nep-geo New Economics Papers
on Economic Geography
Issue of 2016‒09‒25
seventeen papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Zoning and the Economic Geography of Cities By Allison Shertzer; Tate Twinam; Randall P. Walsh
  2. Quantitative Spatial Economics By Redding, Stephen J.; Rossi-Hansberg, Esteban
  3. Understanding the Changing Geography of Labour-Intensive Industries from a GPN Perspective: Case Study of the Hungarian Leather and Footwear Sector By Molnár, Ernő; Lengyel, István Máté
  4. Long-Range Growth: Economic Development in the Global Network of Air Links By Filipe Campante; David Yanagizawa-Drott
  5. Testing for localization: A new approach By MURATA, Yasusada; NAKAJIMA, Ryo; TAMURA, Ryuichi
  6. How to Measure the Local Economic Impact of Universities? Methodological Overview By Kotosz, Balázs; Lukovics, Miklós; Molnár, Gabriella; Zuti, Bence
  7. Local Labour System After the Turn of the Millennium in Hungary By Pénzes, János; Molnár, Ernő; Pálóczi, Gábor
  8. Spatial interaction in local expenditures among italian municipalities: evidence from italy 2001-2011 By Massimiliano Ferraresi; Giuseppe Migali; Francesca Nordi; Leonzio Rizzo
  9. The Effect of Undesirable Land Use Facilities on Property Values: New Evidence from Australian Regional Fossil-Fired Plants By Renuka K. Ganegodage; Peyman Khezr; Rabindra Nepal
  10. A Spatial Knowledge Production Function Approach for the Regions of the Russian Federation By Jens K. Perret
  11. Spatial interaction in local expenditures among Italian municipalities By Giuseppe Migali; Leonzio Rizzo; Massimiliano Ferraresi Ferraresi; Francesca Nordi Nordi
  12. Interclustering: innovate through diversification. The case of the Aerospace Valley competitiveness cluster in Aquitaine region By Julien Ambrosino; Jérémy Legardeur; Amélie Demanet; Philippe Lattes
  13. Spatial Layers and Spatial Structure in Central and Eastern Europe By Egri, Zoltán; Tánczos, Tamás
  14. Turbulences et résilience des territoires : éléments d'analyse By Jean-Luc Gaffard
  15. Spatial firm competition in two dimensions with linear transportation costs: simulations and analytical results By Alan Roncoroni; Matus Medo
  16. In-State College Enrollment and Later Life Location Decisions By John V. Winters
  17. La création d'un PTCE comme espace de régulation territoriale sectorielle : le cas des éco-matériaux dans les Hautes-Alpes By Céline Bourbousson

  1. By: Allison Shertzer; Tate Twinam; Randall P. Walsh
    Abstract: Comprehensive zoning is ubiquitous in U.S. cities, yet we know surprisingly little about its long-run impacts. We provide the first attempt to measure the causal effect of land use regulation over the long term, using as our setting Chicago’s first (1923) comprehensive zoning ordinance. Our results indicate that zoning has had a broader and more significant impact on the spatial distribution of economic activity than was previously believed. In particular, zoning may be more important than either geography or transportation networks – the workhorses of urban economic geography models – in explaining where commercial and industrial activity are located.
    JEL: H7 N42 R3
    Date: 2016–09
  2. By: Redding, Stephen J.; Rossi-Hansberg, Esteban
    Abstract: The observed uneven distribution of economic activity across space is influenced by variation in exogenous geographical characteristics and endogenous interactions between agents in goods and factor markets. Until recently, the theoretical literature on economic geography had focused on stylized settings that could not easily be taken to the data. This paper reviews more recent research that has developed quantitative models of economic geography. These models are rich enough to speak to first-order features of the data, such as many heterogenous locations and gravity equation relationships for trade and commuting. Yet at the same time these models are sufficiently tractable to undertake realistic counterfactuals exercises to study the effect of changes in amenities, productivity, and public policy interventions such as transport infrastructure investments. We provide an extensive taxonomy of the different building blocks of these quantitative spatial models and discuss their main properties and quantification.
