IDEAS home Printed from https://ideas.repec.org/a/sae/inrsre/v45y2022i3p321-351.html
   My bibliography  Save this article

Macroeconomics Meets regional science: How national economic activity is Related to regional economic activity

Author

Listed:
  • Michael Beenstock

Abstract

Macroeconomics and regional science have developed as separate disciplines. However, the fact that the gross domestic product is the sum of gross regional products suggests that the two disciplines are related. The present study considers the implications of regional science and economic geography for macroeconomics. Specifically, a spatial econometric model for Israel is simulated to explore the implications of regional productivity and amenity shocks for gross regional products and the gross domestic product. We show that the effects of productivity shocks on the gross domestic product depend on where they occur and may even be negative. These results question estimates of the effect of productivity shocks in macroeconomic models in terms of spatial aggregation bias. They also provide empirical evidence rejecting the spatial granularity hypothesis regarding the secular relation between macroeconomic economic activity and regional economic activity. The study concludes with speculations about the implications of macroeconomics for regional science.

Suggested Citation

  • Michael Beenstock, 2022. "Macroeconomics Meets regional science: How national economic activity is Related to regional economic activity," International Regional Science Review, , vol. 45(3), pages 321-351, May.
    • Handle: RePEc:sae:inrsre:v:45:y:2022:i:3:p:321-351
    DOI: 10.1177/01600176211034140
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/01600176211034140
    Download Restriction: no
    File URL: https://libkey.io/10.1177/01600176211034140?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:inrsre:v:45:y:2022:i:3:p:321-351. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.