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on Economic Geography |
| By: | Song, Yan; Zenou, Yves |
| Abstract: | This article attempts a formal analysis of the connection between the differentiated property tax rates within urban areas and urban spatial pattern in U.S. cities. We first develop a duocentric-city model where the Central Business District (CBD) is located at the origin while the Suburban Business District (SBD) is at the other end of the city. We show that the ratio between the property tax in the suburbs and in the center has an ambiguous impact on the size of the city. We then test this model empirically to determine this sign by using a dataset of effective property tax rates we developed using GIS techniques for central cities and suburbs in 445 urbanized areas. The empirical analysis estimates the link between these two variables by controlling for variables such as population, income, agricultural rent, commuting cost, climate, crime, and employment structure. Results from the empirical analyses suggest that a lower property tax rate in the suburbs in comparison to the central city is associated with more expansive urban growth and greater level of decentralization of population and employment. |
| Keywords: | Central city; Differentiated property tax; Suburbs; Urban decentralization; Urban sprawl |
| JEL: | H3 H71 R14 |
| Date: | 2008–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:6842&r=geo |
| By: | Kurt A. Hafner |
| Abstract: | The paper quantifies the impact of agglomeration economies on the clustering of German firms. Therefore, I use the 2006 Innobarometer survey, which focuses on cluster characteristics and activities of German firms, to empirically identify agglomeration economies derived from the New Economic Geography and Marshall externalities. At the industry specific level, I find that within-industry spillovers are important for German low-tech firms but not for high-tech firms or knowledge intensive firms. At the department level, Marshall externalities such as hiring skilled labor and technological spillover effects are empirically confirmed for some departments like Human Resources or R&D but rarely for others like Production. |
| Keywords: | Agglomeration Economies, New Economic Geography, Externalities, Cluster |
| JEL: | C20 D21 F12 R12 |
| Date: | 2008–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:got:cegedp:72&r=geo |
| By: | Blázquez Cuesta, Maite (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.); Llano, Carlos (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.); Moral Carcedo, Julian (Departamento de Análisis Económico: Teoría e Historia Económica. Universidad Autónoma de Madrid) |
| Abstract: | Studying the relation between workers’ nationality and their commuting time has been of paramount importance in countries with high immigration rates and ethnical heterogeneity. Most of these studies focus on the spatial mismatch of racial minorities, and consider urban and social structures of the countries/cities where this segregation phenomenon may occur.Currently, immigration is one of the main challenges of the Spanish society. Foreign residents in Madrid region increased 639 % between 1996 and 2004. In this paper we explore the connection between commuting time, residential location and worker’s nationality using an ordered logit model. Our findings reveal that immigrants from ‘transition economies’ and ‘third world’ countries are significantly more likely to suffer higher commuting times compared to natives. These differences can be explained by both housing and labour market restrictions due to discrimination. This commuting penalty is in line with the spatial mismatch hypothesis and residential segregation. |
| Keywords: | Commuting flows; Immigration; Spatial mismatch; Labour mobility |
| JEL: | R15 |
| Date: | 2008–05 |
| URL: | http://d.repec.org/n?u=RePEc:uam:wpaper:200805&r=geo |
| By: | ZHENG , Jianghuai; GAO, Yanyan; Hu, Xiaowen |
| Abstract: | Based on micro-firm data of development zones in Jiangsu Province along the Yangtze River, the effects of local factors special to development zones and of technology promotion on firm’s performance are tested, from which we try to illustrate the nature and dynamics of industrial clusters built on development zones. The results show that the primary reasons firms locate into development zones are not clustering benefits in general meaning brought by interactions among firms locally concentrated, but are the attraction of “policy rents” and the scale economy of infrastructure brought by government behaviors. Once located in the zone, the firm is doom to interact with local government as well as industry-related factors, and the clustering effects may emerge. Thus, the key to keep development zones’ competition sustainable, when governments’ bidding wars and policy adjustment fade away “policy rents” and scale economy of infrastructure, is to cultivate clustering effects. |
| Keywords: | Development Zones along Yangtze River; Firms’ Spatial Concentration; Industrial Clustering Effects; Technology Promotion; Policy Rents |
| JEL: | R53 R58 R30 R50 O53 |
| Date: | 2008–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8917&r=geo |
| By: | Patacchini, Eleonora; Zenou, Yves |
| Abstract: | This paper studies the relationship between a community's ethnic population density and its crime rate. We compare the spatial distribution of crime and the black population across the 32 London boroughs. Once endogeneity and sorting issues are taken into account, we find that the higher is the density of the ethnic population in a given borough, the higher is the crime rate. This effect is still positive but lower for neighbouring boroughs and ceases to exist beyond a 40 minute driving distance. Social interactions between individuals of the same ethnic group are the most likely explanation for this positive relationship. |
