nep-geo New Economics Papers
on Economic Geography
Issue of 2007‒01‒13
35 papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Modeling Spatial Autocorrelation in Spatial Interaction Data: A Comparison of Spatial Econometric and Spatial Filtering Specifications By Manfred M. Fischer; Daniel A. Griffith
  2. Urban Sprawl. How Useful Is This Concept? By Gunther Maier; Gerald Franz; Pia Schrock
  3. Port Efficiency and Regional Development By Eduardo Haddad; Geoffrey Hewings; Raul Dos Santos
  4. Economic Fundamentals in Local Housing Markets: Evidence from U.S. Metropolitan Regions By Min Hwang; John Quigley
  5. Opportunities, Race, and Urban Location: the Influence of John Kain By Eric Glaeser; Eric Hanushek; John Quigley
  6. Urban Economics By John Quigley
  7. A Relational Account of the Causes of Spatial Firm Mobility By Joris Knoben
  8. Agglomeration and the Spatial Distribution of Creativity By Roland Andersson; John Quigley; Mats Wilhelmsson
  9. The Nature of Regional Unemployment in Italy By Matteo Lanzafame
  10. Delineating Daily Activity Spaces in Rural Areas By Michael J Keane; John Lennon
  11. Knowledge, Spillovers and Firms’ International Growth. An Analysis at the Italian NUTS 3 Level By Andrea Bonaccorsi; Lucia Piscitello; Cristina Rossi
  12. Croatian Regional Strategy in the Framework of the EU Accession Process By Zlatan Frohlich
  13. University Decentralization as Regional Policy: The Swedish Experiment By Roland Andersson; John Quigley; Mats Wilhelmsson
  14. Regulation and the High Cost of Housing in California By John Quigley; Steven Raphael
  15. "Trade and the structure of cities" By Jean Cavailhes; Carl Gaigne; Takatoshi Tabuchi; Jacques-Francois Thisse
  16. Impact on Car Ownership of Local Variation in Access to Public Transport By Graham Robert Crampton
  17. Spatial Effects upon Unemployment Outcomes: The Case of New Jersey Teenagers. By Katherine O'Regan; John Quigley
  18. Centre-Periphery Analysis About the Hungarian Public Road System By Geza Toth
  19. Construction of Regional Input-Output Tables in Finland 2002 By Mikko Koutaniemi; Tuomas Louhela
  20. Housing Market in Malaga: An Application of the Hedonic Methodology By Alejandro F. Garcia
  21. Regional Tourism Satellite Account (RTSA) in Finland - Data, Concepts, Methods and Key Results By Juha-Pekka Konttinen
  22. The Financialization of the Property Sector: the Case of the Swiss Pension Trusts (1994-2005) By Thierry Theurillat; Jose Corpataux; Olivier Crevoisier
  23. EU-Supported Regional Development After 2007: Lessons Learnt and Future Priorities of the Greek Regions Falling Under the New "Competitiveness" Objective Programmes By Manolis Christofakis; Nicholas Karachalis; Athanassios Papadaskalopoulos
  24. Intercity interactions: evidence from the US By Andrea R. Lamorgese; Gianmarco I.P. Ottaviano
  25. The Urban Impacts of the Endangered Species Act: A General Equilibrium Analysis By John Quigley; Aaron Swoboda
  26. Agglomeration and Networks in Spatial Economies By Börje Johansson; John Quigley
  27. The Renaissance in Regional Research By John Quigley
  28. Transactions Costs and Housing Markets By John Quigley
  29. Estimation of Interregional Trade for Finnish Regions in 1996 and 2002 - Freight Flow and Gravity Approaches By Tuomas Louhela
  30. Economic Und Fiscal Effects of the FIFA World Cup in Germany - the Case of Munich By Alina Mihaela Popescu; Peter Friedrich; Gunther Wonnemann
  31. Are Skilled Workers More Attracted to Economic Agglomerations? By Rosa Sanchis-Guarner; Enrique Lopez-Bazo
  32. Public Transit and the Spatial Distribution of Minority Employment: Evidence from a Natural Experiment By Harry Holzer; John Quigley; Steven Raphael
  33. Urbanization, Productivity and Innovation: Evidence from Investment in Higher Education By Roland Andersson; John Quigley; Mats Wilhelmsson
  34. The Costs of Remoteness: Evidence from German Division and Reunification By Stephen Redding; Daniel Sturm
  35. Are Shirking and Leisure Substitutable? An Empirical Test of Efficiency Wages Based on Urban Economic Theory By Stephen L. Ross; Yves Zenou

  1. By: Manfred M. Fischer; Daniel A. Griffith
    Abstract: The need to account for spatial autocorrelation is well known in spatial analysis. Many spatial statistics and spatial econometric texts detail the way spatial autocorrelation can be identified and modelled in the case of object and field data. The literature on spatial autocorrelation is much less developed in the case of spatial interaction data. The focus of interest in this paper is on the problem of spatial autocorrelation in a spatial interaction context. The paper aims to illustrate that eigenfunction-based spatial filtering offers a powerful methodology that can efficiently account for spatial autocorrelation effects within a Poisson spatial interaction model context that serves the purpose to identify and measure spatial separation effects to interregional knowledge spillovers as captured by patent citations among high-technology-firms in Europe.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p10&r=geo
  2. By: Gunther Maier; Gerald Franz; Pia Schrock
    Abstract: This paper discusses the question whether the city of Vienna, Austria, is experiencing urban sprawl. We will critically evaluate the concept of urban sprawl and analyze its relationship to regular forms of urban development. Particular emphasis will be given to quantitative measures of urban change that might be able to identify key factors of urban sprawl. These measures are then applied to empirical data for the city of Vienna, Austria
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p105&r=geo
  3. By: Eduardo Haddad; Geoffrey Hewings; Raul Dos Santos
