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on Economic Geography |
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Issue of 2023‒10‒16
four papers chosen by Andreas Koch, Institut für Angewandte Wirtschaftsforschung |
| By: | Yifan GONG; Charles Ka Yui LEUNG |
| Abstract: | In our evaluation of the housing expenditure share cap, a macroprudential policy, we discover the importance of modeling space. The spatial considerations allow households to sort into segmented housing markets based on income. Our model generates the observed negative relationship between housing expenditure share and income. More importantly, the cap policy causes a more considerable reduction in housing costs for low-income families than for high-income families in a spatial model. Depending on the assumption of households' preference, this mechanism leads to a minor increase or even a modest decrease in welfare inequality in a spatial model than in a spaceless model. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:1214&r=geo |
| By: | Jihee Kim; Kyoochul Kim; Sangyoon Park; Chang Sun |
| Abstract: | This paper investigates the economic costs of the recent United Nations sanctions on North Korea. Exploiting a novel data set on North Korean firms, we construct measures of regional exposure to export and intermediate input sanctions and show that trade sanctions cause sharp declines in local nighttime luminosity. Additional analysis of newly available product-level price data reveals that import sanctions led to significant increases in market prices. We then estimate a quantitative spatial equilibrium model using cross-region variations. The model implies that the sanctions reduced the country’s manufacturing output by 12.9% and real income by 15.3%. We further quantify the potential impact of alternative sanction scenarios. |
| Keywords: | trade sanction, regional economy, spatial equilibrium, North Korea |
| JEL: | F51 R11 O18 P20 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10630&r=geo |
| By: | Laure Casanova Enault (ESPACE - Études des Structures, des Processus d’Adaptation et des Changements de l’Espace - UNS - Université Nice Sophia Antipolis (1965 - 2019) - AU - Avignon Université - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur); Martin Bocquet (Cerema - Centre d'Etudes et d'Expertise sur les Risques, l'Environnement, la Mobilité et l'Aménagement); Guilhem Boulay (ESPACE - Études des Structures, des Processus d’Adaptation et des Changements de l’Espace - UNS - Université Nice Sophia Antipolis (1965 - 2019) - AU - Avignon Université - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur) |
| Abstract: | This paper investigates the structure of French property ownership and shows how it is crucial input to understand the socio-spatial distribution of wealth and inequalities in cities. To date only partial information exists on this given that we are in a period of financial opacity. In this paper, we provide a theoretical framework to analyze the structure of property ownership. It is defined by four dimensions: the distribution of properties among different categories of owners, the spatial patterns of the properties held by these categories, their estimated financial value, and their concentration within the categories—the latter not studied here, for legal and confidentiality reasons. Drawing on unpublished cadastral data on property owners and property transaction prices, we carry out an empirical analysis which reveals the dominance of household and public ownership, contrasting with the marginal position of private investors. Despite the fact that the structure of ownership is fairly uniform throughout the urban hierarchy, some groups of owners do however hold strategically located properties. Our results show the embeddedness of the property ownership in different accumulation regimes, and relativize any consideration of financialization or neoliberalism as a global all-encompassing framework when analyzing real estate property. |
| Keywords: | Land, housing, inequality |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04187490&r=geo |
| By: | Deborah Gefang; Stephen G. Hall; George S. Tavlas |
| Abstract: | This paper develops a simple two-stage variational Bayesian algorithm to estimate panel spatial autoregressive models, where N, the number of cross-sectional units, is much larger than T, the number of time periods without restricting the spatial effects using a predetermined weighting matrix. We use Dirichlet-Laplace priors for variable selection and parameter shrinkage. Without imposing any a priori structures on the spatial linkages between variables, we let the data speak for themselves. Extensive Monte Carlo studies show that our method is super-fast and our estimated spatial weights matrices strongly resemble the true spatial weights matrices. As an illustration, we investigate the spatial interdependence of European Union regional gross value added growth rates. In addition to a clear pattern of predominant country clusters, we have uncovered a number of important between-country spatial linkages which are yet to be documented in the literature. This new procedure for estimating spatial effects is of particular relevance for researchers and policy makers alike. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2309.03740&r=geo |