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on Economic Geography |
|
Issue of 2025–07–21
seven papers chosen by Andreas Koch, Institut für Angewandte Wirtschaftsforschung |
| By: | Tom Broekel |
| Abstract: | Timely and spatially detailed indicators of regional economic activity are limited. This paper introduces the Regional Economic News Sentiments (REGENS) index, a high-frequency measure based on geocoded news headlines from 300+ German-language outlets since 2019. REGENS captures local economic sentiment, aligns with national indicators, and significantly leads regional unemployment by up to four months. While its link to GDP growth is weaker, it consistently reflects regional economic patterns. The study highlights how media signals contribute to understanding economic development and illustrates the potential of text-based indicators to sharpen the spatial and temporal resolution of regional monitoring. |
| Keywords: | news, media, sentiments, regions, regional development |
| JEL: | R11 C55 O33 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2519 |
| By: | Raoul van Maarseveen (University of Cologne) |
| Abstract: | Place shapes the educational attainment of children, yet the underlying reasons remain poorly understood. In this paper, I investigate the role of spatial differences in educational signals received by students. Using Dutch administrative data combined with high-stakes national exam scores, I show that students receive less ambitious track recommendations in rural areas conditional on ability. The spatial difference is comparable to the impact of having a university-educated parent and explains around half of the spatial difference in academic track enrollment. Key mechanisms are spillovers from high SES peers and stronger beliefs in the importance of education among urban teachers. |
| Keywords: | Spatial Inequality, Educational attainment, Teacher Bias, Human Capital |
| JEL: | I24 O18 R11 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:ajk:ajkdps:366 |
| By: | Souhaila Hachmi (MADEO Laboratory - Higher School of Technology-Oujda, Mohammed I University); Hajar El Makhad (MADEO Laboratory - Higher School of Technology-Oujda, Mohammed I University); Rahhal Lahrach (MADEO Laboratory - Higher School of Technology-Oujda, Mohammed I University); Nadia Tamouh (MADEO Laboratory - Higher School of Technology-Oujda, Mohammed I University) |
| Abstract: | In conclusion, we add that a better performance of the regions needs to reduce disparities, especially those of an economic, social and educational nature, a reduction in the effects of disparities requires, among other things, the promotion of public policies and public actions that arise from the regions in the context of a participatory approach that includes all stakeholders (institutions, local authorities, researchers, experts, etc.), local authorities, researchers, experts, etc.) and bearing in mind the specific characteristics and challenges of these regions, rather than adopting policies that are ready to be adopted and applied to all the regions and that are far from taking into account the realities and challenges of each of them. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05078268 |
| By: | Tricarico, Luca; Hausemer, Pierre; Gorman, Nessa; Squillante, Francesca |
| Abstract: | This paper explores the concept of the Proximity Economy, a human-centered model focused on short value chains and social interactions within local contexts, as a strategic response to global challenges like climate change, supply chain disruptions, and the twin green and digital transitions. Amid ongoing crises, e.g., pandemic, economic, geopolitical, and environmental, reconceptualizing economic development paradigms is crucial for fostering resilient and sustainable solutions. The Proximity Economy integrates local production, distribution, and consumption, supporting sustainable innovation and the competitiveness of local enterprises. It aligns with the European Union’s industrial strategy and Sustainable Development Goals, such as climate action (SDG 13) and reducing inequalities (SDG 10). This paper reviews the socio-economic impacts of the Proximity Economy, considering its connections with the circular and social economies, and identifies relevant policies for its promotion at the European, national, and local levels. Through sectoral analysis and examples, the paper provides a framework for evaluating the economic, environmental, and social outcomes of this model, offering recommendations for its future development and implementation. |
| Keywords: | proximity; regional development; resilience; social innovation; sustainability; cohesion policy |
| JEL: | N0 |
| Date: | 2025–07–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128633 |
| By: | S. Shuyang You; L. Wang (Audencia Business School); K. Zheng Zhou; L. Liangding Jia |
| Abstract: | While geography-related factors are critical to determining the functioning of networks, prior studies have overlooked how they may shape the impact of structural holes on firm innovation. Building on structural hole theory and the industrial cluster literature, we propose that structural holes negatively influence firm innovation in industrial clusters. Such negative impact can be attributed to broker firms' social and political embeddedness in these clusters, and is thus moderated by social factors (i.e., local information density and intra-cluster partner ratio) and political factors (i.e., local government coordination and political connection importance). Our predictions receive support from a matched sample of on-site survey and secondary data from 221 firms in industrial clusters in China. This study contributes to structural hole theory by incorporating geographic factors and offers important implications for policymakers aiming to promote firm innovation. |
| Keywords: | Structural holes, Innovation, Industrial clusters, Social embeddedness, Political embeddedness |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05133753 |
| By: | Ezra Oberfield; Esteban Rossi-Hansberg; Nicholas Trachter; Derek Wenning |
| Abstract: | We study the spatial expansion of banks in response to the banking deregulation of the 1980s and 90s in order to develop a spatial theory of banking. During this period, large banks expanded rapidly, mostly by adding new branches in new locations, while many small banks exited. We document that large banks sorted into the densest markets, but that sorting weakened over time as large banks expanded to more marginal markets in search of locations with a relative abundance of retail deposits. This allowed large banks to reduce their dependence on expensive wholesale funding and grow further. To rationalize these patterns, we propose a theory of multi-branch banks that sort into heterogeneous locations. Our theory yields two forms of sorting. First, span-of-control sorting incentivizes top firms to select the largest markets and smaller banks the more marginal ones. Second, mismatch sorting incentivizes banks to locate in more marginal locations, where deposits are abundant relative to loan demand, to better align their deposits and loans and minimize wholesale funding. Together, these two forms of sorting account well for the sorting patterns we document in the data. |
| Keywords: | multi-establishment firms; Spatial Sorting; branches; firm location; Span-of-control model |
| JEL: | G21 R32 L22 L23 |
| Date: | 2025–06–09 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedrwp:101147 |
| By: | Leah Brooks; Andrea DeLisa; Rachel Meltzer; Erica Moszkowski |
| Abstract: | To the extent possible, we add latitude and longitude geocodes to all establishments in the Longitudinal Business Database, 1982 to 2021. Years 2007 and onward are already geocoded by Census employees, and our methods made modest improvements for these observations. For years 1982 to 2006, we substantially improve the share of observations geocoded. Our geocoding process has six major steps, all relying on publicly available data, and each contributes to the improvement in data quality. |
| Keywords: | LBD |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:cen:tnotes:25-14 |