Abstract:
This paper evaluates 'new economic geography' theory by comparing it with a competing non-nested model derived from urban economics. Using bootstrap inference and the J-test, the paper shows that while NEG theory is supported by the data, it needs to be modified to achieve this, and it is not the only, or even the best or simplest, explanation of regional wage variations across the EU.
Keywords:'new economic geography'; urban economics; bootstrap; J test (search for similar items in EconPapers) JEL-codes:R (search for similar items in EconPapers) New Economics Papers: this item is included in nep-geo and nep-ure Date: 2005-04-11 Note: Type of Document - pdf; pages: 37. this is a short version of a longer paper presented at the Kiel Institute for World Economics conference on spatial econometrics. View citations in EconPapers