nep-geo New Economics Papers
on Economic Geography
Issue of 2022‒03‒07
five papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Dynamic Spatial General Equilibrium By Benny Kleinman; Ernest Liu; Stephen J. Redding
  2. Cultural and public services as factors of city resilience ? Evidence from big plant closures and downsizing By Kristian Behrens; Manassé Drabo; Florian Mayneris
  3. A Scoping Review on the Multiplicity of Scale in Spatial Analysis By Oshan, Taylor M.; Wolf, Levi John; Sachdeva, Mehak; Bardin, Sarah; Fotheringham, Alexander Stewart
  4. Agglomeration effects and housing market dynamics By Nygaard, Christian; Parkinson, Sharon; reynolds, margaret
  5. Measuring Localization in the Age of Economic Globalization By Baris, Kristina; Crisostomo, Ma. Charmaine; Garay, Krizia Anne; Jabagat, Christian Regie; Mariasingham, Mahinthan; Mores, Elyssa Mariel

  1. By: Benny Kleinman (Princeton University); Ernest Liu (Princeton University); Stephen J. Redding (Princeton University and CEPR and NBER)
    Abstract: We develop a dynamic spatial model with forward-looking investment and migration. We characterize the existence and uniqueness of the steady-state equilibrium; generalize existing dynamic exact-hat algebra techniques to incorporate investment; and linearize the model to provide an analytical characterization of the economy’s transition path using spectral analysis. We show that U.S. states are closer to steady-state at the end of our sample period in 2015 than during the prior five decades. We !nd that much of the observed decline in the rate of income convergence across US states is explained by gradual adjustment given initial conditions, rather than by shocks to fundamentals, and that both capital and labor dynamics contribute to this gradual adjustment. We show that capital and labor dynamics interact with one another to generate slow and heterogeneous rates of convergence to steady-state.
    Keywords: spatial dynamics, economic geography, trade, migration
    JEL: F14 F15 F50
    Date: 2021–10
  2. By: Kristian Behrens; Manassé Drabo; Florian Mayneris
    Abstract: We combine census and establishment-level data for 2001–2017 to study the impact of mass layoffs of big manufacturing plants on city-level population and its composition in Canada. We find that manufacturing plant closures and downsizing lead to a decline in subsequent population growth, especially among the young, those of working age, migrants, and the less skilled. There are also sizable negative effects on the local employment in other industries, which can explain why such negative local labor demand shocks affect population dynamics. Public services (health and education) and cultural and recreational amenities are shown to make cities more resilient and help them retain population following negative local labor demand shocks. Nous combinons des données de recensement et des données au niveau des établissements pour la période 2001-2017 afin d'étudier l'impact des licenciements massifs dans les grandes entreprises manufacturières sur la taille et la composition des villes canadiennes. Nous constatons que les fermetures d'usines et les licenciements massifs affectent négativement la croissance démographique ultérieure, en particulier parmi les jeunes, les personnes en âge de travailler, les migrants et les personnes moins qualifiées. Il existe également des effets négatifs importants sur l'emploi local dans d'autres secteurs que l’industrie manufacturière, ce qui peut expliquer pourquoi de tels chocs négatifs de demande de main-d'oeuvre affectent la dynamique démographique. Les services publics (en santé et en éducation) et les aménités culturelles et récréatives rendent les villes plus résilientes et les aident à conserver leur population après des chocs négatifs de demande de main-d'oeuvre.
    Keywords: Socio-demographic change,plant closures,downsizing,manufacturing,city resilience, Changements sociodémographiques,fermetures d'usines,licenciements massifs,industrie manufacturière,résilience des villes
    JEL: J10 R11 R12 R23
    Date: 2021–11–12
  3. By: Oshan, Taylor M.; Wolf, Levi John (University of Bristol); Sachdeva, Mehak; Bardin, Sarah; Fotheringham, Alexander Stewart
    Abstract: Scale is a central concept in the geographical sciences and is an intrinsic property of many spatial systems. It also serves as an essential thread in the fabric of many other physical and social sciences, which has contributed to the use of different terminology for similar manifestations of what we refer to as ‘scale’, leading to a surprising amount of diversity around this fundamental concept and its various ‘multiscale’ extensions. To address this, we review common abstractions about spatial scale and how they are employed in quantitative research. We also explore areas where the conceptualizations of multiple spatial scales can be differentiated. This is achieved by first bridging terminology and concepts, and then conducting a scoping review of the topic. A typology for spatial scale is discussed that can be used to categorize its multifarious meanings and measures. This typology is then used to distinguish what we term ‘process scale,’ from other types of spatial scale and to highlight current trends in uncovering aspects of process scale. We end with suggestions on how to further build knowledge regarding spatial processes through the lens of spatial scale.
    Date: 2022–02–01
  4. By: Nygaard, Christian; Parkinson, Sharon; reynolds, margaret
    Abstract: This research quantifies productivity-related agglomeration benefits arising from the concentration of employment in Australia. While agglomeration provides a policy rationale for densifying cities and concentrating employment, it also leads to higher house prices, which reduce entry and ongoing affordability, greater pollution and other wellbeing detriments such as crime, crowding and noise.
    Date: 2021–10–06
  5. By: Baris, Kristina (Asian Development Bank); Crisostomo, Ma. Charmaine (Asian Development Bank); Garay, Krizia Anne (Asian Development Bank); Jabagat, Christian Regie (Asian Development Bank); Mariasingham, Mahinthan (Asian Development Bank); Mores, Elyssa Mariel (Asian Development Bank)
    Abstract: In a highly integrated global economy, linkages of domestic sectors to global trade measure an economy’s ability to gain from participating in global value chains. On the other hand, the strength of domestic linkages can provide insights on an economy's cross-industry trade and extent of the localization of economic activity. This paper proposes a measure of domestic linkages based on a value added approach. Using the Asian Development Bank’s multiregional input–output table from 2000 and 2007 to 2020, this paper estimates a backward agglomeration index, which measures the extent to which different sectors in the economy source value added from domestic sectors for domestic consumption. An analogous forward agglomeration index, which measures the extent to which domestic sectors absorb value added, is also defined. The combinations of backward and forward agglomeration indexes are consequently used to analyze an economy or a sector’s agglomeration status. The agglomeration indexes show a positive correlation with existing reshoring indexes, and a negative correlation with global value chain participation. The indexes are further extended to account for distribution of activities within domestic sectors.
    Keywords: agglomeration; value added; globalization; multiregional input–output table; global value chains
    JEL: D24 D57 F15 O14
    Date: 2022–02–17

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