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Modelling a Regional Economic System: The Case of Lombardy

[journal article]

Baussola, Maurizio

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Abstract We set up a regional econometric model of Lombardy's labour market, in which both labour demand and supply are endogenously determined. The model simulations evaluate the response of the regional labour market, in comparison with the national one, to exogenous shocks depending on shocks in either demand or supply. The intersectoral difference highlights the fact that industry still maintains a crucial role in generating employment multiplier effects, which in turn may reduce unemployment. This evidence has important policy implications, as it suggests that industrial policy may play a crucial role in stimulating the whole regional growth process.
Keywords simulation
Classification Employment Research; Area Development Planning, Regional Research
Free Keywords Regional econometric models; Labour demand; Labour supply
Document language English
Publication Year 2007
Page/Pages p. 19-37
Journal Regional Studies, 41 (2007) 1
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)