nep-geo New Economics Papers
on Economic Geography
Issue of 2011‒04‒23
ten papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Capital allocation in the Greek regions By Liargovas , Panagiotis G.; Daskalopoulou, Irene F.
  2. The rise and fall of spatial inequalities in France: A long-run perspective By Pierre-Philippe Combes; Miren Lafourcade; Jacques-François Thisse; Jean-Claude Toutain
  3. Threshold transitions in a regional urban system By Jorge H. García; Ahjond S. Garmestani
  4. The efficiency assessment of big cities social and economic development: a system dynamics approach By Shcherbakova, Nadezda
  5. On the role of general purpose technologies within the Marshall-Jacobs controversy: The case of nanotechnologies By Menz, Nina; Ott, Ingrid
  6. Population density and regional welfare efficiency By Halkos, George; Tzeremes, Nickolaos
  7. Do State Fiscal Policies Affect State Economic Growth? By James Alm; Janet Rogers
  8. Municipal Finance of Urban Infrastructure: Knowns and Unknowns By James Alm
  9. Explaining the structure of inter-organizational networks using exponential random graph models: does proximity matter? By Tom Broekel; Matte Hartog
  10. The Turkish Wage Curve: Evidence from the Household Labor Force Survey By Baltagi, Badi H.; Baskaya, Yusuf Soner; Hulagu, Timur

  1. By: Liargovas , Panagiotis G.; Daskalopoulou, Irene F.
    Abstract: The present study analyzes the location of new economic activities in the 51 Greek prefectures (NUTS III level) as the outcome of agglomeration economies and other factors that are acknowledged as determinants of new firm location. Cross-section data referring to the location choices of firms in manufacturing, commerce, services and tourism within 2005 are used. Results indicate that agglomeration effects largely determine a region’s attractiveness and appropriateness as an investment location. In addition, the effect of other factors such as demand, expected profit and cost conditions is identified as important. Interestingly, regional characteristics seem to affect in different ways the location of start-ups belonging to different industries.
    Keywords: entrepreneurship; start-ups; location; agglomeration economies; regional development; data envelopment analysis; Greece
    JEL: L26 R11 R38
    Date: 2011
  2. By: Pierre-Philippe Combes (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - CNRS : UMR6579, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris); Miren Lafourcade (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris, Université de Valenciennes et du Hainaut Cambrésis - Université de valenciennes et du Hainaut Cambrésis); Jacques-François Thisse (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CORE - Center of Operation Research and Econometrics [Louvain] - Université Catholique de Louvain, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris - INRA); Jean-Claude Toutain (ERMES - Equipe de recherche sur les marches, l'emploi et la simulation - CNRS : FRE2887 - Université Panthéon-Assas - Paris II, Université Panthéon Sorbonne - Paris 1 - Université Panthéon-Sorbonne - Paris I)
    Abstract: This paper uses a unique database that provides value-added, employment, and population levels for the entire set of French departments for the years 1860, 1930, and 2000. These data cover three sectors: agriculture, manufacturing, and services. This allows us to study the evolution of spatial inequalities within France and to test the empirical relevance of economic geography predictions over the long run. The evidence confirms the existence of a bell-shaped evolution of the spatial concentration of manufacturing and services. In contrast, labor productivity has been converging across departments. Last, our study also confirms the presence of strong agglomeration economies during the full time-period. Market potential during the first sub-period (1860-1930), and higher education during the second (1930-2000), together with sectoral diversity, account for the spatial distribution of these gains.
    Keywords: economic geography ; agglomeration economies ; human capital ; economic history
    Date: 2011–04–15
  3. By: Jorge H. García; Ahjond S. Garmestani
    Abstract: In this paper we analyze the evolution of city size distributions over time in a regional urban system. This urban complex system is in constant flux with changing groups and city migration across existing and newly created groups. Using group formation as an emergent property, transition probabilities across the different groups were calculated. While short-term transition appears chaotic in the intermediate and lower rank groups, long-term transition across all rank groups reveals system structure over time.
    Date: 2011–01–02
  4. By: Shcherbakova, Nadezda
    Abstract: This paper examines the actual problems of social and economic development of big cities. To assess the efficiency of this development, we have made a methodology, based on a system dynamics approach which meets the modern requirements. One of the main elements of the methodology is a system dynamics model of urban development. This model helps to determine the efficiency borders of this development, the cost of urban growth, tariffs on the urban infrastructure services. The results of such calculations by the example of St. Petersburg (Russia) are given in the paper. The elaborated methodology allows us to create mechanisms for managing urban development, directed to raise living standards of city dwellers.
