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on Urban and Real Estate Economics |
| By: | Christian A. L. Hilber |
| Abstract: | House price capitalization - the adjustment of house prices to changes in local public service and tax levels - has long been thought to be a means of testing for efficiency in the local public sector. In this article I argue that the extent of house price capitalization itself may have important economic implications. In doing so I synthesize an emerging literature that explores the conditions under which public and private investments and intergovernmental transfers are capitalized into local house prices and the broader implications of such capitalization. The main insights are: (i) House price capitalization is more pronounced in locations with strict regulatory and/or geographical/physical supply constraints; (ii) capitalization can - under certain conditions - induce the provision of durable local public goods and club goods; and (iii) capitalization effects - which are habitually ignored by policy makers - have important adverse consequences for a wide range of policies such as intergovernmental aid or the mortgage interest deduction. |
| Keywords: | House price capitalization, homeownership, local public goods, club goods, land use regulation, land and housing supply, incentives to invest, redistribution |
| JEL: | D71 R21 R31 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0091&r=ure |
| By: | Roberto Antonietti; Giulio Cainelli |
| Abstract: | A recent strand of the economic literature has emphasised the role of services, and in particular knowledge-intensive business services (KIBS), as a primary source of knowledge creation and diffusion. Since this transferring process often occurs through strong face-to-face interactions, the role of spatial proximity becomes crucial. Theoretical and empirical literature shows that the geographic concentration of industry induces firms to vertically disintegrate their production, due to the lowering of transport and governance costs as well as to the reduction of opportunism in managing transactions. However, the evidence is primarily based on manufacturing firms, whereas little or no attention is given to service firms. In this paper we try to fill this gap by estimating the effects of spatial agglomeration on knowledge intensive business service firms' vertical disintegration with reference to the metropolitan region of Milan. Relying on a rich firm-level dataset of about 12.000 KIBS firms located in the metropolitan area of Milan in 2008, we first geo-referenciate our data by employing a GIS routine. Then, we define a set of rings moving out of increments of 1 kilometre, and we count the number of firms located within each ring. For each firm, we compute, ring by ring, the number of neighbouring firms that are in the same three-digit industry, and the number of firms that are in all the three-digit industries except for the one in which the firm operates. In this way, we estimate the impact of proximity-based specialization Vs diversification economies on KIBS firms' vertical disintegration, exploiting information on the actual distance between each pair offirms in the sample. Our dependent variable is calculated as the share of purchased business services over total production costs. This purchased-inputs variable allows accounting for the fact that "many business services are likely to be exactly the kind of locally produced intermediate input that producers in localized areas will have greater access to than producers in isolated areas" (Holmes 1999, p. 316). |
| Keywords: | GIS, KIBS, spatial agglomeration, vertical disintegration |
| JEL: | R12 L8 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwpol:1105&r=ure |
| By: | Andy Pike (CURDS, Newcastle University); Andrés Rodríguez-Pose (IMDEA Social Sciences Institute); John Tomaney (CURDS, Newcastle University); Gianpiero Torrisi (CURDS, Newcastle University); Vassilis Tselios (Monash University, Australia) |
| Abstract: | After a decade of devolution and amid uncertainties about its effects, it is timely to assess and reflect upon the evidence and enduring meaning of any 'economic dividend' of devolution in the UK. Taking an institutionalist and quantitative approach, this paper seeks to discern the nature and extent of any ‘economic dividend’ through a conceptual and empirical analysis of the relationships between spatial disparities, spatial economic policy and decentralisation. Situating the UK experience within its evolving historical context, we find: i) a varied and uneven nature of the relationships between regional disparities, spatial economic policy and decentralisation that change direction during specific time periods; ii) the role of national economic growth is pivotal in explaining spatial disparities and the nature and extent of their relationship with the particular forms of spatial economic policy and decentralisation deployed; and, iii) there is limited evidence that any ‘economic dividend’ of devolution has emerged but this remains difficult to discern because its likely effects are over-ridden by the role of national economic growth in decisively shaping the pattern of spatial disparities and in determining the scope and effects of spatial economic policy and decentralisation. |
| Keywords: | Economic Dividend; Devolution; Spatial Disparities; Spatial Economic Policy; Decentralisation; UK |
| Date: | 2011–10–14 |
