nep-geo New Economics Papers
on Economic Geography
Issue of 2024‒05‒20
four papers chosen by
Andreas Koch, Institut für Angewandte Wirtschaftsforschung

  1. How regions diversify into new jobs: From related industries or related occupations? By Jason Deegan; Tom Broekel; Silje Haus-Reve; Rune Dahl Fitjar
  2. The importance of science for the development of new PV technologies in European regions By Maria Tsouri; Ron Boschma; ;
  3. The economic dynamics of city structure: Evidence from Hiroshima's recovery By Kohei Takeda; Atsushi Yamagishi
  4. Consumption Zones By Andrea Batch; Benjamin R. Bridgman; Abe C. Dunn; Mahsa Gholizadeh

  1. By: Jason Deegan; Tom Broekel; Silje Haus-Reve; Rune Dahl Fitjar
    Abstract: This paper adds a multidimensional perspective to the study of related diversification. We examine how regions diversify into new jobs – defined as unique industry-occupation combinations – asking whether they do so from related industries or related occupations. We use linked employer-employee data for all labour market regions in Norway, covering the time period 2009 –2014. Diversification into new jobs is more likely in the presence of related occupations and industries in a region. Furthermore, occupational and industrial relatedness have complementary effects on diversification. Occupational relatedness and its interaction with industrial relatedness are particularly important for diversification into more complex activities.
    Keywords: Regional capabilities, jobs, occupations, relatedness, diversification
    JEL: O18 R11 J62 R12
    Date: 2024–04
  2. By: Maria Tsouri; Ron Boschma; ;
    Abstract: Studies show that local capabilities contribute to the green transition, yet little attention has been devoted to the role of scientific capabilities. The paper assesses the importance of local scientific capabilities and the inflow of scientific knowledge from elsewhere for the ability of regions in Europe to diversify into photovoltaic (PV) segments during the period 1998 to 2015, employing a combined dataset on patents and scientific publications. We find that local scientific capabilities matter, but not so much the inflow of relevant scientific knowledge from other regions, as proxied by scientific citations of patents in PV segments. Regions are also likely to diversify into a PV segment when they have technological capabilities related to other PV segments. Finally, we found that European regions are less likely to lose an existing PV segment specialization when they have intra-regional and extra-regional scientific capabilities in this PV segment.
    Keywords: relatedness, photovoltaic technologies, green diversification, regional diversification, scientific capabilities, related scientific capabilities, inter-regional linkages, Europe
    JEL: O25 O38 R11
    Date: 2024–04
  3. By: Kohei Takeda; Atsushi Yamagishi
    Abstract: We provide new theory and evidence on the resilience of internal city structure after a large shock, analyzing the atomic bombing of Hiroshima. Exploiting newly digitized data, we document that the city structure recovered within five years after the bombing. Our new dynamic quantitative model of internal city structure incorporates commuting, forward-looking location choices, migration frictions, agglomeration forces, and heterogeneous location fundamentals. Strong agglomeration forces in our estimated model explain Hiroshima's recovery, and we find an alternative equilibrium where the city center did not recover. These results highlight the role of agglomeration forces, multiple equilibria, and expectations in urban dynamics.
    Keywords: agglomeration, history, expectations, atomic bombing, spatial dynamics
    Date: 2024–04–12
  4. By: Andrea Batch; Benjamin R. Bridgman; Abe C. Dunn; Mahsa Gholizadeh (Bureau of Economic Analysis)
    Abstract: Local area data are important to many economic questions, but most local area data are reported using political units, such as counties, which often do not match economic units, such as product markets. Commuting zones (CZs) group counties into local labor markets. However, CZs are not the most appropriate grouping for other economic activities. We introduce consumption zones (ConZs), groupings of counties appropriate for the analysis of household consumption. We apply the CZ methodology to payment card data, which report spending flows across U.S. counties for 15 retail and service industries. We find that different industries have different market sizes. Grocery stores have more than five times the number of ConZs as live entertainment. Industries with more frequent purchases are more local than those with infrequent purchases. We apply ConZs to measuring industry concentration. ConZs give lower concentration levels than counties, with the largest gap for infrequent purchase industries. The difference is economically important. Some industries are below the antitrust enforcement thresholds with ConZs but above them for counties. We further demonstrate the importance of ConZs by analyzing the proposed merger of Albertsons and Kroger.
    JEL: R12
    Date: 2023–05

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