nep-geo New Economics Papers
on Economic Geography
Issue of 2010‒05‒22
eight papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Do governments tax agglomeration rents? By Hyun-Ju Koh; Nadine Riedel
  2. Rural development policies at regional level in the enlarged EU. The impact of farm structures By Montresor, Elisa; Pecci, Francesco; Pontarollo, Nicola
  3. Resilient Regions: Clarity of Concepts and Challenges to Systemic Measurement By Yiheyis T Maru
  4. The Regional Dimension of Sectoral Innovativeness An Empirical Investigation of Two Specialised Supplier and Two Science-Based Industries By Uwe Cantner; Matthias Bürger
  5. GeoXp: An R Package for Exploratory Spatial Data Analysis By Laurent, Thibault; Ruiz-Gazen, Anne; Thomas-Agnan, Christine
  6. Competition Among Spatially Differentiated Firms: An Empirical Model with an Application to Cement By Nathan Miller; Matthew Osborne
  7. Technology diffusion, farm size structure and regional land competition in dynamic partial equilibrium By Lehtonen, Heikki
  8. Structural change of European dairy farms â A cross-regional analysis By Zimmermann, Andrea; Heckelei, Thomas

  1. By: Hyun-Ju Koh (University of Munich); Nadine Riedel (Oxford University CBT & CESifo Munich)
    Abstract: Using the German local business tax as a testing ground, we empirically investigate the impact of firm agglomeration on municipal tax setting behavior. The analysis exploits a rich data source on the population of German firms to construct detailed measures for the communities' agglomeration characteristics. The findings indicate that urbanization and localization economies exert a positive impact on the jurisdictional tax rate choice which confirms predictions of the theoretical New Economic Geography (NEG) literature. Further analysis suggests a qualification of the NEG argument by showing that a municipality's potential to tax agglomeration rents depends on its firm and industry agglomeration relative to neighboring communities. To account for potential endogeneity problems, our analysis exploits long-lagged population and infrastructure variables as instruments for the agglomeration measures.
    Keywords: Agglomeration rents, corporate taxation, regional differentiation
    JEL: H73 R12
    Date: 2010
  2. By: Montresor, Elisa; Pecci, Francesco; Pontarollo, Nicola
    Abstract: This paper provides an investigation of the effectiveness of the main measures applied in Rural Development Programs, in particular those for farm structure intervention, at regional/national level on the basis of cluster analysis with spatial econometric tools. The main results are: (i) the identification in the enlarged Union of the main rural systems, (ii) the suggestion of some indications for the rural policies after 2013, in particular for the farm structures intervention.
    Keywords: Spatial Cluster Analysis, Territorial Systems, Rural Development Programs, Farm Structures, Agricultural and Food Policy, Farm Management, Land Economics/Use,
    Date: 2010–04
  3. By: Yiheyis T Maru (CSIRO Sustainable Ecosystems, Australia)
    Abstract: Dealing with perturbations such as economic crises, pandemics and climate change requires an understanding of the resilience and vulnerability of regions. However, in the literature the concepts of a region and regional resilience lack clarity and are understood differently by different people. The approaches to resilience measurement also differ, with many of them addressing only part or certain aspects of a region. This paper reviews these concepts in an attempt to provide clarity of meaning and to contribute to a shared understanding of the concepts among both researchers and practitioners. The paper emphasises systems approaches to regional resilience and highlights related measurement challenges.
    Keywords: resilience, regions, resilience measurement, regional resilience, vulnerability
    JEL: R11 Q56
    Date: 2010–04
  4. By: Uwe Cantner (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Matthias Bürger (Department of Economics and Business Administration, Friedrich-Schiller-University Jena and Graduate College "The Economics of Innovative Change" (DFG-GK-1411))
    Abstract: The aim of this paper is to test how geographical and technological proximity relate to a particular industry's innovative output. Two mechanisms are therefore tested, i.e. agglomeration economies and the regional exploitation of technological proximity. A new dataset is applied, which includes German patent applications from within the period 1995 to 2006. Four industries are considered, two of which are science-based, whereas the remaining two are specialised supplier industries. While diversity is associated with high innovative output in the specialised supplier industries, the results for specialisation are mixed. However, all industries seem to benefit, at least to a certain degree, from the regional re-combination of their own technologies with those of specific key industries.
    Keywords: Innovation, Proximity, Diversity
    JEL: O18 R11
    Date: 2010–05–12
  5. By: Laurent, Thibault; Ruiz-Gazen, Anne; Thomas-Agnan, Christine
    Abstract: We present GeoXp, an R package implementing interactive graphics for exploratory spatial data analysis. We use a data basis concerning public schools of the French Midi-Pyréenées region to illustrate the use of these exploratory techniques based on the coupling between a statistical graph and a map. Besides elementary plots like boxplots, histograms or simple scatterplots, GeoXp also couples maps with Moran scatterplots, variogram clouds, Lorenz curves, etc. In order to make the most of the multidimensionality of the data, GeoXp includes dimension reduction techniques such as principal components analysis and cluster analysis whose results are also linked to the map.
    Keywords: exploratory analysis, spatial econometrics, spatial statistics
    Date: 2009–10–21
  6. By: Nathan Miller (Economic Analysis Group, Antitrust Division, U.S. Department of Justice); Matthew Osborne (Bureau of Economic Analysis)
    Abstract: The theoretical literature of industrial organization shows that the distances between consumers and firms have first-order implications for competitive outcomes whenever transportation costs are large. To assess these effects empirically, we develop a structural model of competition among spatially differentiated firms and introduce a GMM estimator that recovers the structural parameters with only regional-level data. We apply the model and estimator to the portland cement industry. The estimation fits, both in-sample and out-of-sample, demonstrate that the framework explains well the salient features of competition. We estimate transportation costs to be $0.30 per tonne-mile, given diesel prices at the 2000 level, and show that these costs constrain shipping distances and provide firms with localized market power. To demonstrate policy-relevance, we conduct counter-factual simulations that quantify competitive harm from a hypothetical merger. We are able to map the distribution of harm over geographic space and identify the divestiture that best mitigates harm.
    Date: 2010–03
  7. By: Lehtonen, Heikki
    Abstract: The methodological challenge addressed here is modelling multi-regional development of agricultural production and structural change, including land competition, in a dynamic partial equilibrium setting. The model applied in this study is a dynamic recursive model simulating the development of the agricultural investments and markets annually from 1995 up to 2020. Results show that land prices play a role when animal production increases in most competitive regions and gradually decreases in less productive regions. The framework can be applied when analysing how various new techniques, practices and regulations for land use affect regional production structures.
    Keywords: agricultural sector modelling, technical change, land competition, manure nutrients, agri-environmental policies, Agricultural and Food Policy, Farm Management, Land Economics/Use,
    Date: 2010–04
  8. By: Zimmermann, Andrea; Heckelei, Thomas
    Abstract: Previous analyses of dairy farm structural change focused on the variation over time in one or a small number of regions. Here we present an EU-15-wide analysis of the change of the number of farms in different size classes. The purpose is (1) to identify the differences in regional development patterns and (2) to measure the explanatory relevance and effect of key factors suggested in the literature. Apart from the unprecedented scope, the underlying Markov chain analysis also contributes by combining observed transitions in micro data with macro data on farm numbers. Results show widely significant impacts of most explanatory variables, but also reveal the complexity of the underlying processes.
    Keywords: Agricultural and Food Policy, Farm Management, Land Economics/Use,
    Date: 2010–04

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