University of Nevada, Reno
Department of Economics
ECON 472/672 – Regional Economics
(Monday & Wednesday 1:00 – 2:15, AB 109)
Fall 2008
Mehmet S. Tosun
Office: 319F
Phone: 775-784-6678
Email: tosun@unr.edu
Homepage: http://www.coba.unr.edu/faculty/tosun
Office Hours: T 1:00 – 3:00 pm
or by appointment.
Course Objectives: This is a course in regional economics and economic geography.
The course combines traditional lecture with class discussions, student presentations and
computer lab exercises. We will cover international topics such as globalization and
global public goods, international trade, international migration, and domestic topics
(mainly from the U.S.) that include industrial location, regional economic development,
local and regional public goods, regional housing market, and state and local public
finance. The course will put a strong emphasis on public policy issues surrounding
regional economics and economic geography.
Specific objectives are to:
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Study regions and problems facing regional economies.
Learn the theories and methods of regional economics and economic geography.
Study the determinants of regional economic growth and local development.
Give students hands-on experience using regional economic data.
Explore public policy responses to regional economic issues.
Required Books:
Hoover, E.M. and F. Giarratani. 1999. An Introduction to Regional Economics. This is a
free web book available from the Regional Research Institute at West Virginia
University: http://www.rri.wvu.edu/WebBook/Giarratani/contents.htm (“H&G”)
Easterly, William. 2001. The Elusive Quest for Growth: Economists’ Adventures and
Misadventures in the Tropics. Cambridge, MA: The MIT Press.
Krugman, Paul. 1992. Geography and Trade. Cambridge, MA: The MIT Press.
“Krugman”
Saxenian, AnnaLee. 2007. The New Argonauts: Regional Advantage in a Global
Economy. Cambridge, MA: Harvard University Press.
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WebCT: There is a class web site available through the University WebCT (Blackboard
Learning System). To access the class page through WebCT, go to
https://webct.unr.edu/webct/ and login using your UNR NetID for the username
and your NetID password for the password. You should be able to see this course
in the course list after you login. I’ll put course related material (Powerpoint
slides, assignments, announcements, interesting articles, etc.) on the web site so
you should check this site regularly.
Reading Assignments: These will be provided to students on the class web site
(WebCT) or as handouts during class.
Background and Reference Texts:
Alesina, Alberto and Enrico Spolaore. 2005. The Size of Nations. Cambridge, MA: The
MIT Press.
Armstrong, Harvey and Jim Taylor. 2000. Regional Economics and Policy, Third
Edition. Malden, MA: Blackwell Publishing.
Barro, Robert and Xavier Sala-i-Martin. 2003. Economic Growth, Second Edition.
Capello, Roberta. 2007. Regional Economics. New York, NY: Routledge.
Krugman, Paul and Maurice Obstfeld. 2007. International Economics: Theory and
Policy, Seventh Edition.
MacKinnon, D. and A. Cumbers. 2007. An Introduction to Economic Geography:
Globalization, Uneven Development and Place. New York, NY: Pearson.
McCann, Philip. 2001. Urban and Regional Economics. Oxford University Press.
Myers, Dowell. 2007. Immigrants and Boomers: Forging a New Social Contract for the
Future of America. New York: Russell Sage Foundation.
Grading: The course grade is based on class participation (5%), two homework
assignments (7.5% each), a policy paper (25%), a midterm exam (25%) and a
take-home final exam (30%). Attendance to all class sessions is mandatory.
Late Assignments and Missed Exams: Students are expected to complete the
assignments by the announced due dates. Failure to do so will result in zero credit
for that assignment. There will be no make-up exams without prior approval
except under extremely unusual circumstances.
Policy Essay: The objective here is to provide students with a basic research
experience on the public policy aspect of a regional economics questions in a
world region, country or a sub-region within a country. More information on the
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policy essay will be provided during the course. The writing of such an essay
normally includes the following four steps:
Brainstorming: Come up with three policy ideas that interest you the most.