    Keywords: agglomeration; cities; economic geography; quantitative models; spatial economics
    JEL: F10 F14 R12 R23 R41
    Date: 2016–09
  3. By: Molnár, Ernő; Lengyel, István Máté
    Abstract: Labour-intensive industries have declined in the East Central European economy after the beginning of the millennium. Given this deterioration, significant employers are vanishing from rural areas, leaving behind serious employment problems in regions which are less capable of resilient restructuring. This article examines this shrinkage from a geographical aspect in the context of the Hungarian leather and footwear industry. This study focuses on the interpretation and explanation of the spatial differentiation that accompanies this shrinking process. The aim of this paper is to reveal the influencing factors that stand in the background of spatially uneven development. The analysis – embedded in the theoretical framework of global production networks – is based on the corporate database of the Hungarian Central Statistical Office and invokes the experience of interviews carried out with representatives of industrial actors as well. In addition to an understanding of spatial processes, the intention of the authors was to investigate the issues to be addressed in certain locations and under what conditions the long-standing industrial culture related to the sector can be preserved.
    Keywords: global production networks, labour-intensive industries, leather and footwear industry
    JEL: R00 R10 R11 R19
    Date: 2016–02
  4. By: Filipe Campante; David Yanagizawa-Drott
    Abstract: We study the impact of international long-distance flights on the global spatial allocation of economic activity. To identify causal effects, we exploit variation due to regulatory and technological constraints which give rise to a discontinuity in connectedness between cities at a distance of 6000 miles. We show that these air links have a positive effect on local economic activity, as captured by satellite-measured night lights. To shed light on how air links shape economic outcomes, we first present evidence of positive externalities in the global network of air links: connections induce further connections. We then find that air links increase business links, showing that the movement of people fosters the movement of capital. In particular, this is driven mostly by capital flowing from high-income to middle-income (but not low-income) countries. Taken together, our results suggest that increasing interconnectedness generates economic activity at the local level by inducing links between businesses, but also gives rise to increased spatial inequality locally, and potentially globally.
    JEL: F15 F21 F23 F63 O11 O18 O19 O47 R11 R12 R40
    Date: 2016–09
  5. By: MURATA, Yasusada; NAKAJIMA, Ryo; TAMURA, Ryuichi
    Abstract: Recent empirical studies document that knowledge spillovers attenuate and industry localization decays with distance. It is thus imperative to detect localization accurately especially at short distances. We propose a new approach to testing for localization that corrects the first-order bias at and near the boundary in existing methods while retaining all desirable properties at interior points. Employing the NBER U.S. Patent Citations Data File, we illustrate the performance of our localization measure based on local linear density estimators. Our results suggest that the existing kernel density methods and regression approaches can be substantially biased at short distances.
    Keywords: localization, knowledge spillovers, local linear density, boundary bias, micro-geographic data
    JEL: R12 O31
    Date: 2016–08
  6. By: Kotosz, Balázs; Lukovics, Miklós; Molnár, Gabriella; Zuti, Bence
    Abstract: Today, the realization that certain economic units, such as universities or other large tertiary educational institutions have an impact on the economy of their region has gained prominence. There is a growing demand for precise studies on the economic impact of such entities, and the issue has attracted considerable attention in the scientific community. The examination of their economic impact is especially interesting when we compare regions with different levels of development, characterized by a successful international university. The different methods used in the literature render comparisons difficult; therefore, our focus is to recommend a method for investigating universities in different countries. In the absence of regional input-output matrices, a multiplier based approach is suggested for the first and second mission (education and research), while the application of a set of indicators is recommended for the third mission (knowledge transfer-related). There are several substantial problems in assessing the economic impact of universities. First, the definition of impact; second, measuring and estimating first-round expenditures and avoiding double-counting; third, estimating the model parameters (e.g. multipliers); fourth, the quantification of third mission activities. In this paper, we clarify theoretical definitions, resolve some contradictions, and consequently, recommend a feasible method considering the circumstances in Hungary.
    Keywords: impact study, university, Hungary
    JEL: O18 P25 R10
    Date: 2016–02
  7. By: Pénzes, János; Molnár, Ernő; Pálóczi, Gábor
    Abstract: The current research puts the issue of functional urban regions (or districts) into the focus delimited by the commuting network of employees. The local labour system (LLS) provided a specific dimension of this complex approach however it is one of the most adequate possibilities to delineate these areas of commuting. The delimitation process consisted of two steps with the separation of employment centres and with the assignment of settlements to these cores. The alteration of the LLS pattern was also analysed as the investigation was carried out by the census data from 2001 and 2011. The results provided a comprehensive overview about the process of territorial concentration and the instability of peripheral areas. Significant regional disparities of commuting came to light as the consequence of the body of settlement network. The territorial division of the country provided by LLS pattern is fitting to the new and integrated European approach of cities and their hinterlands but it is not alternative against other administrative or statistical divisions of Hungary. However this territorial point of view is in closer relation to the issues of analysing the local labour market processes or the developments targeting the increase in employment.
