nep-geo New Economics Papers
on Economic Geography
Issue of 2015‒08‒19
sixteen papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  2. Geographical mobility and the labour market By Vives Coscojuela, Cecilia
  3. The cost of equity: Assessing transit accessibility and social disparity using total travel cost By Ahmed El-Geneidy; David Levinson; Ehab Diab; Genevieve Boisjoly; David Verbich; Charis Loong
  4. Emergence and evolution of new industries: The path-dependent dynamics of knowledge creation. An introduction to the special section By Jackie Krafft; Sebastien Lechevalier; Francesco Quatraro; Cornelia Storz
  5. Firm Level Allocative Inefficiency: Evidence from France By Lionel Fontagné; Gianluca Santoni
  6. What explains productivity differentials across spanish cities? By Díaz Serrano, Lluís
  7. Municipal Fragmentation and Economic Performance of OECD TL2 Regions By David Bartolini
  8. Spatial equity and high speed trains: the example of France By Dominique Bouf; Christian Desmaris
  9. Local government cooperation at work: A control function approach By Zineb Abidi; Edoardo Di Porto; Angela Parenti; Sonia Paty
  10. Analyzing Multiday Route Choice Behavior using GPS Data By Wenyun Tang; David Levinson
  11. Same difference? Minority ethnic inventors, diversity and innovation in the UK By Max Nathan
  12. Simulating knowledge diffusion in four structurally distinct networks: An agent-based simulation model By Mueller, Matthias; Bogner, Kristina; Buchmann, Tobias; Kudic, Muhamed
  13. Ecological barriers and convergence: a note on geometry in spatial growth models By Giorgio Fabbri
  14. Difference-in-Differences Techniques for Spatial Data: Local Autocorrelation and Spatial Interaction By Michael S. Delgado; Raymond J.G.M. Florax
  15. The Space of Gravity: Spatial Filtering Estimation of a Gravity Model for Bilateral Trade By R. Patuelli; G. J. Linders; R. Metulini; D. A. Griffith
  16. Analyse spatiale de l’espace urbain : le cas de l’agglomération lyonnaise By Emilie Arnoult; Florent Sari

  1. By: Gabriel Lang (MIA-Paris - Mathématiques et Informatique Appliquées - AgroParisTech - Institut national de la recherche agronomique (INRA)); Eric Marcon (ECOFOG - Ecologie des forêts de Guyane - UAG - Université des Antilles et de la Guyane - AgroParisTech - Institut national de la recherche agronomique (INRA) - CIRAD - Centre de coopération internationale en recherche agronomique pour le développement - CNRS); Florence Puech (RITM - Réseaux Innovation Territoires et Mondialisation - UP11 - Université Paris-Sud - Paris 11)
    Abstract: For a decade, distance-based methods have been widely employed and constantly improved in the field of spatial economics. These methods are a very useful tool for accurately evaluating the spatial distribution of plants or retail stores, for example (Duranton and Overman, 2008). In this paper, we introduce a new distance-based statistical measure for evaluating the spatial concentration of economic activities. To our knowledge, the m function is the first relative density function to be proposed in the economics literature. This tool supplements the typology of distance-based methods recently drawn up by Marcon and Puech (2012). By considering several theoretical and empirical examples, we show the advantages and the limits of the m function for detecting spatial structures in economics.
    Date: 2015–07–27
  2. By: Vives Coscojuela, Cecilia
    Abstract: This paper studies the e ect of home-owners' migration costs on migration and unemployment in an economy where workers move both for work- and nonwork- related reasons. To this end, a search model with heterogeneous locations is developed and calibrated to the U.S. economy. Consistent with the empirical evidence, the model predicts that home-owners have a lower unemployment rate than renters despite their higher migration costs. The result is due to home-owners' higher transition rate to employment and lower transition rate to unemployment.In addition, the model generates lower inequality in home-owners' local unemployment rates than in renters'. In line with this result, it is documented that, for the period 1996-2013, home-owners had less unemployment dispersion across metropolitan areas than renters.
