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on Economic Geography |
| By: | Johanna Choumert (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Shanaka HERATH (University of New South Wales - University of New South Wales - University of New South Wales); Gunther MAIER (Vienna University of Economics and Business - Vienna University of Economics and Business - Vienna University of Economics and Business) |
| Abstract: | This paper employs the hedonic price method (HPM) to examine whether the implicit value of the greenbelt is capitalized into apartment prices in the city of Vienna, Austria. We improve the traditional model using spatial econometric techniques and compare estimates from different spatial models, namely the spatial lag model (SAR), the spatial error model (SEM) and the spatial Durbin model (SDM). While our use of spatial models addresses the common problem of omitted variable bias, the SDM specifically allows for controlling possible nearby proximity effects (i.e., small-scale neighbourhood) that are rarely included in this type of analyses. Findings indicate that distance from the greenbelt is important in explaining apartment prices in Vienna: while the CBD exerts a centripetal force, the greenbelt, on the contrary, exerts a centrifugal force. The SDM is found to be the best performing model indicating existence of small-scale neighbourhood effects and presenting a solid case for consideration of this model in valuation of green amenities. |
| Keywords: | Greenbelt;open space;urban amenities;hedonic price valuation;Spatial econometrics;spatial Durbin model |
| Date: | 2014–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00939270&r=geo |
| By: | Frank M. Fossen; Ronny Freier; Thorsten Martin |
| Abstract: | Through an intertemporal budget constraint, jurisdictions may gain advantages in tax and spending competition by 'competing' on debt. While the existing spatial econometric literature focuses on tax and spending competition, very little is known about spatial interaction via public debt. This paper estimates the spatial interdependence of public debt among German municipalities using a panel on municipalities in the two largest German states from 1999 to 2006. We find significant and robust interaction effects between debt of neighboring municipalities, which we compare to spatial tax and spending interactions. The results indicate that a municipality increases its per capita debt by 16-33 Euro as a reaction to an increase of 100 Euro in neighboring municipalities. |
| Keywords: | public debt, tax and spending competition, municipality data, spatial interactions, spatial panel estimation |
| JEL: | C23 H63 H74 R12 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1358&r=geo |
| By: | Hakenes , Hendrik (University of Bonn & Max Planck Institute for Research on Collective Goods & Centre for Economic Policy Research /CEPR)); Hasan, Iftekhar (Fordham University and Bank of Finland); Molyneux, Phil (Bangor Business School, Bangor University); Xie , Ru (Bangor Business School, Bangor University) |
| Abstract: | This paper discusses the effects of small banks on economic growth. We first theoretically show that small banks operating at a regional level can spur local economic growth. As compared with big interregional banks, small regional banks are more effective in promoting local economic growth, especially in regions with lower initial endowments and severe credit rationing. We then test the model predictions using a sample of German banks and corresponding regional statistics. We find that small regional banks are more important funding providers in regions with low access to finance. The empirical results support the theoretical hypotheses. |
| Keywords: | small banks; regional economic growth |
| JEL: | G21 O16 R11 |
| Date: | 2014–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofrdp:2014_005&r=geo |
| By: | Halkos, George; Papageorgiou, George |
| Abstract: | This paper computes and analyses for the first time environmental efficiencies in waste generation of 160 European regions in NUTS 2 level in seven European countries. For this reason different Data Envelopment Analysis (DEA) model formulations are used modeling the pollutant in the form of waste generation as a regular output and as a regular input. In the latter case we also use the notion of eco-efficiency. The empirical findings reveal environmental inefficiencies among the regions indicating the lack of a uniform regional environmental policy among the European countries. This finding is observed not only between countries but also between regions in the same country, implying the need for implementation of appropriate municipal environmental policies in waste management. |
| Keywords: | Environmental efficiency; Waste generation; European regions; Data Envelopment Analysis |
| JEL: | C6 O13 O52 Q50 Q53 Q56 R11 |
| Date: | 2014–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53400&r=geo |
