Skip Navigation



Journal of Economic Geography Advance Access published online on September 21, 2009
Journal of Economic Geography, doi:10.1093/jeg/lbp047
This Article
Right arrow Full Text
Right arrow Full Text (PDF)
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Similar articles in this journal
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by Basile, R.
Right arrow Articles by Girardi, A.
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

© The Author (2009). Published by Oxford University Press. All rights reserved. For Permissions, please email: journals.permissions@oxfordjournals.org

Specialization and risk sharing in European regions

Roberto Basile* and Alessandro Girardi**

*Department of Macroeconomics, Institute for Studies and Economic Analyses, Piazza dell'Indeipendenza 4, 00185 Rome, Italy and CERTeT Bocconi University. email: <r.basile{at}isae.it>
**Department of Macroeconomics, Institute for Studies and Economic Analyses, Piazza dell'Indeipendenza 4, 00185 Rome, Italy. email: <a.girardi{at}isae.it>

JEL classifications: E21, F15, O40, C14, C31

Economic theory emphasizes that risk sharing makes it possible to exploit benefits from comparative advantages and economies of scale. Unlike previous studies we test (and reject) the assumption of parameter homogeneity across geographical units in measuring risk sharing. The estimated regional-specific index of risk sharing is then used as a covariate in a model of industrial specialization for the EU15 regions. By estimating a number of nonparametric additive spatial autocovariance models, allowing for nonlinearities and spatial dependence, we show that industrial specialization is positively affected by risk-sharing measures even controlling for other relevant regressors.

Keywords: Risk sharing, specialization, European regions, non-parametric methods, spatial econometrics
Date submitted: 29 December 2008     Date accepted: 13 August 2009


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?




Disclaimer: Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.