The Annals of Regional Science

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Online ISSN: 1432-0592
Print ISSN: 0570-1864
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  • Maurizio MalpedeMaurizio Malpede
  • Marco PercocoMarco Percoco
How global warming affects human development is a central question for economists as well as social scientists. While most of the literature has focused on the impact of weather on income, less is known on the relationship between climate and local human development. This paper considers shocks in precipitation, temperature, and an original measure of soil aridity to first exploit the association between climate warming and human development, and second, on its dimensions. We show that while precipitations do not have a significant long-term impact on human development growth, variations in temperature and potential evapotranspiration negatively affect two of the three determinants of the Human Development Index, namely life expectancy at birth and education. These results suggest that other climate indicators, such as the potential evapo-transpiration of the soil, should be considered in addition to the standard indicators, when evaluating the localized economic effects of climate change.
 
Research on shrinking cities shows continuous links between this phenomenon and urban decline, which has been analyzed in many works, especially in Greece. The impact on urban development can be positive, while population growth over time is characterized by the degree of its convergence. The aim of this study is to gain a deeper understanding of the challenge of urbanization in large cities. The sample used in this effort consists of 117 Greek cities with more than 10,000 inhabitants in 1994, using econometric tools to identify settlements using Markov chain theory with data from 1994 to 2020 from the Hellenic Statistical Authority. Using Urban Hierarchy Research (UHR), a significant decline in Greek Urban Concentration (GUC) and a continuous increase in the population of small-and medium-sized cities were found. The Greek urban system is moving toward a distribution characterized by seeding large cities. The study aims to open a broader research discussion in the field of spatial econometric applications.
 
Entrepreneurship is a productive force of innovation and economic development. However, in post-conflict regions, there is a greater challenge in allocating entrepreneurial talent to productive entrepreneurship. In this study, we examine the entrepreneurship ecosystem, which is built on the “bottom-up” principles to understand whether its pillars can facilitate productive entrepreneurship in two Ukrainian regions shaken by multiple revolutions and regime change. We introduce a model that puts entrepreneurial conditions in cities and formal institutional changes to a competitive test. Building on the regional entrepreneurship literature, we perform an empirical study in a developing country to reveal what drives productive entrepreneurship in post-conflict regions with entrepreneurship culture, formal networks, debt and equity financing emerging as important determinants of productive entrepreneurship. The effect of formal institutions is significant but highly correlated with rent-seeking behavior of government and corruption. Our analysis suggests that the entrepreneurial conditions in regions focusing on the bottom-up processes of supporting entrepreneurship should work better to enhance productive entrepreneurship activity in a post-conflict region.
 
“Near-sighted” individuals: An example of a “maximal near-sighted” mobility trajectory (Tˆm)m=05\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$ \big( \widehat{T}_{m} \big )_{m = 0}^{5}$\end{document} for n=8\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$n = 8$\end{document} and k=3\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$k = 3$\end{document}. A steady-state distribution is reached in ⌊k−1kn⌋=⌊23n⌋=5\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$\left \lfloor \dfrac{k - 1}{k}n \right \rfloor = \left \lfloor \dfrac{2}{3}n \right \rfloor = 5$\end{document} time periods, and Tˆk=Tˆ5\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$\widehat{T}_{k} = \widehat{T}_{5}$\end{document} for k>5\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$k > 5$\end{document}.
“Near-sighted” individuals: An example of a “maximal near-sighted” mobility trajectory for n=8\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$n\,{=}\,8$\end{document} and k=3\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$k\,{=}\,3$\end{document} when the initial distribution of the individuals is (XA0,XB0,XC0)=({8,6,4,2},{7,5,3,1},∅)\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$(X_{A}^{0}{,}X_{B}^{0}{,}X_{C}^{0}) \,{=}\, (\{ 8{,}6{,}4{,}2\},\{ 7{,}5{,}3{,}1\},\varnothing )$\end{document}. A steady-state distribution is reached in four time periods.
“Near-sighted” individuals: An example of a “maximal near-sighted” mobility trajectory for n=8\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$n\,{=}\,8$\end{document} and k=3\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$k\,{=}\,3$\end{document} when the initial distribution of the individuals is (XA0,XB0,XC0)=({8,7,6,5,4,3,2},{1},∅)\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$(X_{A}^{0}{,}X_{B}^{0}{,}X_{C}^{0})\,{=}\,(\{ 8{,}7{,}6{,}5{,}4{,}3{,}2\},\{ 1\},\varnothing )$\end{document}. A steady-state distribution is reached in five time periods.
We model an environment in which individuals prefer to be in a space in which their rank is higher, be it a social space, a geographical space, a work environment, or any other comparison sphere which we refer to in this paper, and without loss of generality, as a region. When the individuals can choose between more than two regions, we inquire: (i) whether a steady-state distribution of the population is reached; (ii) how long it will take to reach a steady state; and (iii) if a steady state obtains, whether at the steady state social welfare is maximized. Despite the fact that when there are three or more regions the mobility paths are more intricate than when there are only two regions, we prove that a steady-state distribution of the population across the regions is reached; we identify the upper bound of the number of time periods that it will take to reach the steady-state distribution; and we show that the steady-state distribution maximizes social welfare. This last result is surprising: even though the individuals act of their own accord, they achieve the socially preferred outcome.
 
Given the state of our knowledge and the questions that are emerging in scientific and political circles regarding the relationships between entrepreneurship and its local context, it is worthwhile to investigate the geography of entrepreneurship with reference to the comprehensive notion of territory that is proposed in regional science. This Special Issue of The Annals of Regional Science seizes this opportunity to extend our knowledge in the field with original contributions addressing the puzzling role of the territory in entrepreneurship. You can access the article here: https://rdcu.be/c1qfQ
 
Columbus area transit network
(Source: COTA, https://cota.com/)
Cleveland transit network
(Source: GCRTA, http://www.riderta.com/)
Sources of funding to Ohio’s transit agencies (ODOT 2015)
Public transit funding trends 2009–2016
We examine the relationship between public transit finance, economic growth, and equity. This is the first study to analyze the long-term effect of transit operation revenues on employment growth for all workers and low-skilled workers. We use state-of-the-art dynamic panel data techniques to analyze municipalities covered by 26 transit agencies in the US state of Ohio. We find that both government subsidies and fare revenue, indicators of transit system improvement, have a positive impact on overall jobs. An increase in government subsidies by $10 per capita results in a 1.1% increase in overall jobs in the same year. The local jobs also grow by 4.6% when fare revenue is increased by $10 per capita. In addition, fare revenue has a positive impact on the number of low-skilled jobs both in current and future years. A one dollar increase in fare revenue per capita grows the number of low-skilled jobs by 1.3% in the same year and 0.4% in the next year.
 
