nep-geo New Economics Papers
on Economic Geography
Issue of 2009‒01‒10
seven papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Polyinclusive strategies for the development of cities By Varma, Sumati; Gill, H.S
  2. Do EU-Funded ICT RTD Policies Really Matter? An Empirical View from the Regions By Alessandro Innocenti; Francesco Molinari
  3. Creating New Regions, Improving Regional Welfare Equality? By Aloysius Gunadi, Brata
  4. Horizontal market concentration: Theoretical insights from the spatial models By Andreea Cosnita-Langlais
  5. A two-dimensional measure of polarization: By Mogues, Tewodaj
  6. Subprime mortgages, foreclosures, and urban neighborhoods By Kristopher S. Gerardi; Paul S. Willen
  7. Recent Changes in Crop Production Costs and Implications for Regional Competitiveness By Olson, Kent D.; Zakharova, Lena

  1. By: Varma, Sumati; Gill, H.S
    Abstract: The defining characteristic of the modern global city today is its excluding character. The city today consists to a large extent of poor people who have been excluded in the process of urban planning and whose right to be a part of the urban process has been largely ignored. Urban development that is geared to the needs of global capital displaces or excludes poor segments of the population and leads to the social and spatial segmentation of the mega-city into citadels and ghettos. This has created a growing disparity between “haves” and “have-nots”, both between and within nations. Globalisation proceeds selectively, including and excluding segments of economies and societies in and out of the networks of information, wealth and power that characterise the new dominant system. In the given perspective this paper attempts: · To analyse the effects of globalisation on urban growth and development in India. · To examine the policy and strategy of urban development during the past two and a half decades, including the organisational structure for managing urban sector schemes and the supporting financing system. · To suggest an integrated strategy for the development of inclusive cities. · To develop a framework of an inclusive, modern and environment friendly city.
    Keywords: Inclusive cities;globalisation;Urban planning
    JEL: O1 O18 R00
    Date: 2008–06
  2. By: Alessandro Innocenti; Francesco Molinari
    Abstract: This paper provides evidence of the positive correlation between participation in the European ICT-RTD Programmes, the innovation capacity of the EU regions and the growth of regional added value adjusted by worked hours, We also offer additional support to the findings of previous studies concerning the raionale of the geographical concentration of innovation activities in some core areas of Europe. This evidence calls for a further integration of EU ICT-RTD policies at regional rather than national level, particularly encouraging the participation of regional organizations in multiple and related instruments.
    Keywords: regional innovation systems, regional growth, European policies, ICT RTD programmes.
    JEL: C23 E62 O38 R58
    Date: 2008–12
  3. By: Aloysius Gunadi, Brata
    Abstract: In concurrent with reformation and decentralization, number of sub-national administrative in Indonesia increase significantly. Existing regions has been splitting to create new regions. As the result, number of municipalities and districts in Indonesia in recent years are more than 450. The creation of new regions has been expected will increase citizens’ welfare in the regions and reduce regional inequality. However, indicative evidences shows negative impacts of this reform such as increase of inefficient administration cost of government, decrease capacity to deliver public services and increase potential for inter-group conflict. All of these indicative evidences will affect the welfare of citizens as seen on the human development indicators. Based on this background, the aim of this article is to analyze the relation of creation of new regions with the evolution of regional welfare inequality. The study employed human development index (HDI) at sub-national level (kota/kabupaten) as the indicator of welfare. The evolution of regional inequality of the HDI is analyzed by comparing coefficient of variation in the HDI from 1996 to 2005. This paper also estimated a preliminary empirical model to assess the impact of pemekaran on the within province inequality. The policy implication of this finding is that pemekaran should be controlled.
    Keywords: new region; ‘pemekaran’; human development index; inequality
    JEL: R58 H75 R11
    Date: 2008–10
  4. By: Andreea Cosnita-Langlais
    Abstract: This paper aims to further advance the study of horizontal mergers by critically reviewing the theory on spatial models that may be used for the analysis of horizontal market concentration. We examine the incentives conveyed by locations for undertaking merger and merger-related strategies, as well as the impact of merger on strategic location choices. Thereby this paper highlights the two-way relationship between market concentration behavior and firm location.
    Keywords: geographic and product space, strategic location, horizontal market concentration, merger control
    JEL: D43 L41 R32
    Date: 2008
  5. By: Mogues, Tewodaj
    Abstract: "The link between economic distribution and social conflict—and the notion that this link arises from individuals' sense of identification with those similar to them and their feelings of alienation from individuals with different characteristics—has spurred a literature on polarization, a concept distinct from inequality. This literature, with few exceptions, has nearly exclusively focused on polarization along one (i.e., economic) dimension, despite ample evidence that identification and alienation are often formulated along noneconomic attributes. This paper extends previous work by presenting and discussing a measure of polarization that allows analysis of the distribution of society along two dimensions—an economic variable (e.g., income) and an immutable variable with social significance (e.g., skin color). The measure is discussed in light of four axioms that specify the types of distributional changes that should reasonably translate into a higher degree of socioeconomic polarization. Applying the measure to a family of functions that can represent both unimodal and bimodal population distributions, the measure satisfies the four axioms—briefly summarized as a shrinking of the middle class, greater concentration of the population around poles, greater distance between the poles, and higher correlation between the two variables—under certain parametric restrictions. Unlike the existing studies, which explore multidimensional polarization, we propose a polarization measure that treats the social attribute as continuous (and hence with ordinal properties), thus being able to capture both identification and alienation in social and economic terms. " from authors' abstract
    Keywords: Two-dimensional polarisation, Socio-economic polarisation, Alienation, Identity, Distribution, Governance, Policy process,
    Date: 2008
  6. By: Kristopher S. Gerardi; Paul S. Willen
    Abstract: This paper analyzes the impact of the subprime crisis on urban neighborhoods in Massachusetts. The topic is explored using a dataset that matches race and income information from HMDA with property-level, transaction data from Massachusetts registry of deeds offices. With these data, we show that much of the subprime lending in the state was concentrated in urban neighborhoods and that minority homeownerships created with subprime mortgages have proven exceptionally unstable in the face of rapid price declines. The evidence from Massachusetts suggests that subprime lending did not, as is commonly believed, lead to a substantial increase in homeownership by minorities, but instead generated turnover in properties owned by minority residents. Furthermore, we argue that the particularly dire foreclosure situation in urban neighborhoods actually makes it somewhat easier for policymakers to provide remedies.
    Keywords: Subprime mortgage ; Mortgage loans - Massachusetts
    Date: 2008
  7. By: Olson, Kent D.; Zakharova, Lena
    Abstract: Rapid increases in input prices have cast a large shadow over the enthusiasm created by higher product prices. In this paper we forecast the trends in input prices and use these trends to forecast production costs for corn, soybeans, and wheat at the national level, and for regions within the U.S. Although the Heartland is forecast to maintain its competitive edge in corn costs, the Northern Great Plains and Prairie Gateway regions are forecast to increase their competitive advantage due to using less fertilizer and chemicals on average which results in relative costs decreasing for these regions. For soybeans, the Heartland is forecast to maintain its competitive edge although the Eastern Uplands region was forecast to increase its competitive advantage due to using less fertilizer and chemicals. With wheat, the Prairie Gateway region was forecast to have the best improvement in relative costs, while the Northern Great Plains loses some competitive edge. However, since individual farms have different costs due to physical conditions and timing of input purchases, and crop prices are fluctuating, actual profit levels are hard to predict.
    Keywords: Crop Production/Industries,
    Date: 2008–12

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