nep-geo New Economics Papers
on Economic Geography
Issue of 2024‒03‒11
three papers chosen by
Andreas Koch, Institut für Angewandte Wirtschaftsforschung

  1. Quantitative evaluation of benefits of place-based policies for retail agglomeration By Aizawa, Hiroki; Kono, Tatsuhito
  2. Rules of attraction: Networks of innovation policy makers in the EU By Laatsit, Mart; Boschma, Ron
  3. The Rise and Fall of Cities under Declining Population and Diminishing Distance Frictions: The case of Japan By MORI Tomoya; MURAKAMI Daisuke

  1. By: Aizawa, Hiroki; Kono, Tatsuhito
    Abstract: Local governments have recently adopted place-based policies in order to revitalize decayed shopping areas in downtown areas. Developing a multipurpose shopping model, we quantitatively evaluate the welfare impacts of place-based policies for downtown retail agglomeration. In the model, retail stores are under monopolistic competition, and households are free to choose where to reside. Results show that, whether or not place-based policies are efficient depends on the recipients of government subsidies, even if the policies promote retail agglomeration in downtown areas. We show that the total benefits of location subsidies to households and location subsidies to stores are 566 and −342 million JPY per year, respectively.
    Keywords: Agglomeration; Monopolistic competition; Multipurpose shopping; Place-based policy.
    JEL: L1 R3 R48
    Date: 2024–02–09
  2. By: Laatsit, Mart (CIRCLE, Lund University); Boschma, Ron (Utrecht University)
    Abstract: Policy networks are an important source of information for policy making. Yet, we have only a limited understanding of how policy networks are structured among innovation policy makers and which factors shape their structure. This paper studies how proximities can explain what drives the connections in policy networks. More specifically, we look at innovation policy networks between EU member states. We use social network analysis based on our own data to map the networks of the 28 EU innovation policy directors, consisting of 756 potential connections, and study the proximities shaping these networks. Geographical and cultural proximity turn out to be strong predictors for symmetric and asymmetric ties, but we do not find a relationship between policy proximity (in terms of similarities in business environment regulations and innovation policy) and policy network formation between countries.
    Keywords: Innovation policy; policy networks; proximities; policy proximity; social network analysis
    JEL: O33 O38
    Date: 2024–02–14
  3. By: MORI Tomoya; MURAKAMI Daisuke
    Abstract: Many countries are expected to face rapidly declining and aging populations. Meanwhile, urbanization continues worldwide, preserving the power law for city size distribution at the country level. We have developed a spatial statistical model based on the theory of economic agglomeration to predict the future geographic distribution of the population at the 1 km grid level. The model considers growth factors for cities and grids, while maintaining the power law for city size distribution at the country level. Japan is an ideal case study of a shrinking economy. It highlights the challenges that the rest of Asia and the world are likely to face. Cities in aging regions will decline more rapidly, shifting the center of gravity of the country's population distribution. Smaller cities are more vulnerable to population decline, but with declining transportation and communication costs, even large cities are not immune to elimination. The future urban economy will revolve around fewer and more distant larger cities.
    Date: 2024–02

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