    Keywords: employment, functional urban area, commuting, LLS, settlement network
    JEL: R00 R11 R19 R41
    Date: 2016–02
  8. By: Massimiliano Ferraresi (University of Ferrara); Giuseppe Migali (University of Lancaster & University Magna Graecia); Francesca Nordi (University of Messina & University of Ferrara); Leonzio Rizzo (University of Ferrara & IEB)
    Abstract: We investigate the existence of spatial interaction in spending decisions among Italian municipalities. We estimate a spatial autoregressive dynamic panel data model, using information on 5,564 Italian municipalities over the period 2001-2011, exploiting their border contiguity as a measure of spatial neighborhood. We find a positive effect of neighboring expenditures on total, capital and current expenditures of a given municipality. We do not find any evidence of yardstick competition when we take account of political effects, while we find a negative relationship between spatial interaction and the size of the municipality for current expenditure. Thus, we conclude that spillover effects drive the strategic interaction.
    Keywords: Local public spending interaction, spillovers, yardstick competition, spatial econometrics, dynamic panel data, system GMM.
    JEL: C23 H72
  9. By: Renuka K. Ganegodage (School of Economics, The University of Queensland, St Lucia, Brisbane, Australia); Peyman Khezr (School of Economics, The University of Queensland, St Lucia, Brisbane, Australia); Rabindra Nepal (CDU Business School, Charles Darwin University, Darwin, Australia)
    Abstract: This paper investigates the effect of fossil-fired power plants on the value of neighborhood properties in the state of New South Wales, Australia. Fossil-fuels accounts for significant proportion of electricity generation in Australia. Thus, there are growing community concerns regarding the possible negative environmental effects of these power plants given the high level of emission produced by these plants. We use a comprehensive data with the exact location of each property to estimate the effect of an existing fossil-fuel power plant on the value of neighborhood properties. We use spatial econometric models to estimate these effects with controls over several characteristics of properties. Our results suggest that coal-fired power plants have significant negative effects on property values within a specific radius. These effects are less but still negative for gas and gas reciprocating power plants.
    Keywords: Fossil-fired; power plants; emissions; property price
    JEL: Q51 Q53 R11 R30
    Date: 2016–09–12
  10. By: Jens K. Perret (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))
    Abstract: At the core of every national innovation system two concepts are of central importance: The generation and the diffusion of innovations and ergo knowledge; on the one hand inside the system itself and on the other across the system's borders. The present study picks up on the aspect of knowledge generation in the context of the Russian Federation. An extended knowledge production function is estimated on the basis of Russian regional data and it is shown that the Russian NIS, nationally as well as internationally, is functional, however, not all channels of knowledge transfer work as efficiently as those in comparable Western European countries.
    Keywords: Knowledge Production Function, Russian Federation, National Innovation System, Panel Econometrics, Regional Economics, Patent Data
    JEL: O31 R11 R15 P25
    Date: 2016–08
  11. By: Giuseppe Migali; Leonzio Rizzo; Massimiliano Ferraresi Ferraresi; Francesca Nordi Nordi
    Abstract: We estimate a spatial autoregressive dynamic panel data model, using information on 5,564 Italian municipalities over the period 2001-2011, exploiting their border contiguity as a measure of spatial neighborhood. We find a positive and statistically significant effect of neighboring expenditures on total, capital and current expenditures of a given municipality. We do not find any evidence of yardstick competition when we take account of political effects, while we do find a negative relationship between spatial interaction and the size of the municipality for current expenditure. Thus, we conclude that spillover effects drive the strategic interaction.
