nep-geo New Economics Papers
on Economic Geography
Issue of 2014‒03‒30
seven papers chosen by
Andreas Koch
Institute for Applied Economic Research

  1. Counterfactual Spatial Distributions By Paul E. Carrillo; Jonathan Rothbaum
  2. Growing through cities in developing countries By Duranton, Gilles
  3. Immigration and Location Choices of Native-Born Workers in Canada By Aydede, Yigit
  4. A spatial econometric approach to spillover effects between protected areas and deforestation in the Brazilian Amazon By Ariane Manuela AMIN; Johanna Choumert; Pascale Combes Motel; Jean-Louis Combes; Eric Nazindigouba KERE; Jean Galbert ONGONO OLINGA; Sonia Schwartz
  5. Sports and Regional Growth in Sweden - Is a successful professional sports team good for regional economic growth? By Värja, Emelie
  6. Internal and External Effects of R&D Subsidies and Fiscal Incentives: Empirical Evidence Using Spatial Dynamic Panel Models By Benjamin Montmartin; Marcos Herrera
  7. Nouvelles centralités, choix modal et politiques de déplacements " 2.0 " : Le cas Nantais By Rémy Le Boennec

  1. By: Paul E. Carrillo (Department of Economics/Institute for International Economic Policy, George Washington University); Jonathan Rothbaum (Development Research Group, The World Bank)
    Abstract: The influential contributions of DiNardo, Fortin, and Lemieux (1996), Firpo, Fortin, and Lemieux (2009), Machado and Mata (2005), and Donald, Green, and Paarsch (2000) provide researchers with a useful toolbox to estimate counterfactual distributions of scalar random variables. These techniques have been widely applied in the literature. Typically, the dependent variable of interest has been a scalar and little consideration has been given to spatial factors. In this paper we propose a simple method to construct the counterfactual distribution of the location of a variable across space. We apply the spatial counterfactual technique to assess 1) how much changes in individual characteristics of Hispanics in the Washington, DC, area account for changes in the distribution of their residential location choices, and 2) how changes in the average characteristics of shareholders account for changes in the spatial distribution of new firms in Quito, Ecuador.
    Keywords: Decomposition; Non-parametric Estimation
    JEL: C14 R23 R30
    Date: 2014–03
    URL: http://d.repec.org/n?u=RePEc:gwi:wpaper:2014-05&r=geo
  2. By: Duranton, Gilles
    Abstract: This paper examines the effects of urbanization on development and growth. It begins with a labor market perspective and emphasizes the importance of agglomeration economies, both static and dynamic. It then argues that more productive jobs in cities do not exist in a void and underscores the importance of job and firm dynamics. In turn, these dynamics are shaped by the broader characteristics of urban systems. A number of conclusions are drawn. First, agglomeration effects are quantitatively important and pervasive. Second, the productive advantage of large cities is constantly eroded and must be sustained by new job creation and innovation. Third, this process of creative destruction in cities, which is fundamental for aggregate growth, is determined in part by the characteristics of urban systems and broader institutional features. The paper highlights important differences between developing countries and more advanced economies. A major challenge for developing countries is to reinforce the role of their urban systems as drivers of economic growth.
    Keywords: City Development Strategies,Transport Economics Policy&Planning,Labor Policies,National Urban Development Policies&Strategies,Urban Housing and Land Settlements
    Date: 2014–03–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6818&r=geo
  3. By: Aydede, Yigit
    Abstract: There are two competing views on how immigration would affect local labor markets. When immigrants offer skills similar to those of native-born workers, they may compete directly with them, and this competition may lead to lower economic returns for native-born workers. This view can be called the “substitution†hypothesis. The alternative view is that immigrants may provide “complementary†skills, which can raise the productivity of other workers. If the substitution argument is effective, immigration might lead to out-migration of the nonimmigrant population from a community in the short run. Models in location-choice studies usually examine the migration decision in two separate processes: whether-to and where-to decisions about moving. The present study investigates how location choices of native-born workers can be influenced by the conditions in both the potential destinations and the departure regions. To validate either the substitution or complementary view, we apply choice-specific, clustered fixed-effect response models, which use industry- and occupation-specific regional attributes that allow us to control for unobserved regional heterogeneity as well as to identify regional factors that affect location choices. This study uses the 20 percent sample of the 2006 Census that covers the entire country with 282 census divisions. The results show that location-choice models are sensitive to how regional attributes are defined. When industry-specific immigration density differentials across regions are measured only at destinations, they have strong and negative effects on the location choices of the native born. However, when the models control choice-specific attributes relative to the origin, immigration variables become insignificant on the desirability of destinations.
    Keywords: Immigration, Migration, Crowding Out, Displacement, Mobility
    JEL: J61 J15 R23
    Date: 2014–03–26
    URL: http://d.repec.org/n?u=RePEc:ubc:clssrn:clsrn_admin-2014-12&r=geo
  4. By: Ariane Manuela AMIN (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Johanna Choumert (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Pascale Combes Motel (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Jean-Louis Combes (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Eric Nazindigouba KERE (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Jean Galbert ONGONO OLINGA (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Sonia Schwartz (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)
