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Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper estimates the impact of public investment on regional economic growth and convergence at the NUTS 3 level in Greece. Using a new database of public expenditure per region for the period 1978-2007, it proposes a model which captures not just the impact of public investment in Greek prefectures, but also the spillover effects related to the existence of externalities from neighbouring regions. The results point to a positive long-run impact of public investment per capita on regional economic growth - but not on convergence - which also generates considerable spillover effects. However, the returns vary according to different types of public investment, with education and infrastructure spillovers having the highest impact. In general, public investment externalities seem to be more relevant for regional growth than direct public investment in each region. Finally, the impact of different types of public investment in Greece is mediated by politics and political factors, but the effect of politics disappears once we control for political-period-specific spatial-invariant variables. Resumen Este artículo estima el impacto de la inversión pública en el crecimiento económico regional y la convergencia a nivel NUTS 3 en Grecia. Haciendo uso de una nueva base de datos de gasto público por región para el periodo 1978-2007, se propone un modelo que identifica no solamente el impacto de la inversión pública en las prefecturas griegas, sino también los efectos de spillover relacionados con la existencia de externalidades procedentes de regiones vecinas. Los resultados apuntan a un impacto positivo a largo plazo de la inversión pública per cápita en el crecimiento económico regional - pero no en la convergencia - el cual genera unos efectos de spillover considerables. Sin embargo, los retornos varían de acuerdo con los diferentes tipos de inversión pública, siendo la educación y los spillovers de infraestructura los de mayor impacto. En general, las externalidades de inversión pública parecen tener una mayor relevancia para el crecimiento regional que la inversión pública directa en cada región. Para terminar, el impacto de los diferentes tipos de inversión pública en Grecia se ve influido por sus políticas y otros factores políticos, pero el efecto de las políticas desaparece una vez que se controlan las variables espacialmente-invariantes de tipo político ligadas a un periodo específico. [ABSTRACT FROM AUTHOR]

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper seeks to understand how the determinants of economic growth in Brazil may manifest themselves differently on various spatial scales between 1991 and 2000. Analysing this issue sheds light on the modifiable areal unit problem (a measurement issue). In addition, it also suggests potential explanations for the origin of this variability. This latter issue relates to the scale-dependent determinants of economic growth (a structural issue). The analysis reveals that the results change as the scale level changes and suggests a general framework for dealing with multiple spatial scales and model uncertainty. Moreover, the extent of the effects of spatial externalities and the issue of spatial heterogeneity are investigated. Resumen El objetivo de este artículo es entender como los factores determinantes del crecimiento económico de Brasil pueden mostrarse de manera diferente según la escala espacial entre 1991 y 2000. El análisis de este tema ilustra el problema de la unidad de superficie modificable (problema de medición). Además, sugiere también posibles explicaciones para el origen de esta variabilidad. Este último asunto esta relacionado con los factores dependientes de la escala que determinan el crecimiento económico (un problema estructural). El análisis revela que los resultados cambian a medida que lo hace la escala y sugiere un marco general para tratar con escalas espaciales múltiples y modelización de incertidumbre. Además, se investiga el alcance de los efectos de las externalidades espaciales y el problema de la heterogeneidad espacial. [ABSTRACT FROM AUTHOR]

The aim of this paper is to test the way in which geographical proximity and technological relatedness relate to an industry's innovative output. Two mechanisms are therefore tested, namely, urbanization economies and the regional exploitation of technological relatedness. A new dataset is applied, which includes German patent applications from within the period 1995 to 2006. Four industries are considered, two of which are science-based, whereas the remaining two are specialized supplier industries. While diversity is associated with high innovative output in the specialized supplier industries, the same does not hold for science-based industries. However, both kinds of industries seem to benefit from recombinant innovation. [ABSTRACT FROM AUTHOR]