You can discuss these with me during my office hours. You will then
choose one of these ideas as a research project for this semester.
Proposal: Write a one-page proposal explaining your policy question. You should
explain why you chose that specific question and why it is of policy
interest.
Outline: Combine your proposal from the previous stage with a detailed outline
that includes a preliminary list of references.
Presentation: Present your essay to the class for comments. The draft should be
distributed in class one week before the presentation.
Special Class Sessions: I plan to bring guest speaker(s) to complement our regular
class sessions.
Class Courtesy: Late arrival should be an exception. When necessary sit on entering
side; do not disturb class. Early departure should be an exception – only in an emergency
or with prior consultation. Early preparation for departure – please don’t. Talking – with
everyone or with no one.
Students with Disability: If you have a disability and will be requiring assistance,
please contact me or the Disability Resource Center (Thompson Building Suite 101) as
soon as possible to arrange for appropriate accommodations.
Academic Integrity: Honesty and personal integrity are key facets of the University of
Nevada community. The issue of academic integrity is taken very seriously at the
University and College of Business Administration. Since the majority of students take
pride in total academic integrity, it is hoped that you, as a student, will take action to
influence the practice of integrity in academic community. I understand that students feel
pressure to perform well in their classes, and I will do everything that I can to ensure that
you have the resources necessary to succeed. However, cheating on exams and course
assignments will not be tolerated, and students who fail to comply with the University’s
honor code (www.unr.edu/stsv/acdispol.html, www.unr.edu/stsv/nsop/dishones.htm) will
be subject to the maximum university penalties. Please visit the university website if you
are unfamiliar with the actions which constitute academic dishonesty.
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Course Outline:
1. Introduction: Regions
H&G, Chapter 1
What is a region?
What is a regional economy?
What is economic geography? What is regional economics?
2. New Regional Economics
H&G, Chapters 2-8
Krugman, Chapters 1 and 2
Comparative advantage
Location theory
Spatial competition
Scale economies and externalities
3. Topic: Regional Growth and Development
Easterly, Parts 1 and 2
H&G, Chapter 11
Krugman, Chapter 3
Saxenian, Introduction, Chapters 1 and 2, (also 4,6 and 7 if time permits)
Neoclassical growth theory
Case studies of growth (world regions)
State and local economic development and growth (the U.S.)
4. Topic: Economic Geography, Regions and Demography
Saxenian, Chapter 8, Appendix B.
World and regional population, and demography
Population aging
Migration (international and intranational)
Political economy of migration
5. Topic: Economic Geography, Regions and Government
Easterly, Chapters 11 and 12
H&G, Chapter 12
Role of government in economy
Regional and global public goods
State and local public finance (the U.S.)
Fiscal Decentralization (the U.S. and international)
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Additional Readings:
(This is a tentative list, some could be skipped and more could be added
depending on time constraints)
1. Introduction: Regions
Krugman, Paul. 1998. “Space: The Final Frontier,” Journal of Economic Perspectives, 12
(2): 161-174.
Alesina, Alberto and Enrico Spolaore. 2003. Chapter 1, Introduction, part of Chapter 3,
Voting on Borders and Chapter 12, The European Union. All from The Size of Nations.
Cambridge, MA: The MIT Press.
2. New Regional Economics
Kim, Sukkoo. 1997. “Regions, Resources and Economic Geography: Sources of U.S.
Regional Comparative Advantage, 1880-1987,” NBER Working Paper No. 6322.
Cambridge, MA: National Bureau of Economic Research.
Krugman, Paul. 1998. “Space: The Final Frontier,” Journal of Economic Perspectives, 12
(2): 161-174.
Krugman, Paul. 1991a. “History and Industry Location: the Case of the U.S.
Manufacturing Belt,” American Economic Review, 81 (2): 80-83.
