nep-geo New Economics Papers
on Economic Geography
Issue of 2020‒01‒20
ten papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Place-Based Policies: principles and developing country applications By Anthony Venables; Gilles Duranton
  2. Evaluating State and Local Business Tax Incentives By Cailin R. Slattery; Owen M. Zidar
  3. Optimal Taxation under Regional Inequality By Sebastian G. Kessing; Vilen Lipatov; J. Malte Zoubek
  4. The spatial dimension of productivity: Connecting the dots across industries, firms and places By Alexandra Tsvetkova; Rudiger Ahrend; Joaquim Oliveira Martins; Alexander C. Lembcke; Polina Knutsson; Dylan Jong; Nikolaos Terzidis
  5. Continuation of air services at Berlin-Tegel and its effects on rental prices By Breidenbach, Philipp; Cohen, Jeffrey P.; Schaffner, Sandra
  6. The Closing of a Major Airport: Immediate and Longer-Term Housing Market Effects By Jeffrey P. Cohen; Cletus C. Coughlin; Jonas C. Crews; Stephen L. Ross
  7. Which Night Lights Data Should we Use in Economics, and Where? By Gibson, John; Olivia, Susan; Boe-Gibson, Geua
  8. Blowing in the wind? The effect of weather on the intensity and spatial distribution of crime By Hart, Rannveig; Pedersen, Willy; Skardhamar, Torbjørn
  9. Die wirtschaftliche Spezialisierung ländlicher Räume By Meister, Moritz; Niebuhr, Annekatrin; Peters, Jan Cornelius; Reutter, Philipp; Stiller, Johannes
  10. Die Binnenwanderung von Arbeitskräften in Deutschland: Eine deskriptive Analyse für ländliche Räume auf Basis der Integrierten Erwerbsbiografien (IEB) des IAB By Meister, Moritz; Stiller, Johannes; Peters, Jan Cornelius; Birkeneder, Antonia

  1. By: Anthony Venables; Gilles Duranton
    Abstract: Many development policies, such as placement of infrastructure or local economic development schemes, are “place-based.†Such policies are generally intended to stimulate private sector investment and economic growth in the treated place, and as such they are difficult to appraise and evaluate. This paper sets the rationale for place-based policies and a framework for analyzing their effects and assessing their social value. It then reviews the literature on place-based policies in the contexts of special economic zones, transport policy, lagging regions, and local economic development policies.
    Keywords: Place-based policies, spatial, economic corridors, lagging regions
    JEL: O10 O18 R10 R11 R13
    Date: 2019–12–18
  2. By: Cailin R. Slattery; Owen M. Zidar
    Abstract: This essay describes and evaluates state and local business tax incentives in the United States. In 2014, states spent between $5 and $216 per capita on incentives for firms in the form of firm-specific subsidies and general tax credits, which mostly target investment, job creation, and research and development. Collectively, these incentives amounted to nearly 40% of state corporate tax revenues for the typical state, but some states' incentive spending exceeded their corporate tax revenues. States with higher per capita incentives tend to have higher state corporate tax rates. Recipients of firm-specific incentives are usually large establishments in manufacturing, technology, and high-skilled service industries, and the average discretionary subsidy is $178M for 1,500 promised jobs. Firms tend to accept subsidy deals from places that are richer, larger, and more urban than the average county, and poor places provide larger incentives and spend more per job. Comparing “winning” and runner-up locations for each deal in a bigger and more recent sample than in prior work, we find that average employment within the 3-digit industry of the deal increases by roughly 1,500 jobs. While we find some evidence of direct employment gains from attracting a firm, we do not find strong evidence that firm-specific tax incentives increase broader economic growth at the state and local level. Although these incentives are often intended to attract and retain high-spillover firms, the evidence on spillovers and productivity effects of incentives appears mixed. As subsidy-giving has become more prevalent, subsidies are no longer as closely tied to firm investment. If subsidy deals do not lead to high spillovers, justifying these incentives requires substantial equity gains, which are also unclear empirically.
