Tag: R11

A THEORETICAL ANALYSIS OF COSTS, WASTE TREATMENT, POLLUTION IN THE GANGES, AND LEATHER PRODUCTION BY TANNERIES IN KANPUR, INDIA

Amitrajeet A. BATABYAL

Arthur J. Gosnell Professor of Economics, Departments of Economics and Sustainability, Rochester Institute of Technology, Rochester, NY 14623-5604, USA

aabgsh@rit.edu

Seung Jick YOO

Corresponding Author, Professor, Sookmyung Women’s University, Seoul, Republic of Korea

sjyoo@sookmyung.ac.kr

Abstract

We theoretically analyze the interaction between two representative and real tanneries, denoted by  and  that are located on the same bank of the Ganges River in Kanpur, India. Tannery  is situated upstream from tannery  Both tanneries produce leather and leather production by tannery  also gives rise to chemical waste that adversely affects the cost incurred by tannery  in producing leather. In this setting, we perform four tasks. First, we determine the amount of chemical waste and the leather produced by tanneries  and  in a competitive equilibrium. Second, we explain why this competitive equilibrium is inefficient from a societal standpoint. Third, we ascertain the socially optimal amount of leather produced by the two tanneries. Finally, we illustrate the working of our theoretical model with a specific example in which we use explicit functional forms and numbers.

Keywords: Ganges River, Leather Production, Tannery, Waste Treatment, Water Pollution

JEL classification: R11, R22, R32, Q52, Q53

 pp. 47-53

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A NETWORK-BASED ALGORITHM FOR COMPUTING KEYNESIAN INCOME MULTIPLIERS IN MULTIREGIONAL SYSTEMS

Dimitrios TSIOTAS

Assistant Professor, Department of Regional and Economic Development, School of Applied Economic and Social Sciences, Agricultural University of Athens, Amfissa 33100, Greece

tsiotas@aua.gr

Abstract

In the context of the Keynesian “multiplier effect” approach, regional economic growth and development are conceived as the result of changes in demand stimulating an iterative process of returns of income. Aiming to revisit this established regional economic model, promote multidisciplinary thinking, enjoy better supervision of computations and intuitive interpretation of the results, broaden the applicability of the model, and serve educational purposes in regional economics and development, this paper proposes an algorithm for computing Keynesian income multipliers in multiregional systems. Building on network connectivity, estimations of the regional shares of imports, marginal propensity to consume, and changes in demand, the proposed algorithm provides a framework for standardizing computations of the multiplier effect in multiregional systems. The algorithm is implemented in two theoretical scenarios, contributing to a deeper conceptualization of the computation of the Keynesian income multipliers, and an empirical case of the land interregional commuting network in Greece, providing insights into the developmental dynamics of the labor market (demand for employment) in Greece. Overall, the analysis highlights the symbiotic relationship between the multiplier effect and network structure in regional markets, promotes multidisciplinary thinking in regional science and economics, and provides a code of this network-based algorithm to motivate further research.

Keywords: regional markets, multiplier effect; export-base model; demand for employment; interregional commuting

JEL classification: R11, R15, R23, R41

 pp. 25-46

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EMPLOYMENT IMPACT OF FIRMS’ INNOVATION: WHAT IS THE ROLE OF REGIONAL INSTITUTIONS? EVIDENCE FROM ITALY

Luca VOTA

Ph.D student, Department of Economics and Statistics (DISES) of the University of Salerno, Italy

lvota@unisa.it

Abstract

Employment effect of firms’ innovation is a widely studied topic at both cross-country and national level, while still few contributions deals with the local dimension. Moreover, the role of the institutional factors is still unexplored. In this manuscript, the author estimates the impact of private firms’ R&D spending, institutional quality and their interaction on the employment rate of the Italian regions. To accomplish his task, the author proposes two dynamic panel models and computes them through the Ordinary Least Squares (OLS), Fixed effects (FE) and System Generalized Method of Moments (GMM-SYS) regression tecniques. The obtained results suggest that the employment impact of firms’ innovation is negative, while the ability of the regional institutions to attract, support and cooperate with the innovative companies and the R&D investment programs jointly financed by regional governments and private firms positively affect the employment rate. The author has deduced appropriate policy implications from the provided evidence.

Keywords: Employment impact of firms’ innovation, R&D activity, Regional Economics

JEL classification: O30,R10, R11

 pp. 11-24

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