nep-geo New Economics Papers
on Economic Geography
Issue of 2009‒03‒28
thirteen papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Central City Exploitation by Urban Sprawl? Evidence from Swiss Local Communities By Christoph A. Schaltegger; Benno Torgler; Simon Zemp
  2. Agglomeration, migration, and regional growth: A CGE analysis for Uganda By Dorosh, Paul; Thurlow, James
  3. Variabilité spatiale des prix hédoniques des caractéristiques du logement: une nouvelle méthode de calcul des indices de prix spatiaux By Filali, Radhouane
  4. The role of fiscal transfers for regional economic convergence in Europe. By Cristina Checherita; Christiane Nickel; Philipp Rother
  5. Spatial Point Pattern Analysis and Industry Concentration By Reinhold Kosfeld; Hans-Friedrich Eckey; Jørgen Lauridsen
  6. Modeling regional house prices By Dijk, A. van; Franses, Ph.H.B.F.; Paap, R.; Dijk, D.J.C. van
  7. Sebastiano Brusco and the Italian School of Local Development By Margherita Russo; Anna Natali
  8. An Empirical Evaluation of Poverty Mapping Methodology: Explicitly Spatial versus Implicitly Spatial Approach By Olivia, Susan; Gibson, John; Smith, Aaron; Rozelle, Scott; Deng, Xiangzheng
  9. Creative Industries, New Business Formation and Regional Economic Growth By Roberta Piergiovanni; Martin Carree; Enrico Santarelli
  10. Spatial asymmetric duopoly with an application to Brussels' airports By Fay Dunkerley; André De Palma; Stef Proost
  11. Production Networks and Spatial Economic Interdependence: An International Input-Output Analysis of the Asia-Pacific Region By Meng, Bo; Inomata, Satoshi
  12. Education-Based Wage Differentials and Regional Patterns : The Case of Canadian Registered Nurses By Lee, Heyung-Jik
  13. Voters Hold the Key: Lock-in, Mobility and the Portability of Property Tax Exemptions By Ron Cheung; Chris Cunningham

  1. By: Christoph A. Schaltegger; Benno Torgler; Simon Zemp
    Abstract: This paper investigates spatial spillovers in local spending decisions between the center and the surrounding local communities by using panel data of the canton of Lucerne during the 1990s. Due to the geographical fragmentation with a major central city and some 100 small suburban local communities within a distance from 4 to 55 kilometers to the center this area represents a particularly useful database in order to test the relevance of spatial interactions in a small metropolitan area. The empirical evidence confirms strategic interactions among suburban governments and the central city only for public education, health and environmental spending. There are no spatial interactions with the central city for overall government spending.
    Keywords: spatial spillovers; strategic interaction; central city exploitation
    JEL: D72 H72
    Date: 2009–03
  2. By: Dorosh, Paul; Thurlow, James
    Abstract: "Uganda has experienced rapid economic growth and poverty reduction over the past decade but has failed to significantly improve incomes in its northern regions where prolonged conflict has hindered growth. We consider three strategies to close this regional divide: (1) develop a north-south corridor to encourage regional trade, (2) accelerate growth in the southern capital city and encourage north-south migration, and (3) improve agricultural productivity in rural areas. We examine these strategies using a regionalized computable general equilibrium model, accounting for internal migration and productivity gains from urban agglomeration effects. Simulation results indicate that a north-south corridor benefits northern households, but its benefits are limited by the small size of northern urban centers and the low productivity of northern producers. Investing in the capital city accelerates economic growth but has little effect on other regions' welfare because of the city's weak growth linkages with other regions and small migration effects. Improving agricultural productivity, however, though less effective at stimulating national economic growth, generates broad-based welfare improvements in both rural and urban areas. We therefore conclude that without significant gains in agricultural productivity in the next decade, out-migration and urban-led growth centered in Kampala will be insufficient to significantly reduce poverty in northern Uganda. " from authors' abstract
    Keywords: economic growth, Poverty, Agricultural development, Spatial economics, Development strategies,
    Date: 2009
  3. By: Filali, Radhouane
    Abstract: Estimation of spatial housing price indices requires a housing market segmentation into local sub-markets. In this paper, we use geographically weighted regression model (GWR) to take account for spatial heterogeneity of housing attribute marginal prices. Estimated marginal prices are then used to assess constant quality housing values over space. Evidences from urban Tunisia assert attribute marginal prices variability and provide satisfactory indices in both ownership and rental markets.
