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on Economic Geography |
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Issue of 2024–12–16
seven papers chosen by Andreas Koch, Institut für Angewandte Wirtschaftsforschung |
| By: | Stephen J. Redding |
| Abstract: | This paper reviews recent quantitative urban models. These models are sufficiently rich to capture observed features of the data, such as many asymmetric locations and a rich geography of the transport network. Yet these models remain sufficiently tractable as to permit an analytical characterization of their theoretical properties. With only a small number of structural parameters (elasticities) to be estimated, they lend themselves to transparent identification. As they rationalize the observed spatial distribution of economic activity within cities, they can be used to undertake counterfactuals for the impact of empirically-realistic public-policy interventions on this observed distribution. Empirical applications include estimating the strength of agglomeration economies and evaluating the impact of transport infrastructure improvements (e.g., railroads, roads, Rapid Bus Transit Systems), zoning and land use regulations, place-based policies, and new technologies such as remote working. |
| Keywords: | cities, commuting, transportation, urban economics |
| Date: | 2024–11–13 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2053 |
| By: | Korneliusz Pylak; Jason Deegan; Tom Broekel; ; |
| Abstract: | This paper explores the phenomenon of mimicry in the selection of economic domains for Smart Specialisation Strategies (S3) and discusses the regional policy implications of strategic mimicry. By analysing S3 documents from European regions, we identify and distinguish between two general types of mimicry: ‘Follow the Peers’ and ‘Follow the Role Models, ’ against the more desirable ‘Follow the Indicators’ priority selection strategy. Our findings reveal that although regions rely on their strengths by following the crucial indicators, thus exhibiting non-mimetic behaviour, there is a stronger tendency for regions to mimic popular domain portfolios, particularly those chosen by neighbouring regions and national strategies. Understanding these patterns in the selection of priority domains helps decision-makers balance mimicry and diversification, promoting specialization, new economic activities, and regional uniqueness. |
| Keywords: | smart specialisation, regional strategy, regional policy, innovation policy, mimicry |
| JEL: | O25 O38 R11 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2439 |
| By: | Erika Christie Berle; ; ; ; |
| Abstract: | The successful transition toward renewable energies requires public support in areas where their expansion may cause adverse effects. In this context, narratives are crucial as they shape people’s perceptions. This article examines the relationship between onshore wind power and related narratives in regions across Germany. We run a series of spatial regression models on regional newspaper data, and our findings suggest that wind-related topics are more prominent and more neutrally (less angrily) framed in regions with more wind turbines. Public attitudes supporting wind energy expansion correlate with the prominence of related topics in regions’ narrative landscapes. In contrast, support for anti-wind protests does not seem to correlate with the prominence of wind-energy-related topics in regions with higher wind turbine densities. |
| Keywords: | narrative landscapes, wind turbines, regional analysis, regional news, narratives, Germany |
| JEL: | R10 R12 R52 Q28 Q48 Q50 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2438 |
| By: | Velthuis, Sanne; Le Petit-Guerin, Mehdi; Royer, Jeroen; Leibert, Tim; Cauchi-Duval, Nicolas; Franklin, Rachel S. (Newcastle University); MacKinnon, Danny |
| Abstract: | Over the past ten years or so, concern has mounted about places in the Global North that have been ‘left behind’ by the growth and prosperity experienced in superstar cities and other wealthy regions. This briefing paper summarises the findings from the one of the strands of the ‘Beyond Left Behind Places’ project, which involved quantitative analysis of residential migration patterns in economically ‘left behind’ regions in the UK, France, and Germany during the immediate pre-COVID period. In addition, we conducted qualitative research with residents of economically ‘left behind’ regions in the three countries to get their perceptions. We use national administrative and census data for the three countries to examine whether economically lagging regions tend to lose or gain population through migration, and what age groups are moving in or out. Economic theories often assume that individuals migrate from economically lagging regions to areas offering better economic conditions. But actually, economically lagging regions in the UK, France and Germany generally tend to experience net population inflows. In other words, more people are moving to these regions than are moving out. In fact, when it comes to internal migration (i.e. people moving within the same country), these lagging regions tend to attract more new residents, on average, than more economically successful regions do. |
