nep-geo New Economics Papers
on Economic Geography
Issue of 2012‒06‒05
eighteen papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Estimation of the Spatial Weights Matrix under Structural Constraints By Bhattacharjee, Arnab; Jensen-Butler, Chris
  2. Micro-geographies of clusters of creative industries in Europe By Rafael Boix; Jose-Luis Hervas-Oliver; Blanca De Miguel-Molina
  3. Regional Policy Spillovers: The National Impact of Demand-Side Policy in an Interregional Model of the UK Economy By Gilmartin, Michelle; Learmonth, David; McGregor, Peter; Swales, Kim; Turner, Karen
  4. How do geographically mobile innovators influence network formation? By Ernest Miguélez
  5. Spatial Interactions in Hedonic Pricing Models: The Urban Housing Market of Aveiro, Portugal By Bhattacharjee, Arnab; de Castro, Eduardo Anselmo; Marques, João Lourenço
  6. The effects of agglomeration on wages: evidence from the micro-level By Fingleton, Bernard; Longhi, Simonetta
  7. Regional productivity variation and the impact of public capital stock: an analysis with spatial interaction, with reference to Spain By Gómez-Antonio, Miguel; Fingleton, Bernard
  8. Assessing Gender Inequality among Italian Regions: The Italian Gender Gap Index. By Monica Bozzano
  9. Multilevel Modelling with Spatial Effects By Corrado, L.; Fingleton, B.
  10. Local Spending, Transfers and Costly Tax Collection By Fernando Aragon
  11. Quality of Life, Firm Productivity, and the Value of Amenities across Canadian Cities By David Albouy; Fernando Leibovici; Casey Warman
  12. Analyse empirique de la mobilité géographique des enseignants-chercheurs français By Bastien Bernela; Olivier Bouba-Olga; Marie Ferru
  13. Hospital Staffing and Local Pay: an Investigation into the Impact of Local variations in the Competitiveness of Nurses Pay on the Staffing of Hospitals in France By Eric Delattre; Jean-Baptiste Combès; Bob Elliott; Diane Skatun
  14. Ecological Fiscal Incentives and Spatial Strategic Interactions: the Case of the ICMS-E in the Brazilian state of Paraná By Alexandre Sauquet; Sébastien Marchand; José Gustavo FERES
  15. A Study on Regional Disparity of Devolution of Rural Infrastructure Development Fund - Evidence for India By Sen, S K; Guha, S; Chakraborty, N
  16. Location, location, location: Extracting location value from house prices By Jens Kolbe; Rainer Schulz; Martin Wersing; Axel Werwatz
  17. The Contribution of Housing to the Dynamics of Inequalities By Modibo Sidibé
  18. Linking competitiveness clusters with public higher education and research: the French puzzle By Philippe Lefebvre; Frédérique Pallez; Daniel Fixari

  1. By: Bhattacharjee, Arnab; Jensen-Butler, Chris
    Abstract: While estimates of models with spatial interaction are very sensitive to the choice of spatial weights, considerable uncertainty surrounds de nition of spatial weights in most studies with cross-section dependence. We show that, in the spatial error model the spatial weights matrix is only partially identi ed, and is fully identifi ed under the structural constraint of symmetry. For the spatial error model, we propose a new methodology for estimation of spatial weights under the assumption of symmetric spatial weights, with extensions to other important spatial models. The methodology is applied to regional housing markets in the UK, providing an estimated spatial weights matrix that generates several new hypotheses about the economic and socio-cultural drivers of spatial di¤usion in housing demand.
    Keywords: Spatial econometrics, Spatial autocorrelation, Spatial weights matrix, Spatial error model, Housing demand, Gradient projection,
    Date: 2011
  2. By: Rafael Boix; Jose-Luis Hervas-Oliver; Blanca De Miguel-Molina
    Abstract: What makes special the geography of the clusters of creative industries (CI)? This paper considers the symbolic knowledge-base and the preference for location in urban spaces observed in those clusters. The study avoids classic research designs based on synthetic knowledge bases and regional-based administrative-constrained design, using instead micro-data (550,000 firms in creative industries) and geo-statistical algorithms. Results contribute to the economic geography by: (i) providing a specific observation of the spatial dimension (where) in the cluster theory; (ii) identifying and mapping the clusters of CI in Europe; (iii) exploring particular forms of agglomeration and co-location (urban and non-urban) followed by clusters of CI. Results present implications for scholars and policy-makers suggesting to stress the articulation of within and between-cluster policy strategies for existing clusters rather than fostering the generation of new clusters.
