nep-geo New Economics Papers
on Economic Geography
Issue of 2021‒04‒26
thirteen papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Modeling Inter-Regional Patient Mobility: Does Distance Go Far Enough? By Michael Irlacher; Dieter Pennerstorfer; Anna-Theresa Renner; Florian Unger
  2. Immigration and Regional Specialization in AI By Gordon H. Hanson
  3. Innovation in Malmö after the Öresund Bridge By Ejermo, Olof; Hussinger, Katrin; Kalash, Basheer; Schubert, Torben
  4. Consumer Mobility, Online and On-site Commerce and the Geographic Concentration of Economic Activity: Evidence from 20 Billion Transactions By David Bounie; Youssouf Camara; John W. Galbraith
  5. Revisiting metropolitan house price-income relationships By Elias Oikarinen; Steven C. Bourassa; Martin Hoesli; Janne Engblom
  6. Understanding changes in the geography of opportunity over time: the case of Santiago, Chile By Brain, Isabel; Prieto, Joaquin
  7. Cities and the sea level By Yatang Lin; Thomas K.J. McDermott; Guy Michaels
  8. Counterfactual Dissimilarity: Can Changes in Demographics and Income Explain Increased Racial Integration in U.S. Cities? By Paul Carrillo; Jonathan Rothbaum
  9. How Many Members of the Creative Class Should a City Seek to Attract? By Batabyal, Amitrajeet
  10. Flattening the Curve: Pandemic-Induced Revaluation of Urban Real Estate By Arpit Gupta; Vrinda Mittal; Jonas Peeters; Stijn Van Nieuwerburgh
  11. Income inequality, tourism and resources endowment in Uruguay: a spatial and distributional approach By Natalia Porto; Natalia Espinola; Laura Carella
  12. Una tipología de las áreas económicas locales de Argentina en base a perfiles sectoriales de coaglomeración territorial (2011-2018) By Andrés Niembro; Carla Daniela Calá; Andrea Belmartino
  13. Regionale Arbeitsmärkte im Corona-Jahr 2020: Resiliente prosperierende Standorte und zunehmende Disparitäten By Margarian, Anne

  1. By: Michael Irlacher; Dieter Pennerstorfer; Anna-Theresa Renner; Florian Unger
    Abstract: This paper estimates a theory-guided gravity equation of regional patient flows. In our model, a patient’s choice to consult a physician in a particular region depends on a measure of spatial accessibility that accounts for the exact locations of both patients and physicians. Introducing this concept in a spatial economics model, we derive an augmented gravity-type equation and show that our measure of accessibility performs better in explaining patient flows than bilateral distance. We conduct a rich set of counterfactual simulations, illustrating that the effects of physicians’ market exits on patient mobility crucially depend on their exact locations.
    Keywords: gravity model, patient mobility, spatial accessibility, two-step floating catchment areas (2SFCA)
    JEL: R10 R12 R23 I11 I18
    Date: 2021
  2. By: Gordon H. Hanson
    Abstract: I examine the specialization of US commuting zones in AI-related occupations over the 2000 to 2018 period. I define AI-related jobs based on keywords in Census occupational titles. Using the approach in Lin (2011) to identify new work, I measure job growth related to AI by weighting employment growth in AI-related occupations by the share of job titles in these occupations that were added after 1990. Overall, regional specialization in AI-related activities mirrors that of regional specialization in IT. However, foreign-born and native-born workers within the sector tend to cluster in different locations. Whereas specialization of the foreign-born in AI-related jobs is strongest in high-tech hubs with a preponderance of private-sector employment, native-born specialization in AI-related jobs is strongest in centers for military and space-related research. Nationally, foreign-born workers account for 55% of job growth in AI-related occupations since 2000. In regression analysis, I find that US commuting zones exposed to a larger increases in the supply of college-educated immigrants became more specialized in AI-related occupations and that this increased specialization was due entirely to the employment of the foreign born. My results suggest that access to highly skilled workers constrains AI-related job growth and that immigration of the college-educated helps relax this constraint.
