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on Economic Geography |
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Issue of 2025–01–06
seven papers chosen by Andreas Koch, Institut für Angewandte Wirtschaftsforschung |
| By: | Stephen J. Redding (Princeton University, NBER and CEPR) |
| Abstract: | This paper reviews recent quantitative urban models. These models are sufficiently rich to capture observed features of the data, such as many asymmetric locations and a rich geography of the transport network. Yet these models remain sufficiently tractable as to permit an analytical characterization of their theoretical properties. With only a small number of structural parameters (elasticities) to be estimated, they lend themselves to transparent identification. As they rationalize the observed spatial distribution of economic activity within cities, they can be used to undertake counterfactuals for the impact of empirically-realistic public-policy interventions on this observed distribution. Empirical applications include estimating the strength of agglomeration economies and evaluating the impact of transport infrastructure improvements (e.g., railroads, roads, Rapid Bus Transit Systems), zoning and land use regulations, place-based policies, and new technologies such as remote working. |
| Keywords: | cities, commuting, transportation, urban economics |
| JEL: | R32 R41 R52 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:pri:cepsud:340 |
| By: | Stephan Heblich (University of Toronto and NBER); Stephen J. Redding (Princeton University, NBER and CEPR); Yanos Zylberberg (University of Bristol and CEPR) |
| Abstract: | We examine the distributional consequences of trade using the New World Grain Invasion that occurred in the second half of the 19th century. We use a newly-created dataset on population, employment by sector, property values, and poor law transfers for over 10, 000 parishes in England and Wales from 1801–1901. In response to this trade shock, we show that locations with high wheat suitability experience population decline, rural-urban migration, structural transformation away from agriculture, increases in welfare transfers, and declines in property values, relative to locations with low wheat suitability. We develop a quantitative spatial model to evaluate the income distributional consequences of this trade shock. Undertaking counterfactuals for the Grain Invasion, we show that geography is an important dimension along which these income distributional consequences occur. |
| Keywords: | United Kingdom; international trade, income distribution, geography |
| JEL: | F14 F16 F66 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:pri:cepsud:337 |
| By: | Leogrande, Angelo; Drago, Carlo; Mallardi, Giulio; Costantiello, Alberto; Magaletti, Nicola |
| Abstract: | This article focuses on the propensity to patent across Italian regions, considering data from ISTAT-BES between 2004 and 2019 to contribute to analyzing regional gaps and determinants of innovative performances. Results show how the North-South gap in innovative performance has persisted over time, confirming the relevance of research intensity, digital infrastructure, and cultural employment on patenting activity. These relations have been analyzed using the panel data econometric model. It allows singling out crucial positive drivers like R&D investment or strongly negative factors, such as limited mobility of graduates. More precisely, given the novelty of approaches applied in the used model, the following contributions are represented: first, the fine grain of regional differentiation, from which the sub-national innovation system will be observed. It also puts forward a set of actionable policy recommendations that would contribute to more substantial inclusive innovation, particularly emphasizing less-performing regions. By focusing on such dynamics, this study will indirectly address how regional characteristics and policies shape innovation and technological competitiveness in Italy. Therefore, it contributes to the debate on regional systems of innovation and their possible role in economic development in Europe since the economic, institutional, and technological conditions are differentiated between various areas in Italy. |
| Date: | 2024–12–27 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:nftv3 |
| By: | Casati, Paola; Kalantzis, Fotios |
| Abstract: | This study investigates how regional spillovers influence firms' climate investment decisions across EU regions using spatial econometric models. Using data from the European Investment Bank Investment Survey (EIBIS) 2023, we address two key questions: what triggers firms to adopt greener profiles, and how spillover effects impact investment decisions in neighbouring regions. Our study, reveals the existence of significant spatial dependence in firms' climate investment decisions across EU regions, underscoring at the same time the interconnected nature of adaptation and mitigation efforts. Further, risk perceptions, financial capabilities, external conditions like economic and institutional frameworks and EU funds, play a key role in shaping climate investment choices both locally and in neighbouring regions. The results underscore the critical need for spatial considerations in climate policy development, suggesting that policies tailored to regional dynamics can more effectively foster climate resilience and climate investments. |
| Keywords: | European Investment Bank Investment Survey, Green investment, Spatial regression analysis |
| JEL: | C21 Q54 Q55 Q56 Q58 R11 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eibwps:306851 |
| By: | Lorenzo Aldeco Leo; Alejandrina Salcedo |
| Abstract: | We show that in Mexico larger shares of potential remote work at the municipality level are related to lower post-pandemic employment in high-proximity consumer services, a relatively large sector that mainly employs low-income workers. We use a triple difference event study design where we compare employment in high and low proximity sectors across municipalities with different levels of remote work potential, before and after the pandemic. Our results contribute to explain the relatively weak recovery in high proximity employment in the central region of the country, where at the start of the pandemic a larger proportion of high-proximity services located where remote work potential was high, relative to other regions. The analysis highlights that with the pandemic the sectoral distribution of employment has changed, and that the effects on workers depend on their capacity to adjust to the new labor market. |
| Keywords: | Remote work;Consumer services;Middle-income;Triple-differences |
| JEL: | O33 R11 J20 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:bdm:wpaper:2024-17 |
| By: | Eva González; Cindy Rangel; Leonardo Torre; Alejandrina Salcedo; Jorge Alvarado |
| Abstract: | The paper analyzes how the initial disruption in the supply of imported inputs associated to the COVID-19 pandemic may have induced heterogeneous responses in regional and sectoral gross output in México. Using the Regional Input-Output Matrices estimated by Banco de México, and the Supply Ghosh Model, the effects associated to the supply-side shock that ensued from the sudden reduction of imported inputs from China, the European Union, and the United States at the onset of the pandemic are calculated. The Northern region experienced the greatest contraction in gross output, while at the sectoral level, the manufacturing sector gross output was the most affected by the shock relative to a scenario with constant availability of inputs. These results are consistent with the fact that both, the Northern region and the manufacturing sector, are the most integrated to the global supply chain. |
| Keywords: | COVID-19;Input-Output;Ghosh Model;Mexico |
| JEL: | R11 R12 R15 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:bdm:wpaper:2024-19 |
| By: | Ken Itakura; Tomohiro Iwamoto |
| Abstract: | There has been growing interest in sub-national economic impact of mega-FTAs (Free Trade Agreements). Our aim is to explore the linkages between sub-national regions in a country and the global economy. We incorporates sub-national regions(prefectures) in Japan to a global computable general equilibrium (CGE) model. Pre-fectures are introduced to the Global Trade Analysis Project (GTAP) database (Aguiar et al., 2019), and the comparative static GTAP model (Hertel, 1997; McDougall, 2003; Corong et al., 2017). Input-Output (IO) table from each prefecture is used to database construction. In the modified model, domestic inflows and outflows of goods and services in Japan are introduced. To illustrate sub-national impact of mega-FTA, we experiment a set of trade liberalization scenarios. Results reveals that all prefectures in Japan gains from the liberalized trade in terms of the positive impact on economic welfare. In contrast, results on real gross regional product (GRP) of prefecture are mixed in effect where some prefectures gain and some lose. As the parameter value of substitution of domestic trade among prefectures increases, the real GDP in Japan tends to decrease while economic welfare slightly increases. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:toh:tupdaa:61 |