Conceptual framework
Spatial distribution of SEZs and entrepreneurship rate
Energy intensity by industry
Parallel trend of entrepreneurship
In this study, a quasi-experiment of the special economic zones (SEZs) in China was conducted to explore whether green industrial parks play a role in enhancing local entrepreneurship. A household-level panel dataset of 9-year data across counties was built to compare the effects of green and non-green SEZs on the participation of local residents in entrepreneurial activities in a difference-in-differences (DID) setting. According to the empirical results, SEZs can promote local entrepreneurial activities, and such effects are more evident for green ones. An examination of the channels was conducted to reveal that SEZs have an entrepreneurial impact by reducing financial constraints, creating a connection between customers and suppliers, and spreading knowledge. Green SEZs were found to promote entrepreneurship mainly by reducing financial constraints and spreading knowledge.
 
This paper examines how integration affects Foreign Direct Investment location in relation to a newly internalised border. It focuses on the fifth European Union enlargement that integrated the Central and Eastern European Countries. Using a spatial autoregressive model, 35,103 FDI location decisions are analysed for Europe at a NUTS-2 regional level over 1997–2010. It finds no distance effect in FDI location prior to enlargement, but after this time FDI is 37% higher in the CEEC regions that are contiguous with the newly internalised border. This is not explained by a national border effect that occurs throughout the union, nor by a drop in FDI in the border regions of the old Member States, but rather it is consistent with improved market access from the removal of the border checks. Along the internalised border it amounts to an extra 60 FDI projects and 13,600 gross jobs per annum, which is up to 2000 investments in the long-run. The results have implications for economic development and cohesion of the enlarged union.
 
Plant locations of three firms in Weber’s location problem
Subsidiary payment solution by expanding a critical-isodapane
Initial circumstance of rural sustainable economic problem
An alternative spatial organisation as wider-areal cooperative coordination
A game tree in an extensive form
Excessive spatial concentrations of populations and economic activities are problematic in many countries and regions. To solve these problems, decentralisation and other related policies are often considered and implemented. In this paper, we explore how these policies can be more effective by detecting their missing elements from the standpoint of location economics. The methodological framework used is as follows. For decentralisation to work effectively, it may be important that less hierarchically ordered regions attain sufficient comfort or amenities for local producers and households. However, those regions may face managerial problems with their infrastructure and cultural facilities in efficiency terms, which can be caused by changes in the situation, such as a decline in population size associated with ageing. In such a situation, policies intended to solve problems in cooperation with neighbouring regions will play an important role. However, as an economic zone expands, several existing administrative and economic-activity-related functions are dispersed or merged, which may raise problems associated with physical accessibility. A simple location model is built to investigate how rural areas can overcome these issues by employing a framework of central place theory as well as a transportation policy.
 
Posterior means of the relative risk for (a) incidence, (b) IC admission, and (c) Death for selected weeks for W11-15 (11 Mar 2020–8 Apr 2020), W17 (22 Apr 2020), W18 (29 Apr 2020), W21 (20 May 2020), W24 (10 Jun 2020), W26 (24 Jun 2020), W27 (1 Jul 2020), W43 (21 Oct 2020), W44 (28 Oct 2020), W45 (4 Nov 2020), W47 (18 Nov 2020), W48 (25 Nov 2020), W57 (27 Jan 2021), W58 (3 Feb 2021), W59 (10 Feb 2021), W60 (17 Feb 2021), W68 (14 Apr 2021), W70 (28 Apr 2021). W refers to the week and the date to the beginning of the week
Observed and out-of-sample predicted relative risk using individual and joint modelling for a incidence, b IC admission, and c death for selected weeks (see note 24)
Observed and predicted relative risk hotspots for individual and joint modelling a incidence, b IC admission, and c death for selected weeks (given in note 24)
Predicted weekly relative COVID-19 risk of a incidence, b IC admission, and c death for W71-85 (5 May 2021—11 August 2021)
Weekly numbers of new incidences, IC admissions, and deaths per region. Note: The primary axis on the left-hand side denotes the weekly number of incidences, the secondary axis on the right-hand side the numbers of IC admissions and deaths
Unlabelled: The three closely related COVID-19 outcomes of incidence, intensive care (IC) admission and death, are commonly modelled separately leading to biased estimation of the parameters and relatively poor forecasts. This paper presents a joint spatiotemporal model of the three outcomes based on weekly data that is used for risk prediction and identification of hotspots. The paper applies a pure spatiotemporal model consisting of structured and unstructured spatial and temporal effects and their interaction capturing the effects of the unobserved covariates. The pure spatiotemporal model limits the data requirements to the three outcomes and the population at risk per spatiotemporal unit. The empirical study for the 21 Swedish regions for the period 1 January 2020-4 May 2021 confirms that the joint model predictions outperform the separate model predictions. The fifteen-week-ahead spatiotemporal forecasts (5 May-11 August 2021) show a significant decline in the relative risk of COVID-19 incidence, IC admission, death and number of hotspots. Supplementary information: The online version contains supplementary material available at 10.1007/s00168-022-01191-1.
 
And Population Density and COVID-19 in 2020. Notes The horizontal axis represents the logarithm of the county’s population density. Top left panel vertical axis represents the logarithm of the accumulated number of fatalities per hundred thousand inhabitants by the 5th of July 2020. Top right panel vertical axis represents the logarithm of the accumulated number of fatalities per hundred thousand inhabitants by the 1st of December 2020. Bottom-left panel vertical axis represents the number of days between the 22nd of January and the first fatality in each county. Bottom-right panel vertical axis represents the logarithm of the number of dead 60 days after the 10th case was reported in the county. Black markers correspond to counties forming part of a CBSA. Fitted lines estimated via Ordinary Least Squares. Univariate R-squared included in all Figures alongside fitted line
OLS Accumulated COVID-19 Deaths-Density Elasticities over Time. Notes Both panels depict the cross-sectional relationship between the natural logarithms of accumulated deaths and population density for every monthly period ending in the 15th, from March through December 2020. Panel A: coefficients from univariate OLS regressions. Panel B: IV estimates obtained using both the geological and historical instruments for density. For each estimate, we report the 95% confidence interval based on standard errors clustered at the CBSA level
Changes in Mobility Relative to January Baseline (2020). Notes The figures plot the daily change and local regression curve (LOESS) over time in mobility relative to the January 2020 baseline for sparse counties and dense counties, with the split based on median weighted county density. The left panel refers to adjustment of workplace-related activity. The middle panel refers to leisure time activities including restaurants, cafes, shopping centers, theme parks, museums, libraries, and movie theaters. The right panel refers to transit including public transport hubs such as subway, bus, and train stations
This paper revisits the debate around the link between population density and the severity of COVID-19 spread in the USA. We do so by conducting an empirical analysis based on graphical evidence, regression analysis and instrumental variable strategies borrowed from the agglomeration literature. Studying the period between the start of the epidemic and the beginning of the vaccination campaign at the end of 2020, we find that the cross-sectional relationship between density and COVID-19 deaths changed as the year evolved. Initially, denser counties experienced more COVID-19 deaths. Yet, by December, the relationship between COVID deaths and urban density was completely flat. This is consistent with evidence indicating density affected the timing of the outbreak—with denser locations more likely to have an early outbreak—yet had no influence on time-adjusted COVID-19 cases and deaths. Using data from Google, Facebook, the US Census and other sources, we investigate potential mechanisms behind these findings.
 
