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on Economic Geography |
| By: | Akamatsu, Takashi; Takayama, Yuki |
| Abstract: | This paper shows that the evolutionary process of spatial agglomeration in multi-regional core-periphery models can be explained analytically by a much simpler method than the continuous space approach of Krugman (1996). The proposed method overcomes the limitations of Turing's approach which has been applied to continuous space models. In particular, it allows us not only to examine whether or not agglomeration of mobile factors emerges from a uniform distribution, but also to trace the evolution of spatial agglomeration patterns (i.e., bifurcations from various polycentric patterns as well as from a uniform pattern) with decreases in transportation cost. |
| Keywords: | agglomeration; core-periphery model; multi-regional; stability; bifurcation |
| JEL: | F22 F15 R13 R12 C62 |
| Date: | 2009–08–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:21739&r=geo |
| By: | Akamatsu, Takashi; Takayama, Yuki; Ikeda, Kiyohiro |
| Abstract: | We provide an analytical approach that facilitates understanding the bifurcation mechanism of a wide class of economic models involving spatial agglomeration of economic activities. The proposed method overcomes the limitations of the Turing (1952) approach that has been used to analyze the emergence of agglomeration in the multi-regional core-periphery (CP) model of Krugman (1993, 1996). In other words, the proposed method allows us to examine whether agglomeration of mobile factors emerges from a uniform distribution and to analytically trace the evolution of spatial agglomeration patterns (i.e., bifurcations from various polycentric patterns as well as a uniform pattern) that these models exhibit when the values of some structural parameters change steadily. Applying the proposed method to the multi-regional CP model, we uncover a number of previously unknown properties of the CP model, and notably, the occurrence of “spatial period doubling bifurcation” in the CP model is proved. |
| Keywords: | economic geography; agglomeration; stability; bifurcation; gravity laws |
| JEL: | F15 F22 R13 C65 F12 R12 C62 |
| Date: | 2009–08–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:21738&r=geo |
| By: | Peter Franz |
| Abstract: | As scientists and policymakers tend to interpret changes in the economy as a trend towards an increasingly knowledge-based economy, their recommendations and strategies for regional economic development frequently contain elements how to intensify the knowledge flows in the region concerned. Knowledge flows come into existence from intentional action, but also in an unintended way as externalities or knowledge spillovers. This paper reviews the ways regional and urban economics has dealt with the concept of knowledge spillovers. Knowledge spillovers are defined within a conceptual framework that points out different uses of knowledge in economics. The concept’s operationalisations in diverse empirical studies are systematised and discussed. After a critical review of the current state of research, policy strategies aiming to intensify knowledge spillovers are classified. The paper concludes with an outlook on promising new approaches to research knowledge spillovers and on the elaboration of more efficient policy strategies. |
| Keywords: | knowledge spillovers; tacit knowledge; codified knowledge; transfer mechanisms; related variety |
| JEL: | D83 R11 R12 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:iwh:dispap:5-10&r=geo |
| By: | Toshihiro Okubo (Research Institute for Economics and Business Administration, Kobe University) |
| Abstract: | Heterogeneity in firm productivity affects the location patterns of firm and agglomeration. Here we provide an economic geography model, involving forward and backward linkages driven by the migration of a footloose entrepreneur (capital owner) with different productivity. As a result we find a sorting equilibrium characterised by co-agglomeration of similar productivity firms, however, in contrast to previous studies, unproductive firms are more likely to agglomerate than their more productive counterparts. This is due to the increasingly severe competition induced by productive firms. Productive firms prevent severe local competition through their co-agglomeration. In terms of social welfare, although the sorting equilibrium involves higher social welfare than a perfectly symmetric pattern of firm location, the market outcome is sub-optimal and induces too much agglomeration. |
| Keywords: | heterogeneous firms, footloose entrepreneurs, competition, productivity, economic geography |
| JEL: | F15 F23 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2010-11&r=geo |
| By: | Martin Koning (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I) |
| Abstract: | The aim of this article was to assess specific problems concerning traffic congestion access to the city of Paris. First, we attempted to evaluate the evolution of the congestion cost for the Paris Ring-Road (PRR), the major urban highway surrounding the French capital, during the period from 2000-2007. A speed-density methodology was implemented which enabled us to differentiate the external costs of road congestion between speed-classes of 5 km/h. These results were useful to subsequently propose the order of magnitude of time losses at national and regional scales, as well as marginal pricing schemes which could potentially be used in order to correct road congestion externality on the PRR. Our empirical investigation concluded that, in 2007, the PRR was more costly for central Paris area (130 M€) compared to that of seven years earlier (117 M€). The deterioration of traffic conditions, symbolized by the mean speed fall (- 5.2 %), dominates the infrastructure least used (- 2.2 %). Based on these figures, the social cost of road congestion is thought to reach about 0.2 % of the French GDP. This ratio becomes three times higher once reported on a regional scale and underlines that road congestion is an important issue for Ile-de-France. Finally, despite their analytical limitations, the proposed taxes clearly illustrate the challenges related to road-pricing strategies. |
