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.     

Raising the bar (6)

Raising the bar (6). Spatial Economic Analysis. This editorial summarizes and comments on the papers published in issue 12(4) so as to raise the bar in applied spatial economic research and highlight new trends. The first paper addresses the question of whether ‘jobs follow people’ or ‘people follow jobs’. The second paper develops a new methodology to determine functional regions. The third paper is a major contribution to the growing literature on new modelling approaches and applications of disaster impact models. The fourth paper focuses on the costs and benefits of higher education. The fifth paper develops a two-step procedure to identify endogenously spatial regimes in the first step using geographically weighted regression, and to account for spatial dependence in the second step. Finally, the sixth paper estimates a dynamic spatial panel data model to explain house prices and to show that restricted housing supply in the city of Cambridge, UK, has some undesirable labour market effects.     

Raising the bar (1)

In this editorial, we summarize and comment on the papers published in issue 11.1 so as to raise the bar in applied spatial economic research and highlight new trends. The first paper employs the J-test to discriminate between two economic-theoretical explanations for the wage curve. The second applies a two-step ML procedure to measure the impact of volatility on economic growth. The third tests for endogeneity in the Spatial lag of X (SLX) model and whether or not the model should be extended to contain a spatial lag. The fourth utilizes the gravity model to test whether or not grids should be merged into larger units of observations. Finally, the last adopts a time-space recursive model to test the ripple effect and (linguistic) border effect hypotheses on housing prices in Belgium.     

Raising the bar (7)

This editorial summarises the papers published in issue 13.1 so as to raise the bar in applied spatial economic research and highlight new trends. The first paper adopts a scale neutral approach to investigate the spatial mechanisms that cause regional innovation and growth. The second paper claims that population-weighting when calculating indices of regional inequality might lead to inconsistent outcomes. The third paper estimates the effect of distance between family residence and higher education institution on a student's academic performance, thereby accounting for endogenous regressors. The fourth paper shows an inverted U-shaped relationship between economic development at region of origin and the propensity to migrate using a multilevel approach. The fifth paper provides spatial econometric evidence of price competition between sellers of used books on Amazon.com. The last paper estimates a hedonic housing price equation and parameterizes the spatial weight matrix to determine how far back in time buyers, sellers and realtors are looking at the housing market.     

Raising the bar (2)

In this editorial we summarise and comment on the papers published in issue 11.2 so as to raise the bar in applied spatial economic research and highlight new trends. The first paper analyses which regions in Europe were resilient to the great Recession and which ones were not. The second and the third develop a competing-destinations gravity model to explain respectively which hospitals people go to depending on their residential location and which regions migrants go to on entering Europe. The fourth proposes a Bayesian approach to obtain likely values if data on certain spatial units are missing. Finally, the last paper tries to explain the spreading of people in sprawling cities.     

Raising the bar (4)

This editorial summarizes and comments on the papers published in issue 11(4) so as to raise the bar in applied spatial economic research and highlight new trends. The first paper deals with common factors and spatial dependence in the error term specification of a production function model. The second paper sets forth a New Economic Geography (NEG) model with production activities that vary in their complexity, so as to analyse the impact on specialization patterns across different regions. The third paper measures the efficiency of local public investments using a relatively unknown econometric technique in which the time span over which the variables in the regression equation are measured is increased by one time period every run. The fourth paper adopts a conditional quantile regression approach to determine the impact of people employed in informal jobs on the wage distribution in Colombia and five of its regions. Finally, the last paper proposes and tests two new Bayesian variable selection approaches for spatial econometric models.     

Raising the bar (9)

ABSTRACT

This editorial summarizes the papers published in issue 13(4) so as to raise the bar in applied spatial economic research and highlight new trends. The first paper develops an economic geography model with trade costs in all sectors and different shares of unskilled labour in all locations. The second paper translates an economic geography model into a dynamic spatial econometric model and then estimates the unknown parameters to test for congestion spillover effects among Chinese cities. The following paper also investigates spillover effects, but of sovereign and banking risks across countries. The fourth paper empirically examines if a higher market potential results in higher average productivity and lower productivity dispersion of Italian retailers. The fifth paper demonstrates that modelling more than one spatial lag in the independent variables, using different specifications of the spatial weight matrix, can be used as a tool to correct for an omitted variable bias. The final paper develops a test for the existence of non-parametric non-linearities in a linear spatial econometric model.     