PSTR with TFP growth calculated from residuals of estimating production functions accounting for public infrastructure
Panel smooth transition regression (PSTR) is applied to obtain thresholds in certain variables to classify the regions into regimes (high or low). Data for the regions of Spain over the period 1986–2010 are used. In general, the results point to a positive (negative) relationship between fiscal (administrative) decentralization and economic growth in regions with low public infrastructure stock per efficient worker and high human capital per worker. In addition, in regions with low (high) total factor productivity, expenditure (revenue) decentralization is positively (negatively) correlated with economic growth. The results are fairly robust to different specifications and estimation methods.
 
Estimates by mode of transport
This paper explores the mobility patterns of older adults in ten countries, with a focus on the differences produced by urban environments in their non-work trips. Using detailed time use diaries from the Multinational Time Use Study for the last two decades, we analyze the trips associated with leisure and housework of non-working older adults. The results show that older adults in urban areas spend more time in leisure trips than similar individuals in rural areas. On the other hand, male older adults in urban areas spend less time in housework trips than do their counterparts in rural areas. However, such correlations are found to differ by country, gender, type of trip, and mode of transport, revealing complex correlations between urban forms and older adults’ daily mobility. Furthermore, factors such as the number of railway kilometers, gross domestic product growth rates, and the percentage of urban population in the country seem to be associated with differences in the behavior of older adults in their non-work daily trips.
 
Evolution of employment over the period 1981–2011. Public employment is defined as the sum of employment in public administration, education, and health. Total employment is defined as the sum of employment in all industries of economic activity. Author’s elaborations on IPUMS data
This map shows the spatial distribution of the public employment contribution to total employment growth, and the Bartik-style instrument, across 156 Greek municipalities (average quintiles, 1981–2011). More intense green colours indicate higher growth rates between 1981 and 2011. Author’s elaborations on IPUMS data
Scatterplot of private employment against public employment with and without outliers. Author’s elaborations on IPUMS data
This figure plots the 90% confidence bands of public employment based on union of confidence intervals approach developed by Conley et al. (2012). The solid line corresponds to the benchmark 2SLS estimate reported in Table 2, Column 4
Evolution of public and private employment over the period 2011–2019. Author’s elaborations on GRLFS data
This paper studies the impact of the remarkable increase in the share of public employment on the private sector across 156 Greek municipalities using Census data (1981–2011). To capture causal effects, we implement an instrumental variables approach, based on a shift-share design. We find that an additional job in the public sector creates nearly 0.7 jobs in the non-tradable sector (construction and services), whilst no significant effects are detected for the tradable sector (manufacturing). The findings appear to be robust to different estimation strategies, spillovers from contiguous regions, and to the inclusion of confounding factors. Importantly, we document that the most recent decline in the number of public servants did not significantly affect the private sector.
 
Skill sorting in the two city equilibrium
Unlabelled: This paper studies amenities and wage premiums in a service economy where individuals with different skills choose cities with different amenities and choose occupations to produce different services, namely the high-quality service or the low-quality service. Workers with higher skills have stronger preferences for amenity and choose the high-amenity city. Within each city, workers with higher skills choose to produce the high-quality service, and workers with lower skills choose to produce the other. Workers with higher skills are willing to sacrifice more wages to live in the high-amenity city. As a result, the price of the high-quality service, relative to the price of the low-quality service, is lower in the high-amenity city, because the wage equals the price times skill or productivity. The wage of a worker with a given skill in the high-quality service sector, relative to the wage of a worker in the low-quality service sector, or the wage premium, is thus lower in the high-amenity city. A quantitative analysis shows that the wage premium is about 3% lower when amenity is 10% higher. However, the average wage of high-quality service workers over that of low-quality service workers may be lower or higher in the high-amenity city due to skill concentration in the high-amenity city. Supplementary information: The online version contains supplementary material available at 10.1007/s00168-022-01188-w.
 
Assessing the causal effect of city cultural supply on cultural consumption. Notes Each graph shows the 95% confidence interval (CI) estimates for the impact of the instrument on the four different dependent variables using the UCI and LTZ methods. Dependent variables for each column: (1) consumption of cultural goods; (2) performing arts: theater, modern dance and ballet, opera, classic music concerts, and circus; (3) movie theater; and (4) museum and arts displays. Only exogenous control variables are included in the models. The solid line is the CI with the UCI method. The dashed line is the CI with the LTZ method, by assuming γ\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$$\gamma$$\end{document} is normally distributed
While cultural economics and urban economics literatures have well established that more able individuals tend to prefer mostly cities with a high level of cultural amenities and schooling is one of the main individual determinants of the cultural consumption, there is no empirical evidence on whether cities specialized in culture boost cultural consumption of their residents. This research takes a step back compared to most studies and directly tests whether-controlling for individual characteristics the higher the city cultural supply, the higher the probability of consuming cultural goods. Using data for 2017 from Chile and an instrumental variable approach, the results suggest that cities' cultural employment shape workers' decisions to consume cultural goods. A positive impact of city cultural supply on cultural consumption is found for both aggregated and disaggregated cultural goods, a robust result even under weaker exclusion restrictions of the instrument.
 
