nep-geo New Economics Papers
on Economic Geography
Issue of 2022‒11‒21
nine papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Local Labor Market Impacts of Advanced Manufacturing Technologies: Evidence from European Nuts-3 Regions. By Orsatti, Gianluca; Quatraro, Francesco
  2. Taxation with a Grain of Salt: The Long-Term Effect of Fiscal Policy on Local Development By Tommaso Giommoni; Gabriel Loumeau
  3. Measuring Quarterly Economic Growth from Outer Space By Beyer, Robert; Yao, Jiaxiong; Hu, Yingyao
  4. Second-Hand Gentrification: Theory and Evidence from High-Speed Rail Extensions By Gabriel Loumeau; Antonio Russo
  5. Fiscal Policy, public investment, and structural change:A P-SVAR analysis on Italian regions By Francesco Zezza; Dario Guarascio
  6. In Search of Better Opportunities : Sorting and Agglomeration Effects among Young College Graduates in Colombia By Bacolod,Marigee; De la Roca,Jorge; Ferreyra,Maria Marta
  7. Regional Resilience through the Lenses of the Capability Approach. By Migheli, Matteo; D’ambrosio, Anna
  8. The Anatomy of Intergenerational Income Mobility in France and its Spatial Variations By Gustave Kenedi; Louis Sirugue
  9. Perú 1990-2020: Heterogeneidad estructural y regímenes económicos regionales. ¿Persiste la desconexión entre la economía, la demografía y la geografía? By Félix Jimenez; Marco Arroyo

  1. By: Orsatti, Gianluca; Quatraro, Francesco (University of Turin)
    Abstract: Based on the established literature about substitution and compensation effects, this paper provides one of the first analyses of the relationship between digital technologies and employment at the regional level in Europe. We posit that idiosyncratic factors of local labor markets are likely to generate place- specific responses to the introduction of new technologies. Spatial spillovers are also likely to emerge. The geographical level of analysis is therefore the most appropriate. Our analysis confirms that there is a significant relationship between the local specialization in advanced manufacturing technologies and employment. Mainly driven by automation-related technologies, we indeed estimate negative effects of advanced manufacturing technologies on local employment creation. Conversely, digital technologies play a positive role in enhancing local labor productivity. Finally, technological performances of neighbour regions play a significant role in shaping local labor productivity, while not significantly affecting local employment creation.
    Date: 2020–11
  2. By: Tommaso Giommoni; Gabriel Loumeau
    Abstract: This paper studies the long-term effect of taxation on economic geography and development. We rely on a unique natural experiment in place during France’s ancien régime: the salt tax. Introduced in the late 13th century and abrogated by the French Revolution in 1789, the salt tax was not uniformly levied across the French kingdom as its rate varied discontinuously in space. Using a series of rich and original historical data at regular time intervals and very fine spatial resolution since the fifteen century, we estimate a Spatial RDD model. We find that these exogenous tax rate differentials have had large effects on economic geography and development. These effects are, then, confirmed in a DiD analysis, that studies a very large time span (1400-1900 using regular intervals of 25 years) and documents the absence of pre-trends. Most of the effects can still be observed today in population density, firm density, and local average income.
    Keywords: taxation, long-term, economic georgraphy, development, spatial discontinuity, salt tax
    JEL: H20 N33 O23 J61
    Date: 2022
  3. By: Beyer, Robert; Yao, Jiaxiong; Hu, Yingyao
    JEL: C10 E01 R12
    Date: 2022
  4. By: Gabriel Loumeau; Antonio Russo
    Abstract: This paper investigates whether and how gentrification spreads along intercity transport connections. We consider a model with heterogeneous individuals populating a primary and a secondary city, with commuting within and between cities. By reducing the cost of intercity commuting, the HSR connection induces migration by skilled individuals towards the secondary city. Therefore, house prices rise in the secondary city, and unskilled individuals are pushed to its periphery. We call this effect second-hand gentrification. We confirm these predictions using the 2017 expansion of the French HSR network from Paris to Bordeaux and Rennes. We find that the HSR connection made skilled Parisians more likely to move to Bordeaux and Rennes, that these individuals locate over-proportionally in central locations of such cities, and that housing prices there consequently increased by €400 per m2 (i.e., 7%). Remarkably, we also find a negative effect on prices in Paris.