    Keywords: Local public spending interaction, spillovers, yardstick competition, spatial econometrics, dynamic panel data, system GMM
    JEL: C23 H72
    Date: 2016
  12. By: Julien Ambrosino (Aerospace Valley, ESTIA Recherche - Ecole Supérieure des Technologies Industrielles Avancées (ESTIA), IMS - Laboratoire de l'intégration, du matériau au système - Université Sciences et Technologies - Bordeaux 1 - Institut Polytechnique de Bordeaux - CNRS - Centre National de la Recherche Scientifique, Agence de Développement et d'Innovation); Jérémy Legardeur (ESTIA Recherche - Ecole Supérieure des Technologies Industrielles Avancées (ESTIA), IMS - Laboratoire de l'intégration, du matériau au système - Université Sciences et Technologies - Bordeaux 1 - Institut Polytechnique de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Amélie Demanet (Agence de Développement et d'Innovation); Philippe Lattes (Aerospace Valley)
    Abstract: At the regional level, as in Aquitaine region, or at national and European levels, interclustering offers new opportunities to collaborate between clusters/clusters and their respective members. The interclustering steps identified in the literature start usually by exchanging best practices between members and cluster leaders to move towards the setting up collaborative innovation projects with a cross-sectoral dimension. In the case of major clusters, the abundance of technologies identified in the perimeter can limit the impact in its institutional scope. Technological diversification then appears as a new opportunity to foster cross-fertilization between market applications and complementary themes. The number of projects since 2010 in connection with Aerospace Valley competitiveness cluster seems to confirm our assumptions.
    Abstract: A l'échelle régionale, comme en Aquitaine, ou au niveau national et européen, l'interclustering offre de nouvelles opportunités de collaborations aux pôles de compétitivité et aux clusters et à leurs adhérents respectifs. Les étapes identifiées dans la littérature à propos de l'interclustering débutent le plus souvent par l'échange de bonnes pratiques entre membres et animateurs de clusters pour tendre vers le montage de projets collaboratifs d'innovation avec une dimension trans-sectorielle. Dans le cas des pôles de compétitivité majeurs, l'abondance des technologies identifiées au sein du périmètre peut limiter l'impact à l'intérieur de son champ d'action institutionnel. La diversification technologique parait alors comme une nouvelle opportunité pour susciter la fertilisation croisée entre des applications marché et des thématiques complémentaires. Le nombre de projets réalisés depuis 2010 en lien avec pôle Aerospace Valley semble confirmer nos hypothèses en ce sens.
    Keywords: cluster,innovation,collaborative projects,competitiveness cluster,diversification,interclustering,projets collaboratifs,clusters,pôle de compétitivité
    Date: 2016–07–07
  13. By: Egri, Zoltán; Tánczos, Tamás
    Abstract: This paper analyses the special features that characterise the spatial structure of Central and Eastern Europe, a region still in the phase of transformation. This topic has already been discussed by numerous authors (Gorzelak 1997, Rechnitzer et al. 2008); the corresponding studies have identified both greater and lesser developed areas, as well as other intermediate areas, leading to various ‘geodesigns’, figures, and models. First, a brief description of the main studies of spatial structure affecting the macroregion is given; then our definition of the spatial structure of Central and Eastern Europe is outlined. This is not only based on the main traditional development indicators (e.g. GDP per capita, unemployment rate, and business density), but also considers the spatial structure layers (economy, society, concentration, settlement pattern, network, and innovation).
    Keywords: Central and Eastern Europe, spatial layers, spatial structure, spatial autocorrelation
    JEL: R00 R10 R11
    Date: 2016–02
  14. By: Jean-Luc Gaffard (OFCE Sciences PO et SKEMA Business School)
    Abstract: L’économie géographique traite, principalement, de l’existence de forces centrifuges ou centripètes qui caractérisent l’évolution de l’espace économique. Nombre de travaux concluent à la prégnance de phénomènes de spécialisation des territoires et de concentration sans pour autant mettre en cause le principe de gains mutuels à l’échange interterritorial. Dans le pire des cas, la croissance serait, certes, porteuse d’inégalités de développement (et de revenus), mais ces inégalités seraient favorables à la croissance globale et au bien?être de chacun. En toute hypothèse il serait malvenu d’entraver le libre jeu du marché qui s’incarnerait dans les variations des prix et des salaires censés constituer des signaux efficaces pour allouer les ressources productives. Il serait malvenu de s’opposer aux inégalités utiles de capacités de développement ou aux changements nécessaires de localisation. Dès lors, un principe d’équité seul devrait guider des politiques régionales réduites à des politiques de transferts de revenus conçues de telle manière à ne pas porter atteinte à la croissance globale. La nouvelle économie géographique fait, toutefois, valoir la possibilité d’un développement équilibré des territoires qui correspond à la situation dans laquelle chaque territoire est le siège d’entreprises occupant une niche particulière, un ou plusieurs segments d’une industrie, et bénéficiant de rendements croissants. Spécialisation et concentration vont de pair avec des taux de croissance élevés dans chaque territoire. Les gains mutuels à l’échange peuvent être équitablement répartis. La raison souvent aléatoire d’une localisation initiale importe, alors, moins que les conditions de sa pérennité et de son renforcement. La résilience d’un territoire tient moins à des attributs intangibles, à des dotations initiales, qu’à sa capacité à absorber des chocs technologiques ou de préférences en jouant d’avantages spécifiques qui sont des avantages construits et cumulatifs dont la spécificité réside dans le fait qu’ils rendent coûteux les changements de localisation. L’action publique, en aidant à la constitution de ces avantages, concourt à cet objectif de résilience en même temps qu’elle est susceptible de concourir à une égalisation des performances territoriales.