    Keywords: mobility, home-ownership, unemployment, labour
    JEL: R23 J64 J61
    Date: 2015–05
  3. By: Ahmed El-Geneidy; David Levinson; Ehab Diab; Genevieve Boisjoly; David Verbich; Charis Loong (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: Social equity is increasingly incorporated as a long-term objective into urban transportation plans. Researchers used accessibility measures to assess equity issues, such as determining the amount of jobs reachable by marginalized groups within a defined travel time threshold and compare these measures across socioeconomic categories. However, allocating public transit resources in an equitable manner is not only related to travel time, but also related to the out-of- pocket cost of transit fares, which can represent a major barrier to accessibility for many disadvantaged groups. Therefore, this research proposes a set of new accessibility measures that incorporates both travel time and transit fares. It then applies those measures to determine whether people residing in socially disadvantaged neighborhoods in Montreal, Canada experience the same levels of transit accessibility as those living in other neighborhoods. Results are presented in terms of regional accessibility and trends by social indicator decile. Travel time accessibility measures estimate a higher number of jobs that can be reached compared to combined travel time and cost measures. However, the degree and impact of these measures varies across the social deciles. Compared to other groups in the region, residents of socially disadvantaged areas have more equitable accessibility to jobs using transit; this is reflected in smaller decreases in accessibility when fare costs are included. Generating new measures of accessibility combining travel time and transit fares provides more accurate measures that can be easily communicated by transportation planners and engineers to policy makers and the public since it translates accessibility measures to a dollar value.
    Keywords: Equity, Job accessibility, Transit fare, Travel time. Cost
    JEL: D63 J61 R14 R41 R42
    Date: 2015
  4. By: Jackie Krafft (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS - UNS - Université Nice Sophia Antipolis); Sebastien Lechevalier (CCJ - Chine, Corée, Japon - CNRS - UP7 - Université Paris Diderot - Paris 7 - EHESS - École des hautes études en sciences sociales); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS - UNS - Université Nice Sophia Antipolis); Cornelia Storz (Goethe University Frankfurt - Department of Money and Macroeconomics)
    Abstract: In this introduction, we review the arguments that underpin the rationale for the special section, and provide a structured sequence for the contents of the six selected papers that comprise the section.
    Date: 2014–12
  5. By: Lionel Fontagné; Gianluca Santoni
    Abstract: A large portion of productivity differentials among locations is related to density. Firms located in denser areas are more productive due to agglomeration economies (Combes et al., 2012). We provide in this paper an explanation of such economies: lower input misallocation. The distribution of resources among heterogeneous firms has relevant consequences on allocative efficiency and denser areas provide a more favorable environment for dynamic matching between employers and employees. Using a methodology proposed by Petrin and Sivadasan (2013) we are able to assess the degree of resource misallocation among firms within sectors for each of the 96 French "Départements". Based on firm-level productivity estimates, we identify in the gap between the value of the marginal product and marginal input price the output loss due to inefficiencies in inputs allocation. Over the period 1993- 2007 the average gap at firm level is around 10 thousands euro, showing a relevant increase starting from the early 2000s. Importantly, firms misallocations are lower in denser areas, suggesting that the matching mechanism is playing a role in explaining the productivity premium of agglomerated locations.
