nep-geo New Economics Papers
on Economic Geography
Issue of 2010‒07‒17
ten papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Agglomeration and the Effects of Regional Transfer Schemes By von Ehrlich-Treuenstätt, Maximilian
  2. The Hierarchy of Roads, the Locality of Traffic, and Governance By David Levinson; Shanjiang Zhu
  3. EU Cohesion Aid to Spain: a data set Part I: 2000-06 Planning Period By Angel de la Fuente
  4. Are compact cities environmentally friendly? By Carl Gaigné; Stéphane Riou; François Thisse
  5. Essays on Agglomeration and Inter-Jurisdictional Competition By Koh, Hyun-Ju
  6. Importancia económica de las características fonéticas del idioma español y sus variedades regionales By Germán Coloma
  7. Spatial complementarity of FDI: example of transition countries By Oleksandr Shepotylo
  8. Regional inequalities in Italy in the long run (1891-2001): the pattern and some ideas to explain it By Emanuele Felice
  9. Infrastructure and cluster development By Ayele, Gezahegn; Moorman, Lisa; Wamisho, Kassu; Zhang, Xiaobo
  10. Residential Land Use Regulation and the US Housing Price Cycle Between 2000 and 2009 By Huang, Haifang; Tang, Yao

  1. By: von Ehrlich-Treuenstätt, Maximilian
    Date: 2010–01–22
  2. By: David Levinson; Shanjiang Zhu (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: This study investigates the usage of road networks both within and outside of home jurisdictions (city (or town) and county of residence) by analyzing GPS data collected in the Minneapolis - Saint Paul metropolitan area, which tracked volunteersÕ travel behavior to determine which roads (and thus which class of roads) users chose to accommodate their travel needs. More than half of the travel on county roads and city streets occur outside of oneÕs home city, but most travel is within oneÕs home county. The average share of travel distance in the home county is more than 70% for both county and city streets. The high share, which does not even account for non-residents destined for the county to work or shop, e.g., implies that the free rider problem on city and county streets at the county level is minimal. Of particular con- cern is travel on city roads in cities other than oneÕs own. To the extent that this is to go to a destination in that city, that travel is also local. However, because city and county roads are typically funded by those jurisdictions from land-based sources such as property taxes, through trips with neither end in the city through which they are traveling are in a very real sense "free riders", and pose a problem. With growing trip lengths and emerging economies of scale in road management, it may be appropriate to consider moving more roads from township, town, or city level to the county level of government.
    Keywords: Transportation financing, GPS, road utilization, hierarchy of roads, transportation governance
    JEL: R41 R48 R53
    Date: 2010
  3. By: Angel de la Fuente
    Abstract: In this paper we construct a data set on EU cohesion aid to Spain during the planning period 2000- 06. The data are disaggregated by region, year and function and attempt to approximate the timing of actual executed expenditure on assisted projects.
    Keywords: Structural Funds, EU Cohesion policy
    JEL: R58
    Date: 2010–06
  4. By: Carl Gaigné; Stéphane Riou; François Thisse
    Abstract: .There is a large consensus among international institutions and national governments to favor urban-containment policies –the compact city– as a way to improve the ecological performance of the urban system. This approach overlooks a fundamental fact: what matters for the ecological outcome of cities is the mix between the level of population density and the global pattern of activities. As expected, when both the intercity and intra-urban distributions of activities are given, a higher population density makes cities more environmentally friendly. However, once we account for the fact that cities may be either monocentric or polycentric as well as for the possible relocation of activities between cities, the relationship between population density and the ecological performance of cities appears to be much more involved. Indeed, because changes in population density affect land rents and wages, firms and workers are incited to relocate, thus leading to new commuting and shipping patterns. We show that policies favoring the decentralization of jobs in big cities may be more desirable because they both reduce pollution and improve welfare.