| URL: | http://d.repec.org/n?u=RePEc:imd:wpaper:wp2011-18&r=ure |
| By: | John Y. Campbell; João F. Cocco |
| Abstract: | This paper solves a dynamic model of a household's decision to default on its mortgage, taking into account labor income, house price, inflation, and interest rate risk. Mortgage default is triggered by negative home equity, which results from declining house prices in a low inflation environment with large mortgage balances outstanding. Not all households with negative home equity default, however. The level of negative home equity that triggers default depends on the extent to which households are borrowing constrained. High loan-to-value ratios at mortgage origination increase the probability of negative home equity. High loan-to-income ratios also increase the probability of default by tightening borrowing constraints. Comparing mortgage types, adjustable-rate mortgage defaults occur when nominal interest rates increase and are substantially affected by idiosyncratic shocks to labor income. Fixed-rate mortgages default when interest rates and inflation are low, and create a higher probability of a default wave with a large number of defaults. Interest-only mortgages trade off an increased probability of negative home equity against a relaxation of borrowing constraints, but overall have the highest probability of a default wave. |
| JEL: | E21 G21 G33 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17516&r=ure |
| By: | Max Nathan |
| Abstract: | Ethnic inventors play important roles in US innovation systems, especially in high-tech regions like Silicon Valley. Do 'ethnicity-innovation' channels exist elsewhere? This paper investigates, using a new panel of UK patents microdata. In theory, ethnicity might affect positively innovation via 'star' migrants, network externalities from co-ethnic groups, or production complementarities from diverse inventor communities. I use the novel ONOMAP name classification system to identify ethnic inventors. Controlling for individuals' human capital, I find small positive effects of South Asian and Southern European co-ethnic group membership on individual patenting. The overall diversity of inventor communities also helps raise individual inventors' productivity. I find no hard evidence that ethnic inventors crowd out patenting by majority groups. |
| Keywords: | ethnic inventors, innovation, patents, cultural diversity, diasporas, cities |
| JEL: | J15 J24 J61 M13 O3 R11 R23 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0092&r=ure |
| By: | Giulio Cainelli; Massimiliano Mazzanti; Sandro Montresor |
| Abstract: | This paper investigates the drivers of the environmental innovations (EI) introduced by firms in local production systems (LPS). The role of firm network relationships, agglomeration economies and internationalization strategies is analysed for a sample of 555 firms in the Emilia-Romagna region, North-East of Italy. Cooperating with 'qualified' local actors - i.e. universities and suppliers - is the most important driver of EI for most firms, along with their training policies and IT innovations. The role of agglomeration economies is less clear and seems to depend on the EI propensity of more locally oriented firms playing in industrial district areas, which might even turn agglomeration economies into dis-economies. Networking effects and agglomeration economies are instead found to strongly promote the adoption of EI by multinational firms, thus highlighting the importance of local-global interactions. We provide some interesting findings for particular kinds of challenging EI in such fields as CO2 abatement and ISO labelling, generally extending the analysis of EI drivers by joining local and international factors. |
| Keywords: | Eco-innovation, foreign ownership, networking, district, agglomeration economics, local production systems |
| JEL: | C21 L60 O13 O30 Q20 Q58 F23 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwpol:1108&r=ure |
| By: | Ejaz Ghani; William R. Kerr; Stephen D. O'Connell |
| Abstract: | We analyze the spatial determinants of entrepreneurship in India in the manufacturing and services sectors. Among general district traits, quality of physical infrastructure and workforce education are the strongest predictors of entry, with labor laws and household banking quality also playing important roles. Looking at the district-industry level, we find extensive evidence of agglomeration economies among manufacturing industries. In particular, supportive incumbent industrial structures for input and output markets are strongly linked to higher establishment entry rates. We also find substantial evidence for the Chinitz effect where small local incumbent suppliers encourage entry. The importance of agglomeration economies for entry hold when considering changes in India’s incumbent industry structures from 1989, determined before large-scale deregulation began, to 2005. |
| JEL: | L10 L26 L60 L80 M13 O10 R00 R10 R12 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17514&r=ure |
| By: | Giulio Cainelli; Donato Iacobucci |