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper aims to correct standard measures of agglomeration economies to account for air pollution. This paper examines the impact of nitrogen oxide (NOX) a pollutant mainly released by transportation on worker productivity. Literature on agglomeration economies highlights the positive role of employment density on productivity, without accounting for the negative impacts of local pollutants. First, standard estimates of agglomeration economies for the 304 French employment areas are in line with the literature. Then, we introduce the variable (NOX) emissions and, once pollution is accounted for, the estimated direct impact of agglomeration externalities on productivity are lower by more than 13 per cent. [ABSTRACT FROM AUTHOR]

The economic growth literature suggests that knowledge spillovers are subject to distance decay effects. In this paper the main aim is to provide a theoretical framework and empirical evidence on the role played by other kinds of proximities, namely relational, social and technological proximity, in explaining productivity growth. Using a sample of 249 EU 27 NUTS 2 regions in the period 1990-2004, semiparametric spatial autoregressive models are estimated. Results provide evidence of a positive role of social and relational proximities as important channels of knowledge spillovers, and on the fact that, when simultaneously present, different kinds of proximities generate synergic effects on growth. Resumen La literatura sobre el crecimiento económico sugiere que los spillovers de conocimiento están sujetos a efectos de deterioro por distancia. El objetivo principal de este artículo es proporcionar un marco teórico y pruebas empíricas sobre el papel desempeñado por otros tipos de proximidades (relacional, social y tecnológica), a la hora de explicar el crecimiento de la productividad. Utilizando una muestra de 249 regiones NUTS 2 de la UE 27 para el período 1990-2004, se estiman modelos autorregresivos espaciales semiparamétricos. Los resultados aportan pruebas del papel positivo de las proximidades sociales y relacionales como canales importantes de spillovers de conocimientos, y del hecho de que, cuando se presentan simultáneamente, los diferentes tipos de proximidades generan efectos sinérgicos sobre el crecimiento. [ABSTRACT FROM AUTHOR]

In this paper we contribute to the empirical literature on the size of network effects of public infrastructures. A novel approach is introduced to this purpose. Moving from estimates of the common dynamics shared by the regional public capital stock series, identification of co-ordinated policy shocks is obtained within a properly specified structural vector error correction model. Our empirical findings confirm previous evidence that transport infrastructures exert positive effects in the long run. At the same time, we find evidence that this influence is mostly attributable to the impact of co-ordinated public policy shocks, as predicted by the literature on network externalities. Resumen En este artículo contribuimos a la literatura empírica sobre el tamaño de los efectos de red de infraestructuras públicas. Para este propósito se presenta un enfoque novedoso. A partir de estimaciones de las dinámicas comunes compartidas por series de reservas de capital público regional, la identificación de perturbaciones políticas se realiza dentro de un modelo de corrección del error vectorial estructural debidamente especificado. Nuestros descubrimientos empíricos confirman indicios anteriores de que las infraestructuras de transporte ejercen efectos positivos a largo plazo. A la vez, hallamos pruebas de que esta influencia es atribuible principalmente al impacto de perturbaciones en las políticas públicas coordinadas, tal y como predice la literatura sobre externalidades de red. [ABSTRACT FROM AUTHOR]

Many regions face through-traffic that causes local negative externalities. Regions might respond by imposing user charges or investing in bypass transport infrastructure. In this paper two levels of decision-making are studied: co-operation among regions and acceptability within regions. If left to a single region, it will overcharge for usage and under-invest in bypass capacity. Through interregional co-operation, an efficient outcome can be reached. Without compensation within each region, intraregional acceptability constraints protecting certain interest groups can lead to inefficient tolling. This can explain political preferences for tolling bypasses and not city centre roads. Resumen Muchas regiones soportan tráfico de paso que causa externalidades negativas locales. Las regiones podrían responder imponiendo cargas a los usuarios o invirtiendo en infraestructura de transporte de circunvalación. En este artículo se estudian dos niveles de toma de decisiones: la cooperación entre regiones y la aceptabilidad dentro de las regiones. Si la decisión se deja a una única región, ésta gravará en exceso por el uso e invertirá de manera insuficiente en la capacidad de circunvalación. Mediante la cooperación interregional se puede alcanzar un resultado eficiente. Sin un mecanismo de compensación dentro de cada región, las restricciones de aceptabilidad intrarregional que protegen a ciertos grupos de interés pueden llevar a peajes ineficientes. Esto puede explicar las preferencias políticas en cuanto a gravar con peajes las carreteras de circunvalación y no las de los centros de las ciudades. [ABSTRACT FROM AUTHOR]