    Keywords: gentrification, high speed rail, housing market, Intercity travel
    JEL: R23 R11 R41
    Date: 2022
  5. By: Francesco Zezza; Dario Guarascio
    Abstract: This work analyses the regional impact of public investments focusing on three domains that are key for the Italian National Recovery and Resilience Plan (NRRP): green, digital and education/knowledge. Relying on a unique database ('Conti Pubblici Territoriali'), we perform a P-SVAR model showing that fiscal policy shocks have positive and long-lasting effects on GDP and private investments. A relevant heterogeneity is detected, though. In particular, shocks to digital spending only timidly crowd-in private investment while a stronger effect is found concerning the green sector. Second, public investments have a significant impact on regions' ‘structural upgrading’, i.e., export competitiveness and share of high-tech manufacturing. Third, confirming previous findings, shocks to public spending are found to have larger effects in centre-north regions, in terms of both GDP and private investments. Nevertheless, public spending turns out to have a stronger structural effect in the south than in the centre-north, highlighting the relevant role that the NRRP may play in reducing the Italian north-south divide
    Keywords: Fiscal multipliers; Panel SVAR; Italian regions; North-South divide
    JEL: C33 E62 H70 R58
    Date: 2022–09
  6. By: Bacolod,Marigee; De la Roca,Jorge; Ferreyra,Maria Marta
    Abstract: This paper studies the dynamic sorting of workers prior to labor market entry that leads to skill differences across cities of different sizes, as well as its consequences on the estimation of agglomeration effects. Using rich administrative data for young, college-educated workers in Colombia, the paper shows that the most talented and best trained sort to big cities primarily because they attend college there and remain for work. The availability of colleges in an individual's high school city, parental resources, and high school city size are the most important determinants of the decision to move for college. The relatively less able remain in medium and small cities or move there for work after attending college in big cities. Pre-labor market sorting thus concentrates population and skill in big cities. As a result of this sorting, agglomeration effects are stronger for college than work city size, even after controlling for mediating factors such as individual ability or college selectivity.
    Keywords: Educational Sciences,Rural Labor Markets,Tertiary Education,Labor Markets
    Date: 2020–10–08
  7. By: Migheli, Matteo; D’ambrosio, Anna (University of Turin)
    Abstract: Regional resilience has been widely studied in economics and economic geography. The extant literature proposes different measures and definitions, without achieving a unitary view of the concept. In this paper, an interpretation of regional resilience thorough Sen’s capability approach is proposed. In particular, resilience emerges as a collective capability, and “being resilient” as a collective functioning. Individual characteristics of the agents operating in a region and the interaction between them lead to this interpretation. The definitions and measures adopted by the extant literature appear to be parts of a whole, which is difficult to capture in a single analysis.
    Date: 2022–09
  8. By: Gustave Kenedi (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Louis Sirugue (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: We provide new estimates of intergenerational income mobility in France for children born in the 1970s using rich administrative data. Since parents' incomes are not observed, we employ a two-sample two-stage least squares estimation procedure. At the national level, every measure of intergenerational income persistence (intergenerational elasticities, rank-rank correlations, and transition matrices) suggests that France is characterized by relatively strong persistence relative to other developed countries. Children born to parents in the bottom 20% of their income distribution have a 10.1% probability of reaching the top 20% as adults. This probability is of 39.1% for children born to parents in the top 20%. At the local level, we find substantial spatial variations in intergenerational mobility. It is higher in the West of France and particularly low in the North and in the South. We uncover significant relationships between absolute upward mobility and characteristics of the environment an individual grew up in, such as the unemployment rate, population density, and income inequality.
    Keywords: Intergenerational mobility,Measurement,Spatial variations,France
    Date: 2021–11
  9. By: Félix Jimenez (Pontificia Universidad Católica del Perú.); Marco Arroyo (Pontificia Universidad Católica del Perú.)
    Abstract: En este trabajo se analiza si en el periodo 1990-2020 —que incluye quince años de alto crecimiento económico impulsado por la inversión extranjera en la minería—, se registró un proceso de convergencia del producto per cápita de las veinticuatro regiones del país. En otras palabras, se busca responder si en un contexto caracterizado por la concentración espacial de la producción y de liderazgo en el crecimiento económico de la producción minera, se acentuaron o se atenuaron las disparidades existentes entre las regiones del país; si crecieron más rápido las regiones pobres que las regiones ricas; o, si hay clubes o regímenes económicos que convergen a su propio estado estacionario, confirmando así la fragmentación del país. El análisis se realiza utilizando, en primer lugar, la técnica de análisis exploratorio de datos espaciales (ESDA, por sus siglas en inglés), para identificar tanto a la dependencia como a la heterogeneidad espacial en los productos per cápita de las regiones del país; y, en segundo lugar, la técnica de datos de panel y el spatial switching regression approach, a las que se les introduce la interacción espacial tomando en cuenta algunas características propias de las regiones. JEL Classification-JE: C23. O18 · O47 · O54. R11 · R12. R58
    Keywords: convergencia, dependencia espacial, modelos espaciales de datos de panel, concentración económica, heterogeneidad espacial, regímenes económicos
    Date: 2022

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