| Abstract: | Several recent studies investigate the relation between geographic concentration of production and vertical integration, based on the hypothesis that spatial agglomeration of firms in the same industry facilitates input procurement thereby reducing the degree of vertical integration. The present paper contributes to this debate by also considering the effects of industry variety at the local level. Specifically, we consider two forms of variety: unrelated variety and vertically related variety. The latter index is constructed using information drawn from input-output tables and captures the opportunities for outsourcing within the local system. We consider inter-industry vertical integration by taking account of the ownership of activities with input-output linkages. Using a dataset of 24,663 Italian business groups in 2001, we estimate Tobit models to investigate the influence of vertically related variety and other agglomeration forces on the degree of vertical integration of groups. Our evidence confirms that vertical integration is influenced by industry specialization at the local level. We also find that the higher the vertically related variety, the lower the need for firms to integrate activities since they have more opportunities to acquire intermediate goods and services within the local system. |
| Keywords: | vertical integration, agglomeration, related-variety, business group |
| JEL: | L2 M2 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwpol:1104&r=ure |
| By: | Lefèvre, Mélanie; Tharakan, Joe |
| Abstract: | Transport costs play a key role in agricultural markets in developing countries and are one of the causes of poverty amongst farmers that are geographically isolated. Another characteristic of agricultural markets is that they often involve interlinked transactions. However, the existing theoretical literature on interlinked transactions does not take into account the existence of transport costs. This paper develops a model of input-output interlinked contracts between geographically dispersed farmers and a trader, whether this trader is for-profit or non-profit. We derive implications of imposing either uniform or mill pricing policies, as opposed to spatial price discrimination. Impact on profit, farmers' income, level of production, social welfare and regional disparities are investigated. |
| Keywords: | Rural development; spatial pricing; transportation |
| JEL: | O18 R32 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8615&r=ure |
| By: | William Frey; Julie Park |
| Abstract: | This report seeks to evaluate selective migration processes of Hispanic and Asian nationality groups in the US from established settlement areas, using recent migration data from the American Community Survey. The underlying goal is to detect migration tendencies leading toward an increased dispersion of these groups associated with their migration processes. Using descriptive statistics, maps, and migration models, we assess how migration processes in the 2006-8 period are leading to the dispersal of Hispanic and Asian race ethnic groups across metropolitan areas, with special attention to the roles of co-ethnic communities and spatial assimilation. These analyses employ migration data available from the 3-year 2006-8 American Community Survey using restricted data from the US Census Bureau’s Research Data Centers. This use of the restricted ACS files permitted the first post 2000 analysis of inter-metropolitan migration for Hispanic groups (Mexicans, Puerto Ricans, Cubans, Salvadorans, Dominicans) and Asian groups (Chinese, Indians, Filipinos, Vietnamese, Koreans) using the detailed demographic and geographic attributes available with these files. The data and analysis presented here provide a benchmark for further research of this kind with the American Community Survey in light of the fact that migration data will no longer be available from the US decennial census. The study examines migration from these groups’ major settlement areas to other metropolitan area destinations as they are affected by the attraction of co-ethnic communities and by a migrant selectivity pattern consistent with the perspective of spatial assimilation. The migration processes themselves were evaluated in terms of two components: the out--migration rates of residents, and the destination selection of movers. From the perspective of co-ethnic community attraction, it was hypothesized that the outmigration rates from high co-ethnic settlement areas would be lower than those from areas where the group had a smaller overall presence and that the destination selections of out-migrants would be positively affected by the presence of high co-ethnic population shares in destination areas. From the spatial assimilation perspective, it was hypothesized that out-migration from high coethnic areas would least likely occur for group members with lowest education, poor facility with English, and recently arrived in the US; whereas the selection of destinations with large coethnic population shares would be most likely to occur for these same population categories. The results strongly confirm that co-ethnic community attraction continues to reduce outmigration of groups from major settlement origins and positively influences their destination selections. A series of multivariate migrant destination selection models confirm a consistent draw of ethnically similar destinations across individual Hispanic and Asian groups when other economic, demographic and structural metropolitan attributes are taken into account. In contrast, results regarding spatial assimilation are typically mixed or nonexistent in characterizing both out-migration and mover destination selectivity patterns. In fact, we find contrary evidence for some Asian groups for whom it is the most educated, and