This paper explores how external economies influence the survival of new, independent business establishments in the continental United States using a confidential, establishment-level dataset on new firm longevity. Industrial localization has a positive influence on new businesses survival in five of the eight industries examined. Regional industrial diversity is also beneficial to new firms in five study industries, particularly those that are more knowledge-intensive. The benefits of city size are limited to two study industries, with diseconomies of size found for an additional three. Resumen Este artículo explora cómo influyen las economías externas en la supervivencia de nuevos establecimientos comerciales independientes en la parte continental de los EE.UU. y utiliza la longevidad de nuevas empresas incluida en un conjunto de datos confidencial a escala de establecimiento. La localización industrial tiene una influencia positiva en la supervivencia de nuevos negocios en cinco de los ocho sectores examinados. La diversidad industrial regional es también beneficiosa para las nuevas empresas de cinco de los sectores de estudio, en particular en los que dependen más del conocimiento. Los beneficios del tamaño de la ciudad están limitados a dos de los sectores estudiados, y se encontraron deseconomías de escala para tres sectores. [ABSTRACT FROM AUTHOR]

This paper investigates the role of the regional context with regard to the influence of human capital and knowledge spillovers on SMEs' financial soundness. Our empirical setting is based on a multilevel analysis of panel data, which allows superior treatment of hierarchical data. The analysis is applied to SMEs belonging to the manufacturing sector and operating in four European countries over the period 2010–2015. We find that a combination of individual and regional‐level characteristics explains firm soundness better than individual features alone. Furthermore, we find that a high local educational level and knowledge spillovers improve firm soundness and that their effects vary according to the regional level of knowledge. These results are confirmed by several robustness tests. [ABSTRACT FROM AUTHOR]

Recent theories of regional growth and local development emphasise the roles of agglomeration and knowledge as the main determinants of growth, whereas the theories of the networks of cities remark that growth is a process not only within cities but also between cities. The objective of this paper is to measure the factors that affect the evolution of different intensities of knowledge in a region's cities. An adaptation of the OECD knowledge classification is used to divide the industries by knowledge intensity and to model the determinants of these intensities in a spatial context. Results suggest that higher growth rates are associated with higher levels of technology and knowledge. The growth of the different kinds of knowledge is related to local and spatial factors (agglomeration and network externalities) and each knowledge intensity show a particular response to these factors. Algunas teorías recientes de crecimiento regional y desarrollo local enfatizan el papel de la aglomeración y el conocimiento como los principales determinantes del crecimiento, mientras que las teorías de redes urbanas hacen hincapié en que el crecimiento no es solamente un proceso que sucede en las ciudades, sino también entre ellas. El objetivo de este artículo es medir los factores que afectan la evolución de diferentes intensidades de conocimiento en las ciudades de una región. Se ha empleado una adaptación de la clasificación de conocimiento de la OCDE para agrupar las industrias según su intensidad de conocimiento y para elaborar un modelo de los factores determinantes de estas intensidades en un contexto espacial. Los resultados sugieren que las tasas de crecimiento más elevadas están asociadas con niveles más elevados de tecnología y conocimiento. El crecimiento de los diferentes tipos de conocimiento esta relacionado con factores locales y espaciales (externalidades de aglomeración y red) y cada intensidad de conocimiento muestra una respuesta en particular a estos factores. [ABSTRACT FROM AUTHOR]

