nep-geo New Economics Papers
on Economic Geography
Issue of 2021‒05‒10
24 papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Urban specialisation; from sectoral to functional By Gervais, Antoine; Markusen, James R.; Venables, Anthony
  2. Repeated collaboration of inventors across European regions By Gergõ Tóth; Zoltán Elekes; Sándor Juhász; Balázs Lengyel
  3. Urban Growth Shadows By Cuberes, David; Desmet, Klaus; Rappaport, Jordan
  4. Modeling inter-regional patient mobility: Does distance go far enough? By Michael Irlacher; Dieter Pennerstorfer; Anna-Theresa Renner; Florian Unger
  5. Consumption Access and Agglomeration: Evidence from Smartphone Data By Miyauchi, Yuhei; Nakajima, Kentaro; Redding, Stephen J.
  6. High-speed Rail and the Spatial Distribution of Economic Activity: Evidence from Japan's Shinkansen By Hayakawa, Kazunobu; Koster, Hans R.A.; Tabuchi, Takatoshi; Thisse, Jacques-François
  7. Trade and the spatial distribution of transport infrastructure By Felbermayr, Gabriel; Tarasov, Alexander
  8. Institutions and the Productivity Challenge for European Regions By Ganau, Roberto; Rodríguez-Pose, Andrés
  9. Social capital and economic growth in the regions of Europe By Fitjar, Rune Dahl; Muringani, Jonathan; Rodríguez-Pose, Andrés
  10. Exploring Synergies between EU Cohesion Policy and Horizon 2020 Funding across European Regions: An analysis of regional funding concentration on key enabling technologies and societal grand challenges By Julia Bachtroegler-Unger; Mathieu Doussineau
  11. To be connected or not to be connected? The role of long-haul economies By Koster, Hans R.A.; Tabuchi, Takatoshi; Thisse, Jacques-François
  12. Industry interconnectedness and regional economic growth in Germany By Shutters, Shade T.; Seibert, Holger; Alm, Bastian; Waters, Keith
  13. Zoomshock: The geography and local labour market consequences of working from home. By De Fraja, Gianni; Matheson, Jesse; Rockey, James
  14. Motorways, urban growth, and suburbanisation:evidence from three decades of motorway construction in Portugal By Bruno T. Rocha; Patrícia C. Melo; Nuno Afonso; João de Abreu e Silva
  15. Quality of sub-national government and regional development in Africa By Iddawela, Yohan; Lee, Neil; Rodríguez-Pose, Andrés
  16. The Economic Geography of Global Warming By Cruz, Jose-Luis; Rossi-Hansberg, Esteban
  17. Working from home: Too much of a good thing? By Behrens, Kristian; Kichko, Sergey; Thisse, Jacques-François
  18. Direct, spillover and welfare effects of regional firm subsidies By Siegloch, Sebastian; Wehrhöfer, Nils; Etzel, Tobias
  19. Borders within Europe By Santamaría, Marta; Ventura, Jaume; Yesilbayraktar, Ugur
  20. Welfare Effects of Property Taxation By Löffler, Max; Siegloch, Sebastian
  21. Aspects of Income Inequality in a Creative Region By Batabyal, Amitrajeet
  22. Who Bears the Burden of Local Taxes? By Brülhart, Marius; Danton, Jayson; Parchet, Raphaël; Schläpfer, Jörg
  23. Travel distance and travel time using Stata: New features and major improvements in georoute By Sylvain Weber; Martin Péclat; August Warren
  24. Converting variables between non-hierarchical regions: The case of Austrian municipalities and ZIP-code areas By Dieter Pennerstorfer„

  1. By: Gervais, Antoine; Markusen, James R.; Venables, Anthony
    Abstract: The comparative advantage of many cities is based on their efficiency in the production of 'functions', e.g., business services such as finance, law, engineering, or similar functions that are used by firms in a wide range of sectors. Firms that use these functions may choose to source them locally, or to purchase them from other cities. The former case gives rise to cities developing a pattern of sectoral specialization, and the latter a pattern of functional specialization. This paper develops a model to investigate circumstances under which either of these outcomes is more likely, and finds that predictions of the model are consistent with changes in the pattern of specialization in the US over recent decades. The model combines elements of the literatures on economic geography, multinational firms, urban economics, and trade theory. A two-city country trades with the larger world, and workers within the country are mobile between the two cities. Productivity in a given function varies across cities, giving rise to urban comparative advantage. This may be due to exogenous technological differences (Ricardian) or to city- and function-specific scale economies. Sectors differ in the intensity with which they use different functions, giving rise to a pattern of sectoral and functional specialisation. We generate a number of economic insights, including that, as costs of remote sourcing fall, cities' functional specialization tends to increase and their sectoral specialization falls. We examine the model's predictions empirically over a 20-30-year period for US states. In line with the predictions of the model, we find that functional concentration rises and sectoral concentration falls over this time span. Similarly, we find that regional specialization in functions rises and regional specialization in sectors falls over the period.
