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| Bellini, Elena; Ottaviano, Gianmarco I.P.; Pinelli, Dino; Prarolo, Giovanni. |
| We investigate the relationship between diversity and productivity in Europe using an original dataset covering the NUTS 3 regions of 12 countries of the EU15 (Austria, Belgium, Denmark, France, former Western Germany, Ireland, Italy, the Netherlands, Portugal, Spain, Sweden and the United Kingdom). In so doing, we follow the empirical methodology developed by Ottaviano and Peri (2006a) in the case of US cities. The main idea is that, as cultural diversity may affect both production and consumption through positive or negative externalities, the joint estimation of price and income equations is needed to identify the dominant effect. Based on this methodology, we find that diversity is positively correlated with productivity. Moreover, we find evidence... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Cultural Diversity; Economic Performance; Productivity; Europe; Community/Rural/Urban Development; O5; O11; O57; R5; R58. |
| Ano: 2009 |
URL: http://purl.umn.edu/54171 |
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| Ottaviano, Gianmarco I.P.; Prarolo, Giovanni. |
| We study how the city system is affected by the possibility for the members of the same cultural diaspora to interact across different cities. In so doing, we propose a simple two- city model with two mobile cultural groups. A localized externality fosters the productivity of individuals when groups interact in a city. At the same time, such interaction dilutes cultural identities and reduces the consumption of culture-specific goods and services. We show that the two groups segregate in different cities when diaspora members find it hard to communicate at distance whereas they integrate in multicultural cities when communication is easy. The model generates situations in which segregation is an equilibrium but is Pareto dominated by integration. |
| Tipo: Working or Discussion Paper |
Palavras-chave: Cultural Identity; Cosmopolitan City; Productivity; Community/Rural/Urban Development. |
| Ano: 2009 |
URL: http://purl.umn.edu/54291 |
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| Bellettini, Giorgio; Berti Ceroni, Carlotta; Prarolo, Giovanni. |
| Using data on a panel of 56 democratic countries in the period 1975-2004, we find evidence of a negative association between political stability and economic growth which is stronger and empirically more robust in countries with high bureaucratic costs. Motivated by these results, which contrast with previous contributions, we develop a model of growth with quality improvements where political connections with long-term politicians can be exploited by low-quality producers to defend their monopoly position and prevent innovation and entry of high-quality competitors. This requires that the incumbent politician remains in office and that the red-tape cost advantage granted by political connections is large relative to the quality upgrade related to... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Political Persistence; Growth; Innovation; International Development; O43. |
| Ano: 2009 |
URL: http://purl.umn.edu/55828 |
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