nep-geo New Economics Papers
on Economic Geography
Issue of 2013‒08‒31
fourteen papers chosen by
Andreas Koch
Institute for Applied Economic Research

  1. Proximity and Innovation: From Statics to Dynamics By Pierre-Alexandre Balland; Ron Boschma; Koen Frenken
  2. Agglomeration Economics Beyond the Specialisation-Diversity Controversy By Frank Van Oort
  3. Regional age structure, human capital and innovation: Is demographic ageing increasing regional disparities? By Gregory, Terry; Patuelli, Roberto
  4. Small-area measures of income poverty By Alex Fenton
  5. rKnowledge: The Spatial Diffusion of rDNA Methods By Maryann Feldman; Dieter Kogler; David Rigby
  6. Related Variety and Regional Economic Growth in a Cross-Section of European Urban Regions By Frank Van Oort; Stefan de Geus; Teodora Dogaru
  7. New insights into the development of regional unemployment disparities By Werner, Daniel
  8. Regional Influences on the Prevalence of Family Versus Non-Family Start-Ups By Bird, Miriam; Wennberg, Karl
  9. Surrounded by wars: Quantifying the role of spatial conflict spillovers By Fabrizio Carmignani; Parvinder Kler
  10. Localization of Collaborations in Knowledge Creation By INOUE Hiroyasu; NAKAJIMA Kentaro; SAITO Yukiko
  11. Mega Sporting Events, Real Estate, and Urban Social Economics – The Case of Brazil 2014/2016 By Thêmis Aragão; Wolfgang Maennig
  12. Modelling the Behaviour of Unemployment Rates in the US over Time and across Space By Mark J. Holmes; Jesús Otero; Theodore Panagiotidis
  13. Spatial Panel Data Forecasting over Different Horizons, Cross-Sectional and Temporal Dimensions By M. Mayer; R. Patuelli
  14. Efficient Approximation of the Spatial Covariance Function for Large Datasets - Analysis of Atmospheric CO2 Concentrations By Patrick Gneuss; Wolfgang Schmid; Reimund Schwarze

  1. By: Pierre-Alexandre Balland; Ron Boschma; Koen Frenken
    Abstract: Despite theoretical and empirical advances, the proximity framework has remained essentially static in that the given proximity between actors explains the extent to which they interact in knowledge networks and profit from such interactions. We propose a dynamic extension of the proximity framework of Boschma in which we account for co-evolutionary dynamics between knowledge networking and proximity. For each proximity dimension, we describe how proximities might increase over time as a result of past knowledge ties. We capture these dynamics through the processes of learning (cognitive proximity), integration (organizational proximity), decoupling (social proximity), institutionalization (institutional proximity), and agglomeration (geographical proximity). We end with discussing several avenues for future research on the dynamics of knowledge networking and proximity.
    Keywords: proximity, innovation, knowledge networks, proximity dynamics, geographical proximity
    JEL: R10 R11 B52
    Date: 2013–08
  2. By: Frank Van Oort
    Date: 2013–08
  3. By: Gregory, Terry; Patuelli, Roberto
    Abstract: Demographic change is expected to affect labour markets in very different ways on a regional scale. The objective of this paper is to explore the spatio-temporal patterns of recent distributional changes in the workers age structure, innovation output and skill composition for German regions by conducting an Exploratory Space-Time Data Analysis (ESTDA). Beside commonly used tools, we apply newly developed approaches which allow investigating the space-time dynamics of the spatial distributions. We include an analysis of the joint distributional dynamics of the patenting variable with the remaining interest variables. Overall, we find strong clustering tendencies for the demographic variables and innovation that constitute a great divide across German regions. The detected clusters partly evolve over time and suggest a demographic polarization trend among regions that may further reinforce the observed innovation divide in the future. --
    Keywords: innovation,workforce age structure,exploratory space-time data analysis,regional disparities
    JEL: J11 O31 R11 R12 R23
    Date: 2013
  4. By: Alex Fenton
    Abstract: This paper considers techniques for measuring the prevalence of income poverty within small areas, or "neighbourhoods", in Britain. The ultimate purpose is applying such statistics to investigating how the micro-spatial distribution of poverty within cities and regions changes over time as a consequence of political decisions and economic events. In the paper, some general criteria for small-area poverty measures are first set out, and two broad methods, poverty proxies and modelled income estimates, are identified. Empirical analyses of the validity and coverage of poverty proxies derived from UK administrative data, such as social security benefit claims, are presented. The concluding section assesses a new poverty proxy that will be used within a wider programme of analysis of the spatial distributional effects of tax and welfare changes and of economic trends in Britain from 2000 to 2014. Particular attention is paid to the relationship between the proxy values and other local poverty measures in different kinds of places. These suggest that the proxy is an adequate, albeit imperfect,tool for investigating changes in intra-urban distributions of poverty.