    Keywords: Misallocation;Productivity;Firm Level Data
    JEL: D24 L25 O47
    Date: 2015–07
  6. By: Díaz Serrano, Lluís
    Abstract: This paper estimates the determinants of productivity differentials across urban areas in Spain. To do so we resort to Spanish Social Security administrative data (MCVL) matched with workers’ fiscal information. We use two-step approach that allows us to control for the confounding effects due to the sorting of more productive workers and more productive firms in bigger cities. Our results indicate that city size is a significant determinant of productivity differentials across Spanish urban areas. We estimate an elasticity of urban agglomeration of 3.3%, which is within the range of values already observed in other countries. We also find that the level of human capital, firm size and the level of industrial specialization also matters in order explain productivity differentials across Spanish cities. Keywords: Agglomeration, wages, productivity, city size. JEL codes: R10, R23, J31
    Keywords: Àrees metropolitanes, Espanya, Ciutats, Productivitat (Economia), Salaris, Economia regional, 332 - Economia regional i territorial. Economia del sòl i de la vivenda,
    Date: 2015
  7. By: David Bartolini
    Abstract: The present work investigates the relationship between municipal fragmentation and regional per capita GDP growth rate, using a panel of OECD TL2 regions in the period 1996-2011. According to the fiscal decentralisation literature, fragmentation should enhance growth as local government closer to citizens can implement policies that better match their needs, thus providing services and public goods in a more efficient way. The presence of many local governments, however, may create problems in terms of overlapping functions, (dis)economies of scale, and policy fragmentation. The results of the empirical analysis show that municipal fragmentation has a negative impact on per capita GDP growth, thus supporting the view that costs prevail on benefits. The introduction of regional territorial characteristic – namely, the share of population living in rural areas – provides a different picture, however. The negative impact of fragmentation decreases with the share of population living in rural areas. Indeed, in extremely “rural” regions the effect turns mildly positive. This is because the costs and benefits of fragmentation have a different weight in urban and rural regions. The key insight is the different distribution of the population over the territory: more concentrated in urban than in rural regions. This implies that, for a given level of municipal fragmentation overlapping of function is more severe in urban regions (where people are likely to commute over municipal boundaries) than in rural area. In the same vein, for the same level of municipal fragmentation access to the local government is more difficult in rural areas (where people is sparsely located within municipal boundaries) than in urban areas. The policy implications of the analysis are twofold. Firstly, reducing municipal fragmentation may have a heterogeneous impact within the country, thus raising concern for one-size-fits-all policies of municipal agglomeration in favour of a place-based approach to institutional reform. For instance, the principle guiding municipal amalgamation should not be the average municipal size at the country level, but it should be weighted for the rural/urban characteristics of each region. Secondly, the analysis suggests that processes of agglomeration of people should be accompanied by a consistent amalgamation of the local administration, otherwise representing an obstacle to the full realisation of agglomeration economies.
    Keywords: institutions, regional growth, local governments
    JEL: R11 R50
    Date: 2015–07
  8. By: Dominique Bouf (LET - Laboratoire d'économie des transports - CNRS - UL2 - Université Lumière - Lyon 2 - École Nationale des Travaux Publics de l'État [ENTPE]); Christian Desmaris (LET - Laboratoire d'économie des transports - CNRS - UL2 - Université Lumière - Lyon 2 - École Nationale des Travaux Publics de l'État [ENTPE], IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon)
    Abstract: This paper is aiming at qualifying the high speed trains in operation in France, with regards to spatial equity. To that end we begin by examining some of the various concepts enclosed in this polysemic word. Increased accessibility was one objective of the development of high speed rail. Thus we estimate a simple model to measure the possible effect of high speed rail on French regions. We did find a positive effect on GDP per capita and demographic growth. In a sense this is because they are growth-promoting that High speed lines are unfair. Beyond that, the pricing system set up by the train operator is based on yield management and intermodal competition. This results in a peculiar and singularly unfair pricing structure.
    Date: 2015
  9. By: Zineb Abidi (CREM - Centre de Recherche en Economie et Management - CNRS - Université de Caen Basse-Normandie - UR1 - Université de Rennes 1); Edoardo Di Porto (University of Naples Federico II [Naples] - University of Naples Federico II); Angela Parenti (IMT Institute of Advanced Studies); Sonia Paty (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS - UCBL - Université Claude Bernard Lyon 1 - UL2 - Université Lumière - Lyon 2 - Université Jean Monnet - Saint-Etienne - PRES Université de Lyon - ENS Lyon - École normale supérieure - Lyon)
    Abstract: Abstract.We analyze voluntary coalition formation using a unique panel data for 1,056 municipalities in the French region of Brittany between 1995 and 2002. We use a control function approach to develop a binary discrete choice model with spatial interactions. We find that a municipality’s decision to cooperate over the provision local public goods depends on the decisions of its neighbours. Comparison with spatial econometrics models (SAR and Durbin) shows that the decision to cooperate is over estimated by these more traditional models. The results are in line with the recent applied spatial economics literature but are derived for a discrete choice model setting.
