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on Economic Geography |
| By: | Ulrich Zierahn (University of Kassel); |
| Abstract: | Regional labor markets are characterized by huge disparities of unemployment rates. Models of the New Economic Geography explain how disparities of regional goods markets endogenously arise but usually assume full employment. This paper discusses regional unemployment disparities by introducing a wage curve based on efficiency wages into the New Economic Geography. The model shows how disparities of regional goods and labor markets endogenously arise through the interplay of increasing returns to scale, transport costs, congestion costs, and migration. In result, the agglomeration pattern might be catastrophic or smooth depending on congestion costs. The transition between both patterns is smooth. |
| Keywords: | regional unemployment, New Economic Geography, core-periphery, wage curve, labor migration |
| JEL: | J64 R12 R23 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201106&r=geo |
| By: | R. Patuelli; N. Schanne; D. A. Griffith; P. Nijkamp |
| Abstract: | The geographical distribution and persistence of regional/local unemployment rates in heterogeneous economies (such as Germany) have been, in recent years, the subject of various theoretical and empirical studies. Several researchers have shown an interest in analysing the dynamic adjustment processes of unemployment and the average degree of dependence of the current unemployment rates or gross domestic product from the ones observed in the past. In this paper, we present a new econometric approach to the study of regional unemployment persistence, in order to account for spatial heterogeneity and/or spatial autocorrelation in both the levels and the dynamics of unemployment. First, we propose an econometric procedure suggesting the use of spatial filtering techniques as a substitute for fixed effects in a panel estimation framework. The spatial filter computed here is a proxy for spatially distributed region-specific information (e.g., the endowment of natural resources, or the size of the ‘home market’) that is usually incorporated in the fixed effects parameters. The advantages of our proposed procedure are that the spatial filter, by incorporating region-specific information that generates spatial autocorrelation, frees up degrees of freedom, simultaneously corrects for time-stable spatial autocorrelation in the residuals, and provides insights about the spatial patterns in regional adjustment processes. We present several experiments in order to investigate the spatial pattern of the heterogeneous autoregressive parameters estimated for unemployment data for German NUTS-3 regions. We find widely heterogeneous but generally high persistence in regional unemployment rates. |
| JEL: | C21 C23 R12 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp743&r=geo |
| By: | G. Guerra; R. Patuelli |
| Abstract: | Theoretical and empirical research suggests a connection between the presence of role models and the emergence of entrepreneurs. Existing entrepreneurs may act as role models for self-employment candidates by providing successful examples. By explicitly considering the self-employment rates of the natives, which may influence locally the decisions of immigrants towards entrepreneurship, we develop a simple model that explains immigrant self-employment rates for a sample of 2,490 Swiss municipalities. In addition, we accommodate for the presence of spatial spillovers in the distribution of rates, and test a spatial autoregressive model which takes into account the average self-employment rates of immigrants living in nearby municipalities. Our evidence shows a significant (positive) effect of such spatial network effects, which are characterized by a quick distance decay, suggesting spatial spillovers at the household and social network level. Additionally, we show that local conditions and immigrant pool characteristics differ, with respect to self-employment choices, when examining separately urban and rural contexts. |
| JEL: | C21 J24 J61 O15 R13 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp745&r=geo |
| By: | Karlsson, Charlie (Jönköping International Business School); Picard, Robert (Jönköping International Business School) |
| Abstract: | Large media clusters have emerged in a limited number of large cities, characterizing the geographical concentration of the global media industry. This paper explores the reasons behind the localization patterns of media industries, the effect of the rapid advancement of Information and Communication Technologies (ICT) on media clusters and the role of media cluster policies. One might draw the conclusion that with the developments of the ICT sector and the fact that there are no raw materials or physical goods that should be transported in the media industry; media firms could locate anywhere and the urban regions would no longer host any clusters of media firms. Various reasons are provided as to why strong tendencies of media firms to cluster in large cities should still be expected and why media clusters differ from other clusters. The paper concludes that it is the type and form of interaction and transactions that matter and new communication technologies are mainly compliments to the still essential face-to-face interaction in the media industry. Policy makers have promoted agglomeration in both large and small cities since they have recognized that some media industries are encouraging economic growth and employment creation. Approaches to cluster governance and motivations for cluster policies are highlighted in the paper. Furthermore, different topics of future research challenges connected to media clusters are presented. |