    Keywords: agglomeration economies; firm organization; fragmentation; Geographic concentration; multiple equilibria; Regional specialization
    JEL: F12 F23 R11 R12 R13
    Date: 2021–01
  2. By: Gergõ Tóth (Agglomeration and Social Networks Lendület Research Group, Centre for Economic-and Regional Studies, Budapest, Hungary and Spatial Dynamics Lab, University College Dublin, Dublin, Ireland); Zoltán Elekes (Agglomeration and Social Networks Research Group, Centre for Economic and Regional Studiesand Centre for Regional Science at Umea University (CERUM), Umea University, 90187 Umea, Sweden); Sándor Juhász (NETI Lab, Corvinus Institute for Advanced Studies, Budapest Corvinus University, Budapest, Hungary); Balázs Lengyel (Agglomeration and Social Networks Lendület Research Group, Centre for Economic-and Regional Studies, Budapest, Hungary;International Business School Budapest, Budapest, Hungaryand NETI Lab, Corvinus Institute for Advanced Studies, Budapest Corvinus University, Budapest, Hungary)
    Abstract: This paper explores the spatial patterns and underlying determinants of repeated inventor collaboration across European NUTS 3 regions. It is found that only a small fraction of co-inventor linkages across regions are repeated, while community detection reveals that these collaborations are clustered in geographical space more intensively compared with collaboration in general. Additional results from gravity modelling indicate that links in the inter-regional co-patenting network emerge mainly through the triadic collaboration of regions, while geographical proximity becomes the most influential factor for repeating co-inventor ties. In addition to that, the combination of technological similarity and shared third partner regions offer a premium for the likelihood of repeating collaboration, but only when geographical proximity is present as an enabler.
    Keywords: collaborative knowledge production; inter-regional collaboration; co-inventor network; repeated collaboration; European Research Area; gravity model
    JEL: D85 O31 O43 O52 R11 R58
    Date: 2021–03
  3. By: Cuberes, David; Desmet, Klaus; Rappaport, Jordan
    Abstract: Does a location's growth benefit or suffer from being geographically close to large economic centers? Spatial proximity may lead to competition and hurt growth, but it may also improve market access and enhance growth. Using data on U.S. counties and metro areas for the period 1840-2017, we document this tradeoff between urban shadows and urban access. Proximity to large urban centers was negatively associated with growth between 1840 and 1920, and positively associated with growth after 1920. Using a two-city spatial model, we show that the secular evolution of inter-city and intra-city commuting costs can account for this. Alternatively, the long-run decline in inter-city shipping costs relative to intra-city commuting costs is also consistent with these observed patterns.
    Keywords: 1840-2017; City Growth; commuting; spatial economics; United States; urban access; urban shadows; Urban systems
    JEL: N91 N92 R11 R12
    Date: 2021–02
  4. 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: 2021–04
  5. By: Miyauchi, Yuhei; Nakajima, Kentaro; Redding, Stephen J.
    Abstract: We provide new theory and evidence on the role of consumption access in understanding the agglomeration of economic activity. We combine smartphone data that records user location every 5 minutes of the day with economic census data on the location of service-sector establishments to measure commuting and non-commuting trips within the Greater Tokyo metropolitan area. We show that non-commuting trips are frequent, more localized than commuting trips, strongly related to the availability of nontraded services, and occur along trip chains. Guided by these empirical findings, we develop a quantitative urban model that incorporates travel to work and travel to consume non-traded services. Using the structure of the model, we estimate theoretically-consistent measures of travel access, and show that consumption access makes a sizable contribution relative to workplace access in explaining the observed variation in residents and land prices across locations. Undertaking counterfactuals for changes in travel costs, we show that abstracting from consumption trips leads to a substantial underestimate of the welfare gains from a transport improvement (because of the undercounting of trips) and leads to a distorted picture of changes in travel patterns within the city (because of the different geography of commuting and non-commuting trips).