Toyama’s compact city
Path diagram of the behavioral intention model to use PT *p < .05, **p < .01
There is a general consensus that transportation policies play a crucial role in establishing a compact city with high density, mixed land use, and well-coordinated transit systems that promote sustainability through mechanisms such as reducing car and energy use. However, the possible contributions of the compact city environment to the increase (or decrease) in public transportation use have been understudied. To fill this gap, the current case study examines psychological factors influencing citizens’ intention to use public transportation modes in the compact city environment in Toyama City, Japan. We focused on citizens’ perception, attitudes, and behaviors, as they play important roles in sustainable development initiatives. Survey questionnaires were used to collect data, and structural equation modeling was performed to analyze 973 respondents’ transportation mode choices. The theoretical foundations underlying this study include the norm-activation theory and the theory of planned behavior. The findings suggest that attitudes, perceived behavioral control, and behavioral norms served as significant factors to explain the intention to use public transportation modes. Consequently, we derived theoretical and practical implications to further promote transportation policies in the context of compact city strategies.
 
The DIGITAL ENTREPRENEURSHIP INDICATOR (DEI), which combines individual and institutional data, is designed to chart the vitality of metropolitan areas in terms of digital entrepreneurship on a suburban scale. In this study, we apply it to the case of the Greater Paris Metropolitan area. Using geographically weighted regression, we explore the spatial heterogeneity of the effect of digital entrepreneurial ecosystems on the location quotient of information and communication technology firms with fewer than 10 employees. The results highlight a positive link between the DEI and the location quotient of small ICT firms. In particular, the aspects of both ATTitudes and CAPacities (i.e., urbanization economies, Human Development Index, density of incubators, accounting and financial services, and fiber optic coverage) appear to have a significant effect on a suburban scale.
 
The special issue provides a stimulating set of results and theories on regional entrepreneurship and its fundamental role for growth and development. Although the spatial component is analyzed from different perspectives, all the papers highlight the importance of the regional differences in ensuring the appropriate design and implementation of policies aimed at unlocking the potential of regions through entrepreneurship and innovation.
 
The number of AI patent applications under the PCT over time
Histogram of the number of AI patent applications in European regions
The number of AI patent applications in European regions
The share of AI patent applications in European regions
The purpose of this study is to investigate how a regional knowledge base of information and communication technologies (ICTs) influences the emergence of artificial intelligence (AI) technologies in European regions. Relying on patent data and studying the knowledge production of AI technologies in 233 European regions in the period from 1994 to 2017, our study reveals three results. First, ICTs are a major knowledge source of AI technologies, and their importance has been increasing over time. Second, a regional knowledge base of ICTs is highly relevant for regions to engage in AI inventing. Third, the effects of a regional knowledge base of ICTs are stronger for regions that have recently caught up regarding AI inventing. Our findings suggest that ICTs play a critically enabling role for regions to diversify into AI technologies, especially for regions’ catching up in terms of AI inventing.
 
This article suggests a historical institutional approach using the concepts of paradigm and political action repertoires applied to the field of rural development in France. Seven repertoires have been identified. These are connected to their emergence into the political arena after WW2, and pertain to three successive paradigms: the modernization of sectors and rural society, support to economic and social cohesion and, lastly, the growing importance of environmental issues. In particular, two repertoires are reflected in the modernization paradigm: agricultural development and land-use planning. The paradigm promoting economic and social cohesion underpins two of these repertoires: territorial development and regional development. Lastly, the current strengthening of demands for ‘greener’ public policy has led to the coexistence of two repertoires: environmental management and agroecology.
 
The price trend for estate markets in eight capital cities
QQ regression results (x = IOP)
QQ regression results (x = IOP shocks)
This study concentrates on the dynamic response of housing markets to the changes in iron ore price by using the quantile-on-quantile regression method. Because iron ore production is highly geographically concentrated, we provide a more precise empirical analysis at the regional level. The results indicate that the iron ore price in most quantiles has a positive effect on the housing price in Perth because it benefits from the mining boom. However, once iron ore is exhausted, the real estate market will fail to drive the whole economy. The negative relationships between iron ore price in low quantiles and housing price are found in Adelaide and Hobart. In other regions, such as Sydney, Melbourne, Canberra and Darwin, housing prices are positively affected by iron ore prices in low quantiles and turn to negative in relative higher quantiles. This difference is attributed to resource endowment and labor mobility, as well as local policy orientation. Furthermore, the robustness test proves the credibility of the results when considering the endogeneity issue. The findings may deliver the reference that better management of real estate markets throughout a resource cycle, particularly in light of the mining industry with greater geopolitical shocks, could result in better socioeconomic outcomes for Australia.
 
Examples of neighbouring areas identified using concentric rings of 1, 2, 5 and 10 kms
Geographical distribution of entrant firms over the 2007–2014 period (panel A) and firms that carry out R&D activities (panel B)
Recent approaches to entrepreneurship seek to explain regional heterogeneity by exploring the link between knowledge endowment and new firm creation. There are two main gaps in this stream of research. First, entrepreneurship tends to be considered in terms of entry rates rather than in terms of job creation. Second, most empirical studies focus on relatively large geographical areas and overlook the distance at which knowledge externalities dissipate. The present paper exploits data on firms based in the Emilia-Romagna region (Italy) to show that private R&D spillovers are positively associated with the size at entry of innovative firms only for those located close to the R&D activities and that these spillovers dissipate at a few kilometres from the R&D source. Non-linearities are detected only for low-tech sectors.
 
Average laspeyres index values, 2010–2016
Kernel Distribution of Laspeyres Index Values for 2010, 2012, 2014, and 2016, Note: “layindexYEAR” indicates the Laspeyres index values in YEAR
Kernel Distributions of Change Rates in Laspeyres Index Values between 2010 and 2011, 2011 and 2012, 2012 and 2014, and 2014 and 2016. Notes: “laychangerateXXYY”   indicates a change rate of the Laspeyres index values from the year 20XX to 20YY. ppt = percentage point
Differences between a Municipality’s Own Laspeyres Index Values and those of Neighboring Municipalities’ within 60 km between 2014 and 2010. Note: ppt = percentage point
It remains unclear whether local jurisdictions consider their neighbors’ salary levels when making changes to their public sector salaries. Following the Great East Japan Earthquake and its aftermath, the Japanese central government introduced several policies aimed at reducing public sector salaries at the local government level, and local governments responded by reducing their employees’ salaries. This study empirically tests the existence of strategic interaction in relation to public sector salary setting among municipal governments in response to central government policies. Using a sample of Japanese municipalities from 2010 to 2016, we developed a spatial model that incorporates both spatial autoregressive disturbances and spatial dependencies. A quasi-experimental strategy was used to solve the endogeneity problem of the spatial lag-dependent variable. We found that changes in salary levels in Japanese municipalities are dependent on the salaries in neighboring municipalities. Several estimation methods were used and produced consistent results. Our study also suggested that yardstick competition could drive strategic interaction in relation to decision making regarding salaries. Moreover, when the central government’s top-down policy is effective, the strategic interactions in public salary settings among neighboring municipalities appear to be strong.
 