    Keywords: Marché de logement - Prix hédoniques - régression géographiquement pondérée - indice de prix spatiaux
    JEL: C43 D12 C21 R21
    Date: 2008–10–20
  4. By: Cristina Checherita (George Mason University, School of Public Policy, 3401 Fairfax Drive, MS 3B1, Arlington, VA 22201, USA.); Christiane Nickel (European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany.); Philipp Rother (European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany.)
    Abstract: This paper provides evidence on the role of net fiscal transfers to households and EU structural funds for per-capita output convergence across a large sample of European regions during the period 1995-2005. We find that net fiscal transfers, while achieving regional redistribution, seem to impede output growth and promote an "immiserising convergence" - output growth rates in poor receiving regions decline by less than in rich paying regions. EU structural and cohesion funds spent during 1994-1999 had a positive, but slight, impact on future economic growth, mainly through the human development component. JEL Classification: E62, R11, R23.
    Keywords: Fiscal policy, convergence, regional economic growth, regional migration.
    Date: 2009–03
  5. By: Reinhold Kosfeld (Institute of Economics, University of Kassel, 34109 Kassel, Germany); Hans-Friedrich Eckey (Institute of Economics, University of Kassel, 34109 Kassel, Germany); Jørgen Lauridsen (Institute of Public Health, University of Southern Denmark, Odense M 5230, Denmark)
    Abstract: Traditional measures of spatial industry concentration are restricted to given areal units. They do not make allowance for the fact that concentration may be differently pronounced at various geographical levels. Methods of spatial point pattern analysis allow to measure industry concentration at a continuum of spatial scales. While common distancebased methods are well applicable for sub-national study areas, they become inefficient in measuring concentration at various levels within industrial countries. This particularly applies in testing for conditional concentration where overall manufacturing is used as a reference population. Using Ripley’s K function approach to second-order analysis, we propose a subsample similarity test as a feasible testing approach for establishing conditional clustering or dispersion at different spatial scales. For measuring the extent of clustering and dispersion, we introduce a concentration index of the style of Besag’s (1977) L function. By contrast to Besag’s L function, the new index can be employed to measure deviations of observed from general spatial point patterns. The K function approach is illustratively applied to measuring and testing industry concentration in Germany.
    Keywords: Spatial concentration, clustering, dispersion, spatial point pattern analysis, K function
    JEL: C46 L60 L70 R12
    Date: 2009
  6. By: Dijk, A. van; Franses, Ph.H.B.F.; Paap, R.; Dijk, D.J.C. van (Erasmus Econometric Institute)
    Abstract: We develop a parsimonious panel model for quarterly regional house prices, for which both the cross-section and the time series dimension is large. The model allows for stochastic trends, cointegration, cross-equation correlations and, most importantly, latent-class clustering of regions. Class membership is fully data-driven and based on (i) average growth rates of house prices, (ii) the propagation of shocks to house prices across regions, also known as the ripple effect, and (iii) the relationship of house prices with economic growth and other variables. Applying the model to quarterly data for the Netherlands, we find convincing evidence for the existence of two distinct clusters of regions, with pronounced differences in house price dynamics.
    Keywords: cross-section dependence;cointegration;ripple effect
    Date: 2008–03–18
  7. By: Margherita Russo; Anna Natali
    Abstract: The essay, presented as opening lecture at the first edition of the Summer School of Local Development “Sebastiano Brusco” (Seneghe, July 2006), outlines the original contribution of Sebastiano Brusco on two related issues: theory and tools for analyzing the industrial structure and for designing development policy. Her we enlighten some distinctive elements apparently running through all Brusco’s work, from the youth years in Sardinia, spent in cultural and political activities alongside Antonio Pigliaru, till the more mature studies on industrial districts. In Brusco’s thought, a central role is played by knowledge, competence, information, education and training: as far as small firms productive systems, industrial districts, and also less developed areas are concerned. An innovative approach to policy design and intervention stems from this view, stressing mechanisms able to diffusely affect capacity, learning and perception of opportunities.
    Keywords: development policy; regional policy
    JEL: R11
    Date: 2008–12
  8. By: Olivia, Susan; Gibson, John; Smith, Aaron; Rozelle, Scott; Deng, Xiangzheng
    Abstract: Poverty maps provide information on the spatial distribution of welfare and can predict poverty levels for small geographic units like counties and townships. Typically regression methods are used to estimate coefficients from the detailed information in household surveys, which are then applied to the more extensive coverage of a census. One problem with standard regression techniques is that they do not take into account the ‗spatial dependencies‘ that often exist in the data. Ignoring spatial autocorrelation in the regression providing the coefficient estimates could lead to misleading predictions of poverty, and estimates of standard errors. Household survey data usually lack exact measures of location so it is not possible to fully account for this spatial autocorrelation. In this paper, we use data from Shaanxi, China with exact measures of distance between each household to explicitly model this spatial autocorrelation. We also investigate which set of augmenting variables (i) census means or (ii) environmental variables mainly from satellite imagery have the most impact in soaking up unwanted spatial autocorrelation.