    Abstract: Protected areas are increasingly used as a tool to fight against deforestation. This paper presents new evidence on the spillover effects that occur in the decision to deforest and the creation of protected areas in local administrative entities in Brazilian Legal Amazon over the 2001-2011 period. We also highlight the interdependence between these two decisions. We proceed in two steps. First, we assumed that protected areas are created to stop the negative effects of deforestation on biodiversity. In order to control for the non-random location of protected areas, biodiversity indicators are used as excluded instruments. This model is estimated using a spatial model with instrumental variables. Second, a simultaneous system of spatially interrelated cross sectional equations is used to take into account the interdependence between the decision to deforest and the creation of protected areas. Our results show (i) that deforestation activities of neighboring municipalities are complements and that (ii) there is evidence of leakage in the sense that protected areas may shift deforestation to neighboring municipalities. The net effect of protected areas on deforestation remains however negative; it is moreover stable across two sub-periods. Our results confirm the important role of protected areas to curb deforestation and thereby biodiversity erosion. Moreover, they show that strategic interactions deserve attention in the effectiveness of conservation policies.
    Keywords: Protected areas; deforestation; spatial interactions; simultaneous equations; Brazil; Amazon
    Date: 2014–03–18
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00960476&r=geo
  5. By: Värja, Emelie (Örebro University School of Business)
    Abstract: This study investigates whether net inbound migration and per capita income growth of a municipality is affected when a local sports team enters or exits the premium national leagues in ice hockey or soccer in Sweden. Local governments frequently support a local professional team through direct subsidies; beneficial funding of arenas, etc., which often is motivated by alleged, positive externalities through effects on the attractiveness of the municipality as a leisure-travel destination, or place for living or doing business, which ultimately is supposed to enhance the tax base and the tax revenues of the local government. Previous literature on such effects is based on simple models estimated on a selected sample of cities and without consideration of spatial interdependencies between local areas. We carry out a simultaneous estimation of spatial paneldata models of income per capita growth and net migration rates using annual data from all Swedish municipalities from 1995-2011 (except for four municipalit that have changed borders). With this richer modeling framework we still find no evidence of a positive relationship from performance of a local team on any of these two variables.
    Keywords: sports; growth; spatial econometrics; regional growth
    JEL: H71 J61 L83
    Date: 2014–03–21
    URL: http://d.repec.org/n?u=RePEc:hhs:oruesi:2014_003&r=geo
  6. By: Benjamin Montmartin (GREDEG CNRS; University of Nice Sophia Antipolis, France); Marcos Herrera (CONICET - IELDE; National University of Salta, Argentina)
    Abstract: Most studies evaluating the macroeconomic effects of financial support policies on business-funded R&D use econometric methods that do not consider the existence of spatial effects, and generate biased estimates. In this paper, we discus and address this problem using spatial dynamic panel data methods. This allow us to provide new insights on the internal (in-country) and external (out-of-country) effects of both Research and Development (R&D) subsidies and fiscal incentives. We use a database of 25 OECD countries for the period 1990-2009. In relation to internal effects, for both instruments, we find a non-linear relationship between their effect on private R&D and their level (suggesting the possibility of leveraging and crowding-out effects). We also find a substitution effect between the R&D subsidies and fiscal incentives implemented within a country. Concerning the spatial component, we find evidence of positive spatial spillovers among private R&D investments. However, our results suggest the existence of competition/substitution effects between national R&D policies.
    Keywords: Direct and Indirect support, Business-funded R&D, Complementarity, Dynamic spatial panel data
    JEL: H25 O31 O38
    Date: 2014–03
    URL: http://d.repec.org/n?u=RePEc:gre:wpaper:2014-09&r=geo
  7. By: Rémy Le Boennec (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272)
    Abstract: Dans cet article empirique fondé sur les choix micro-économiques des ménages, nous utilisons la méthode des prix hédoniques pour définir la forme urbaine de Nantes Métropole. Le nombre de centralités doit orienter la deuxième génération de politiques de déplacements des agglomérations soumises à la loi LAURE. Ainsi, si des gains d'accessibilité sont capitalisés dans les valeurs immobilières près des transports collectifs, alors le renforcement de l'actuelle politique incitative au bénéfice des réseaux collectifs et des modes doux paraît indiqué pour continuer à limiter les externalités négatives provoquées par les déplacements automobiles en milieu urbain. En revanche, si ces gains d'accessibilités sont capitalisés près des principaux axes routiers, alors une politique plus contraignante, de type péage urbain, pourra prendre le relais : elle dégagera les recettes nécessaires à l'amélioration ultérieure du réseau de transport collectif. En réalité, le modèle économétrique à erreur spatiale (SEM) révèle que la situation de Nantes ne semble correspondre ni à l'un, ni à l'autre de ces cas de figure. En accord avec la littérature théorique, une action sur les coûts de déplacement provoquerait néanmoins une plus forte demande de centralité par les acquéreurs de maison. C'est donc une politique préalable de maîtrise foncière et de densification de l'espace en tout point de la ville, couplée à une étude d'opportunité sur la mise en place d'un péage urbain, qui pourrait constituer l'élément majeur de la politique environnementale locale.
    Keywords: Polycentrisme; accessibilité; choix modal; méthode des prix hédoniques; économétrie spatiale.
    Date: 2014–03–13
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00958700&r=geo

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