Using a New Economic Geography (NEG) model, this study estimates the relationship between regional per capita income and the market accessibility of regions. This accessibility cannot be observed directly, so it has to be constructed. We follow a two-step-procedure as suggested by Redding and Venables (2004) and use results of a gravity-type model to infer \real market potential". To this end, we make use of a novel dataset of bi-regional trade ows between (and within) 254 European NUTS-2 regions (for 26 European countries excluding Bulgaria and Romania) for the year 2010. In a second step we test the hypothesis that access to domestic as well as to large foreign markets increases factor incomes. We find evidence that supports this hypothesis on a regional level. This also holds when we control for other potential income determinants. In order for the estimates to be unbiased, we additionally take the spatial structure of the data into account. Our findings indicate that, although the specification derived from theory should be able to capture some spatial spillovers, additionally controlling for spatial autocorrelation in the residuals is necessary to fit the European data. (authors' abstract) / Series: Department of Economics Working Paper Series

O objetivo dessa dissertação foi retratar as principais evidências empíricas existentes até então, focando na equação de salários, uma das ferramentas mais utilizadas da Nova Geografia Econômica, segundo Hanson (1998).O estudo apresentou resultados consistentes sobre a importância da teoria para a explicação do diferencial de salário, focando no acesso ao mercado e, por conseguinte, no custo de transporte e retornos crescentes de escala como contundentes para se entender o padrão de aglomeração de determinada região. O estudo pretendeu também contribuir com o leque de evidências acerca da Nova Geografia Econômica como explicação para o padrão de aglomeração brasileiro. Para isso foi utilizado uma especificação concernente à teoria, buscando focar na acessibilidade do mercado por meio do teste dos três parâmetros estruturais da Nova Geografia Econômica e por fim, a última testou a aplicabilidade da equação de Fujita at al (2002) ao modelo brasileiro. Por meio da utilização de dados da PNAD para todos os Estados brasileiros, chega-se a conclusão de que o mercado potencial não deve ser desconsiderado pelos formuladores de políticas publicas ao se pensar na desigualdade brasileira de salários e, por conseguinte no padrão de aglomeração da atividade econômica que se verifica no país. / The goal of this dissertation was portraying the main empirical evidence available so far, focusing on the equation of wages, one of the most used tools of the New Economic Geography, according to Hanson (1998). The study showed consistent results on the importance of theory for the explanation of 'salary differential, focusing on market access and therefore the cost of transport and increasing returns to scale as remarkable for understanding the pattern of settlement in a region. The study also wanted to contribute to the range of evidence about the New Economic Geography as explanation for the pattern of agglomeration Brazil. For this we used a specification regarding theory, focus on seeking market access through the test of the three structural parameters of the New Economic Geography and finally, the last tested the applicability of the equation of Fujita at al (2002) to the Brazilian model. Through the use of data from PNAD for all Brazilian states, we reach the conclusion that the market potential should not be disregarded by policymakers when they are thinking of Brazilian inequality of wages and therefore in the pattern of agglomeration of economic activity that takes place in the country.

