Posts Tagged ‘Institutions’

AGGLOMERATION ECONOMICS AND ASYMMETRIC INFORMATION: ROLE OF INSTITUTIONS

Vinko MUŠTRA[1]

Associate professor, Faculty of Economics, Business and Tourism, University of Split

vmustra@efst.hr

Hrvoje KALINIĆ

Assistant professor, Faculty of Science, University of Split

hrvoje.kalinic@pmfst.hr

Abstract

This paper constructs the model that links agglomeration economics with information asymmetries. It extends the literature by launching the concept that explains influence of the asymmetric information on agglomeration economies by emphasizing the role of the transaction cost under institutional framework. Consequently, the predictions of the model suggesting that impact of agglomeration economies depends on stages of development highlight the importance of different approach to the agglomeration economies phenomena in developing  and developed countries.

Keywords: agglomeration economics, asymmetric information, transaction costs, institutions

JEL classification: R1, O4, D8

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[1] Corresponding author

EFFECTS OF FISCAL CONSOLIDATION ON REGIONAL ECONOMICS RESILIENCE: INSTITUTIONAL DESIGN METTERS?

Christophe FEDER

Professor, University of Aosta Valley, Str. Cappuccini, 2, Aosta, Italy

c.feder1@univda.it

Vinko MUŠTRA

Assistant professor, Faculty of economics, business and tourism, University of Split, Cvite Fiskovića 5, Split, Croatia

vmustra@efst.hr

Abstract

After the Great Recession, in the European Union (EU) emerges an heterogenous level of both national fiscal consolidation and regional economics resilience. The paper uses the EUROSTAT database of EU-27 at NUTS 2 level over the period 2000-2009 to test how fiscal consolidation affects the regional economics resilience. We find that the fiscal consolidation and regional economic resilience are negatively correlated. Moreover, we show that the negative effect of taxation is higher than the positive effect of public spending.

Keywords: Regional economic resilience, Fiscal consolidation, Institutions, European Union

JEL classification: R12, E62, H23, H72
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