{"title":"The Core-Periphery Model Under Additively Separable Preferences","authors":"Congcong Wang, Dao-Zhi Zeng, Xiwei Zhu","doi":"10.1111/jors.12744","DOIUrl":"https://doi.org/10.1111/jors.12744","url":null,"abstract":"<p>This paper reexamines Krugman's core-periphery model by substituting his constant elasticity of substitution (CES) utility with a general additively separable utility that comprehensively captures the pro-competitive effect while preserving the income effect. The heterogeneous consumption patterns of skilled workers and unskilled workers introduce a demand adjustment effect. The resulting interaction <span>between</span> the dispersion force, driven by the pro-competitive effect and the demand adjustment effect, and the agglomeration force stemming from the “second nature,” leads to various possible location patterns. These comprehensive demand and supply linkages generate novel evolutionary paths and bifurcation diagrams. Notably, high trade costs do not always lead to complete dispersion, and free trade does not necessarily result in agglomeration. Furthermore, multiple phases of redispersion are also possible.</p>","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":"65 2","pages":"378-402"},"PeriodicalIF":3.2,"publicationDate":"2024-11-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jors.12744","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143639241","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Stay Hungry, and Stay Calm in Upbeat Time: Local Leaders' Early-Life Famine Experience and Housing Sector Development in China","authors":"Linke Hou, Pinghan Liang, Siyuan Lyu","doi":"10.1111/jors.12741","DOIUrl":"https://doi.org/10.1111/jors.12741","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper shows that local officials' personal preferences formed through early-life experience affects Chinese housing sector development. We exploit a county-level panel between 2000 and 2007 and use the Great Famine in 1959–1961 in China as a natural experiment. Our specification exploits the spatial variation in the early-life exposure to the famine, and shows that local officials' early-life exposure to more severe famine leads to significantly less development in the housing sector in their jurisdictions. Our findings remain robust to alternative specifications, placebo tests, and competing hypotheses. Furthermore, we employ satellite nightlight data to show that the early-life famine experience of local officials is negatively correlated with the extent of statistical data manipulation, indicating changing risk attitudes due to early-life famine experiences.</p>\u0000 </div>","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":"65 2","pages":"324-338"},"PeriodicalIF":3.2,"publicationDate":"2024-10-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143639207","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Geographic Differences in the Effect of Immigration on the Native Wage Distribution: Evidence from Italian Provinces","authors":"Stefano Fusaro, Enrique López-Bazo","doi":"10.1111/jors.12742","DOIUrl":"https://doi.org/10.1111/jors.12742","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper examines geographic differences in the effect of immigration on the wage distribution of native Italian workers. The results suggest an insignificant effect across the wage distribution in northern provinces, but large and significant effects in the lower and middle parts of the distribution in the south. This is entirely because immigration pushed up wages at the lower end of the female wage distribution in southern local areas. This result is consistent with increases in labor market participation of native women that went hand in hand with improvements of women's skills at the bottom of the wage distribution.</p>\u0000 </div>","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":"65 2","pages":"313-323"},"PeriodicalIF":3.2,"publicationDate":"2024-10-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143639233","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Alessandra Perri, Francesco Rullani, Elisa Giuliani, Elisa Sabbadin, Raffaele Oriani
{"title":"Time is the enemy: The speed of proximity-based knowledge diffusion","authors":"Alessandra Perri, Francesco Rullani, Elisa Giuliani, Elisa Sabbadin, Raffaele Oriani","doi":"10.1111/jors.12740","DOIUrl":"https://doi.org/10.1111/jors.12740","url":null,"abstract":"<p>Does knowledge spread more quickly when firms are geographically closer? Focusing on knowledge diffusion from multinational enterprises (MNEs) subsidiaries in the context of the US semiconductor industry, our analysis suggests that the broader MNE patents are, in terms of the knowledge sources they draw on, the slower the speed of knowledge diffusion to more spatially proximate firms, compared to more distant ones. Moreover, our findings suggest that this outcome could be attributed to a greater reliance on knowledge sources that are internal to the MNE network or located geographically distant. We provide interpretative cues for these findings and provide policy recommendations in line with our results.