O objetivo dessa dissertação foi retratar as principais evidências empíricas existentes até então, focando na equação de salários, uma das ferramentas mais utilizadas da Nova Geografia Econômica, segundo Hanson (1998).O estudo apresentou resultados consistentes sobre a importância da teoria para a explicação do diferencial de salário, focando no acesso ao mercado e, por conseguinte, no custo de transporte e retornos crescentes de escala como contundentes para se entender o padrão de aglomeração de determinada região. O estudo pretendeu também contribuir com o leque de evidências acerca da Nova Geografia Econômica como explicação para o padrão de aglomeração brasileiro. Para isso foi utilizado uma especificação concernente à teoria, buscando focar na acessibilidade do mercado por meio do teste dos três parâmetros estruturais da Nova Geografia Econômica e por fim, a última testou a aplicabilidade da equação de Fujita at al (2002) ao modelo brasileiro. Por meio da utilização de dados da PNAD para todos os Estados brasileiros, chega-se a conclusão de que o mercado potencial não deve ser desconsiderado pelos formuladores de políticas publicas ao se pensar na desigualdade brasileira de salários e, por conseguinte no padrão de aglomeração da atividade econômica que se verifica no país. / The goal of this dissertation was portraying the main empirical evidence available so far, focusing on the equation of wages, one of the most used tools of the New Economic Geography, according to Hanson (1998). The study showed consistent results on the importance of theory for the explanation of 'salary differential, focusing on market access and therefore the cost of transport and increasing returns to scale as remarkable for understanding the pattern of settlement in a region. The study also wanted to contribute to the range of evidence about the New Economic Geography as explanation for the pattern of agglomeration Brazil. For this we used a specification regarding theory, focus on seeking market access through the test of the three structural parameters of the New Economic Geography and finally, the last tested the applicability of the equation of Fujita at al (2002) to the Brazilian model. Through the use of data from PNAD for all Brazilian states, we reach the conclusion that the market potential should not be disregarded by policymakers when they are thinking of Brazilian inequality of wages and therefore in the pattern of agglomeration of economic activity that takes place in the country.

O objetivo dessa dissertação foi retratar as principais evidências empíricas existentes até então, focando na equação de salários, uma das ferramentas mais utilizadas da Nova Geografia Econômica, segundo Hanson (1998).O estudo apresentou resultados consistentes sobre a importância da teoria para a explicação do diferencial de salário, focando no acesso ao mercado e, por conseguinte, no custo de transporte e retornos crescentes de escala como contundentes para se entender o padrão de aglomeração de determinada região. O estudo pretendeu também contribuir com o leque de evidências acerca da Nova Geografia Econômica como explicação para o padrão de aglomeração brasileiro. Para isso foi utilizado uma especificação concernente à teoria, buscando focar na acessibilidade do mercado por meio do teste dos três parâmetros estruturais da Nova Geografia Econômica e por fim, a última testou a aplicabilidade da equação de Fujita at al (2002) ao modelo brasileiro. Por meio da utilização de dados da PNAD para todos os Estados brasileiros, chega-se a conclusão de que o mercado potencial não deve ser desconsiderado pelos formuladores de políticas publicas ao se pensar na desigualdade brasileira de salários e, por conseguinte no padrão de aglomeração da atividade econômica que se verifica no país. / The goal of this dissertation was portraying the main empirical evidence available so far, focusing on the equation of wages, one of the most used tools of the New Economic Geography, according to Hanson (1998). The study showed consistent results on the importance of theory for the explanation of 'salary differential, focusing on market access and therefore the cost of transport and increasing returns to scale as remarkable for understanding the pattern of settlement in a region. The study also wanted to contribute to the range of evidence about the New Economic Geography as explanation for the pattern of agglomeration Brazil. For this we used a specification regarding theory, focus on seeking market access through the test of the three structural parameters of the New Economic Geography and finally, the last tested the applicability of the equation of Fujita at al (2002) to the Brazilian model. Through the use of data from PNAD for all Brazilian states, we reach the conclusion that the market potential should not be disregarded by policymakers when they are thinking of Brazilian inequality of wages and therefore in the pattern of agglomeration of economic activity that takes place in the country.

This paper provides a non-technical overview of NEG models dealing with policy issues. Considered policy measures include alternative categories of public expenditure, international tax competition, unilateral actions of protection/liberalisation, and trade agreements. The implications of public intervention in two-region NEG models are discussed by unfolding the impact of policy measures on agglomeration/dispersion forces. Results are described in contrast with those obtained in standard non-NEG theoretical models. The high degree of abstraction limits the applicability of NEG models to real world policy issues. We discuss in some detail two extensions of NEG models to reduce this applicability gap: the cases of multi-regional frameworks and firm heterogeneity.