The paper analyses the impact of economic integration on individual inequality and regional disparity in a model of endogenous growth and geography. Assuming localised learning externalities and perfect mobility of capital, trade integration of economies yields a trade-off for the policy maker because it increases growth and decreases inequality on the one hand, but geographical agglomeration strengthens on the other. However, a policy that aims to improve trade in ideas does not face this trade-off. El artículo analiza el impacto de la integración económica en la inecualidad individual y la disparidad regional en un modelo de crecimiento endógeno y geografía. Asumiendo externalidades de aprendizaje localizadas y una perfecta movilidad de capitales, la integración de comercio de economías crea un trade-off para el formulador de políticas porque por un lado aumenta el crecimiento y disminuye la inecualidad, pero por otro aumenta la aglomeración geográfica. Sin embargo, una política que trate de mejorar un intercambio de ideas no se enfrenta a este trade-off. [ABSTRACT FROM AUTHOR]

This paper analyses the impact of economic externalities on the local growth emphasizing the industrial, geographic, and temporal scope of agglomeration economies. Thus, we estimated a spatial dynamic panel model using GMM associated with the use of data at different levels of sectoral aggregation. Estimation takes into account the endogeneity of agglomeration economies. Our database consists of 558 Brazilian regions for 1995–2015. The main results suggest that while externalities act in a local dimension they also have a regional scale. These externalities are determined by their temporal trajectory. The effects of agglomeration economies on local growth are sensitive to the choice of sectoral aggregation. Local growth exhibits positive specialization effects and negative diversity effects. However, greater industrial diversity of neighbouring regions has a positive impact on local growth. [ABSTRACT FROM AUTHOR]

This paper analyses the differential impact of several territorial determinants of the economic performance of Italian provinces (NUTS 3 level). as measured by per capita GDP, export and employment growth from 1999 to 2014. It covers both the pre‐crisis and the crisis period and stresses the role of geographical proximity in shaping local performance over a wide set of explanatory variables. In order to do so, we employ, firstly, a spatial Durbin model which enables us to discriminate between direct and indirect effects and to highlight the possible contagion or crowding‐out spatial effects for each territorial dimension affecting growth. Then, we extend the analysis by allowing for the possibility of two regimes (pre‐crisis and post‐crisis). The performance of the provinces before and during the crisis relates to specific territorial components and geographic proximity appears to influence differently the results and their interpretation. [ABSTRACT FROM AUTHOR]

In this paper, a flash flood that occurred in the Brazilian state of Santa Catarina in 2008 is used to investigate the existence of spatial spillovers from natural disasters in geographically‐linked areas. In order to do so, we estimated a Difference‐in‐Differences model that explicitly allows for the existence of spatial interactions within affected and unaffected regions. Our results show that municipalities directly affected by the flood suffered an 7.6% decrease in GDP per capita in the year of the disaster. Three years after the flood, however, GDP per capita rebounded back to pre‐disaster levels in all sectors but the Agricultural sector. Finally, our spatial estimations show that spillovers exist and are economically relevant. [ABSTRACT FROM AUTHOR]

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper investigates the organization and the distribution of research activities between nearby public and private laboratories. In a three‐stage game, the 'size', 'locationprime and 'research effortprime are determined under the assumption that public spillovers depend on the location of the private laboratory. We compare two scenarios in which the research efforts are decided either cooperatively or non‐cooperatively. We show that for particular levels of subsidy granted to the public lab, higher funding favours spatial proximity and increases the total research effort in the cooperative case, while it diminishes the total effort in the non‐cooperative one. Moreover, compared with the non‐cooperative case, research cooperation: (i) may increase the distance between the two laboratories; (ii) makes the public laboratory smaller; (iii) increases the total research effort; but (iv) is detrimental to the payoff of the whole research sector. [ABSTRACT FROM AUTHOR]

