Annual Report 2011 - NTNU

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Moreover researchers from the focus area are active as policy advisors and board members in e.g. the Executive Board of Norges Bank and the Board of Statistics Norway. Ragnar Torvik was invited speaker on Høstkonferansen 2011 with the topic “Why does China save so much? – and why is this important for Norway”. There have been many appearances in seimiars, national press and also international press such as CNN. In particular, it should be noted that the foreword of the book, which Paivi Lujala is one of two editors, was written by Ellen Johnson Sirleaf, who was awarded the 2011 Nobel Peace prize. New PhD project Empirical analyses of centralization trends, local amenities and regional income differences in Norway Stefan Leknes Department of Economics The present time is characterized as the ''urban millennia''. The migration trends often described through concepts of urbanization and centralization have led to over half of the world's population now living in cities. It is estimated that over 60% of the population will live in cities by 2030. The movement of human capital and firms is often described as traits of the globalization process and leads to increased interconnectedness throughout the world. Globalization is a phenomenon affecting nations, but the same processes have effects also at the local level. This aspect of population movement motivates studies of regional differences. The main focus of this project is to investigate household and firm location decisions and the effect of the spatial distribution by using econometric methods. Clustering of households and firms can be understood with relating to the production and consumption aspects of the economy. From a production viewpoint, clustering of households and firms is often seen as favourable process by economists because of agglomeration economy. Agglomeration economy is the increasing return from scale that stem from clustering. The reason for arising agglomeration effects can be spatial differences in the level of human capital and/or non‐human endowments. Another possibility is arising interaction effects like better input‐output linkages between intermediate and final‐goods suppliers, matching of worker and firms in thick labour markets, and technological externalities. One goal of this project is to identify and quantify these effects on wages. Historically, cities have been regarded as production centres. Today cities can be seen as loci for consumption. The trend is that industry moves out of the cities and service businesses flourish in its place. This gave a spark to a literature concerning quality of life that the researcher draws on. Methodologically the project utilizes panel data from Statistics Norway both on regional and household level. The key variables to establish a causal relation are wage, productivity, housing prices, local amenities and quality of life measures. This PhD project is connected to the Globalization Focus Area Global Economic Flows, Governance and Stability. Professors Hildegunn Ekroll Stokke and Bjarne Strøm from the Department of Economics supervise the project. 28
Fundraising Activities and Research Projects Researchers of this focus area have participated in following applications. Application sent by affiliated researchers 1. Project title: A Blessing, Not a Curse: Managing Revenues from High‐Value Natural Resources Project leader: Paivi Lujala (Department of Geography) Program: Research Council of Norway/FRISAM/researcher project Deadline: 2 June Note: This application received good feedback, but did not get prioritized due to strong competition. The application will be reworked and resubmitted in 2012. Conference/Workshop/Seminar Arranged 26 th April: Seminar Words versus Bullets: Media and Democracy with Coercion, by Professor Juan Vargas, University of El Rosario, Colombia 18 ‐19 September: Workshop Globalization, Governance and Natural Resources. Workshop was organized in collaboration with focus area Intercultural Dynamics. National and International Collaborations Focus Area researchers have initiated collaborations with national institutions such as ESOP at the University of Oslo, and the Research Department of Norges Bank. Focus Area researchers have collaborations with international institutions such as Department of Economics Brown University, Government Department Harvard University, Economics Department Universidad de los Andes, Economics Department Universidad del Rosario, and Economics Department MIT. Publications Acemoglu, D., Robinson, J.A. and Torvik, R. (2011). Why do voters dismantle checks and balances? National Bureau of Economic Research Working Paper 17293, Cambridge: Massuchusetts. Chacon, M.; Robinson, J.A. and Torvik, R. (2011). When is democracy equilibrium? Theory and evidence from Colombia’s la violencia. Journal of Conflict Resolution 55(3): 366 – 396. De Soysa, I. (2011). Another misadventure of economists in the tropics? Social diversity, cohesion and economic development. International Area Studies Review 14(1): 3 – 31. 29
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