    Date: 2016–07
  15. By: Alan Roncoroni; Matus Medo
    Abstract: Models of spatial firm competition assume that customers are distributed in space and transportation costs are associated with their purchases of products from a small number of firms that are also placed at definite locations. It has been long known that the competition equilibrium is not guaranteed to exist if the most straightforward linear transportation costs are assumed. We show by simulations and also analytically that if periodic boundary conditions in two dimensions are assumed, the equilibrium exists for a pair of firms at any distance. When a larger number of firms is considered, we find that their total equilibrium profit is inversely proportional to the square root of the number of firms. We end with a numerical investigation of the system's behavior for a general transportation cost exponent.
    Date: 2016–09
  16. By: John V. Winters (Oklahoma State University)
    Abstract: State and local policymakers are very interested in how attending college in one’s home state affects the likelihood of living in that state after college. This paper uses cohort-level data from the American Community Survey, decennial censuses, and other sources to examine how birth-state college enrollment affects birth-state residence several years later. Ordinary least squares and instrumental variables estimates both suggest a statistically significant positive relationship. The preferred instrumental variable estimates suggest that a one percentage point increase in birth-state enrollment rates increases later life birth-state residence by roughly 0.33 percentage points. Implications for policy are discussed.
    Keywords: higher education policy; in-state college enrollment; migration; college attendance
    JEL: H75 I25 J24 R23
    Date: 2016–09
  17. By: Céline Bourbousson (LEST - Laboratoire d'économie et de sociologie du travail - Université de la Méditerranée - Aix-Marseille 2 - Université de Provence - Aix-Marseille 1 - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper deals with the potentiality of a local dynamics of regulation. We proceed by the case study of a territorial cluster for economic cooperation (PTCE), which aims at structuring and developing eco-construction sector in two French departments (04 and 05). PTCE is a real public policy instrument for social economy which has been created on theoretical contributions for territorial economy. The category of local tends to be the privileged scale of construction and analysis of the project. Thus, actors’ speech often refer to local stakes or monocausal explanations to justify the obstacles to the project. We adopt by contrast a macro vision by mobilising the Regulation theoretical framework in order to analyse the PTCE as a meso-system, embedded in a regime of accumulation. This approach enables to understand how the PTCE is coerced by institutional arrangements that regulate the sector, and to question the meso-macro dialectic and its capacity to structure and develop an eco-construction sector in the studied territory.
    Abstract: Cet article part de la volonté de questionner la potentialité d’une dynamique locale de régulation. Il s’appuie sur l’étude de cas du pôle territorial de coopération économique (PTCE) éco-matériaux 04-05, qui cherche à structurer les filières de l’écoconstruction dans ces deux départements. Véritable instrument de politique publique en faveur de l’économie sociale et solidaire (ESS), ce dispositif s’est élaboré sur les apports théoriques de l’économie territoriale. La catégorie du local est ainsi l’échelle privilégiée de la construction et de l’appréhension de la démarche. D’ailleurs, pour expliquer les freins et les écueils que rencontre le projet, les discours des acteurs font souvent référence à des enjeux locaux ou des explications monocausales. Nous entendons a contrario adopter un angle plus macro en nous appuyant sur la théorie de la régulation, pour mieux cerner le PTCE en tant que méso-système imbriqué dans un régime d’accumulation. Cet angle permet de saisir comment le PTCE est contraint par les dispositifs institutionnels qui régissent le secteur, et de questionner la dialectique méso-macro et son éventuelle capacité à structurer et développer les filières des éco-matériaux sur le territoire étudié.
    Keywords: Territory,Territorial clusters of economic cooperation,Regulation approach,territoire , pôle territorial de coopération économique , régulation
    Date: 2016–03–17

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