nep-geo New Economics Papers
on Economic Geography
Issue of 2010‒06‒26
eleven papers chosen by
Vassilis Monastiriotis
London School of Economics

  2. Knowledge diffusion and innovation policies within the European regions: Challenges based on recent empirical evidence By Corinne Autant-Bernard; Nadine Massard; Muriel Fadairo
  3. Spanish Regional Unemployment Revisited: The Role of Capital Accumulation By Roberto Bande; Marika Karanassou
  4. Enhancing Knowledge-Based Regional Economic Development: Potentials and Barriers for Technology Transfer Offices By Christoph Kober
  5. An analysis of the Graduate Labour Market in Finland: the impact of Spatial Agglomeration and Skill-Job Mismatches By Consoli, Davide; Vona, Francesco; Saarivirta, Toni
  6. The Identification of Industrial Clusters – Methodical Aspects in a Multidimensional Framework for Cluster Identification By Mirko Titze; Matthias Brachert; Alexander Kubis
  7. Municipal Finance of Urban Infrastructure: Knowns and Unknowns By James Alm
  8. REGIONAL PRO-POOR GROWTH AND CONVERGENCE IN TUNISIA By Ghazi Boulila; Chaker Gabsi; Mohamed Trabelsi
  9. Bertrand and Cournot in the unidirectional Hotelling model By stefano Colombo
  10. The Rise Of The Green City In The U.S. - Sustainable Strategies And The Attraction Of Human Capital By Environmental Amenities By Ulrich Dilger
  11. Assessing the Incidence and Efficiency of a Prominent Place Based Policy By Matias Busso; Jesse Gregory; Patrick M. Kline

