SOMETIMES CLOSE IS GOOD ENOUGH: THE VALUE OF NEARBY ENVIRONMENTAL AMENITIES*

ABSTRACT An extensive empirical literature exists, showing that variations in region‐specific amenities can account for persistent differences in real wages across regions. However, this literature has considered only amenities in the same location as the household. This paper argues that environmental amenities at some distance from but accessible to urban areas may lead to negative compensating wage differentials. We use a general equilibrium framework and data from the 1995 Current Population Survey to calculate implicit amenity prices based on measures of distance to environmental amenities. Our results suggest that amenities outside the metropolitan area do generate compensating wage differentials, as workers are willing to accept lower wages to live in accessible proximity to “nice” places. This implies that these places provide a positive externality to those communities that find them accessible. The estimated effects are quantitatively important, suggesting that these externalities should be taken into account in policy making.     

Determinants of Residential Location Choice: How Important Are Local Public Goods in Attracting Homeowners to Central City Locations?*

Abstract. A hybrid conditional logit choice model is estimated using data on the characteristics and destination of homeowners who engaged in intrametropolitan moves among 17 school districts within the Columbus, Ohio area in 1995. The model is used to test the relative influence of local fiscal and public goods versus household‐level characteristics in determining household location choices across central city and suburban school districts. Results provide evidence of both a “natural evolution” of households to the suburbs, due to job location, residential filtering, and household income and lifecycle effects, and “flight from blight,” due to lower school quality, higher crime levels, and lower average income levels in the city. In comparing the magnitudes of these variables, we find that school quality exerts the strongest influence: a 1‐percent increase in the school quality of the city district increases the probability of choosing a city residence by 3.7 percent. In contrast, the effects of household income and other individual characteristics are relatively modest. The findings provide support for a “flight from blight” suburbanization process that is dominated by differences in neighborhood quality between the city and suburbs. An implication is that investments that promote central city development and reduce suburbanization are justified on efficiency grounds if negative externalities are generated by increased concentration of poverty, crime, and low school quality.     

Location and Growth in the Brazilian Northeast

Abstract Clustering of economic performance across jurisdictions has generated considerable research on the spillovers and linkages among geographical neighbors. Much of this work, however, has been aspatial, implying that the influence of location attributes on growth has been largely ignored. In this paper, we examine the contribution of location to regional economic growth using municipio‐level data for the Brazilian Northeast—a historically lagging region of the country. We test if productivity among northeastern municipios is converging to a steady state and whether spatial externalities are linked to productivity growth in individual municipios. We find that, conditional on structural characteristics, productivity among municipios is converging at about 3 percent per year. Further, productivity in individual municipios is positively associated with own‐structural characteristics but negatively associated with productivity growth in neighboring municipios. This means that there are negative spatial externalities coming from productivity improvements in neighboring regions.     

Industrial clusters,organized crime,and productivity growth in Italian SMEs

We examine whether organized crime affects firms’ performance (defined using Total Factor Productivity growth) both directly and indirectly, by downsizing the positive externalities arising from the geographic concentration of (intra‐ and inter‐industry) market‐related firms. The analysis uses a large sample of Italian small‐ and medium‐sized manufacturing firms over the period 2010–2013. The results highlight the negative direct effects of organized crime on firms’ productivity growth. Any positive effect derived from industrial clustering is thoroughly debilitated by a strong presence of organized crime, and the negative moderation effect of organized crime on productivity growth is greater for smaller than for larger firms.     

Does EU cohesion policy work? Theory and evidence

This paper evaluates the effectiveness of European Cohesion Policy in the regions of 12 EU countries in the period 1991–2008, on the basis of a spatial growth model, which allows for the identification of both direct and indirect effects of EU funds on GDP per worker growth. We find that “Objective 1” funds are characterized by strong spatial externalities and a positive and concave effect on the growth of GDP per worker, which reaches a peak at the ratio funds/GDP of approximately 3 percent and becomes non‐significant after 4 percent. “Objective 2” and “Cohesion” funds have nonsignificant effects, while all the other funds exert a positive and significant effect, but their size is very limited. EU Cohesion Policy, moreover, appears to have increased its effectiveness over time. In the period 2000–2006 Objective 1 funds are estimated to have a median multiplier equal to 1.52, and to have added 0.37 percent to the GDP per worker growth. Overall, in the period 1991–2008, funds are estimated to have added 1.4 percent to the median annual growth, and to have reduced regional disparities of 8 basis points in terms of the Gini index.     

