nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2007‒02‒03
thirteen papers chosen by
Steve Ross
University of Connecticut

  1. The effects of segregation and spatial mismatch on unemployment: evidence from France By GOBILLON Laurent; SELOD Harris
  2. Fannie Mae, Freddie Mac, and Housing: Good Intentions Gone Awry By Lawrence White
  3. Transport Development and the Evolution of Economic Geography By Fujita, Masahisa; Mori, Tomoya
  4. The mechanisms of spatial mismatch By GOBILLON Laurent; SELOD Harris; ZENOU Yves
  5. The Residential Real Estate Brokerage Industry: What Would More Vigorous Competition Look Like? By Lawrence J. White
  6. Do Universities Benefit Local Youth? Evidence from University and College Participation, and Graduate Earnings Following the Creation of a New University By Frenette, Marc
  7. Frontiers of the New Economic Geography By Fujita, Masahisa; Mori, Tomoya
  8. On the Evolution of the Spatial Economy with Multi-unit・Multi-plant Firms: The Impact of IT Development By Fujita, Masahisa; Gokan, Toshitaka
  9. Transport Sector and Regional Price Differentials: A SCGE Model for Chinese Provinces By Ando, Asao; Meng, Bo
  10. Globalization and the Evolution of the Supply Chain: who gains and who loses? By Fujita, Masahisa; Thisse, Jacques-Francois
  11. Are Job Networks Localized in a Developing Economy? Search Methods for Displaced Workers in Thailand By Machikita, Tomohiro
  12. Is Learning by Migrating to a Megalopolis Really Important? Evidence from Thailand By Machikita, Tomohiro
  13. Regional Cooperation of Small & Medium Firms in Japanese Industrial Clusters By Arita, Tomokazu; Fujita, Masahisa; Kameyama, Yoshihiro