    Abstract: This paper attempts to elucidate one of the mechanisms that link trade barriers, in the form of port costs, and subsequent growth and regional inequality. Not only inland costs can be perceived as a further barrier to link trade liberalization and growth (Haddad and Perobelli, 2005), but also port costs. Unlike highway link, congestion at port may have severe impacts spread over space and time whereas highway link congestion may be resolved within several hours. Since port is part of the transportation network, any congestion/disruption is likely to ripple throughout the hinterland. In this sense, it is important to model properly the role nodal congestion plays in a context of spatial models and international trade. Thus, we have developed a spatial CGE model integrated to a transport network system in order to simulate the impacts of increases in port efficiency in a context of trade liberalization. The role of ports of entry and ports of exit are explicitly considered in order to grasp the holistic picture in an integrated interregional system.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p113&r=geo
  4. By: Min Hwang (National University of Singapore); John Quigley (University of California, Berkeley)
    Abstract: This paper investigates the effects of national and regional economic conditions on housing market outcomes: the prices of owner-occupied housing, vacancies, and residential construction activity. Our three-equation model confirms the importance of changes in regional economic conditions, income and employment on local housing markets. The results provide the first detailed evidence on the importance of vacancies in the owner-occupied housing market in affecting housing prices and supplier activities. The results also document the importance of variations in materials, labor and capital costs and regulation in affecting new supply. Simulation exercises, using standard impulse response models, document the lags in market responses to endogenous shocks and the variations arising from differences in local parameters. The results also suggest the importance of local regulation in affecting the pattern of market responses to regional income shocks.
    Date: 2006–06–27
    URL: http://d.repec.org/n?u=RePEc:cdl:bphupl:1050&r=geo
  5. By: Eric Glaeser (Harvard University); Eric Hanushek (Stanford University); John Quigley (University of California, Berkeley)
    Abstract: No economist studying the spatial economy of urban areas today would ignore the effects of race on housing markets and labor market opportunities, but this was not always the case. John Kain developed much of urban economics but, more importantly, legitimized and encouraged scholarly consideration of the geography of racial opportunities. His provocative study of the linkage between housing segregation and the labor market opportunities of Blacks arose from his work on employment decentralization and constraints on Black residential choice. His later research program on school outcomes was similarly focused in how the economic opportunities of minority households vary with location. John Kain's scientific work forms a legacy linked by the study of the urban disadvantaged.
    Date: 2006–06–27
    URL: http://d.repec.org/n?u=RePEc:cdl:bphupl:1051&r=geo
  6. By: John Quigley (University of California, Berkeley)
    Abstract: Urban economics emphasizes: the spatial arrangements of households, firms, and capital in metropolitan areas; the externalities which arise from the proximity of households and land uses; and the public policy issues which arise from the interplay of these economic forces.
    Date: 2006–07–14
    URL: http://d.repec.org/n?u=RePEc:cdl:bphupl:1072&r=geo
  7. By: Joris Knoben
    Abstract: It is accepted in the literature that exchanges within networks have an ongoing social structure that both enables and constrains the behavior of its members (Pfeffer and Nowak 1976; Uzzi 1996). However, most research in inter-organizational settings has focused on the enabling effects of networks and network structures only, even though some noteworthy exceptions exist (e.g. Romo and Schwartz 1995; Singh and Mitchell 1996). A possible constraining effect of network participation is spatial lock-in, also known as spatial inertia, of a firm. Following Resource Dependence Theory (Pfeffer and Salancik 1978), it can be argued that a firm that makes extensive use of knowledge resources possessed or controlled by external actors for its innovative processes can become dependent on these actors. By themselves, the relationships in which these dependencies exist are non-spatial. However, since geographical proximity is assumed to facilitate the successful exchange of (especially tacit) knowledge through inter-organizational relationships (IORs) (Bretschger 1999), dependency on other firms located in the same region can also lead to dependency on a certain geographical location, and thus to spatial lock-in (Stam 2003). The IORs that are enabling for the firm in terms of its innovative processes act, at the same time, as constraining factors for the spatial behavior of the firm. Similar reasonings can be found in the literature on Territorial Innovation Models (Moulaert and Sekia 2003), which indicates that economic embeddedness in a region can be beneficial for the performance of firms. However, this embeddedness can also lead to dependence on localized inputs and production factors. Due to these dependencies, a firm can become very unlikely to relocate, even if doing so is beneficial from a cost perspective. As Romo and Schwartz state: “Firms are usually too dependent on the material, political and social resources available in the local production culture to risk departure, even when production costs might be substantially reduced (Romo and Schwartz 1995:874).