What drives the spatial wage premium in formal and informal labor markets? The case of Ecuador

This article investigates the incidence of agglomeration externalities in Ecuador, a small-sized, middle-income developing country. In particular, we analyze the role of the informal sector within these relations, since informal employment accounts for a significant part of total employment in the developing countries. Using individual level data and instrumental variable techniques, we investigate the impact of spatial externalities, in terms of population density, local specialization and urban size, on the wages of workers in Ecuadorian cities. The results show that spatial externalities matter also for a small developing country. Moreover, analysis of the interaction between spatial externalities and informality shows that, on average, workers employed in the informal sector do not enjoy significant benefits from agglomeration externalities. Finally, by investigating the possible channels behind spatial agglomeration gains we show that the advantages from agglomeration for formal sector workers may well be accounted for by better job-quality matches and, to a lesser extent, by learning externalities. For informal sector workers, our findings also suggest possible gains from job changes, which offset a penalty for remaining employed in the same occupation.     

Scale economies and the geographic concentration of industry

In recent empirical literature on spatial agglomeration, manypapers find evidence consistent with location-specific externalitiesof some sort. Our willingness to accept evidence of agglomerationeconomies depends on how well key estimation problems have beenaddressed. Three issues are particularly troublesome for identifyingagglomeration effects: unobserved regional characteristics,simultaneity in regional data, and multiple sources of externalities.Two empirical results appear to be robust to problems createdby the first two issues: (a) individual wages are increasingin the presence of more-educated workers in the local laborforce, which is consistent with localized human-capital externalities,and (b) long-run industry growth is higher in locations witha wider range of industrial activities, which suggests thatfirms benefit from being in more diverse urban environments.Other evidence is supportive of agglomeration effects relatedto regional demand linkages and short-run, industry-specificexternalities.     

QUANTIFYING KNOWLEDGE SPILLOVERS USING SPATIAL ECONOMETRIC MODELS

ABSTRACT This paper seeks to develop our understanding of the somewhat diffuse nature of technological externalities and space by associating a geographical dimension with the sectoral dimension. Using a panel data set containing French patents as well as private and public research expenditures by industry and region over the period from 1992 to 2000, this paper estimates a knowledge production function. The region‐ and industry‐specific nature of the sample data allows us to empirically examine spatial spillovers associated with public and private research expenditures in own‐ and other‐industry sectors for our sample of 94 French regions. We find that the largest direct and indirect effects are associated with private R&D activity that spills across industry boundaries. However, since Jacobs externalities decrease more drastically with distance than MAR externalities, our results also point to different optimal strategies for regional versus national officials.     

JOB CHAINS AND WAGE CURVES: WORKER MOBILITY AND MARSHALLIAN SURPLUSES IN EVALUATING REGIONAL EMPLOYMENT GROWTH*

ABSTRACT In theory, new regional jobs yield two distinct sources of welfare gains to workers: (1) mobility gains achieved by workers as they move up job chains and (2) traditional Marshallian surpluses enjoyed by all workers as labor markets tighten. In the past, we have argued that the second channel is likely to be small relative to the first. This paper integrates a chain model (using PSID job change data) with a modified‐Marshallian model based on “wage curves” (estimated from CPS data) to formalize and test that argument. High wage jobs with modest wage–unemployment elasticities show Marshallian effects only 10 percent to 20 percent the size of mobility effects. Low wage jobs with somewhat higher elasticities show Marshallian effects from 40 percent to 70 percent the size of mobility effects.     

