nep-geo New Economics Papers
on Economic Geography
Issue of 2018‒02‒19
six papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. The Grand Tour: Keynes and Goodwin go to Greece By Eduardo A. Haddad; Natalia Q. Cotarelli, Thiago C. Simonato, Vinicius A. Vale; Jaqueline C. Visentin
  2. Graduate migration in Germany - new evidence from an event history analysis By Teichert, Christian; Niebuhr, Annekatrin; Otto, Anne; Rossen, Anja
  4. Schumpeterian Creative Class Competition, Innovation Policy, and Regional Economic Growth By Batabyal, Amitrajeet; Yoo, Seung Jick
  5. Please in my back yard: the private and public benefits of a new tram line in Florence By Valeriia Budiakivska; Luca Casolaro
  6. Ecological barriers and convergence: a note on geometry in spatial growth models By Giorgio Fabbri

  1. By: Eduardo A. Haddad; Natalia Q. Cotarelli, Thiago C. Simonato, Vinicius A. Vale; Jaqueline C. Visentin
    Abstract: The impact of the crisis in the Greek economy was not uniform among the regions, threatening socioeconomic cohesion. In this paper, we explore the concept of the income multiplier in a multi-regional setting, in the context of the Greek recession, showing empirical evidence for the increasing magnitude of the multiplier during the recession period. The main results reveal a complex system of interregional relations on some of whose structural characteristics the cyclical reaction paths of the regions depends. In this case, the use of fiscal instruments to stimulate local activity in the regions may bring about important implications for regional inequality in Greece
    Keywords: Keynesian multiplier; recessions; Greece; austerity policy; countercyclical regional policy
    JEL: E12 E62 R11
    Date: 2018–02–06
  2. By: Teichert, Christian; Niebuhr, Annekatrin (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Otto, Anne (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Rossen, Anja (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "We use administrative social security records and event history methods to investigate graduate migration in Germany. The results indicate that most migration events happen up to seven years after graduation. Work experience gathered before and during the studies influences the migration decision, pointing to the importance of labour market contacts and social networks. In contrast to previous studies we do not detect a genuine negative duration dependence for the probability of leaving the region of study. When labour market entry outside the university region is considered there is some indication for cumulative stress." (Author's abstract, IAB-Doku) ((en))
    Keywords: Hochschulabsolventen, regionale Mobilität, Studienabschluss, Abwanderung, Hochschule, Standort, Mobilitätsbereitschaft - Determinanten, regionaler Arbeitsmarkt, soziale Beziehungen, Berufseinmündung, Integrierte Erwerbsbiografien
    JEL: C41 J61 R23
    Date: 2018–02–01
  3. By: Dagmara Nikulin (Gdansk University of Technology, Gdansk, Poland); Maciej Berêsewicz (Poznañ University of Economics and Business, Centre for Small Area Estimation, Statistical Office in Poznañ, Poznan, Poland)
    Abstract: The main goal of our article is to bridge the gap in the regional analysis of informal employment in Poland and in particular to indicate the propensity for informal work in the working age population, to test if informal activities are typical for marginalized people (less educated, unemployed, older) and to identify the regional and spatial heterogeneity in the propensity. We use data from the ‘Human Capital Balance 2010-2014’ survey. Results indicate a strong relationship between the probability of informal work and age, sex and labour force status. Moreover, a strong spatial dependency can be observed.
    Keywords: Informal employment propensity, unregistered work, shadow economy, spatial Bayesian analysis, INLA
    JEL: J21 R12 R23
    Date: 2018–01
  4. By: Batabyal, Amitrajeet; Yoo, Seung Jick
    Abstract: We focus on a region that is creative in the sense of Richard Florida. The creative class is broadly composed of existing and candidate entrepreneurs. The general question we analyze concerns the effects of Schumpeterian competition between existing and candidate entrepreneurs on economic growth and innovation policy in this region. We perform four specific tasks. First, when the flow rate of innovation function for the existing entrepreneurs is strictly concave, we delineate the circumstances in which competition between existing and candidate entrepreneurs leads to a unique balanced growth path (BGP) equilibrium. Second, we examine whether it is possible for the BGP equilibrium to involve different levels of R&D expenditures by the existing entrepreneurs. Third, we show how the BGP equilibrium is altered when the flow rate of innovation function for the existing entrepreneurs is constant. Finally, we study the impact that taxes and subsidies on R&D by existing and candidate entrepreneurs have on R&D expenditures and regional economic growth.
    Keywords: Creative Class, Creative Destruction, Economic Growth, Innovation Policy, R&D
    JEL: O31 O38 R11
    Date: 2017–12–03
  5. By: Valeriia Budiakivska (University of Pisa); Luca Casolaro (Bank of Italy)
    Abstract: Urban agglomerations, revealing the highest levels of productivity and growth, raise severe congestion problems. This issue can be mitigated by the construction of transport facilities allowing a higher centre-suburbs permeability. The returns of similar infrastructures are under debate, especially in cities characterized by huge artistic and urbanistic constraints. The purpose of this paper is to estimate the private and public benefits of a new tramline recently built in Florence. We apply the synthetic control method on metropolitan micro-zones in order to estimate the impact of the facility on house prices in the suburbs located close to the tram stops. We also estimate a hedonic pricing model on individual bids downloaded from a popular real estate agency. The results, coherent in both approaches, demonstrate that houses located in proximity to the new tram network register a price increase of 200-300 euros per square meter, the 7-10 per cent of the total value. The study also confirms the presence of public benefits related to the facility in terms of accidents reduction and improved air quality.
    Keywords: synthetic control, transport facility impact, house prices
    JEL: O18 L92 R41 R42
    Date: 2018–01
  6. By: Giorgio Fabbri (EPEE - Centre d'Etudes des Politiques Economiques - UEVE - Université d'Évry-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.
    Keywords: Riemannian manifolds,agglomeration,growth,Dynamical spatial model,infinite di-mensional optimal control problems,convergence
    Date: 2016–03

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