†There currently is, however, only weak empirical evidence for the proposed relationship between the level of (local) embeddedness and a firm’s propensity to relocate. Moreover, several authors even propose that geographical distance in IORs is becoming irrelevant since it effects can be replicated by ICT (Morgan 2004), or high levels of organizational or technological proximity (Kirat and Lung 1999). If this is indeed the case, then participation in localized innovative IORs will have no effect on the spatial behavior of firms, since a firm can operate exactly the same on a different geographical location. The main goal of this research is to provide empirical insights into the effects of a firm’s level of participation in innovative (localized) inter-organizational relationships (IORs) on its propensity to relocate. Based on the above, the following research question has been formulated is “To what extent is the level of embeddedness of a firm in (localized) innovative inter-organizational relationships of influence on its propensity to relocate?†Answering this research question adds to the insights about the constraining effects of networks by focusing on the spatially constraining effect of inter-organizational relationships. This research question will be answered based on a data from a survey among Dutch automation service firms in 2006. In line with earlier research (c.f. Van Dijk and Pellenbarg 2000; Brouwer et al. 2004) an ordinal logit model will be used to relate the relocation propensity of a firm to that firm’s participation in localized innovative IORs, the strength of these IORs, and the level of geographical, organizational and technological proximity. It also provides insight into the question whether or not high levels of technological and organizational proximity can negate the need for geographical proximity in inter-organizational collaboration (Boschma 2005). References: Boschma, R. A. (2005). "Proximity and innovation: A critical assessment." Regional Studies 39(1): 61-74 Bretschger, L. (1999). "Knowledge diffusion and the development of regions." Annals of Regional Science 33(3): 251-268 Brouwer, A. E., I. Mariotti and J. N. van Ommeren (2004). "The firm relocation decision: An empirical investigation." Annals of Regional Science 38(2): 335-347 Van Dijk, J. and P. H. Pellenbarg (2000). "Firm relocation decisions in The Netherlands: An ordered logit approach." Papers in Regional Science 79(1): 191-219 Kirat, T. and Y. Lung (1999). "Innovation and proximity - Territories as loci of collective learning processes." European Urban and Regional Studies 6(1): 27-38 Morgan, K. (2004). "The exaggerated death of geography: Learning, proximity and territorial innovation systems." Journal of Economic Geography 89(1): 3-21 Moulaert, F. and F. Sekia (2003). "Territorial innovation models: A critical review." Regional Studies 37(3): 289-302 Pfeffer, J. and P. Nowak (1976). "Joint-ventures and interorganizational interdependence." Administrative Science Quarterly 21(3): 398-418 Pfeffer, J. and G. R. Salancik (1978). The external control of organizations: A resource dependency perspective. New York, Harper and Row Romo, F. P. and M. Schwartz (1995). "The structural embeddedness of business decisions: The migration of manufacturing plants in New York state, 1960 to 1985." American Sociological Review 60(1): 874-907 Singh, K. and W. Mitchell (1996). "Precarious collaboration: Business survival after partners shut down or form new partnerships." Strategic management journal 17(2): 99-116 Stam, F. C. (2003). Why butterflies don't leave: Locational evolution of evolving enterprises. Utrecht, Utrecht University Uzzi, B. (1996). "The sources and consequences of embeddedness for the economic performance of organizations: The network effect." American Sociological Review 61(4): 674-698
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p1&r=geo
  8. By: Roland Andersson (Royal Institute of Technology); John Quigley (University of California, Berkeley); Mats Wilhelmsson (Royal Institute of Technology, Sweden)
    Abstract: This paper analyzes the spatial distribution of "creativity" -- the production of new knowledge. We analyze commercial patents granted in Sweden during 1994-2001 using a panel of one hundred labor market areas which encompass the entire country. We relate patent activity to measures of localization and urbanization, to the industrial composition and size distribution of firms, and to the regional distribution of human capital. Our analysis confirms the importance of human capital and research facilities in stimulating regional patent output. Importantly, our results document the importance of agglomeration and spatial factors in influencing creativity: Patent activity is increased in larger and more dense labor markets and in regions in which a larger fraction of the labor force is employed in medium-sized firms. Our results also indicate that creativity is greater in labor markets with more diverse employment bases and in those which contain a larger share of national employment in certain industries, confirming the importance of urbanization and localization economies in stimulating creativity. Our quantitative results suggest that the urbanization of Sweden during the 1990s had an important effect upon the aggregate level of patent activity in the country, leading to increases of up to five percent in aggregate patents.
    Keywords: Agglomeration,
    Date: 2006–07–13
    URL: http://d.repec.org/n?u=RePEc:cdl:bphupl:1069&r=geo
  9. By: Matteo Lanzafame
    Abstract: Taking as a starting point the evidence of growing disparities in the 1977-2003 years, the paper investigates the pure hysteresis hypothesis for regional unemployment rates in Italy. Relying both on univariate and panel unit-root rests, we can confidently reject the unit-root hypothesis. The implication of this result is that, however persistent, shocks to regional unemployment will be temporary. We, then, proceed to estimate the NAIRU for each of the 20 Italian regions. Our estimates of the regional NAIRUs turn out to be fairly precise and allow us to draw two interesting conclusions. Firstly, the hypothesis of constant regional NAIRUs between 1977 and 2003 is supported by the data. Secondly, we find that there is a significant degree of heterogeneity among the regional NAIRUs. Finally, we investigate the cyclical behaviour of regional unemployment and find that region-specific demand shocks play a major role.
