nep-geo New Economics Papers
on Economic Geography
Issue of 2011‒08‒22
fifteen papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Net migration and convergence in Portugal By Martinho, Vítor João Pereira Domingues
  2. What said the new economic geography about Portugal? An alternative approach By Martinho, Vítor João Pereira Domingues
  3. Net migration and convergence in Portugal. An alternative analysis By Martinho, Vítor João Pereira Domingues
  4. Disentangling spillover effects of antibiotic consumption: a spatial panel approach By Laura González; Giuliano Masiero
  5. The regional employment impacts of renewable energy expenditures: The case for modelling By Grant Allan; Michelle Gilmartin
  6. The Decoupling of Affluence and Waste Discharge under Spatial Correlation: Do Richer Communities Discharge More Waste? By Daisuke Ichinose; Masashi Yamamoto; Yuichiro Yoshida
  7. Patent licensing in spatial competition: Does pre-innovation cost asymmetry matter? By Poddar, Sougata; Bouguezzi , Fehmi
  8. Measuring University Contributions to Regional Economies: A Discussion of Guidelines for Enhancing Credibility By Swenson, David A.
  9. Key Mobility Challenges in Indian Cities By Geetam Tiwari
  10. Migration in Arctic Alaska: Empirical Evidence of the Stepping Stones Hypothesis By E. Lance Howe; Lee Huskey; Matthew D. Berman
  11. Fiscal Federalism, Public Capital Formation, and Endogenous Growth By Liutang Gong; Heng-fu Zou
  12. Do supermarkets reduce the number of traditional bookshops? An empirical application to the textbook market in Spain By Aday Hernandez; Juan Luis Jimenez
  13. Struttura socio-economica del Comune di Carbonia: analisi del contesto territoriale By Merche, Nicola
  15. More than you can handle : decentralization and spending ability of Peruvian municipalities By Loayza, Norman V.; Rigolini, Jamele; Calvo-Gonzalez, Oscar

  1. By: Martinho, Vítor João Pereira Domingues
    Abstract: This work aims to present a project of research about the identification of the determinants that affect the mobility of labor from 1991 to 2001 (at NUTs III level). As main conclusion it can be said which is confirmed the existence of some labor mobility in Portugal and that regional mobility is mainly influenced positively by the availability of housing. This study analyses, also, through cross-section estimation methods, the influence of spatial effects in the conditional product convergence in the parishes’ economies of mainland Portugal between 1991 and 2001. Taking into account the estimation results, it is stated that there are not indications of convergence (the population is in the littoral of Portugal) and it can be seen that spatial spillover effects, spatial lag and spatial error condition the convergence of product of Portuguese parishes in the period under consideration.
    Keywords: net migration; convergence theory; panel and cross-section estimations; Portuguese regions
    JEL: O18 O47 C21 R23
    Date: 2011
  2. By: Martinho, Vítor João Pereira Domingues
    Abstract: With this work we try to analyse the agglomeration process in Portugal, using the New Economic Geography models, in a linear and in a non linear way. In a non linear way, of referring, as summary conclusion, that with this work the existence of increasing returns to scale and low transport cost, in the Portuguese regions, was proven and, because this, the existence of agglomeration in Portugal. We pretend, also, in a linear way to explain the complementarily of clustering models, associated with the New Economic Geography, and polarization associated with the Keynesian tradition. As a summary conclusion, we can say which the agglomeration process shows some signs of concentration in Lisboa e Vale do Tejo and the productivity factor significantly improves the results that explain the regional clustering in Portugal. The aim of this paper is to analyze, yet, the relationship between the regional industry clustering and the demand for labor by companies in Portugal. Again, the results are consistent with the theoretical developments of the New Economic Geography, namely the demand for labor is greater where transport costs are lower and where there is a strong links "backward and forward" and strong economies of agglomeration.