    JEL: H2 H25 H71 R11 R3 R5
    Date: 2020–01
  3. By: Sebastian G. Kessing; Vilen Lipatov; J. Malte Zoubek
    Keywords: Optimal taxation, redistribution, regional inequality, migration, multidimensional screening, delayed optimal control
    JEL: H11 J45 R12
    Date: 2019
  4. By: Alexandra Tsvetkova; Rudiger Ahrend; Joaquim Oliveira Martins; Alexander C. Lembcke; Polina Knutsson; Dylan Jong; Nikolaos Terzidis
    Abstract: This working paper offers a synthesis of the current knowledge on the determinants of productivity. It carefully reviews both “spatial” (e.g. agglomerations, infrastructure, geography) and “aspatial” (e.g. human capital, labour regulations, industry-level innovation and dynamism) productivity drivers and demonstrates how the underlying spatial dynamics behind the latter group makes all productivity determinants “spatial” in nature. The paper demonstrates that productivity is inherently a spatial phenomenon and its understanding without a local/regional dimension is incomplete.
    Keywords: cities, firms, industries, local development, places, productivity growth, regions, spatial productivity
    JEL: R11 R12 R58
    Date: 2020–01–13
  5. By: Breidenbach, Philipp; Cohen, Jeffrey P.; Schaffner, Sandra
    Abstract: Berlin-Brandenburg airport (BER) has become well-known far beyond German borders due to substantial mis-planning and heavy delays in opening. Planned to open in March 2012 and to take over all air-transport services from Germany's capital city, with the other airports expected to close, construction work at BER is still ongoing in 2019. Four weeks before the expected opening of the airport, the opening was suddenly delayed by several months. This unexpected delay was an exogeneous shock for residents surrounding the largest existing airport, Berlin-Tegel, which is expected to close upon the opening of Berlin-Brandenburg. A series of additional delay announcements followed. We analyze the effect of airport noise and proximity to the airport on housing rental prices. Our identification strategy is based on the expectations regarding the closing of Berlin-Tegel airport. The results suggest that there is a negative effect of noise on housing rental prices while there are positive effects of proximity to Berlin-Tegel. These delays reduce rental prices by a small amount, when compared with the noise discounts in the literature for owner-occupied properties in studies of other cities. These findings likely occur because renters have a relatively short time horizon for their tenure in an apartment, on average, to benefit from the future noise reduction. For instance, a one-year delay for a renter who plans to stay in an apartment for only one or two years implies a very low benefit from the future noise reduction. We also find that the benefits from a delay announcement have a net negative effect on prices for rental properties that are in the noisier areas but further drive time from Tegel; and a net positive effect in the less noisy areas that are shorter drive time from Tegel. This likely re flects the disamenity from prolonged airport noise exposure, as well as the benefits from proximity due to expectation of continued ease of employment and travel access.
    Keywords: real estate prices,airports,aviation noise,proximity,Germany
    JEL: R3 R4
    Date: 2019
  6. By: Jeffrey P. Cohen (National Bureau of Economic Research; University of Connecticut; University of Texas at Austin; UT Austin); Cletus C. Coughlin (Board of Governors of the Federal Reserve System (U.S.)); Jonas C. Crews; Stephen L. Ross (National Bureau of Economic Research; University of Connecticut; Department of Public Policy; Center for Real Estate and Urban Economic Studies; Massachusetts Institute of Technology; Center for Population Research)
    Abstract: The closing of a busy airport has large effects on noise and economic activity. Using a unique dataset, we examine the effects of closing Denver’s Stapleton Airport on nearby housing markets. We find evidence of immediate anticipatory price effects upon announcement, but no price changes at closing likely because closing was widely anticipated. Further, after airport closure, high income and white households moved into these locations and developers upgraded the quality of houses being built. Finally, post-closing, these demographic and housing stock changes had substantial effects on housing prices, even after restricting the sample to pre-existing housing.
