Tag: D63

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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PATTERNS OF SPATIAL DEVELOPMENT: EVIDENCE FROM RUSSIA

Veronika MASLIKHINA

Ph.D. in Economics, Associate Professor of  Department of Management and Law, Volga State University of Technology, Yoshkar-Ola, Russia

Maslikhina_nika@mail.ru

Abstract

The aim of the paper is to analyze the trends of spatial inequality in Russia in 1994-2015 based on the convergence concepts. Russia faced the problem of inter-regional inequality as well as most countries. The situation is aggravated by the external economic and domestic factors in recent years. The fall in energy prices and Western sanctions had a negative impact on the country’s economic development. Russia is compelled to take into account geopolitical interests in the implementation regional policies in some regions (the Far East, the Crimea, the Kaliningrad region, the republics of the North Caucasus, the Arctic). Many regional budgets have budget deficit, highly debt load. They optimize spending on the social sphere and reduce investments in the real economy. Russia is emerging from the crisis despite the difficult situation. A review of the theoretical positions of the four types of convergence concepts (σ-, β-, γ-, ρ-convergence) was made. The spatial inequality evaluation was carried out on the basis of σ-convergence and absolute β-convergence concepts. The Williamson coefficient, the Hoover index, the Theil index and the Atkinson index were used to analyze spatial inequality based on the σ-concept. Differentiation has increased over the analyzed period, but gap decreased after 2005. The  convergence speed  is 1.79% in Russia. Regions with a low initial level of development have higher growth rates than regions with a higher initial level of development

Keywords: spatial inequality, spatial development, β-convergence, σ-convergence, Russia

JEL classification: D63, O52, R1, R58
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HOW TO DEVELOP AN EQUITABLE DISTRIBUTION OF URBAN GDP BY SMART CITY DEVELOPMENT IN INDIA

Sabyasachi  TRIPATHI

Assistant Professor, Department of Economics Lovely Professional University, Phagwara, Punjab, India

sabya.tripathi@gmail.com

Abstract

The present paper tries to understand the causes behind the emergence of India’s large agglomeration (or giant cities) and how these large agglomerations are linked with economic growth. In addition, the distribution of urban economic growth is measured by the estimation of poverty, inequality and pro-poorness. The paper suggests that the upcoming “Smart cities” in India will emerge as a greater platform for future development of urban India, only if these cities surely ensure smart distribution of the fruits of urban economic growth to the poorer section of urban dwellers.

Keywords: Agglomeration, Economic growth, Poverty, Inequality, Urban India

JEL classification: O18, R11, D63

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