Prices and Regional Variation in Welfare

One would expect regional differences in prices to influence conclusions concerning levels and distributions of well-being. Although there is anecdotal evidence of significant price dispersion across regions, there is no governmental source of data that measures differences in price levels. In this paper I integrate estimates of regional prices with expenditure data from the Consumer Expenditure Surveys to assess the influence of price differences on living standards in the United States. While prices have little effect on inequality, estimates of poverty and the standard of living change substantially with the inclusion of regional price variation.     

Assessing the effects of measurement errors on the estimation of production functions

This article explores to what extent the poor results that are often found when estimating parameters of production functions can be attributed to measurement errors, due to the use of common price deflators across firms. Because of the lack of detailed micro‐economic data, econometricians have to rely on industry‐wide deflators when computing outputs and intermediate inputs. A unique feature of the longitudinal data used in this paper is that it reports firm‐level prices. This allows for a comparative assessment of production function parameters where the outputs and intermediate inputs are computed using both firm‐specific prices and industry‐wide deflators. The empirical results presented in this paper show that the use of common deflators across firms leads to lower scale estimates, mainly because of a large downward bias in the estimated coefficients for labour. Copyright © 2006 John Wiley & Sons, Ltd.     

European Regional Development Fund and pro-environmental behaviour. The case of Italian separate waste collection

The purpose of this paper is to analyse the impact of European Regional Development Fund (ERDF) regulations over two programming periods (2000–2006 and 2007–2013) in terms of separate waste collection rates of Italian regions. We analyse longitudinal data for 20 NUTS-2 Italian regions over two EU policy cycles (2000–2006 and 2007–2013), by means of a Difference-in-differences estimation method. The estimates suggest that ERDF regulations in both programming periods had no relevant impact on the achievement of cohesion policy goals for separate collection at the regional level. Subsequently, we analyse data for 103 NUTS-3 Italian provinces over 2000–2013 by means of two statistical tools: The Theil index (TI), and the Moran index (MI), and find that proximity effects at provincial scale cause positive social contagion of pro-environmental attitudes toward separate collection. Our results make a case for the relevance of ‘cultural’ policy measures fostering environmentally responsible attitudes as a possible pre-condition for effective implementation of ERDF-funded separate collection projects in low-performing regions.     

THE TRANSPORT SECTOR AND REGIONAL PRICE DIFFERENTIALS: A SPATIAL CGE MODEL FOR CHINESE PROVINCES

With regression formulas replaced by equilibrium conditions, a spatial CGE (Computable General Equilibrium) model can substantially reduce data requirements. Detailed regional analyses are thus possible in countries where only limited regional statistics are available. Alhough regional price differentials play important roles in multiregional settings, transport does not receive much attention in existing models. This paper formulates a spatial CGE model that explicitly considers the transport sector and FOB/CIF prices. After describing the model, the performance of our model is evaluated by comparing the benchmark equilibrium for China with a survey-based interregional I-O table for 1987. The structure of Chinese economies is summarized using information obtained from the benchmark equilibrium computation. This includes regional and sectoral production distributions and price differentials. The equilibrium for 1997 facilitates discussion of changes in regional economic structures that China has experienced in the decade.     

Productivity and energy price differentials

In taking account of the interrelationship between energy and other primary resources, labour and capital, this paper presents a methodology for quantifying regional efficiency differentials using Taylor series approximations to profit functions representing regional economies. The resulting formulation makes it possible to decompose labour productivity into its contributing factors which now include energy price differentials in addition to such traditional variables as differentials involving capital-employee ratios and the quality of labour. This approach is applied to Canadian regional data from 1962 to 1978. On average, between 5.2% and 9.2% of Canadian regional productivity differentials can be attributed to regional energy price differentials.     