| Keywords: | Crime; Ethnic minorities; Panel data; Social interactions; Spatial correlation |
| JEL: | C21 K42 R12 |
| Date: | 2008–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:6840&r=geo |
| By: | Thomas Lange (University of Konstanz, ifo Institute for Economic Research Munich & University of Paderborn) |
| Abstract: | The interregional mobility of high skilled workers might induce an underinvestment in local public higher education when sub-federal entities independently decide on education expenditures to maximize local output. This well-known result is due to interregional spillovers and provides a justification for coordinated education policy or rather a federal intervention. However, things might change completely when taking into account the interregional mobility of students. Now, local education expenditures not only affect labor migration (through wage differentials) but also student migration flows. The model in this paper then shows that local output maximization does not necessarily imply underprovision of higher education, since regions now have an incentive to attract students as future human capital. The stay rates of graduates in equilibrium and the sensitivity of wages to migration are key determinants of local policy. Furthermore, results depend on local government objectives or rather the weighting of natives relative to foreigners. Therefore, the paper also considers natives’ preferred local policy. |
| Keywords: | higher education, student mobility, labor mobility, local public finance |
| JEL: | I22 J61 H77 |
| Date: | 2008–05 |
| URL: | http://d.repec.org/n?u=RePEc:pdn:wpaper:11&r=geo |
| By: | Ross, Stephen L.; Zenou, Yves |
| Abstract: | Recent theoretical work has examined the spatial distribution of unemployment using the efficiency wage model as the mechanism by which unemployment arises in the urban economy. This paper extends the standard efficiency wage model in order to allow for behavioural substitution between leisure time at home and effort at work. In equilibrium, residing at a location with a long commute affects the time available for leisure at home and therefore affects the trade-off between effort at work and risk of unemployment. This model implies an empirical relationship between expected commutes and labour market outcomes, which is tested using the Public Use Microdata sample of the 2000 U.S. Decennial Census. The empirical results suggest that efficiency wages operate primarily for blue collar workers, i.e. workers who tend to be in occupations that face higher levels of supervision. For this subset of workers, longer commutes imply higher levels of unemployment and higher wages, which are both consistent with shirking and leisure being substitutable. |
| Keywords: | Efficiency wage; Leisure; Urban unemployment |
| JEL: | J41 R14 |
| Date: | 2008–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:6841&r=geo |
| By: | Zheng, Jianghuai; Hu, Zhining; Wang, Jialing |
| Abstract: | This paper firstly discusses why the economic growth in the Yangtze River Delta has been slowed down recently and suggests a need totransform the current input-based economic growth pattern into aninnovation-based one. Next, through our theoretical analysis, we find that the change of current economic growth pattern is just the innovative reallocationof production factors, and the new economic growth driven by innovation is mainly initiated by the transmutation of entrepreneurship. Finally, we test our belief with real-world evidence. It shows that the Delta has formed a mechanism in which entrepreneurship and human capital mutually promote each other. However, the interactive relationship between R&D expenditure and entrepreneurship has not been developed in general. In addition, excessive government interventions will do harm to the growth of entrepreneurs and economic development. |
| Keywords: | entrepreneurship; innovation and economic growth pattern |
| JEL: | O31 |
| Date: | 2008–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8919&r=geo |
| By: | Terra McKinnish; Randall Walsh; Kirk White |
| Abstract: | This paper uses confidential Census data, specifically the 1990 and 2000 Census Long Form data, to study the demographic processes underlying the gentrification of low-income urban neighborhoods during the 1990's. In contrast to previous studies, the analysis is conducted at the more refined census-tract level with a narrower definition of gentrification and more closely matched comparison neighborhoods. The analysis is also richly disaggregated by demographic characteristic, uncovering differential patterns by race, education, age and family structure that would not have emerged in the more aggregate analysis in previous studies. The results provide no evidence of displacement of low-income non-white households in gentrifying neighborhoods. The bulk of the increase in average family income in gentrifying neighborhoods is attributed to black high school graduates and white college graduates. The disproportionate retention and income gains of the former and the disproportionate in-migration of the latter are distinguishing characteristics of gentrifying U.S. urban neighborhoods in the 1990's. |
| JEL: | J15 J60 R23 |
| Date: | 2008–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14036&r=geo |