Raising the bar (8)

This editorial summarizes the papers published in issue 13(3) so as to raise the bar in applied spatial economic research and highlight new trends. The first paper challenges the home market hypothesis that large countries host more firms relative to their size than small countries by considering the lobbying activities of multinational firms. The second paper analyzes the implications of a spatial weight matrix used to estimate a spatial econometric model that depends on an endogenous economic variable. By adding a spatial context, the third paper provides a novel contribution to the literature on international norms in de facto measures of human rights performance. The fourth paper examines the determinants of accepting informal work in Poland. The fifth paper deals with non-stationarity and cointegration in a dynamic spatial econometric panel data model when the number of observations in the time – rather than in the cross-sectional– domain tends to infinity.     

Raising the bar (11)

This editorial summarizes the papers published in issue 14(2) so as to raise the bar in applied spatial economic research and highlight new trends. The first paper deals with past and current challenges for regional science research. The second paper investigates whether people living in deprived neighbourhoods have less chance of succeeding in a job application. The third paper finds evidence that real estate firms can avoid price competition when market shares of their allies increase in the vicinity. The fourth paper is methodological: it considers a spatial autoregressive (SAR) model with heterogeneous coefficients and extensively analyzes the impact of this extension on the direct and indirect effects estimates. The fifth paper proposes an innovative method to estimate the elements of the spatial weight matrix in a spatial econometric model. The final paper is econometric–theoretical: it proposes a new generalized method of moments (GMM) estimator of the coefficients of a SAR model if the error terms are heteroskedastic of an unknown form.     

The interplay between the Bayesian and frequentist approaches: a general nesting spatial panel data model

The interplay between the Bayesian and Frequentist approaches: a general nesting spatial panel-data model. Spatial Economic Analysis. An econometric framework mixing the Frequentist and Bayesian approaches is proposed in order to estimate a general nesting spatial model. First, it avoids specific dependency structures between unobserved heterogeneity and regressors, which improves mixing properties of Markov chain Monte Carlo (MCMC) procedures in the presence of unobserved heterogeneity. Second, it allows model selection based on a strong statistical framework, characteristics that are not easily introduced using a Frequentist approach. We perform some simulation exercises, finding good performance of the properties of our approach, and apply the methodology to analyse the relation between productivity and public investment in the United States.     

A Spatial Model of the Impact of Bankruptcy Law on Entrepreneurship

Abstract

This paper employs spatial econometrics techniques to estimate the impact of bankruptcy regulation on small firm formation. The estimation of the model is computationally challenging due to the joint appearance of a lagged endogenous variable and the unobserved heterogeneity which requires modelling of initial conditions as described in Heckman (1981). We test for the joint significance of the state dummy variables in a way that can be viewed as an interesting alternative to the Hausman procedure. This was important for our analysis since, as sometimes happens in finite samples, the estimated variance–covariance matrix was not positive semi-definite. We found that the predicted probability of starting a business is 25% higher in states with higher bankruptcy exemptions than their neighbours relative to states with lower exemptions than their neighbours.

Un modèle spatial de l'impact des lois sur la faillite sur la création d'entreprises

Résumé La présente communication emploie des techniques d’économétrie spatiale pour évaluer l'impact de la réglementation en matière de faillite sur la constitution de petites entreprises. L'estimation du modèle pose des difficultés sur le plan computationnel en raison de l'apparition conjointe d'une variable endogène décalée et de l'hétérogénéité non observée, qui rend nécessaire la modélisation de conditions initiales, de la façon décrite par Heckman (1981). Nous testons la signification conjointe des variables indicatrices de l’état d'une façon qui peut être considérée comme une alternative intéressante à la procédure de Hausman. Ceci était important pour notre analyse, car, comme nous le relevons parfois dans des échantillons finis, la matrice variance–covariance estimée n’était pas semi-définie positive. Nous en concluons que la probabilité prévisible du lancement d'une affaire est plus élevée de l'ordre de 25% dans les états qui appliquent des exemptions pour les faillites supérieures à celles des pays avoisinants, par rapport aux états qui appliquent des exemptions inférieures à celles de leurs voisins.