Dealing with Timing and Synchronization in Opportunities for Joint Activity Participation. 公共活动参与机会中实时性与同步性处理

The ability of people to access opportunities offered by the built environment is circumscribed by various sets of space–time constraints, including the requirements to meet other persons at particular times and places to undertake activities together. While models of space–time accessibility recognize that joint activities may constrain the performance of activities in space and time, their specifications do not explicitly acknowledge the opportunities that individuals of a group have for joint activity participation. Therefore, this article focuses on joint activity participation and argues that collective activity decisions are the outcome of a complex process involving various aspects of timing, synchronization, and social hierarchy. The utility‐theoretic model proposed here quantifies the extent to which opportunities can be jointly accessed by a particular group of people within a specific time period. Central to the approach are three key variables: the attractiveness of an opportunity, the time available for activity participation, and the travel time to an activity location. Because of the multiperson character of joint activities, the determination of these variables is subject to individual preferences, privileges, and power differentials within a group. Specific attention is given to how time‐of‐day and synchronization effects influence the opportunities accessible to a group of individuals. The impact of these factors on joint accessibility is illustrated by a real‐world example of an everyday rendezvous scenario. The outcomes of a simulation exercise suggest that time‐of‐day and synchronization effects significantly affect the benefits that can be gained from opportunities for joint activities.     

AGGLOMERATION EXTERNALITIES,PRODUCTIVITY, AND TECHNICAL INEFFICIENCY*

ABSTRACT Agglomeration externalities can have positive effects on both the production possibility frontier and technical inefficiency of firms. Increased levels of localized knowledge spillovers and substitution of internal inputs with external inputs may lead to fewer errors in decision‐making and execution of production tasks, thus causing firms to become technically more efficient relative to the production frontier. When we estimate a stochastic frontier production model on a large panel of salmon aquaculture farms, we find econometric support for positive agglomeration externalities on both the production frontier and technical inefficiency.     

Determinants of Organizational Failure in the Milwaukee School Voucher Program

In this article, we utilize 25 years of data on the Milwaukee voucher program to test the relationships among organizational liabilities of newness, institutional affiliation, market‐share, and regulatory environment on the cumulative risk of school failure. Overall, we find that 41 percent of all private voucher schools operating in Milwaukee between 1991 and 2015 failed. Start‐up voucher schools, and those unaffiliated with a larger institution, have comparatively higher failure risk over time. The results of our analysis shed light onto one of the long‐term impacts of a public policy reform premised on social entrepreneurship. We conclude that policymakers should consider the consequences of organizational failure when utilizing nongovernment entities in the provision of public goods, and that scholars focus increased attention to understanding the negative externalities created by public entrepreneurship.     

AUTOMOBILE USE AND LOCATIONAL INTERDEPENDENCIES

ABSTRACT. Congestion and pollution externalities from automobile use are simultaneously included in an urban monocentric model. The externalities enter household utility functions directly, and result in a complex interdependency in household location decisions in the city. Implications of the model are drawn out by a simulation and complete sensitivity analysis. The two unpriced externalities are examined for their impact on urban structure, and contrasted with each other. Also, the effect of changes in speed of travel are examined for the impact on urban structure. Speed affects the level of both external effects, and is affected by location decisions.     

AGGLOMERATION EFFECTS IN COLOMBIA

I estimate an elasticity of wages with respect to city population of about 5 percent for Colombian cities. This finding is robust to a number of econometric concerns. The second main finding is a negative effect of market access on wages. Third main finding regards stronger agglomeration effects in the informal sector. In turn, this explains a range of other negative findings, including only weak evidence in favor of human capital externalities, no evidence of a complementarity between cities and skills, and an absence of learning effects. I do not find measurable effects of roads or amenities on wages either.     

WHY ARE URBAN TRAVEL TIMES SO STABLE?

Personal travel time in U.S. urban areas has been stable, clashing with the assertion that urban sprawl greatly lengthens travel. Average commute time rises by 7.7 percent with each cross‐sectional doubling of Metropolitan Statistical Area (MSA) jobs. Using the RELU‐TRAN structural computable general equilibrium model of the Chicago MSA, we simulate the equilibrium effects of a 24 percent population increase projected from 2000 to 2030 by the Chicago Metropolitan Agency for Planning. If no new road capacity is added, then congestion per mile increases. Although the urbanized land area increases by 19 percent, indicating sprawl, the vehicle miles traveled (VMT) per car‐trip decreases by 1.31 percent and the VMT per car‐trip to work decreases by 2.78 percent. Car travel time increases by only 6.25 percent and commuting time by only 4.54 percent, from 30.3 minutes in 2000 to 31.7 in 2030 or 3.4 seconds per year. We further explore the effects of new road capacity, gasoline prices, public transit speed, fuel economy gains, limits on suburban construction, and importantly, the cross‐elasticity of public transit use with respect to car times. The availability of public transportation, economizing on nonwork travel, and land use adjustments that increase job‐residence proximity keep times stable.     