  1. By: Yacine Belarbi; Abdallah Zouache (CREUSET-CNRS, University of Lyon, Saint-Etienne, France)
    Abstract: This paper examines the economic forces that explain regional growth in Algeria in the period 1998-2005. Since the beginning of structural reforms in the early 1980s, the Algerian economy has experienced a transition from a soviet-kind planned economy to a market economy. Furthermore, from 1990 to 2000, Algeria experienced many political and economic troubles and was even forced by the IMF to follow a structural adjustment program between 1994 and 1998. This paper studies the relation between industrial employment growth per capita in 48 Algerian regions and the geographical location of those regions in terms of immediate neighborhood. Our results demonstrate that there is no convergence process between the Algerian regions. In other words, “rich” Algerian regions stay rich whereas relatively poor regions stay poor. In that vein, the significance of the spatial dependence coefficient may reveal that there are convergence clubs in Algeria. Growth dynamics in Algeria are not equitably distributed.
    Date: 2009–08
  2. By: Corinne Autant-Bernard (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines); Nadine Massard (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines); Muriel Fadairo (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines)
    Abstract: This article builds upon empirical results concerning localised knowledge spillovers to highlight some policy implications within European regions. The analysis emphasises the role of regional innovation policies in supporting the institutions that generate knowledge and learning. However, the variety of regional features presented in the empirical literature suggests that the search for universal policy tools is unrealistic. From this perspective, we argue that original strategies must be generated to cope with the various dilemmas faced by regional innovation policies. Such specific strategies require accurate knowledge of local features. Improving data and indicators to diagnose and monitor regional innovation is therefore presented as a key issue for policy makers
    Keywords: innovation policy ; localised knowledge flows ; European regions ; knowledge-based economy
    Date: 2010
  3. By: Roberto Bande (University of Santiago); Marika Karanassou (Queen Mary, University of London and IZA)
    Abstract: This paper provides new evidence for the evolution of regional unemployment rates in Spain over the 1980-2000 period. We argue that interactive dynamic systems of labour demand, wage setting, and labour force equations (i) allow for a richer interpretation of regional disparities, and (ii) can capture the unemployment effects of growing variables such as capital stock. After classifying the 17 Spanish regions into high and low unemployment groups using kernel and cluster techniques, we estimate a structural labour market model for each group and evaluate the unemployment contributions of investment, benefits, taxes, and the oil price. We find that the main driving force of regional unemployment swings is capital accumulation.
    Keywords: Regional unemployment, Disparities, Capital accummulation, Kernel, Cluster.
    JEL: R23 J64
    Date: 2010–06
  4. By: Christoph Kober
    Date: 2010–05–27
  5. By: Consoli, Davide; Vona, Francesco; Saarivirta, Toni
    Abstract: The recent history of Finland has been shaped by the rollercoaster of the 1990s when the economy went from deep recession to becoming among the most innovative and competitive within merely a decade. Economic recovery driven by the surge of ICT-related industries with the active support of the higher education system gave way also to growing inequalities among regions, especially within graduate workers. The paper elaborates an empirical analysis of the returns to education of a cohort entering the labour force between 1995 and 2005; our objective is to capture the extent of spatial and occupational determinants on income distribution as Finland slid from its most troubled to most prosperous times.
    JEL: R11 J24 J31
    Date: 2010–03–02
  6. By: Mirko Titze; Matthias Brachert; Alexander Kubis
    Abstract: We use a combination of measures of spatial concentration, qualitative input-output analysis and innovation interaction matrices to identify the horizontal and vertical dimension of industrial clusters in Saxony in 2005. We describe the spatial allocation of the industrial clusters and show possibilities of vertical interaction of clusters based on intermediate goods flows. With the help of region and sector-specific knowledge interaction matrices we are able to show that a sole focus on intermediate goods flows limits the identification of innovative actors in industrial clusters, as knowledge flows and intermediate goods flows do not show any major overlaps.
    Date: 2010–06
  7. By: James Alm
    Abstract: Various trends, including an increasing emphasis on fiscal decentralization; political democratization in many areas; globalization and the financial liberalization that often accompanies it; growing demands for urban services as urbanization continues in major cities around the world; all argue compellingly for finding ways to help municipalities finance large scale infrastructure. Improved urban infrastructure, for water supply, sanitation, urban transportation and solid waste management is widely believed essential in encouraging and facilitating economic growth. Evidence indicates that those countries most successful in sustaining high growth supported their cities with transformative investments to improve urban infrastructure that could accommodate rapid population growth in major economic centers. This evidence suggests that infrastructure has a strong “supplyside†orientation and in practice, it is the effects of infrastructure on “supply†that are most often emphasized. There is also a strong “demand-side†aspect: individuals and businesses value the services that flow from the stock of infrastructure facilities and these demands should be (but are often not) considered in determining the appropriate level of infrastructure investment. In addition to the potential supply-and-demand-side impacts on economic growth, the services of infrastructure also play a significant role in the distribution of income.[Working paper No. 19]
    Keywords: political democratization, liberalization, urbanization, economic growth, income
    Date: 2010
  8. By: Ghazi Boulila (Faculte des Sciences Economiques et de Gestion de Tunis, Universite de Tunis - El Manar); Chaker Gabsi; Mohamed Trabelsi (Institut des Hautes Etudes Commerciales de Carthage (IHEC))
    Abstract: This paper studies the evolution of total and regional poverty in Tunisia using the Growth Incidence Curve (GIC) approach based on individual consumption and education level from the household consumption surveys and other official publications during the period 1990-1995. Three main results are found, first, growth is pro-poor in Tunisia and poor households benefit from growth in the whole country as well as many different governorates. Second, the different social incidence curves (SGICs) using education as a social indicator confirms the fact that growth is generally pro-poor. This result means that education and human capital accumulation are important factors in decreasing poverty especially in rural areas. Third, the empirical analysis tends to confirm the existence of conditional and unconditional convergence in terms of poverty between regions, where poor governorates tend to grow more rapidly (with a high pro-poor growth) and to catch up with rich ones.
    Date: 2009–10
  9. By: stefano Colombo (DISCE, Università Cattolica)
    Abstract: The unidirectional Hotelling model where consumers can buy only from firms located on their right (left) is extended to allow for elastic demand functions. A Bertrand-type model and a Cournot-type model are considered. If firms choose location and then set prices, agglomeration never arises; instead, if firms choose location and then set quantities, agglomeration arises at one endpoint of the segment when transportation costs are low enough. Equilibrium distance between firms is lower in Cournot than Bertrand under the whole parameters’ set. We also study the impact of firms’ location on perfect collusion sustainability. We show that when consumers can buy only from firms located on their right (left), the incentive to deviate of each firm decreases the more the firm is located to the right (left) and the more the rival is located to the left (right).
    Keywords: Unidirectional Hotelling model; Location equilibrium; Collusion; Bertrand; Cournot.
    JEL: D43 L11 L41
    Date: 2010–05
  10. By: Ulrich Dilger
    Date: 2010–03–01
  11. By: Matias Busso; Jesse Gregory; Patrick M. Kline
    Abstract: This paper empirically assesses the incidence and efficiency of Round I of the federal urban Empowerment Zone (EZ) program using confidential microdata from the Decennial Census and the Longitudinal Business Database. To ground our welfare analysis, we develop a heterogeneous agent general equilibrium model in which the distortions generated by place-based policies depend upon a set of reduced form elasticities which our empirical work centers on estimating. Using rejected and future applicants to the EZ program as controls we find that EZ designation substantially increased employment in zone neighborhoods, particularly for zone residents. The program also generated wage increases for workers from zone neighborhoods worth approximately $320M per year. Based upon estimates of the number of jobs created for zone residents, we find that EZ employment credits generated deadweight costs equal to (at most) seven percent of their flow cost.
    JEL: C21 H2 O1 R58
    Date: 2010–06

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