Un modelo espacial del impacto de la ley de bancarrotas sobre las iniciativas empresariales

Résumén Este artículo emplea técnicas de econometría espacial para estimar el impacto de las normativas de bancarrotas sobre la formación de empresas pequeñas. La valoración del modelo es computacionalmente desafiante, debido a la aparición conjunta de una variable endógena rezagada y heterogeneidad inadvertida que requieren la modelación de las condiciones iniciales, como se describe en Heckman (1981). Ensayamos la significancia conjunta de las variables de prueba estatales de una forma que puede percibirse como una alternativa interesante al procedimiento Hausman. Esto fue importante para nuestro análisis, ya que, como ocurre a veces con muestras finitas, la matriz estimada de varianza–covarianza no fue semidefinitiva positiva. Descubrimos que la probabilidad predicha de iniciar un negocio es un 25% mayor en los estados con mayores exenciones de bancarrota que sus vecinos, en relación con estados con menos exenciones que sus vecinos.

     

Good neighbours matter: economic geography and the diffusion of human rights

Using multi-country panel data, this paper investigates the geopolitical and economic aspects of human rights performance. Human rights performance depends on the relative levels of economic development and spatial proximity to ‘good’ and ‘bad’ neighbours. The paper tests for basic effects of income, and applies spatial weighting models, to analyse the neighbours’ impact on human rights levels, treating this impact as partly endogenous. It takes into account size and distance when comparing each country’s human rights performance with what would be predicted from a weighted average of its neighbours’ performance. There are (1) geographical clusters and (2) size and proximity effects for human rights performance.     

Raising the Bar (3)

This editorial summarizes and comments on the papers published in issue 11(3) so as to raise the bar in applied spatial economic research and highlight new trends. The first paper proposes spatial and a-spatial indicators to describe the networks of airline companies around the world. The second paper sets forth a two-regime gravity-type model with an endogenous threshold parameter to assess the effect of labour market conditions on interregional migration flows. The third paper utilizes micro-data to explain student migration flows to higher education institutions. The fourth paper is among the first to make use of simulation-based location quotients in a multiregional input–output model. Finally, the last paper provides a purely economic–theoretical model on cooperative limit pricing in the context of spatial competition.     

Enterprise and Competitive Advantage in the Australian Context: A Spatial Econometric Perspective

Abstract

Contemporary understanding of the evolution of the geography of uneven development is dominated by research derived from either the ‘new’ geographical economics or the new regionalism, typically in the context of either the European Union or North America. By way of contrast, we consider local economic performance in the Australian context. Building on Fingleton's work, we employ a spatial econometric modeling methodology to account for the role of both endogenous technological change and export orientation in determining local competitive advantage. The evidence suggests that competitiveness depends on both the indigenous characteristics of a local economy and its exposure to global competition.

Entreprise et compétitivité dans le contexte australien: une perspective économétrique spatiale

Résumé Les connaissances contemporaines sur l’évolution de la géographie de développements irréguliers sont dominées par la recherche dérivée d'une « nouvelle » économie géographique ou du nouveau régionalisme, généralement dans le contexte de l'Union européenne ou de l'Amérique du Nord. A titre de contraste, nous examinons les performances économiques locales dans le contexte de l'Australie. En nous basant sur Fingleton, nous appliquons une méthodologie de modélisation économétrique spatiale pour interpréter le rôle de variations technologiques endogènes et de l'orientation de l'exportation dans la détermination de la compétitivité locale. Les résultats des recherches indiquent que la compétitivité est tributaire à la fois des caractéristiques indigènes d'une économie locale et de son exposition à la concurrence mondiale.

Empresas y la ventaja competitiva en el contexto australiano: una perspectiva econométrica espacial

Extracto La comprensión contemporánea de la geografía evolutiva del desarrollo desigual está dominada por investigación derivada de la ‘nueva’ economía geográfica o del nuevo regionalismo, típicamente en el contexto de la Unión Europea o de Norteamérica. A modo de contraste, consideramos el rendimiento económico local dentro del contexto australiano. Basándonos en Fingleton, empleamos una metodología de modelación econométrica espacial para tener en cuenta la función del cambio tecnológico endógeno y la orientación de la exportación a la hora de determinar la ventaja competitiva local. La evidencia sugiere que la competitividad depende de las características indígenas de una economía local y en su exposición a la competencia global.      

