nep-geo New Economics Papers
on Economic Geography
Issue of 2021‒10‒18
nine papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Institutions and the productivity challenge for European regions By Rodríguez-Pose, Andrés
  2. Employment Agglomerations and Spatial Mismatch in the Metropolitan Area of Bogota By Linares Sanchez, Jose
  3. The Causal Effects of Place on Health and Longevity By Tatyana Deryugina; David Molitor
  4. Transportation and Quality of Life: Evidence from Denmark By Hybel, Jesper; Mulalic, Ismir
  5. Multilocal living and spatial development By Danielzyk, Rainer; Dittrich-Wesbuer, Andrea; Duchêne-Lacroix, Cédric; Fischer, Tatjana; Hilti, Nicola; Perlik, Manfred; Petzold, Knut; Ritzinger, Anne; Scheiner, Joachim; Sturm, Gabriele; Tippel, Cornelia; Weiske, Christine
  6. Migration as a Vector of Economic Losses from Disaster-Affected Areas in the United States By Catalina Anampa Castro; Katherine Curtis; Jack DeWaard; Elizabeth Fussell; Kathryn McConnell; Kobie Price; Michael Soto; Stephan Whitaker
  7. Spillover in the UK Housing Market By Dominik Blatt; Kausik Chaudhuri; Hans Manner
  8. A New Approach to Measuring Intercity Differences in Housing Costs By Hyung Joon Chung; Nathaniel Harris
  9. But clouds got in my way: Bias and bias correction of VIIRS nighttime lights data in the presence of clouds By Ayush Patnaik; Ajay Shah; Anshul Tayal; Susan Thomas

  1. By: 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 article 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: Labour productivity; institutional quality; physical capital; human capital; innovation; regions; Europe; OUP deal
    JEL: R14 J01 N0
    Date: 2021–06–10
  2. By: Linares Sanchez, Jose
    Abstract: This paper examines the wage premium of being located inside the Central Business Centre (CBD) or employment sub-centres in the metropolitan area of Bogota. Then, following literature on spatial mismatching, analyses potential impacts of agglomerations on social and productive exclusion. The core argument is that socially or productively excluded groups in Bogota do not benefit from positive externalities arising from agglomerations because they face multiple spatial barriers that prevent their effective access. Based on spatial statistics and estimations, I find an elasticity or ‘wage premium’ close to 6% and huge disparities between UPZs and municipalities in the metropolitan area of Bogota. This means, CBD and employment sub-centres in Bogota work as exclusive locations. Consequently, policies should be focused on increasing strategic accessibility through housing, transport, economic development through land-use regulations and institutional arrangements.
    Keywords: Strategic Accessibility, Central Business District, CBD, employment sub-centres, wage premium, agglomerations economies, Bogota, Spatial Mismatching.
    JEL: R1 R12 R2 R23
    Date: 2020–04–10
  3. By: Tatyana Deryugina; David Molitor
    Abstract: Life expectancy varies substantially across local regions within a country, raising conjectures that place of residence affects health. However, population sorting and other confounders make it difficult to disentangle the effects of place on health from other geographic differences in life expectancy. Recent studies have overcome such challenges to demonstrate that place of residence substantially influences health and mortality. Whether policies that encourage people to move to places that are better for their health or that improve areas that are detrimental to health are desirable depends on the mechanisms behind place effects, yet these mechanisms remain poorly understood.
    Keywords: life expectancy, regional variation, place effects
    JEL: I10 R10
    Date: 2021
  4. By: Hybel, Jesper (Aalborg University, Department of the Built Environment); Mulalic, Ismir (Department of Economics, Copenhagen Business School)
    Abstract: This paper investigates the importance of transportation for quality of life in Denmark. We first calibrate a simple general equilibrium model to analyse how local wage levels, housing costs, and commuting costs vary across urban areas as well as to construct a quality of life index that measures a representative household's willingness to pay for local amenities. We find that the quality of life is high in large cities. Wages and rents are also substantially higher in the urban areas that are dense. We then regress the quality of life index on observed amenities to infer how much quality of life is associated with transportation. Our empirical results suggest that the quality of the public transport system is particularly important for the quality of life.