Forest cover in the Rherhaya watershed of the Moroccan High Atlas region, char- acterized by its critical natural conditions, faces strong human pressure, leading to the fragmentation of the landscape. To improve natural capital management, to sup- port stakeholders in their decision-making process and to sustain ecosystem services provided by the watershed, this work aims at developing a long-term vision of the local landscape. Land-use/land-cover change dynamics have been analyzed at 1984, 2000 and 2017 timestamps, and prospective modeling based on the Land Change Modeler (LCM) model has been used to develop a future vision of forest landscapes. LCM modeling approaches rely on two types of input maps: (1) maps of land cover at times before the calibration period and (2) maps of explanatory variables (that precludes land-use or land-cover change over time such as slope, altitude and acces- sibility: distance to roads or human settlement). The model is validated through the juxtaposition of the 2017 observed map and the predicted map for the same year using the trained model. The result shows an overall accuracy of 64.58 per cent. Based on the hypothesis of human pressures intensification in the future, the fore- casted land-cover map by 2040 has been derived as a result of the explanatory vari- ables. This prospective modeling, therefore, predicts by 2040 an expansion of build- ings that will be made at the expense of bare soil surfaces. Indeed, this expansion will be linked to population growth stemming mainly due to a strong migration of populations from neighboring regions in search of better living conditions.
 
Maps of local spatial autocorrelation. Map A: spatial dependence of towns (significant and insignificant). Map B: spatial dependence of towns (significant)
Future automation and artificial intelligence technologies are expected to have a major impact on labour markets. There is a lack of analysis which considers the sub-national geographical implications of automation risk posed to employment. In this paper, we identify the proportion of jobs at risk of automation across all Irish towns, using the occupational methodology of Frey and Osborne (2017) and compare these results with those of the task-based methodology of Nedelkoska and Quintini (2018). The job risk of automation varies significantly across towns, and while there is a substantial difference in the magnitude of risk identified by the occupational and task-based approaches, the correlation between them is approximately 95% in our analysis. The proportion of jobs at high risk (> 70% probability of automation) across towns using the occupational based methodology varies from a high of 58% to a low of 25%. In comparison, the proportion of jobs at high risk using the task-based methodology varies from 26 to 11%. Factors such as education levels, age demographics, urban size, and industry structure are important in explaining job risk across towns. Our results have significant implications for local and regional urban policy development in the Irish case.
 
Labor divergence between North and South has formed, and the high-speed rail (HSR) plays a key role in labor’s agglomeration in China. Regarding China’s HSR as a quasi-natural experiment, we construct a difference-in-difference (DID) model to explore the impact of HSR on the labor market of North and South China based on the panel data of 285 cities in China from 1998 to 2018. HSR significantly enhances labor quantity and relieves labor misallocation in South China, while has an insignificant effect on labor quality. It mainly improves the allocation efficiency of the labor market by the improved regional accessibility, which has obvious threshold effects on labor quantity at 2109.8 km from the northernmost part of China, respectively. Furthermore, Confucian culture (CC) weakens the impact of HSR on labor market especially for South China except strengthens that on northern labor quality. Therefore, the labor mobility between North and South China is the result of the combined effect of HSR’s thrust and CC’s pull, so policymakers should strengthen the construction of HSR network and increase the investment in southern education and northern public cultural construction to reduce barriers of labor mobility between North and South China.
 
Increase in the total number of intermunicipal groupings (PEICs) in France 1997–2008
This paper investigates whether the increasing cooperation between municipalities in the 2000s in France favored firm creation and what type of intermunicipal cooperation was more effective. Results first show that a higher share of municipalities involved in cooperation is a significant and positive driver of firm creation. Second, results indicate that to favor firm creation, intermunicipal governments must rely on business tax sharing. Our findings are in line with first and second-generation models of fiscal federalism. Indeed, the lower tax competition is probably key to make fiscal integration conducive to firm creation. And local governments are more likely to provide market-enhancing public goods when they face the relevant fiscal incentives. Finally, we suggest that the two goals of the 1999 law (increased cooperation between urban municipalities and business tax-based sharing) were effective in boosting firm creation in the 2000s.
 
Distribution of ESUS organizations across cities in 2017
Social entrepreneurship research remains largely conceptual and qualitative, which makes the comparisons with profit-seeking entrepreneurship difficult. This paper is an attempt to fill in this empirical divide. As such, we perform a statistical study of the characteristics of the social entrepreneurial city. Using a nationwide dataset on social venturing at the city level in France, and given the scarcity of labeled social ventures in the country, we define a social entrepreneurial city as one that count at least one of such firms. Our statistical analysis reveals that the social entrepreneurial city shares many common points with the entrepreneurial city: it is a large city, and with a diversified economy. There are also some major differences, as we find that social entrepreneurship emerges in places lacking of creative arts and entertainment options, and where the activity rate is low.
 
Regional science has, in its great history since the 1950s, made a decisive contribution to a better scientific understanding of spatial development issues and dynamics and to a more effective implementation of knowledge-based regional policy in many countries of the world, in both developed and developing nations on our planet. This special issue of the annals of regional science, titled “Spotlight on the Region”, celebrates the scholarly importance and impact of the late Roger Stough on regional science. The issue is comprised of fourteen self-standing on regional and urban development and highlights the critical importance of regional and urban dimensions in sustainable development. They confirm once more the seminal significance of the contributions of one of the great giants in regional science, Roger Stough.
 
Baseline, control, and individual models
continued)
Patriotism-as an ambivalent attitude towards the nation-has less exclusionary characteristics than nationalism and regional identification, because it does not require comparisons and hierarchies. What is less clear, however, is how to explain the positive evaluation of patriotism in the wider population. The article analyses the positive relationship of patriotism with nationalism and regional identification in 29 national and 421 regional contexts. The paper clearly shows that different factors explain the positive evaluation of patriotism and the mind-set of patriotism itself. While a nationalist attitude and regional identification at the individual level are strongly associated with a positive evaluation of patriotism and patriotism itself, institutionalised forms of regional autonomy are shown to be insignificant for the evaluation of patriotism and ambivalent for patriotism itself at the context level. The article concludes by discussing these results in the context of a Janus-faced nature of regional identification that can contribute to an inclusive society as much as to a nationalist-chauvinist attitude and which has so far been overlooked in regional science. Supplementary information: The online version contains supplementary material available at 10.1007/s00168-022-01167-1.
 