学区化外部性对城市空间的影响

本文分析了学区房和学区的不同意义,进而对学区的正负外部性进行了解析,认为学区、学校、个人、政府间复杂的博弈关系最终导致了城市中的社会空间分异和居住空间分异的加强。在梳理发达国家主要城市经验、对比北京市与剑桥市的学区发展基础上,指出当前的划区政策增强了学区的稀缺性,却没有增加公平性,从而助推房价的高涨。为了更好地促进教育均等化实现,政府应努力提高优质教育学校的数量;形成资本性收入在学校和市场间的合理流动与分配;废弃以学区为主实施优质学区管理的办法,实施学校分层化管理,从而促进教育公平性和对人力资源开发这一综合目标的实现。     

NEW FRONTIERS OF IMMIGRATION RESEARCH: CITIES AND FIRMS*

ABSTRACT The increase in international migration to rich countries during the last two decades has spurred research and policy questions. The economic determinants of national and international migrations and the impact of immigrants on labor markets have been investigated by economists, geographers, and regional scientists for a long time. Recently, however, the availability of new and detailed individual data on migrants across regions and localities in several countries has made it possible to analyze the impact of immigration on a richer set of socio‐economic outcomes. Two avenues of research have emerged as particularly interesting and are the focus of this special issue. First, international migrants are particularly concentrated in urban areas but their impact on some outcomes that are particularly relevant in cities (such as crime and housing markets) are not well understood yet. Second, immigrants not only increase labor supply but also affect firms’ productivity, survival and growth through their impact on localized externalities. These two themes link all the contributions of this special issue and show new directions for future research on the impact of immigration.     

Spatial and environmental impacts on adverse birth outcomes in Ontario

This study assesses the overall spatial variations and neighbourhood‐level “hot spots” of low birth weight and preterm birth incidence within three public health units in Ontario, Canada. The analysis uses a stepwise approach of intra‐class correlation analysis, a spatial scan statistic, and multilevel spatial modeling. Results show that neighbourhood level variation accounts for only 2–3 percent of the total variation of adverse birth outcomes in the study area. However, strong spatial autocorrelation is observed at the neighbourhood level, and spatial clusters of relatively high adverse birth outcome rates exist in areas that are associated with environmental risks, including pollution sources and proximity to highways. Thus, although estimated neighbourhood impacts on adverse birth outcomes are small compared with those of individual‐level risks, local high potential environmental risk areas are identifiable. Environmental surveillance and spatial statistical analysis should be conducted regularly by local health authorities to identify and monitor the impact of environmental changes on health in general and on birth outcomes in particular. Specific community‐oriented health interventions may be required to reduce observed local health impacts.     

IS PRODUCTIVITY HIGHER IN BRITISH CITIES?*

ABSTRACT This paper examines the determinants of total factor productivity (TFP) using a GB plant‐level data set. The main findings relate to whether spatial spillovers and “place” effects are important: plants located in cities generally perform better than plants in the same region outside of these cities; but with the exception of Bristol, no city has significantly higher TFP levels than the South East. This suggests that spatial externalities associated with city location are not as important as the benefits of being situated in the South East region.     

Scale,Factor Analyses,and Neighborhood Effects

Studies of potential neighborhood effects have been constrained in most situations by the absence of small‐area data generated to characterize the local contexts within which individuals operate. Using small‐area data from the U.K. Census, this paper Illustrates the creation of bespoke neighborhoods—local areas defined separately for each individual in a sample survey—at a variety of scales, and their characterization using factor analysis techniques. Theories of neighborhood effects are uncertain as to the spatial scale at which the relevant processes operate, hence the value of exploring patterns consistent with those processes at a range of spatial scales. One problem with such comparative study is the incommensurability of regression coefficients derived from analyses using factor scores as the independent variables. The work reported here adapts a procedure introduced for reconstituting partial regression coefficients to circumvent that problem, and illustrates that patterns of voting at a recent British general election showed neighborhood‐effect‐like patterns at two separate scales simultaneously—with individual voter characteristics held constant.