Abstract: This paper analyses how oil industry‐related activities in neighbouring gasoline markets affect local markets. Our contribution consists of applying spatial econometric models to better understand pricing behaviour in US gasoline markets and the spatial phenomena unique to this particular industry. We find that neighbouring state‐level gasoline price variation explains a large portion of the variation of in‐state (or local) gasoline prices. Consistent with intuition, the empirical results imply that wholesale gasoline prices are positively affected by state and federal‐level gasoline content regulations. Further, our results suggest that changes in state‐level wholesale gasoline prices respond to both in‐state and neighbouring‐state inventory levels. [ABSTRACT FROM AUTHOR]

Abstract: Regional industrial policy emphasizes the notion of building on existing concentrations of competitive firms. A range of measures to identify such concentrations has been put forward in the literature. These measures, however, do not identify substantial concentrations which have the best potential for further development, tend to concentrate on scale measured by employment, and are applied using data for pre‐specified administrative boundaries. This paper presents a new concentration index that identifies substantial concentrations and utilizes information on both the number and size of plants. It also proposes a method for generating relevant industry‐specific spatial units. [ABSTRACT FROM AUTHOR]

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In this article we test for dynamic inter- and intra-industry externalities on the urban level in the Netherlands. We argue that previous contributions might be sensitive to untested spatial and sectoral composition effects of urban data. We conclude that research results are better controlled when analysed on lower spatial scales, that results improve in robustness when spatial dependence in the form of spatially lagged versions of explained (growth) variables is introduced in the econometric models, and that results are more informative when hierarchical urban regimes are tested for. Introducing spatially lagged versions of explanatory agglomeration variables is informative but leads to less robust outcomes. In general our research results are more conclusive on inter-industry externalities circumstances when outcomes of city-industry as well as sectoral research designs are compared with the same dataset. [ABSTRACT FROM AUTHOR]

Transport costs have always been an important dimension in regional science. It is therefore remarkable that regional science and transport economics have developed in a rather unconnected way. Although being distinct, the routes of the two were parallel, and there are signs that the two fields will get closer to each other. This paper further discusses long run trends in transport costs and the potential spatial consequences. The main conclusion is that although in terms of money and time, the performance of transport has improved enormously, many economic activities have not become footloose to the extent as expressed by the notion of 'death of distance'. One of the reasons discussed is the role of transaction costs, some being clearly related with distance. [ABSTRACT FROM AUTHOR]

This paper investigates the effect of foreign direct investment on the productivity of local manufacturing firms in Romania. We decompose traditional country-wide spillover measures in different components according to both proximity between foreign and domestic firms and time-since-foreign-entry. We find larger and faster spillover effects for local suppliers of foreign firms at shorter distance, driven mainly by recent foreign entrants. Irrespective of distance, foreign firms of medium maturity generate backward spillover effects that fade away with longer presence. A positive effect on local competitors is not significantly affected by distance, but requires the presence of mature foreign firms. [ABSTRACT FROM AUTHOR]

The paper analyses the nonlinearities in the impact of localization, diversity, urbanization and competition on firm-level total factor productivity (TFP), using a large sample of Italian firms from 1999 to 2007. We adopt a panel smooth transition regression model, so that the TFP elasticities are free to vary smoothly across two or more extreme values. Results show that localization economies and Jacobian externalities materialize only for values of, respectively, intra-industry agglomeration and extra-sectoral diversity above a certain threshold. Local competition exerts a positive effect on productivity, even though the marginal impact shrinks at high levels of competition. We find instead no evidence of diseconomies of agglomeration. [ABSTRACT FROM AUTHOR]

This paper estimates the impact of industrial agglomeration on firm-level productivity in Chinese manufacturing sectors. To account for spatial autocorrelation across regions, we formulate a hierarchical spatial model and use a Bayesian instrumental-variable approach. We find that agglomeration of the same industry (i.e., localization) has a productivity-boosting effect, but agglomeration of urban population (i.e., urbanization) has no such effect. In addition, the localization effect increases with the educational levels of employees and the share of intermediate inputs in gross output. These results may suggest that agglomeration externalities occur through knowledge spillovers and input sharing among firms producing similar manufactures. [ABSTRACT FROM AUTHOR]

