nep-geo New Economics Papers
on Economic Geography
Issue of 2006‒09‒11
six papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Agglomeration Economies and Entrepreneurship in the ICT Industry By Oort, F.G. van; Stam, E.
  2. A Stochastic Theory of Geographic Concentration and the Empirical Evidence in Germany By T. Brenner
  3. A Process Model of Locational Change in Entrepreneurial Firms: An Evolutionary Perspective By Stam, E.
  4. Dimensions of urban poverty in the Europe and Central Asia region By Infrastructure Department, Europe and Central Asia Region
  5. The Impact of Internal Migration on Married Couples’ Earnings in Britain, with a Comparison to the United States By McKinley L. Blackburn
  6. The Impact of Hurricanes Katrina, Rita and Wilma on Business Establishments: A GIS Approach By Javier Miranda; Ron Jarmin

  1. By: Oort, F.G. van; Stam, E. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: In this study indicators of agglomeration economies and their effect on entrepreneurship in the ICT industry are analysed in diverse urban contexts. Agglomeration economies have a stronger impact on new firm formation than on the growth of incumbent firms. Concentration and diversity both have a positive effect on new firm formation as well as on the growth of incumbent firms, while competition only has a positive effect on new firm formation. It is especially the effects of industrial diversity that are revealed to be sensitive to urban contexts: positive effects on new firm formation are attached to the connected cities and to the highly urbanized Randstad, and positive effects on firm growth to the intermediate zone, the connected cities and urban municipalities.
    Keywords: Entrepreneurship;Location;Agglomeration Economies;Spatial Externalities;Urban Regimes;ICT Iindustry;
    Date: 2006–03–29
  2. By: T. Brenner
    Abstract: A stochastic model of the evolution of the firm population in a region and industry is developed. This model is used to make predictions about the expected probability distribution of the firm number in regions and their dynamics. Data on the spatial distribution of firms in Germany is used to check the predictions and estimate the parameters of the model. This is done for 196 industries separately.
    Keywords: geographic concentration, industry dynamics, local clusters, empirical methodology.
    JEL: C12 L60 R12
    Date: 2006–09
  3. By: Stam, E. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: How do changes in the spatial organization of entrepreneurial firms come about? This paper provides a conceptualisation of the process of locational change. A process model of locational change is constructed on the basis of an empirical study of 109 locational events during the life course of 25 young firms in knowledge intensive sectors (knowledge services and biomedicals). This process model of locational change maps both internal and external variation and selection processes. This model contributes to the development of a causal process theory of the spatial development of (new) firms.
    Keywords: Location;Entrepreneurial Firms;Evolutionary Theory;Decision-Making;Process Models;
    Date: 2006–03–27
  4. By: Infrastructure Department, Europe and Central Asia Region
    Abstract: The objective of this study is to contribute to a better understanding of the extent and nature of poverty in urban areas in transition countries in Eastern Europe and the former Soviet Union, providing particular attention to the disparities within urban areas between capital cities and secondary cities, and focusing on dimensions of poverty related to provision of network infrastructure and energy services in cities. Household surveys carried out in 1998-2003 in 20 countries provided the data for the study. The study found substantial differences in urban areas between the capital and secondary cities, with households in secondary cities being worse off. In addition, secondary cities often had poverty indicators equivalent to, or worse than, those of rural areas, including in terms of access and quality (reliability) of infrastructure. The study confirmed that many households, especially in secondary cities, are " infrastructure-poor " because of unreliable and deteriorated services and that these households are hidden in studies that do not examine actual quality. Finally, the study found that income and infrastructure inequality are generally higher in urban areas, although inequality in secondary cities often was greater than that in the capitals.
    Keywords: Population Policies,Rural Poverty Reduction,City Development Strategies,Urban Poverty,Transport Economics Policy & Planning
    Date: 2006–08–01
  5. By: McKinley L. Blackburn (University of South Carolina)
    Abstract: Previous studies have often suggested that wives experience a decline in labor-market fortunes after an internal migration of a married couple. This evidence is consistent with wives being “tied movers” on average. I use the British Household Panel Survey to consider the extent to which wives’ earnings change systematically following a change in economic location for married couples within Britain. The results provide little evidence that a migration event is associated with increased earnings for husbands. On the other hand, there is some suggestion that wives’ earnings fall after a change in location, with most of this fall due to a decline in weeks of work for wives. This evidence is sensitive to the definition of a change in location, with the largest evidence of a negative effect on earnings arising when long-distance moves of more than 50 kilometers are examined. A comparison to evidence from the United States suggests the effects may be similar in the two countries, and do not provide statistical support for the notion that the lower migration rates in Britain are associated with greater benefits to migration than in the United States.
    Date: 2006–05
  6. By: Javier Miranda; Ron Jarmin
    Abstract: We use Geographic Information System tools to develop estimates of the economic impact of disaster events such as Hurricane Katrina. Our methodology relies on mapping establishments from the Census Bureau’s Business Register into damage zones defined by remote sensing information provided by FEMA. The identification of damaged establishments by precisely locating them on a map provides a far more accurate characterization of affected businesses than those typically reported from readily available county level data. The need for prompt estimates is critical since they are more valuable the sooner they are released after a catastrophic event. Our methodology is based on pre-storm data. Therefore, estimates can be made available very quickly to inform the public as well as policy makers. Robustness tests using data from after the storms indicate our GIS estimates, while much smaller than those based on publicly available county-level data, still overstate actual observed losses. We discuss ways to refine and augment the GIS approach to provide even more accurate estimates of the impact of disasters on businesses.
    Keywords: Natural Disaster, Economic Impact, Economic Activity, Business Register
    JEL: Q54 R11 C13 C81 O47
    Date: 2006–08

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