    Keywords: Endogenous growth; Okun's Law, Italian regions
    JEL: C33 E24 R10
    Date: 2006–12
    URL: http://d.repec.org/n?u=RePEc:ukc:ukcedp:0607&r=geo
  10. By: Michael J Keane; John Lennon
    Abstract: The new relational geography challenges notions of inherently coherent integrated 'territory-based' systems of relations. This paper uses network methods and correspondence analysis to try and describe some of the spatial differentiation and relational dynamics at different rural sites. The particular focus is on delineating the daily activity spaces of households and to describe the roles of local centres. The methods used do help us capture some aspects of the diffferences that exist in work, shoping and social relations and the spaces that these relations fill. The implications of the findings for local planning and admnistration are also discussed.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p106&r=geo
  11. By: Andrea Bonaccorsi; Lucia Piscitello; Cristina Rossi
    Abstract: In the framework of analyses on the relationship between geography and technological innovation, the role of universities has received considerable attention. Both theoretical and empirical literature has shown that university research positively influences the capacity for innovation of the surrounding firms (Jaffe, 1989; Feldman, 1994; Acs et al, 2002). Universities play a central role in innovation processes both as the main responsible for basic research and also as forgers of human capital’s skills. Empirical work has highlighted that such effects radiate from major university centres crossing borders and administrative boundaries (Anselin et al., 1997). This paper focuses on the relationship between universities and the innovative capacity at the territorial level. Specifically, our empirical analysis investigates whether university research spillovers are highly localised or they rather flow across borders. Empirical literature has widely investigated intensity and directions of such spillovers, mainly within the theoretical framework of Griliches-Jaffe. However, we extend the empirical evidence exploring whether intensity and directions of spillovers depend on universities’ specificities (e.g. size, fields of specialization, fund rising capacity) and on the local absorptive capacity. The analysis is developed at the Italian NUTS3 level, using an explicit spatial econometric approach applied to a knowledge production function. References Acs, Z., Anselin, L., and Varga, A. (2002): “Patents and innovation counts as measures of regional production of new knowledgeâ€, Research Policy 31, pp. 1069-1085. Anselin, L., Varga, A., and Acs, Z. (1997): “Local geographic spillovers between University research and high technology innovationsâ€, Journal of Urban Economics 42, pp. 422-448. Feldman, M. (1994): The Geography of innovation, Kluwer Academic Publishers. Dordrecht. Jaffe, A. (1989): “Real effects of academic researchâ€, The American Economic Review, vol 79, n. 5, pp. 957-970.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p116&r=geo
  12. By: Zlatan Frohlich
    Abstract: A limitation on the implementation of modern regional policy in Croatia is the inherited doctrine of the reconstruction of war affected areas. This doctrine is no longer appropriate to the needs of new regional policy, which must be formulated in the context of EU accession. This is especially important considering that the EU emphasizes that member states must be in a position to withstand competitive pressures in the single market as a key condition for accession. In this context, regional policy will be closely tied into the accession strategy. A major objective will be to prepare for the introduction of EU cohesion policy and the Structural Funds. The pre-accession funds will contribute to that effort. The situation in Croatia today is that while “balanced regional development†is one of seven key government priorities, there is no clear definition of what this means. There is a fragmented listing of regions deemed to have special problems without, on the face of it, any coherent profile of those development needs. The National Strategy for Regional Development will seek to address these issues. The implications, therefore, for approach to the analysis of regional policy in Croatia today is that we concentrate essentially upon three main fields of enquiry from two perspectives – top-down and bottom-up. These are: • Assessment of the overall policy framework for regional development, including the current legal framework in particular policies, legal acts and regulations which affect the development of those parts of the country which can be loosely termed “assisted areasâ€. • Assessment of the institutional and administrative capacity in place. • Appraisal of the types of regional development instruments currently deployed and their effectiveness in dealing with development needs at national, regional and local level. The strategy sets the context for balanced regional development both at national and sub-national level as well as draws attention to development needs of the ‘assisted areas’ as well as counties highlighting their different development profiles. It brings together the main analytical parts – policy framework, institutional context and finally an assessment of the existing development interventions. This is followed by a SWOT analysis before moving to a set of conclusions and next steps which will frame the strategic rationale behind the strategy. The paper is linked to the project Strategy and Capacity Building for Regional Development (CARDS 2002 Programme for Croatia): Analysis Section for Strategy.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p108&r=geo
  13. By: Roland Andersson (Royal Institute of Technology, Stockholm); John Quigley (University of California at Berkeley); Mats Wilhelmsson (Royal Institute of Technology, Stockholm)
    Abstract: During the past fifteen years, Swedish higher education policy has emphasized the spatial decentralization of post-secondary education. We analyze this policy as a natural experiment, and we investigate the economic effects of this decentralization on productivity and output. We rely upon a twelve-year panel of output, employment and investment for Sweden's 285 municipalities, together with data on the location of university researchers and students, to estimate the effects of exogenous changes in educational policy upon regional development. We find important and significant effects of this policy upon output and productivity, suggesting that the economic effects of the decentralization on regional development are economically important.
