Tag: R11

A STOCHASTIC MODEL OF COMPETITION BETWEEN TWO CITIES FOR MEMBERS OF THE CREATIVE CLASS

Amitrajeet A. BATABYAL

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

aabgsh@rit.edu

Seung Jick YOO

Graduate School of International Service, Sookmyung Women’s University, Seoul, Republic of Korea

sjyoo@sookmyung.ac.kr

*Corresponding Author

Abstract

Batabyal and Yoo (2019) have recently obtained a significant result in their analysis of the use of utilitarian and Rawlsian policies by two cities to attract the creative class. They show that if one city switches to a Rawlsian or more egalitarian objective when the other city remains utilitarian, the aggregate economy of two cities becomes less egalitarian. We show that this result depends fundamentally on the assumption that the creative class population can be described by a triangular probability distribution. If this population is modeled instead with an inverted triangular probability distribution then the above result is reversed in the sense that the welfare of the worst-off member of the creative class is always enhanced when one city switches to a Rawlsian or more egalitarian objective, irrespective of the objective of the other city.

Keywords: City, Competition, Creative Class, Rawlsian, Utilitarian

JEL classification: R11, D63
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ON THE ISSUE OF EFFECTIVE ECONOMIC POLICY IN REGION UNDER LEASING

Daniya A. PLESHANOVA

Postgraduate student of department of economic theory. Volga State University of Technology,  Russia, Yoshkar-Ola

fup@volgatech.net

Tatiana V. YALYALIEVA

Candidate of Economic Sciences, e Professor of the Department of Management and Law, Volga State University of Technology, Russia, Yoshkar-Ola

yal05@mail.ru

Abstract

In the case of Mari El Republic the issues of creating an effective leasing policy in the region are revealed.  The economic indicators are identified and can indirectly determine the effectiveness of leasing and its impact on regional economic development.  Under certain indicators in financial statements of AO “Rosagroleasing” lessees it was conducted an analysis of companies, successfully acquiring property in leasing and the enterprises without effective dispose of leasing property.  For the identification of shortcomings, it was proposed to conduct a series of the activities that could improve leasing business in region and the influence on growth of the economic potential in Mari El Republic.

Keywords: Leasing, investment, regional development, investment policy and leasing in the agriculture

JEL classification: R11, O1, O2, H83
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THE IMPACT OF THE ECONOMIC CRISIS IN THE PROCESS OF CONVERGENCE OF THE GREEK REGIONS

Panagiotis KOUDOUMAKIS

Dr. Civil Engineer, Democritus University of Thrace (DUTh), Department of Civil Engineering, Greece

pkoudoum@civil.duth.gr

George BOTZORIS

Assistant Professor, Democritus University of Thrace (DUTh), Department of Civil Engineering, Greece

gbotzori@civil.duth.gr

Angelos PROTOPAPAS

Professor, Democritus University of Thrace (DUTh), Department of Civil Engineering, Greece

aproto@civil.duth.gr

Vassilios PROFILLIDIS

Professor, Democritus University of Thrace (DUTh), Department of Civil Engineering, Greece

vprofill@civil.duth.gr

Abstract

In this paper, the impact of the economic crisis on the convergence of the Greek region’s economy to the European average is examined. In particular, it is being considered the condition of absolute β-convergence using the econometric model of Barro and Sala-i-Martin. The dependent variable was represented by the average value of Gross Domestic Product (GDP) per capita in Purchasing Power Standards (PPS). Additionally the hypothesis of the σ-convergence of the regions of the EU and Greece is being considered, based on the coefficient of variation weighted by population. The results of both absolute β-convergence and σ-convergence suggest a declining trend of convergence and persistence of inequalities for the regions of the EU, following the outbreak of 2008 economic crisis. Regarding the regions of Greece, the results indicate, on the one hand, their deviation from the average income of the regions of the EU and, on the other, a significant increase in the regional disparities in the period 2000-2016.

Keywords: Convergence, Disparities, Economic Crisis, Regions

JEL classification: O41, R11, R12
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