nep-geo New Economics Papers
on Economic Geography
Issue of 2023‒03‒13
three papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. NiReMS: A Regional Model at Household Level Combining Spatial Econometrics with Dynamic Microsimulation By Arnab Bhattacharjee; Adrian Pabst; Tibor Szendrei; Geoffrey J. D. Hewings
  2. Local conditions for the decentralization of energy systems By Arvanitopoulos, Theodoros; Wilson, Charlie; Ferrini, Silvia
  3. A Pure Theory of Population Distribution When Preferences Are Ordinal By Stark, Holger; Kosiorowski, Grzegorz

  1. By: Arnab Bhattacharjee; Adrian Pabst; Tibor Szendrei; Geoffrey J. D. Hewings
    Abstract: The heterogeneous spatial and individual impacts of the Great Recession, Brexit and Covid-19 have generated an important challenge for macroeconomic and regional/spatial modellers to consider greater integration of their approaches. Focusing on agent heterogeneity at the NUTS-1 level, we propose NiReMS – a synthesis of dynamic microsimulation with a spatial regional macroeconometric model. The model gives regional macro projections while allowing for household level inference. To showcase the model, we explore the impact of terminating enhanced Universal Credit (UC) early and show that it led to more households consuming less. Importantly, the proposed framework shows that the impact is not equal across the regions of the UK: low asset households in the North East, Wales, and Northern Ireland were hit particularly hard.
    Keywords: Microsimulation, Heterogenous Agents, Universal Credit, Spatial econometrics, Structural macroeconomic models
    JEL: D15 D31 D6 E65
    Date: 2023–02
  2. By: Arvanitopoulos, Theodoros; Wilson, Charlie; Ferrini, Silvia
    Abstract: Local energy systems (LES) are designed to decarbonize, balance, and coordinate supply, storage and demand resources. Which local conditions enable LES to flourish? Using a unique dataset of 146 LES projects in the UK from 2010 to 2020, we apply econometric methods to identify energy, institutional and socio-economic conditions significantly associated with LES, but not other local energy forms. We show distributed power generation, low-carbon infrastructure firm activity, local government strategy and active energy efficiency markets are enablers of LES involving multiple actors, sectors and skill sets. These conditions describe a clear policy agenda for stimulating and supporting emerging local energy markets.
    Keywords: decarbonization; decentralization; digital skills; landscape transition; local energy systems; spatial econometric modelling; EP/S031863/1; EP/S031898/ 1; 101003083
    JEL: C10 O33 Q40 R11
    Date: 2022–11–14
  3. By: Stark, Holger; Kosiorowski, Grzegorz (Cracow University of Economics)
    Abstract: We model an environment in which individuals prefer to be in a space in which their rank is higher, be it a social space, a geographical space, a work environment, or any other comparison sphere which we refer to in this paper, and without loss of generality, as a region. When the individuals can choose between more than two regions, we inquire: (i) whether a steady-state distribution of the population is reached; (ii) how long it will take to reach a steady state; and (iii) if a steady state obtains, whether at the steady state social welfare is maximized. Despite the fact that when there are three or more regions the mobility paths are more intricate than when there are only two regions, we prove that a steady-state distribution of the population across the regions is reached; we identify the upper bound of the number of time periods that it will take to reach the steady-state distribution; and we show that the steady-state distribution maximizes social welfare. This last result is surprising: even though the individuals act of their own accord, they achieve the socially preferred outcome.
    Keywords: inter-space mobility, three or more spaces, ordinal preferences, distaste for low rank, steady-state population distribution, social welfare
    JEL: C61 C62 D50 D60 D62 I31 R13 R23 Z13
    Date: 2023–02

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