</p>","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":"65 1","pages":"284-308"},"PeriodicalIF":3.2,"publicationDate":"2024-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jors.12740","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143116387","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Spatial inequality in unsolved crimes: Evidence from small neighborhoods","authors":"Nils Braakmann, Bahadir Dursun, Diego Zambiasi","doi":"10.1111/jors.12739","DOIUrl":"https://doi.org/10.1111/jors.12739","url":null,"abstract":"<p>Using administrative data on the universe of police recorded crime linked to judicial outcomes for England and Wales from January 2013 to December 2018, we document—for the first time—large and persistent spatial inequalities in the proportion of solved and unsolved crimes across small neighborhoods covering a whole country. We find substantial differences across neighborhoods in the same municipality or police force. Fixed effects decompositions suggest that neighborhoods have different clearance rates across different crimes and that high-crime neighborhoods also have high clearance rates, but with substantial heterogeneity across offences. Clearance rates correlate systematically with neighborhood composition.</p>","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":"65 1","pages":"258-283"},"PeriodicalIF":3.2,"publicationDate":"2024-10-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jors.12739","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143115236","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"All (economic) politics is local: Voting responses to localized price shocks during the great recession","authors":"Ron Cheung, Rachel Meltzer","doi":"10.1111/jors.12736","DOIUrl":"https://doi.org/10.1111/jors.12736","url":null,"abstract":"<p>The connection between individual and macroeconomic conditions and voting behavior is well-established. We contribute to the less resolved “spatial gap” in the literature that centers on how the localized economic conditions of where voters live influence their likelihood to vote. We test how space mediates the tension between voter mobilization and withdrawal in the face of economic shocks. We consider a scenario, the Great Recession, where economic shocks were quite localized and sudden, and compile an extensive dataset of all registered voters in the four-county Tampa metropolitan area between 2006 and 2015. Using sales prices and property characteristics from the tax assessor rolls, we estimate a neighborhood-level shock to housing values induced by the Great Recession. Results show that when we do not account for local neighborhood variation, the Great Recession is associated with a significant decrease in voter turnout. However, when we account for localized economic shocks, we find that residents in neighborhoods with negative price shocks were more likely to vote after the Recession, especially in non-local elections. In addition, the propensity to vote increases with the size of the negative price shock. There is some evidence that variation at the neighborhood level matters more than voter-level heterogeneity. The positive voting response is most profound in predominantly Black neighborhoods, and, to a lesser extent, in predominantly Hispanic and the lowest income neighborhoods. Increases in the propensity to vote are robust to models controlling for baseline economic vulnerabilities, such as localized unemployment, the weakness of the local housing market and exposure to sectors hit hardest by the Recession. The results indicate that dramatic and sudden changes in localized economic conditions can drive voting behavior, and in ways that are distinct from macroeconomic drivers. In addition, the housing asset channel appears to be a powerful one, which can induce significant voting responses at the national level apart from other localized economic drivers, especially among homeowners.</p>","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":"65 1","pages":"221-257"},"PeriodicalIF":3.2,"publicationDate":"2024-10-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143112902","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Amazon deforestation and CO2 emissions: A macroeconomic approach using the GVAR","authors":"Luccas Assis Attílio","doi":"10.1111/jors.12738","DOIUrl":"https://doi.org/10.1111/jors.12738","url":null,"abstract":"<p>We analyzed the relationship between economic variables, Amazon deforestation, and CO<sub>2</sub> emissions in Brazil. We used a macroeconomic approach of a system of open economies (global vector autoregressive [GVAR]). We constructed the international economy using 34 countries, representing 77% of the world GDP and 80% of world CO<sub>2</sub> emissions. GVAR allows us to simulate the world economy, capture spillover effects, incorporate the externality of gas emissions, treating Brazil as a small open economy, and including trade integration in the analysis. We found that domestic and external shocks affect Amazon deforestation and CO<sub>2</sub> emissions; the principal external shock is the Chinese one, followed by the European and the US shocks. China, directly and indirectly, affects CO<sub>2</sub> emissions and deforestation in Brazil through two channels (exchange rates and policy rates). The estimates showed that Brazilian currency and commodity prices are relevant for deforestation, while industrial production is for gas emissions. Other results are that (i) the Brazilian economy affects CO<sub>2</sub> emissions in Latin America (and the principal influence of China is on Asia), and (ii) the Chinese shock loses importance when using bilateral trade in 1999–2001, when China was not a fundamental trade partner of Brazil. Alternative model configurations demonstrate that soybean prices and Argentina influence Brazilian carbon emissions and Amazon deforestation. Specifically, soybean prices emerge as a major driver of carbon emissions. These results suggest that geography and trade integration matter to understanding Amazon deforestation and CO<sub>2</sub> emissions. Our estimates highlight the importance of government policies and international cooperation in curbing Amazon deforestation.