nep-geo New Economics Papers
on Economic Geography
Issue of 2021‒11‒08
ten papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Suburbanization in the United States 1970-2010 By Stephen J. Redding
  2. The Heterogeneous Impacts of Higher Education Institutions on Regional Firm Location: Evidence from the Swiss Universities of Applied Sciences By Tobias Schlegel; Uschi Backes-Gellner
  3. Do Cohesion Funds foster regional trade integration? A structural gravity analysis for the EU regions By Yevgeniya Shevtsova; Jorge Diaz-Lanchas; Damiaan Persyn; Giovanni Mandras
  4. Regional disparities in Europe: should we be concerned? By Gergely Hudecz; Edmund Moshammer; Thomas Wieser
  5. Alone and Lonely. The economic cost of solitude for regions in Europe By Chiara Burlina; Andres Rodriguez-Pose;
  6. Couples, Careers, and Spatial Mobility By Nassal, Lea; Paul, Marie
  7. Is the monocentric urban economic model still empirically relevant? Assessing urban econometric predictions in 192 cities on five continents By Charlotte Liotta; Vincent Vigui\'e; Quentin Lepetit
  8. Spatial Inequality in Sub-Saharan Africa By Shifa, Muna; Leibbrandt, Murray
  9. Towards a dynamic spatial microsimulation model for projecting Auckland’s spatial distribution of ethnic groups By Mohana Mondal; Michael P. Cameron; Jacques Poot
  10. Regional Governance: Begriffe, Wirkungszusammenhänge und Evaluationsansätze By Pollermann, Kim

  1. By: Stephen J. Redding (Princeton University and CEPR and NBER)
    Abstract: The second half of the twentieth century saw large-scale suburbanization in the United States, with the median share of residents who work in the same county where they live falling from 87 to 71 percent between 1970 and 2000. We introduce a new methodology for discriminating between the three leading explanations for this suburbanization (workplace attractiveness, residence attractiveness and bilateral commuting frictions). This methodology holds in the class of spatial models that are characterized by a structural gravity equation for commuting. We show that the increased openness of counties to commuting is mainly explained by reductions in bilateral commuting frictions, consistent with the expansion of the interstate highway network and the falling real cost of car ownership. We find that changes in workplace attractiveness and residence attractiveness are more important in explaining the observed shift in employment by workplace and employment by residence towards lower densities over time.
    JEL: R12 R30 R40
    Date: 2021–05
  2. By: Tobias Schlegel; Uschi Backes-Gellner
    Abstract: The empirical literature on knowledge spillovers provides evidence that higher education institutions (HEIs) have positive effects on regional firm location, i.e., the number of start-ups or firms located in a region. However, less is known about how HEIs in different fields of study impact regional firm location in different industries. To estimate effects on firm location in different industries, we exploit the establishment of universities of applied sciences (UASs)-bachelor degree-granting three-year HEIs in Switzerland-in different fields of study. We find that effects are heterogeneous and UASs specializing in "chemistry and life sciences" and "business, management, and services" are the only UASs that positively affect regional firm location. These positive effects are limited to service industries that are characterized by both radical service innovations and incremental product and process innovations.
    Keywords: Higher Education and Research Institutions, Government Policy, Regional Economic Development
    JEL: I23 I28 O18
    Date: 2021–11
  3. By: Yevgeniya Shevtsova (European Commission - JRC); Jorge Diaz-Lanchas (Universidad Pontifica Comillas); Damiaan Persyn (University of Göttingen); Giovanni Mandras (European Commission - JRC)
    Abstract: This paper uses a structural gravity model to explore the regional trade and welfare impact of the EU Cohesion Policy Transport Infrastructure Investment programme estimated using a novel dataset of the Generalised Transport Costs for the EU regions at the NUTS2 level. The results indicate that on average additional investment in transport infrastructure can increase NUTS2 total regional exports by 0.40% and regional real GDP 1.13%. Central and Eastern European Regions enjoy the highest exports and GDP gains, while few Western European regions experience a negligible decrease in wages, which may occur as a result of factor price convergence.
    Keywords: structural gravity, trade policy, general equilibrium analysis.
    JEL: F13 F14 F15 R13
    Date: 2021–10
  4. By: Gergely Hudecz (ESM); Edmund Moshammer (ESM); Thomas Wieser
    Abstract: The economic impact of the coronavirus is likely to differ from region to region, depending on their sectoral specialisation, and may exacerbate regional disparities. This paper provides an overview of how regional disparities have evolved since the euro’s inception with an aim to help policymakers develop appropriate policy responses to support recovery following the economic shock caused by the coronavirus, and maintain the convergence process. Modes of regional support and policy intervention are crucial to helping adjustment and boosting productivity to ensure long-term sustainability and income convergence.
    Date: 2020–07–15
  5. By: Chiara Burlina; Andres Rodriguez-Pose;
    Abstract: Solitude is a rising phenomenon in the western world. The number of people affected by solitude has been rising for some time and the Covid-19 pandemic has brought this trend to the fore. Yet, we know next to nothing about the aggregate subnational economic consequences of the rise in solitude. In this paper we analyse the consequences of solitude on regional economic performance across Europe, distinguishing between two of its key dimensions: alone living, proxied by the regional share of the population in one-person households; and loneliness, proxied by the aggregate share of social interactions. We find that solitude has important implications for economic development, but that these go in different directions. While alone living is a substantial driver of economic growth across European regions, high shares of lonely people undermine it. The connection of loneliness with economic growth is, however, dependent on the frequency of in-person meetings, with large shares of the population meeting others on a weekly basis yielding the best economic returns.
