Regional Policy in the Global Economy: Insights from New Economic Geography

Ottaviano, Gianmarco I.P.

doi:10.2139/ssrn.372941

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Regional Policy in the Global Economy: Insights from New Economic Geography

23 Pages Posted: 3 Apr 2003

See all articles by Gianmarco I.P. Ottaviano

Gianmarco I.P. Ottaviano

Bocconi University - Department of Economics and Paolo Baffi Centre on Central Banking and Financial Regulation

Date Written: 2002

Abstract

So far the contribution of New Economic Geography (NEG) has been mainly positive. Normative analysis and policy implications have lagged behind. The reason is the fear of the consequences of taking too literally the neat structure of the models. Under this respect the somewhat incautious aim of this paper is precisely to take NEG models literally and ask what their exact policy implications are. This is viewed as a necessary though preliminary step towards bringing NEG insights to the policy domain.

Keywords: economic integration, increasing returns to scale, market power, pecuniary externalities, regional policy, spatial economics

JEL Classification: F12, L13, R13

Suggested Citation: Suggested Citation

Ottaviano, Gianmarco I.P., Regional Policy in the Global Economy: Insights from New Economic Geography (2002). Available at SSRN: https://ssrn.com/abstract=372941 or http://dx.doi.org/10.2139/ssrn.372941