    Keywords: China, Poverty, Small Area Estimation, Survey Methods, Spatial Models,
    Date: 2009
  9. By: Roberta Piergiovanni (Istat-Ufficio Regionale per l’Emilia-Romagna); Martin Carree (Maastricht University); Enrico Santarelli (University of Bologna and Max Planck Institute of Economics)
    Abstract: The present study explores the impact exerted by a series of factors and processes including creativity, IPR activities, new business formation and the provision of amenities on economic growth for 103 Italian provinces (NUTS 3) over the period between 2001 and 2006. Provincial growth rates are measured alternatively by value added growth and employment growth. Findings show a positive effect of the increase in the number of firms active in the creative industries, net entry, and a greater provision of leisure amenities on regional economic growth. A large portion of employment in the manufacturing, mining, and energy sector, and a high relative number of university faculties are found to lead to slower economic growth, whereas trademarks, patents, cultural amenities and industrial districts do not affect economic growth. Finally, the share of legal immigrants is found to have a positive impact on employment growth.
    Keywords: regional growth, creativity, entrepreneurship, Italian provinces
    JEL: O18 O34 R11
    Date: 2009–03–18
  10. By: Fay Dunkerley (CES - KU Leuven - CES - KU Leuven); André De Palma (ENS Cachan - Ecole Normale Supérieure de Cachan - Ecole Normale Supérieure de Cachan, Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X); Stef Proost (CES - KU Leuven - CES - KU Leuven)
    Abstract: In this paper the problem of a city with access to two firms or facilities (shopping malls, airports, commercial districts) selling a differentiated product (shopping, flights) and/or offering a differentiated workplace is studied. Transport connections to one facility are congested. A model is presented for this asymmetric duopoly game that can be solved for a Nash equilibrium in prices and wages. A comparative statics analysis is used to illustrate the properties of the equilibrium. A numerical model is then applied to the two Brussels airports. Three stylised policies are implemented to address the congestion problem: expansion of transport capacity; congestion pricing; and a direct subsidy to the uncongested facility. Our results indicate that the degree of intrinsic differentiation between the two firms is crucial in determining the difference in profit and market share. Price and wage differences also depend on trip frequency and consumer preferences for diversity. Congestion pricing is the most effective policy tool but all three options are shown to have attractive attributes.
    Keywords: duopoly, imperfect competition, congestion, general equilibrium, airport competition
    Date: 2008–12
  11. By: Meng, Bo; Inomata, Satoshi
    Abstract: The Asia-Pacific Region has enjoyed remarkable economic growth in the last three decades. This rapid economic growth can be partially attributed to the global spread of production networks, which has brought about major changes in spatial interdependence among economies within the region. By applying an Input-Output based spatial decomposition technique to the Asian International Input-Output Tables for 1985 and 2000, this paper not only analyzes the intrinsic mechanism of spatial economic interdependence, but also shows how value added, employment and CO2 emissions induced are distributed within the international production networks.
    Keywords: Production networks, Spatial economic interdependence, Input-output table
    JEL: C67 F02
    Date: 2009–03
  12. By: Lee, Heyung-Jik
    Abstract: This paper examines the monetary returns from a baccalaureate degree for the nursing education compared to a diploma across five regions in Canada. It engages me in employing benefit-cost analysis to assess whether the evidence is consistent with implications of human capital theory. Depending on the assumed discount rate and retirement age, the estimated baccalaureate-diploma wage differentials vary in each Canadian region. In this study, I conclude that the decision to invest in one more year of nursing education is economically rational only for the registered nurses who work in Eastern Canada.
    Date: 2009–03
  13. By: Ron Cheung (Department of Economics, Florida State University); Chris Cunningham (Federal Reserve Bank of Atlanta)
    Abstract: We examine support for a recent and novel Florida referendum to allow home owners with existing assessment caps to “port” their exemption to a new residence. Employing a rich dataset of all Florida real property, census-block data and precinct level voting results, we find that support for the law change was greater in high-mobility and high exemption precincts. Support was also greater in cities with more out-of-state migration or containing more second homes. Within cities, a precinct’s mobility relative to the rest of the city was more predictive suggesting that voters were savvy to the tax-share implications of the amendment.
    Keywords: tax limitations, property tax, assessment cap, referendum, voting, lock-in, mobility
    JEL: R5 H7 H5
    Date: 2009–03

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