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on Economic Geography |
| By: | Attila Varga (Department of Economics and Regional Studies, University of Pécs); Dimitrios Pontikakis (Institute for Prospective Technological Studies, Joint Research Centre, European Commission Seville, Spain); George Chorafakis (Research Directorate-General, European Commission Brussels, Belgium) |
| Abstract: | This paper explores the effects of intra-regional agglomeration and interregional networking on the productivity of R&D across EU regions. The paper is based on the spatial econometric modelling framework presented in Varga (2000), and further develops a methodology for estimating the dynamic effects of agglomeration and interregional networks on R&D productivity in regional knowledge creation (measured by patent applications and publications) at the level of EU regions. This empirical modelling framework is applied to classify EU regions into different tiers according to the strengths of their agglomeration effects. These effects are then compared to the network effects of interregional connectedness as reflected in regional participation in the EU Framework Programme for Research. The estimated model is used then for an assessment of the impacts of EU Framework Programme expenditures on technological development and for carrying out policy impact simulations. |
| Keywords: | Agglomeration, network effects, R&D productivity |
| JEL: | O18 O33 R11 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:pec:wpaper:2010/3&r=geo |
| By: | Elizabeth A. Mack (GeoDa Center for Geospatial Analysis and Computation; Arizona State University); Luc Anselin (GeoDa Center for Geospatial Analysis and Computation; Arizona State University); Tony H. Grubesic |
| Abstract: | Despite the volume of literature afforded knowledge work and innovations in information and communications technologies (ICTs), few studies have examined the importance of ICTs to firms in knowledge industries. This study will develop spatial econometric models to examine the relative importance of the level of broadband provision to knowledge intensive firms in select U.S. Â metropolitan statistical areas (MSAs). Results demonstrate the need for both a spatial econometric and a metropolitan area specific evaluation of this relationship. They also suggest potential spillover effects to knowledge intensive firm location, which may explain why some regional economies are relatively more successful at stimulating firm growth in this increasingly important sector of the U.S economy. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:asg:wpaper:2010-7&r=geo |
| By: | Kimhi, Ayal |
| Abstract: | In Israel, rural communities are those with up to 2000 residents, and rural areas include only rural communities. This paper explores the dependence of rural incomes on nearby urban areas. This dependence is mostly implied by rural-to-urban or urban-to-rural selective migration (or both). Migration flows can be affected by differential wages, housing costs and other amenities, and by commuting costs and costs of migration. An income generating equation, that includes characteristics of nearby urban communities as well as other spatial indicators among the explanatory variables, is estimated for rural households in Moshav villages using 2006 survey data. The results show that the population of nearby urban communities is significantly associated with rural household per-capita income. In particular, the urban population within 10 km is positively associated with per-capita income, while the urban population within 10 to 40 km is negatively associated with per-capita income. These opposite effects suggest that commuting costs are among the major determinants of the direction of the net migration of high-income households. Surprisingly, other spatial variables, including average per-capita income in nearby urban communities, do not affect rural income significantly. |
| Keywords: | Community/Rural/Urban Development, Consumer/Household Economics, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:huaedp:93134&r=geo |
| By: | Attila Varga (Department of Economics and Regional Studies, University of Pécs); Péter Járosi (Department of Economics and Regional Studies, University of Pécs); Tamás Sebestyén (Department of Economics and Regional Studies, University of Pécs) |
| Abstract: | This paper introduces the geographic macro and regional model for NUTS-2 regions of the Euro zone. This model consists of three blocks: the TFP, the SCGE and the MACRO blocks. The model is built for impact analysis of policies targeting intangible assets in the forms of R&D, human capital and social capital. The analysis can be done both at the regional and the EU macroeconomic levels. Policy simulations illustrate the capabilities of the complex model system. |
| Keywords: | TFP, SCGE models, DSGE models, impact analysis, R&D, human capital, social capital |
| JEL: | O31 H41 O40 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:pec:wpaper:2010/4&r=geo |
| By: | Mamatzakis, E; Christodoulakis, G |
| Abstract: | This paper focuses on Greek labour market dynamics at a regional base, which comprises of 16 provinces, as defined by NUTS levels 1 and 2 (Eurostat, 2008), using Markov Chains for proportions data for the first time in the literature. We apply a Bayesian approach, which employs a Monte Carlo Integration procedure that uncovers the entire empirical posterior distribution of transition probabilities from full employment to part employment, unemployment and economically unregistered unemployment and vice a versa. Our results show that there are disparities in the transition probabilities across regions, implying that the convergence of the Greek labour market at a regional base is far from being considered as completed. However, some common patterns are observed as regions in the south of the country exhibit similar transition probabilities between different states of the labour market. |
| Keywords: | Greek Regions; Employment; Unemployment; Markov Chains. |
| JEL: | C53 E24 E27 |
| Date: | 2010–08–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:24637&r=geo |
| By: | Libman, Alexander |