The profit rate in Spain (1965–2013). Hodrick–Prescott filter (Lambda 72). Source: Own elaboration with BdMores data
Different modalities of regional resilience based on the behavior of πK\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$${\pi }_{K}$$\end{document} and q\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$$q$$\end{document}
Resilient regions during the Great Recession
Sectorial specialization. Regions specialized only in manufacturing (purple color) and regions specialized both in manufacturing and construction (orange color)
We rank the economic resilience capacity of the 17 Spanish regions by observing the evolution of the components of the rate of profit. To this aim, we analyze the differential evolution of the two components of the profit rate: (i) the productivity of capital and (ii) the gross operating surplus share on national income. The first component rests on the dynamics of aggregate demand and technical efficiency, while the second one informs on the dynamics of income distribution. We consider that the dynamics of these two variables are relevant to rank the economic resilience capacity of the Spanish regions.
 
We developed a spatial computable general equilibrium model of South Korea to assess the spatial spillover effects of the COVID-19 pandemic on South Korea’s regional economic growth patterns. The model measures a wide range of economic losses, including human health costs at the city and county level, through an analysis of regional producers’ profit maximization on the supply side and regional households’ utility maximization on the demand side. The model’s findings showed that if the level of spatial interaction decreases by 10% as a result of social distancing policies, the national gross domestic product drops by 0.815–0.864%. This loss in economic growth can be further decomposed into 0.729% loss in agglomeration effect, 0.080–0.130% loss in health effect associated with medical treatment and premature mortality, and 0.005% loss in labor effect. The results of the models and simulations shed light on not only the epidemiological effects of social distancing interventions, but also their resultant economic consequences. This ex-ante evaluation of social distancing measures’ effects can serve as a guide for future policy decisions made at both the national and regional level, providing policymakers with the tools for tailored solutions that address both regional economic circumstances and the spatial distribution of COVID-19 cases.
 
Co-movement in different regional housing markets has implications for portfolio management, as well as the effectiveness of monetary and other policies. Such co-movement has thus been the subject of several previous studies. Research on regional house price cohesion has tended to focus either on long-run convergence to a common level or on business cycle synchronization. While the extent of both types of relationships is important, research on national housing, credit and equities has established the salience of co-movement at the intermediate frequency, or of medium cycles. Indeed, at the national level, medium cycles in housing and credit together have been shown to characterize the financial cycle. Research on the UK has found that regional house price co-movement is different at business versus medium cycle frequencies. In this paper, we examine co-movement of house prices across the regions of the USA. We compare co-movement at the business and medium cycle frequencies. We find that medium cycles are more volatile than short-term fluctuations, making medium-term movements more important for housing. Moreover, house price synchronization across regions is for the most part greater at the medium than the short-term frequency. There did appear to be an increase in co-movement around the time of the early 1990s recession, although this was not sustained for all regions or all frequencies. Lastly, while short-term synchronization has been declining among the regions of the US housing market, medium co-movement appears to be rising over the last several decades.
 
Clusters facing a crisis could have devastating effects on the economic conditions of the regions. Therefore, it is important to study how resilience works in the lives of clusters. The purpose of the current study is to more quantitatively understand the life path of the growth and decline of industrial clusters by verifying actual patterns. Also, it is to explain why these patterns were formed by qualitatively analyzing the process of utilizing resilience. The main contribution to the field of the lifecycle of clusters would be proving the theoretical concepts with data of the entire official industrial clusters in South Korea for 2 decades. Although previous works have attempted to define life paths by classifying the groups, most of their cases only dealt with one or two cases, making it difficult to generalize to a theory that can explain all types of clusters. This research used South Korean data as representative data for classification by analyzing the 1375 industrial clusters for 20 years. The trend of their life paths was calculated using a classic time-series decomposition method, and dynamic time series warping was adopted to measure the similarity between the paths. The k-medoids method from an unsupervised machine learning technique was adopted to classify the data. They were classified into three types: Malmo-type, Silicon Valley-type, and Detroit-type. The same classification method can be applied to other countries. Through this classification, the necessary or weak determinants of resilience in their clusters can be found. By making up for these shortcomings, continuous growth can be achieved.
 
We examine the trajectory of regional income dynamics in Colombia. Using data on all 33 Colombian departments from 2000 to 2016, we employ extensions of (spatial) Markov chains, space-time mobility measures, along with a fully weighted version of the distribution analysis approach. By considering these extensions, our analysis enables us to answer questions such as whether the role of spatial context influences the distributional dynamics of Colombian departments, or the magnitude of the moderating effect of department’s population. The inclusion of additional measures such as the asymptotic half-life of convergence provides additional results, informing on how long it would take to reach the hypothetical long-run distribution of per capita income. Results, which are reported for both pre- and post-2008 trends, complement previous literature on regional economic convergence in a relevant South American context, showing stronger convergence patterns when controlling for the population living in each department. The patterns do not particularly intensify when controlling for spatial spillovers, since the role of spatial context was already playing a relevant role from the beginning of the period analyzed. Therefore, although the ergodic distributions show a conditional-convergence pattern, addressing the problems of spatial exclusion fully, persistent polarization among geographical departments and populations, along with the relevant core-periphery gaps, still requires the design and implementation of specific policies.
 
This paper studies regional income convergence and its conditioning factors across 81 provinces of Turkey over the 2007–2019 period. Through the lens of a nonlinear dynamic factor model, we first test the hypothesis that all provinces would eventually converge to a common long-run equilibrium. We reject this hypothesis and find that the provincial dynamics of income per capita are characterized by 6 convergence clubs. Next, we evaluate the conditioning factors behind club formation. Our results suggest that spatial dependence across provinces plays an essential role in the formation of convergence clubs. The spatial distribution of the convergence clubs has a clear spatial pattern, and the dynamics of the provincial income distribution are spatially integrated. We also find that geographical neighbors are more important for middle and high-income provinces. Finally, we show that the performance of geographical neighbors affects the probability of club membership through spillovers in capital accumulation and structural change.
 
This study examines population losses for 13 major central cities in the manufacturing belt of the USA over the period 1950 to 2020. The percentage change in the population of in a central city is related to population change at the metropolitan level. The main finding is that the propensity of the central cities to lose population declined after the disastrous 1970s. Data for the most recent decade (2010–2020) suggest that some of these central cities may not lose population at all, even if the population growth of the metropolitan area is small. Understanding this apparent change in the pattern of population change in urban areas is a major challenge for researchers.
 