native born migrants who show a penchant for selecting destinations with greater co-ethnic population shares. Among the greatest destinations for Indians, for example, are Philadelphia, Seattle, Dallas, Boston and Atlanta- areas with higher than average Indian population shares, and areas that also house knowledge-based industries. The selection of co-ethnic destinations among Hispanic group migrants appears somewhat impervious to education attainment and Hispanic and Mexican group movers, who are foreign born and who arrived since 2000, are least, rather than most, prone to select co-ethnic destinations. The mover destination models make plain that employment growth at destination provides a strong draw for all Hispanic groups. This suggests that recent growth in low skilled jobs in parts of the country with small Hispanic populations are nonetheless attracting newly arrived, and less skilled Mexicans and other Hispanics who might have previously been especially lured to destinations with large co-ethnic population shares. |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:11-33&r=ure |
| By: | Basant, Rakesh; Chandra, Pankaj; Upadhyayula Rajesh |
| Abstract: | The role of industrial clusters in the industrialization of many emerging economies continues to dominate the debate among policy makers and researchers worldwide. While recent discussions on this debate have focused on knowledge spillovers among participants within clusters, knowledge flows between non local networks and the cluster actors have not been accorded due attention in the literature. Further, the literature does not compare the relative impact of knowledge flows among firms within clusters and firms outside clusters. In this study, we attempt a comparative analysis of the role of knowledge flows in capability formation among firms in the Indian Information Technology sector (IT sector) across cluster and non-cluster locations. The empirical results suggest that at the firm level, leveraging of capabilities to enhance performance and networks to build capabilities is not automatic; structural features of the firms’ location enable this transformation. Moreover, while capabilities affect performance of firms positively only in clusters, economies of scale and some strategies like quality certification used by firms impact performance of firms outside clusters. Interestingly, although economies of scale do not impact the performance of firms within clusters, they do, however affect the capability formation of firms within clusters only. Further, we found that local and national non-customer networks affect capability formation of firms within and outside clusters whereas international customer networks affect capability formation of firms within clusters only. These have implications for how firms can develop appropriate strategies to enhance their performance. |
| Keywords: | Industrial Clustering, Information Technology industry, Networks, Capabilities |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:10677&r=ure |
| By: | Arghya Ghosh; Kieron Meagher |
| Abstract: | Infrastructure, as it impacts transport costs, is crucial in determining equilibrium outcomes in spatial competition; however, infrastructure investment is typically exogenous. Our political economy analysis of infrastructure choice is based upon consumer preferences derived from Salop’s circular city model. In this setting, infrastructure investment has two effects: it directly lowers costs to consumers and indirectly affects market power. We show how political support for infrastructure investments depends crucially on the details of the market. Competition boosts popular support for infrastructure — often excessively so — while collusion leads to underinvestment. The uncertainty produced by infrastructure induced entry leads to traps and thresholds. |
| JEL: | D43 L13 H4 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:acb:cbeeco:2011-556&r=ure |
| By: | JG. Brida; N. Garrido; Francesco Mureddu |
| Abstract: | This paper compares the long run prediction of convergence clubs introduced by Quah (1996 and 1997) with the actual observed dynamics of the Italian regions during the period 1970-2004. Economic dynamics is described by the evolution per capita GDP and different notions of distance are introduced to compare the trajectories of the regions. In addition, by means of hierarchical clustering methodologies the set of economies are segmented. By using the average distance, the study identifies two main performance clubs resembling the long run prediction of two converge clubs. On the other hand, the distance correlation shows different co-movements between members of the same cluster, indicating a variety of responses to external shocks. In particular the average distance identifies a clear division between a high performance club consisting of regions from the Center North, and a low performance club composed by regions from the South and islands. The presence of a cluster composed by center north regions is substantially confirmed by the distance correlation analysis, suggesting an homogeneous response to external shock. By contrast Southern regions display the same dynamical evolution but difference in co-movements. Our analysis provides hints about the fundamentals that link the regions in their process of divergence. In fact the performance clubs pattern we discovered reflects the distribution of economic activities as well as the structural attributes of the regional economies. |
