The empirics of economic geography: How to draw policy implications?

Using both reduced-form and structural approaches, the spectrum of policy recommendations that can be drawn from empirical economic geography is pretty large. Reduced-form approaches allow the researchers to consider many variables that impact on regional disparities, as long as they are careful about interpretation and endogeneity issues. Structural approaches have the opposite advantages. Less issues can be simultaneously addressed, but one can be more precise in terms of which intuitions are considered and the underlying mechanisms and effects at work. Many regional policy issues remain unanswered, opening some interesting future lines of research.agglomeration economies; regional policy; structural estimation; instrumental variables

Labor Pooling, Labor Poaching and Spatial Clustering

When firms cluster in the same local labor market, they face a trade-off between the benefits of labor pooling (i.e., access to workers whose knowledge help reduce costs) and the costs of labor poaching (i.e., loss of some key workers to competition and the indirect effect of a higher wage bill to retain the others). We explore this trade-off in a duopoly game. Depending on market size and on the degree of horizontal differentiation between products, we characterize the strategic choices of firms regarding locations, wages, poaching and prices. Our results show that co-location, although it is always efficient, is not in general the equilibrium outcome.Labor pooling, labor poaching, firm clustering, agglomeration

Inferring Missing Citations: A Quantitative Multi-Criteria Ranking of all Journals in Economics

This paper presents a novel ranking of economics journals. Our methodology is the following. First, we construct an index to rank the 304 journals recorded in the Thomson Reuters (JCR) database, for which citation counts exist. This index combines (sophisticated) citation indexes, field of specialization normalized indexes, and a h-index based on Google Scholar citations. Moreover this index puts forward journals in economics. Second, we extend this index to the 898 EconLit non JCR journals. We estimate a model in which the index is explained by the score of the journal's authors and its Google Scholar citations. Finally we use the estimated model to predict the value of the index for the non JCR journals. Therefore we obtain a consistent ranking index of all EconLit journals.Economics of science, Journals assessment, Research citations

The Spatial Distribution of Economic Activities in the European Union

Abstract This paper considers the spatial distribution of economic activities in the European Union. It has three main aims. (i) To describe the data that is available in the EU and give some idea of the rich spatial data sets that are fast becoming available at the national level. (ii) To present descriptive evidence on the location of aggregate activity and particular industries and to consider how these location patterns are changing over time. (iii) To consider the nature of the agglomeration and dispersion forces that determine these patterns and to contrast them to forces acting elsewhere, in particular the US. Our survey suggests that much has been achieved in the wave of empirical work that has occurred in the past decade, but that much work remains to be done.Location, European Union, descriptive statistics, empirical studies

AGGLOMERATION AND THE ADJUSTMENT OF THE SPATIAL ECONOMY

We consider the literatures on urban systems and New Economic Geography to examine questions concerning agglomeration and how areas respond to shocks to the economic environment. We first propose a diagrammatic framework to compare the two approaches. We then use this framework to study a number of extensions and to consider several policy relevant issues.Urban systems

An analysis of the benefits of signal injection for low-speed sensorless control of induction motors

We analyze why low-speed sensorless control of the IM is intrinsically difficult, and what is gained by signal injection. The explanation relies on the control-theoretic concept of observability applied to a general model of the saturated IM. We show that the IM is not observable when the stator speed is zero in the absence of signal injection, but that observability is restored thanks to signal injection and magnetic saturation. The analysis also reveals that existing sensorless algorithms based on signal injection may perform poorly for some IMs under particular operating conditions. The approach is illustrated by simulations and experimental data

Dots to boxes: Do the size and shape of spatial units jeopardize economic geography estimations?

This paper evaluates, in the context of economic geography estimates, the magnitude of the distortions arising from the choice of zoning system, which is also known as the Modifiable Areal Unit Problem (MAUP). We consider three standard economic geography exercises (the analysis of spatial concentration, agglomeration economies, and trade determinants), using various French zoning systems differentiated according to the size and shape of spatial units, which are the two main determinants of the MAUP. While size matters a little, shape does so much less. Both dimensions seem to be of secondary importance compared to specification issues.MAUP ; concentration ;agglomeration ;wage equations ;gravity

DOTS TO BOXES: DO THE SIZE AND SHAPE OF SPATIAL UNITS JEOPARDIZE ECONOMIC GEOGRAPHY ESTIMATIONS?

This paper evaluates, in the context of economic geography estimates, the magnitude of the distortions arising from the choice of zoning system, which is also known as the Modifiable Areal Unit Problem (MAUP). We consider three standard economic geography exercises (the analysis of spatial concentration, agglomeration economies, and trade determinants), using various French zoning systems differentiated according to the size and shape of spatial units, which are the two main determinants of the MAUP. While size matters a little, shape does so much less. Both dimensions seem to be of secondary importance compared to specification issues.MAUP, concentration, agglomeration, wage equations, gravity

Can Business and Social Networks Explain the Border Effect Puzzle?

McCallum (1995) shows in an influential contribution that, even when controlling for the impact of bilateral distance and region size, borders sharply reduce trade volumes between countries. We use in this paper data on bilateral trade flows between 94 French regions, for 10 industries and 2 years (1978 and 1993) to study the magnitude and variations over time of trade impediments, both distance-related and (administrative) border-related. We focus on assessing the role that business and social networks can play in shaping trade patterns and explaining the border effect puzzle. Using a structural econometric approach, we show that intra-national administrative borders significantly affect trade patterns inside France. The impact is of the same order of magnitude as in Wolf (2000) for trade inside the United States. We show that more than 60\% of these (puzzling) intra-national border effects can be explained by the composition of local labour force in terms of birth place (social networks) and by inter-plants connections (business networks). In addition, controlling for these network effects reduces the impact of transport cost on trade flows by a comparable factor. Thus, business and social networks that help to reduce informational trade barriers are shown to be strong determinants of trade patterns and to explain a large part of the border puzzle.gravity, border effects, networks

Product complexity, quality of institutions and the pro-trade effect of immigrants

The paper assesses the trade-creating impact of foreign-born residents on the international imports and exports of the French regions where they are settled. The pro-trade effect of immigrants is investigated along two intertwined dimensions: the complexity of traded goods and the quality of institutions in partner countries. The trade-enhancing impact of immigrants is, on average, more salient when they come from a country with weak institutions. However, this positive impact is especially large on the imports of simple products. When we turn to complex goods, for which the information channel conveyed by immigrants is the most valuable, immigration enhances imports regardless of the quality of institutions in the partner country. Regarding exports, immigrants substitute for weak institutions on both simple and complex goods.trade ; immigration ; quality of institutions ; product complexity ; gravity