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.     

The Impact of Climate Change on Agriculture in the Southwestern United States: The Ricardian Approach Revisited

This paper estimates a Ricardian model of farmland value across the counties of the semiarid Southwestern United States. Compared to previous contributions, we focus on one climate zone and include the presence of extreme weather events and of farm subsidies in our analysis. We also control for heterogeneity and for various types of spillover effects. Once calibrated, the model is used to project changes due to future climate conditions. We find that the probability of a decrease is great in highland counties while an increase or decrease is equally probable in lowland counties where climate impacts farmland value less.     

轨道交通对房地产价值影响研究综述

介绍了轨道交通对房地产价值影响的国内外相关研究成果,指出分市场效应是导致已有研究结论之间不一致的重要原因.同时,列出了未来值得研究的一些问题,包括对商业及办公物业价值的影响,轨道交通影响在空间和时间上的变化特点,以及空间计量经济学的应用,例如空间自相关和分市场效应的处理等.     

城市化与能源消耗间关系实证研究

通过利用2000—2009年我国的省级面板数据,建立时间和空间双固定效应的面板空间杜宾模型,发现我国存在一条U形的城市化能耗库兹涅茨曲线,该曲线的转折点出现在城市化率约为24%的阶段。现阶段我国的城市化水平已经处在该曲线的右侧部分,表明如果我国的城市化率在今后仍不断提高的话,由城市化所导致的能耗将迅速增长。同时还发现城市化在我国能耗增长中的贡献比重较大,但对于在2003年出现的我国能耗迅速增加的拐点,从城市化的角度找不到解释。最后提出如果今后我国城市化率进一步提高,由能耗迅速增加所导致的城市发展的离心力达到一定程度,将会对我国的城市化格局产生重要的影响。     

Applied Spatial Econometrics: Raising the Bar

Abstract

This paper places the key issues and implications of the new ‘introductory’ book on spatial econometrics by James LeSage & Kelley Pace (2009) in a broader perspective: the argument in favour of the spatial Durbin model, the use of indirect effects as a more valid basis for testing whether spatial spillovers are significant, the use of Bayesian posterior model probabilities to determine which spatial weights matrix best describes the data, and the book's contribution to the literature on spatio-temporal models. The main conclusion is that the state of the art of applied spatial econometrics has taken a step change with the publication of this book.

Relever le niveau de l'économetrie spatial appliquée

RÉSUMÉ La présente communication place les principales questions et implications du nouvel ouvrage d'introduction sur l'économétries spatiale de James LeSage & Kelley Pace (2009) dans un contexte plus général: l'argument favorisant le modèle spatial de Durbin, l'emploi d'effets indirects comme base plus valable pour évaluer l'aspect significatif des déversements spatiaux, l'emploi des probabilités d'un modèle baysien postérieur pour évaluer laquelle des matrices de poids spatiaux décrit le mieux les donnes, et la contribution de l'ouvrage la documentation sur les modèles spatio-temporels. La principale conclusion est qu'avec la publication de cet ouvrage, l'état de l'art de l'économétries spatiale applique a effectué un grand pas en avant.

Alzar el nivel de la econometría espacial aplicada

RÉSUMÉ Este trabajo plantea las cuestiones e implicaciones clave del nuevo libro introductorio sobre económetra espacial de James LeSage & Kelley Pace (2009) dentro de una perspectiva más amplia: el argumento a favor del modelo espacial Durbin, el uso de efectos indirectos como una base más válida para poner a prueba si los desbordamientos espaciales son significativos, el uso de probabilidades posteriores bayesianas para descubrir que matriz de pesos espaciales describe mejor los datos, y la contribución del libro a la bibliógrafa sobre modelos espaciotemporales. La principal conclusión es que la econometría espacial aplicada más avanzada ha experimentado un cambio radical con la publicación de este libro.