    Keywords: agglomeration; Transportation; Urbanization
    JEL: R2 R3 R41
    Date: 2021–02
  6. By: Hayakawa, Kazunobu; Koster, Hans R.A.; Tabuchi, Takatoshi; Thisse, Jacques-François
    Abstract: We investigate the effects of high-speed rail (HSR) on the location of economic activity. We set up a spatial quantitative general equilibrium model that incorporates spatial linkages between firms (including manufacturing and services), agglomeration economies, as well as commuting and migration. The model is estimated for Japan in order to investigate the impacts of the Shinkansen, i.e., the first HSR ever built. We show that traveling by train strengthens firms' linkages, but is less important for commuting interactions. The Shinkansen increases welfare by about 5%. We show that extensions of the Shinkansen network may have large effects (up to a 30% increase in employment) on connected municipalities, although the effects are smaller for places with higher fixed costs. Our counterfactuals show that, without the Shinkansen, Tokyo and Osaka would be 6.3% and 4.4% larger, respectively.
    Keywords: agglomeration; commuting; employment; high-speed rail; Population
    JEL: D04 H43 R42
    Date: 2021–02
  7. By: Felbermayr, Gabriel; Tarasov, Alexander
    Abstract: The distribution of transport infrastructure across space is the outcome of deliberate government planning that reflects a desire to unlock the welfare gains from regional economic integration. Yet, despite being one of the oldest government activities, the economic forces shaping the endogenous emergence of infrastructure have not been rigorously studied. This paper provides a stylized analytical framework of open economies in which planners decide non-cooperatively on transport infrastructure investments across continuous space. Allowing for intra- and international trade, the resulting equilibrium investment schedule features underinvestment that turns out particularly severe in border regions and that is amplified by the presence of discrete border costs. In European data, the mechanism explains about 16% of the border effect identified in a conventionally specified gravity regression.
    Keywords: international trade,infrastructure investment,economic geography,border effect
    JEL: F11 R42 R13
    Date: 2021
  8. By: Ganau, Roberto; Rodríguez-Pose, Andrés
    Abstract: Europe has witnessed a considerable labour productivity slowdown in recent decades. Many potential explanations have been proposed to address this productivity 'puzzle'. However, how the quality of local institutions influences labour productivity has been overlooked by the literature. This paper addresses this gap by evaluating how institutional quality affects labour productivity growth and, particularly, its determinants at the regional level during the period 2003-2015. The results indicate that institutional quality influences regions' labour productivity growth both directly -as improvements in institutional quality drive productivity growth- and indirectly -as the short- and long-run returns of human capital and innovation on labour productivity growth are affected by regional variations in institutional quality.
    Keywords: Europe; Human Capital; Innovation; institutional quality; labour productivity; Physical Capital; regions
    JEL: E24 J24 O47 R11
    Date: 2021–03
  9. By: Fitjar, Rune Dahl; Muringani, Jonathan; Rodríguez-Pose, Andrés
    Abstract: Social capital is an important factor explaining differences in economic growth among regions. However, the key distinction between bonding social capital, which can lead to lock-in and myopia, and bridging social capital, which promotes knowledge flows across diverse groups, has been overlooked in growth research. In this paper, we address this shortcoming by examining how bonding and bridging social capital affect regional economic growth, using data for 190 regions in 21 EU countries, covering eight waves of the European Social Survey between 2002 and 2016. The findings confirm that bridging social capital is linked to higher levels of regional economic growth. Bonding social capital is highly correlated with bridging social capital and associated with lower growth when this is controlled for. We do not find significantly different effects of bonding social capital in regions with more or less bridging social capital, or vice versa. We examine the interaction between social and human capital, finding that bridging social capital is fundamental for stimulating economic growth, especially in low-skilled regions. Human capital also moderates the relationship between bonding social capital and growth, reducing the negative externalities imposed by excessive bonding.
    Keywords: bonding; bridging; economic growth; EU; regions; social capital
    JEL: O17 O43 R11
    Date: 2021–03
  10. By: Julia Bachtroegler-Unger (Österreichisches Institut für Wirtschaftsforschung (WIFO),Vienna, Austria); Mathieu Doussineau (European Commission - JRC)
    Abstract: Over the course of the 2014-2020 period, the European Union has invested more than €125bn into support to research and innovation through two main channels: the excellence-based Horizon 2020 programme and its cohesion policy implemented through the European Structural and investment funds (ESIF) and in particular the European Regional Development fund (ERDF). While projects funded by ESIF are selected in the context of place-based operational programmes and smart specialisation strategies (S3), Horizon 2020 grants are assigned based on the quality of the project proposals and consortia without any geographical criteria. A concentration of R&I funding from both funding schemes in the same technological or policy area could point to the creation of a synergy between EU funding as suggested by the concept of smart specialisation and encouraged by the European Commission. This report uses project data to analyse the regional distribution of Horizon 2020 and ESIF funding among key enabling technologies and societal grand challenges and to map potential synergies between different EU funding policies.