    Keywords: new economic geography; linear and non linear models; Portuguese regions
    JEL: O18 C23 R12 R23
    Date: 2011
  3. By: Martinho, Vítor João Pereira Domingues
    Abstract: In this work we pretend to present a project of research about the identification of the determinants that affect the mobility of labor. The empirical part of the work will be performed for the NUTS II of Portugal, from 1996 to 2002. As main conclusion it can be said which is confirmed the existence of some labor mobility in Portugal and that regional mobility is mainly influenced positively by the output growth and negatively by the unemployment rates and by the weight of the agricultural sector. This study analyses, also, through cross-section estimation methods, the influence of spatial effects and human capital in the conditional productivity convergence in the economic sectors of NUTs III of mainland Portugal between 1995 and 2002.
    Keywords: net migration; convergence; panel and cross-section estimations; Portuguese regions
    JEL: O18 O47 C23 R11 C21 R23
    Date: 2011
  4. By: Laura González (Department of Economics, University of Lugano, Switzerland); Giuliano Masiero (Department of Economics and Technology Management, University of Bergamo, Italy)
    Abstract: Literature on socioeconomic determinants of antibiotic consumption in the community is limited to few countries using cross-sectional data. This paper analyses regional variations in outpatient antibiotics in Italy using a balanced panel dataset covering the period 2000-2008. We specify an econometric model where antibiotic consumption depends upon demographic and socioeconomic characteristics of the population, the supply of health care services in the community, and antibiotic copayments. The model is estimated by means of Ordinary least squares techniques with fixed effects (FE). The implications of consumption externalities across geographical areas are investigated by means of spatial-lag and spatial-error models (SLFE and SEFE). We find significant and positive income elasticity and negative effects of copayments. Antibiotic use is also affected by the age structure of the population and the supply of community health care. Finally, we find evidence of spatial dependency in the use of antibiotics across regions. This suggests that regional policies (e.g. public campaigns) aimed at increasing efficiency in antibiotic consumption and controlling bacterial resistance may be influenced by policy makers in neighbouring regions. There will be scope for a strategic and coordinated view of regional policies towards the use of antibiotics.
    Keywords: Antibiotic consumption, Socioeconomic inequalities, Spatial dependency, Regional policies.
    JEL: I0 C3
    Date: 2011–08
  5. By: Grant Allan (Fraser of Allander Institute, University of Strathclyde); Michelle Gilmartin (Fraser of Allander Institute, University of Strathclyde)
    Abstract: One aspect of the case for policy support for renewable energy developments is the wider economic benefits that are expected to be generated. Within Scotland, as with other regions of the UK, there is a focus on encouraging domesticallyâ€based renewable technologies. In this paper, we use a regional computable general equilibrium framework to model the impact on the Scottish economy of expenditures relating to marine energy installations. The results illustrate the potential for (considerable) ‘legacy’ effects after expenditures cease. In identifying the specific sectoral expenditures with the largest impact on (lifetime) regional employment, this approach offers important policy guidance.
    Keywords: Renewable energy policy; regional economic impacts; computable general equilibrium modelling.
    JEL: C68 R11 R58
    Date: 2011–08
  6. By: Daisuke Ichinose (Tohoku University of Community Service and Science); Masashi Yamamoto (University of Toyama); Yuichiro Yoshida (National Graduate Institute for Policy Studies)
    Abstract: Although there are many studies on the environmental Kuznets curve, very few of them address municipal solid waste cases, and there is still controversy concerning the validity of the waste Kuznets curve hypothesis. In this paper, we provide empirical evidence for the waste Kuznets curve hypothesis by applying spatial econometrics methods to municipal-level data in Japan. To our knowledge, this is the first study that finds valid evidence for the waste Kuznets curve hypothesis in the absolute decoupling manner. The successful result owes in part to our highly disaggregated data and also to the use of a spatial econometric model that takes into account the mimicking behavior among neighboring municipalities. The former indicates that distinguishing between household and business waste is the key to revealing the waste–income relationship, while the latter implies the importance of peer effects when municipal governments formulate waste-reduction policies.