    Keywords: Big City; Sustainable Urban Development; System Dynamics Model
    JEL: O18 R1 C61 O21 B41
    Date: 2010–12
  5. By: Menz, Nina; Ott, Ingrid
    Abstract: This paper investigates the role of nanotechnologies as a general purpose technology for regional development. Due to pervasiveness, nanotechnologies may be utilized in diverse applications thereby providing the basis for both localization and urbanization externalities. We carry out patent and publication analyses for the city state of Hamburg during the period 1990-2010. We find evidence that nanotechnologies are advanced in the context of regional knowledge bases and follow up prevailing specialization patterns. As nanotechnologies develop both industry specific and city specific externalities become effective leading to specialization deepening and specialization widening which both are functions of the increasing nano-knowledge base. --
    Keywords: general purpose technology,nanotechnology,specialization,diversification,Marshall-Jacobs controversy,patent and publication analysis
    JEL: R11 O31
    Date: 2011
  6. By: Halkos, George; Tzeremes, Nickolaos
    Abstract: This paper demonstrates an evaluation of welfare policies and regional allocation of public investment using Data Envelopment Analysis (DEA). Specifically, the efficiency of the welfare policies of the Greek prefectures for the census years of 1980, 1990 and 2000 are compared and analyzed. The paper using bootstrap techniques on unconditional and conditional full frontier applications determines whether the government investments have been used efficiently by the local authorities in order to stimulate regional welfare among the Greek prefectures. Our empirical results indicate that there are major welfare inefficiencies among the prefectures over the three census years. The analysis reveals that the population density among the Greek prefectures hasn’t been taken into account in regional welfare planning over the years. In addition, the paper demonstrates empirically how the new advances in DEA analysis can be incorporated into different stages of regional planning investment and evaluation. In addition, the impact of external factors can be directly measured and evaluated accordingly.
    Keywords: Regional development; Welfare policies; Conditional DEA; Bootstrap techniques; Kernel density estimation
    JEL: O18 C02 P25
    Date: 2011–04
  7. By: James Alm (Department of Economics, Tulane University); Janet Rogers (Department of Planning Section, Nevada Department of Administration Division of Budget & Planning)
    Abstract: What factors influence state economic growth? This paper uses annual state (and local) data for the years 1947 to 1997 for the 48 contiguous states to estimate the effects of a large number of factors, including taxation and expenditure policies, on state economic growth. A special feature of the empirical work is the use of orthogonal distance regression (ODR) to deal with the likely presence of measurement error in many of the variables. The results indicate that the correlation between state (and state and local) taxation policies is often statistically significant but also quite sensitive to the specific regressor set and time period; in contrast, the effects of expenditure policies are much more consistent. Of some interest, there is moderately strong evidence that a state's political orientation has consistent and measurable effects on economic growth; perhaps surprisingly, a more "conservative" political orientation is associated with lower rates of economic growth. Finally, correction for measurement error is essential in estimating the growth impacts of policies. Indeed, when measurement error is considered via ODR estimation, the estimation results do not support conditional convergence in state per capita income.
    Keywords: fiscal policies, regional economic growth, orthogonal distance regression
    JEL: H2 H7 O1 O4 R1 R5
    Date: 2011–04
  8. By: James Alm (Department of Economics, Tulane University)
    Date: 2011–04
  9. By: Tom Broekel; Matte Hartog
    Abstract: A key question raised in recent years is which factors determine the structure of inter-organizational networks. While the focus has primarily been on different forms of proximity between organizations, which are determinants at the dyad level, recently determinants at the node and structural level have been highlighted as well. To identify the relative importance of determinants at these three different levels for the structure of networks that are observable at only one point in time, we propose the use of exponential random graph models. Their usefulness is exemplified by an analysis of the structure of the knowledge network in the Dutch aviation industry in 2008 for which we find determinants at all different levels to matter. Out of different forms of proximity, we find that once we control for determinants at the node and structural network level, only social proximity remains significant.
    Keywords: exponential random graph models, inter-organizational network structure, network analysis, proximity, aviation industry, economic geography
    JEL: R11 D85 L14 L62
    Date: 2011–04
  10. By: Baltagi, Badi H. (Syracuse University); Baskaya, Yusuf Soner (Central Bank of Turkey); Hulagu, Timur (Central Bank of Turkey)
    Abstract: This paper examines the Turkish wage curve using individual data from the Household Labor Force Survey (HLFS) including 26 NUTS-2 regions over the period 2005-2008. When the local unemployment rate is treated as predetermined, there is evidence in favor of the wage curve only for younger and female workers. However, if the lagged unemployment rate is used as an instrument for current unemployment rate, we find an unemployment elasticity of -0.099. We also find a higher elasticity for younger, less educated, low experienced workers than for older, more educated and more experienced workers. Another important finding is that the wages of females in Turkey are significantly more responsive to local unemployment rates than their male counterparts.
    Keywords: wage curve, fixed effects, instrumental variables, two-stage least squares
    JEL: J30 J60
    Date: 2011–04

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