ARHOLIADAU EXAMINATIONS
Mai / Mehefin 2012 May / June 2012
EC36520 REGIONAL ECONOMICS
Time allowed: TWO hours
Answer TWO questions
Question 1
According to Paul Krugman, New Economic Geography models depend on a few “key
ingredients”. Describe these “key ingredients” as well as the main conclusions of NEG models,
and comment on these models’ policy implications.
Question 2
To what extent is the framework of regional support proposed for the European Union in
2014-2020 an improvement on the framework that currently exists?
Question 3
How should regional policy be evaluated? Illustrate your response with a consideration of the
role of income and employment targets in assessing progress in regional development.
Question 4
Outline the basic set-up of a Monocentric City model. What are the conclusions and implications
it generates? How has the model been tested empirically?
Question 5
Explain the neoclassical and endogenous growth models. Discuss their capacity to explain
regional growth and regional disparity.
Question 6
Describe the structure of a simple Input-Output model. Outline an example of impact analysis
using an input-output model of a region or country. What are the effects/impacts you expect in
your chosen example? Does Input-Output impact analysis capture all of them? Explain.
Question 7
Describe various externalities associated with agglomeration. Explain the rationale for the
argument that innovation is more likely to occur in cities. Does the empirical evidence support
this argument?
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