Equilibrium in the monopoly setting
Equilibrium in the duopoly setting
Comparative statics w.r.t. γ\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$$\gamma$$\end{document} in the duopoly setting with multi-homing riders
Comparative statics w.r.t. δ\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$$\delta$$\end{document} in the duopoly setting with multi-homing drivers
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Platforms such as Uber, Lyft and Airbnb serve two-sided markets with drivers (property owners) on one side and riders (renters) on the other side. Some agents join multiple platforms (multi-home). In the case of ride-sharing, a driver may drive for both Uber and Lyft, and a rider may use both apps and request a ride from the company that has a driver close by. In this paper, we are interested in welfare implications of multi-homing in such a market. Our model abstracts away from entry/exit by drivers and riders as well as pricing by platforms. Both drivers’ and riders’ surpluses are determined by the average time between a request and the actual pickup. The benchmark setting is a monopoly platform and the direct comparison is a single-homing duopoly. The former is more efficient since it has a thicker market. Next, we consider multi-homing on the rider side, multi-homing on the driver side, and multi-homing on both sides. Relative to single-homing duopoly, we find that multi-homing on either side improves the overall welfare. However, multi-homing drivers potentially benefit themselves at the cost of single-homing drivers. In contrast, multi-homing riders benefit themselves as well as single-homing riders, representing a more equitable distribution of gains from multi-homing.
 
In many microeconometric studies distance from a relevant point of interest (such as a hospital) is often used as a predictor in a regression framework. Confidentiality rules, often, require to geo-mask spatial micro-data, reducing the quality of such relevant information and distorting inference on models’ parameters. This paper extends previous literature, extending the classical results on the measurement error in a linear regression model to the case of hospital choice, showing that in a discrete choice model the higher is the distortion produced by the geo-masking, the higher will be the downward bias in absolute value toward zero of the coefficient associated to the distance in the models. Monte Carlo simulations allow us to provide evidence of theoretical hypothesis. Results can be used by the data producers to choose the optimal value of the parameters of geo-masking preserving confidentiality, not destroying the statistical information.
 
Long-distance commuting (LDC) as a strategy of labor factor mobility has become relevant in recent decades, mainly in those economies characterized by a signifcant relative weight of extractive activities. The phenomenon is key to understanding the current structure and dynamics of these labor markets, although little is known about self-selection in LDC. This document addresses this knowledge gap by analyzing the case of Chile using functional areas. Chile is a country where LDC has become the principal strategy of labor mobility and is closely linked to the mining and construction sectors. The results obtained show a pattern of negative selfselection, meaning that it is the least qualifed who have the highest probability of commuting between functional areas. Commuting could therefore be more than just a mechanism for accessing qualifed labor, allowing less qualifed individuals access job opportunities when the labor market where they come from is more qualifed.
 
The four types of areas in the Loire-Atlantique Département, according to the simplified INSEE definitions.
Source: Authors
First derivatives of the fitted generalized additive model (GAM) function, modeling the relationship between the distance to the nearest commuter rail station and plot prices.
Source: Authors
Map of MGWR coefficients representing the spatially varying relationships between plot prices (log-transformed) and the distance to the nearest commuter rail station, adjusted for the covariates. Note: multiple R-squared = 0.6827; adjusted R-squared = 0.6433. The 55 commuter rail stations appear in red (color figure online).
Source: Authors
As an alternative to private car, rail accessibility is part of environmental policies. The effects of light or heavy rail have been widely covered by the literature in urban areas. High-speed rail accessibility has been extensively studied at national or regional scales as well. In-between, only few studies have considered commuter rail accessibility at the scale of metropolitan areas. However, more and more households in Europe have been settling in peri-urban or remote areas around large conurbations, driven by the significant increase in residential land values since 2000. In this article we aimed to uncover, through hedonic pricing, the effect of commuter rail accessibility in the formation of residential land values in the Loire-Atlantique Département in France (around the conurbation of Nantes Métropole). We used at first an Ordinary Least Square model (OLS). Since nonlinear relationship between proximity to public transport and land values is commonly assumed, we previously applied a generalized additive model (GAM) that revealed threshold effects. To explore spatial heterogeneity in the relationship between commuter rail accessibility and residential land values, we used subsequently a Multiscale Geographically Weighted Regression model (MGWR). We found sound evidence of commuter rail accessibility effect in two specific areas: in the peri-urban area of Nantes Métropole, North of the conurbation, and in a remote area, in the Western part of the Département. The emphasis of commuter rail accessibility should help decision-makers to convert rail stations into multimodal exchange poles to contain the modal share of private car in peri-urban and remote areas.
 
House prices in China have increased greatly in recent decades, and the dynamics seem to vary across cities. It is rational to assume that urban housing prices converge to different equilibria and form club convergence (i.e., subgroups). Empirical evidence on the existence of club convergence is limited, however, as is evidence on the underlying mechanisms. Therefore, the aim of the present study was to 1) detect club convergence in housing prices across Chinese regions over the period 2006–17 and 2) examine the determinants influencing club formation. A log t test in combination with a clustering algorithm was used to assess club formation. The results showed that regional housing prices face heterogeneous dynamics, providing some evidence of housing market segmentation. Four convergence clubs of Chinese regions with different convergence levels were identified. Ordered logit model showed that population growth, income, and housing regulation are among the drivers of club formation. The results also indicated that being in a different Chinese city-tier and differences in urban healthcare affect housing market club membership. The findings are supportive for policymakers to coordinate balanced regional housing development across China.
 
Households that experience persistent poverty fall behind economically and can be caught in a poverty trap, especially in the presence of shocks capable of shifting their level of assets. However, empirical evidence can be instrumental in the design of policies and measures that would allow households an opportunity to escape. Using household level panel data from 2007 to 2010 and the 2007 magnitude 8.0 earthquake in Pisco, Peru, as an exogenous shock, we construct an asset index of two dimensions in order to explore household sensibility to shocks and to assess the existence of poverty traps. Our results reveal that a shock in assets is associated with an increase in both housing materiality and water/sanitation asset stocks and can be explained by access to mitigating factors such as aid, labour and finance. Furthermore, our findings indicate the existence of multiple equilibria, which is consistent with the poverty trap hypothesis. The existence of poverty traps in Peru has real implications for fighting poverty, in that without the adequate assistance, it cannot be eradicated.
 