    Keywords: ERDF, ESIF, Cohesion policies, database, Horizon 2020
    JEL: O30 O38 O32
    Date: 2021–04
  11. By: Koster, Hans R.A.; Tabuchi, Takatoshi; Thisse, Jacques-François
    Abstract: We investigate what regions are the winners and losers from large transportation infrastructure improvements. We argue that long-haul economies - implying that the marginal transportation cost decreases with distance - play a pivotal role in understanding the location choices of firms. Using data from Japan and the Netherlands, we first establish that long-haul economies are an important feature of modern transportation networks. Then, we develop a simple model to show that improvements in transportation infrastructure have non-trivial impacts on the location choices of firms. While these investments are often beneficial to large regions, they may be detrimental to small intermediate regions, implying job losses. Using data on Japan's Shinkansen, we confirm that 'in-between' municipalities that are connected to the HSR witness a sizable decrease in employment.
    Keywords: accessibility; long-haul economies; Regional Development; Transport Infrastructure
    JEL: H40 O18 R30 R42
    Date: 2021–03
  12. By: Shutters, Shade T.; Seibert, Holger (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Alm, Bastian; Waters, Keith
    Abstract: "Urban systems, and regions more generally, are the epicenters of many of today's social issues. Yet they are also the global drivers of technological innovation and thus it is critical that we understand their vulnerabilities and what makes them resilient to different types of shocks. We take regions to be systems composed of internal networks of interdependent components. As the connectedness of those networks increases, it allows information and resources to move more rapidly within a region. Yet, it also increases the speed and efficiency at which the effects of shocks cascade through the system. Here we analyze regional networks of interdependent industries and how their structures relate to a region's vulnerability to shocks. Methodologically, we utilize a metric of economic connectedness, known as tightness, which attempts to quantify the ambiguous notion of a region's internal connectedness relative to other regions. Using industry employment, we calculate the economic tightness of German regions during the Great Recession, comparing it to each region's economic performance during the shock (2007-2009) and during recovery (2009-2011). We find that tightness is negatively correlated with changes in economic performance during the shock but positively correlated with performance during recovery. This suggests that regional economic planners face a tradeoff between being more productive or being more vulnerable to the next economic shock. Finally, we speculate on how these findings from the Great Recession may highlight potential implications of the ongoing COVID-19 pandemic and suggest future research that would compare outcomes of these two global shocks." (Author's abstract, IAB-Doku) ((en))
    JEL: J40 R00 R11 R12 R58
    Date: 2021–04–27
  13. By: De Fraja, Gianni; Matheson, Jesse; Rockey, James
    Abstract: The Covid-19 health crisis has led to a substantial increase in work done from home, which shifts economic activity across geographic space. We refer to this shift as a Zoomshock. The Zoomshock has implications for locally consumed services; much of the clientèle of restaurants, coffee bars, pubs, hair stylists, health clubs, and the like located near workplaces is transferred to establishments located near where people live. In this paper we measure the Zoomshock at a very granular level for UK neighbourhoods. We establish three important empirical facts. First, the Zoomshock is large; many workers can work-from-home and live in a different neighbourhood than they work. Second, the Zoomshock is very heterogeneous; economic activity is decreasing in productive city centres and increasing residential suburbs. Third, the Zoomshock moves workers away from neighbourhoods with a large supply of locally consumed services to neighbourhoods where the supply of these services is relatively scarce. We discuss the implications for aggregate employment and local economic recovery following the Covid-19 health crisis.
    Keywords: COVID-19; Local Labour Markets; lockdown; teleworking; work-from-home
    JEL: H12 J01 R12
    Date: 2021–01
  14. By: Bruno T. Rocha; Patrícia C. Melo; Nuno Afonso; João de Abreu e Silva
    Abstract: Portugal moved from having less than 200 km of motorways before joining the European Union in 1986 to having the fifth highest motorway density relative to population in the Union in 2017. This paper studies the relationship between the expansion of the Portuguese motorway network between 1981 and 2011 and the growth of population and employment in the 275 mainland municipalities of the country. We address the endogeneity of the geography of motorways using instrumental variables based on historical transport networks from 1800 and 1945. Our findings suggest that, on average, new motorways caused large increases in both population and employment. In line with existing evidence for other countries, we find that motorways contributed to suburbanisation, as the impact of motorways on population growth (but not on employment growth) is particularly strong in suburban municipalities. In addition, motorways also appear to have influenced urban agglomeration dynamics, as their effect on population growth depends positively on the municipality’s population size in 1970.