    Keywords: Airport noise; housing prices; airport closing; anticipatory effects; long-term effects; neighborhood change; dynamic price effects
    JEL: G14 R21 R31 R41
    Date: 2020–01–08
  7. By: Gibson, John; Olivia, Susan; Boe-Gibson, Geua
    Abstract: Popular DMSP night lights data are flawed by blurring, top-coding, and lack of calibration. Yet newer and better VIIRS data are rarely used in economics. We compare these two data sources for predicting Indonesian GDP at the second sub-national level. DMSP data are a bad proxy for GDP outside of cities. The city lights-GDP relationship is twice as noisy using DMSP as using VIIRS. Spatial inequality is considerably understated with DMSP data. A Pareto adjustment to correct for top-coding in DMSP data has a modest effect but still understates spatial inequality and misses key features of economic activity in Jakarta.
    Keywords: Night lights; inequality; GDP; DMSP; VIIRS; Indonesia
    JEL: O15 R12
    Date: 2019–12–14
  8. By: Hart, Rannveig; Pedersen, Willy; Skardhamar, Torbjørn (University of Oslo)
    Abstract: Despite an extensive literature on weather and crime, the magnitude of weather effects on crime and their implications for practical policing remain unclear. Similarly, the effects of weather on the location of crime have barely been explored empirically. We investigated how weather influences the intensity and spatial distribution of crime in Oslo, the capital of Norway. Geocoded locations of criminal offences were combined with data on temperature, wind, and rain. We used negative binomial count models to assess the effect of weather on the intensity of crime and generalized additive models (GAMs) to test for spatial variations. The intensity and spatial distribution of crime were not very sensitive to weather in Oslo. The largest effect was for drug crimes, for which maximum relative to minimum temperature was related to a single incident increase every six days. No effects were found for dislocation in the spatial models. In Oslo, Norway, weather conditions are of little importance for practical policing. The effects of weather on the intensity of crime are miniscule, and effects on the location of crime even smaller.
    Date: 2019–01–03
  9. By: Meister, Moritz; Niebuhr, Annekatrin; Peters, Jan Cornelius; Reutter, Philipp; Stiller, Johannes
    Abstract: Dieses Working Paper beschreibt die Branchenstruktur von Regionstypen und Regionen in Deutschland. Sein Fokus liegt auf der wirtschaftlichen Spezialisierung ländlicher Räume relativ zur bundesweiten Gesamtwirtschaft. Die Auswertungen wurden im Rahmen des Forschungsvorha-bens 'Die räumliche Mobilität von Arbeitskräften im Erwerbsverlauf - Analysen für ländliche Räume in Deutschland' (MobiLä) vorgenommen, das aus Mitteln des Bundesprogramms Ländli-che Entwicklung (BULE) gefördert wird. Die Analyse regionaler Branchenanteile zeigt, dass die betrachteten vier Typen ländlicher Räume zwar durch eine Branchenstruktur gekennzeichnet sind, die sich von der bundesweiten Struktur unterscheidet, die entsprechenden Abweichungen in der Summe allerdings überschaubar sind. Neben einer Spezialisierung auf den primären Sektor, dessen Bedeutung für die Beschäftigung aber auch in ländlichen Räumen begrenzt ist, ist eine Spezialisierung der ländlichen Räume insgesamt auf wissensintensive als auch auf nicht-wissensintensive Industrien festzustellen. Wissensintensive Dienstleistungen sind in ländlichen Regionen hingegen deutlich unterrepräsentiert. Eine detaillierte Analyse der Spezialisierung der einzelnen Kreisregionen macht eine ausgeprägte Heterogenität innerhalb des Regionstyps 'ländliche Räume' deutlich. Extreme Abweichungen von der Branchenstruktur Deutschlands zeigen sich nur für wenige Kreisregionen und werden zumeist durch Branchen des Verarbeiten-den Gewerbes getrieben. Besonders auffällig ist außerdem eine negative Korrelation des Indus-trieanteils und des Anteils nicht-wissensintensiver Dienstleistungen. Die unterschiedliche Spezia-lisierung der Regionen dürfte eine Bedeutung für die Heterogenität der regionalen Wanderungs-bilanzen von Arbeitskräften haben, sowohl hinsichtlich des Wanderungssaldos insgesamt als auch bezogen auf die Zusammensetzung der Wanderungsströme. Zum einen beeinflusst die Branchen-struktur das regionale Lohnniveau und sie kann gewisse Effekte auf die wirtschaftliche Dynamik und die Arbeitsnachfrage haben. Zum anderen variieren die benötigten beruflichen Qualifikatio-nen der Unternehmen ganz erheblich über verschiedene Wirtschaftszweige hinweg, weshalb es von der jeweiligen Spezialisierung abhängt, für welche Arbeitskräfte eine bestimmte Region einen großen und attraktiven Arbeitsmarkt bietet.
