nep-geo New Economics Papers
on Economic Geography
Issue of 2013‒06‒24
ten papers chosen by
Andreas Koch
Institute for Applied Economic Research

  1. Spatial Inequalities and Expectations: The Role of Heterogeneity in Krugman's Model By Henri Busson
  2. Optimizing Distance-Based Methods for Big Data Analysis By Tobias Scholl; Thomas Brenner
  3. Firms’ innovation across regions: an exploratory study By Ana Paula Faria; Natália Barbosa; Vasco Eiriz
  4. The Spatial Structure of Farmland Values: A Semiparametric Approach By Wang, Haoying
  5. Networks, proximities and inter-firm knowledge exchanges By S. Usai; E. Marrocu; R. Paci
  6. Selection and Agglomeration Impact on Firm's Productivity- A Study of Taiwan's Manufacturing Sector By Hasan, Syed; Klaiber, H.Allen; Sheldon, Ian
  7. Industry structure and employment growth: evidence from semiparametric geoadditive models By Basile, Roberto; Donati, Cristiana; Pittiglio, Rosanna
  8. Do the Spanish regions converge? A unit root analysis for the HDI of the Spanish regions By Montañés, Antonio; Olmos, Lorena
  9. Spatial effects in organic agriculture adoption in Honduras: the role of social conformity, positive externalities, and information By Wollni, Meike; Andersson, Camilla
  10. Modeling the Diffusion of Residential Photovoltaic Systems in Italy: An Agent-based Simulation By Palmer, Johannes; Sorda, Giovanni; Madlener, Reinhard

