nep-geo New Economics Papers
on Economic Geography
Issue of 2006‒01‒29
ten papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Spatial Externalities and Empirical Analysis: The case of Italy By Giuseppe De Arcangelis; Giordano Mion
  2. Knowledge Capital as the Source of Growth By Hannu Piekkola
  3. The Regional Distribution of Professional Competence in Finland By Anni Heikkilä
  4. Accessibility and Industrial Location. Some Evidence from Spain By Angel Alañón; Josep Maria Arauzo Carod
  5. Russian Regions and Their Foreign Trade By Sergey Sutyrin; Vladimir Sherov
  6. The Diffusion of Housing Price Movements from Centre to Surrounding Areas By Elias Oikarinen
  7. Is Housing Overvalued in the Helsinki Metropolitan Area? By Elias Oikarinen
  8. Simultaneous Elections and Economic Turnout in Spanish Regional Elections By Joan Costa i Font; Ricard Ramon-Sumoy
  9. Integration and Conditional Convergence in the Enlarged EU Area By Ville Kaitila
  10. Hot and Cold Housing Markets: International Evidence By Ceron, Jose A.; Suarez, Javier

  1. By: Giuseppe De Arcangelis (Dipartimento di Scienze Economiche, Universit`a degli Studi di Bari and CIDEI.); Giordano Mion (Dipartimento di Scienze Economiche, Universit`a degli Studi di Bari, and CORE and CERAS.)
    Abstract: In the last ten years the space issue, i.e. the study of the role played by space in economic phenomena, has attracted a lot of interest from many economic fields. Both the suitability of spatial economics to address questions posed by globalization, and improves in modeling techniques are at the basis of this revolution. The combination of increasing returns, market imperfections, and trade costs creates new forces that, together with factor endowments, determine the distribution of economic activities. These spatial externalities makes agents' location choice highly interdependent, thus allowing to understand the empirical spatial correlation between demand and production previously observed by the market potential literature. Despite their theoretical relevance, there is still little evidence, especially at large scale level, on the effective contribution of this new identified forces to agents' location decisions. The aim of this work is to directly estimate a model of economic geography on some Italian regional data in order to both test the empirical relevance of this theory and try to give a measure of the geographic extent of spatial externalities.
    Keywords: Economic Geography, Spatial Externalities, Market Potential
    JEL: F12 R12 R32
  2. By: Hannu Piekkola
    Keywords: regional growth, endogenous growth, catching-up, technology transfer
    JEL: O30 O40 O52 R11
    Date: 2005–03–18
  3. By: Anni Heikkilä
    Date: 2004–12–21
  4. By: Angel Alañón; Josep Maria Arauzo Carod
    Abstract: During the 1990s an intense programme of high capacity road construction was carried out in the Spanish road network. This considerably improved accessibility to municipalities. The aim of this paper is to determine whether this greater accessibility has had positive effects on the creation of industrial establishments. We analyze the location decisions of firms at a municipality level and in 2-digit manufacturing industries (11 industries). The main contributions of this paper are the variables and econometric techniques we use. As well as the usual variables, such as specialization or the diversification of the labour force, we use more innovative variables such as local added value, road accessibility, and the characteristics of firms in neighbouring municipalities. Our econometric techniques are space models with discrete dependent variables.
  5. By: Sergey Sutyrin; Vladimir Sherov
    Keywords: Russia, regional diversity, import intensity, custom, price level, incomes and expenditures per capita
    Date: 2005–12–20
  6. By: Elias Oikarinen
    Keywords: housing, dynamics Granger causality, cointegration, regions
    Date: 2005–04–29
  7. By: Elias Oikarinen
    Keywords: housing prices, dynamics, cointegration, error-correction model, bubble
    Date: 2005–10–06
  8. By: Joan Costa i Font; Ricard Ramon-Sumoy
    Abstract: Low voter turn-out questions the legitimacy of modern democracies in pursuing some desired goals of political inclusion and legitimacy. Yet, in examining the determinants of individuals' participation, rational voting models assume that participation in elections is an exogenous feature whereby individuals participate if the net benefits are sizeable. In this paper we argue that, in certain circumstances, turn-out might be endogenously influenced by an incumbent government that is able to decide on the election date. This holds true where incumbent politicians can potentially influence the appropriate calendar of an election. In particular, we look at the influence of simultaneity in elections on voter turnout. Furthermore, we examine the role economic variables play in influencing voter turn out (economic turnout). Our data is from Spanish regional elections between 1980-1999 and we use panel data models . We define several notions of simultaneity depending on the coincidence of regional elections with alternative election dates (municipal, national and European elections). Findings point out that simultaneity systematically increases individuals average turn-out regardless of the elections considered and that economic conditions might exert some influence in the turnout in Spanish regional elections.
  9. By: Ville Kaitila
    Keywords: EU, enlargement, economic integration, economic growth, conditional convergence
    Date: 2004–10–07
  10. By: Ceron, Jose A.; Suarez, Javier
    Abstract: This paper examines the experience of 14 developed countries for which there are about 30 years of quarterly inflation-adjusted housing price data. Price dynamics is modelled as a combination of a country-specific component and a cyclical component. The cyclical component is a two-state Markov switching process with parameters common to all countries. We find that the latent cyclical variable captures previously undocumented changes in the volatility of real housing price increases. These volatility phases are quite persistent (about six years, on average) and occur with about the same unconditional frequency over time. In line with previous studies, the mean of real housing price increases can be predicted to be larger when lagged values of those increases are large, real GDP growth is high, unemployment falls, and interest rates are low or have declined. Our findings have important implications for risk management in regard to residential property markets.
    Keywords: cycles; housing prices; Markov switching; volatility
    JEL: E32 G15 R31
    Date: 2006–01

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