nep-geo New Economics Papers
on Economic Geography
Issue of 2014‒04‒29
seven papers chosen by
Andreas Koch
Institute for Applied Economic Research

  1. Measuring and testing spatial mass concentration with micro-geographic data By Thomas-Agnan, Christine; Bonneu, Florent
  2. Does Regional Training Supply Determine Employees' Training Participation? By Görlitz, Katja; Rzepka, Sylvi
  3. The Effect of Regional Entrepreneurship Culture on Economic Development - Evidence for Germany By Michael Fritsch; Michael Wyrwich
  4. Cooperative decision-making for the provision of a locally undesirable facility By Ambec, Stefan; Kervinio, Yann
  5. Greening the Property Tax By Nicola Brandt
  6. Comparing Cluster Policies: An Analytical Framework By Anastasiia Konstantynova; James Wilson
  7. Incorporating Geospatial Data in House Price Indexes: A Hedonic Imputation Approach with Splines By Robert J. Hill; Michael Scholz

  1. By: Thomas-Agnan, Christine; Bonneu, Florent
    Abstract: We address the question of measuring and testing industrial spatial concentration based on micro-geographic data with distance based methods. We discuss the basic requirements for such measures and we propose four additional requirements. We also discuss the null assumptions classically used for testing aggregation of a particular sector and propose an alternative point of view. Our general index measure involves a cumulative and a non-cumulative version. This allows us to propose an alternative version of the Duranton Overman index with a proper baseline as well as a cumulative version of this same index. We illustrate the approach with some simulated data.
    Keywords: Spatial concentration, marked point processes, agglomeration, spatial clusters.
    Date: 2014–01
  2. By: Görlitz, Katja (Free University of Berlin); Rzepka, Sylvi (RWI)
    Abstract: Using data from the National Educational Panel Study of 2009/2010, this paper investigates the relationship between regional training supply and employees' training participation. Controlling for other regional factors such as the local unemployment rate, the educational level, the population density and the regional industry composition, the results indicate that training participation is significantly higher in regions with many firms in the training supply market. The predictive power of the other regional factors is rather minor.
    Keywords: training, local labor markets
    JEL: J24 R12
    Date: 2014–04
  3. By: Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Michael Wyrwich (School of Economics and Business Administration, Friedrich-Schiller-University Jena)
    Abstract: We use the historical self-employment rate as an indicator of a regional culture of entrepreneurship and link this measure to economic growth in recent periods. The results indicate that German regions with a high level of entrepreneurship in the mid- 1920s have higher start-up rates about 80 years later. Furthermore, we find that the effect of current start-up activity on regional employment is significantly higher in regions with a pronounced entrepreneurial culture. We conclude that a regional culture of entrepreneurship is an important resource for regional growth.
    Keywords: Entrepreneurship, economic development, self-employment, new business formation, entrepreneurship culture, institutions
    JEL: L26 R11 O11
    Date: 2014–04–17
  4. By: Ambec, Stefan; Kervinio, Yann
    Abstract: We consider the decentralized provision of a global public good with local external- ities in a spatially explicit model. Communities decide on the location of a facility that benefits everyone but exhibits costs to the host and its neighbors. They share the costs through transfers. We examine the cooperative game associated with this so-called NIMBY ("Not In My Back-Yard") problem. We derive and discuss conditions for core solutions to exist. These conditions are driven by the temptation to exclude groups of neighbors at any potential location. We illustrate the results in different spatial settings. In particular, we construct a hypothetical example on a real administrative unit in which the core is shown to be empty. These results clarify how property rights can affect cooperation and shed further light on a limitation of the Coase theorem.
    Keywords: NIMBY, externality, Coase theorem, pollution, waste, core, cooperative game, spatial model.
    JEL: C71 D62 Q53 R53
    Date: 2014–03–26
  5. By: Nicola Brandt
    Abstract: This paper reviews the literature and policy discussions about the role of the property tax for land use. Various externalities of the development of land, such as new infrastructure needs, the loss of open space or air pollution due to longer commutes as people locate far from city centres, are not internalised fully by property taxes or other policy instruments and this is often thought to contribute to excessive land use and urban sprawl. The impact of property taxes on land use intensity and sprawl is ambiguous in theory, however, and it depends on tax design, as well as land use regulation policies and other taxes that can influence municipalities’ incentives to convert land for development. Yet, there is some evidence suggesting that higher property taxes can limit urban sprawl, in particular when the tax on land is higher than on structures, although effects are small given relatively given a limited price elasticity of land use. Various property tax design options are discussed that may help to better internalise land use related externalities.
    Keywords: land use, fiscal zoning, property tax, urban sprawl
    JEL: R14 R38 R51 R52
    Date: 2014–04–08
  6. By: Anastasiia Konstantynova; James Wilson
    Abstract: This working paper is a part of the dissertation research and is determined to outline and deliver key triggers of a successful regional cluster policy. It first makes a broad reflection on the theory of cluster and cluster policy concepts and subsequently focuses on elaboration of an analytical scheme for policy analysis. The development of the framework is proceeded into two steps, first of all the stages of cluster policy process are defined. After that key factors affecting policy building are selected from various existing theoretical and practical cluster policy cases and later on attributed to a particular stage of cluster policy. The advantages of the designed analytical approach are in its ability to offer a deeper and more comprehensive view on different cluster policies while making comparisons and generating policy learning. Finally the framework can also be applied as a toolbox for policy makers keen to identify strengths and weaknesses in their cluster policies.
    Keywords: cluster policy; regional policy; cluster theory; comparative policy studies
    JEL: R58 L52
  7. By: Robert J. Hill (University of Graz); Michael Scholz (University of Graz)
    Abstract: The increasing availability of geospatial data (i.e., exact longitudes and latitudes for each house) has the potential to improve the quality of house price indexes. It is not clear though how best to use this information. We show how geospatial data can be included as a nonparametric spline surface in a hedonic model. The hedonic model itself is estimated separately for each period. Price indexes are then computed by inserting the imputed prices of houses obtained from the hedonic model into the Fisher price index formula. Using a data set consisting of 454507 observations for Sydney, Australia over the period 2001-2011 we demonstrate the superiority of a geospatial spline over postcode dummies as a way of controlling for locational effects. While the difference in the resulting price indexes is not that large – since the postcodes in Sydney are quite narrowly defined – we nevertheless find evidence of a slight bias in the postcode based indexes. This can be attributed to systematic changes over time within each postcode in the locational quality of houses sold.
    Keywords: Housing market; Hedonic imputation; Price index; Geospatial spline; Quality adjustment
    JEL: C43 E01 E31 R31
    Date: 2014–04

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