While a great deal of literature has paid attention to knowledge spillover on innovation, this study argues that geographical knowledge search that lays much emphasis on firm strategies merits more attention. This paper examines the effect of geographical knowledge search strategies, such as local/non-local search depth and local/non-local search breadth on product innovation. We reveal that while local search depth and breadth as well as non-local search breadth exert a significant influence, non-local search depth produces a negative impact on product innovation. Our research suggests that clustering firms' geographical knowledge search strategies and R& D intensity should be highlighted to understand their product innovation. [ABSTRACT FROM AUTHOR]

Contradictory to the theoretical proposition, Chinese exporters are overall less productive than non-exporters. This study explores the productivity puzzle of Chinese exporters using a plant level dataset which includes the large industrial firms during the period of 1998-2007. Based on total factor productivity ( TFP) estimated by the semi-parametric method proposed in Olley and Pakes, this study confirms productivity puzzle of Chinese exporters. The productivity puzzle however does not remain after controlling for firm locations. This result is robust for different model specifications and productivity measurements. Further analysis indicates that productive firms would favour the domestic market particularly when they can enjoy local protection. Export spillover effects would help less productive firms to enter the international market. Ownership and scale economies however condition the impacts of local protection and spillover effects. This paper suggests that local protection and spillover effects can influence the export decision of Chinese firms, providing a complementary contribution to the related literature. [ABSTRACT FROM AUTHOR]

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper uses microeconomic data for more than 100,000 European individuals in order to analyse whether the individual economic returns to education vary between migrants and non-migrants and whether any differences in earnings between these two groups are affected by household and/or geographical (regional and interregional) externalities. The results point out that while education is a fundamental determinant of earnings, European labour markets do not discriminate in the returns to education between migrants and non-migrants. Household, regional and supra-regional externalities influence the economic returns to education in a similar way for local, intranational and supra-national migrants. The results are robust to the introduction of a large number of individual, household and regional controls. [ABSTRACT FROM AUTHOR]

This article presents a theoretical model of the role of intra-regional economies of scale and inter-regional externalities across a three dimensional regional economy. Kubo's (1995) two-dimensional analysis is extended to study the dynamic properties of the development of the three regions. We characterise dynamics and the stability of steady states, and show under what conditions the steady state is unique. Furthermore, we examine different regional development patterns both in cases of symmetric and asymmetric inter-regional externalities. We show that the condition for even regional development in Kubo's model, i.e., that inter-regional externalities are larger than intra-regional economies of scale in each region, is not sufficient for even regional development in a three region model. [ABSTRACT FROM AUTHOR]

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Gibrat's law asserts that the growth of a city is independent of its initial size, but the populations of cities display a pattern of systematic agglomeration. This pattern may emerge because some cities are more attractive than others. We analyse the relationship between the growth and size of 1,188 cities in the South Region of Brazil using municipal data between 2000 and 2010. The selected model is the spatial Durbin model (SDM) that controls for temporal and spatial dependence, relevant omitted variables, economic factors, local amenities and externalities. The results indicate that Gibrat's law is not robust when cities interact. [ABSTRACT FROM AUTHOR]

We try to identify the determinants of regional variation in both exploitative and exploratory innovative competencies. Hereby, we focus on how a knowledge‐creation mechanism with specialized externalities differs from one with diversified externalities. Innovative competence in the US is measured by local patenting performance; exploitative and exploratory patenting performances are distinguished by the degree of backward citation. Based on the extended knowledge‐production function, including the two agglomeration externalities, our findings show that specialized externalities are associated with exploitation, while diversified externalities are positively related with both exploration and exploitation, regardless of industrial sectors. [ABSTRACT FROM AUTHOR]

We study the competition of two suburbs facing transit traffic flows. The suburbs are substitutes for transit traffic. In the absence of toll measures, the symmetric Nash equilibrium with two local governments leads to a race to the top in traffic calming measures that increases the cost of travel. The Nash equilibrium is compared to two types of centralized decisions: the symmetric solution and the asymmetric solution. The asymmetric solution that concentrates all transit traffic in one suburb is better but can only be realized if the authority over the local roads is transferred to the central authority. [ABSTRACT FROM AUTHOR]

