. Still, ‘vanishing’ remains robust! Ultimately, we argue that ‘vanishing’ mechanism looks realistic and can have an explanatory power: industries, free of externalities, should locate in small towns. Moreover, the comparative statics shows how such ‘manufacturing’ towns gradually decline, whereas other cities do not.
This book focuses on the questions of how territorial differences in productivity levels and unemployment rates arise in the first place and why territorial differences in labor market performance persist over time. Unemployment divergence and unemployment club convergence have been touched on in a large number of works and have recently also been studied using spatial econometric analysis. In this book we aim to develop the debate to include several important new topics, such as: the reasons why structural changes in some sectors cause slumps in some regions but not in others; the extent to which agglomeration factors explain regional imbalances; the degree of convergence / divergence across EU countries and regions; the role of labor mobility in reducing / increasing regional labor market imbalances; the impact of EU and country-level regional policy in stimulating convergence; and the (unsatisfactory) role of active labor market policy in stimulating labor supply in the weakest economic areas.
We consider the dependence of the growth arte on the elasticity of substitution within the framework of a model with the agents' mutual dependence. This model is interpreted as a network structure. the development is explined as the agents' valus increase in a dynamic system described by functions which display constant elasticity of substitution (CES). We investigate the cases of high and low complementarity of activities. In particular, we receive conditions allowing to identify the cases when the elasticity of substitution has the positive (negative) effect on growth rate under high (low) complementarity of activities. Additionally we analyse the influence of the individual agent's productivities on the growth rate. Finally we give a potential generalisation of the model allowing for different growth rates of the agents.
We study Krugman's core–periphery (CP) model for most general cases of nonidentical regions and fully characterize instant and long-run equilibria. Assuming immobility of labor, we describe the behavior of equilibrium wages/real wages. Moreover, the relative wages/real wages of industrial workers can both increase and decrease with the population with which they are associated. Under the assumption of industrial labor mobility, possible patterns of economic evolution, as responses to trade freeness, are fully described. We show that in the case of noticeable agricultural asymmetry, all mobile labor inevitably accumulates in countries with larger agricultural populations.
We study multiregional extension of Krugman's Core-Periphery model. Comprehensive characterization of agglomeration stability
is obtained in terms of the basic parameters of model. In particular, condition of uniqueness of the stable total agglomerated equilibrium were obtained. The main feature of this paper is that the considered model is asymmetric, i.e., uneven allocation of the immobile (agricultural) population across regions is allowed. Unlike the previously known results for asymmetric CP model, which were based on numerical simulations, this research is quite analytical.
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.