Capitalization of local fiscal differentials: Inferences from a disequilibrium market model

This study analyzes tax capitalization within the framework of a disequilibrium market model. In particular, this study examines whether local fiscal differentials influence the rate of change in neighborhood house prices over time. Local fiscal differentials existing in 1970 are found to have no influence on the rate of change in neighborhood house prices over the period 1970–1972; therefore, the study concludes that, other things being equal, these local fiscal differentials have been completely capitalized in price levels.     

CHINA'S REGIONAL INEQUALITY AND RELATED LONG-TERM POLICIES

This paper presents a simple model to study the reasons for China's regional inequality and proposes a few long-term policies for solving the problem. Based on an empirical estimation, it is shown that the great regional inequality of the recent years is caused by high disparities m investment between the provincial capital, in population growth and in regional relative price indices. It is argued that such regional inequality could be reduced in the long term by adjusting China's coastal-favorite regional development strategy, by partially relaxing strict regulations on inter-regional migration, and by driving further forward the transformation towards a mature market economy.     

The spatial dynamics of new firm births during an economic crisis: the case of Great Britain, 2004–2012

Abstract

Spatial variations in entrepreneurial activity have been shown to be a time persistent phenomenon in many countries. This paper analyses how these spatial variations have been affected by the recent financial crisis within the context of theories of regional resilience and adaptability. The analysis applies Exploratory Spatial Data Analysis techniques to data on firm births across Local Authority Districts of Great Britain during the period 2004–2012. The results demonstrate that, whilst the overall shape of the spatial distribution of firm births remained persistent, there is evidence of an increase in regional inequality. This is primarily associated with a divergence between London and the rest of the distribution. London, together with part of its surrounding area, appears to constitute a resilient entrepreneurial regime that has generated a dynamic, adaptive response to the crisis with high rates of new firm formation in contrast to other regions which have remained locked into lower rates of entrepreneurship. This supports the view that regional entrepreneurship is a path dependent process: entrepreneurial regions are more adaptable to the effects of an exogenous shock than less entrepreneurial regions. Accordingly, entrepreneurship is a critical factor influencing the resilience of regions in responding to an economic crisis.     

我国城市化水平与区域经济增长差异实证研究

基于1989-2009年省级面板数据设定了协整模型,分析了我国城市化水平与区域经济增长的长期关系。结果显示,我国城市化水平与区域经济增长之间存在显著的正相关性,且两者之间存在长期稳定的协整关系。在总体上,城市化水平对经济增长的促进作用在不同区域间的差距较大,城市化水平对区域经济发展的影响排序依次为:东部、中部、东北部、西部。因此,在加快城市化进程中做好户籍制度改革,将有利于从根本上提高城市化水平,促进区域经济的增长,消除地区经济差距。     

Raising the bar (10)

This editorial summarizes the papers published in issue 14(1) so as to raise the bar in applied spatial economic research and highlight new trends. The first paper applies the Shapley-based decomposition approach to determine the impact of firm-, linkage- and location-specific factors to the survival probability of enterprises. The second paper applies Bayesian comparison methods to identify simultaneously the most likely spatial econometric model and spatial weight matrix explaining new business creation. The third paper compares the performance of continuous and discrete approaches to explain subjective well-being across space. The fourth paper applies a multiple imputation approach to determine regional purchasing power parities at the NUTS-3 level using data available at the NUTS-2 level. Finally, the last paper constructs a regional input–output table for Japan from its national counterpart using and comparing the performance of four non-survey techniques.     

