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.     

Urban development and expenditure efficiency in the 2000–2006 regional operational program of Sardinia

The Sardinian regional operational program 2007–2013 concerning the European Regional Development Fund (ERDF) (2007–2013 ROP-ERDF) respects the rules of the ERDF on the investments for territorial cohesion since it promotes their regional geographic concentration. These investments are evenly shared between large- and medium-sized urban areas, and disadvantaged zones. This paper analyzes the investment policies implemented by the Sardinian Region through the 2000–2006 ERDF based part of the Regional Operational Program (2000–2006 ROP-ERDF), in order to assess their effectiveness, in terms of expense efficiency, for urban areas and disadvantaged zones. The assessment of the expenditure efficiency of the 2000–2006 ROP-ERDF is very important to address the policies of the 2007–2013 ROP-ERDF in terms of geographic concentration. The essay analyzes the results of the 2000–2006 ROP-ERDF, with reference to the expenditure efficiency of Sardinian cities, represented through a geographic information system, by means of a multinomial logit model.     

The United Kingdom and the stability of the Euro area: From Maastricht to Brexit

The two key events expected to mark the year 2019 were the 20th anniversary of the euro and Brexit. This paper examines the role of the United Kingdom on the stability of the euro area. We study stability from the perspective of synchronisation of economic activity in a core and periphery framework. We show the UK, since 1990, has become significantly more integrated with the EU economy. The UK moved from the periphery before 1990 to the core afterwards. We also find that the level of synchronisation of the UK economy has had the highest variability over time among all countries.     

An elasticity approach to equilibrium and preference concentration in the Hotelling game

We consider the standard Hotelling price-and-location game with two firms, and show how equilibrium is affected by the shape of the consumers’ density. By describing the latter in terms of elasticity (Esteban in Int Econ Rev 27:439–444, 1986), we develop a framework which enables us to prove a sufficient condition for the existence of multiple asymmetric equilibria when the density is symmetric, in terms of a lower bound on the Gini coefficient of the distribution of preferences.      

SHEDDING LIGHT ON THE LIGHT BULB PUZZLE: THE ROLE OF ATTITUDES AND PERCEPTIONS IN THE ADOPTION OF ENERGY EFFICIENT LIGHT BULBS

Despite the potential energy savings and economic benefits associated with compact fluorescent light bulbs, their adoption by the residential sector has been limited to date. In this paper, we present a theoretical model that focuses on the agents' ability to perceive the correct cost of lighting and on the role of environmental attitudes as key determinants of the adoption decision. We use original data from Ireland to test our theoretical predictions. Our results emphasize the importance of education, information and environmental awareness in the adoption decision.     

A classification of marine microorganisms by numerical taxonomy

A method of numerical taxonomy is presented, namely a clustering technique by which bacteria are classified into clusters according to their overall similarity. In this way it is possible to establish a taxonomic system and hence to construct dendrograms. It is furthermore possible to evaluate the fundamental characteristics of the clusters by the determination of typical sequences. The analysis of a dendrogram concerning 229 bacterial strains is then reported. A preliminary classification key is then set up. The constancy of the characters is tested and a new key is set up on the basis of the modifications observed. The influence of the number of characters is also tested. Some applications for the key are suggested.     

Knowledge Spillovers,ICT and Productivity Growth

This paper looks at the channels through which intangible assets affect productivity growth. The econometric analysis exploits a new data set on intangible investment (INTAN‐Invest) in conjunction with EUKLEMS productivity estimates for 10 EU member states from 1998 to 2007. We find that (a) the output elasticity of intangible capital depends upon ICT intensity, consistent with complementarities between ICT and intangible capital; (b) non‐R&D intangible capital has a higher estimated output elasticity than its factor share, as does (c) an index of labour composition. The last two findings are consistent with growth spillovers from investments in knowledge‐based/intangible capital and skills.     

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 (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.     

The forecast quality of CBOE implied volatility indexes

We examine the forecast quality of Chicago Board Options Exchange (CBOE) implied volatility indexes based on the Nasdaq 100 and Standard and Poor's 100 and 500 stock indexes. We find that the forecast quality of CBOE implied volatilities for the S&P 100 (VXO) and S&P 500 (VIX) has improved since 1995. Implied volatilities for the Nasdaq 100 (VXN) appear to provide even higher quality forecasts of future volatility. We further find that attenuation biases induced by the econometric problem of errors in variables appear to have largely disappeared from CBOE volatility index data since 1995. © 2005 Wiley Periodicals, Inc. Jrl Fut Mark 25:339–373, 2005