    Keywords: area, small-area, small, proxy, neighbourhood, spatial, measurement, cold climate, social policy in a cold climate
    Date: 2013–05
  5. By: Maryann Feldman; Dieter Kogler; David Rigby
    Abstract: The 1980 patent granted to Stanley Cohen and Herbert Boyer for their development of rDNA technology played a critical role in the establishment of the modern biotechnology industry. From the birth of this general purpose technology in the San Francisco Bay area, rDNA-related knowledge diffused across sectors and regions of the U.S. economy. The local absorption and application of rDNA technology is tracked across metropolitan areas with USPTO patent data. The influence of cognitive, geographical and social proximity on the spatial diffusion of rDNA knowledge is explored using event history and panel models.
    Keywords: Evolutionary Economic Geography, Technology Evolution, Knowledge Recombination and Diffusion, Patent Analysis, General Purpose Technology, rDNA Method
    JEL: M13 O31 O32 O34
    Date: 2013–08
  6. By: Frank Van Oort; Stefan de Geus; Teodora Dogaru
    Abstract: This paper introduces indicators of regional related variety and unrelated variety to conceptually overcome the current impasse in the specialisation-diversity debate in agglomeration economics. Although various country-level studies have been published on this conceptualisation in recent years, a pan-European test has until now been missing from the literature. A pan-European test is more interesting than country-level tests, as newly defined cohesion policies, smart-specialisation policies, place-based development strategies and competitiveness policies may be especially served by related and unrelated variety conceptualisations. We test empirically for the significance of variables based on these concepts, using a cross-sectional dataset for 205 European regions during the period 2000- 2010. The results confirming our hypotheses are that related variety is significantly related to employment growth and that specialisation is significantly related to productivity growth. We do not find robust relationships that are hypothesised between unrelated variety and unemployment growth. Our analyses show that evolutionary economic geography and institutional and policy-based regional development may be integrated fruitfully at the European level.
    Date: 2013–08
  7. By: Werner, Daniel (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "Large regional unemployment disparities are a common feature of the labor market in many countries. This study deals with the question whether regional unemployment disparities in western Germany widen, become narrower or remain constant over time. It examines the hypothesis of convergence for regional unemployment rates of western German Federal States and the time period 1968 to 2009 following different concepts of convergence. Western German regional unemployment rates exhibit ß-convergence but no s-convergence. Further, regional unemployment rates show a high degree of intra-distributional dynamics. Panel unit root tests designed for cross-sectional dependent panels are applied to investigate the hypothesis of stochastic convergence. This is necessary because the assumption of cross-sectional independency does not hold. The results do not indicate the existence of stochastic convergence. This is in contrast to previous studies that do not take cross-sectional dependence into account. However, additional robustness checks show that evidence of stochastic convergence depends on the underlying assumption about the shape of the equilibrium relationship between regional unemployment rates and their national counterpart. Western German regional unemployment is not characterized by a catching-up process between high and low unemployment regions. The development of regional unemployment disparities is mainly driven by economic disturbances." (Author's abstract, IAB-Doku) ((en))
    Keywords: Arbeitslosigkeit, Konvergenz, regionale Disparität - Determinanten, Westdeutschland, Bundesrepublik Deutschland
    JEL: C33 J60 R12
    Date: 2013–08–22
  8. By: Bird, Miriam (Stockholm School of Economics); Wennberg, Karl (Ratio and Stockholm School of Economics)
    Abstract: We integrate insights from family business and organizational ecology into the entrepreneurship field by constructing a theoretical framework that explains how the regional context impacts family and non-family start-ups in differing ways. Regional count data models based on a rich longitudinal dataset reveal that while economic factors such as population size and growth in regions are primarily associated with the number of non-family start-ups, factors related to regional embeddedness, such as pre-existing small family businesses as well as favorable community attitudes toward small businesses, are more strongly associated with the number of family start-ups. Our research provides support for the notion that ‘the regional context’ is an important yet under-theorized area for research on venture creation and family business.
    Keywords: Family Business; Start-up; Population Ecology; Regional Science
    JEL: L21 M13 R12
    Date: 2013–08–19
  9. By: Fabrizio Carmignani; Parvinder Kler
    Keywords: Civil war, interstate war, neighbourhood effect, spillover, panel models
    JEL: D74 C23 N40
    Date: 2013–03
  10. By: INOUE Hiroyasu; NAKAJIMA Kentaro; SAITO Yukiko
    Abstract: This study investigates the localization of knowledge exchange behavior by using data on inter-establishment collaborations in Japanese patent applications. Using distance-based methods, we obtain the following results. First, inter-establishment collaborations are significantly localized at the 5% level, with the range of localization at approximately 100km. Second, the extent of collaboration localization was stable during 1986-2005 despite the extensive developments in information and communications technology facilitating easy communication between remote researchers. Third, the extent of collaboration localization is much larger in inter-firm collaborations than in inside-firm collaborations. Furthermore, in inter-firm collaborations, the extent of localization is larger in collaborations with firms having only one research establishment. As a whole, inter-establishment collaborations are localized and stable, and localization occurs to complement firm-border effects, especially with regard to small firms.