This article investigates the effects of introducing demography into the New Economic Geography. We generalize the constructed capital approach, which relies on infinite individual planning horizons, by introducing mortality. The resulting overlapping generation framework with heterogeneous individuals allows us to study the effects of aging on agglomeration processes by analytically identifying the level of trade costs that triggers catastrophic agglomeration. Interestingly, this threshold value is rather sensitive to changes in mortality. In particular, the introduction of a positive mortality rate makes the symmetric equilibrium more stable and therefore counteracts agglomeration tendencies. In sharp contrast to other New Economic Geography approaches, this implies that deeper integration is not necessarily associated with higher interregional inequality. / Series: Department of Economics Working Paper Series

This paper provides a non-technical overview of NEG models dealing with policy issues. Considered policy measures include alternative categories of public expenditure, international tax competition, unilateral actions of protection/liberalisation, and trade agreements. The implications of public intervention in two-region NEG models are discussed by unfolding the impact of policy measures on agglomeration/dispersion forces. Results are described in contrast with those obtained in standard non-NEG theoretical models. The high degree of abstraction limits the applicability of NEG models to real world policy issues. We discuss in some detail two extensions of NEG models to reduce this applicability gap: the cases of multi-regional frameworks and firm heterogeneity.

Cette thèse examine le phénomène de la compétitivité territoriale selon la Nouvelle économie géographique (NEG). Tandis que nous pensons que la compétitivité régionale est la capacité des territoires à attirer les facteurs de production mobiles, ce sujet revêt une importance accrue dans une économie mondialisée. La thèse est structurée de la manière suivante : le premier chapitre tente de positionner le débat dans le cadre de la NEG. Après avoir opté pour une vision théorique du problème, dans le chapitre 2 nous orienterons le débat vers la création d’une nouvelle définition, qui servira de fondement à la partie empirique. Le troisième chapitre propose un indice composite pour les régions européennes. Il discute des choix territoriaux, temporels, méthodologiques et conceptuels, tout en présentant et interprétant les résultats à la lumière de la NEG. Les résultats de ce chapitre posent surtout la question du lien entre la compétitivité des régions et la croissance des pays, et c’est donc pour cela que nous présenterons de façon détaillée le rôle des politiques de gestion de ce processus. / This thesis examins the phenomenon of the territorial competitiveness by using optics of the New Economic Geography (NEG). While we think that the regional competitiveness is the capacity of a local economy to attract mobile factors of production, this subject has an increasing importance within a globalized economy. The thesis is structured as follows. The first chapter represents an attempt to position the debate within the framework of NEG. After having chosen a theoretical perspective, in the second chapter we narrow the debate towards the creation of a new definition used as platform for the empirical part. Against this backdrop, the third chapter provides a novel index of regional competitiveness for European regions, a discussion on territorial, temporal and methodological choices, while presenting and interpreting the results in the light of NEG. The results of this chapter question especially the links between territorial competitiveness and national growth rate, and which is why we are discussing in a more detailed fashion the role of policies in managing these processes.

Les échecs successifs des négociations internationales sur le réchauffement climatique, dont l'objectif est d'établir un cadre global de lutte contre le réchauffement climatique, ont contribué à l'émergence d'initiatives locales de lutte contre les émissions de gaz à effet de serre, notamment à l'échelle urbaine. Les initiatives locales sont porteuses d'espoir, parce que les pouvoirs locaux ont la charge de décisions influençant les émissions : les décisions relatives à l'aménagement de leurs territoires, au développement des transports en commun, à la construction de logements. Cependant, les politiques locales à mettre en place pour réduire efficacement les émissions de gaz à effet de serre au niveau mondial ne sont pas, aujourd'hui, bien définies. Cette thèse présente un modèle qui permet de comprendre le rôle que peuvent jouer les politiques locales dans la lutte contre le réchauffement climatique, et leurs interactions avec une échelle plus globale. La plupart des modèles existants utilisés pour évaluer le coût des politiques d'atténuation du changement climatique ne tiennent compte que des déterminants technologiques et négligent le rôle des dynamiques urbaines. Le modèle développé représente les liens entre la consommation d'énergie des ménages, les émissions de gaz à effet de serre et l'organisation spatiale des villes / The failure of the international community, pointed out in the successive annual Conferences of the Parties, to implement global climate policies has fostered supports for local initiatives, in particular at the urban levels. Local action is believed to help reduce greenhouse gas emissions as local communities are at the cutting edge of the climate change challenge because they have responsibility for a wide range of decisions that affect emissions: land use planning, urban transport and housing policies. However, how to use efficiently local policies to reduce gas emissions at a global scale remains unclear. In this thesis, we developed some tools that can give insights on the role of local policies in climate change mitigation and their interaction with the global scale. The overwhelming majority of energy-economy-environment models conventionally used to assess mitigation costs of climate change focus essentially on the technological determinants of energy trends but do not capture explicitly the role of urban dynamics. We propose a step forward to the representation of the interplay between energy consumption, carbon emissions and the spatial organization of cities