| Keywords: | economic convergence; economic dualism; hierarchical clustering |
| JEL: | L83 C24 C14 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201116&r=ure |
| By: | Steve Gibbons; Henry G. Overman |
| Abstract: | This policy paper is concerned with rural policy. It spells out the lessons for rural policy that emerge from recent SERC research. |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercpp:008&r=ure |
| By: | Khiabani, Nasser |
| Abstract: | This paper analyzes the effects of oil price and monetary shocks on the Iranian housing market in a Bayesian SVAR framework. The prior information for the contemporaneous identification of the SVAR model is derived from standard economic theory. To deal with uncertainty in the identification schemes, I calculate posterior model probabilities for the SVAR model identified by a different set of over-identification restrictions. In order to draw accurate inferences regarding the effectiveness of the shocks in an over-identified Bayesian SVAR, a Bayesian Monte Carlo integration method is applied. The findings indicate that oil price shocks explain a substantial portion of housing market fluctuations. Housing prices increase in response to a positive credit shock, but only with a noticeably smaller magnitude when compared with the response to a positive oil price shock. |
| Keywords: | Housing market fluctuations; Oil price shocks; Credit shocks; Bayesian Structural VAR; Bayesian model averaging (BMA); Bayesian Monte Carlo integration method |
| JEL: | C32 C53 E32 E52 |
| Date: | 2010–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:34041&r=ure |
| By: | Nara F. Monkam (Department of Economics, University of Pretoria) |
| Abstract: | The paper assesses the technical efficiency of 231 local municipalities in South Africa for 2007 and investigates the potential determinants of efficiency gaps among local municipalities in the country using the nonparametric Data Envelopment Analysis (DEA) and the parametric Stochastic Frontier Analysis (SFA) techniques. In relation to the DEA technique, efficiency scores are subsequently explained in a second stage regression model with potential explanatory factors using a Tobit regression model. The results show that on average, B1 and B3 municipalities could have theoretically achieved the same level of basic services with about 16% and 80% fewer resources respectively; the difference between the most efficient and the least efficient municipalities being quite substantial. The results also show that B4 municipalities could have theoretically achieved the same level of basic services with about 62% fewer operating expenditures. Furthermore, fiscal autonomy and the number and skill levels of the top management of a municipality’s administration were found to influence the productive efficiency of municipalities in South Africa. The paper findings raise concerns over the future of local municipalities in South Africa, especially B3 and B4 municipalities, about their capability to efficiently deliver on expected outcomes on a sustainable basis. |
| Keywords: | Municipalities, spending efficiency, sub-national government finance, fiscal decentralization; DEA analysis, Tobit, SFA |
| JEL: | H11 H71 H72 H77 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:201120&r=ure |
| By: | Shatdal, Arvind |
| Abstract: | Physical spaces may significantly shape social interaction. This study has explored how the residential provisions (Dormitories) for students at IIM-Ahmedabad impact their social life. This paper adopted interpretive methods in order to explore the impact of physical space on sociability of students. Data was collected with the help of interviews and observations in order to explore and uncover the collective meaning imparted by the participants of research in understanding the impact of built spaces on sociability for the old campus and new campus dormitory residents of IIMA. Three narratives emerged from the collected data. First narrative focused on life in the dorm, second narrative focused on artifacts and how they influence the interaction among the students, and third narrative was built around the events in the dorm. Interpretive methods helped in drawing out participants’ meanings related to spaces of the old and new campus dormitories and their impact on sociability. The study explored the lifeworld of dorm residents within these spaces. The study finds that built space and the organization of artifacts in that space do make a significant difference in social life of the dorm residents of IIMA. |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:10679&r=ure |
| By: | Rupayan Pal (Indira Gandhi Institute of Development Research); Ajay Sharma (Indira Gandhi Institute of Development Research) |
| Abstract: | In this paper, we introduce political competition in a sequential move tax competition game between two regions for foreign owned mobile capital. It shows that in case of sequential move, political delegation takes place only in the follower region, not in the leader region. Moreover, political competition need not necessarily lead to higher tax rate in equilibrium. These results are in the sharp contrast to the existing results. |
| Keywords: | Mobile capital, Tax competition, Political competition, Leadership, Public good |
| JEL: | F21 H25 D70 H42 D40 R50 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2011-024&r=ure |
