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Simultaneous-equations analysis in regional science and economic geography

PublicationBook chapter
Andreas Stephan, Företagandets villkor

Abstract

Extract: The specification and estimation of simultaneous-equations models (henceforth SEMs) has a long tradition in economics. Although SEMs were originally established in the field of macroeconomics, various applications can also be found in applied regional science and economic geography. Among many others, one prominent example is the Carlino and Mills (1987) study on the simultaneous evolution of regional population and employment densities, which gave rise to the famous ‘chicken-or-egg’ quest for causality within the framework of regional adjustment models. And indeed, specifying and estimating an SEM has much to do with getting causal relationships right. This is why applied economists and econometricians generally valorize the SEM approach for its capacity to formulate an explicit structural model with more than just one endogenous variable and the statistical power to control for correlated residuals among the individual equations of the system. While the first argument is of crucial importance for the consistency of the estimated model parameters, the second point is mainly concerned with the notion of estimation efficiency.

Mitze, T. & Stephan, A. (2015). “Simultaneous-equations analysis in regional science and economic geography“. In C. Karlsson, M. Andersson, & T. Norman (Eds.), Handbook of Research Methods and Applications in Economic Geography (pp. 158-171). Cheltenham, UK: Edward Elgar Publishing.

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Simultaneous-equations analysis in regional science and economic geography
BokkapitelPublication
Mitze, T. & Stephan, A.
Publication year

2015

Abstract

Extract: The specification and estimation of simultaneous-equations models (henceforth SEMs) has a long tradition in economics. Although SEMs were originally established in the field of macroeconomics, various applications can also be found in applied regional science and economic geography. Among many others, one prominent example is the Carlino and Mills (1987) study on the simultaneous evolution of regional population and employment densities, which gave rise to the famous ‘chicken-or-egg’ quest for causality within the framework of regional adjustment models. And indeed, specifying and estimating an SEM has much to do with getting causal relationships right. This is why applied economists and econometricians generally valorize the SEM approach for its capacity to formulate an explicit structural model with more than just one endogenous variable and the statistical power to control for correlated residuals among the individual equations of the system. While the first argument is of crucial importance for the consistency of the estimated model parameters, the second point is mainly concerned with the notion of estimation efficiency.

Reaping Value from Digitalization in Swedish Manufacturing Firms
Book chapterPublication
Mähring, M., Wennberg, K., & Demir, R.
Publication year

2018

Abstract

Excerpt: In this chapter, we take a fresh look at what is actually happening in the area of digitalization, with a particular focus on the Swedish manufacturing sector. […] We particularly focus upon patterns in the ways in which they seek to develop innovations and explore new business models from their activities related to product sensors and wireless data, cloud-based data warehouses, computer-aided manufacturing and 3D printing, big data technologies, and application programming interfaces (APIs). Our findings suggest that while many Swedish industrial firms have developed a strong edge through a combination of high-quality products, international presence, and decentralization, the latter in particular poses challenges when it comes to digital transformation. Digitalization may necessitate large investments across business segments, standardisation, and knowledge sharing regarding both customers and digital solutions in order to create new customer offerings. Points for reflection are then discussed, along with recommendations for scholars that are seeking to develop new and relevant knowledge by studying the transformation of Swedish industry, as well as for managers seeking to benchmark their digitalization activities to others.

Pre- and post-entrepreneurship Labor Mobility of Entrepreneurs and Employees in Entrepreneurial Firms
Book chapterPublication
Nyström, K.
Publication year

2018

Abstract

This chapter provides a literature review of existing research and identifies research gaps related to the labor mobility of both entrepreneurs and employees in entrepreneurial firms. Regarding entrepreneurs, there is a lot of research on their individual characteristics, including prior experience, and how the individual characteristics and experiences influence the performance of the firm. However, less is known on the post-entrepreneurship employment activity of entrepreneurs and how their prior experiences influence their future labor market careers.
Regarding the labor mobility of employees in entrepreneurial firms, there is an emerging stream of literature on the individual characteristics of these employees. However, many issues related to their prior experience remain unexplored. Furthermore, labor mobility after working with an entrepreneurial firm is relatively less explored at this point. Accordingly, this chapter intends to summarize current research and outline avenues for future research regarding a) pre-entrepreneurship labor mobility of entrepreneurs and b) post-entrepreneurship labor mobility of entrepreneurs, as well as c) pre-entrepreneurship labor mobility of employees in entrepreneurial firms and d) post-entrepreneurship labor mobility of employees in entrepreneurial firms. In addition, the role of institutions and, in particular, employment protection laws (EPLs) for labor mobility of entrepreneurs and employees in entrepreneurial firms are discussed.

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