Les choix de localisation des ménages conduisent à divers problèmes tels que la ségrégation entre ménages riches et ménages pauvres et à des inégalités spatiales entre les régions. Cette thèse étudie ces phénomènes à l'aide de modèles théoriques et d'expériences menées en laboratoire. Pour commencer, une expérience dont l’objectif est d’analyser les conditions sous lesquelles est réalisée pour voir sous quelles conditions différentes structures urbaines peuvent être obtenues. En effet, aux Etats-Unis, les riches sont majoritairement en banlieue et les pauvres en centre-ville alors que l'opposé est observé dans les grandes villes européennes. Il apparait que le ratio « coût d'opportunité du temps/la demande de logements » est un facteur essentiel pour expliquer ces types de structure. Ensuite, une étude théorique est menée pour obtenir des structures de villes plus complexes, où les riches et les pauvres sont beaucoup moins en situation de ségrégation. La théorie montre que les politiques publiques peuvent donner des résultats très différents. Puis, nous étudions la répartition du capital humain entre les régions. Dans les pays où elle est inégale, on observe une croissance trop faible dans les régions pauvres et une augmentation des inégalités spatiales. Pour combattre ces inégalités, il est montré qu'il est possible de faire revenir les travailleurs qualifiés dans les régions pauvres car il existe des complémentarités avec les travailleurs non qualifiés. Des études ont montré que ces derniers augmentent la productivité des travailleurs qualifiés. Enfin, une étude expérimentale est faite pour étudier les choix de consommation. Nous testons l’hypothèse de l'existence d'un consommateur représentatif souvent faite en Nouvelle Economie Géographique. Il en ressort que les modèles existant ne prennent pas assez en compte l’hétérogénéité des goûts des consommateurs. / Several problems such as spatial inequalities between regions and spatial segregation within cities arise from households’ location choices. The purpose of this dissertation is to address these problems with theoretical and experimental studies. To begin, a laboratory experiment has been conducted in order to understand under which conditions different urban structures emerge. Indeed, in the U.S., spatial segregation occurs and the richer households are located in the suburbs while the poor ones are located downtown. The opposite pattern is observed in several major European cities. It appears in our study that the ratio ‘transportation costs/demand for land’ is a key factor for explaining these two types of segregation. Then, a theoretical model is used to reproduce several types of urban structures, where poor and rich households are located in the same neighborhoods. The theory predicts that policy interventions can lead to very different outcome. Then, the spatial distribution of human capital among regions is studied. Because skilled workers are mainly attracted toward wealthier regions, economic growth is lower in the poorer regions and spatial inequalities increase. The theoretical model predicts that it is possible to bring back the skilled workers in poor regions because there exists complementarities between skilled and unskilled workers. Indeed, the presence of unskilled workers enhances skilled workers' productivity, making their return more profitable. To finish, a laboratory experiment has been conducted to study consumers' behavior. Because in New Economic Geography models, the existence of a representative consumer is often assumed. The relevance of this hypothesis is tested. It appears that the existing models do not take enough into account heterogeneity in tastes among the consumers.