nep-geo New Economics Papers
on Economic Geography
Issue of 2006‒12‒22
six papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Exploring the Detailed Location Patterns of UK Manufacturing Industries Using Microgeographic Data By Gilles Duranton; Henry G. Overman
  2. Assessing the Effects of Local Taxation Using Microgeographic Data By Gilles Duranton; Laurent Gobillon; Henry G. Overman
  3. Employment Effects of Spatial Dispersal of Refugees By Anna Piil Damm; Michael Rosholm
  4. Fat City: The Relationship Between Urban Sprawl and Obesity By Jean Eid; Henry G. Overman; Diego Puga; Matthew Turner
  5. The effects of public capital on the productivity of the Italian regions By Emanuela Marrocu; Raffaele Paci
  6. Owners of Developed Land versus Owners of Undeveloped Land: Why Land Use is More Constrained in the Bay Area than in Pittsburgh By Christian Hilber; Frédéric Robert-Nicoud

  1. By: Gilles Duranton; Henry G. Overman
    Abstract: We use a point-pattern methodology to explore the detailed location patterns of UKmanufacturing industries. In particular, we consider the location of entrants and exitersvs. continuing establishments, domestic- vs. foreign-owned, large vs. small, and affiliatedvs. independent. We also examine co-localisation between vertically linked industries.Our analysis provides a set of new stylised facts and confirmation for others.
    Keywords: Localisation, Location patterns, clusters, K-density, spatial statistics
    JEL: C19 R12 L70
    Date: 2006–10
  2. By: Gilles Duranton; Laurent Gobillon; Henry G. Overman
    Abstract: We study the impact of local taxation on the location and growth of firms. Our empirical methodology pairs establishments across jurisdictional boundaries to estimate the impact of taxation. Our approach improves on existing work as it corrects for unobserved establishment heterogeneity, for unobservedtime-varying site specific effects, and for the endogeneity of local taxation. Applied to data for English manufacturing establishments we find that local taxation has a negative impact onemployment growth, but no effect on entry.
    Keywords: Local taxation, spatial differencing, borders
    JEL: H22 H71 R38
    Date: 2006–08
  3. By: Anna Piil Damm (CAM and Department of Economics, Aarhus School of Business); Michael Rosholm (Department of Economics, Aarhus School of Business)
    Abstract: We argue that spatial dispersal policies on refugees and asylum seekers influence labour market assimilation of refugees through two mechanisms: first, the local job offer arrival rate and, second, place utility. Our partial search model with simultaneous job and residential location search predicts that the reservation wage for local jobs decreases with place utility. We argue that spatial dispersal decreases average place utility of refugees which decreases the transition rate into first job due to large local reservation wages. We investigate both mechanisms empirically and test the predictions of the theoretical model by evaluating the employment effects of the Danish spatial dispersal policy carried out 1986-1998.
    Keywords: Migration,
    Date: 2006–06
  4. By: Jean Eid; Henry G. Overman; Diego Puga; Matthew Turner
    Abstract: We study the relationship between urban sprawl and obesity. Using data that tracks individuals over time, we find no evidence that urban sprawl causes obesity. We show that previous findings of a positive relationship most likely reflect a failure to properly control for the fact the individuals who are more likely to be obese choose to live in more sprawling neighborhoods. Our results indicate that current interest in changing the built environment to counter the rise in obesity is misguided.
    Keywords: Urban sprawl, obesity, selection effects
    JEL: I12 R14
    Date: 2006–11
  5. By: Emanuela Marrocu; Raffaele Paci
    Abstract: This paper investigates on the role played by public capital in increasing the productivity levels in Italy. For the construction of the regional series for the public capital stock over the period 1996-2003, the study benefits from the use of the rich dataset on public expenditure, recently published by the Italian Ministry of Economy. We have estimated panel production functions with the inclusion of traditional factors and also intangible inputs like R&D expenditure, human capital and social capital. The results point out that public capital has a positive and significant effect on production. Moreover, the effects of all production factors vary considerably between the two macro-areas of the country, namely Centre-North and Mezzogiorno. More specifically, while private capital is more effective in the South, labour and public capital exhibits an elasticity much higher in the Centre-North with respect to the Mezzogiorno. The disaggregation of the public capital stock into economic categories indicates a significant different impact in the two macro-areas. When the analysis is carried out by distinguishing among government levels it turns out that the decentralized administrative bodies are much less efficient in the South in delivering public expenditure.
    Keywords: public capital, production function, regional disparities, Italy
    JEL: D24 H54 O47 R11 C23
    Date: 2006
  6. By: Christian Hilber; Frédéric Robert-Nicoud
    Abstract: We model residential land use constraints as the outcome of a political economy game between owners of developed and owners of undeveloped land. Land use constraints are interpreted as shadow taxes that increase the land rent of already developed plots and reduce the amount of new housing developments. In general equilibrium, locations with nicer amenities are more developed and, as a consequence, more regulated. We test our model predictions by geographically matching amenity, land use, and historical Census data to metropolitan area level survey data on regulatory restrictiveness. Following the predictions of the model, we use amenities as instrumental variables and demonstrate that metropolitan areas with better amenities are more developed and more tightly regulated than other areas. Consistent with theory, metropolitan areas that are more regulated also grow more slowly.
    Keywords: Land use regulations, zoning, land ownership, housing supply
    JEL: H7 Q15 R52
    Date: 2006–11

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