    Date: 2006–06–27
    URL: http://d.repec.org/n?u=RePEc:cdl:bphupl:1022&r=geo
  14. By: John Quigley (University of California, Berkeley); Steven Raphael (Univesity of California, Berkeley)
    Abstract: During the three-year period ending in July 2003, the rise in housing costs in California far exceeded the national inflation rate. Housing prices in five coastal counties increased by more than 60 percent. For the highest quintile of cities, prices increased by an average of more than thirty percent per year. Evidently California housing markets differ along important dimensions from those in the rest of the country. One striking difference is the degree of regulation governing land use and residential construction. California represents the most extreme example of autarky in land use regulations of any U.S. state. Cities are free to set their rules independently, with little oversight. Moreover, state tax policy creates incentives that are likely to decrease production an increase housing costs. Property taxes are constitutionally limited to one percent of acquisition costs while cities are permitted a share of local sales tax receipts. This creates a regulatory incentive to favor retail development over housing construction, to favor development of expensive housing over moderately priced housing, and to discourage the construction of housing.In this paper, we explore the linkages between land-use regulations, growth in the housing stock, and housing prices in California cities. First, we assess whether housing is more expensive in more regulated cities. Next, we assess whether growth in the housing stock over the period of a decade depends on the degree of land-use regulation at the start of the decade. Finally, we estimate the price elasticity of housing supply in regulated and relatively unregulated cities. Our results suggest that current regulations have powerful effects on housing outcomes.
    Keywords: house prices, Housing, Housing markets, Laud-use policies,
    Date: 2006–06–27
    URL: http://d.repec.org/n?u=RePEc:cdl:bphupl:1060&r=geo
  15. By: Jean Cavailhes (IRNA-CESAER); Carl Gaigne (IRNA); Takatoshi Tabuchi (Faculty of Economics, University of Tokyo); Jacques-Francois Thisse (CORE, Universite catholique de Louvain)
    Abstract: Our purpose is to investigate how the interplay between trade, commuting and communication costs shapes the economy at both the interregional and intra-urban levels. Specifically, we study how economic integration affects the internal structure of cities and show how decentralizing the production and consumption of goods in secondary employment centers allows firms located in a large city to maintain their predominance. Several new results in both economic geography and urban economics are established, which all agree with empirical evidence.
    Date: 2006–12
    URL: http://d.repec.org/n?u=RePEc:tky:fseres:2006cf454&r=geo
  16. By: Graham Robert Crampton
    Abstract: This paper reports on a project funded by the Volvo Research Foundations. It is international in nature and focuses on the impact of urban public transport, and light rail in particular, on restraining the growth of (or even reducing) local car ownership rates. The recent Censuses of the UK (2001) and France (1999) make these two countries particularly suitable, but the project examined other countries and urban transport systems too. We were especially interested in the `high quality' alternatives to light rail, including other urban rail, or enhanced forms of bus. Especially in Britain, the investment costs in new light rail systems have led to Government disquiet and reluctance to approve funding. The empirical work consists of econometric estimates using small area data, mainly from Censuses, reinforced by GIS mapping of urban transport access on the local small area. 300 metre and 600 metre zones of good access can then be used in the econometrics, alongside socioeconomic indicators of the economically active population. Results from a wide range of cities suggest that good access does indeed reduce car ownership below what would be expected given the local socioeconomic profile. These findings have important implications for environmental and transport policy
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p123&r=geo
  17. By: Katherine O'Regan (University of California, Berkeley); John Quigley (University of California, Berkeley)
    Abstract: Theories about the importance of space in urban labor markets have emphasized the role of employment access, on the one hand, and neighborhood composition, on the other hand, in affecting employment outcomes. This paper presents an empirical analysis which considers both of these factors, together with individual human capital characteristics and household attributes in affecting youth employment.The analysis is based upon an unusually rich sample of micro data on youth in four New Jersey metropolitan areas. The empirical analysis is based on a sample of some 28,000 at home youth, matched to detailed census tract demographic information and specially constructed measures of employment access. The research includes a comparison of the importance of neighborhood and access in affecting youth employment when individual and household attributes are also measured. The results demonstrate the overall importance of these spatial factors (particularly neighborhood composition) in affecting youth employment in urban areas.
    Keywords: Employment, Spatially isolated minorities,
    Date: 2006–06–27
    URL: http://d.repec.org/n?u=RePEc:cdl:bphupl:1058&r=geo
  18. By: Geza Toth
    Abstract: Although the European Union prefers and supports mostly railways in terms of transport investments, the public road network – with a special regard to motorways – is rather underdeveloped in Hungary. Motorway construction has recovered after the change of regime. It is important not only to simply construct motorways but to work on the improvement of accessibility by validating the aspects of regional development, and thus the amounts invested have much more benefits. This view has been gaining ground mainly in the past period in Hungary. This paper analyses the accessibility conditions in 2005 by applying geographical information science methods, and examines if a favourable accessibility implies clearly a favourable level of development. The study also analyses which areas need new transport investments taking into consideration the circumstances of accessibility in 2005. By comparing the level of economic development and accessibility, the article seeks to answer at last how much favourable basis the present economic situation is for new public road investments.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p11&r=geo
  19. By: Mikko Koutaniemi; Tuomas Louhela