    Keywords: transport infrastructure, motorways, population redistribution, employment, suburbanisation, instrumental variables.
    JEL: O18 R11 R49 R58
    Date: 2021–05
  15. By: Iddawela, Yohan; Lee, Neil; Rodríguez-Pose, Andrés
    Abstract: Despite widespread interest in government quality and economic development, the role of sub-national government has been largely overlooked. This represents an omission in Africa, given ongoing processes of devolution in much of the continent. In this article, we consider the impact of sub-national government institutions on economic development in 356 regions across 22 African countries. We create a novel index of sub-national government quality based on large-scale survey data and assess its impact on regional economies using satellite data on night light luminosity. To address causality concerns, we instrument sub-national government quality with data from pre-colonial societies. Our results show a positive and significant relationship between sub-national government quality and regional economic development, even when controlling for the quality of national level institutions. Better sub-national governments are a powerful but often overlooked determinant of development in Africa.
    Keywords: Africa; Decentralisation; institutions; quality of government; regions
    JEL: E02 N97 O43
    Date: 2021–01
  16. By: Cruz, Jose-Luis; Rossi-Hansberg, Esteban
    Abstract: Global warming is a worldwide and protracted phenomenon with heterogeneous local economic effects. In order to evaluate the aggregate and local economic consequences of higher temperatures, we propose a dynamic economic assessment model of the world economy with high spatial resolution. Our model features a number of mechanisms through which individuals can adapt to global warming, including costly trade and migration, and local technological innovations and natality rates. We quantify the model at a 1-degree by 1-degree resolution and estimate damage functions that determine the impact of temperature changes on a region's fundamental productivity and amenities depending on local temperatures. Our baseline results show welfare losses as large as 15% in parts of Africa and Latin America but also high heterogeneity across locations, with northern regions in Siberia, Canada, and Alaska experiencing gains. Our results indicate large uncertainty about average welfare effects and point to migration and, to a lesser extent, innovation as important adaptation mechanisms. We use the model to assess the impact of carbon taxes, abatement technologies, and clean energy subsidies. Carbon taxes delay consumption of fossil fuels and help flatten the temperature curve but are much more effective when an abatement technology is forthcoming.
    JEL: F63 F69 Q51 Q54 Q56
    Date: 2021–02
  17. By: Behrens, Kristian; Kichko, Sergey; Thisse, Jacques-François
    Abstract: We develop a general equilibrium model with three primary production factors---land, skilled, and unskilled labor---and three sectors---construction, intermediate inputs, and final consumption---to study how different intensities of telecommuting affect the efficiency of firms that embrace home working, as well as its impact on the whole economy. In doing so, we pay particular attention to the effects of increasing working from home (WFH) that go through changes in the production and consumption of buildings: more WFH reduces firms' demands for office space, but increases workers' demand for living space since additional room is required to work from home. We find that more WFH is a mixed blessing: the relationship between telecommuting and productivity or GDP is â?©-shaped, whereas telecommuting raises income inequality. Hence, WFH is not a panacea since an excessive downscaling of workspaces may be damaging to all and exacerbate economic inequality.
    Keywords: alternative work arrangements; housing; land; office; telecommuting; working from home
    JEL: J20 R13 R14
    Date: 2021–01
  18. By: Siegloch, Sebastian; Wehrhöfer, Nils; Etzel, Tobias
    Abstract: We analyze the effects of a large place-based policy, subsidizing up to 50% of investment costs of manufacturing firms in East Germany after reunification. We show that a 1-percentage-point decrease in the subsidy rate leads to a 1% decrease in manufacturing employment. We document important spillovers for untreated sectors in treated counties, untreated counties connected via trade and local taxes, whereas we do not find spillovers on counties in the same local labor market. We show that the policy is at least as efficient as cash transfers to the unemployed, but is more effective in curbing regional inequality.