    Date: 2011–08
  7. By: Poddar, Sougata; Bouguezzi , Fehmi
    Abstract: We consider the optimal licensing strategy of an insider patentee in a circular city of Salop’s model and in a linear city of Hotelling’s model when firms have asymmetric pre-innovation marginal costs of production and compete in prices. We completely characterize the optimal licensing policies using a fixed fee and per-unit royalty under the drastic and non-drastic innovations. We find that when the innovative firm is efficient compared to the licensee at the pre-innovation stage then the results regarding optimal licensing policy coincide with the results described in the literature with symmetric firms. However, this is not true when the innovative firm is inefficient in the pre-innovation stage compared to the licensee. To that end, we show that even a drastic innovation can be licensed using a royalty scheme when the patentee is highly inefficient compared to licensee in the pre-innovation stage and the size of the innovation is intermediate. We also show that in this set-up, fixed fee licensing is never optimal.
    Keywords: Innovation; Technology transfer; Salop model; Hotelling model; Patent licensing; symmetric and asymmetric costs
    JEL: L13 D45 D43
    Date: 2011–08–12
  8. By: Swenson, David A.
    Abstract: In light of tight state fiscal accounts, increased competition among all government service providers for scarce resources, and a poorly performing national economy, public universities are under increasing pressure to demonstrate their worth to regional or statewide economies.  This has resulted in a proliferation of university economic impact studies.This paper is a guide to assist public university economic impact practitioners plan, structure, evaluate, and disseminate higher education economic information that can be used for policy development, general planning, and overall university relations.  It provides some basic considerations, cautions, and checks that university economic impact studies should keep in mind when engaging in this activity. 
    Date: 2011–08–08
  9. By: Geetam Tiwari
    Abstract: The existing modal share in Indian cities is in favor of Non-motorized transport (NMT) and public transport. However given the hostile conditions for public transport and increasing risk to pedestrians and cyclists, the use of personal motorized vehicle is increasing. This trend is accompanied with the rise in traffic crashes and deteriorating air quality in cities. Emission levels vary with travel behavior which is dependent on city size, structure and mode choice available.
    Date: 2011–05
  10. By: E. Lance Howe (Department of Economics, University of Alaska Anchorage); Lee Huskey (Department of Economics, University of Alaska Anchorage); Matthew D. Berman (Institute of Social and Economic Research and Department of Economics, University of Alaska Anchorage)
    Abstract: This paper explores hypotheses of hierarchical migration using data from the Alaskan Arctic. We focus on migration of Iñupiat people, who are indigenous to the region, and explore the role of income and subsistence harvests on migration. To test related hypotheses we use confidential micro-data from the US Census Bureau’s 2000 Decennial Census of Population and Income and generate migration probabilities using a mixed multinomial and conditional logit model. Our findings are broadly consistent with Ravenstein’s (1885) early hypothesis of step-wise migration; we find evidence of step-wise migration, both up and down an urban and rural hierarchy. We also find that where migrants choose to live is a function of place, personal, and household characteristics.
    Keywords: Migration, Hierarchical Migration, Rural to Urban Migration, Arctic Alaska
    JEL: J61 O15 R23
    Date: 2011
  11. By: Liutang Gong (Guanghua School of Management, Peking University; Institute for Advanced Study, Wuhan University); Heng-fu Zou (Guanghua School of Management, Peking University; Institute for Advanced Study, Wuhan University; Development Research Group, The World Bank)
    Abstract: This paper extends the Barro (1990) growth model with one aggregate government spending and one flat income tax to include federal and local public consumption, federal and local public capital formation, federal and local taxes, and federal transfers to locality. It derives the rate of endogenous growth and examines how the growth rate and welfare respond to changes in federal taxes, local taxes, and federal transfers.