    Abstract: The aim of this paper is to describe, how supply and use tables and symmetrical input-output tables are made for Finnish regions. Analysis was done first time for the year 1995. Studies made in 1995 and 2002 are not totally comparable, because of methodological modifications at the national accounts. Goal of the project is, however, to enable studies analysing changes in the regional economic structures. Research results make possible to analyse one region at the time or to do comparisons among regions simultaneously. Tables include information about consumption, investments, exports and imports, production value and volume of goods and services, and economical interdependies of the regions and industries. Corner stone of national as well as regional accounts is a European System of National Accounts ESA 1995. In the supply and use tables national accounts are balanced and divided to the products, which reduces statistical discrepancy. The biggest difference between studies of 1995 and 2002 is the way, how trade flows are estimated. There are no survey made to the industrial establishments in the current research. Trade flows are estimated instead by freight flow approach, which combines industrial products’ sales and transportation data. First regional balances of supply and demand have now been estimated. From the economical transactions, private consumption and exports and imports, are already divided to the National Accounts product classification level. Research continues now by dividing reminding parts of the regional balance of supply and demand to the products and by fixing problematic parts of it, such as production taxes and subsidies, foreign trade and interregional trade flows. When regional balances of supply and demand are almost equal, product dividing will be finished and making of supply and use tables will begin. In addition to supply and use tables there is a need of data from amount and hours of labour by industry. Data from the labor is from Regional Accounts and labor hours will be estimated as a new economic transaction by using information from Regional Accounts and service structure statistics.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p110&r=geo
  20. By: Alejandro F. Garcia
    Abstract: The analysis of the factors that determine the price of the second-hand house, by means of the use of the hedonic methodology, constitutes the central objective of this work. This study has been applied to the market of the house corresponding to the municipality of Malaga (Spain), of where a sample of 1996 transactions, made during 2003, has been selected.This information has been facilitated by a real estate agency. The obtained results have allowed to identify those characteristics of the houses that more affect their price and quantify this influence, valuing it in monetary terms. It has been stated that the contribution of some structural attributes (the floor area, the number of toilets, the presence of private garage or the luminosity of the house) and others of location (proximity to the sea or downtown, and location in a certain zone) affects the price of the house decisively.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p101&r=geo
  21. By: Juha-Pekka Konttinen
    Abstract: The aim of this paper is to describe how the Tourism Satellite Account (TSA) is made for Finnish regions. However, the aim of this project is to analyse the regional effects and regional economic structures of tourism in Finland. The TSA is a statistical system which depicts the financial importance and economic effects of tourism in an extensive and versatile manner. It is based on the European System of Accounts ESA 1995 and internationally given standards and norms of the TSA. Therefore, it is comparable between different countries. In Finland, the Tourism Satellite Account was first introduced in 1999. Since then, there have been two updates; the latest was published in December 2004. The TSA was partially regionalised for the first time in May 2005 basing on data from 2002. The aim of this project is to fully regionalise the TSA at the NUTS 3 level. Among other aggregates, the TSA provides information on visitor consumption, tourism supply and demand and employment. To be precise, the consumption of visitors is estimated by product and type of tourism. Supply and demand tables of tourism are balanced and divided to the products. Employment and total hours worked are reported by industry. The research results enable an analysis of one region at a time or comparisons between regions simultaneously. The tables and accounts are based on several source materials, mostly produced by Statistics Finland. The data include National and Regional Accounts, Tourism Statistics, Finnish Travel Survey and statistics on Finnish Enterprises, as well as numerous other sources. There will also be a survey made of the tourism industry. Increasing economic impacts of tourism have been recognised for a number of years. The results of this research can be used in both planning and development at the regional level. Furthermore, it is possible to conduct further studies into the economic effects of tourism in Finnish regions.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p107&r=geo
  22. By: Thierry Theurillat; Jose Corpataux; Olivier Crevoisier
    Abstract: About 15% of the fortune of the Swiss pension funds has been invested in real estate from 1994 to 2002. Pension trusts have two possibilities in their investment policy, either owning and being responsible for the buildings directly or buying shares in investment vehicules whose localization is mainly in Zurich. In the first case, pension trusts behave as contractors and investors at the same time, which requires staff and moreover knowledge of the real estate markets. Investments which are done at a regional scope and concern chiefly rental apartment buildings are evaluated inside the pension trusts. In the second case, pension trusts are only investors and investments are evaluated through market criterias such as yield, risk/ diversification and liquidity. Basically only the main urban regions of the country are considered for real estate investments that also concern chiefly rental apartment buildings in this case. The change of territorial scale doesn't seem to reduce the risk of real estate investments and the question of the expected yield can be of relevant.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p118&r=geo
  23. By: Manolis Christofakis; Nicholas Karachalis; Athanassios Papadaskalopoulos
    Abstract: Next year (2007) is expected to be a milestone for the regional policy of Greece. For the first time since the EU launched the programmes which are co-funded by the Structural Funds, Greek regions are excluded from the Objective 1 “Convergence†programmes of the 2007-2013 programming period. Two regions, Sterea Ellada and Southern Aegean have been included in the phasing - in group of NUTS II regions which are falling under the new “Regional Competitiveness and Employment†objective since they have exceeded the 75% boundary of the GDP per capita of the EU both in relation with the older 15 and the 25 current member states. Hence, apart from the reduction funding compared to the current period, they are obliged to redefine their developmental priorities and to adjust the programming context according to the new circumstances in line with the Lisbon and Gothenburg objectives. Within this context the preparation calls for the adjustment to the new circumstances and the exploration of the most efficient way to continue and empower the developmental path. In addition to these, some important matters such as the actual developmental position of these regions, the sectors