Carbon monoxide emissions (2011)
Particulate matter (2011)
Gini Index (2011)
Share of top/bottom quintile (2011)
Median household income (2011)
This study re-examines the relationship between income inequality and emission in US counties, incorporating multiple measures for pollution and income inequality. The initial results show that a nonlinear relationship exists between emissions and income. Effects estimates from the spatial Durbin model show that inequality has no significant impact on SO2 emissions although a concave relationship exists between income, SO2, and CO emissions. Increased income inequality reduces CO, PM2.5, and NOx emissions for two of the three measures of inequality. The cubic term for income in the PM 2.5 specification reveals that pollution eventually increases as income rises. Our results indicate that income inequality reduces air pollution emissions for localized pollutants but has no impact of pollutants that are more geographically dispersed.
 
Productivity index for IKEA entry municipalities and their synthetic control units, 2001–2012
a and b Placebo results for the IKEA entry into Haparanda; the left panel shows productivity gaps in Haparanda and placebo gaps in all 21 control municipalities; the right panel shows the MSPE ranking of all 21 units in the donor pool for Haparanda
Bootstrap intervals for the effect of IKEA entry into Haparanda; the left panel is the nonparametric and the right panel the parametric model
Bootstrap intervals for the effect of IKEA entry into Kalmar, Karlstad and Gothenburg; left panel is the nonparametric and the right panel the parametric model
Using data from 2001–2012, the effects of IKEA entry in four Swedish municipalities, 2004–2007, on labor productivity in durable goods retailing is investigated using synthetic control methods. We contribute to the literature on synthetic control methods by considering parametric specifications of the intervention effect, which improves the likelihood of identifying the effect of IKEA entry on labor productivity. Our results indicate that in three out of four entry municipalities, labor productivity increased more than in their synthetic counterparts after IKEA entry, and that larger positive effects are found in rural municipalities where the new IKEA was large relative to the existing durable goods retail market.
 
This paper presents a simulation exercise undertaken with a newly available regional general equilibrium model for the Spanish region of Andalusia. The exercise is intended to assess the structural adjustment processes and impacts on the Andalusian economy directly induced by the dramatic fall in tourism expenditure which occurred in the year 2020, due to the prevention measures implemented because of the COVID-19 pandemic. We also undertake a preliminary evaluation of the impact on some environmental indicators, such as greenhouse gases emissions and air pollutants. The key insight emerging from our analysis is that the COVID crumbling of tourism demand reduces the environmental pressure but also generates very relevant distributional consequences. We believe that these insights are not peculiar to Andalusia but could be extended to many other regions in the world, especially those similar in terms of magnitude of the shock, economic structure, and labor market. We illustrate the latter point by contrasting Andalusia with a set of South-East Asian countries.
 
Because of their reliance on large samples of micro-level housing and wage data, quality of life studies using Rosen–Roback models have focused almost exclusively on metropolitan areas, largely ignoring non-metropolitan areas. Although understandable given data constraints, this dominant focus on metropolitans has limited the data-driven approaches available to policymakers concerned with community and economic development in small cities, or micropolitan areas. To address this gap, we develop an aggregate approach to estimate both quality of life and quality of the business environment in micropolitan areas utilizing county-level housing and wage data that can be used when large samples of micro-level data are unavailable. Specifically, we use the county residuals from wage and housing regressions to replace the fixed effects typically estimated from the micro-level estimations in quality of life studies. We find compelling evidence that higher quality of life is not only associated with higher employment and population growth and lower poverty rates, but that it is more important than quality of the business environment in determining the success of micropolitan areas.
 
Conceptual framework of the perception-based averting behaviour model (PABM). Notes: (1) Expected signs within brackets. (2) Variables in italics are latent variables. The indicators of the latent variables are not presented
Distribution of the indicators of Perceived health risk (PHR). Note: PHR1: What is the average number of days per week during the past year you perceived the air in Jinchuan to be polluted? PHR2: In my perception, Jinchuan’s air pollution increases the possibility of suffering from respiratory illnesses. PHR3: In my perception, Jinchuan’s air pollution increases the possibility of suffering from cardiovascular illnesses. PHR4: In my perception, Jinchuan’s air pollution increases the possibility of suffering from lung cancer. PHR5: In my perception, Jinchuan’s air pollution increases the possibility of suffering from untimely death
Distribution of the indicators of environmental knowledge (EK). Note: EK1: Do you acknowledge that Jinchuan suffers from air pollution? EK2: Do you acknowledge that Jinchuan suffers from industrial solid waste? EK3: Do you acknowledge that Jinchuan suffers from water pollution? EK4: Do you acknowledge that environmental issues in Jinchuan are mainly caused by local industrial activities? EK5: Do you acknowledge that sulfur dioxide is one of the main air pollutants in Jinchuan? EK6: Do you acknowledge that suspended particle matter is one of the main air pollutants in Jinchuan? EK7: Do you acknowledge that carbon dioxide is one of the main air pollutants in Jinchuan? EK8: Do you acknowledge that chlorine gas is one of the main air pollutants in Jinchuan?
Heavily, moderately and lightly polluted areas of the Jinchuan mining area. Note: the dominant wind directions are from the east and south-east during summer and from the west and north-west during winter. Source: JEQMR (2011), Wei (2008) and Li et al. (2014)
This paper presents a simultaneous equation, knowledge and perception-based averting behavior model of health risk caused by air pollution, with application to the Jinchuan mining area, China. Three types of averting behavior are distinguished: (a) purchases of purifying equipment, plants, or masks; (b) purchases of preventive or curing medication or food; and (c) adjustment of daily outdoor activities. Two types of perceived health risk are distinguished: (a) risk due to the intensity of exposure and (b) risk caused by the hazardousness of pollutants. The estimations show that an increase in perceived air pollution of two or more days a week leads to a restriction of outdoor activities of approximately 90 min per person per week. Another result is that the average annual household expenditure on air filters, foods, or medicines is 206.25 CNY (US$ 31.73) to prevent the hazardousness of air pollution. The total willingness to pay for air quality improvement is 2.95% of annual net household income. Because air quality improving investments can only be implemented in the medium or long run, daily disclosure of air quality is an adequate short-run policy handle to assist residents to take the right kind and level of risk-reducing actions.
 
Top-cited authors
Peter H Verburg
  • Vrije Universiteit Amsterdam
Manfred M. Fischer
  • Wirtschaftsuniversität Wien
Eric Koomen
  • Vrije Universiteit Amsterdam
Ton de Nijs
  • National Institute for Public Health and the Environment (RIVM)
Zengqiang Duan
  • China Agricultural University