    Keywords: Binnenwanderung,Deutschland,ländliche Räume,Lokalisationsvorteile,Spezialisierung,Wirtschaftsstruktur,Germany,Industry structure,Internal migration,Localization economies,Rural areas,Specialization
    JEL: R12 R23
    Date: 2019
  10. By: Meister, Moritz; Stiller, Johannes; Peters, Jan Cornelius; Birkeneder, Antonia
    Abstract: Dieses Working Paper entstand im Rahmen des gemeinsamen Forschungsvorhabens "Die räumliche Mobilität von Arbeitskräften im Erwerbsverlauf - Analysen für ländliche Räume in Deutschland" (MobiLä) des Thünen-Instituts für Ländliche Räume und des Instituts für Arbeitsmarkt- und Berufsforschung (IAB). Das Projekt wird aus Mitteln des Bundesprogramms Ländliche Entwicklung (BULE) gefördert. Datengrundlage sind die Integrierten Erwerbsbiografien (IEB) des IAB, die Informationen zu Wohnorten und individuellen Charakteristika von mehr als 90 Prozent aller Erwerbspersonen in Deutschland beinhalten. Unsere Analysen zeigen, dass die Wanderungsbilanzen ländlicher Regionen nicht per se negativ sind, sondern durch eine ausgeprägte Heterogenität gekennzeichnet sind und das Ergebnis derWanderungsströme zwischen ländlichen und nicht-ländlichen Räumen im Untersuchungszeitraum schwankt. Das Wanderungsergebnis einer Region variiert zudem je nach betrachteter Personengruppe. Für den Zeitraum 2014-2017 weisen die Wanderungsströme sozialversicherungspflichtig Beschäftigter auf deutliche Suburbanisierungstendenzen hin, die sich in einer Nettozuwanderung in die ländlichen Räume niederschlagen. Davon profitieren in besonderem Maße die ländlichen Regionen im näheren Umfeld von Großstädten. Wanderungsverluste für den Regionstyp der ländlichen Räume beobachten wir bei den jüngeren Arbeitskräften sowie für arbeitslose Erwerbspersonen und Empfänger von Grundsicherungsleistungen. Insgesamt weisen vor allem die Wanderungsbilanzen einiger sehr ländlicher Räume mit einer weniger guten sozioökonomischen Lage auf ungünstige demografische Entwicklungstendenzen hin. Dies trifft insbesondere auf entsprechende Regionen in Ostdeutschland zu. Bei Betrachtung aller Arbeitskräfte ergeben sich aber auch für zwei Drittel der sehr ländlichen westdeutschen Regionen negative Wanderungssalden. Für die meisten ländlichen Räume im Einzugsbereich größerer Ballungsräume stellt sich die Situation positiv dar. Die Wanderungsbewegungen verändern die räumliche Struktur innerhalb von Kreisregionen verschiedener Regionstypen auf unterschiedlicheWeise. In Regionen mit unterdurchschnittlicher Beschäftigungsentwicklung steigt durch die intraregionalenWanderungsbewegungen der Arbeitskräfte die räumliche Konzentration ihrerWohnorte. In ländlichen Räumen nahe der großen Ballungszentren trägt die intraregionale Mobilität dagegen zur Dekonzentration der dort wohnenden Arbeitskräfte bei.
    Keywords: Arbeitskräftemobilität,Binnenwanderung,Deutschland,ländliche Räume,Labor mobility,Internal migration,Germany,Rural areas
    JEL: R23 J21
    Date: 2019

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