  1. By: Henri Busson (CREM CNRS, UMR 6211, University of Rennes 1, France)
    Abstract: Heterogeneity has often changed the results of multiplicity and stability of equilibriums. In this article, we extend a paper written by Krugman by introducing two different types of workers with different productivity. This framework enables us to understand the weight of history in spatial inequalities, which are becoming more and more apparent in the united states and in europe. Krugman results don't holds and we find that even with high interest rates, history could be reversed and expectations could lead to a different equilibriums.
    Keywords: economic geography, location choice, equilibrium paths, linear differential systems
    JEL: J61 C62 R12
    Date: 2013–06
  2. By: Tobias Scholl (House of Logistics and Mobility (HOLM), Frankfurt and Economic Geography and Location Research, Philipps-University, Marburg); Thomas Brenner (Philipps-Universität Marburg)
    Abstract: Distance-based methods for measuring spatial concentration such as the Duranton-Overman index undergo an increasing popularity in the spatial econometrics community. However, a limiting factor for their usage is their computational complexity since both their memory requirements and running-time are in O(n2). In this paper, we present an algorithm with constant memory requirements and an improved running time, enabling the Duranton-Overman index and related distance-based methods to run big data analysis. Furthermore, we discuss the index by Scholl and Brenner (2012) whose mathematical concept allows an even faster computation for large datasets than the improved algorithm does.
    Keywords: Spatial concentration, Duranton-Overman index, big-data analysis, MAUP, distance-based measures.
    JEL: C40 M13 R12
    Date: 2013–10–06
  3. By: Ana Paula Faria (Universidade do Minho - NIPE); Natália Barbosa (Universidade do Minho - NIPE); Vasco Eiriz (Universidade do Minho - Departamento de Gestão)
    Abstract: This paper investigates the geographical distribution and concentration of firms’ innovation persistence and innovation type - product and process - based upon three waves of the Community Innovation Survey data covering the period 1998-2006. The main findings are: (i) both innovation persistence and innovation type are asymmetrically distributed across Portuguese regions; (ii) the degree of correlation between geographical location and innovative output varies with the innovation type; and (iii); the correlation between geographical unit and innovation increases when the spatial unit of analysis is narrower. Overall, results indicate that firm’s choice of geographical location have a long-lasting effect, engendering no equal probabilities of being persistently innovator.
    Keywords: product innovation, process innovation, persistence, location
    JEL: O31 L25 R11
    Date: 2013
  4. By: Wang, Haoying
    Abstract: Although accounting for the spatial - temporal relationships in farmland valuation has gained attention in the literature recently, misspecification and incorrectly imposed assumptions on spatial weighting matrix can often produce misleading estimates and inference compared to maintaining ignorance of spatial dependence structure among spatially observed farmland values. In this study I assemble a panel data set using Pennsylvania county level farmland values reported in the U.S. Census of Agriculture between 1982 and 2007, and estimate the spatial weighting matrix among farmland values semiparametrically. A spatial lag panel data model with the consistently estimated spatial weighting matrix is then estimated via maximum likelihood estimation (MLE). The results show that the proposed approach can substantially improve the goodness of fit of the spatial hedonic model of farmland values therefore the reliability of obtained price elasticity estimates.
    Keywords: Land Economics/Use,
    Date: 2013
  5. By: S. Usai; E. Marrocu; R. Paci
    Abstract: Building on previous literature providing extensive evidence on flows of knowledge generated by inter-firm agreements, in this paper we aim to analyse how the occurrence of such collaborations is driven by the multi-dimensional proximity among participants and by their position within firms’ network. More specifically, we assess how the likelihood that two firms set up a partnership is influenced by their bilateral geographical, technological, organizational, institutional and social proximity and by their position within networks in terms of centrality and closeness. Our analysis is based on agreements in the form of joint ventures or strategic alliances, announced over the period 2005-2012, in which at least one partner is localised in Italy. We consider the full range of economic activities and this allow us to offer a general scenario and to specifically investigate the role of technological relatedness across different sectors. The econometric analysis, based on the logistic framework for rare events, yielded three noteworthy results. First, all the five dimensions of proximity jointly exert a positive and relevant effect in determining the probability of inter-firm knowledge exchanges, signalling that they are complementary rather than substitute channels. Second, the higher impact on probability is due to the technological proximity, followed by the geographical one, while the other proximities (social, institutional and organizational) have a limited effect. Third, we find evidence on the positive role played by networks, through preferential attachment and transitivity effects, in enhancing the probability of inter-firm agreements.
    Keywords: joint ventures, knowledge flows, networks, proximities, strategic alliances
    JEL: R12 O33 O31 L14
    Date: 2013
  6. By: Hasan, Syed; Klaiber, H.Allen; Sheldon, Ian
    Abstract: This paper studies the impact of agglomeration and selection on firms' total factor productivity (TFP) distributions depending on their spatial location, specifically in science parks and large cities in Taiwan. The TFP distributions indicate a mean-shift and greater dispersion whenever firms benefit from agglomeration economies. However, selection due to competition may cause left truncation of the distribution. The empirical analysis shows that firms located in science parks have productivity that lags compared to those located in large cities and they benefit mainly from localization externalities.
    Keywords: Agglomeration, Selection, Total Factor Productivity, Science Park, Community/Rural/Urban Development, Productivity Analysis, D24, R58, R12,
    Date: 2013
  7. By: Basile, Roberto; Donati, Cristiana; Pittiglio, Rosanna
    Abstract: Using Local Labor Systems (LLSs) data, we assess the effect of the local productive structure on the employment growth in Italy during the period 1981-2008. Italy represents an interesting case study because of the high degree of spatial heterogeneity in local labor market performances and of the presence of strongly specialized LLSs (industrial districts). Building on a semiparametric geoadditive model, our empirical investigation allows us to identify important nonlinearities in the relationship between local industry structure and local employment growth, to assess the relative performance of industrial districts (the places where Marshallian externalities occur)and to control for unobserved spatial heterogeneity.
    Keywords: Industry structure, Industrial districts, Employment dynamics, Semiparametric geoadditive models.
    JEL: C14 R11 R12
    Date: 2013–06
  8. By: Montañés, Antonio; Olmos, Lorena
    Abstract: This paper analyses to what extent the Spanish regions have undergone a process of convergence since 1980. The application of unit root techniques to the data of the Human Development Index allow us to show that the evolution of the Spanish economy can be understood as a sum of divergent forces, while the per capita GDP offers much more evidence in favour of convergence. These insights encourage the use of different economic measures when studying stochastic convergence.
    Keywords: Unit Roots; Structural Breaks; Stochastic Convergence; HDI;
    JEL: C22 E43
    Date: 2013
  9. By: Wollni, Meike; Andersson, Camilla
    Abstract: In low potential agricultural areas like the Honduran hillsides characterized by soil degradation and erosion, organic agriculture can provide a means to break the downward spiral of resource degradation and poverty. We use original survey data to analyze the factors influencing the decision to convert to organic agriculture. Previous studies have emphasized the role of spatial patterns in the diffusion and adoption of agricultural technologies in general and organic agriculture in particular. These spatial patterns can result from a variety of underlying factors. In this article we test various potential explanations, including the availability of information in the farmer's neighborhood, social conformity concerns and perceived positive external effects of the adoption decision, in a spatially explicit adoption model. We find that farmers who believe to act in accordance with their neighbors' expectations and with greater availability of information in their neighborhood network are more likely to adopt organic agriculture. Furthermore, perceived positive productivity spillovers to neighboring plots decrease the probability of adoption. We discuss the implications of our findings for the dissemination of sustainable agricultural technologies in low-potential agricultural areas in developing countries.
    Keywords: neighborhood effects, social conformity, spatial autoregressive probit model, organic agriculture, technology adoption, Central America, Community/Rural/Urban Development, Environmental Economics and Policy, International Development, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, O13, O33, Q12, Q16,
    Date: 2013–05
  10. By: Palmer, Johannes (RWTH Aachen University); Sorda, Giovanni (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))
    Abstract: We propose an agent-based model to simulate the diffusion of small PV systems among single- or two-family homes in Italy over the 2006-2026 period. To this end,we explicitly model the geographical distribution of the agents in order to account for regional differences across the country. The adoption decision is assumed to be influenced predominantly by (1) the payback period of the investment, (2) its environmental benefit, (3) the household’s income, and (4) the influence of communication with other agents. For the estimation of the payback period, the model considers investment costs, local irradiation levels, governmental support, earnings from using self-produced electricity vs. buying electricity from the grid, as well as various administrative fees and maintenance costs. The environmental benefit is estimated by a proxy for the CO2 emissions saved. The level of the household income is associated with the specific economic conditions of the region where the agent is located, as well as the agent’s socio-economic group (age group, level of education, household type). Finally, the influence of communication is measured by the number of links with other households that have already adopted a PV system. In each simulation step, the program dynamically updates the social system and the communication network, while the evolution of the PV system’s investment costs depend on a one-factor experience curve model that is based on the exogeneous development of the global installed PV capacity. Our results show that Italy’s domestic PV installations are already beyond an initial stage of rapid growth and, though likely to spread further, they will do so at a significantly slower rate of diffusion.
    Keywords: PV; Technological diffusion; Agent-based modeling; Italy
    Date: 2013–05

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