    Date: 2013–08
  11. By: Thêmis Aragão (Chair for Economic Policy, University of Hamburg); Wolfgang Maennig (Chair for Economic Policy, University of Hamburg)
    Abstract: These events promise to improve the urban quality of life and to induce social legacy because of investments in urban infrastructure, transportation, and sporting facilities. Our analysis of the case of Brazil, especially in Rio de Janeiro (host of the 2014 World Cup and 2016 Olympic Games) shows that such benefits may differ locally and may accentuate the process of socio-spatial segregation. Urban projects often include forced evictions of low-income populations and the consequent expansion of social segregation. In public opinion, mega events are also responsible for increasing rents and (real estate) prices. However, such inflationary phenomenon occurs in most Brazilian cities, including non-host cities. The appreciation of real estate is explained largely by population and economic growth and the reduction of interest rates through mortgage programs, as well as reduced social inequality. Public investments in mega events account for only approximately 0.15% of Brazilian GDP from 2007 to 2016 and are thus too small to be responsible for the (increasing) social problems. Obviously, the perceived lack of public accountability for mega event finances as well as the perceived lack of susceptibility to social issues by the mega sporting projects may harm the public opinion of mega events. International sporting federations should thus have every interest in ensuring that their mega events target social inclusion and pay more attention to the needs of local urban and social policies.
    Keywords: Housing Prices, Real Estate, FIFA World Cup, Olympics, Mega Sporting Events, Rio de Janeiro 2016, Urban Planning, Accountability
    Date: 2013–08–20
  12. By: Mark J. Holmes (Department of Economics, Waikato University, New Zealand); Jesús Otero (Facultad de Economía, Universidad del Rosario, Colombia); Theodore Panagiotidis (Department of Economics, University of Macedonia, Greece)
    Abstract: This paper provides evidence that unemployment rates across US states are stationary and therefore behave according to the natural rate hypothesis. We provide new insights by considering the effect of key variables on the speed of adjustment associated with unemployment shocks. A highly-dimensional VAR analysis of the half-lives associated with shocks to unemployment rates in pairs of states suggests that distance between states and vacancy rates respectively exert a positive and negative influence. We find that higher homeownership rates do not lead to higher half-lives. When the symmetry assumption is relaxed through quantile regression, support for the Oswald hypothesis through a positive relationship between homeownership rates and half-lives is found at the higher quantiles.
    Keywords: Unemployment; market integration; speed of adjustment
    JEL: E24 J60 F15 R10
    Date: 2013–07
  13. By: M. Mayer; R. Patuelli
    Abstract: Empirical assessments of the forecasting power of spatial panel data econometric models are still scarcely available. Moreover, several methodological contributions rely on simulated data to showcase the potential of proposed methods. While simulations may be useful to evaluate the properties of a single estimator, the empirical set-ups of simulation studies are often based on strong assumptions regarding the shape and regularity of the statistical distribution of the variables involved. It is then valuable to have, next to simulation studies, empirical assessments of competing econometric models based on real data. In this paper, we evaluate competing spatial (dynamic) panel methods, selecting a number of data sets characterized by a range of different crosssectional and temporal dimensions, as well as different levels of spatial autocorrelation. We carry out our empirical exercise on regional unemployment data for France, Spain and Switzerland. Additionally, we test different forecasting horizons, in order to investigate the speed of deterioration of forecasting quality. We compare two classes of methods: spatial vector autoregressive (SVAR) models and dynamic panel models making use of eigenvector spatial filtering (SF). We find that, as it could be expected, the unbalance between the temporal and cross-sectional dimension (T >> n) does play in favour of the SVAR model. On the other hand, the advantage of the SVAR model over the SF model appears to diminish as the forecasting horizon widens, eventually leading the SF model to being preferred for more distant forecasts.
    JEL: C53 E24 E27 R12 R15 R23
    Date: 2013–08
  14. By: Patrick Gneuss (Faculty of Business Administration and Economics, European University Viadrina, Frankfurt (Oder)); Wolfgang Schmid (Faculty of Business Administration and Economics, European University Viadrina, Frankfurt (Oder)); Reimund Schwarze
    Abstract: Linear mixed effects models have been widely used in the spatial analysis of environmental processes. However, parameter estimation and spatial predictions involve the inversion and determinant of the n times n dimensional spatial covariance matrix of the data process, with n being the number of observations. Nowadays environmental variables are typically obtained through remote sensing and contain observations of the order of tens or hundreds of thousand on a single day, which quickly leads to bottlenecks in terms of computation speed and requirements in working memory. Therefore techniques for reducing the dimension of the problem are required. The present work analyzes approaches to approximate the spatial covariance function in a real dataset of remotely sensed carbon dioxide concentrations, obtained from the Atmospheric Infrared Sounder of NASA's 'Aqua' satellite on the 1st of May 2009. In a cross-validation case study it is shown how fixed rank kriging, stationary covariance tapering and the full-scale approximation are able to notably speed up calculations. However the loss in predictive performance caused by the approximation strongly differs. The best results were obtained for the full-scale approximation, which was able to overcome the individual weaknesses of the fixed rank kriging and the covariance tapering.
    Keywords: spatial covariance function, fixed rank kriging, covariance tapering, full-scale approximation, large spatial data sets, mid-tropospheric CO2, remote sensing, efficient approximation
    Date: 2013–08

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