nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2006‒09‒11
five papers chosen by
Steve Ross
University of Connecticut

  1. Agglomeration Economies and Entrepreneurship in the ICT Industry By Oort, F.G. van; Stam, E.
  2. Dimensions of urban poverty in the Europe and Central Asia region By Infrastructure Department, Europe and Central Asia Region
  3. A Stochastic Theory of Geographic Concentration and the Empirical Evidence in Germany By T. Brenner
  4. What Research Now Needs to Tell Policy Makers about School Choice By Lee C. Spector
  5. Soft Budget Constraints as a Risk Sharing Arrangement in an Economic Federation By Lindahl, Erica; Westermark, Andreas

  1. By: Oort, F.G. van; Stam, E. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: In this study indicators of agglomeration economies and their effect on entrepreneurship in the ICT industry are analysed in diverse urban contexts. Agglomeration economies have a stronger impact on new firm formation than on the growth of incumbent firms. Concentration and diversity both have a positive effect on new firm formation as well as on the growth of incumbent firms, while competition only has a positive effect on new firm formation. It is especially the effects of industrial diversity that are revealed to be sensitive to urban contexts: positive effects on new firm formation are attached to the connected cities and to the highly urbanized Randstad, and positive effects on firm growth to the intermediate zone, the connected cities and urban municipalities.
    Keywords: Entrepreneurship;Location;Agglomeration Economies;Spatial Externalities;Urban Regimes;ICT Iindustry;
    Date: 2006–03–29
  2. By: Infrastructure Department, Europe and Central Asia Region
    Abstract: The objective of this study is to contribute to a better understanding of the extent and nature of poverty in urban areas in transition countries in Eastern Europe and the former Soviet Union, providing particular attention to the disparities within urban areas between capital cities and secondary cities, and focusing on dimensions of poverty related to provision of network infrastructure and energy services in cities. Household surveys carried out in 1998-2003 in 20 countries provided the data for the study. The study found substantial differences in urban areas between the capital and secondary cities, with households in secondary cities being worse off. In addition, secondary cities often had poverty indicators equivalent to, or worse than, those of rural areas, including in terms of access and quality (reliability) of infrastructure. The study confirmed that many households, especially in secondary cities, are " infrastructure-poor " because of unreliable and deteriorated services and that these households are hidden in studies that do not examine actual quality. Finally, the study found that income and infrastructure inequality are generally higher in urban areas, although inequality in secondary cities often was greater than that in the capitals.
    Keywords: Population Policies,Rural Poverty Reduction,City Development Strategies,Urban Poverty,Transport Economics Policy & Planning
    Date: 2006–08–01
  3. By: T. Brenner
    Abstract: A stochastic model of the evolution of the firm population in a region and industry is developed. This model is used to make predictions about the expected probability distribution of the firm number in regions and their dynamics. Data on the spatial distribution of firms in Germany is used to check the predictions and estimate the parameters of the model. This is done for 196 industries separately.
    Keywords: geographic concentration, industry dynamics, local clusters, empirical methodology.
    JEL: C12 L60 R12
    Date: 2006–09
  4. By: Lee C. Spector (Department of Economics, Ball State University)
    Abstract: The purpose of this paper is to present a case for a new generation of research on the question of school choice. This case is based on two premises. First, it is likely that taxpayers, who have school aged children and taxpayers who don't, differ with respect to their preferences concerning education. Since al taxpayers must decide on whether and how much school choice should be allowed, it is important to see how these preferences intersect with respect to both educational and extracurricular outputs of the educational process. Second, any policy decision focuses on maximizing a set of goals given a series of constraints. Therefore, it is necessary to examine all aspects of the school choice question simultaneously in order to make incisive policy recommendations. This paper presents a simple economic model which shows the importance of these premises in the policy decision and suggests that the next generation of researchers should consider these premises as important parts of their investigation.
    Date: 2006–08
  5. By: Lindahl, Erica (Department of Economics); Westermark, Andreas (Department of Economics)
    Abstract: We analyze a model where the federal government provides risk sharing arrangements to municipalities investing in a local public good. The risk sharing arrangements are an income equalization system and a system allowing for a soft budget constraint, i.e., a bailout. Our main result is that a bailout system in combination with income equalization can be a more efficient risk sharing arrangement than an income equalization system only. Thus, the introduction of a bailout system is welfare improving.
    Keywords: Bailout; Fiscal federalism
    JEL: H72 H77
    Date: 2006–01–26

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