Lars Westin

Generalized Schur methods with condition estimators for solving the generalized Sylvester equation

Stable algorithms are presented for solving the generalized Sylvester equation. They are based on orthogonal equivalence transformations of the original problem. Perturbation theory and rounding error analysis are included. Condition estimators (dif/sup -1/-estimators) are developed which when substituted into derived error bounds give accuracy estimates of a computed solution. Results from numerical experiments on well-conditioned and ill-conditioned problems are reported. >

Patterns of a network economy

Network economics is a new, rapidly developing field. In this volume theoretical and empirical contributions are collected, each dealing with different aspects of the network economy. The book assesses networks as a complement to pure market relations and studies innovation networks and strategic alliances among innovative corporations. Product differentiation and specialization in reciprocal networks are emphasized as a strategy of sustainable development. The book presents econometric methods of barrier and network analysis, including communication and trade patterns.

Affinities and frictions of trade networks

This paper formulates a theoretical framework in which the analysis starts with supplier-customer links of micro type. From this we derive aggregate trade links between nodes in a spatial network. It is shown how affinities and barriers shape and influence the establishment of customer links, and how this forms aggregate patterns of flows. The framework is applied to three types of models for determining trade patterns — random discrete choice, information theory and gravity models. Essentially equivalent solutions are derived.

Patterns of a Network Economy — An Introduction

The purpose of this book is to give a presentation of current theoretical and empirical research in the field which may be labelled “network economics”. The label reflects that concepts associated with networks and networking have recently gained considerable interest in economics as well as other sciences. We may thus speak of a new field of economics in emergence, although the roots of “network economics” originate from other fields of economics as well as a broader set of disciplines. One such source of inspiration is the group of studies associated with link formation between corporations and their subsidiaries, between suppliers and their customers, and the co-operation between agents in R&D projects, e.g. Williamson (1975, 1979), Johansson and Mattsson (1987), Lundvall (1988), Hakansson (1987). Another source, dealing with more aggregated links, may be found among studies of intra-industrial trade, such as Burenstam-Linder (1961), Grubel and Loyd (1975) or Balassa and Bauwens (1988). In the first case, the demand for variety and deeper specialisation in order to obtain temporary monopolies leads to the establishment of reciprocal links between suppliers and customers. Such links represent a network capital whose territorial extension is sensitive to internodal affinities and barriers. This introduces temporal rigidities and a spatial dispersion of flows which, at more aggregated levels, may be observed as a part of intra-industrial trade.

Integration of Freight Network and Computable General Equilibrium Models

Over the past 30 years very significant progress has occurred in the understanding and modeling of passenger trip making behavior over networks. Yet, corresponding advances in understanding and modeling of freight transportation decision making over inter-regional, inter-modal networks have not occurred. In fact the most recent large scale U.S. freight network model is able to predict equilibrium network link volumes agreeing with Federal Railway Administration (FRA) density codes (reported data describing annual tonnages on every physical link of the rail system) with a frequency of only about 60% (Friesz et al., 1981; 1983a; 1983b; 1985). This is poor performance since density codes denote upper and lower bounds for link volumes; the difference between those upper and lower bounds is frequently of the same order of magnitude as the predicted volumes themselves. Poor as this accuracy is, it is substantially greater (about three times greater) than that reported for earlier models (Bronzini, 1980) and was achieved by straight-forward extensions of the urban passenger network modeling paradigm. Still greater accuracy may be obtained from a model designed specifically for freight applications from the outset.

Revealing Network Properties of Sweden’s Trade with Europe

In this chapter, estimates of the network properties of Swedish exports of commodities to Europe are presented. The standard classical trade models and those generated by Heckscher-Ohlin indicate the direction of trade at the borders of nations but they do not generally tell us with whom a nation trades or the quantity of the flows. The two important factors of destination and quantity are not readily explained in the above models as trade patterns are not revealed by a characterization of the nodes in the trade network alone. It has to be augmented by a representation of link attributes and thus of spatial accessibility. The standard international trade models assume away friction, inertia and barriers in space and thus may not explain bilateral patterns of flows in a network although they do suggest factors in the nodes which are of importance for the creation of inter-industrial trade in homogeneous commodities.

Regional Policy as Interaction between National Institutions and Regional Science : The Nordic Growth Centre Policies, 1965-1980

As a reaction to emerging regional imbalances, discussions regarding growth centre policy began in the Nordic countries during the latter part of the 1960s. At this time, a working group within the European Free Trade Association (EFTA) provided a policy option based on international theories from urban and agglomeration economics. Within the actual growth centre policies in Norway, Sweden and Finland, central elements from the EFTA concept related to the scale of the centres were, however, not adopted. Instead, growth centres were located to places that had a smaller population than the 30,000 inhabitants recommended by the EFTA concept. This outcome was related to the fact that the EFTA concept was adapted to the existing regional policy institutions. As these institutions were egalitarian and redistributive in character, the Nordic growth centre policies favoured a more dispersed settlement structure than suggested by the EFTA concept.

The Role of Cities in Nordic Regional Development Policy

‘Modern regional policy,’ the territorially directed policies developed after WWII represent only a subset of the measures a central power may use to direct development in its territory. The larger set of policies we denote ‘Classical regional policy.’ The policies developed in Nordic countries after 1950 could not promote a limited set of cities, although ‘growth center policies’ had been attempted with some success in France and the UK. Instead, tax and subsidy structures, support for investments, and transport subsidies directed towards less populated areas were favored. We argue that this choice was a result of the political processes in the Nordic welfare states. The attempts to implement growth pole strategies in the Nordic countries are discussed and analyzed in a context where unbalanced growth between regions is generic and the alternatives available to a national power in order not to lose control over its territory are made explicit. The attempts to implement a city-based growth pole-oriented regional policy in Norway, Sweden, and Finland are summarized. We find that such an explicit policy mostly is impossible within ‘modern regional policy’, but that the pitfalls of this policy in the 1980s led to the ‘broad regional policy.’ This policy has much in common with the classical policy. However, we also found that such a policy was, to some extent, actually formulated when the location of public facilities was decided.

Establishing Urbanity in a Region Abundant with Natural Resources: The Case of Umeå, Sweden

When compared with other cities in Northern Sweden, the history of Umea is exceptional in many aspects. The growth of the city has caused discussion regarding its role in, and impact on, the surrounding region. Given this, the paper initiates a discussion about Umea but also aims to add to the knowledge and analysis of the dynamics of cities. The story of how a small town in a region rich in natural resources and relatively distant from the national capital, has—at least so far—managed to avoid the curse of natural resources is interesting as a case in the economic history of regions and cities. The roots of the development have not previously been analyzed. This also means that we have to analyze the complex relation between Umea and its surrounding resource-rich region. It is actually possible to trace much of the complexity in this relationship to unresolved destructive relations between the historical role of the natural resources in the region and its current economic, social, and cultural challenges. We discuss the urban history of northern Sweden and especially how various forms of power during history were distributed between its cities. This leads to the analysis of the importance of natural resources in the creation of wealth in the region, but also the risk of being caught up by the curse that any such region faces. We present three hypothesizes as to why Umea came to develop in a way that differs from other cities and, finally, we try to identify future threats for the city to tackle.