nep-geo New Economics Papers
on Economic Geography
Issue of 2010‒08‒14
eight papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. The territorial dimension in EU policies: issues, opportunities and an application in the sphere of tourism By Jan van der Borg; Nicola Camatti
  2. Methodologies of Analyzing Inter-Regional Income Inequality and Their Applications to Russia By Konstantin Gluschenko
  3. Spatial Transformation in Historical Perspective: Evidence from Late 19th and Early 20th Century Berlin By Wendland, Nicolai
  4. Locational signaling and agglomeration By Berliant, Marcus; Yu, Chia-Ming
  5. The Spatial Dimension of Human Development Index in Indonesia By Rullan Rinaldi; Eva Nurwita
  6. Social capital and regional social infrastructure investment: Evidence from New Zealand By Arthur Grimes; Matthew Roskruge; Philip McCann; Jacques Poot
  7. Sectoral and regional impacts of the European Carbon Market in Portugal By Margarita Robaina Alves; Miguel Rodríguez; Catarina Roseta-Palma
  8. An analysis of the neighborhood impacts of a mortgage assistance program: a spatial hedonic model By Wenhua Di; Jielai Ma; James C. Murdoch

  1. By: Jan van der Borg (Department of Economics, University Of Venice Cà Foscari); Nicola Camatti (University of Ferrara)
    Abstract: In an enlarged Europe of the regions, the need for EU policies to possess an explicit territorial dimension is undeniable. This paper, by analysing the fundamentals of the EU policies in the previous 2000-2006 and the current 2007-2013 planning period, looks at the implications of strengthening the role of space in the different policy programmes. It also looks at the specific role of tourism in EU policies and draws some conclusions regarding spatial planning at a EU level.
    Keywords: EU, regional policies, territory, tourism
    JEL: R53 R58
    Date: 2010
  2. By: Konstantin Gluschenko
    Abstract: This paper provides an overview of methodologies used to analyze inter-regional income inequality,and a critical survey of empirical studies that deal with Russian regions. It discusses implications of the growth theory regarding dynamics of inter-economy income inequality. Methodologies for empirically analyzing income inequality are classified as the cross-section approach, time series approach, and distribution dynamics approach. Specific methodologies are described within the framework of this classification, touching upon the subject of their applicability fields. The survey of studies on income inequality among Russian regions summarizes more than 30 papers grouped according to main approaches used for the analyses.
    Keywords: spatial inequality, convergence, economic growth, beta-convergence, distribution dynamics, income mobility, Russian regions.
    JEL: C20 D31 O15 O18 O41 P25 R11 R15
    Date: 2010–04–01
  3. By: Wendland, Nicolai
    Abstract: This work presents a one-of-a-kind historical data set on Berlin, Germany, from 1875 to 1936, in order to empirically test theoretical implications derived from a general Urban Economics framework in a historical context. A high level of spatial disaggregation of the data allows for assessing the role of rail-based public infrastructure in the generation of effective market access, and property prices within a rapidly growing and very dynamic urban area. It furthermore analyses the transport network’s influence on urban decentralization and changing spatial patterns of economic activity. The development of a multi-level centrality indicator provides the opportunity to assess the contribution of generated market access to the emergence of gradually dispersed commercial activity and sub-centers. While working with both cross-sectional and time-difference estimates, the variation in transport technology serves to test for a gradual change in accessibility and hence the marginal effects of reduced transport costs and increased proximity to stations on historical land values, which are presented at block level. While endogenously determining the moving center of gravity (CBD) over time, it additionally features the observation of both land gradients and travel time gradients in order to test for variation in the city structure until a possible break-up of the historically evolved monocentric equilibrium. Results suggest that centrality generated by the public railway system had a major influence on (re-)location decisions for firms within a growing and decentralizing urban area, which permanently changed the urban patterns. While both a reduction in distance to a station and a reduction of transport costs to the CBD led to a significant premium paid for commercially used plots, which basically supports tendencies towards a rather polycentric structure, the evolution of land gradients in combination with travel time gradients indicates that the monocentric city model still fitted Berlin’s structure until the mid-20th century.
    Date: 2010–06–02
  4. By: Berliant, Marcus; Yu, Chia-Ming
    Abstract: Agglomeration can be caused by asymmetric information and a locational signaling effect: The location choice of workers signals their productivity to potential employers. The cost of a signal is the cost of housing at a location. When workers' marginal utility of housing is negatively correlated with their productivity, skill-biased technological change causes a core-periphery bifurcation where the agglomeration of high-skill workers eventually constitutes a unique stable equilibrium. When workers' marginal utility of housing and their productivity are positively correlated, skill-biased technological improvements will never result in a core-periphery equilibrium. Location can at best be an approximate rather than a precise sieve for high-skill workers.