    JEL: J61 R12
    Date: 2021–04
  3. By: Ejermo, Olof (Lund University); Hussinger, Katrin (University of Luxembourg); Kalash, Basheer (SciencesPo OFCE); Schubert, Torben (CIRCLE, Lund University)
    Abstract: We analyse the effect of the Öresund Bridge, a combined railway and motorway bridge between Swedish Malmö and the Danish capital Copenhagen, on inventive activity in the region of Malmö. Applying difference-in-difference estimation on individual level data, our findings suggest that the Öresund Bridge has led to a significant increase in the number of patents per individual with a background prone to patenting in the Malmö region as compared to the Gothenburg and Stockholm regions. Further, we show that the dominating mechanism is the attraction of highly qualified workers to the Malmö region following the construction of the bridge.
    Keywords: transport infrastructure; innovation; Öresund Bridge; cross-border regions; patents; inventors; agglomeration effects
    JEL: L91 O31 O33 R11
    Date: 2021–04–22
  4. By: David Bounie; Youssouf Camara; John W. Galbraith
    Abstract: The geographical pattern of consumers’ expenditures, whether made on-site or online, has implications for the location of economic activity and regional economic development. Data limitations have however limited our knowledge of this aspect of consumer behaviour. This paper uses transaction data to investigate such geographical patterns, and the impact of online commerce on these and on inter-regional retail trade linkages between cities and regions. We build original mobility and inter-regional retail trade measures from nearly 20 billion domestic consumer transactions made through bank cards, in France 2018-19. We find evidence that online consumer expenditure are more heavily concentrated in the already-large regional economies, relative to on-site expenditure, which suggests that the increasing movement toward online purchasing tend to increase the concentration of overall economic activity, and may have important implications for regional economic development. La répartition géographique des dépenses des consommateurs, qu'elles soient effectuées dans les commerces physiques ou en ligne, a des répercussions sur la localisation de l'activité économique et le développement économique régional. Le manque de données a toutefois limité notre connaissance de la répartition géographique des dépenses des consommateurs. Cet article utilise des données de transaction par carte bancaire pour étudier l'impact du commerce en ligne sur les comportements de dépense des consommateurs et sur les liens commerciaux entre les villes et les régions. Nous construisons des mesures originales de mobilité des consommateurs et de liens commerciaux entre villes et régions en utilisant près de 20 milliards de transactions par cartes bancaires en France sur la période 2018-19. Nous montrons que les dépenses de consommation en ligne par rapport à celles réalisées dans les commerces physiques sont plus fortement concentrées dans les économies régionales de taille importante, ce qui suggère que la croissance du commerce électronique tend à augmenter la concentration de l'activité économique globale, et peut avoir des implications importantes pour le développement économique régional.
    Keywords: Consumption Expenditure,Consumer Mobility,Inter-Regional Trade,Ecommerce, Dépenses de consommation,Mobilité des consommateurs,Commerce interrégional,Commerce électronique
    Date: 2021–04–12
  5. By: Elias Oikarinen (University of Turku, Department of Economics); Steven C. Bourassa (Florida Atlantic University); Martin Hoesli (University of Geneva - Geneva School of Economics and Management (GSEM); Swiss Finance Institute; University of Aberdeen - Business School); Janne Engblom (University of Turku - Turku School of Economics)
    Abstract: We explore long-term patterns of the house price-income relationship across the 70 largest U.S. metropolitan areas. In line with a standard spatial equilibrium model, our empirical findings indicate that house price-income ratios are typically not stable even over the long run. In contrast, panel regression models that relate house prices to aggregate personal income and allow for regional heterogeneity yield stationary long-term relationships in most areas. The relationship between house prices and income varies significantly across locations, underscoring the importance of using estimation techniques that allow for spatial heterogeneity. The substantial differences across metropolitan areas are closely related to the price elasticity of housing supply.