Regional Inequalities in Consumption Patterns: A Multilevel Approach to the Case of Italy

The main aim of this paper is to evaluate the disparities in the Italian regions on the demand side. In more detail, an attempt will be made to find if the consumption behaviour of Italian households is different in the regions. With this in mind, Istat's 2000 Italian Family Budget data set was analysed. The data in question, which were collected through a two‐stage sample over Italy's 20 regions, contains information regarding the expenses of approximately 23,000 households. In this analysis, both households and regions are considered as units: households are nested in the regions so that the basic data structure is hierarchical. In order to take this hierarchical structure into account, a multilevel model was used, making it possible for parameters to vary randomly from region to region. The model in question also made it possible to consider heterogeneity across different groups (regions), such as stochastic variation. First, regional inequalities were tested using a simple model in which households constituted the first level of analysis and were grouped according to their region (the second level). As a second step, and in order to investigate the interaction between geographical context and income distribution, another model was used. This was cross‐classified by income and regions. The most relevant results showed that there is wide fragmentation of consumption behaviour and, at the same time, various differentiated types of behaviour in the regions under analysis. These territorial differentials become clear from income class and items of consumption.     

A heterogeneous coefficient approach to the knowledge production function

Past literature has used conventional spatial autoregressive panel data models to relate patent production output to knowledge production inputs. However, research conducted on regional innovation systems points to regional disparities in both regions’ ability to turn their knowledge inputs into innovation and to access external knowledge. Applying a heterogeneous coefficients spatial autoregressive panel model, we estimate region-specific knowledge production functions (KPFs) for 94 NUTS-3 regions in France using a panel covering 21 years from 1988 to 2008 and four high-technology industries. A great deal of regional heterogeneity in the KPF relationship exists across regions, providing new insights regarding spatial spillin and spillout effects between regions.     

Entrepreneurship and regional competitiveness: The role and progression of policy

Regions have gained a position at the forefront of the economic development policy agenda. However, the regional approach to economic strategy remains contested. This paper tests the extent to which regional policy in less competitive regions is accounting for issues relating to entrepreneurship and enterprise development as a tool for improving regional competitiveness. It does so by examining policies undertaken by the UK Labour government 1997–2010, drawing on interviews with policy makers and an analysis of relevant policy documents. This paper finds that entrepreneurship policy at the regional level is multidimensional, with policies broadly ranging from those that are either economically or socially driven. Although there is a considerable policy activity in these areas across less competitive regions, enterprise policy making remains relatively undifferentiated across the regions. There are a number of evolutions in regional policy occurring, especially a shift from policies relating to the facilitation of clusters to those focused on developing regional innovation ecosystems. It is found that regional policy makers are under pressure to measure short-term outputs at the expense of long-term nurturing. The paper also finds that there is a tension between using enterprise policy as a tool for improving regional competitiveness or for addressing economic and social disadvantage.     

A SURVEY OF MEASUREMENT BIASES IN PRICE INDEXES

Abstract. This paper reviews the literature on measurement error in the major US price indexes—the Consumer Price Index (CPI), the Producer Price Index (RPI), and the Gross Domestic Product (GDP) deflators. We take as our point of departure Triplett's, 1975, survey and focus on the studies of measurement error that have appeared since then. We review the problems of substitution bias, quality bias, new goods bias, and outlet substitution bias that are generally considered to be the main sources of error in price indexes. The bulk of the paper is devoted to problems in the CPI and PPI, as the GDP deflators tend to be based mainly on the components of these series. We find that there has been surprisingly little work on the problem of overall measurement error in any of these price indexes, and we conclude that there is very little scientific basis for the commonly accepted notion that measured inflation at 2 to 3 percent a year is consistent with price stability.     

Regional energy efficiency and its determinants in China during 2001–2010: a slacks-based measure and spatial econometric analysis