| By: | Brahim Boualam |
| Abstract: | Does a better cultural milieu make a city more livable for residents and improve its business environment for firms? I compute a measure of cultural specialization for 346 U.S. metropolitan areas and ask if differences in cultural environment capitalize into housing price and wage differentials. Simple correlations replicate standard results from the literature: cities that are more specialized in cultural occupations enjoy higher factor prices. Estimations using time-series data, controlling for city characteristics and correcting for endogeneity weaken the magnitude of this effect. Even though the arts and culture might be appealing to some people and firms, such determinants are not strong enough to affect factor prices at the city level. |
| Keywords: | Urban economics, location choice, local amenities, culture. |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:gen:geneem:14012&r=geo |
| By: | Beatrice Camaioni; Roberto Esposti; Francesco Pagliacci; Franco Sotte |
| Abstract: | In this task, research is mostly finalised to analyse how EU policies have been distributed across space. Here, the main focus is on Common Agricultural Policy (CAP) expenditure. The same territorial detail adopted in previous tasks is used (i.e., NUTS 3 level). By analysing CAP expenditure at such a territorial disaggregation level, this work has specifically concentrated on rural, agricultural and environmental policies. Actually, specific CAP measures are directly aimed at tackling those issues. CAP also accounts for a large share of overall EU funds, and it represents one of major drivers of EU spatial development. The methodology of analysis is based on the reconstruction of allocation of EU funds across EU-27 NUTS 3 regions. First, an exploratory analysis of the spatial allocation of CAP expenditure across Europe is assessed. Spatial allocation of CAP expenditure is considered by disentangling specific measures as well (e.g., Pillar One and Pillar Two expenditure, Direct Payment and Market Intervention Measures, Pillar Two’s Axes…). Both absolute expenditure levels and expenditure intensity are computed here. Then, through a simple statistical analysis, the correlation between CAP expenditure at NUTS 3 level and regional features, in terms of both rurality and agricultural activity, is assessed. |
| Keywords: | Economic growth path, European economic policy |
| JEL: | O18 Q01 R12 R58 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2014:m:1:d:0:i:51&r=geo |
| By: | Lorenzo Cassi; Andrea Morrison; Roberta Rabellotti |
| Abstract: | International collaboration among researchers is a far from linear and straightforward process. Scientometric studies provide a good way of understanding why and how international research collaboration occurs and what are its costs and benefits. Our study investigates patterns of international scientific collaboration in a specific field: wine related research. We test a gravity model that accounts for geographical, cultural, commercial, technological, structural and institutional differences among a group of Old World (OW) and New World (NW) producers and consumers. Our findings confirm the problems imposed by geographical and technological distance on international research collaboration. Furthermore, they show that similarity in trade patterns has a positive impact on international scientific collaboration. We also find that international research collaboration is more likely among peers, in other words, among wine producing countries that belong to the same group, e.g. OW producers or newcomers to the wine industry. |
| Keywords: | Proximity, International scientific collaboration, Wine industry, Gravity model, Scientometrics, Emerging countries |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1405&r=geo |
| By: | Fabien CANDAU; Serge REY |
| Abstract: | Aeronautic Trade Delying Gravity, A French Regional Analysis |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:tac:wpaper:2013-2014_2&r=geo |
| By: | Covi, Giovanni |
| Abstract: | The paper aims at investigating the possible trajectories of regional clusters (industrial districts or local systems) in order to depict feasible strategies to cope with globalization. First, same relevant stylized facts on the new structure of global market are presented in order to illustrate the new competitive framework the SME must face. Second, the concept of ‘complete productive process’ is introduced to characterize the special setting is necessary for the survival of the regional systems of SME. Said briefly, a local cluster needs to co-produce values, capabilities, institutions: its very identity. Since local systems are essentially ‘cognitive systems’, they need to go global not as single firm but as a system. To accomplish this difficult task they must resort to a collective and cooperative behaviour. The paper tries to fill this gap introducing the concept of ‘Collective Local Entrepreneurship’, a reference point, a device to whom anchor the strategic pragmatism necessary to regional clusters to cope with globalization. The renewal of the local ‘ecosystems’ within the international networks (at all different levels) appears to be a general objective. A strong public-private partnership emerges as a strategic commitment. In this perspective the paper tries to capture, as a conclusion, the potential dynamics of the four evolutionary trajectories, which the regional clusters are called upon to deal with. |
