nep-geo New Economics Papers
on Economic Geography
Issue of 2006‒07‒15
nine papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Advanced estimates of regional accounts: an alternative approach by spatial panels By Riccardo Corradini
  2. Immigration and Housing Rents in American Cities By Albert Saiz
  3. Rural Population Growth in Sweden in the 1990s: Unexpected Reality or Spatial-Statistical Chimera By Amcoff, Jan
  4. Health as a factor in regional economic development By Malmberg, Bo; Andersson, Eva
  5. Regional Inflation Dynamics within and across Euro Area and a Comparison with the US By Guenter Beck; Kirstin Hubrich
  6. Efficient estimation of the semiparametric spatial autoregressive model By Peter Robinson
  7. A regional typology of innovation capacities in new member states and candidate countries. By Emmanuel MULLER; Arlette JAPPE; Jean-Alain HERAUD; Andrea ZENKER
  8. Taxes, Government Expenditures, and State Economic Growth: The Role of Nonlinearities By Niel Bania; Jo Anna Gray; Joe Stone
  9. Understanding rural change - demography as a key to the future By Amcoff, Jan; Westholm, Erik

  1. By: Riccardo Corradini (Department of Economic Theory Faculty of Political Sciences)
    Keywords: spatial panel data models, regional accounts
    JEL: C21 C22 C23
    Date: 2006–07–04
  2. By: Albert Saiz (Wharton School, University of Pennsylvania and IZA Bonn)
    Abstract: Is there a local economic impact of immigration? Immigration pushes up rents and housing values in US destination cities. The positive association of rent growth and immigrant inflows is pervasive in time series for all metropolitan areas. I use instrumental variables based on a "shift-share" of national levels of immigration into metropolitan areas. An immigration inflow equal to 1% of a city’s population is associated with increases in average rents and housing values of about 1%. The results suggest an economic impact that is an order of magnitude bigger than that found in labor markets.
    Keywords: immigration, housing prices
    JEL: J61 R23 R31
    Date: 2006–06
  3. By: Amcoff, Jan (Institute for Futures Studies)
    Abstract: Though estimating rural population change at first glance seems simple, it in fact involves methodological difficulties and requires the accommodation of definitional ambiguities. This article addresses the matter of urban spillover in rural population development. Simply stated, "urban spillover" here refers to how urban localities tend to push a ring of diffuse urban growth outwards as they expand in area. If constant delimitations of urban localities and rural areas are employed, their definitions will de facto change, and what is actually diffuse urban growth will be treated as rural. If the spatial areas used are constructed from predefined areas (e.g. census enumeration areas), the effect of arbitrary geographical subdivision is added. These effects of urban spillover in different methods of estimating rural population change are illustrated here using Swedish data, which are suitable for this purpose given their high spatial resolution. The data do not support the existence of any actual rural population growth in Sweden in the 1990s, apart from the effects of urban spillover. We also show that urban spillover varies geographically depending on the measurement method used.
    Keywords: urban spillover; urban localities; counterurbanisation; reclassification; rural population
    JEL: R00
    Date: 2005–12
  4. By: Malmberg, Bo (Institute for Futures Studies); Andersson, Eva (Institute for Housing and Urban Research (IBF))
    Abstract: Is health a forgotten factor in regional economic development? The health or ill health of the European workforce is a crucial issue as the share of old age people as well as the mean age increases. A second reason for this paper is the increased interest in the relation between health and productivity of businesses. Ill health might in this respect be a factor of severe disadvantage for regions to improve their economic performance. A third motive is policy considerations; policies directed to reduce ill health could be considered as an important tool in regional development. In order to explore health as a factor for regional economic development in Sweden we used regional as well as micro level data. The results consistently highlight health as an important determinant of regional economic performance. It is first revealed through a strong correlation in regional data between health levels and economic performance. Healthy municipalities generally have a stronger local economy than those characterised by ill health. In addition a negative effect of ill health is demonstrated in Swedish micro data. In case of sickness in our control group, both the individuals themselves, their spouses, children and colleagues are negatively affected.
    Keywords: health; regional economic development; Sweden; sickness benefit; unemployment
    JEL: I10 R11 R13
    Date: 2006–04
  5. By: Guenter Beck (Goethe University Frankfurt); Kirstin Hubrich
    Keywords: regional inflation dynamics, euro area and US, common factor models
    JEL: E31 E52
    Date: 2006–07–04
  6. By: Peter Robinson (Institute for Fiscal Studies and London School of Economics)
    Abstract: Efficient semiparametric and parametric estimates are developed for a spatial autoregressive model, containing non stochastic explanatory variables and innovations suspected to be non-normal. The main stress is on the case of distribution of unknown, nonparametric, form, where series non parametric estimates of the score function are employed inadaptive estimates of parameters of interest. These estimates are as efficient as ones based on a correct form, in particular they are more effcient than pseudo-Gaussian maximum likelihood estimates at non-Gaussian distributions. Two different adaptive estimates are considered.Oneentailsastringentcondition on the spatial weight matrix,and is suitable only when observations have substantially many "neighbours". The other adaptive estimate relaxes this requirement, at the expense of alternative conditions and possible computational expense.A Monte Carlo study of finite sample performance is included.
    Keywords: Spatial autoregression; Efficient estimation; Adaptive estimation; Simultaneity bias.
    JEL: C13 C14 C21
    Date: 2006–05
  7. By: Emmanuel MULLER; Arlette JAPPE; Jean-Alain HERAUD; Andrea ZENKER
    Date: 2006
  8. By: Niel Bania (University of Oregon Department of Planning, Public Policy, and Management); Jo Anna Gray (University of Oregon Economics Department); Joe Stone (University of Oregon Economics Department)
    Abstract: BarroÕs (1990) model of endogenous growth implies that economic growth will initially rise with an increase in taxes directed toward ÒproductiveÓ expenditures (e.g., education, highways, and streets), but will subsequently decline. Previous tests of the model, including Barro (1989, 1990) and recently Bleaney et al (2001), focus on whether the linear incremental effect of taxes is positive, negative, or zero, with substantial evidence for all three conclusions. In this study, we test for nonlinearity directly by incorporating nonlinear effects for taxes, and based on U.S. states find that the incremental effect of taxes directed toward productive government expenditures is initially positive, but eventually declines. U.S. states on average appear to under invest in expenditures on productive government activities.
    Date: 2006–06–01
  9. By: Amcoff, Jan (Institute for Futures Studies); Westholm, Erik (Institute for Futures Studies)
    Abstract: The last decades have seen a rapidly growing interest in foresight methodology. Methods have been developed in corporate and governmental communication exercises often labelled technology foresight. In reality, these foresights have often drifted into processes of social change, since technological change is hard to foresee beyond what is already in the pipe-line. Forecasting of social change, however, must be based on solid knowledge about the mechanisms of continuity and change. Virtually nothing can be said about the future without relating to the past; foresights and futures studies are about revealing the hidden pulse of history. Hence, the answer to forecasting the future is empirical research within the social sciences. <p> Demographic change has been recognised as a key determinant for explaining social change. Population changes are fairly predictable and the age transition can explain a wide range of socio-economic changes. For rural futures, demographic change is a key issue, since age structure in rural areas is often uneven and also unstable due to migration patterns. A number of policy related questions as well as research challenges are raised as a consequence.
    Keywords: demographic change; rural futures
    JEL: R11 R23
    Date: 2006–04

This nep-geo issue is ©2006 by Vassilis Monastiriotis. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.