where cohesion hasn’t been achieved, the new challenges and the experience that has been gained and to what extent it is being used as a learning process have to be explored The article aims to contribute to the ongoing conversation regarding the ways by which Sterea Ellada and Southern Aegean regions can utilize the Structural Funds in the new programming period, based on their experience until today, but also on the possibilities which they are being offered as “phasing – in†regions of the “Competitiveness and Employment†objective according to the new context of regional policy. To these directions, the general outlines of the future perspectives of the regional priorities of the European Union will be presented initially, both for the current and the next programming period. A comparative description of the socio-economic position of the two regions within the European Union is given next, followed by a discussion of the current programming experience and some implementation issues and lessons learnt. Finally, suggestions and some policy priorities as well as the conclusions of the analysis will be presented.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p109&r=geo
  24. By: Andrea R. Lamorgese (Banca d'Italia); Gianmarco I.P. Ottaviano
    Abstract: Using national level input-output matrices, we propose a strategy to identify pecuniary externalities operating through the markets for intermediate goods at the local level. Then, controlling for common shocks in a spatial econometric framework, (i) we estimate the e®ect of pecuniary externalities on productivity growth; (ii) we disentangle such e®ect from the one of other local interactions (i.e. knowledge or other face-to-face spillovers) and that of local characteristics; (iii) we evaluate the scope of operating of all kind of externalities using di®erent distance measures. Our estimates suggest that pecuniary externalities and other kinds of local interactions coexist, that their e®ect on productivity growth is decreasing with distance and that it depends on inter-city diversity and the pattern of local specialisation
    Keywords: customer and supplier driven externalities, spatial autoregressive models, dynamic factors model
    JEL: R12 R15
    Date: 2006–12–03
    URL: http://d.repec.org/n?u=RePEc:red:sed006:667&r=geo
  25. By: John Quigley (University of California, Berkeley); Aaron Swoboda (University of Pittsburgh)
    Abstract: We consider the general equilibrium implications of environmental regulations which result in a reduction of otherwise profitable residential development. Critical habitat designation under the Endangered Species Act is an important example. If the regulations affect a significant amount of land, they may have important effects on the rest of the regional economy - increasing rents and densities on lands not subject to the regulation, causing the conversion of lands from alternative uses, increasing the net developed area in the region, and decreasing consumer welfare. We develop a flexible general equilibrium simulation of the economic effects of critical habitat designation, explicitly considering the distributional effects upon owners of different types of land and upon housing consumers. The results of our simulation show that the most significant economic effects of critical habitat occur outside of the designated area. The prices and rents of non-critical habitat lands increase significantly. Incomes are redistributed across landlords, and the well being of housing consumers is further affected through these linkages.
    Date: 2006–07–14
    URL: http://d.repec.org/n?u=RePEc:cdl:bphupl:1070&r=geo
  26. By: Börje Johansson (Jönköping International Business School); John Quigley (University of California, Berkeley)
    Abstract: We consider the parallel developments in the economics of agglomeration and the economics of networks. We explore the complentarities between the productivity benefits of agglomeration and those of network linkages, arguing that networks of actors dispersed over space may substitute for agglomerations of actors at a single point.
    Date: 2006–06–27
    URL: http://d.repec.org/n?u=RePEc:cdl:bphupl:1053&r=geo
  27. By: John Quigley (University of California at Berkeley)
    Date: 2006–06–27
    URL: http://d.repec.org/n?u=RePEc:cdl:bphupl:1012&r=geo
  28. By: John Quigley (University of California, Berkeley)
    Abstract: (no abstract available)
    Keywords: Housing, Housing Market, Housing markets,
    Date: 2006–06–27
    URL: http://d.repec.org/n?u=RePEc:cdl:bphupl:1054&r=geo
  29. By: Tuomas Louhela
    Abstract: When interregional trade flows were estimated in Finland for the year 1996 the survey was sent to almost 10,000 establishments in manufacturing, construction and service industries. In the regional input-output project for the year 2002 time consuming survey was replaced by integrating commodity and freight statistics. This freight flow method was used for the years 1996 and 2002 to calculate trade flows for Finnish regions. The estimation results were then compared to the survey’s trade flow information. Estimations were also made for these years by the gravity approach to increase the knowledge how this traditional method works on the regional level. According to the research results the survey approach and the freight flow and gravity models estimated the order of the flows in the same way for 1996, but the freight flow model underestimated trade between smaller regions. When single flows were compared, the results of the gravity approach differed greatly from the flows gained by the other two methods. The freight flow approach, however, had also a limitation: the data. As commodity statistics do not cover all sale, service and primary products, flows of those goods are still unsolved. The next step in the input-output project is to correct this limitation and sharpen up the picture of the regions’ production structure and sales volume.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p114&r=geo
  30. By: Alina Mihaela Popescu; Peter Friedrich; Gunther Wonnemann
    Abstract: The authors determine the income effects, employment effects, production effects, migration effects as well as the budget effects and effects concerning social insurances. These effects concern the city of Munich, the hinterland, other municipalities, Bavaria, other states and the federation. The so-called “Taxonomic Localization Approach for Public Offices“ is applied. The model for identifying the effects considers the characteristics of the games and of the Munich region. Direct effects are related to economic units directly involved in the World Cup™ games. Indirect effects concern the reaction of economic units which are not part of the project, e.g. hotels in Munich. A project includes the effects of the visitors and accompanying persons, of journalists, of a media centre, of FIFA-congresses and of special social events related to the games organized by the city of Munich. In addition, activities of fan-shops, restaurants, service and marketing companies, of the FIFA, the firm operating the stadium influence the size of the effects. The effects are estimated for the year 2006. In Munich, the effects on income, employment, and production turn out considerable high. The budget effects to the city of Munich are also positive. These are going to be positive for the hinterland and the social insurance, too. The size of the effects depend mainly on the visitors and journalists as well as on their expenses. Positive effects caused by the World Cup™ games in Munich compensate the losses of other regions. Moreover, the business and financial conditions of the stadium, the intergovernmental horizontal and vertical fiscal relations, the characteristics of the regional economy, number of visitors, etc. determine the effects. Public relation effects for Munich, social and political effects and promotion of sports occur, but are not considered here.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p115&r=geo