    Keywords: greenhouse gas, commuting costs, transport costs, cities; urban-containment policy
    JEL: D61 F12 Q54 Q58 R12
    Date: 2010
  5. By: Koh, Hyun-Ju
    Date: 2010–01–22
  6. By: Germán Coloma
    Abstract: This paper tries to quantify economically the importance of five phonetic haracteristics (seseo, yeismo, /s/-aspiration, rehilamiento, and /x/-aspiration) whose presence or absence allows to distinguish among ten regional varieties of Spanish. To do that we perform an analysis of the extension of those characteristics and we estimate which of them correspond to the “average speaker” of Spanish, which end up being identical to the ones of the so-called “modern Andean Spanish”. Through estimations of per capita income, however, we find that the characteristic associated with a higher income level is the absence of seseo, typical of the Northern Peninsular Spanish. Finally, through a statistical regression analysis, we find that such characteristic is associated with an average annual per capita income which is US$ 24,500 higher than the one of Spanish speakers that possess seseo. We also find that the only additional characteristic that is statistically significant as a signal of a higher income is rehilamiento, which is associated with an average annual per capita income that is US$ 4,500 higher than the one of speakers that do not possess that characteristic.
    Keywords: características fonéticas, variedades regionales del español, hablante promedio, ingreso per cápita, regresión estadística
    Date: 2010–07
  7. By: Oleksandr Shepotylo (Kyiv School of Economics, Kyiv Economics Institute)
    Abstract: This paper investigates spatial determinants of FDI location. In particular, FDI in neighboring countries and foreign market potential are two variables it focuses on. The sample includes a panel of 27 transition countries in 1993-2007. The spatial links are found positive and economically large. Omitting spatial FDI leads to a serious misspecication of the model and biases estimation of the coecient of the foreign market potential variable, which is found to be a non-robust determinant of FDI location. As the analysis of sub-samples of the data indicates, the FDI complementarity is stronger for the CIS countries and for earlier period. The spatial complenmentarity is stronger for disaggregated data such as bilateral FDI flows and industry level data. I nd substantial heterogeneity of spatial FDI spillovers across indus- tries. Spillovers are large and positive for services sectors and non-sighicant or even negative for manufacturing sectors.
    Keywords: foreign direct investments, spatial econometrics, transition
    JEL: C21 F21 P33
    Date: 2010–06
  8. By: Emanuele Felice
    Abstract: The article in the first instance aims to present the pattern of regional inequality in Italy over the long run, through benchmark years, for what regards per capita value added, but also human capital (education) and social capital. Secondly, the Italian case is discussed in view of the neoclassical approach, which incorporates human and social capital as conditioning variables in a long term production function, through both cross-section and dynamic panel regressions. The results are compared with those from descriptive statistics, concluding that the neoclassical modelling can hardly add something more to a mere correlation evidence. As a consequence, this paper explores the viability of alternative approaches, which should properly consider historical changes in technology, in institutions and in the production function, and briefly reviews the research to come in order to implement a dynamic model
    JEL: E01 E10 N93 N94 R11
    Date: 2010–06
  9. By: Ayele, Gezahegn; Moorman, Lisa; Wamisho, Kassu; Zhang, Xiaobo
    Abstract: Rural nonfarm development plays a key role in generating employment in many developing countries. Clustering is an important form of industrial organization in the rural nonfarm sector. Based on a primary survey of both urban and rural handloom weaver clusters in Ethiopia, one of the country’s most important rural nonfarm sectors, this paper examines the mechanism and performance of clustering. That cluster-based handloom production survives even in remote rural areas illustrates its vitality in restricted environments. In the absence of financial institutions, clustered producers set up interconnected trade credit linkages to ease working capital constraints. Moreover, geographical clustering enables entrepreneurs with limited capital to enter the business through shared workspaces and fine division of labor. Despite the viability of the clustering model of production operating in harsh environments, an improvement in infrastructure can further enhance firm performance in a cluster. Our survey indicates that producers in electrified towns work longer hours than those in towns without electricity. In addition, the rental cost of shared lit workspaces is minimal, attracting more poor entrepreneurs to participate in handloom production than would otherwise be possible.
    Keywords: Development strategies, handloom weavers, industrial clustering, productivity,
    Date: 2010
  10. By: Huang, Haifang (University of Alberta, Department of Economics); Tang, Yao (Department of Economics, Bowdoin College)
    Abstract: In a sample covering more than 300 cities in the US between January 2000 and July 2009, we find that more restrictive residential land use regulations and geographic land constraints are linked to larger booms and busts in housing prices. The natural and man-made constraints also amplify price responses to an initial positive mortgage-credit supply shock, leading to greater price increases in the boom and subsequently bigger losses.
    Keywords: residential land use regulation; credit expansion; housing prices
    JEL: R30
    Date: 2010–07–07

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