    Keywords: creative industries, clusters, symbolic knowledge, micro-data, geolocalization
    JEL: R12 C49 Z0
    Date: 2012–05
  3. By: Gilmartin, Michelle; Learmonth, David; McGregor, Peter; Swales, Kim; Turner, Karen
    Abstract: UK regional policy has been advocated as a means of reducing regional disparities and stimulating national growth. However, there is limited understanding of the interregional and national effects of such a policy. This paper uses an interregional computable general equilibrium model to identify the national impact of a policy-induced regional demand shock under alternative labour market closures. Our simulation results suggest that regional policy operating solely on the demand side has significant national impacts. Furthermore, the effects on the non-target region are particularly sensitive to the treatment of the regional labour market.
    Keywords: regional CGE modelling, migration, regional development policy,
    Date: 2011
  4. By: Ernest Miguélez
    Abstract: In this paper, I aim to assess the influence of spatial mobility of knowledge workers on the formation of ties of scientific and industrial collaboration across European regions. Co-location has been traditionally invoked to ease formal collaboration between individuals and firms. Tie formation is costly and decreases as distance between the partners involved increases, making ties between co-located individuals more likely than between spatially separated peers. In some instances, highly-skilled actors might become mobile and bridge regional networks across long physical distances. The effect of trust and mutual understanding between members of a co-located community may well survive the end of their co-localisation, and therefore the formation of networks across the space may overcome long distances. In this paper I estimate a fixed effects logit model to ascertain whether there exists a ‘previous co-location premium’ in the formation of networks across European regions. The role of mobility in network formation has been lately discussed elsewhere, but, to my knowledge, barely empirically tested.
    Keywords: inventors’ mobility, technological collaborations, co-location, brain drain, panel data
    JEL: C8 J61 O31 O33 R0
    Date: 2012–05
  5. By: Bhattacharjee, Arnab; de Castro, Eduardo Anselmo; Marques, João Lourenço
    Abstract: Spatial heterogeneity, spatial dependence and spatial scale constitute key features of spatial analysis of housing markets. However, the common practice of modelling spatial dependence as being generated by spatial interactions through a known spatial weights matrix is often not satisfactory. While existing estimators of spatial weights matrices are based on repeat sales or panel data, this paper takes this approach to a cross-section setting. Specifically, based on an a priori definition of housing submarkets and the assumption of a multifactor model, we develop maximum likelihood methodology to estimate hedonic models that facilitate understanding of both spatial heterogeneity and spatial interactions. The methodology, based on statistical orthogonal factor analysis, is applied to the urban housing market of Aveiro, Portugal at two different spatial scales.
    Keywords: Spatial econometrics, Spatial heterogeneity, Spatial dependence, Spatial scale, Hedonic pricing, Statistical factor analysis, Spatial weights matrix,
    Date: 2011
  6. By: Fingleton, Bernard; Longhi, Simonetta
    Abstract: This paper estimates individual wage equations in order to test two rival non-nested theories of economic agglomeration, namely New Economic Geography (NEG), as represented by the NEG wage equation and urban economic (UE) theory , in which wages relate to employment density. The paper makes an original contribution by evidently being the first empirical paper to examine the issue of agglomeration processes associated with contemporary theory working with micro-level data, highlighting the role of gender and other individual-level characteristics. For male respondents, there is no significant evidence that wage levels are an outcome of the mechanisms suggested by NEG or UE theory, but this is not the case for female respondents. We speculate on the reasons for the gender difference.
    Keywords: urban economics, new economic geography, household panel data,
    Date: 2011
  7. By: Gómez-Antonio, Miguel; Fingleton, Bernard
    Abstract: In this paper we examine whether variations in the level of public capital across Spain's Provinces affected productivity levels over the period 1996-2005. The analysis is motivated by contemporary urban economics theory, involving a production function for the competitive sector of the economy ('industry') which includes the level of composite services derived from 'service' firms under monopolistic competition. The outcome is potentially increasing returns to scale resulting from pecuniary externalities deriving from internal increasing returns in the monopolistic competition sector. We extend the production function by also making (log) labour efficiency a function of (log) total public capital stock and (log) human capital stock, leading to a simple and empirically tractable reduced form linking productivity level to density of employment, human capital and public capital stock. The model is further extended to include technological externalities or spillovers across provinces. Using panel data methodology, we find significant elasticities for total capital stock and for human capital stock, and a significant impact for employment density. The finding that the effect of public capital is significantly different from zero, indicating that it has a direct effect even after controlling for employment density, is contrary to some of the earlier research findings which leave the question of the impact of public capital unresolved.
    Keywords: Public capital, urban economics, spatial econometrics,
    Date: 2011
  8. By: Monica Bozzano (Department of Economics and Business, University of Pavia)
    Abstract: This paper aims at exploring and evaluating the geographic distribution of gender inequality across Italian regions. The aim of the analysis is two-fold. First we build a composite indicator of gender inequality at the regional level for Italy by applying the methodology developed by the World Economic Forum for the Global Gender Gap Index. Second, we compute the Italian Gender Gap Index for each region in order to measure the within-country heterogeneity that characterizes Italy. We complete the analysis by presenting the correlation between the Italian Gender Gap Index and relevant socio-economic variables.