| Keywords: | Clustering; media industry; media cluster policies; creative industry; Information and Communication Technology; Weightless Economy; regional development; agglomeration |
| JEL: | R11 R58 |
| Date: | 2011–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0246&r=geo |
| By: | Santolini, Raffaella |
| Abstract: | The empirical literature shows that incumbent politicians move expenditure from one budget item to another before elections and under different electoral systems in order to capture voter consensus and gain re-election. However, little attention has been paid to measurement of the degree of spending items manipulation by incumbents in these circumstances. The aim of this paper is therefore to fill this gap by conducting an empirical investigation on a panel of Italian regions. Measuring the degree of spending items manipulation with the Hirschman-Herfindahl index of fragmentation, I find that total public expenditure is more fragmented when the regional electoral system moves from a proportional towards a mixed electoral system. In the panel dynamic analysis, the manipulation of regional spending items is on average 15%. Weak evidence is also found for more fragmented expenditure before regional elections. In this case, the manipulation is about 6-7%. I refine the analysis by considering only the fragmentation of current and capital expenditure. The results confirm that a shift towards a mixed electoral system produces more expenditure fragmentation in Italian regions. No robust evidence is found for expenditure concentration when regional elections are forthcoming. |
| Keywords: | Total expenditure fragmentation; Current and capital Expenditure fragmentation; Electoral rule; Electoral cycle |
| JEL: | H72 D72 |
| Date: | 2011–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:29724&r=geo |
| By: | Spitzer, Matthew L; Talley, Eric |
| Keywords: | Law |
| Date: | 2011–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:oplwec:1898898&r=geo |
| By: | Carl GAIGNÉ (INRA, French National Institute for Agricultural Research (France)); Stéphane Riou (UMR CNRS 5824 GATE Lyon-Saint-Etienne, Université de Saint-Etienne (France)); Jacques-François THISSE (CORE, Université catholique de Louvain (Belgium), Université du Luxembourg, CEPR, and RIEB, Kobe University) |
| 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 intraurban 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 may be more environmentally desirable. |
| Keywords: | greenhouse gas, commuting costs, transport costs, cities; urbancontainment policy |
| JEL: | D61 F12 Q54 Q58 R12 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2011-15&r=geo |
| By: | Charles Raux (LET - Laboratoire d'économie des transports - CNRS : UMR5593 - Université Lumière - Lyon II - Ecole Nationale des Travaux Publics de l'Etat); Tai-Yu Ma (LET - Laboratoire d'économie des transports - CNRS : UMR5593 - Université Lumière - Lyon II - Ecole Nationale des Travaux Publics de l'Etat); Iragaël Joly (GAEL - Economie Appliquée de Grenoble - INRA : UR1215 - Université Pierre Mendès-France - Grenoble II); Vincent Kaufmann (LaSUR - Laboratoire de sociologie urbaine - École Polytechnique Fédérale de Lausanne); Eric Cornelis (Groupe de recherche sur les transports - Facultés Universitaires Notre-Dame de la Paix); Nicolas Ovtracht (LET - Laboratoire d'économie des transports - CNRS : UMR5593 - Université Lumière - Lyon II - Ecole Nationale des Travaux Publics de l'Etat) |
| Abstract: | A study of daily time allocation to travel and out-of-home activity is conducted across eight European cities over three countries: France (Lyon, Grenoble, Strasbourg and Rennes), Switzerland (Geneva, Bern and Zurich) and Belgium (Brussels), based on individual travel survey data collected between 1997 and 2006. The effects of socio-demographic, spatial context, transport availability and city-specific variables are investigated thanks to the Cox proportional hazard model. The results indicate that socio-demographic characteristics and city (or country) specific effect play a major role while residential density and proximity to high level road or public transport networks have a very limited impact on time budgets for travel and out-of-home activities. |
| Keywords: | Travel ; Activity ; Time allocation ; Cities ; Europe ; Duration model |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00578085&r=geo |
| By: | Arimoto, Yutaka; Nakajima, Kentaro; Okazaki, Tetsuji |