| Abstract: | The paper discusses the relative importance of the 'real' political actions versus the changes of symbolic nature in the bargaining over devolution, studying the case of personnel decentralization in security agencies in Russia in 2000-2007. While in the 1990s under Boris Yeltsin regional branches of federal ministries in Russia were mostly captured by regional governors, allowing them to pass acts directly contradicting federal law, in 2000s the administration of Vladimir Putin gradually replaced the heads of regional branches by new bureaucrats, supposedly without any connections to the region. The results differ for different security agencies; however, the paper finds, surprisingly, that in several cases the appointment decisions were robustly influenced rather by symbolic gestures made by regional governments in the earlier bargaining process than by the actual devolution policies of the regions. -- |
| Keywords: | Devolution,bargaining,transition economies |
| JEL: | D78 H77 P26 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fsfmwp:148&r=geo |
| By: | Alan T. Murray |
| Abstract: | Geographic information systems (GIS) have matured and proven to be an enabling technology, one that is important to many disciplines. Location analysis is also a field that has matured, and continues to evolve. In fact, the combination of GIS and location science is at the forefront of advances in spatial analysis capabilities, offering substantial potential for continued and sustained theoretical and empirical evolution. This paper provides an overview of location analysis and discusses GIS. The paper highlights how GIS has contributed to location science in terms of data input, visualization, problem solution and theoretical advances. In contrast to other reviews, the focus in this paper is to highlight the theoretical foundations of location analysis and modeling and how GIS is contributing to important advancements in this field. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:asg:wpaper:2010-1&r=geo |
| By: | Christos Ntantamis (School of Economics and Management, University of Aarhus and CREATES) |
| Abstract: | The problem of modeling housing prices has attracted considerable attention due to its importance in terms of households' wealth and in terms of public revenues through taxation. One of the main concerns raised in both the theoretical and the empirical literature is the existence of spatial association between prices that can be attributed, among others, to unobserved neighborhood effects. In this paper, a model of spatial association for housing markets is introduced. Spatial association is treated in the context of spatial heterogeneity, which is explicitly modeled in both a global and a local framework. The global form of heterogeneity is incorporated in a Hedonic Price Index model that encompasses a nonlinear function of the geographical coordinates of each dwelling. The local form of heterogeneity is subsequently modeled as a Finite Mixture Model for the residuals of the Hedonic Index. The identified mixtures are considered as the different spatial housing submarkets. The main advantage of the approach is that submarkets are recovered by the housing prices data compared to submarkets imposed by administrative or geographical criteria. The Finite Mixture Model is estimated using the Figueiredo and Jain (2002) approach due to its ability in endogenously identifying the number of the submarkets and its efficiency in computational terms that permits the consideration of large datasets. The different submarkets are subsequently identified using the Maximum Posterior Mode algorithm. The overall ability of the model to identify spatial heterogeneity is validated through a set of simulations. The model was applied to Los Angeles county housing prices data for the year 2002. The results suggests that the statistically identified number of submarkets, after taking into account the dwellings' structural characteristics, are considerably fewer that the ones imposed either by geographical or administrative boundaries. |
| Keywords: | Hedonic Models, Finite Mixture Model, Spatial Heterogeneity, Housing Submarkets |
| JEL: | C13 C21 R0 |
| Date: | 2010–08–18 |
| URL: | http://d.repec.org/n?u=RePEc:aah:create:2010-53&r=geo |
| By: | Elias Soukiazis (GEMF/Faculdade de Economia, Universidade de Coimbra, Portugal); Micaela Antunes (Faculdade de Economia, Universidade de Coimbra, Portugal) |
| Abstract: | Both the neoclassical approach associated to the Solow’s exogenous growth model and the endogenous growth theories have been criticised for being more consistent with a closed economy. In these approaches, the effects of international trade on growth and the trade deficits are not explicitly considered as impediments to economic expansion. The aim of this study is to contribute to the debate, investigating whether openness, exports share or trade balances affect regional growth in Portugal. In combination with external trade indicators, human capital is also considered as a conditional factor to growth, expressed by the rate of success in high school education. Thus, we analyse whether the combination of international trade measures and human capital is relevant to explaining regional growth in Portugal and how it affects the convergence process between regions. Additionally, interaction terms are considered to explore the existence of different performances between regions of the Littoral and the Interior zones. As an alternative to the traditional approach that considers the population growth rate, we include the share of the industrial employment as an indicator of regional specialisation. The empirical analysis estimates the conditional convergence model of the Barro’s type, applied to the Portuguese NUTS3 regions for the period 1996-2005. The estimation approach based on regional panel data and using the GMM estimation technique reveals that factors associated to external trade, human capital and reallocation of resources to more productive sectors (industry) are relevant to explain regional growth and convergence in Portugal. |
| Keywords: | conditional convergence, human capital, external trade, employment share in industry, GMM regressions, panel data. |
| JEL: | E12 F43 O11 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:gmf:wpaper:2010-13&r=geo |
| By: | Blyde, Juan |
