nep-geo New Economics Papers
on Economic Geography
Issue of 2019‒02‒11
nine papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. National Industry Trade Shocks, Local Labor Markets, and Agglomeration Spillovers By Helm, Ines
  2. “Green regions and local firms’ innovation” By Lorena M. D’Agostino; Rosina Moreno
  3. Spatial Distribution of Logistics Services in Brazil: a Potential Market Analysis By Ademir Antônio Moreira Rocha; Fernando Salgueiro Perobelli
  4. Unequal Migration and Urbanisation Gains in China By Pierre-Philippe Combes; Sylvie Démurger; Shi Li; Jianguo Wang
  5. Location choices of Swedish independent schools – How does allowing for private provision affect the geography of the education market? By Edmark, Karin
  6. Anatomy of Regional Price Differentials: Evidence From Micro Price Data By Sebastian Weinand; Ludwig von Auer
  7. Distribution Effects of Local Minimum Wage Hikes: A Spatial Job Search Approach By Zhang, W.
  8. Penalized Small Area Models for the Combination of Unit- and Area-level Data By Jan Pablo Burgard; Joscha Krause; Ralf Münnich
  9. Entwicklung regionaler Disparitäten hinsichtlich Wirtschaftskraft, sozialer Lage sowie Daseinsvorsorge und Infrastruktur in Deutschland und seinen ländlichen Räumen By Küpper, Patrick; Peters, Jan Cornelius

  1. By: Helm, Ines (Dept. of Economics, Stockholm University)
    Abstract: Using a broad set of national industry trade shocks, I employ a novel approach to estimate agglomeration effects by exploiting within industry variation in indirect exposure to the other local industries’ (national) trade shocks across local labor markets. This variation stems from differences in local industry composition and allows to test for the existence of heterogeneous agglomeration effects across industries. I find considerable employment spillovers from other tradable industries’ trade shocks and even stronger effects within the same broad sector. Spillovers are larger for industries employing similar workers and are triggered predominantly by shocks to high technology industries.
    Keywords: Agglomeration; Local Labor Markets; Trade Shocks
    JEL: F16 J20 R11 R12
    Date: 2019–01–10
  2. By: Lorena M. D’Agostino (Department of Economics and Management, University of Trento, via Inama, 5 - 38122 Trento (Italy). Tel. +390461283197 – Fax +390461882241.); Rosina Moreno (AQR-IREA Research Group, University of Barcelona. Av. Diagonal 690 - 08034 Barcelona (Spain). Tel. +34934021823 - Fax +34934021821.)
    Abstract: Technological innovation is essential to achieve simultaneously economic, environmental and social goals (i.e. the green growth). Indeed, many studies found that environmental innovation spurs overall innovation. However, this topic has not been investigated by taking into account the geographical context. Therefore, our paper seeks to investigate whether ‘green regions’, with an increased public and private commitment in environmental issues, are related to innovation of local firms. Using data on Spanish manufacturing firms and regions, we find that environmental technologies (especially in green energy), environmental investments, and environmental management at the level of regions are positively associated to local firms’ innovation.
    Keywords: innovation, region, firm, green patents, environment. JEL classification:R11, O31, O44.
    Date: 2019–02
  3. By: Ademir Antônio Moreira Rocha; Fernando Salgueiro Perobelli
    Abstract: The main objective of this work is to investigate the present and long-term spatial distribution of the logistics sector in Brazil. In order to do so, this study seeks to answer the following questions: i) how is the logistics sector organized in Brazil? that is, is there evidence of logistics clusters?; ii) what is the long-term perspective of this organization? The Logistics Potential Mapping Model (MapLog), inspired by Krugman's Core-Periphery Model, will serve as an analytical tool to verify the long-term spatialization of the logistics sector. The results point to a change within five decades (2015-2065) of the locational pattern of the logistics sector focused on industry but not for the logistics sector focused on agriculture.
    Keywords: locational decision; logistics clusters; New Economic Geography
    JEL: C63 R12 R41
    Date: 2019–02–05
  4. By: Pierre-Philippe Combes (Institut d'Études Politiques [IEP] - Paris); Sylvie Démurger (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique); Shi Li (Beijing Normal University); Jianguo Wang (Beijing Information Science and Technology University)
    Abstract: We assess the role of internal migration and urbanisation in China on the nominal earnings of three groups of workers (rural migrants, low-skilled natives, and high-skilled natives). We estimate the impact of many city and city-industry characteristics that shape agglomeration economies, as well as migrant and human capital externalities and substitution effects. We also account for spatial sorting and reverse causality. Location matters for individual earnings, but urban gains are unequally distributed. High-skilled natives enjoy large gains from agglomeration and migrants at the city level. Both conclusions also hold, to a lesser extent, for low-skilled natives, who are only marginally negatively affected by migrants within their industry. By contrast, rural migrants slightly lose from migrants within their industry while otherwise gaining from migration and agglomeration, although less than natives. The different returns from migration and urbanisation are responsible for a large share of wage disparities in China.
    Keywords: urban development,agglomeration economies,wage disparities,migrants,human capital externalities,China
    Date: 2019
  5. By: Edmark, Karin (Stockholms universitet)
    Abstract: This paper studies the location decisions of Swedish start-up independent schools. It makes use of the great expansion of independent schools following a reform implemented in 1992 to test what local market characteristics are correlated with independent school entry. The results suggest that independent schools are more likely to choose locations with a higher share of students with high-educated parents; a higher student population density; and a lower share of students with Swedish-born parents. There is also some evidence that independent schools are less likely to locate in municipalities with a left-wing political majority. These results are robust to various alternative and flexible definitions of local school markets, which were employed in order to alleviate the Modifiable Areal Unit Problem. For some of the included variables, the definition of the local market however had a large impact on the results, suggesting that the issue of how to define regions in spatial analyses can be important.