    Keywords: solitude, alone living, loneliness, growth, GDP per capita, regions
    JEL: J12 P48 R23
    Date: 2021–10
  6. By: Nassal, Lea; Paul, Marie
    JEL: J61 J16 R23
    Date: 2021
  7. By: Charlotte Liotta; Vincent Vigui\'e; Quentin Lepetit
    Abstract: Despite a large body of work that developed over more than 60 years, and numerous applications in theoretical papers, the empirical knowledge accumulated on the monocentric urban model and its extensions remains limited. Using a unique dataset gathering spatially explicit data on rents, population densities, housing sizes, and transport times in neighborhoods inside 192 cities on all continents, we investigate on a systematic basis the empirical relevance of the key stylized facts predicted by this model. Some of these predictions appear extremely robust: cities are more spread out when they are richer, more populated, and when transportation or agricultural land is less costly, and 95\% of the cities of our sample exhibit the predicted negative density gradient from the city center to suburbs. Rent variations inside cities are also significantly explained by transport times in most of the cities (159 cities). However, housing production (and population densities) seem significantly impacted by rents in only slightly more than half of the cities (106 cities). Nevertheless, high levels of informality, strong regulations and planning, specific amenities (e.g. coastal amenities) are, as expected by the theory, main factors leading to the discrepancies. Overall, several decades after its creation, the standard urban model seems to still capture surprisingly well the inner structure of many cities across the world, both in developed and in developing countries.
    Date: 2021–11
  8. By: Shifa, Muna; Leibbrandt, Murray
    Abstract: This paper provides within-country spatial and national inequality estimates in SSA using comparable data from the DHS. Two indicators are used to measure household welfare. First, detailed information on living standards indicators is used to calculate asset indices using data from 24 SSA countries with comparable data in recent years. The inequality estimates based on the asset indices are used to provide contemporary asset inequality estimates in SSA. Results reveal high levels of within-country spatial and national asset inequalities in SSA, with large variations across countries. The second indicator of household welfare is based on data on access to basic services. Access to basic services is measured by deriving an index calculated using indicators such as access to water, sanitation, electricity, a telephone, and education. We compare changes in inequalities in access to basic services using data from 27 SSA countries that have comparable data for at least two periods between 1995 and 2018. The findings suggest that, apart from a few countries, within-country spatial and national inequalities in access to basic services have declined over time. Nevertheless, the level of inequality and the magnitude of the changes in inequality over time varies greatly across countries, and disparities in access to basic services remain quite large in some SSA countries. Our findings, using both indices, show that within-country regional inequality is a significant component of national inequality in the majority of SSA nations, with significant policy implications.
    Keywords: Spatial inequality,asset inequality,basic services,Africa
    JEL: D31 D10 D4
    Date: 2021
  9. By: Mohana Mondal (University of Waikato); Michael P. Cameron (University of Waikato); Jacques Poot (University of Waikato and Vrije Universiteit Amsterdam)
    Abstract: In this paper we describe the development, calibration and validation of a dynamic spatial microsimulation model for projecting small area (area unit) ethnic populations in Auckland, New Zealand. The key elements of the microsimulation model are a module that projects spatial mobility (migration) within Auckland and between Auckland and the rest of the world, and a module that projects ethnic mobility. The model is developed and calibrated using 1996-2001 New Zealand Linked Census (i.e. longitudinal) data, and then projected forward to 2006. We then compare the results with the actual 2006 population. We find that in terms of indexes of overall residential sorting and ethnic diversity, our projected values are very close to the actual values. At a more disaggregated spatial scale, the model performs well in terms of the simulated normalised entropy measure of ethnic diversity for area units, but performs less well in terms of projecting residential sorting for each individual ethnic group.
    Keywords: dynamic microsimulation model; ethnic identity; location transition; ethnic transition
    JEL: J11 R10 R15
    Date: 2021–10–30
  10. By: Pollermann, Kim
    Abstract: The term governance describes structures and processes for the intentional steering of collective societal matters, typically addressed in concurrence by actors of state, economy and civil society. In the German-speaking community, the term “regional governance”, which corresponds to „local governance” in the English language, is well-established in the spatial sciences. The purpose of this work is to display and newly systematize the state of knowledge about regional governance. Therefore, possibilities for empirical research as well as restrictions for impact analyses are elaborated. Up to now, there is no common and generally acknowledged definition of governance. To enable a clear use of the term, an overview of critical estimations surrounding the term governance will be given. This involves methodological problems as well as blind spots in theoretical approaches. Against this background, a separate definition of regional governance is established. The examination of impact interdependencies within regional governance shows that for a comprehensive impact model, a kind of a meta theory would be needed. However, such a model is not possible due to its high degree of complexity. In fact, there is a double-sided complexity as it is necessary to regard the impact interdependencies of the governance arrangements themselves as well as of regional development as a whole. In addition, characteristic phases of governance processes must be taken into an account. Possible explanations of impact relations are derived from success factors. The examination of impact interdependencies within regional governance shows that for a comprehensive impact model, a kind of a meta theory would be needed. However, such a model is not possible due to its high degree of complexity. In fact, there is a double-sided complexity as it is necessary to regard the impact interdependencies of the governance arrangements themselves as well as of regional development as a whole. In addition, characteristic phases of governance processes must be taken into an account. Possible explanations of impact relations are derived from success factors.
    Keywords: Community/Rural/Urban Development
    Date: 2021–11–03

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