nep-geo New Economics Papers
on Economic Geography
Issue of 2007‒05‒26
six papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Regional Convergence and The Causal Impact of Migration on Regional Growth Rates By Murat G. Kirdar; D. Sirin Saracoglu
  2. Politiques de développement et croissance régionale en Europe : le rôle des rendements croissants et des dépendances spatiales By GUILLAIN, Rachel; DALL'ERBA, Sandy; LE GALLO, Julie
  3. Determinants of House Prices: A Quantile Regression Approach. By Joachim Zietz; Emily N. Zietz; G. Stacy Sirmans.
  4. Biodiversity and Geography By Michael Rauscher; Edward B. Barbier
  6. Los efectos de la migración transnacional México-Estados Unidos en el desarrollo local y el rol de las comunidades de origen By Mariana Gabarrot; Héctor Rodríguez Ramírez

  1. By: Murat G. Kirdar (Department of Economics, METU); D. Sirin Saracoglu (Department of Economics, METU)
    Abstract: The standard growth theory predicts that allowing for labor mobility across regions would increase the speed of convergence in per capita income levels and that migration has a negative causal impact on regional growth rates. Although the empirical literature has uncovered some evidence for the former implication, the latter has not been verified empirically. This paper provides empirical evidence for the negative causal impact of migration on provincial growth rates in a developing country with a high level of internal migration that is characterized by unskilled labor exiting rural areas for urban centers. We utilize instrumental variables estimation method with an instrument unique to the country examined and also control for provincial fixed effects.
    Keywords: Regional convergence; Regional growth; Internal migration; Fixed effects; IV estimation
    JEL: O40 R23 C23
    Date: 2007–01
  2. By: GUILLAIN, Rachel (LEG - CNRS UMR 5118 - Université de Bourgogne); DALL'ERBA, Sandy (LEG - CNRS UMR 5118 - Université de Bourgogne); LE GALLO, Julie
    Abstract: This paper assesses the impact of structural funds on the manufacturing sector of 145 European regions in the context of a Verdoorn’s law for the period 1989-2004. Three main innovations are included. First, we pay attention to the nature of the cohesion objective under study. Second, the geographical linkages between regions are explicitly taken into account by using spatial econometric techniques. Third, potential endogeneity of explanatory variables is systematically checked. The results are in favour of increasing returns and of a significant but small and negative impact of funds.
    Keywords: growth, regional policy, increasing returns, Europe, spatial econometrics
    Date: 2007–02
  3. By: Joachim Zietz; Emily N. Zietz; G. Stacy Sirmans.
    Abstract: OLS regression has typically been used in housing research to determine the relationship of a particular housing characteristic with selling price. Results differ across studies, not only in terms of size of OLS coefficients and statistical significance, but sometimes in direction of effect. This study suggests that some of the observed variation in the estimated prices of housing characteristics may reflect the fact that characteristics are not priced the same across a given distribution of house prices. To examine this issue, this study uses quantile regression, with and without accounting for spatial autocorrecation, to identify the coefficients of a large set of diverse variables across different quantiles. The results show that purchasers of higher-priced homes value certain housing characteristics such as square footage and the number of bathrooms differently from buyers of lower-priced homes. Other variables such as age are also shown to vary across the distribution of house prices.
    Keywords: hedonic price function, quantile regression, spatial lag
    JEL: R31 C21 C29
  4. By: Michael Rauscher (University of Rostock and ifo Institut München); Edward B. Barbier (University of Wyoming)
    Abstract: The paper combines an economic-geography model of agglomeration and periphery with a model of species diversity and looks at optimal policies of biodiversity conservation. The subject of the paper is "natural" biodiversity, which is inevitably impaired by anthropogenic impact. Thus, the economic and the ecological system compete for space and the question arises as to how this conflict should be resolved. The decisive parameters of the model are related to biological diversity (endemism vs. redundancy of species) and the patterns of economic geography (centrifugal and centripetal forces). As regards the choice of environmental-policy instruments, it is shown that Pigouvian taxes do not always establish the optimal allocation.
    Keywords: biodiversity, new economic geography, agglomeration, species redundancy vs. endemism, environmental regulation
    JEL: Q56 Q57 Q58 R12 R14 R23
    Date: 2007
    Abstract: In this paper we evaluate whether government intervention through the public funding of business angel networks is warranted. Based on a regional study of four BANs, we find that these subsidies reach their goals in terms of contribution to economic development and reducing financing and information problems entrepreneurial companies face. However, they are partly based on the wrong assumptions as these companies are not (yet) value creating. Therefore, we advise caution in using the market failure argument as grounds for government intervention in the informal risk capital market.
    Keywords: risk capital; business angels; policy; economic development; market failure
    JEL: G24 H71 M13 R58
    Date: 2007–03
  6. By: Mariana Gabarrot; Héctor Rodríguez Ramírez
    Abstract: Mientras que dentro del estudio de la migración el transnacionalismo se ha consolidado como campo de estudio, una discusión importante acerca de sus impactos en las comunidades de origen ha sido subestimada. Esta limitante del transnacionalismo puede ser explicada por la unidad de análisis, la cual está definida dentro del alcance geográfico de las sociedades de destino, privilegiando el punto de vista de los migrantes y sus redes con respecto al de los no migrantes. Este artículo presenta los retos del enfoque transnacional en el contexto actual de la migración mexicana hacia los Estados Unidos, enfatizando la importancia del rol que juegan quienes se quedan en territorio mexicano al momento de evaluar los impactos del fenómeno en el desarrollo local.
    Keywords: migración, México, Estados Unidos, desarrollo
    JEL: J60 J61 R21 R23
    Date: 2006–01

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