    Keywords: Private provision; mixed markets; education sector; Modifiable Areal Unit Problem
    JEL: H44 I28 L19 R32
    Date: 2018–10–12
  6. By: Sebastian Weinand; Ludwig von Auer
    Abstract: Our paper uses micro price data collected from Germany’s Consumer Price Index to compile a highly disaggregated regional price index for the 402 counties and cities of Germany. We introduce a multi-stage version of the weighted Country-Product-Dummy method. The unique quality of our price data allows us to depart from previous spatial price comparisons and to compare only exactly identical products. We find that the price levels are spatially autocorrelated and largely driven by the cost of housing. The price level in the most expensive region is about 27 percent higher than in the cheapest region.
    Keywords: spatial price comparison, regional price index, PPP, CPD-method, hedonic regression, consumer price data
    JEL: C21 C43 E31 O18 R10
    Date: 2019
  7. By: Zhang, W.
    Abstract: This paper develops and estimates a spatial general equilibrium job search model to study the effects of local and universal (federal) minimum wage policies. In the model, firms post vacancies in multiple locations. Workers, who are heterogeneous in terms of location and education types, engage in random search and can migrate or commute in response to job offers. I estimate the model by combining multiple databases including the American Community Survey (ACS) and Quarterly Workforce Indicators (QWI). The estimated model is used to analyze how minimum wage policies affect employment, wages, job postings, vacancies, migration/ commuting, and welfare. Empirical results show that minimum wage increases in local county lead to an exit of low type (education
    Keywords: spatial equilibrium, local minimum wage policy, labor relocation
    JEL: J61 J63 J64 J68 R12 R13
    Date: 2018–12–03
  8. By: Jan Pablo Burgard; Joscha Krause; Ralf Münnich
    Abstract: The joint usage of unit- and area-level data for model-based small area estimation is investigated. The combination of levels within a single model encloses a variety of methodological problems. Firstly, it implies a critical decrease in degrees of freedom due to more model parameters that need to be estimated. This may destabilize model predictions in the presence of small samples. Secondly, unit- and area-level data has different distributional characteristics in terms of dispersion patterns and correlation structure. Thirdly, unit- and area-level data is usually subject to different kinds of measurement errors. We propose a multi-level model with level-specific penalization to overcome these issues and use unit- and area-level data jointly for model-based small area estimation. An application is provided on the example of regional health measurement in Germany. We combine health survey data on the unit-level and aggregated micro census records on the area-level to estimate hypertension prevalence.
    Keywords: disease mapping, multi-level model, multi-source estimation, penalization, stochastic gradient descent
    Date: 2019
  9. By: Küpper, Patrick; Peters, Jan Cornelius
    Abstract: Diese Studie zeigt für insgesamt 13 Indikatoren aus den Bereichen Wirtschaftskraft, soziale Lage sowie Daseinsvorsorge und Infrastruktur, wie sich die regionalen Disparitäten in Deutschland seit dem Jahr 2000 entwickelt haben. Im Ergebnis lässt sich auf der räumlichen Analyseebene der Kreisregionen weder ein grundsätzliches Auseinanderdriften der Regionen in Deutschland noch eine pauschale Abkopplung ländlicher Räume von der gesamtgesellschaftlichen Entwicklung feststellen. Für 11 der 13 Indikatoren waren die ermittelten Disparitäten im Untersuchungszeitraum relativ konstant oder haben abgenommen, bei zwei Indikatoren haben sie zugenommen. Unterschiede zwischen der Gesamtheit der ländlichen und der der nichtländlichen Räume sind ebenfalls bei 11 der 13 Indikatoren über den gesamten Beobachtungszeitraum nahezu nicht vorhanden, konstant geblieben oder haben sich zugunsten der ländlichen Räume entwickelt. Zum Teil dürfte vor allem letzteres auf eine passive Sanierung zurückzuführen sein, da insbesondere viele ländliche Regionen von einem Bevölkerungsrückgang gekennzeichnet sind. Am Ende des Beobachtungszeitraums stehen die ländlichen Räume in ihrer Gesamtheit bei drei der betrachteten 13 Indikatoren besser da als die Gesamtheit der nicht-ländlichen Räume, bei vier schlechter und bei sechs ist kein nennenswerter Niveauunterschied (mehr) vorhanden. Über alle Indikatoren hinweg lassen sich keine einheitlichen räumlichen Muster identifizieren. Inwiefern bestehende regionale Unterschiede und deren Entwicklung im Zeitablauf einen politischen Handlungsbedarf begründen, ist in erster Linie eine normative und keine wissenschaftliche Frage, sodass sie von den gesellschaftlich dazu legitimierten Entscheidungsträgern zu beantworten ist. Die Ergebnisse dieser Studie können dazu beitragen, die Entscheidungsgrundlage für die politisch Verantwortlichen zu verbessern.
    Keywords: Ländliche Regionen,Sozioökonomische Entwicklung,Sozialräumliche Ungleichheiten,Territoriale Disparitäten,Konvergenz und Divergenz,rural regions,socio-economic development,socio-spatial inequalities,territorial disparities,convergence and divergence
    JEL: R12 R23
    Date: 2019

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