{"title":"Centrality bias in inter-city trade","authors":"Tomoya Mori , Jens Wrona","doi":"10.1016/j.regsciurbeco.2024.104060","DOIUrl":"10.1016/j.regsciurbeco.2024.104060","url":null,"abstract":"<div><div>Using Japanese inter-city trade data, we find a substantial centrality bias in aggregate gravity estimations: Shipments from large cities (central places) to their hinterland are 50%–125% larger than predicted by gravity forces. We argue that this discrepancy results from aggregating across industries, that concentrate in a few central places, which predominantly serve their respective hinterlands. Decomposing the centrality bias along the margins of our data, we attribute most of the centrality bias to substantially larger extensive industry margins in exports from larger cities to their smaller hinterland cities than vice versa.</div></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"109 ","pages":"Article 104060"},"PeriodicalIF":3.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142560597","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The fiscal effects of immigration on local governments: Revisiting the Mariel Boatlift","authors":"Travis St. Clair","doi":"10.1016/j.regsciurbeco.2024.104053","DOIUrl":"10.1016/j.regsciurbeco.2024.104053","url":null,"abstract":"<div><div>Immigration raises important political and economic questions, yet there remains considerable disagreement about its short- and long-term consequences. This paper examines the fiscal consequences of immigration for local governments. Previous work has highlighted the gap between the long-term economic benefits of immigration and the short-term fiscal burden posed by recent arrivals, however several influential estimates based on cash-flow accounting suffer from potential bias. I use a quasi-experimental approach to re-examine a famous case: the large wave of Cuban refugees that landed in Miami in 1980, otherwise known as the Mariel Boatlift. Using a synthetic control design, I find that per-pupil education costs increased in Miami in the aftermath of the Boatlift, financed by an increase in state transfers. These effects persisted for at least ten years. The results shed light on the heterogeneous impacts of immigration over time and space.</div></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"109 ","pages":"Article 104053"},"PeriodicalIF":3.5,"publicationDate":"2024-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142529564","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Public firms on an international border: A model of spatial price discrimination","authors":"John S. Heywood , Zheng Wang","doi":"10.1016/j.regsciurbeco.2024.104054","DOIUrl":"10.1016/j.regsciurbeco.2024.104054","url":null,"abstract":"<div><div>This paper uniquely examines an international mixed oligopoly in a model of spatial price discrimination. It isolates the importance of the location of the border showing a variety of equilibria depending on the nationality and placement of the private rivals. While the presence of a public firm often improves domestic welfare, it need not. Moreover, a prisoner's dilemma can exist in which each country would benefit from the privatization of both public firms but neither country has a unilateral incentive to privatize. The implications are discussed.</div></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"109 ","pages":"Article 104054"},"PeriodicalIF":3.5,"publicationDate":"2024-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142438222","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Spatial externalities, R&D spillovers, and endogenous technological change","authors":"Spyridon Tsangaris , Anastasios Xepapadeas , Athanasios N. Yannacopoulos , Luca Salvati","doi":"10.1016/j.regsciurbeco.2024.104055","DOIUrl":"10.1016/j.regsciurbeco.2024.104055","url":null,"abstract":"<div><div>Forward-looking economic agents operating in a finite continuous geographic area choose how much to innovate at each point in time and space. Based on this assumption, the present study incorporates spatial interactions in endogenous growth models, addressing the criticism that such models are inconsistent with empirical evidence. More specifically, we introduce spatial production spillovers, knowledge diffusion across space, and the capability for spatial heterogeneity into a standard expanding variety growth model based on R&D. We study the properties of equilibrium and optimal allocations and argue that the characteristics are different from those of the non-spatial model, which alter the appropriate policy measures. Finally, we provide numerical examples demonstrating the importance of spatial dependent policy measures in achieving a balanced regional development.</div></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"109 ","pages":"Article 104055"},"PeriodicalIF":3.5,"publicationDate":"2024-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142529563","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Brand loyalty, managerial delegation and position choices: Bertrand versus Cournot competition","authors":"Tai-Liang Chen , Mingjie Yang","doi":"10.1016/j.regsciurbeco.2024.104052","DOIUrl":"10.1016/j.regsciurbeco.2024.104052","url":null,"abstract":"<div><div>In a mature product market, brands compete aggressively with each other using a marketing mix that includes position, pricing, and managerial delegation to win loyal customers and gain a larger market share. We examine the effects of brand loyalty on the endogenous choices of managerial compensation contracts and optimal brand positions in an uncovered market model. We analytically compare 18 symmetric and asymmetric mutual delegation cases associated with three delegation schemes—no delegation, sales delegation and relative performance (RP) delegation—in the Bertrand and Cournot competition modes. In the case of symmetric mutual contracts, under Bertrand competition, a price commitment effect resulting from the delegation decision weakens the competition, inducing higher prices and profits for both brands regardless of the type of delegation scheme. Under Cournot competition, delegation decisions can be viewed as signals to promote competition, intensifying the degree of competition. To acquire more loyal customers and higher profits, mutual RP delegation is the dominant choice under Bertrand competition, whereas mutual profit maximization is the dominant choice under Cournot competition. Furthermore, the social welfare is the highest when both brands optimally choose the RP delegation under Bertrand or optimally choose no delegation under Cournot; however, consumer surpluses are the lowest in both optimal cases.</div></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"109 ","pages":"Article 104052"},"PeriodicalIF":3.5,"publicationDate":"2024-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142426474","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Miquel-Àngel Garcia-López , Elisabet Viladecans-Marsal