| Abstract: | We examine two sources of productivity improvement in the specialized industrial clusters of the early twentieth century Japanese silk-reeling industry. Agglomeration improves the productivity of each plant through positive externalities, shifting plant-level productivity distribution to the right. Selection expels less productive plants through competition, truncating distribution on the left. We find no evidence confirming a right shift in the distribution in clusters or that agglomeration promotes faster productivity growth. Rather, the distribution in clusters was severely left truncated, even for younger plants. These findings imply that the plant-selection effect was the source of higher productivity in the Japanese silk-reeling clusters. |
| Keywords: | Economic geography, Heterogenous firms, Industrial clusters, Productivity, R12, O18 |
| JEL: | L10 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hitcei:2010-11&r=geo |
| By: | Stefan Krabel (Internationales Zentrum für Hochschulforschung (INCHER)); Choni Flöther (Institut für Volkswirtschaftslehre: Fachgebiet Allg. Wirtschaftspolitik) |
| Abstract: | In this study we trace university graduates’ labor mobility when entering the labor market after graduation. We examine to what extent such mobility is determined by regional factors of the university region, personal characteristics of graduates as well as their field of study. Our analysis is based on a large-scale dataset of labor market mobility of individuals who graduated from 36 German universities in 2007. Our results suggest that graduates are less likely to leave metropolises and that regional labor markets influence mobility. Further, field of study and individual willingness to be mobile, as indicated by prior mobility from school to university and mobility during the studies, impact mobility when entering the labor market. These results indicate that both regional and individual factors influence graduate mobility. Moreover, by applying a two-stage model approach we find that mobility is mediated by the probability to find regular employment. |
| Keywords: | Regional Mobility, Regional Characteristics, University, Graduates, Employment, Labor Markets |
| JEL: | J62 J64 R11 I21 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201110&r=geo |
| By: | Peter Robinson (Institute for Fiscal Studies and London School of Economics) |
| Abstract: | <p>Nonparametric regression with spatial, or spatio-temporal, data is considered. The conditional mean of a dependent variable, given explanatory ones, is a nonparametric function, while the conditional covariance reflects spatial correlation. Conditional heteroscedasticity is also allowed, as well as non-identically distributed observations. Instead of mixing conditions, a (possibly non-stationary) linear process is assumed for disturbances, allowing for long range, as well as short-range, dependence, while decay in dependence in explanatory variables is described using a measure based on the departure of the joint density from the product of marginal densities. A basic triangular array setting is employed, with the aim of covering various patterns of spatial observation. Sufficient conditions are established for consistency and asymptotic normality of kernel regression estimates. When the cross-sectional dependence is sufficiently mild, the asymptotic variance in the central limit theorem is the same as when observations are independent; otherwise, the rate of convergence is slower. We discuss application of our conditions to spatial autoregressive models, and models defined on a regular lattice.</p> |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:cemmap:11/11&r=geo |
| By: | Wouter Vermeulen; Jan Rouwendal |
| Abstract: | Residential development at the urban fringe raises the cost of trips to open space. We derive a simple expression for the tax that internalizes this effect of sprawl in a monocentric city andapply it using survey data on recreational activity. |
| JEL: | Q26 R13 R52 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:173&r=geo |
| By: | D. Engel; T. Mitze; R. Patuelli; J. Reinkowski |
| Abstract: | In this paper, we evaluate the R&D enhancing effects of two large public grant schemes aiming at encouraging the performance of firms organized in clusters. These are Germany's well known BioRegio and BioProfile contests for which we compare the research performance of winning regions in contrast with non-winning and non-participating comparison regions. We apply Difference-in-Difference estimation techniques in a generalized linear model framework, which allows to control for different initial regional conditions in the biotechnology related R&D activity. Our econometric findings support the view that winners generally outperform non-winning participants during the treatment period, thus indicating that exclusive funding as well as the stimulating effect of being a “winner" seems to work in the short-term. In contrast, no indirect impacts stemming from a potential mobilizing effect of the contest approaches have been detected. Also, we find only limited evidence for long-term effects of public R&D grants in the post-treatment period. The results of our analysis remain stable if we additionally augment the model to account for the particular role of spatial dependence in the R&D outcome variables. |
| JEL: | O38 R38 C23 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp744&r=geo |