    Keywords: Italian Gender Gap Index, Italian regions, socio-economic gender inequality.
    Date: 2012–05
  9. By: Corrado, L.; Fingleton, B.
    Abstract: In multilevel modelling, interest in modeling the nested structure of hierarchical data has been accompanied by increasing attention to different forms of spatial interactions across different levels of the hierarchy. Neglecting such interactions is likely to create problems of inference, which typically assumes independence. In this paper we review approaches to multilevel modelling with spatial effects, and attempt to connect the two literatures, discussing the advantages and limitations of various approaches.
    Keywords: Multilevel Modelling, Spatial Effects, Fixed Effects, Random Effects, IGLS, FGS2SLS,
    Date: 2011
  10. By: Fernando Aragon (Simon Fraser University)
    Abstract: This paper studies the effect of costly taxation on the fiscal response of local governments to intergovernmental transfers. Using a panel dataset of Peruvian municipalities, I find robust evidence that central government's grants have a greater stimulatory effect in municipalities facing higher tax collection costs. The results are consistent with costly taxation partially explaining the flypaper effect.
    Keywords: Flypaper effect; Intergovernmental transfers; Fiscal decentralization
    JEL: H71 H77
    Date: 2012–05
  11. By: David Albouy; Fernando Leibovici; Casey Warman
    Abstract: We present hedonic general-equilibrium estimates of quality-of-life and productivity differences across Canada’s metropolitan areas. These are based off of the estimated willingness-to-pay of heterogeneous households and firms to locate in various cities, which differ in their wage levels, housing costs, and land values. Using 2006 Canadian Census data, our metropolitan quality-of-life estimates are somewhat consistent with popular rankings, but find Canadians care more about climate and culture. Quality-of-life is highest in Victoria for Anglophones, Montreal for Francophones, and Vancouver for Allophones, and lowest in more remote cities. Toronto is Canada’s most productive city; Vancouver is the overall most valuable city.
    JEL: J31 J61 Q51 R1
    Date: 2012–05
  12. By: Bastien Bernela (CRIEF - Centre de Recherche sur l'Intégration Economique et Financière - Université de Poitiers); Olivier Bouba-Olga (CRIEF - Centre de Recherche sur l'Intégration Economique et Financière - Université de Poitiers); Marie Ferru (CRIEF - Centre de Recherche sur l'Intégration Economique et Financière - Université de Poitiers)
    Abstract: The aim of this paper is to provide empirical analysis of geographical researchers' mobility during the beginning of their career, by using long term data (1970-2000) about France. First of all, we show the importance of regional rooting: more than 60% of the researchers direct their first Ph.D where they defended their own one. Then, we test a gravity model (sample selection model) to estimate the importance of size and proximity effects on the observed interregional mobility. We observe in particular the positive influence of the scientific size of regions and geographical proximity on the researchers' mobility.
    Keywords: mobility ; geography of science ; proximities ; size effect
    Date: 2012–05–21
  13. By: Eric Delattre; Jean-Baptiste Combès; Bob Elliott; Diane Skatun (THEMA, Universite de Cergy-Pontoise; Health Economics Research Unit, University of Aberdeen; Health Economics Research Unit, University of Aberdeen; Health Economics Research Unit, University of Aberdeen)
    Abstract: Research has shown that where nurses’ wages are regulated but wages in other sectors are not this results in spatial variations in the competitiveness of nurses pay and that in England these are correlated with spatial differences in nurses’ labour supply. In France there is general regulation of wages and public hospitals compete with the private hospital and non hospital sectors for nurses. We construct and employ a unique dataset on nurses pay and the characteristics of hospitals in France. We undertake the first study of the impact of spatial wage differentials on nursing supply to French public hospitals. We show that nurse assistants’ labour supply is sensitive to spatial wage differentials, the more competitive their pay the smaller the shortage of nurse assistants, and that registered nurses and nurse assistants labour supply are interdependent, the greater the supply of nurse assistants the greater the supply of registered nurses.
    Keywords: Wage regulation, local pay, standardised spatial wage differentials, nursing shortage, nursing labour supply
    JEL: I12 I18 J31
    Date: 2012
  14. By: Alexandre Sauquet (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Sébastien Marchand (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); José Gustavo FERES (IPEA - IPEA - Institute of Applied Economic Research)
    Abstract: The ICMS-Ecológico is a fiscal transfer mechanism from states to municipalities, implemented in the early 1990's in Brazil, to reward municipalities for the creation and management of protected areas. This paper investigates the efficiency of this mechanism by testing for the presence of interactions among Brazilian municipalities in their decision to create conservation units, in the state of Paraná, between 2000 and 2010. We estimate a Bayesian spatial Tobit model in order to analyze the behavior of municipalities. The empirical investigation reveals strategic substitutability in municipalities conservation decisions.