| Keywords: | Industrial clusters; innovation; knowledge; industrial policy; entrepreneurship. |
| JEL: | L22 L26 O25 O31 |
| Date: | 2014–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53334&r=geo |
| By: | Mark J. Holmes (Department of Economics, Waikato University Management School); Jesus Otero (Facultad de Economia, Universidad del Rosario); Theodore Panagiotidis (Department of Economics, University of Macedonia) |
| Abstract: | Long-run income convergence is investigated in the US context. We employ a novel pair-wise econometric procedure based on a probabilistic definition of convergence. The time-series properties of all the possible regional income pairs are examined by means of unit root and non-cointegration tests where inference is based on the fraction of rejections. We distinguish between the cases of strong convergence, where the implied cointegrating vector is [1,-1], and weak convergence, where long-run homogeneity is relaxed. To address cross-sectional dependence, we employ a bootstrap methodology to derive the empirical distribution of the fraction of rejections. We find supporting evidence of US states sharing a common stochastic trend consistent with a definition of convergence based on long-run forecasts of state incomes being proportional rather than equal. We find that the strength of convergence between states decreases with distance and initial income disparity. Using Metropolitan Statistical Areas data, evidence for convergence is stronger. |
| Keywords: | Panel data, cross-section dependence, pair-wise approach, income,convergence. |
| JEL: | C2 C3 R1 R2 R3 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:mcd:mcddps:2013_03&r=geo |
| By: | Konstantin A. Kholodilin; Boriss Siliverstovs |
| Abstract: | In this paper, we evaluate the forecasting ability of 115 indicators to predict the housing prices and rents in 71 German cities. Above all, we are interested in whether the local business confidence indicators can allow substantially improving the forecasts, given the local nature of the real-estate markets. The forecast accuracy of different predictors is tested in a framework of a quasi out-of-sample forecasting. Its results are quite heterogeneous. No single indicator appears to dominate all the others for all cities and market segments. However, there are several predictors that are especially useful, namely the business confidence at the national level, consumer confidence, and price-to-rent ratios. Given the short sample size, the combinations of individual forecast do not improve the forecast accuracy. On average, the forecast improvements attain about 20%, measured by reduction in RMSFE, compared to the naïve model. In separate cases, however, the magnitude of improvement is about 50%. |
| Keywords: | Housing prices, housing rents, forecasting, spatial dependence, German cities, confidence indicators, chambers of commerce and industry |
| JEL: | C21 C23 C53 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1360&r=geo |
| By: | Andrés Rodríguez-Pose; Marco Di-Cataldo |
| Abstract: | Although it has frequently been argued that the quality of institutions affects the innovative potential of a territory, the link between institutions and innovation remains a black box. This paper aims to shed light on how institutions shape innovative capacity, by focusing on how regional government quality affects innovative performance in the regions of Europe. By exploiting new data on quality of government (QoG), we assess how government quality and its components (control of corruption, rule of law, government effectiveness and government accountability) shape patenting capacity across the regions of the European Union (EU). The results of the analysis – which are robust to controlling for the endogeneity of institutions – provide strong evidence of a causal link between the quality of local governments and the capacity of territories to generate innovation. In particular, low quality of government becomes a fundamental barrier for the innovative capacity of the periphery of the EU, strongly undermining any potential effect of any other measures aimed at promoting greater innovation. The results have important implications for the definition of innovation strategies in EU regions. |
| Keywords: | Institutions, Quality of government, Innovation, Regions, Europe |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1406&r=geo |