    Keywords: Fiscal federalism, Public expenditures, Public capital, Taxes, Federal transfers, Endogenous growth
    JEL: E0 G1 H0 O0
    Date: 2011
  12. By: Aday Hernandez; Juan Luis Jimenez (University of Las Palmas de Gran Canaria. Facultad de Economía, Empresa y Turismo)
    Abstract: Some countries, especially in Europe, regulate the textbook market due to its special characteristics. In 2000, the Spanish Government passed a law that relaxes resale price maintenance and lets retailers give discounts of up to 25% off the gross price. Traditional bookshops do not favour this policy. We construct a database for the Canary Islands (a Spanish Autonomous Community) on schools, bookshops, population and other control factors. Our empirical objectives are twofold: first, we explore whether malls force the exit (or encourage entry) of bookshops; second, we test whether these larger retailers decrease consumer welfare by increasing distance from schools to points of sale. The results show that malls are not as bad as bookshops claim
    Keywords: Textbooks, Competition, Regional economic activity
    JEL: Z11 R11
    Date: 2011–07
  13. By: Merche, Nicola
    Abstract: This paper aims to provide a detailed socio-economic analysis of the town of Carbonia yielding insights which could serve as a stimulus and reflection, in order to guide policy makers to the adoption of public policies that could relaunch the town and the territory, making them more competitive and livable. In order to frame the phenomenon we analyse the dynamics of productivity, income, population and level of education. All those elements are taken as proxies of the quality of life in the municipal territory as well as of the endowment of material and immaterial resources. The study shows a puzzled reality that highlights both the strengths and the limits of the municipality of Carbonia, compared with other Sardinian towns.
    Keywords: Labor and demographic economy; socio-economic; human capital
    JEL: R0 E24 J0
    Date: 2011–05
  14. By: Firouz Fallahi (University of Tabriz, Irán); Gabriel Rodríguez (Departamento de Economía - Pontificia Universidad Católica del Perú)
    Abstract: Quarterly time series data from Canada and the Canadian provinces for the period 1976:1-2005:3 are examined to determine if the unemployment rates in the Canadian provinces are converging to the national rate of unemployment. Firstly, we check for existence of stochastic convergence using recent unit root statistics, see Perron and Rodríguez (2003) and Rodríguez (2007). Secondly, we verify for existence of ??convergence using recently proposed methods by Vogel-sang (1998), Perron and Yabu (2009a, 2009b), and Bai and Perron (1998, 2003).Results from di¤erent unit root tests, without and with structural breaks, confirm that stochastic convergence exists in all provinces except British Columbia.The other results show strong evidence that deterministic convergence exists and the unemployment rates of the Canadian provinces are converging to the un-employment rate of Canada. This conclusion is stronger when multiple breaks are allowed in the trend function using the approach of Bai and Perron (1998,2003).
    Keywords: Stochastic convergence, -convergence, unit roots, structural breaks,unemployment.
    JEL: C22 O40 R00
    Date: 2011
  15. By: Loayza, Norman V.; Rigolini, Jamele; Calvo-Gonzalez, Oscar
    Abstract: In the past three decades, emerging countries have gone through extensive decentralization reforms. Yet, there are no studies assessing quantitatively the relative importance of various factors known to affect the success of decentralization. This paper builds on a comprehensive dataset the authors constructed for Peru, which merges municipal fiscal accounts with information about municipalities'characteristics such as population, poverty, education, and local politics. The paper then analyzes the leading factors affecting the ability of municipalities to execute the allocated budget using complementary methodologies, from least squares to quantile regression analyses. According to the existing literature and the Peruvian context, the analysis divides these factors into four categories: the budget size and allocation process; local capacity; local needs; and political economy constraints. Although all four factors affect decentralization, the largest determinant of spending ability is the adequacy of the budget with respect to local capacity. The results confirm the need for decentralization to be implemented gradually over time in parallel with strong capacity building efforts.
    Keywords: Public Sector Expenditure Policy,Subnational Economic Development,Debt Markets,Political Economy,Municipal Financial Management
    Date: 2011–08–01

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