nep-geo New Economics Papers
on Economic Geography
Issue of 2009‒05‒09
seven papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. A Methodology to Compute Regional Housing Index Price using Matching Estimator Methods By Paredes - Araya, Dusan
  2. Chosen informal institutions and their spatial implications in the Czech Republic By Sucháček, Jan
  3. Misbehavioral urban economics By Berliant, Marcus
  4. The role of selected soft factors in the transformation of old industrial regions By Sucháček, Jan
  5. The Construction of Neighbourhoods and its Relevance for the Measurement of Social and Ethnic Segregation : Evidence from Denmark By Damm, Anna Piil; Schultz-Nielsen, Marie Louise
  6. Territorial marketing in the Czech Republic: a trial – and – error process By Sucháček, Jan
  7. The dinamic adjustment of local government budgets: does Spain behave differently? By Albert Solé-Ollé; Pilar Sorribas-Navarro

  1. By: Paredes - Araya, Dusan
    Abstract: This paper proposes a methodology for a spatial cost index of housing that considers spatial heterogeneity in properties across regions. The index is built by combining three different techniques to reduce the spatial heterogeneity in housing: Quasi-experimental methods, hedonic prices and Fisher spatial price index. Using microdata from the Chilean survey CASEN 2006, it is shown that the quasi-experimental method called Mahalanobis metric within propensity score calipers (MMWPS) leads to a significant reduction in the potential bias. The technique matches dwellings of a particular region with other properties of similar characteristics in the benchmark region (Metropolitan region). Once the houses are matched, a hedonic price model is computed, and a regional housing price matrix is created using Fisher spatial price indices. The paper concludes the existence of price differentials for homogeneous houses across regions in Chile.
    Keywords: Housing Cost; Index Hedonic Prices Index; Matching Estimator; Spatial Fisher Index.
    JEL: C43 C21 R21
    Date: 2009–05–04
  2. By: Sucháček, Jan
    Abstract: The article deals with abundant relations between chosen informal institutions and regional development in our country. It is argued that frequently used macro-view that perceives the country as one unit disregards the inner spatial economic disparities that may weaken the economic stability of the Czech Republic.
    Keywords: informal institutions; territorial identities; regional development; regional disparities; macroeconomic view
    JEL: B52 R0
    Date: 2008–02
  3. By: Berliant, Marcus
    Abstract: Applications of the framework of behavioral economics to questions arising from urban economics are discussed. Directions for future research are outlined.
    Keywords: Behavioral urban economics; ambiguity aversion; loss aversion; regional art
    JEL: C90 R23
    Date: 2009–04–30
  4. By: Sucháček, Jan
    Abstract: This paper deals with immaterial factors of regional development. As it is shown in two case studies, intangible items, such as image, stereotypes or overall atmosphere of the place can hamper the development in many territories. From this point of view, old industrial areas represent particularly sensitive entities. As suggested, it is useful to examine the sources of formation of mental maps on the one hand and actively influence them on the other hand.
    Keywords: regional development; soft factors; old industrial regions; Ostrava agglomeration; Katowice conurbation
    JEL: O10 B52 N90 R00
    Date: 2009–02
  5. By: Damm, Anna Piil (Department of Economics, Aarhus School of Business); Schultz-Nielsen, Marie Louise (The Rockwool Foundation Research Unit)
    Abstract: In this paper we propose a model for constructing neighbourhoods based on georeferenced data and administrative data. The 431,233 inhabited hectare cells in Denmark are clustered into 9,404 small and 2,296 large neighbourhoods, inhabited on average in 2004 by 572 and 2,343 persons respectively. The priorities in the clustering process are to obtain neighbourhoods that are unaltered over time, delineated by physical barriers, compact, homogeneous in terms of type of housing and ownership, relatively small, homogeneous in terms of number of inhabitants, and comprised of a contiguous cluster of cells. To illustrate the importance of detailed neighbourhood information we compare social and ethnic segregation measured by Isolation and Dissimilation indices on the levels of municipalities and of small neighbourhoods. Our findings demonstrate substantial variation in the residential mix in neighbourhoods within a given municipality, and thus show the importance of having information on a more detailed geographical level than that of the municipality.
    Keywords: Geo-referenced data; Neighbourhoods; Segregation
    JEL: J61
    Date: 2008–09–05
  6. By: Sucháček, Jan
    Abstract: There are numerous obscurities connected with territorial marketing. Substantial misunderstandings can occur already for the sake of the fact that this concept was labeled by different notions so far. Naturally, the same – with even higher intensity – holds true for the transition economies. This paper focuses upon the practice of territorial marketing in the Czech Republic. As it is shown, there is rather spontaneous than planned development of this concept in the Czech space. At the same time, there exists sufficient room for future application of selected components of territorial marketing in this country.
    Keywords: territorial marketing; local/regional development; Czech Republic; basic categories of territorial marketing
    JEL: R10 M31 Z0
    Date: 2008–08
  7. By: Albert Solé-Ollé (Universitat de Barcelona); Pilar Sorribas-Navarro (Universitat de Barcelona)
    Abstract: The aim of this paper is to analyze whether Spanish municipalities adjust in response to budget shocks and (if so) which elements of the budget they are more likely to adjust. The methodology we use to answer these questions is a vector error-correction model (VECM), estimated with data from a panel of Spanish municipalities during the period 1988-2006. Our results confirm, first, that municipalities do indeed make adjustments in response to fiscal shocks (i.e., the deficit is stationary in the long run). Second, we find that most of the adjustment to a revenue shock is borne by the municipalities themselves as they proceed to cut expenditures, with a minor role being played by grant financing. By contrast, adjustments to expenditure shocks are shared on largely equal terms by the municipality –through the raising of taxes– and higher tiers of government –through the raising of grants. These results suggest that the viability of the local finance system is feasible with different institutional arrangements.
    Keywords: Fiscal adjustment, intergovernmental transfers, local government.
    JEL: H70 H72 H77
    Date: 2009

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