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on Economic Geography |
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Issue of 2016‒02‒12
eleven papers chosen by Andreas Koch Institut für Angewandte Wirtschaftsforschung |
| By: | Dominik Heinisch (University of Kassel); Önder Nomaler (Eindhoven University of Technology); Guido Buenstorf (University of Kassel); Koen Frenken (Utrecht University); Harry Lintsen (Eindhoven University of Technology) |
| Abstract: | It has long been argued that geographic co-location supports knowledge spillovers. More recently, this argument has been challenged by showing that knowledge spillovers mainly flow through social networks, which may or may not be localized at various geographic scales. We further scrutinize the conjecture of geographically bounded knowledge spillovers by focusing on knowledge flows between academia and industry. Looking into citations to non-patent literature (NPL) in 2,385 Dutch polymer patents, we find that citation lags are shorter on average if Dutch rather than foreign NPLs are cited. However, when excluding individual and organizational self-citations, geographically proximate NPLs no longer diffuse faster than foreign NPLs. This suggests that knowledge is not “in the air” but transferred by mobile individuals and/or direct university-industry collaboration. Our findings moreover suggest an important role of international conferences in the diffusion of recent scientific knowledge. |
| Keywords: | Non-patent literature, citation lags, knowledge spillovers, university-industry interaction, polymer industry |
| JEL: | O33 R10 L65 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201527&r=geo |
| By: | Bosquet, Clément; Overman, Henry G |
| Abstract: | We consider the link between birthplace and wages. Using a unique panel dataset we estimate a raw elasticity of wage with respect to birthplace size of 4.6%, two thirds of the 6.8% raw elasticity with respect to city size. We consider a number of mechanisms through which this birthplace effect could arise. Our results suggest that inter-generational transmission (sorting) and the effect of birthplace on current location (geography) both play a role in explaining the effect of birthplace. We find no role for human capital formation at least in terms of educational outcomes (learning). Our results highlight the importance of intergenerational sorting in helping explain the persistence of spatial disparities. |
| Keywords: | lifetime mobility; place of birth; spatial sorting |
| JEL: | J31 J61 J62 R23 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11085&r=geo |
| By: | José Ignacio Gimenez-Nadal (University of Zaragoza); José Alberto Molina (University of Zaragoza; Boston College); Jorge Velilla (University of Zaragoza) |
| Abstract: | In this paper, we analyze the spatial distribution of US employment and earnings against an urban wage-efficiency background, where leisure and effort at work are complementary. Using data from the American Time Use Survey (ATUS) for the period 2003-2014, we analyze the spatial distribution of employment across metropolitan areas. We also empirically study the relationship between individual earnings and commuting and leisure. Our empirical results show that employment is mostly concentrated in metropolitan cores, and that earnings increase with “expected” commuting time, which gives empirical support to our urban wage-efficiency theory. Furthermore, we use Geographical Information System models to show that there is no common pattern of commuting and the employees-to-unemployed rate, although we find higher wages in comparatively crowded states, where average commuting times are also higher. |
| Keywords: | urban wage-efficiency, earnings, commuting, leisure, American Time Use Survey |
| JEL: | J21 J22 J31 R12 R41 |
| Date: | 2016–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:890&r=geo |
| By: | Fitjar, Rune Dahl; Rodríguez-Pose, Andrés |
| Abstract: | It has often been argued that ‘there is something in the air’ which makes firms in high-density environments – such as cities or clusters – more innovative. The co-location of firms facilitates the emergence of serendipity and casual encounters which promote innovation in firms. We assess this hypothesis using data from a survey of Norwegian firms engaged in innovation partnerships. The results indicate that there may be ‘much less in the air’ than is generally assumed in the literature. The relationships conducive to innovation by Norwegian firms emerged as a consequence of purpose-built searches and had little to do with chance, serendipity, or ‘being there’. |
| Keywords: | agglomeration; externalities; firms; innovation; Norway; spillovers; tacit knowledge |
| JEL: | O31 O33 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11067&r=geo |
| By: | Arthur (Yan) Huang; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota) |
| Abstract: | Abstract Studying trip chaining behavior has been a challenging endeavor which requires the support of microscopic travel data. New insights can be gained given real-time GPS travel data. This research introduces a framework that considers two-destination choice in the context of home-based trip chains. We propose and empirically compare three alternatives of building choice sets where we consider various relationships of the two destinations (such as major-minor destinations, selecting one first, and select- ing two concurrently). Our choice set formation alternatives use survival models to determine the selection probability of a destination. Our results reveal that trip chaining behavior is shaped by the features of retail clusters, spatial patterns of clusters, transportation networks, and the axis of travel. This research supports our hypothesis that not only the spatial relationship but also the land use relationship of the destinations in a trip chain affect the decision making process. Keywords: GPS data, trip chaining, axis of travel, destination choice |
| JEL: | R14 R41 R42 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:nex:wpaper:multidestinationchoice&r=geo |
| By: | Frank Neffke; Anne Otto; César Hidalgo |
| Abstract: | Establishment closures leave many workers unemployed. Based on employment histories of 20 million German workers, we nd that workers often cope with their displacement by moving to dierent regions and industries. However, which of these coping strategies is chosen depends on the local industry mix. A large local presence of predisplacement or related industries strongly reduces the rate at which workers leave the region. Moreover, our ndings suggest that a large local presence of the predisplacement industry induces workers to shift search eorts toward this industry, reducing the spatial scope of search for jobs in alternative industries and vice versa. |