| Keywords: | Paris Ring-Road, Road Congestion, Speed-Density Relationship, Road-Pricing |
| Date: | 2010–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00467888_v1&r=geo |
| By: | Alexander Plekhanov (European Bank of Reconstruction and Development); Lev Freinkman (World Bank) |
| Abstract: | The paper provides empirical analysis of the relationship between fiscal decentralisation and the quality of public services in the Russian regions. The analysis suggests that fiscal decentralisation has no significant effect on the key inputs into secondary education, such as schools, computers, or availability of pre-schooling, but has a significant positive effect on average examination results, controlling for key observable inputs and regional government spending on education. Decentralisation also has a positive impact on the quality of municipal utilities provision. Both effects can be attributed to strengthened fiscal incentives rather than to superior productive efficiency of municipal governments. |
| Keywords: | decentralisation, education, utilities, public services, Russian regions |
| JEL: | H72 H73 H75 H77 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:ebd:wpaper:111&r=geo |
| By: | Stone, Joe; Bania, Neil; Gray, Jo Anna |
| Abstract: | We find region-specific complementarity between investments in public infrastructure and education, both k-12 and postsecondary. The complementarity helps to explain how regions capture returns to investments in education even when residents are mobile, and is strong enough for the effect of tax-financed expenditures on either public infrastructure or education to be significantly positive when spending on the other is high, even though the independent effect of either one is negative. Effects are identified using a recursive structure, very long lags, GMM-instrumental variables, and multiple controls for heterogeneity. Estimates are robust across identification strategies, estimators, and instruments. |
| Keywords: | infrastructure; education complementarity economic growth |
| JEL: | J00 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:21697&r=geo |
| By: | Denis Gerstorf; Nilam Ram; Jan Goebel; Jürgen Schupp; Ulman Lindenberger; Gert G. Wagner |
| Abstract: | Lifespan psychological research has long been interested in the contextual embeddedness of individual development. To examine if and how regional factors relate to between-person disparities in the progression of late-life well-being, we applied three-level growth curve models to 24-year longitudinal data from deceased participants of the German Socio-Economic Panel Study (N = 3,427; age at death: 18 to 101 years). Results indicate steep declines in well-being with impending death, with some 8% of the between-person differences in both level and decline of well-being reflecting between-county differences. Exploratory analyses revealed that individuals living and dying in less affluent counties reported lower late-life well-being, controlling for key individual predictors including age at death, gender, education, and household income. The regional factors examined did not directly relate to well-being change, but were found to moderate (e.g., amplify) the disparities in change attributed to individual factors. Our results suggest that resource-poor counties provide relatively less fertile grounds for successful aging until the end of life and may serve to exacerbate disparities. We conclude that examinations of how individual and residential characteristics interact can further our understanding of individual psychological outcomes and suggest routes for future inquiry. |
| Keywords: | Neighborhoods; Selective mortality; successful aging; differential aging; psychosocial factors; well-being; longitudinal methods |
| JEL: | I12 J14 R23 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp287&r=geo |
| By: | Lorenzo Boetti (Catholic University of Milan); Massimiliano Piacenza (Department of Economics and Public Finance "G. Prato", University of Torino); Gilberto Turati (Department of Economics and Public Finance "G. Prato", University of Torino) |
| Abstract: | In Italy, as in other countries around the world, recent reforms share the goal of increasing the fiscal autonomy of lower tiers of governments, from Regions to Municipalities, in order to align spending with funding responsibilities and increase the efficiency in the provision of essential public services. The purpose of this paper is to assess spending efficiency of local governments and to investigate the effects of tax decentralization, focusing on the role played by incumbent politicians’ accountability. The analysis relies on a sample of Italian municipalities and exploits both parametric (SFA) and nonparametric (DEA) techniques to study spending inefficiency and its main determinants. Consistently with modern fiscal federalism theories, our results show that more fiscally autonomous municipalities exhibit less inefficient behaviours. We also find that the shorter is the distance from new elections, the higher is excess spending, thus giving further support to the traditional “electoral budget cycle” agument. Other political features of governing coalition, such as age and gender of the mayor, do not seem to exert any significant impact on inefficiency levels. |
| Keywords: | Local governments, Fiscal autonomy, Political accountability, Spending efficiency, Parametric and nonparametric frontiers |
| JEL: | D72 D78 H71 H72 H77 R51 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:tur:wpaper:11&r=geo |