    Date: 2014
  10. By: Wenyun Tang; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: Understanding variability in daily behavior is one of the most important missions in travelbehavior modeling. In traditional method, in order to find the differences, respondents were asked to list the used multiday paths. The quality of results is sensitive to the accuracy of respondents’ memories. However, few empirical studies of revealed route characteristics, chosen by the travelers day-to-day, have been reported in the literature. In this study, accurate Global Position Systems (GPS) and Geographic Information System (GIS) data were employed to reveal multiday routes people used, to study multiday route choice behavior for the same origin-destination (OD) trips. Travelers are classified into three kinds based on their route types. A two-stage route choice process is proposed. After analyzing the characteristics of different types of travelers, a neural network was adopted to classify travelers and model route choice behavior. An empirical study using GPS data collected in Minneapolis-St. Paul metropolitan area was carried out in the following part. It finds that most travelers follow the same route during commute trips on successive days. The results indicate that neural network framework can classify travelers and model route choice well.
    Keywords: multiday travel behavior, day-to-day modeling, route choice behavior, GPS data, neural networks
    JEL: C45 R41 R42
    Date: 2015
  11. By: Max Nathan
    Abstract: Minority ethnic inventors play important roles in US innovation, especially in high-tech regions such as Silicon Valley. Do ‘ethnicity–innovation’ channels exist elsewhere? Ethnicity could influence innovation via production complementarities from diverse inventor communities, co-ethnic network externalities or individual ‘stars’. I explore these issues using new UK patents microdata and a novel name-classification system. UK minority ethnic inventors are spatially concentrated, as in the USA, but have different characteristics reflecting UK-specific geography and history. I find that the diversity of inventor communities helps raise individual patenting, with suggestive influence of East Asian-origin stars. Majority inventors may benefit from multiplier effects.
    Keywords: innovation; cultural diversity; minority ethnic inventors patents; cities
    JEL: J15 O31 R11
    Date: 2014–05–10
  12. By: Mueller, Matthias; Bogner, Kristina; Buchmann, Tobias; Kudic, Muhamed
    Abstract: In our work we adopt a structural perspective and apply an agent-based simulation approach to analyse knowledge diffusion processes in four structurally distinct networks. The aim of this paper is to gain an in-depth understanding of how network characteristics, such as path length, cliquishness and the distribution and asymmetry of degree centrality affect the knowledge distribution properties of the system. Our results show - in line with the results of Cowan and Jonard (2007) - that an asymmetric or skewed degree distribution actually can have a negative impact on a network's knowledge diffusion performance in case of a barter trade knowledge diffusion process. Their key argument is that stars rapidly acquire so much knowledge that they interrupt the trading process at an early stage, which finally disconnects the network. However, our findings reveal that stars cannot be the sole explanation for negative effects on the diffusion properties of a network. In contrast, interestingly and quite surprisingly, our simulation results led to the conclusion that in particular very small, inadequately embedded agents can be a bottleneck for the efficient diffusion of knowledge throughout the networks.
    Keywords: innovation networks,knowledge diffusion,agent-based simulation,scale free networks,Netzwerk,Simulation,Wissen
    Date: 2015
  13. By: Giorgio Fabbri (EPEE - Université d'Evry-Val d'Essonne)
    Abstract: We introduce an AK spatial growth model with a general geographical structure. The dynamics of the economy is described by a partial differential equation on a Riemannian manifold. The morphology interacts with the spatial dynamics of the capital and is one determinant of the qualitative behavior of the economy. We characterize the conditions on the geographical structure that guarantee convergence of the detrended capital across locations in the long run, and those inducing spatial capital agglomeration.