    Keywords: House prices; Personal income; Spatial equilibrium; Regional heterogeneity; Supply elasticity
    JEL: C33 R10 R31
    Date: 2021–04
  6. By: Brain, Isabel; Prieto, Joaquin
    Abstract: The geography of opportunity research has made significant progress in recent years. The use of composite indexes aimed at capturing the attributes of different urban areas has been particularly useful to deepen the understanding of the role that the urban context plays in people’s life chances. However, little attention has been paid to the dynamic component of the geography of opportunity, that is, what explains its changes over time and whether or not those changes (positive or negative) are substantial. The contribution of this work is that it offers a methodology (a conceptual framework, a composite geography of opportunity index and relative and absolute measures) that provides a holistic and in-depth approach to analyse not only the set of opportunities available in the different urban areas but also their change over time (how they change, the depth of those changes and the forces explaining it). The information generated through this approach has the advantage of better informing place-based policy interventions since it offers not only a clear classification of areas but also a useful method for comparing and monitoring the changes in the geography of opportunity over time.
    Keywords: geography of opportunity; drives of urban change; multidimensional indices; municipal fiscal capacity; urban attributes; urban land market activity
    JEL: R14 J01 N0
    Date: 2021–04–01
  7. By: Yatang Lin; Thomas K.J. McDermott; Guy Michaels
    Abstract: Construction on low elevation coastal zones is risky for both residents and taxpayers who bail them out, especially when sea levels are rising. We study this construction using spatially disaggregated data on the US Atlantic and Gulf coasts. We document nine stylized facts, including a sizeable rise in the share of coastal housing built on flood-prone land from 1990-2010, which concentrated particularly in densely populated areas. To explain our findings, we develop a model of a monocentric coastal city, which we then use to explore the consequences of sea level rise and government policies.
    Keywords: cities, climate change, sea level rise
    JEL: R11 Q54 R14
    Date: 2021–04
  8. By: Paul Carrillo (George Washington University); Jonathan Rothbaum (U.S. Census Bureau)
    Abstract: Urban areas in the U.S. have experienced important changes in racial/ethnic distributions over the last two decades. In the average urban area today black-white racial integration has increased by 10.6 percent between 1990 and 2010. Changes in racial and ethnic distributions and gentrification are often associated with changes in residents’ demographic characteristics, such as income, education and age. This paper applies a non-parametric spatial decomposition technique using complete (restricted-use) microdata files from the 1990 Decennial Long Form Census and 2008-2012 American Community Surveys to assess what portion of the changes in racial distributions can be attributed to changes in individual characteristics. We find that that, on average, a little over a third of the observed increase in integration can be accounted for by changes in observed individual characteristics.
    Keywords: Counterfactual Distribution; Decomposition; Spatial Econometrics
    JEL: C14 R23 R30
    Date: 2021–10
  9. By: Batabyal, Amitrajeet
    Abstract: In this note, we focus on the decision problem faced by a city authority (CA) who seeks to attract members of the creative class to her city by providing a local public good (LPG). We construct a stylized model of this interaction and shed light on three questions. First, we determine the optimal number of creative class members to attract when the CA maximizes the utility of each member who chooses to reside in the city. Second, assuming the CA provides the LPG optimally given the total number of resident members, we compute the loss borne by this CA from having a suboptimal number of members living in the city. Finally, we ascertain what number of members living in the city maximizes the total utility obtained by the CA and then compare this answer with our answer to the first question stated above.
    Keywords: City Authority, Creative Class, Local Public Good, Optimal Membership
    JEL: R11 R50
    Date: 2020–11–14
  10. By: Arpit Gupta; Vrinda Mittal; Jonas Peeters; Stijn Van Nieuwerburgh
    Abstract: We show that the COVID-19 pandemic brought house price and rent declines in city centers, and price and rent increases away from the center, thereby flattening the bid-rent curve in most U.S. metropolitan areas. Across MSAs, the flattening of the bid-rent curve is larger when working from home is more prevalent, housing markets are more regulated, and supply is less elastic. Housing markets predict that urban rent growth will exceed suburban rent growth for the foreseeable future.