    Keywords: biodiversity;Land use;Fiscal Federalism;Interactions;Spatial Tobit model;Brazil
    Date: 2012–05–23
  15. By: Sen, S K; Guha, S; Chakraborty, N
    Abstract: The present paper attempts to examine the normative criteria of RIDF devolution by NABARD in reducing inter and intra state disparity in terms of sanction of per capita RIDF over the study period 1996 to 2010. Following Spiezia (2002), Adjusted Geographic Concentration index has been used to test the nature and sources of concentration of per capita sanction of RIDF. The empirical findings support a relatively high degree of concentrations in devolution of such fund among the states. The study also identifies the sources of such concentration. The underlying reasons behind such inter and intra state disparity in per capita sanction of RIDF is mainly the matching grant scheme applied to all the states and the twenty percentages reward formula under such devolution criteria. This study strongly recommended the review of the normative criteria for devolution of RIDF set by the NABARD by removing the matching grant scheme and restricting the twenty percentage reward formula, for the less developed states including the states in the north eastern region only for achieving the goal of balanced regional development of rural infrastructure.
    Keywords: Rural Infrastructure; Regional Disparity; Geographic Concentration; Matching Grant Scheme; Reward Formula
    JEL: R58 G18 H53
    Date: 2011–11–16
  16. By: Jens Kolbe; Rainer Schulz; Martin Wersing; Axel Werwatz
    Abstract: The price for a single-family house depends both on the characteristics of the building and on its location. We propose a novel semiparametric method to extract location values from house prices. After splitting house prices into building and land components, location values are estimated with adaptive weight smoothing. The adaptive estimator requires neither strong smoothness assumptions nor local symmetry. We apply the method to house transactions from Berlin, Germany. The estimated surface of location values is highly correlated with expert-based land values and location ratings. The semiparametric method can therefore be used for applications where no other location value information exists or where this information is not reliable.
    Keywords: location value, adaptive weight smoothing, spatial modeling
    JEL: R31 C14
    Date: 2012–05
  17. By: Modibo Sidibé (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France)
    Abstract: This paper proposes a unified framework for the analysis of inequalities. In contrast to the former literature on inequalities, housing is included as a major determinant of individual saving behavior. Disparities across locations affect individual outcomes in both labor and education markets. In a Bewley-Huggett-Aiyagari type model where several frictions are represented, the model allows for segmentation between homeowners and renters in the housing market, imperfection in the capital market and residential mobility over the life-cycle. Moreover, individual location is assumed to affect labor productivity, wealth accumulation via the dynamics of housing prices and the human capital acquisition process of the next generation. The dynamics of prices combined to bequest motive provide the perfect framework to understand the tenure choice of individuals. Furthermore, the fixity of housing supply in each neighborhood combined with borrowing constraints prevent some households from living in their preferred area, which leads to segregation. Using this general framework, the paper contributes to the understanding of the complex relationships between labor, housing and education markets. Finally, several experiments aimed at decreasing the level of inequalities at the individual and location level are provided.
    Keywords: Heterogeneous Agents, Inequalities, Wealth distribution, Housing
    JEL: E24 I30 R23
    Date: 2012
  18. By: Philippe Lefebvre (CGS - Centre de Gestion Scientifique - Mines ParisTech); Frédérique Pallez (CGS - Centre de Gestion Scientifique - Mines ParisTech); Daniel Fixari (CGS - Centre de Gestion Scientifique - Mines ParisTech)
    Abstract: The importance of proximity in the field of innovation has been highlighted, notably, in studies which emphasize the growing role of the third mission of the universities, namely, regional economic development. Using an empirical approach, we have attempted to gain an insight into the ways in which networks involving local economic and academic actors are created. This study focuses on France, where the State has recently promoted an aggressive policy designed to develop clusters and reform higher education and research, with a view to bringing together universities, creating centres of excellence, research networks at the local level and promoting connections of both to clusters. The study reveals the existence of a wide variety of configurations and, in spite of globally positive dynamics, highlights areas in which insufficiently well coordinated governmental approaches could be improved. The study also underlines a number of hitherto neglected aspects: a less global approach to institutions should be taken, and analyses of the variety of possible links between science and innovation should be more nuanced. Lastly, the study highlights a profound transformation in the approaches taken by governmental agencies.
    Keywords: Clusters ;Territories; Regional studies;Universities;Science and Innovation ;Public policy
    Date: 2011

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