  31. By: Rosa Sanchis-Guarner; Enrique Lopez-Bazo
    Abstract: The New Economic Geographhy (NEG) models explain the formation and the consolidation of economic agglomerations through a self-sustained process in which a trade-off between centripetal and centrifugal forces takes place. The centripetal forces work through two mechanisms: those known as the backward and the forward linkages. The latter mechanism predicts that workers will be attracted towards economic agglomerations by higher real wages due to smaller price indexes in those regions with greater market potential. Recent contributions have tried to assess this assumption simultaneously estimating some of the structural coefficients of the NEG models. Nevertheless, in all these cases, migrants have been considered to be homogenous. Conversely, the basic hypothesis of this paper suggests that the effect of the market potential on the probability of migrating depends on the human capital level of the workers. The introduction of this assumption is consistent with previous empirical evidence that shows that human capital increases the probability of migration of the workers, accentuating the opportunity cost of not migrating. In agreement with the predictions derived from our theoretical model, the results obtained for the inter-provincial migrations in Spain in the two last decades confirm that qualified workers are more sensible to regional differences in market potential.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p120&r=geo
  32. By: Harry Holzer (Public Policy Institute, Georgetown University); John Quigley (University of California at Berkeley); Steven Raphael (Goldman School of Public Policy, University of California at Berkeley)
    Abstract: A recent expansion of the San Francisco Bay Area's heavy rail system represents an exogenous change in the accessibility of inner-city minority communities to a concentrated suburban employment center. We evaluate this natural experiment by conducting a two-wave longitudinal survey of firms, with the first wave of interviews immediately prior to the opening of service and the second wave approximately a year later. We compare within-firm changes in the propensity to hire minority workers for firms located near the station to those located further away, and we also estimate the effect of employer distance to the new stations on changes in propensity to hire minorities. Our results indicate a sizable increase in the hiring of minority workers, particularly Latinos, near the new stations.
    Date: 2006–06–27
    URL: http://d.repec.org/n?u=RePEc:cdl:bphupl:1020&r=geo
  33. By: Roland Andersson (Royal Institute of Technology, Sweden); John Quigley (University of California, Berkeley); Mats Wilhelmsson (Royal Institute of Technology, Sweden)
    Abstract: During the past fifteen years, Swedish government policy has decentralized post-secondary education throughout the country. We investigate the economic effects of this decentralization policy on the level of productivity and innovation and their spatial distribution in the Swedish economy. We analyze productivity, measured as output per worker at the level of the locality, for 284 Swedish communities during a 14 year period, and innovation, measured by commercial patents awarded in 100 Swedish labor market areas during an 8 year period. These economic outcomes, together with data documenting the decentralization of university-based researchers, permit us to estimate the effects of exogenous changes in educational policy upon increases in productivity and the locus of innovative activity. We find important and significant effects of this policy upon economic output and the locus of knowledge production, suggesting that the decentralization has affected regional development through local innovation and increased creativity. Moreover, our evidence suggests that aggregate productivity was increased by the deliberate policy of decentralization.
    Date: 2006–07–13
    URL: http://d.repec.org/n?u=RePEc:cdl:bphupl:1068&r=geo
  34. By: Stephen Redding; Daniel Sturm
    Abstract: This paper exploits the division of Germany after the Second World War and the re-unification of East and West Germany in 1990 as a natural experiment to provide evidence of the importance of market access for economic development. In line with a standard new economic geography model, we find that following division cities in West Germany that were close to the new border between East and West Germany experienced a substantial decline in population growth relative to other West German cities. We provide several pieces of evidence that the decline of the border cities can be entirely accounted for by their loss in market access and is neither driven by differences in industrial structure nor differences in the degree of war related destruction. Finally, we also find some first evidence of a recovery of the border cities after the re-unification of East and West Germany
    Keywords: economic geography, market access, german division
    JEL: F15 N94 O18
    Date: 2006–12–03
    URL: http://d.repec.org/n?u=RePEc:red:sed006:283&r=geo
  35. By: Stephen L. Ross (University of Connecticut); Yves Zenou (Research Institute of Industrial Economics, Stockholm)
    Abstract: Recent theoretical work has examined the spatial distribution of unemployment using the efficiency wage model as the mechanism by which unemployment arises in the urban economy. This paper extends the standard efficiency wage model in order to allow for behavioral substitution between leisure time at home and effort at work. In equilibrium, residing at a location with a long commute affects the time available for leisure at home and therefore affects the trade-off between effort at work and risk of unemployment. This model implies an empirical relationship between expected commutes and labor market outcomes, which is tested using the Public Use Microdata sample of the 2000 U.S. Decennial Census. The empirical results suggest that efficiency wages operate primarily for blue collar workers, i.e. workers who tend to be in occupations that face higher levels of supervision. For this subset of workers, longer commutes imply higher levels of unemployment and higher wages, which are both consistent with shirking and leisure being substitutable.
    Keywords: Efficiency wage, leisure, urban unemployment
    JEL: J41 R14
    Date: 2006–11
    URL: http://d.repec.org/n?u=RePEc:uct:uconnp:2006-21&r=geo

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