{"title":"The role of historic amenities in shaping cities","authors":"Miquel-Àngel Garcia-López , Elisabet Viladecans-Marsal","doi":"10.1016/j.regsciurbeco.2024.104042","DOIUrl":"10.1016/j.regsciurbeco.2024.104042","url":null,"abstract":"<div><p>The existence of amenities matters to understanding people’s residential choices. Our theoretical model extends the standard urban model by introducing exogenous amenities to explain population allocation within cities. To estimate the model predictions, we focus on historic amenities using detailed geolocated data for 579 European cities. We analyze how the shape of city centers endowed or not endowed with these amenities is affected. We measure historic amenities with the location of buildings from the Roman, Medieval, and Renaissance–Baroque periods. Our results show that cities with historic buildings in their centers have steeper population density gradients, are more compact and centralized, and have been less affected by the suburbanization processes caused by transportation improvements. Heterogeneity analyses show that the quantity and the quality of historic buildings also matter. Several robustness checks controlling for natural and modern amenities and testing for the spatial scope of these amenities verify our main results.</p></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"109 ","pages":"Article 104042"},"PeriodicalIF":3.5,"publicationDate":"2024-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142238073","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Capital as an anchor of agricultural employment: Evidence from the 1975 frost","authors":"Bruno Barsanetti","doi":"10.1016/j.regsciurbeco.2024.104041","DOIUrl":"10.1016/j.regsciurbeco.2024.104041","url":null,"abstract":"<div><p>How do temporary shocks affect the spatial distribution of employment in agriculture? I investigate this question by examining the 1975 frost that damaged coffee trees in Brazil. I find that the frost persistently affected the spatial distribution of employment in agriculture. To identify the effects of the capital destruction from the frost, I compare changes in agricultural employment across local economies that had different coffee tree densities right before the frost and that were differently affected by the extreme weather. The frost resulted in a persistent decline in agricultural employment. The findings are consistent with a history versus expectations model in which fixed and specific capital (such as coffee trees) prevents multiple equilibria despite strategic complementarities in crop choice.</p></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"108 ","pages":"Article 104041"},"PeriodicalIF":3.5,"publicationDate":"2024-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141934269","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Annekatrin Niebuhr , Jan Cornelius Peters , Duncan H.W. Roth
{"title":"Dynamic agglomeration effects of foreigners and natives – The role of experience in high-quality sectors, tasks and establishments","authors":"Annekatrin Niebuhr , Jan Cornelius Peters , Duncan H.W. Roth","doi":"10.1016/j.regsciurbeco.2024.104040","DOIUrl":"10.1016/j.regsciurbeco.2024.104040","url":null,"abstract":"<div><p>We analyze whether the benefits of work experience that was acquired in denser locations can be explained by the quality of jobs that can be found in agglomerations using administrative data on individual employment biographies of workers in Germany. We find that 79% of the premium for work experience gained in the densest regions can be ascribed to the sectors, tasks and establishments in which experience was acquired. Moreover, we find that foreign and native workers, on average, benefit to a similar extent from dynamic agglomeration effects. However, low-skilled foreign workers receive a lower return to experience gained in dense regions than observationally identical natives. This difference can be explained by the fact that the former gain work experience in lower-quality jobs.</p></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"108 ","pages":"Article 104040"},"PeriodicalIF":3.5,"publicationDate":"2024-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0166046224000711/pdfft?md5=01c4bc9ac72526a9d69712c25628c20a&pid=1-s2.0-S0166046224000711-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141847238","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Revisiting property tax capitalization","authors":"Xueying Lyu","doi":"10.1016/j.regsciurbeco.2024.104039","DOIUrl":"https://doi.org/10.1016/j.regsciurbeco.2024.104039","url":null,"abstract":"<div><p>This paper investigates the extent of property tax capitalization in the context of a progressive property tax pilot in Shanghai. I utilize a difference-in-differences approach by comparing neighborhoods with different tax rates before and after the implementation of the property taxes. Neighborhoods with a 0.2 percentage point higher marginal property tax rate experience a roughly 2.73% decrease in housing prices relative to their counterparts. The result reflects that at least 71% of expected property tax liabilities are capitalized into housing prices in a year. These changes also imply a large wealth redistribution as large as 2.68 years of average disposable income across homeowners.</p></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"108 ","pages":"Article 104039"},"PeriodicalIF":3.5,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141592747","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Re-evaluating the urban wage premium: The changing roles of geographical and job transitions for women and men","authors":"Sabine D'Costa","doi":"10.1016/j.regsciurbeco.2024.104038","DOIUrl":"10.1016/j.regsciurbeco.2024.104038","url":null,"abstract":"<div><p>This paper investigates gender as a new source of heterogeneity in the urban wage premium, using a representative panel of 1.2 million worker observations in Great Britain over the period 1999–2019. Pre-2008, women's urban wage premium was more than twice as large as men's (2.8% versus 1.2%), but this difference disappears during the Financial Crisis as women's urban wage premium drastically and permanently drops. This drop is due to the disappearance of women's relative sharing advantages. Moreover, contrary to men, women's urban wage premium is now driven by a wage penalty incurred when changing occupation while transitioning from urban to rural jobs.</p></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"108 ","pages":"Article 104038"},"PeriodicalIF":3.5,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0166046224000693/pdfft?md5=999aa84d8ffb3c3329f2df9e16392859&pid=1-s2.0-S0166046224000693-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141704642","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}