Economic Geography and Public Policy

By Richard E. Baldwin, R. Forslid, Philippe Martin, Gianmarco I. P. Ottaviano, Frédéric Robert-Nicoud. 2011

1,310 citations recorded by the source corpus.

Economic Geography and Public Policy fills the gap by illustrating many new policy insights economic geography models can offer to the realm of theoretical policy analysis. Focusing primarily on trade policy, tax policy, and regional policy, Richard Baldwin and coauthors show how these models can be used to make sense of real-world situations. The book not only provides much fresh analysis but also synthesizes insights from the existing literature.The authors begin by presenting and analyzing the widest range of new economic geography models to date. From there they proceed to examine previously unaddressed welfare and policy issues including, in separate sections, trade policy (unilateral, reciprocal, and preferential), tax policy (agglomeration with taxes and public goods, tax competition and agglomeration), and regional policy (infrastructure policies and the political economy of regional subsidies). A well-organized, engaging narrative that progresses smoothly from fundamentals to more complex material, Economic Geography and Public Policy is essential reading for graduate students, researchers, and policymakers seeking new approaches to spatial policy issues.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/27a6c376f50a1c6310605c85bdce6db484e93f88

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Citations in the corpus

A “New Trade” Theory of GATT/WTO Negotiations (2011, neutral): “Y = (1 )L (10) 18 In particular, the manufacturing sector is always active in both countries for all possible ( ; ) if”
Socio-Cultural Variables and Economic Success: Evidence from Italian Provinces 1951-1991 (2004, background): “On the other hand, however, we should expect forces such as technological diffusion to promote the development and eventual convergence of backward regions (see for instance Chapter 7 of Baldwin et al., 2003).”
Do Agglomeration Economies Reduce the Sensitivity of Firm Location to Tax Differentials (2012, neutral): “As a preliminary exercise, Table 2 reports estimates of specification (2) without any controls (xij) except for the scaling variable area.”
Subsidies to Poor Regions and Inequalities: Some Unpleasant Arithmetic (2006, methodology): “This is the case of Baldwin et al. (2003) who show that the impact of subsidies or taxes is subject to threshold effects, discontinuities and hysteresis which come directly from the “catastrophic” nature of the new economic geography models started with Krugman (1991). They also revisit the analysis”
Regional economics: A new economic geography perspective (2007, background): “Furthermore, if we do not want the analysis to be confined to trade theory, we must also account explicitly for the mobility of agents – firms and/or consumers – as well as for the existence of transport costs, which are the two main ingredients of location theory.”
Can Capital Income Taxes Survive? And Should They? (2007, neutral): “Agglomeration, trade costs and the future of capital income taxes The modern theory of economic geography [e.g. Baldwin et al. (2003), Baldwin and Krugman (2002) and Kind, Knarvik and Schjelderep (2000)] highlights how location-specific rents are created and destroyed.”
Agglomeration and the adjustment of the spatial economy (2005, background): “In turn, these theoretical developments – the “new economic geography” – have triggered a wave of empirical research and also inspired more policy-oriented work (Baldwin et al. 2003). Despite this surge in interest, several crucial issues still hinder the development of spatial economics and its app”
Spatially unbalanced growth in the British economy (2013, background): “Interestingly, these models also suggest that measures (including infrastructural investments) aimed at reducing transport costs between core and peripheral regions may actually end up fostering more growth in the former than in the latter (see Baldwin et al, 2003).”
Policies for Local Development: An Evaluation of Italy's 'Patti Territoriali' (2012, neutral): “On the other hand, according to a New Economic Geography mechanism (Baldwin et al., 2003), more developed areas might grow faster due to the productivity effects of agglomeration economies.”
Spatial Period-Doubling Agglomeration of a Core-Periphery Model with a System of Cities (2009, methodology): “Furthermore, in recent years, the framework has been applied to various policy issues in areas such as trade policy, taxation, and macroeconomic growth analysis (Baldwin et al., 2003 [1]).”
Rebalancing the Spatial Economy: The Challenge for Regional Theory (2015, background): “…a logical market outcome under the presence of increasing returns and mobility of factors, but also one that is deemed to increase national overall growth, at least as long as congestion costs and other negative externalities do not become dominant (see BALDWIN et al., 2003; COOMBES et al., 2012).”
Heterogeneous firms, agglomeration and economic geography: spatial selection and sorting (2006, background): “This result is Selection and Sorting 17 quite intuitive since we know that both the agglomeration and dispersion forces weaken in the FC model as trade gets freer (Baldwin et al 2003, chapter 3), but the subsidy incentive is unaffected by changes in openness.”
Adding geography to the new economic geography : bridging the gap between theory and empirics (2010, methodology): “Following Fujita et al. (1999), we assume that workers move according to the following simple dynamics, which can be reconciled with for example evolutionary game theory [Weibull, 1995, see also the discussion in Baldwin et al. (2003)]19: d i= i ¼ cð!i !”