nep-geo New Economics Papers
on Economic Geography
Issue of 2022‒08‒29
six papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Flow of Ideas: Economic Societies and the Rise of Useful Knowledge By Francesco Cinnirella; Erik Hornung; Julius Koschnick
  2. A Long-run Transition of Japan's Inter-regional Value Chains By OKUBO Toshihiro; SASAHARA Akira
  3. Spatial Econometrics for Misaligned Data By Guillaume Allaire Pouliot
  4. Expecting Floods: Firm Entry, Employment, and Aggregate Implications By Ruixue Jia; Xiao Ma; Victoria Wenxin Xie
  5. Spatial equity and high speed trains: the example of France By Dominique Bouf; Christian Desmaris
  6. The regional green potential of the European innovation system By SBARDELLA Angelica; BARBIERI Nicolò; CONSOLI Davide; NAPOLITANO Lorenzo; PERRUCHAS François; PUGLIESE Emanuele

  1. By: Francesco Cinnirella; Erik Hornung; Julius Koschnick
    Abstract: Economic societies emerged during the late eighteenth-century. We argue that these institutions reduced the costs of accessing useful knowledge by adopting, producing, and diffusing new ideas. Combining location information for the universe of 3,300 members across active economic societies in Germany with those of patent holders and World’s Fair exhibitors, we show that regions with more members were more innovative in the late nineteenth-century. This long-lasting effect of societies arguably arose through agglomeration economies and localized knowledge spillovers. To support this claim, we provide evidence suggesting an immediate increase in manufacturing, an earlier establishment of vocational schools, and a higher density of highly skilled mechanical workers by mid-nineteenth century in regions with more members. We also show that regions with members from the same society had higher similarity in patenting, suggesting that social networks facilitated spatial knowledge diffusion and, to some extent, shaped the geography of innovation.
    Keywords: economic societies, useful knowledge, knowledge diffusion, innovation, social networks
    JEL: N33 O33 O31 O43
    Date: 2022
  2. By: OKUBO Toshihiro; SASAHARA Akira
    Abstract: This paper examines the evolution of Japan’s inter-regional value chains using input-output tables from 1960 to 2005. We measure the degree of inter-regional production linkages based on various statistics including (1) the outsourcing index, (2) upstreamness, (3) downstreamness, and (4) empirical comparative advantages. The results show that, in most sectors, the expansion of inter-regional value chains slowed down after the 1990s, when imports from overseas started to increase rapidly. We also find that the value chains in the transport equipment sector have expanded exceptionally. This sectoral heterogeneity is confirmed by all the measures used in this study.
    Date: 2022–07
  3. By: Guillaume Allaire Pouliot
    Abstract: We produce methodology for regression analysis when the geographic locations of the independent and dependent variables do not coincide, in which case we speak of misaligned data. We develop and investigate two complementary methods for regression analysis with misaligned data that circumvent the need to estimate or specify the covariance of the regression errors. We carry out a detailed reanalysis of Maccini and Yang (2009) and find economically significant quantitative differences but sustain most qualitative conclusions.
    Date: 2022–07
  4. By: Ruixue Jia; Xiao Ma; Victoria Wenxin Xie
    Abstract: Flood events and flood risk have been increasing in the past few decades and have important consequences for the economy. Using county-level and ZIP-code-level data from the United States during 1998–2018, we document that (1) increased flood risk has a large negative impact on firm entry, employment, and output in the long run; and (2) flood events reduce output in the short run while their impact on firm entry and employment is limited. Motivated by these findings, we construct a spatial equilibrium model to characterize how flood risk shapes firms’ location choices and workers’ employment, which we use to estimate the aggregate impact of increased flood risk on the economy. We find that flood risk reduced U.S. aggregate output by 0.52% in 2018, 80% of which stemmed from expectation effects and 20% from direct damages. We also apply our model to study the distributional consequences and forecast the impact of future changes in flood risk. Our results highlight the importance of considering the adjustment of firms and workers in response to risk in evaluating the consequences of natural disasters.
    JEL: F64 Q54 Q56 R11 R13
    Date: 2022–07
  5. By: Dominique Bouf (LET - Laboratoire d'économie des transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Christian Desmaris (LET - Laboratoire d'économie des transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique, IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon)
    Abstract: This paper is aiming at qualifying the high speed trains in operation in France, with regards to spatial equity. To that end we begin by examining some of the various concepts enclosed in this polysemic word. Increased accessibility was one objective of the development of high speed rail. Thus we estimate a simple model to measure the possible effect of high speed rail on French regions. We did find a positive effect on GDP per capita and demographic growth. In a sense this is because they are growth-promoting that High speed lines are unfair. Beyond that, the pricing system set up by the train operator is based on yield management and intermodal competition. This results in a peculiar and singularly unfair pricing structure.
    Keywords: spatial equity,high speed trains,high speed rail,pricing system,French regions,France
    Date: 2020–07–20
  6. By: SBARDELLA Angelica; BARBIERI Nicolò; CONSOLI Davide; NAPOLITANO Lorenzo (European Commission - JRC); PERRUCHAS François; PUGLIESE Emanuele (European Commission - JRC)
    Abstract: The brief provides an overview of green technological development across European regions employing the Economic Fitness Complexity approach to establish a green technology space. The study explores the associations between comparative advantage in specific technological domains and a region’s capacity to develop green technologies, i.e. its Green Fitness. Furthermore, it addresses the interaction between the green and non-green knowledge bases, with a particular focus on whether regional know-how in the non-green technological realm can be exploited in the green domain and vice versa. To this aim, a metric of regional Green Potential is proposed. The analysis suggests that regions specialised in green domains, irrespective of their complexity, have a higher propensity to develop technologies connected with green technologies. Green technologies are linked mostly to technologies related to the production or transformation of materials; with engines and pumps; and with construction methods. The regions with the highest Green Potential are not necessarily those with the highest Green Fitness. The results suggest that there is a potential for green and non-green technological advances to generate positive spillovers in terms of capabilities to produce innovations across the spectrum of technological complexity.
    Keywords: Green Deal, Economic Complexity, Green Capabilities, Regional Green Potential
    Date: 2022–05

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