    Keywords: Quality of life; Rent gradients; Wage gradients; Commuting costs; Amenities; Transportation
    JEL: H40 J30 O52 R10 R40
    Date: 2021–09–20
  5. By: Danielzyk, Rainer; Dittrich-Wesbuer, Andrea; Duchêne-Lacroix, Cédric; Fischer, Tatjana; Hilti, Nicola; Perlik, Manfred; Petzold, Knut; Ritzinger, Anne; Scheiner, Joachim; Sturm, Gabriele; Tippel, Cornelia; Weiske, Christine
    Abstract: This position paper was compiled by the members of the Working Group on "Multilocal living and spatial development" at the Academy for Territorial Development (ARL). In this position paper, the "Multilocal living and spatial development" Working Group at the Academy for Territorial Development (ARL) discusses a current social phenomenon that has spatial implications at various levels: multilocal living arrangements, i.e. the practice of living alternately at different locations. Increasing numbers of people live at more than one location and establish spaces for their everyday activities at each location (residential multilocality).
    Date: 2021
  6. By: Catalina Anampa Castro; Katherine Curtis; Jack DeWaard; Elizabeth Fussell; Kathryn McConnell; Kobie Price; Michael Soto; Stephan Whitaker
    Abstract: In this paper, we infuse consideration of migration into research on economic losses from extreme weather disasters. Taking a comparative case study approach and using data from the Federal Reserve Bank of New York/Equifax Consumer Credit Panel, we document the size of economic losses via migration from 23 disaster-affected areas in the United States after the most damaging hurricanes, tornadoes, and wildfires on record. We then employ demographic standardization and decomposition to determine if these losses primarily reflect changes in out-migration or changes in the economic resources that migrants take with them (greater economic losses per migrant). Finally, we consider the implications of these losses for changing spatial inequality in the United States. While disaster-affected areas and those living in them differ in their experiences of and responses to extreme weather disasters, we generally find that, relative to the year before an extreme weather disaster, economic losses via migration from disaster-affected areas increase the year of and after the disaster, that these changes primarily reflect changes in out-migration (vs. the economic resources that migrants take with them), and that these losses briefly disrupt the status quo by temporarily reducing spatial inequality.
    Keywords: Natural Disaster; Migration; Consumer Credit; Decomposition; Spatial Inequality
    JEL: R23 Q54 D12 J60
    Date: 2021–10–13
  7. By: Dominik Blatt (Statistics Netherlands, Netherlands); Kausik Chaudhuri (Leeds University Business School, UK); Hans Manner (University of Graz, Austria)
    Abstract: We study spillovers between regional housing markets in the UK in the period 1973 to 2020. The analysis is based on a vector autoregressive model that allows for structural breaks in its parameters at unknown times. In particular, we allow for distinct breakpoints in the conditional mean, variance and correlation parameters, which enables us to distinguish different spillover channels. Based on the resulting piecewise constant model we compute the spillover index by Diebold and Yilmaz. We find significant time variation of the spillover index that indicates a decreasing role of London for the rest of the country, but that also indicates reduced contagion risk and the existence of the North-South divide that declined later in the sample. Furthermore, a central role of the Midlands is demonstrated.
    Keywords: vector autoregression; structural breaks; contagion; spillovers; regional housing markets.
    JEL: C32 G01 R10 R31
    Date: 2021–10
  8. By: Hyung Joon Chung (George Washington University); Nathaniel Harris (George Washington University)
    Abstract: Intercity housing price indexes that rely on median house price or pooled hedonic regressions adjust imperfectly for differences in housing characteristics. In addition, intercity house price indexes that rely on asset value are a biased measure of differences in the rental price of housing, because capitalization rates vary dramatically across cities. To mitigate these shortcomings, we create Fisher Ideal intercity housing price indexes for both rental and asset prices using a two-way Oaxaca-Blinder decomposition. Our method improves upon current house price indexes by using rental rather than asset prices, controlling for location and housing characteristics, and allowing implicit prices to vary across locations.
    Keywords: intercity house price indices, blinder-oaxaca decomposition, Fisher Ideal index, interarea cost of living differences
    JEL: C1 R1 R3
    Date: 2021
  9. By: Ayush Patnaik (xKDR Forum); Ajay Shah (xKDR Forum); Anshul Tayal (xKDR Forum); Susan Thomas (xKDR Forum)
    Abstract: The VIIRS nighttime lights dataset constitutes progress in the measurement of night lights radiance, with monthly data at a pixel of roughly 0.5km × 0.5km. We identify a downward bias in the reported radiance when the number of cloud-free images in a month is low. This bias often takes on large values from -10% to -30%. We develop a cautious bias-correction scheme which partially addresses this problem. This scheme is applied upon the pixel-level dataset to create an improved dataset. The bias-corrected data hews closer to the ground truth as seen in household survey data.
    JEL: C8 E0 E1 R1
    Date: 2021–10

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