</p>","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":"65 1","pages":"189-220"},"PeriodicalIF":3.2,"publicationDate":"2024-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143121435","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The impact of government support on rural grocery stores—A regression discontinuity approach","authors":"Cecilia Hammarlund, Martin Nordin","doi":"10.1111/jors.12735","DOIUrl":"https://doi.org/10.1111/jors.12735","url":null,"abstract":"<p>We evaluate a place-based policy aimed at commercial service providers. In 2016, the Swedish government introduced special operating support for grocery stores in remote rural areas to slow down the process of store closures. We estimate the local causal effect in a regression discontinuity design framework using the fact that only stores located at least 15 km away from another store were eligible for the support. The results indicate a 15%–20% increase in store survival rates due to the support. For surviving stores, the effects on employment are negative, possibly due to labor-saving investments.</p>","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":"65 1","pages":"156-188"},"PeriodicalIF":3.2,"publicationDate":"2024-09-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jors.12735","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143119700","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Network versus spatial proximity and firm innovation: The case of the R&D service sector","authors":"Ekaterina Turkina, Anthony Frigon, David Doloreux","doi":"10.1111/jors.12734","DOIUrl":"https://doi.org/10.1111/jors.12734","url":null,"abstract":"<p>The paper analyzes the relationship between different types of proximities—network and spatial—in relation to innovation in the context of the R&D service industry. In doing so, it contributes to the recent debate in the literature on the effects of network connectivity versus geographical colocation. The paper uses original data from a survey of 145 R&D service establishments in Montreal (Canada) and their interactions with both local and nonlocal organizations. The findings of the paper indicate that collaborative networks (both local and nonlocal) have a stronger association with R&D service innovation than spatial proximity to R&D service organizations and other collaborators. However, when these two dimensions are interacted, they are shown to function as substitutes. The paper also demonstrates that the relationship between spatial proximity and networking varies across three dimensions: local versus nonlocal networking, the type of relationship (client, supplier, competitor, and research institutes and university), and the type of network connectivity—brokerage versus closure.</p>","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":"65 1","pages":"135-155"},"PeriodicalIF":3.2,"publicationDate":"2024-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143116620","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Temperature fluctuations, climate uncertainty, and financing hindrance","authors":"Qingyang Wu, Muhammad Shahbaz, Ioannis Kyriakou","doi":"10.1111/jors.12733","DOIUrl":"https://doi.org/10.1111/jors.12733","url":null,"abstract":"<p>Undesirable temperature fluctuations pose significant financial risks for enterprises. By merging fine-grained meteorological data with a panel of publicly listed firms, we delve into the relationship between temperature volatility and financing constraints. Our analysis reveals a positive correlation between temperature fluctuations and increasingly stringent financing limitations. State-owned or large-scale enterprises endowed with greater resources and risk diversification mechanisms are more likely to counteract the adverse effects of temperature volatility. Furthermore, we furnish evidence indicating that temperature fluctuations exert a substantial influence on corporate labor productivity. In response, companies tend to expand their workforce and elevate wages during the fiscal year. Faced with dwindling income and escalating operational costs, enterprises significantly amplify their insurance expenditures. The pronounced escalation in default risk and borrowing costs could undermine investors' sanguine profit expectations, subsequently prompting declines in firms' price-to-earnings and price-to-book ratios. Our study underscores the imperative for executive management teams to prudently account for climate change-induced financing constraints when devising investment and production strategies.</p>","PeriodicalId":48059,"journal":{"name":"Journal of Regional Science","volume":"65 1","pages":"112-134"},"PeriodicalIF":3.2,"publicationDate":"2024-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jors.12733","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143115178","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}