    Keywords: Agglomeration; Adverse Selection; Asymmetric Information; Locational Signaling
    JEL: R13 D82 D51
    Date: 2010–07–29
  5. By: Rullan Rinaldi (Department of Economics, Padjadjaran University); Eva Nurwita (Department of Economics, Padjadjaran University)
    Abstract: As the new paradigm of economic development pioneered by UNDP and Mahbub Ul-Haq undertaken, development processes no longer viewed as monodimensional process of economic growth indicated by GDP growth solely. Human Development Index on the other side offer an indicator that takes into account other aspecta as proxies of life quality such as life expectancy and literacy rate wrapped as a composite index. Several previous researches has try to explain the determinant of HDI, but as HDI was start to calculated at sub national level, the complexity of the task to explain the determinants was escalating due the fact that sub national data has geographical information attached in it. This paper tries to explain the spatial pattern on HDI achievement at sub national level in Indonesia, and estimate the determinants of HDI using spatial econometrics method. The use of the tools based on the necessity to put into account spatial dependence as special form of cross-sectional serial correlation, which is a common situation in observations that has geographical information.
    Keywords: Human Development Index, Spatial Econometrics, Sub National Data
    JEL: O15 R58 R11
    Date: 2010–06
  6. By: Arthur Grimes (Motu Economic and Public Policy Research); Matthew Roskruge; Philip McCann (Department of Economics, University of Waikato and Faculty of Spatial Sciences, University of Groningen); Jacques Poot (University of Waikato)
    Abstract: In this paper we link unique data on local social infrastructure expenditure with micro-level individual survey data of self-reported social capital measures of trust and participation in community activities. We use both probit and tobit models to estimate the impact of social infrastructure expenditure on social capital formation. Our results imply that the links between social capital, demographic characteristics, human capital, geography and public social infrastructure investment are rather more subtle and complex than much of the literature implies. While we find evidence in support of many of the hypothesized relationships discussed in the social capital literature, our results also suggest that the impact of public social infrastructure investment is affected by both selection effects and free rider processes.
    Keywords: Social capital, trust, participation, public infrastructure, demography, geography
    JEL: D71 J18 O18 R23 R51
    Date: 2010–03
  7. By: Margarita Robaina Alves (Universidade de Aveiro); Miguel Rodríguez (Facultade Empresariais e Turismo, 32004 Ourense, Spain); Catarina Roseta-Palma (Department of Economics and ERC-UNIDE, ISCTE-Lisbon University Institute)
    Abstract: Across Europe, CO2 emission permits represent one of the main policy instruments to comply with the limits established by the European Commission to achieve the goals of the Kyoto Protocol. In this paper we use microdata to address two issues regarding the impact of the European Carbon Market (EU ETS). On the one hand, we analyse the sectoral effects of the EU ETS in Portugal. The main goal is to study the outcomes of this policy in terms of the transactions carried out between sectors, as well as the distributive consequences. On the other hand, we also look at the regional impact. The pre-existing specialization of different regions in the production of different goods and services might lead to an uneven economic impact of the new permit market. In particular, Portuguese data indicate a distribution of revenue from low income to high income regions, or rather, between installations located in those regions. We focus on the first two years of operation of the EU ETS, using data for each one of the 244 Portuguese installations regulated by this market as well as financial data for 80% of these installations
    Keywords: Regional impact, sectoral impact, tradable CO2 permits, European Carbon Market.
    JEL: Q48 Q52 R38
    Date: 2010–07
  8. By: Wenhua Di; Jielai Ma; James C. Murdoch
    Abstract: Down-payment or closing-cost assistance is an effective program in addressing the wealth constraints of low- and moderate-income homebuyers. However, the spillover effect of such programs on the neighborhood is unknown. This paper estimates the impact of the City of Dallas Mortgage Assistance Program (MAP) on nearby home values using a hedonic model of home sales from 1990 to 2006. We define neighborhoods of 1,000 feet around each sale and estimate the average differences in sales prices between neighborhoods with various numbers of MAP properties before and after their appearance. We find that MAP properties tend to locate in neighborhoods with lower property values; however, unless a concentration of MAP properties forms, the infusion of MAP properties has little detrimental impact on neighboring property values. Moreover, low concentration of MAP properties has a modest positive impact on surrounding property values.
    Keywords: Housing policy ; Mortgage loans ; Home ownership ; Housing subsidies
    Date: 2010

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