    Date: 2015–05–27
  14. By: Michael S. Delgado (Purdue University, United States); Raymond J.G.M. Florax (VU University Amsterdam, the Netherlands, and Purdue University, United States)
    Abstract: We consider treatment effect estimation via a difference-in-difference approach for data with local spatial interaction such that the outcome of observed units depends on their own treatment as well as on the treatment status of proximate neighbors. We show that under standard assumptions (common trend and ignorability) a straightforward spatially explicit version of the benchmark difference-in-differences regression is capable of identifying both direct and indirect treatment effects. We demonstrate the finite sample performance of our spatial estimator via Monte Carlo simulations.
    Keywords: Difference-in-differences; Monte Carlo simulation; program evaluation; spatial autocorrelation; spatial interaction
    JEL: C21 C53
    Date: 2015–07–30
  15. By: R. Patuelli; G. J. Linders; R. Metulini; D. A. Griffith
    Abstract: Bilateral trade flows traditionally have been analysed by means of the spatial interaction gravity model. Still, (auto)correlation of trade flows has only recently received attention in the literature. This paper takes up this thread of emerging literature, and shows that spatial filtering (SF) techniques can take into account the autocorrelation in trade flows. Furthermore, we show that the use of origin and destination specific spatial filters goes a long way in correcting for omitted variable bias in an otherwise standard empirical gravity equation. For a cross-section of bilateral trade flows, we compare an SF approach to two benchmark specifications that are consistent with theoretically derived gravity. The results are relevant for a number of reasons. First, we correct for autocorrelation in the residuals. Second, we suggest that the empirical gravity equation can still be considered in applied work, despite the theoretical arguments for its misspecification due to omitted multilateral resistance terms. Third, if we include SF variables, we can still resort to any desired estimator, such as OLS, Poisson or negative binomial regression. Finally, interpreting endogeneity bias as autocorrelation in regressor variables and residuals allows for a more general specification of the gravity equation than the relatively restricted theoretical gravity equation. In particular, we can include additional country-specific push and pull variables, besides GDP (e.g., land area, landlockedness, and per capita GDP). A final analysis provides autocorrelation diagnostics according to different candidate indicators.
    JEL: C14 C21 F10
    Date: 2015–08
  16. By: Emilie Arnoult (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12, TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS); Florent Sari (TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS, LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - UN - Université de Nantes)
    Abstract: L’objectif de ce travail est d’analyser la répartition de la population et de l’emploi au sein de la Communauté Urbaine de Lyon, appelée « le Grand Lyon », en mettant en perspective sa configuration spatiale et son évolution au cours du temps. Nous mobilisons dans un premier temps les outils de l’Analyse Exploratoire des Données Spatiales (ESDA) afin de déterminer s’il existe un ou plusieurs centroïdes autour desquels se répartissent l’emploi et la population. Afin de voir si la structure urbaine a évolué au cours de la dernière décennie, nous réalisons cette étude sur des données de 1999 et de 2009. Nous effectuons ensuite différentes analyses économétriques à partir des résultats de l’ESDA afin de déterminer si tout ou partie des centres mis en avant ont un impact significatif sur la répartition de l’emploi et de la population au sein de la Communauté Urbaine de Lyon, et de déterminer quel type de modèle décrit le mieux cet espace urbain. Nos résultats montrent que la localisation des emplois est fortement dépendante de la proximité au centre de Lyon, ainsi qu’une rupture de la densité d’emploi à partir de 8 kilomètres. L’analyse de la répartition de la population confirme l’effet significatif de la distance au centre-ville mais nous montrons également que les modélisations classiques de l’économie urbaine ne nous permettent pas de traiter du rôle significatif des centres d’emplois secondaires sur les stratégies de localisation des ménages. Nous observons cependant un recul de l’effet de la distance au centre-ville, confirmant ainsi le phénomène d’étalement urbain que connaissent grand nombre d’agglomérations françaises.
    Date: 2015–01

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