| Abstract: | The literature examining the effects of domestic transport costs on trade flows is scarce. The few studies available rely mostly on distance-based measures as proxies of transport costs which impede analyzing the trade impacts of transport-infrastructure improvements, a critical aspect in regional and public policy. Applying a novel methodology that combines real freight costs and Geographic Information System (GIS) analysis to the case of Colombia, this paper measures the extent to which domestic transport costs -from the place of production to the port of shipment- act as a friction to international trade. Domestic transport costs are found to significantly affect the prospects of exporting. For instance, regions within the country with transport costs in the 25th percentile export around 2.3 times more than regions with transport costs in the 75th percentile, once other factors are controlled for. Export increases from road improvements are found to be larger in regions with initially higher transport costs. This is because regions with initially higher transport costs are normally associated with longer routes and those tend to have larger shares of roads in poor conditions |
| Keywords: | Transport costs; road quality; regional exports |
| JEL: | R10 F10 O2 |
| Date: | 2010–08–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:24625&r=geo |
| By: | Circella, Giovanni |
| Abstract: | Parking policies and regulations are important tools in planning for the governance of urban mobility. The proper design and location of parking facilities, in fact, contributes to an efficient use of the transportation system (or it may reduce its efficiency, when these infrastructures are not properly planned). This paper discusses the role of parking as part of the policy packages for strategic planning aimed at increasing the sustainability of urban and metropolitan areas. In particular, the integration of parking strategies in a comprehensive vision for the future of a city may significantly improve the allocation of resources and the reduction of the overall environmental externalities. The role of parking in the strategic planning of cities is discussed through the analysis of several recent projects in the city of Bari (Italy). The paper discusses the way these projects are linked (or eventually not linked) to broader strategies for urban mobility, and how they might be coordinated into policy packages that promote more sustainable transportation. The use of an integrated land use transportation modeling approach to simulate the long-term evolution of the urban area may significantly contribute to estimate the long-term effects of the proposed policies. This approach may successfully support the process of policy evaluation and the selection of the optimal strategies to implement. |
| Keywords: | UCD-ITS-RP-10-13 |
| Date: | 2010–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:1318133&r=geo |
| By: | M. Govinda Rao; Richard M. Bird (National Institute of Public Finance and Policy) |
| Abstract: | Over 330 million people live in India’s cities; 35 cities have a population of over a million and three (Mumbai, Delhi, and Kolkata) of the 10 largest metropolises in the world are in India. India’s cities are large, economically important, and growing. However, neither urban infrastructure nor the level of urban public services is adequate for current needs, let alone to meet growing demands. Dealing with this problem is a formidable challenge. Not only must adequate finance for the provision of services be found but it is critical to ensure that the money spent results in desired outputs and outcomes. To do so, local governance structures also need to be reformed and strengthened. This paper attempts to point the way towards some possible solutions by analysing urban governance and finance in India in the context of lessons drawn from fiscal federalism theory and experiences of governance institutions and financing systems both in India and around the world. No one system of urban governance is likely to work equally well for all urban local bodies. However, the paper identifies some key reforms required to realise both the constitutional intent to encourage citizen participation in urban governance and the economic and politically desirable goal of ensuring greater accountability of urban governments. For example, the paper draws attention to existing ambiguities in the assignment system and underlines the need to undertake activity mapping to ensure clarity as well as to make independent agencies significantly accountable to elected governments in urban areas. The paper also discusses a variety of ways of augmenting the resources of the municipal bodies in the country including essential reforms in the property tax system and adequate exploitation of user charges and fees for various services delivered as well as ways of strengthening and improving Central and State transfers to urban local governments. With respect to financing urban infrastructure, development charges should be used more effectively. More should also be done to utilise public lands more effectively. In addition, to a considerable extent capital expenditure requirements will have to be financed through borrowing so further development of the municipal bond market is important, as is more and more effective use of public private partnerships in some areas. |
| Keywords: | India, urban public finance, urban governance, intergovernmental fiscal relations, property tax, metropolitan areas, infrastructure finance |
| JEL: | R51 H70 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:govern:2226&r=geo |
| By: | Zorlu, Aslan (University of Amsterdam); Mulder, Clara H. (University of Amsterdam) |
| Abstract: | We examine ethnic differences in the ethnic composition of the destination neighbourhood upon leaving the parental home using administrative data for the entire birth cohort 1983 living in the Netherlands. The analysis provides little evidence of a clear intergenerational break in the location choices of young men and women from a non-western origin compared to their parents. The neighbourhood choice pattern of those who leave the parental home for independent and shared living arrangements does not differ markedly from that of their parents, while nest-leavers for union formation are more likely to move to neighbourhoods with a relatively small proportion of non-western inhabitants. A decomposition analysis indicates that an overwhelmingly large part of neighbourhood choice is explained by differences in background variables. Particularly, the origin neighbourhood type of nest-leavers seems to be a driving force underlying the choice of destination neighbourhood, given individual and parental socioeconomic characteristics. |
| Keywords: | leaving home, spatial assimilation, migrants |
| JEL: | J15 J61 |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5141&r=geo |