  1. By: GOBILLON Laurent; SELOD Harris
    Abstract: In this paper, we investigate how residential segregation and bad physical access to jobs contribute to urban unemployment in the Paris region. We first survey the general mechanisms according to which residential segregation and spatial mismatch can have adverse labor-market outcomes. We then discuss the extent of the problem with the help of relevant descriptive statistics computed from the 1999 Census of the Population and from the 2000 General Transport Survey. Finally, we estimate the effect of indices of segregation computed at the neighborhood and municipality levels, as well as job accessibility indices on the labor-market transitions out of unemployment using the 1990-2002 Labor Force Survey. Our results show that neighborhood segregation is a key factor that prevents unemployed workers from finding a job. These results are robust to potential location endogeneity biases.
    Keywords: residential segregation, spatial mismatch, urban unemployment, sensitivity analysis
    JEL: J64 R14
    Date: 2007–02
  2. By: Lawrence White
    Date: 2006
  3. By: Fujita, Masahisa; Mori, Tomoya
    Abstract: In this paper, based on the recent advances in the new economic geography (e.g., Fujita, Krugman and Venables [12]), we analyze impacts of transport costs on the spatial patterns of economic agglomeration. We first identify prototypes from the existing models, and explain the mechanism of how transport costs influence the balance between economic forces of agglomeration and dispersion. We then investigate the transformation of the agglomeration/dispersion patterns given gradually decreasing transport costs for different goods.
    Keywords: New economic geography, Transport cost, Industrial belt, Transportation, Costs, Geography, Industrial structure, Economic geography, G World,others
    JEL: R12
    Date: 2006–10
  4. By: GOBILLON Laurent; SELOD Harris; ZENOU Yves
    Abstract: The Spatial Mismatch Hypothesis (SMH) argues that low-skilled minorities residing in US inner cities experience poor labor-market outcomes because they are disconnected from suburban job opportunities. This assumption gave rise to an abundant empirical literature, which is rather supportive of the SMH. Surprisingly, it is only recently that theoretical models have emerged, which probably explains why the mechanisms of spatial mismatch have long remained unclear and, as we believe, not properly tested. In this survey, we present relevant facts, review the theoretical models of spatial mismatch, confront their predictions with available empirical results, and indicate which mechanisms deserve further empirical tests.
    Keywords: ghettos, urban unemployment, segregation, discrimination
    JEL: J15 J41 R14
    Date: 2007–01
  5. By: Lawrence J. White
    Date: 2006
  6. By: Frenette, Marc
    Abstract: In this study, I explore the relationship between the presence of a local university in a city and university and college participation among local youth. The evidence is drawn from Census data, along with information on the creation of new university degree-granting institutions in Canada. Students who do not have access to a local university are far less likely to go on to university than students who grew up near a university, likely due to the added cost of moving away to attend, as opposed to differences in other factors (e.g., family income, parental education, academic achievement). When distant students are faced with a local option, however, their probability of attendance substantially increases. Specifically, the creation of a local degree-granting institution is associated with a 28.1% increase in university attendance among local youth, and large increases were registered in each city affected. However, the increase in university participation came at the expense of college participation in most cities. Furthermore, not everyone benefited equally from new universities. In particular, students from lower income families saw the largest increase in university participation, which is consistent with the notion that distance poses a financial barrier. Also, local aboriginal youth only saw a slight increase in university participation when faced with a local university option.
    Keywords: Education, training and learning, Outcomes of education
    Date: 2007–01–25
  7. By: Fujita, Masahisa; Mori, Tomoya
    Abstract: This paper presents an overview of recent development in the new economic geography (NEG), and discusses possible directions of its future development. Since there already exist several surveys on this topic, we focus on the selected features of the NEG which are important yet have attracted insufficient attention, and also on the recent refinements and extensions of the framework.
    Keywords: New economic geography, Agglomeration, International trade, Economic growth, Transport costs, Economics, Transportation, Costs, Economic geography, G World,others
    JEL: F12 F23 R11 R12 R13 R14
    Date: 2006–10
  8. By: Fujita, Masahisa; Gokan, Toshitaka
    Keywords: Agglomeration, Headquarters, Plants, Supply chain, Re-location, Monopolistic competition, Information technologies (technology), International division of labor, Costs, Communication, International trade, G World,others
    JEL: F12 L13 R13
    Date: 2006–10
  9. By: Ando, Asao; Meng, Bo
    Abstract: With regression formulas replaced by equilibrium conditions, a spatial CGE model can substantially reduce data requirements. Detailed regional analyses are thus possible in countries where only limited regional statistics are available. While regional price differentials play important roles in multi-regional settings, transport does not receive much attention in existing models. This paper formulates a spatial CGE model that explicitly considers the transport sector and FOB/CIF prices. After describing the model, performance of our model is evaluated by comparing the benchmark equilibrium for China with survey-based regional I-O and interregional I-O tables for 1987. The structure of Chinese economies is summarized using information obtained from the benchmark equilibrium computation. This includes regional and sectoral production distributions and price differentials. The equilibrium for 1997 facilitates discussion of changes in regional economic structures that China has experienced in the decade.
    Keywords: SCGE model, FOB/CIF prices, Transport sector, Chinese regional economy, Transportation, Econometric model, Local economy, Prices, International trade, China
    JEL: C68 O5 R13 R15
    Date: 2007–01
  10. By: Fujita, Masahisa; Thisse, Jacques-Francois
    Keywords: Information technologies (technology), Communication costs, Agglomeration, Headquarters, Plants, Supply chain, Re-location, Globalization, International economic relations, Communication, G World,others
    JEL: F12 L13 R13
    Date: 2006–10
  11. By: Machikita, Tomohiro
    Abstract: Effects of localized personal networks on the choice of search methods are studied in this paper using evidence of displaced workers by establishment closure in Thailand Labor Force Survey, 2001. For the blocks/villages level, there is less significant evidence of local interactions between job-seekers and referrals in developing labor markets. The effects of localized personal networks do not play an important role in the probability of unemployed job-seekers seeking assistance from friends and relatives. Convincing evidence from the data supports the proposition that both self-selection of individual background-like professions and access to large markets determine the choice of job search method.
    Keywords: Local Interactions, Job Search Methods, Referrals, Asymmetric Information, Thailand, Unemployment, Labor market, Network
    JEL: C21 J63 J64 O18
    Date: 2007–01
  12. By: Machikita, Tomohiro
    Abstract: We examine the effects of learning by migrating on the productivity of migrants who move to a “megalopolis†from rural areas using the Thailand Labor Force Survey. The main contribution is to the development a simple framework to test for self-selection on migration decisions and learning by migrating into the urban labor market, focusing on experimental evidence in the observational data. The role of the urban labor market is examined. In conclusion, we find significant evidence for sorting: the self-selection effects test (1) is positive among new entrants from rural areas to the urban labor market; and (2) is negative among new exits that move to rural areas from the urban labor market. Further, estimated effects of learning by migrating into a “megalopolis†have a less significant impact. These results suggest the existence of a natural selection (i.e. survival of the fittest) mechanism in the urban labor market in a developing economy.
    Keywords: Self-selection, Learning by migrating, Survival of the fittest, Exits, Thailand, Population movement, Labor market
    JEL: D83 J61 R23
    Date: 2007–01
  13. By: Arita, Tomokazu; Fujita, Masahisa; Kameyama, Yoshihiro
    Abstract: This study examines the effects of intra-regional cooperation among firms and institutions on the growth of firms, using the unique data set of questionnaire survey collected in the three major industrial clusters in Japan. In contrast to the existing studies on regional innovations or agglomeration economies, this study explicitly focuses on the detailed contents of cooperative activities with two specific viewpoints: 1) the contents of regional cooperation in each of the three production stages of R&D, commercialization, and marketing, and 2) the detailed types of alliance partners. Our results demonstrate three points: 1) positive correlations are observed between the intensity of regional cooperation and the firm growth rate and R&D expenditure, 2) horizontal cooperation such as alliances with universities and cross-industry exchange organizations has positive significant effects on the growth rate of firms, which is in contrast with the previous studies that stressed only the role of vertically integrated inter-firm linkages in Japan, and 3) contents and partners of regional cooperation are different among the three clusters based on different dominant industries.
    Keywords: Industrial clusters, Industrial agglomeration, Knowledge externalities, Japan, Regional economic cooperation, Small and medium-scale enterprises, Research & development, Marketing, Commerce
    JEL: O18 O53 R3
    Date: 2006–12

This nep-ure issue is ©2007 by Steve Ross. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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