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Testing nonlinear new economic geography models

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Professor Mutl will give a talk based on his paper of the same name (co-authored by Eckhardt Bode). This paper proposes a new approach for testing nonlinear New Economic Geography (NEG) models. The approach maps all equilibrium conditions of an NEG model into an estimable spatial autoregressive model of order one – SAR model – in regional wages, which reflects the sensitivity, predicted by the NEG model, of each region’s wage rate to a wage shock elsewhere. The approach also facilitates testing selected features of the NEG model separately. An illustration shows that the Krugman model does not fit the data for US counties 1990-2005 because it does not predict the migration patterns triggered by wage shocks correctly.


Professor Jan Mutl is the Managing Director of the EBS Real Estate Management Institute in the EBS Universität für Wirtschaft & Recht.

Primary Fields of Interests

Empirical Research in Regional and Real Estate Economics

Quantitative Methods – Panel Data and Spatial Econometrics

Academic Experience

Since 01/2015 Managing Director, Real Estate Management Institute, EBS University

Since 01/2011 Assistant Professor of Real Estate Economics, EBS University, Germany

12/13 – 1/14 Visiting Researcher, University of Franche-Comté, Besançon, France

Spring 2010 Visiting Professor, Université d’Orléans, France

09/08 – 12/10 Economist, Institute for Advanced Studies, Vienna, Austria

Spring 2008 Visiting Professor, State University of New York, Albany, USA

08/03 – 08/08 Assistant Professor, Goethe University Frankfurt, Germany

Business Experience

1998 – 2003 Research Fellow, Center for a Sustainable Economy, Washington DC, USA

1993 – 1995 Equity Analyst, Atlantik Financni Trhy, Brno, Czech Republic

This talk is part of the Land Economy Departmental Seminar Series series.

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