    Keywords: place-based policies,employment,spillovers,administrative microdata
    JEL: H24 J21 J23
    Date: 2021
  19. By: Santamaría, Marta; Ventura, Jaume; Yesilbayraktar, Ugur
    Abstract: Are country borders still an impediment to trade flows within Europe? Using a rich microlevel survey with 3 million annual shipments of goods by road across 269 European regions, we construct a matrix of bilateral trade flows for 12 industries from 2011 to 2017. We then use the causal inference framework to design an dentification strategy to estimate the causal effect of country borders on trade flows. Take two similar region pairs, the first one containing regions in different countries and the second one containing regions in the same country. The market share of the origin region in the destination region for the international pair is only 17.5 percent that of the intranational pair. We refer to this estimate as the average border effect. When we look at each industry separately, we find border effects that range from 12.3 to 38.9 percent. When we look at recent borders, i.e. created after 1910, we find a border effect of 28.8 percent, which is smaller than the average border effect but still quite large. The implication is clear: Europe is far from having a single market.
    Keywords: Border effect; European integration; Regional Trade
    JEL: D71 F15 F55 H77 O57
    Date: 2021–01
  20. By: Löffler, Max; Siegloch, Sebastian
    Abstract: We analyze the welfare implications of property taxation. Using a sufficient statistics approach, we show that the tax incidence depends on how housing prices, labor and other types of incomes as well as public services respond to property tax changes. Empirically, we exploit the German institutional setting with 5,200 municipal tax reforms for identification. We find that higher taxes are fully passed on to rental prices after three years. The pass-through is lower when housing supply is inelastic. Combining reduced form estimates with our theoretical framework, we simulate the welfare effects of property taxes and show that they are regressive.
    Keywords: Local Labor Markets; property taxation; rental housing; Tax Incidence; welfare
    JEL: H22 H41 H71 R13 R31 R38
    Date: 2021–03
  21. By: Batabyal, Amitrajeet
    Abstract: We analyze a stylized creative region’s economy. There are two goods (consumption and creative capital) and creative class members differ in their income generating abilities. The distribution of abilities in the creative class population is such that the median ability is less than the average ability. There is a proportional income tax rate and all tax revenues are redistributed to the creative class members by the regional authority (RA) with a uniform, lump-sum transfer. In this setting, we perform four tasks. First, we determine the tax rate that maximizes the lump-sum transfer. Second, we show that income equality requires the tax rate to equal unity and that the poorest creative class member is better off with a lower tax rate and hence more inequality. Third, given the ith creative class member’s preference over the tax rate and the transfer, we ascertain the tax rate that will be chosen by majority voting. Finally, we discuss the connection between increasing inequality and the majority chosen tax rate.
    Keywords: Consumption, Creative Capital, Creative Class, Income Inequality, Proportional Tax
    JEL: D63 H71 R11
    Date: 2020–09–10
  22. By: Brülhart, Marius; Danton, Jayson; Parchet, Raphaël; Schläpfer, Jörg
    Abstract: We study the incidence of local taxes on the welfare of heterogeneous residents. A structural model of imperfectly mobile households who differ in terms of income and family status allows us to back out preferences for local public goods and mobility parameters that vary by family status. We calibrate the model with plausibly causal tax-base and housing-price elasticity estimates. Based on municipality-level data for Switzerland, we find that households with children have stronger preferences for locally provided public services and are less mobile than households without children. This in turn implies that the burden of local taxes is mainly borne - linearity of taxes and capitalization into lower housing notwithstanding - by above-median income households without children.
    Keywords: heterogeneous households; household mobility; housing prices; Local taxation; public-good preferences; Tax Incidence
    JEL: H24 H71 R21 R31
    Date: 2021–02
  23. By: Sylvain Weber; Martin Péclat; August Warren
    Abstract: The user-written command georoute is designed to calculate travel distance and travel time between two addresses or two geographical points identified by their coordinates. Since its conception and description by Weber and Péclat (2017), the command has been gradually maintained and enriched. The new version of georoute presented in this article encompasses major improvements, such as the possibility to specify transport mode and departure time. The new features open the way to a multitude of more sophisticated research applications.
    Keywords: Stata, geocoding, travel distance, travel time.
    JEL: C87 R41
    Date: 2021–04
  24. By: Dieter Pennerstorfer„
    Abstract: This report provides a method to convert variables between two non-hierarchical regional levels of aggregation. This approach is applied to municipalities and ZIP-code areas in Austria for the period between 2012 and 2020. Based on detailed information on the spatial distribution of the population at the 250 m grid-cell level and on the spatial extent of both municipalities and ZIP-code areas, I calculate weights to convert variables from one regional entity to the other. This report also provides the data necessary for this data conversion.
    Date: 2021–04

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