| Date: | 2024–11–11 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:t4vbd |
| By: | Francois de Soyres; Simon Fuchs; Illenin O. Kondo; Helene Maghin |
| Abstract: | We show how local worker flow adjustment margins yield a theory-consistent sufficient statistic approximating the welfare effects of local shocks. Furthermore, we isolate a city’s insurance value as this approximation’s second-order term. Leveraging rich labor flows data across occupations, industries, and cities in France, we estimate spatial and non-spatial flows responses to local labor demand shocks. Less economically diverse French cities experience deeper contractions in gross outflows following negative shocks. In contrast, more economic concentration begets a modestly larger increase in gross worker flows following positive shocks. Altogether, we uncover a sizable welfare insurance gains from local economic diversity. |
| Keywords: | Sufficient statistics; Welfare; Concentration; Economic diversity; Labor flows |
| JEL: | J61 J62 J21 |
| Date: | 2024–11–22 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedmoi:99165 |
| By: | Jaramillo Lizana, Jet Li Jorkaef |
| Abstract: | Regional inequality in Peru represents one of the most significant challenges to achieving sustainable economic growth and social cohesion. This paper explores the historical, economic, social, and institutional causes of regional disparities, examining how geography and resource distribution have led to uneven development across the country. Drawing on the historical legacy of colonialism, the analysis reveals how extractive economic models and centralized governance have perpetuated inequality, disproportionately affecting rural and indigenous regions such as the Andean highlands and the Amazon basin. The study assesses the economic effects of regional inequality, including its impact on national growth, labor market inefficiencies, and vulnerability to external shocks. Social effects are examined in terms of reduced social cohesion, internal migration, and increased social conflicts, particularly in areas rich in natural resources. The paper also evaluates the implications for human development, focusing on gaps in education, healthcare, and quality of life that perpetuate cycles of poverty and limit opportunities for upward mobility. To address these disparities, the paper proposes several strategies aimed at promoting inclusive development. These include investment in sustainable infrastructure to improve connectivity and access to resources, economic diversification to reduce dependence on volatile extractive sectors, strengthening of education and healthcare services to bridge social gaps, and enhancing regional governance to optimize decentralization and resource management. The paper concludes by emphasizing the importance of reducing regional inequality for the sustainable development of Peru. It argues that equitable development is essential for fostering national unity, economic resilience, and social well-being. Future research directions are also identified, including the impact of climate change on regional inequality, the role of digital technology in bridging gaps, and the potential for community-based approaches to resource management. By understanding and addressing the root causes of inequality, Peru can lay the foundation for a more inclusive and prosperous future for all its citizens. |
| Date: | 2024–11–13 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:j2mns |
| By: | Richard Frensch (OS Regensburg, University of Regens-burg, ZU Friedrichshafen); Michael Rindler (ZU Friedrichshafen, ifo Institute München) |
| Abstract: | We present a novel two-stage gravity specification with period-varying bilateral trade cost terms. We test our specification to confirm the benchmark result on declining international distance elasticities over time, using two new data sets. Analyzing period-varying bilateral trade cost derived from our specification offers additional insights: first, globalization has erased more than a third of the effect of distance on trade cost, mostly until the mid-nineties. Second, identifying period-varying bilateral trade cost separately for domestic vs. international trade offers a natural illustration to globalization – international trade cost are less persistent than domestic trade cost. Finally, reflecting the importance of general equilibrium adjustment, total bilateral trade cost – relating partial bilateral trade cost to multilateral resistances – are more appropriate to reflect globalization than partial bilateral trade cost. |
| Keywords: | Gravity, geography, panel models |
| JEL: | C23 F15 F40 O18 |
| Date: | 2023–06 |
| URL: | https://d.repec.org/n?u=RePEc:ost:wpaper:399 |