    JEL: G12 R12 R23 R51
    Date: 2021–04
  11. By: Natalia Porto; Natalia Espinola; Laura Carella
    Abstract: It has been widely recognized that tourism plays a crucial role both as an income generator and as a source of employment in many countries. While its impact at local, regional and national level of employment is undoubted, there is a line of research that has pointed out that jobs in tourism sector have less favorable working conditions than other sectors and they could have negative effects on income distribution. Another feature that could be also related to income distribution is the regional endowment of touristic amenities, which could affect tourism activities. Considering these facts, it is possible that the allocation and distribution of amenities in a country could generate regional disparities in income distribution due to tourism. The aim of this study is to explore regional inequalities in wages and its relationship with the development of tourism in Uruguay. We estimate a spatial error model using a balanced panel data set from 2006 to 2019 on 19 Uruguayan departments. We built four indices of touristic amenities and then interact them with tourism employment, as a proxy for tourism development. The evidence suggests that there are some regional disparities in income distribution in tourism sector. Some specifications of the models show a positive relationship between tourism employment and inequality in labor income, and that the departments with cultural-historical amenities tend to have a more equalitarian distribution of labor income.
    Keywords: amenity-led development, income distribution, regional development, spatial econometrics, tourism-related employment, tourism development
    JEL: R1 L8 J4
    Date: 2020–11
  12. By: Andrés Niembro; Carla Daniela Calá; Andrea Belmartino
    Abstract: El estudio de la especialización productiva de las regiones es clave para diseñar políticas de desarrollo territorial. Para superar algunas limitaciones de la literatura existente, proponemos definir la especialización regional a partir de técnicas de análisis multivariado aplicadas a datos de la totalidad del empleo asalariado registrado en el sector privado en las Áreas Económicas Locales (AEL) de Argentina. Primero, conformamos un conjunto de perfiles sectoriales de coaglomeración territorial y, a partir de ellos, definimos una tipología empírica de las AEL en función de sus patrones productivos. Las comparaciones con clasificaciones previas indican que la metodología propuesta arroja resultados con una mayor riqueza analítica, permitiendo dar cuenta, a la vez, del tipo de especialización y del grado de diversidad productiva regional.
    Keywords: Colocalización; Especialización; Diversificación; Análisis de Componentes Principales; Análisis Cluster
    JEL: C38 O54 R12
    Date: 2020–11
  13. By: Margarian, Anne
    Abstract: Die durch das Covid-19-Virus hervorgerufene 'Corona-Krise' hat im Jahr 2020 zu Verwerfungen auf vielen Arbeitsmärkten geführt und möglicherweise bereits bestehende soziale Ungleichheiten verstärkt. Die vorliegende Studie fragt, inwiefern verschiedene Regionen und Regionstypen von den Arbeitsmarkteffekten der Corona-Krise unterschiedlich betroffen sind. Anhand verschiedener deskriptiver Analysen auf Kreisebene wird der Einfluss der siedlungsstrukturellen Lage, der Wirtschaftsstruktur und der Einkommenskraft von Standorten auf die 'Corona-Effekte' am Arbeitsmarkt untersucht. Zentrale Indikatoren für die kurz- und mittelfristige Dynamik sind der Anteil der Kurzarbeit sowie die Veränderungen im Jahr 2020 gegenüber 2019 in den kumulierten Zu- und Abgängen in und aus Arbeitslosigkeit, in denselben Zu- und Abgängen im Dezember ('Ausgleichseffekt') und in der Arbeitslosenquote. Es kann gezeigt werden, dass vor allem Standorte ohne anfängliche strukturelle Probleme relativ gut durch das Corona-Jahr 2020 gekommen sind. Die Gefahr ist allerdings groß, dass sich im Zuge der Corona-Krise gerade in den Agglomerationsräumen die Ungleichheit zwischen Personen und Personengruppen innerhalb der Arbeitsmärkte weiter und nachhaltig verstärkt. Die Corona-Krise könnte nach den Ergebnissen außerdem dazu beitragen, zumindest mittelfristig auch die Disparitäten zwischen siedlungsstrukturell vergleichbaren Standorten zu erhöhen.
    Keywords: Corona-Effekt,Arbeitsmärkte,Branchenstruktur,Lageeffekte,RäumlicheDisparitäten,Corona-effect,Labour markets,Industry structure,Location effects,Spatial disparities
    JEL: J21 J64 O18 O50 R11
    Date: 2021

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