| Keywords: | Displacement, local industry mix, agglomeration externalities, matching, mobility |
| JEL: | J24 J61 J64 R12 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1603&r=geo |
| By: | Ugo Fratesi; Andrés Rodríguez-Pose |
| Abstract: | This paper examines how the evolution of employment trends in the regions of Europe since the outbreak of the crisis may have been shaped by the emergence of sheltered economies in certain regions of Europe in the pre-crisis period. The paper uses descriptive and econometric analysis to determine the relationship between the level of protection from the market of regional economies in the years of economic boom between 1995 and 2007 and employment trends in the first four years of the crisis (2008-2012). The analysis covers 272 NUTS2-level regions in 27 EU countries. The results of the analysis show that regions which had developed more sheltered economies during the boom years have not weathered the employment shock associated with the crisis well, while pre-crisis dynamism in employment generation has been connected to lower post-crisis employment destruction. The only exception are the most highly sheltered economies in the pre-crisis period, which have endured a lower level of job destruction than any other type of region. The question is whether this early resistance to job destruction can be maintained once the recovery starts. |
| Keywords: | economic crisis, employment, sheltered economies, regions, Europe |
| JEL: | R11 R58 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1601&r=geo |
| By: | Nelly Exbrayat (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS - Centre National de la Recherche Scientifique - 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); Stéphane Riou (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS - Centre National de la Recherche Scientifique - 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); Skerdilajda Zanaj (CREA - Center for Research in Economic Analysis - Uni.lu - Université du Luxembourg, CREA - Centre for Research in Economics and Management - Uni.lu - Université du Luxembourg) |
| Abstract: | This paper investigates the ability of a fully harmonized carbon tax to curb carbon emissions in a globalized economy characterized by an uneven spatial distribution of heterogeneous firms. The level of the carbon tax matters for the direction of the relocation and its impact on global emissions. When the carbon tax is low enough, emissions are reduced as firms relocate to the smaller country to pay lower taxes by reducing their output. If the carbon tax is too high, then firms react by relocating to the larger country to maintain their export activity, so that the most environmentally friendly spatial configurations can be removed. |
| Keywords: | global carbon tax, heterogeneous firms, international trade, firm location |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01256905&r=geo |
| By: | Gupta, Abhimanyu |
| Abstract: | We examine a higher-order spatial autoregressive model with stochastic, but exogenous, spatial weight matrices. Allowing a general spatial linear process form for the disturbances that permits many common types of error specifications as well as potential ‘long memory’, we provide sufficient conditions for consistency and asymptotic normality of instrumental variables and ordinary least squares estimates. The implications of popular weight matrix normalizations and structures for our theoretical conditions are discussed. A set of Monte Carlo simulations examines the behaviour of the estimates in a variety of situations and suggests, like the theory, that spatial weights generated from distributions with ‘smaller’ moments yield better estimates. Our results are especially pertinent in situations where spatial weights are functions of stochastic economic variables. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:esx:essedp:15617&r=geo |
| By: | Gupta, Abhimanyu |
| Abstract: | Autoregressive spectral density estimation for stationary random fields on a regular spatial lattice has many advantages relative to kernel based methods. It provides a guaranteed positive-definite estimate even when suitable edge-effect correction is employed, is simple to compute using least squares and necessitates no choice of kernel. We truncate a true half-plane infinite autoregressive representation to estimate the spectral density. The truncation length is allowed to diverge in all dimensions in order to avoid the potential bias which would accrue due to truncation at a fixed lag-length. Consistency and strong consistency of the proposed estimator, both uniform in frequencies, are established. Under suitable conditions the asymptotic distribution of the estimate is shown to be zero-mean normal and independent at fixed distinct frequencies, mirroring the behaviour for time series. A small Monte Carlo experiment examines finite sample performance. We illustrate the technique by applying it to Los Angeles house price data and a novel analysis of voter turnout data in a US presidential election. Technically the key to the results is the covariance structure of stationary random fields defined on regularly spaced lattices. We study this in detail and show the covariance matrix to satisfy a generalization of the Toeplitz property familiar from time series analysis. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:esx:essedp:14458&r=geo |
| By: | Erkan Erdil (TEKPOL, Science and Technology Policy Studies, Middle East Technical University); H. Tolga Göksidan |
| Abstract: | This study focuses on how Turkey’s small and medium-sized enterprises (SMEs) can participate in global markets. In fact, developing countries provide a means for accelerating the development of enterprises and countries, providing openings that developing country enterprises can exploit to upgrade their capabilities. For such enterprises, or local clusters of enterprises, the task is to insert themselves into the wider networks. This may be regarded as the main achievement for sustaining competitiveness, in similarities with the re-structuring of regional networks in developing countries that often compete by participating in extensive inter-firm networks. As another dimension in our study, we will investigate and argue whether if it is possible to increase and improve the participation of Turkish’s SMEs in the global economy, which is explicitly the baseline hypothesis of this study. The literature on regional networks and global value chain (GVC) will provide us some new insights to show the international linkages of Turkish SMEs, which often lack the capabilities to participate effectively in global markets. |
| Keywords: | Global Value Chains, GVC, Turkey, regional networks |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:met:stpswp:1504&r=geo |