Krugman, Paul. 1991b. “Increasing Returns and Economic Geography,” Journal of
Political Economy, 99 (3): 483-499.
Martin, Ron and Peter Sunley. 1996. “Paul Krugman’s Geographical Economics and Its
Implications for Regional Development Theory,” Economic Geography, 72 (3): 259-292.
3. Topic: Regional Growth and Development
Cortright, Joseph and Andrew Reamer. 1998. Socioeconomic Data for Understanding
Your Regional Economy: A User’s Guide. Economic Development Administration. U.S.
Department of Commerce. http://www.econdata.net/pdf/uguide.pdf
Glaeser, E. and B.A. Ward. 2006. “The Causes and Consequences of Land Use
Regulation: Evidence from Greater Boston,” NBER Working Paper No. 12601.
Cambridge, MA: National Bureau of Economic Research.
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Glaeser, E. L. and J.E. Kohlhase. 2003.“Cities, Regions and the Decline of Transport
Costs,“ NBER Working Paper No.9886. Cambridge, MA: National Bureau of Economic
Research.
Skidmore, Mark and Mehmet S. Tosun. 2008. “Do New Lottery Games Stimulate Retail
Activity? Evidence from West Virginia Counties,” Journal of Regional Analysis and
Policy, 38 (2): 45-55.
Tosun, Mehmet S., Claudia Williamson and Pavel Yakovlev. 2007. “Population Aging,
Elderly Migration and Education Spending: Intergenerational Conflict Revisited,”
(August). UNR Economics Department WP-07003.
4. Topic: Economic Geography, Regions and Demography
Population Reference Bureau. 2007. “Population: A Lively Introduction,” Population
Bulletin, (March). 62 (1).
Population Reference Bureau. 2008. “World Population Highlights: Key Findings from
PRB’s 2008 World Population Data Sheet,” Population Bulletin, (September). 63 (3).
International Monetary Fund. 2004. World Economic Outlook: The Global Demographic
Transition (September). Chapter 3. Washington, D.C.: IMF.
Martin, Philip and Jonas Widgren. 2002. “International Migration: Facing the
Challenge,” Population Bulletin, 57 (1).
Myers, Dowell. 2007. “Chapter 1. Introduction,” in Immigrants and Boomers: Forging a
New Social Contract for the Future of America. New York: The Russell Sage
Foundation.
Kahanec, Martin and Mehmet S. Tosun. 2007. “Political Economy of Immigration in
Germany: Attitudes and Citizenship Aspirations,” (November). IZA Discussion Paper
No. 3140. http://ftp.iza.org/dp3140.pdf forthcoming in the International Migration Review.
Tosun, Mehmet S. 2006. “Externalities from International Labor Migration: Efficacy of a
Brain Drain Tax in the Euro-Mediterranean Region,” (December). UNR Economics
Department WP-06007.
Tosun, Mehmet S., Arzu Sen, Claudia Williamson and Pavel Yakovlev. (2008). “Retirees
and Economic Development in West Virginia.” In Pavel Gordeev (ed.), Demographic
Economics Research Perspectives. Nova Science Publishers: 1-53.
5. Topic: Economic Geography, Regions and Government
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Tosun, Mehmet S. 2008. “Endogenous Fiscal Policy and Capital Market Transmissions in
the Presence of Demographic Shocks.” Journal of Economic Dynamics and Control 32
(6): 2031-2060.
Tosun, Mehmet S. and Mark Skidmore. 2004. “Interstate Competition and State Lottery
Revenues,” National Tax Journal 57 (2): 163-178.
Tosun, Mehmet S. 2008. Interstate Tax Exporting: A Survey. Case Studies in Public
Policy, PF0801. Department of Economics, University of Nevada, Reno.
Tosun, Mehmet S. and Pavel Yakovlev. 2007. Tax Increment Financing and Local
Economic Development. Case Studies in Public Policy, PF0701. Department of
Economics, University of Nevada, Reno.
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