Carbon dioxide (CO₂) emissions are largely driven by fossil fuels. To reduce CO₂ emissions in China, it is important to determine influential factors of energy efficiency. This paper introduces a slacks-based measure window analysis approach to evaluate regional dynamic energy efficiency during 2001–2010, and then explores energy efficiency determinants by considering spatial effects, which is conducted based on spatial econometric models. The empirical results show that there exist evident spatial correlations between regional energy efficiencies in China. We find that, there exist evident disparities in cumulative effects of energy efficiency among the eastern, central and western areas. Interestingly, significant energy efficiency spatial spillovers can be clearly found between regions within the western area and across the eastern and western areas. It is found that, energy structure, energy price, railway transportation development and R&D stock are significant at national level. However, energy structure and railway transportation development are insignificant in the central and western areas, while energy price and R&D stock are insignificant in the eastern and central areas, respectively. Industrial structure and urbanization level are found to be insignificant at national level, but industrial structure is significant in the eastern and western areas, and urbanization level is significant in the central and western areas. Surprisingly, industrial structure and urbanization level are found to have positive impacts on energy efficiency in the western area. In addition to regional disparities and local conditions, policies making should take efficiency spatial spillovers into consideration. Several interesting policy implications are achieved.     

区域物流业发展水平及其对区域经济影响分析与对策

指出区域物流业对区域经济的影响机制主要是通过增长极效应、带动效应、扩散效应和贸易拉动效应而起作用的,接着研究了区域物流产业发展总体评价指标体系的问题,最后提出要从加强物流基础设施建设、提高运作效率、实现物流产业与生产制造产业互动发展、加强区域物流产业的整合力度和企业联合程度以及加强物流人才的培养和引进等方面来实现区域、物流产业发展对于区域经济发展的贡献水平和质量。     

Inequality and Growth in European Regions: Towards a Place-based Approach

Abstract

Does agglomeration matter for growth? This paper addresses this question by evaluating the impact that intra-regional income distribution has on regional growth in Europe. By using a spatially augmented Solow growth model, we investigate the convergence process among 188 EU regions between 1991 and 2004 and extend the traditional growth models to account for the impact of regional inequality on growth, as well as the effects of interaction among regions. Our assumption is that existing levels of inequality between sub-regional territorial units could positively contribute to regional economic growth in Europe, through the positive effects generated by the emergence of agglomeration economies. Our results show that while we cannot find any overall significant relationship in Europe between agglomeration and growth, once we distinguish between Objective 1 and Non-objective 1 regions we are able to find that agglomeration positively impacts subsequent growth, but only in the less developed regions.     

Regional Growth and National Development: Transition in Central and Eastern Europe and the Regional Kuznets Curve in the East and the West

Abstract

Regional disparities in Central and Eastern Europe rose substantially since 1990. Still, prima facie evidence of beta-convergence is often found in the CEE data. To reconcile this seeming paradox, we sketch out and test empirically a hybrid model of regional growth that draws on the regional Kuznets curve and incorporates aspects of cumulative causation and neoclassical convergence. In both CEE and the ‘old’ EU15, regional convergence is strongly linked to the level of national development, non-linearly. But while in the EU15 convergence speeds-up at intermediate/high levels of development, in CEE we find divergence at intermediate levels of national development and no significant return to convergence thereafter. Although this may show that overall development levels are not sufficient yet to mobilise regional convergence, it is also possible that non-convergence is attributable to centripetal forces instigated by the process of transition.     

物价水平、工资差异与审计定价

中国审计市场具有明显的地域特征,上市公司的地域位置会对审计定价产生影响。物价水平及工资水平与审计定价间关系的实证检验研究显示:物价水平越高的地区,上市公司审计定价越高;工资水平越高的地区,上市公司审计定价越高。进一步的研究发现,物价水平和工资水平间的相互关系削弱了区域差异对审计定价的影响,工资水平与审计定价间的关系依赖于物价水平。     

基于投入要素影响的中国物流地区差距研究

文章基于集中度指数和面板数据模型,采用2002~2010年间中国31个省份的面板数据,分析了中国物流的地区差距及投入要素对地区差距的影响。结果表明:我国物流发展水平存在显著的地区差距,东部地区明显强于中西部地区;在投入要素中,信息化水平对物流发展水平的影响较大,物流基础设施的影响较小,而物流从业人员的影响未见;我国的物流发展正处于结构调整期,信息化水平差距对物流发展水平差距的贡献最大。