| By: | Plerhoples, Christina; Scorsone, Eric |
| Abstract: | Monitoring the fiscal stress levels of local governments at the state level is a critical strategy for predicting and preventing fiscal crises. The State of Michigan currently monitors the fiscal stress levels of its local governments using a set of indicators created in 2002. These indicators, however, are not capturing all types of fiscal stress and are not being utilized to their fullest. In this report, we outline proposed changes to the current system, calculate the proposed indicators, and then compare them to the current system. The new fiscal stress indicator system proposed here builds upon the current system in five ways. First, it better captures different types of fiscal stress that are being missed in the current system, including those caused by transfers of money from one fund to another and unfunded long term liabilities. Second, it utilizes a mixture of scoring methods that help to determine both relative stress and absolute stress. Third, it measures both current stress levels and changes in stress levels in order to predict future stress in localities that are currently healthy and those that are worsening. Fourth, it captures the magnitude of stress within each indicator rather than assigning a point of either zero or one based on a single threshold. And fifth, it differentiates between different types of fiscal stress which allows it to be better linked with possible solutions based on the specific type of fiscal stress faced by each locality. Two key points are proposed in this paper. First, fiscal stress involves not only financial distress, but service level distress. If a locality is not providing an adequate level of services to its citizens, it is in stress. A city that has balanced books but a high level of unemployment or crime is not a healthy city. Second, not all types of fiscal stress will be solved through the use of short term strategies such as emergency financial managers and emergency loans. Some stress is chronic and requires solutions that are more structural in nature. Short term solutions may work well in situations where the stress is short term and perhaps internally controlled. They may not be successful, however, in situations where stress is chronic and external in nature. The new indicator system helps to distinguish between these different types of fiscal stress. However, fiscal stress indicator systems do not work in isolation. Results must be analyzed and acted upon and indicators must be published in a timely manner. Cities that fall within the distressed range should be further examined and solutions should be sought. The new system will facilitate this action by helping the state to not only acknowledge and predict fiscal stress, but to better link it with strategies that are suited for the specific type of fiscal stress in each locality. This will help the state to not only alleviate fiscal stress, but to prevent it before it occurs. |
| Keywords: | Fiscal Stress Indicators, Local Government, Public Economics, H72, |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:midasp:116167&r=ure |
| By: | Sandrine Labory |
| Abstract: | The paper analyses the role of external knowledge flows in the upgrading of the biomedical district of Mirandola, Emilia-Romagna region, in Italy. The district produces two types of products, namely disposables and electromedical machines, and the paper considers this second production type. The Mirandola district has been able to maintain a relatively good competitive position. The paper shows that while all firms in this sector in this region tend to have fairly good performance in terms of size and revenue growth, a significant difference exists in terms of innovation performance. Firms in the Mirandola district produce more patents and more scientific publications. From a methodological point of view, negative binomial regressions are made on the determinants of patenting and publishing activity by firms. Two major factors seem to explain the superior performance in terms of innovation. First, the significant role of the leader firms in the district. Second, linkages external to the district, namely relationships with research centres (universities in particular) located not only in the region but also in the rest of the country and abroad. The importance of external relations and institutional diversity (in terms of variety of institutions collaborating in scientific publications), appear to grow over time. |
| Keywords: | Innovation; Upgrading; Industrial districts; Biomedical sector |
| JEL: | O31 L60 R11 |
| Date: | 2011–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:udf:wpaper:201114&r=ure |
| By: | Scharf, Kimberley Ann |
| Abstract: | We describe a model of fundraising in social groups, where private information about quality of provision is transmitted by social proximity. Individuals engage in voluntary provision of a pure collective good that is consumed by both neighbors and non-neighbors. We show that, unlike in the case of private goods, better informed individuals face positive incentives to incur a cost to share information with their neighbors. These incentives are stronger, and provision of the pure public good greater, the smaller are individuals’ social neighborhoods. |
| Keywords: | private provision of public goods; social learning |
| JEL: | D6 D7 H1 L3 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8607&r=ure |