The development of new industries demands access to local capabilities. Little attention has yet been paid to the role of spillovers from neighbour regions for industrial diversification, nor has the role of network linkages between neighbour regions been investigated. As the spread of capabilities has a strong geographical bias, we expect regions to develop new industries in which their neighbour regions are specialized. To test this hypothesis, we analyse the development of new industries in US states during the period 2000-2012. We show that a US state has a higher probability of developing a comparative advantage in a new industry if a neighbour state is specialized in that industry. We also show that neighbour US states have more similar export structures. This export similarity seems to be explained by higher social connectivity between neighbour states, as embodied in their bilateral migration patterns. [ABSTRACT FROM AUTHOR]

This study develops a method to decompose total national indirect value added effects (induced by final demand) into intraregional effects and interregional spillovers. The decomposition is applied to China's 2002 and 2007 interregional input-output tables with foreign-owned processing exports separated from normal exports. First, we find that interregional spillovers account for one quarter to one half of the total national indirect value added multipliers in 2007, with the largest spillovers occurring for the coastal regions. This finding is important when explaining regional value added generation and thus has real implications for regional policy programmes. Second, we develop a new measure, namely, 'net interregional value added spillovers' to position China's individual regions in the global production chains. This measure shows that upstream regions in the Centre, Northwest and Southwest of China are net recipients of interregional value added spillovers generated by foreign exports in coastal regions. Over time, this observation becomes more pronounced. [ABSTRACT FROM AUTHOR]

Recently, Duranton and Turner estimated the impact of interstate highways on the average growth of US cities between 1983 and 2003. By estimating a structural model, one of their striking points is that increasing a city's initial stock of highways by 10 per cent leads to a 1.5 per cent positive respond of the city's employment over the sample period. This note mainly argues that their investigation leaves out potential spillovers of labour input from neighbouring growth centres/cities in the steady-state directly implied by the open city assumption. More specifically, this contribution readily extends Duranton and Turner's work by a general equilibrium effect induced by the urban system's labour market fluctuations which is a direct consequence of the open city assumption. [ABSTRACT FROM AUTHOR]

Le Sage and Pace (2009) consider the impact of omitted variables in the face of spatial dependence in the disturbance process of a linear regression relationship and show that this can lead to a spatial Durbin model. Monte Carlo experiments and Bayesian model comparison methods are used to distinguish between spatial error and Durbin model specifications that arise with varying levels of correlation between included and omitted variables. The Monte Carlo results suggest use of the common factor relationship developed in Burridge (1981) as a way to test for the presence of omitted variables bias influencing specific explanatory variables. [ABSTRACT FROM AUTHOR]

Unemployment arising from job search and recruiting friction is incorporated in a tax competition model with multiple jurisdictions. Due to the matching externality, for each jurisdiction, the revenue from a job opening does not coincide with its cost. Therefore, capital taxation, which can be regarded as the export of jobs, causes positive or negative externality. When the revenue is smaller than the cost, capital taxation generates negative externality, which implies that local governments impose a too high capital tax rate and local public goods are provided in excess. It is also shown that an improvement in the efficiency of the matching process raises the capital tax levels chosen by local governments. [ABSTRACT FROM AUTHOR]

We evaluate the impact of technological externalities on the location choices of duopolistic firms in a Weber triangle. Assuming technological spillover effects to be decreasing in the distance between firms, we show that each firm’s optimum location is independent of a demand shock when the firm’s distance to market is constant. When distance to market is variable, a firm’s optimum location will not be independent of a demand shock if one of the duopolistic firms has non-linear technology. The optimum location of an IRS (DRS) firm moves away from (closer to) the market place if the other firm is CRS and if demand is not strongly concave or convex. [ABSTRACT FROM AUTHOR]