Earthquakes,grants, and public expenditure: How municipalities respond to natural disasters

We analyze the response of municipalities to the occurrence of natural disasters in terms of spending behavior, use of upper-tier transfers and recovery, using balance sheet data of about 8,000 Italian municipalities for the period 2000–2015, and the universe of earthquakes events. We find evidence of increasing expenditure for about 12 years after the shocks, with asymmetric responses between earthquake-related and unconditional grants, and heterogeneous flypaper effects across the country. While in northern municipalities expenditure tends to regress to pre-earthquake levels, southern municipalities stick to higher expenditure levels when grants drop. This evidence is coupled with a faster recovery of private income and housing prices in northern municipalities.     

The ripple effects of large-scale transport infrastructure investment

We analyze the general equilibrium effects of an asymmetric decrease in transport costs, combining a large-scale spatial dynamic general equilibrium model for 267 European NUTS-2 regions with a detailed transport model at the level of individual road segments. As a case study, we consider the impact of the road infrastructure investments in Central and Eastern Europe of the European Cohesion Policy. Our analysis suggests that the decrease in transportation costs benefits the targeted regions via substantial increases in gross domestic product (GDP) and welfare compared to the baseline, and a small increase in population. The geographic information embedded in the transport model leads to relatively large predicted benefits in peripheral countries such as Greece and Finland, which hardly receive funds, but whose trade links cross Central and Eastern Europe, generating profit from the investments there. The richer, Western European nontargeted regions also enjoy a higher GDP after the investment in the East, but these effects are smaller. Thus, the policy reduces interregional disparities. There are rippled patterns in the predicted policy spillovers. In nontargeted countries, regions trading more intensely with regions where the investment is taking place on average benefit more compared to other regions within the same country, but also compared to neighboring regions across an international border. We uncover that regions importing goods from Central and Eastern Europe enjoy the largest spillovers. These regions become more competitive and expand exports, to the detriment of other regions in the same country.     

Inter- and intraregional inequality in a spatial economy

In this paper, we develop a three-region economic geography model with workers of heterogeneous skills and mobility rates to consider how first-nature, regional differences impact both inter- and intraregional inequality. In our model, the skill premium within a region summarizes both the degree of intraregional inequality between mobile, skilled workers and immobile, unskilled workers and the interregional inequality through differences in the welfare of unskilled workers across regions. Regions with the highest skill premium have the greatest degree of intraregional inequality and provide the lowest level of welfare to unskilled workers, relative to other regions. We find that the skill premium will be higher in regions with a greater supply of unskilled labor, lower supply of housing, or are more remote. An increase in a region's housing supply or centrality will lower intraregional inequality and raise the welfare of the local, unskilled workforce. However, the magnitude of these changes are declining in the initial number of skilled workers in the region. The model is extended to consider imperfectly elastic housing supply. The larger the price elasticity of housing, the larger the range of values, such that more populated regions will host a disproportionate share of skilled workers, have lower levels of intraregional inequality, and provide higher levels of welfare for unskilled workers.     

Patterns of exchange and the social production of pigs in highland new guinea: Their relevance to questions about the origins and evolution of agriculture

In recent years, cultural anthropologists have made notable progress in understanding the bewildering variety of material exchange transactions found among the aboriginal populations of highland New Guinea. One of the major findings of this work is that competitive exchange behavior may bring in its wake alterations in agronomic practices involving an intensification of production. That intensification is primarily a product of social behavior, rather than an adaptation to climate change or population pressure, is a significant conclusion that should influence the thinking of archaeologists as they investigate past episodes of agronomic change, including the origins of agriculture.     

Linking polycentricity concepts to periphery: implications for an integrative Austrian strategic spatial planning practice

This contribution searches for a regional planning conception that allows for a mutual recognition and practical translation between strategies for urban regions and peripheries beyond separate urban and rural categories; taking the Austrian strategic spatial planning context as the example. For this, various notions of polycentricity are discussed and assessed with regard to periphery. The Austrian strategic spatial development concept ÖREK sets out a focused work programme with changing responsibilities and participation of actors. The objectives are targeted and the processes are implementation oriented. Amongst other topics, urban regional issues and peripheral, declining regions are worked on separately. A conceptually integrative, plan-like strategic instrument across the topics and for the whole of Austria is lacking. The ESPON notion of ‘inner peripheries’ is proposed as a complementary concept to the ESDP notion of polycentricity, helping to create a bridge between urban regional and periphery strategies. This has the potential to guide strategic planning practice efforts in Austria towards a yet missing strategic spatial plan for the whole of the country beyond urban and rural categories. Practice relevant conclusions related to the case of Austrian strategic spatial planning are drawn and a need for further, comparative research in a European context is identified.     

Internal borders and external factors in outermost island regions. The case of the Canary Islands

The defining element of island regions is their isolation, the separation of the islands from the mainland; there is an inherent notion of natural border. This condition has preserved ecosystems and protected against outside threats, stimulating ‘coevolution’ between man and the environment, a fundamental ingredient of sustainability. But insularity also means the evident added costs of access to markets which, together with territorial limits and the scarcity of basic resources, especially on small islands, hinders their socioeconomic development. These costs are even greater in the case of outlying islands, which suffer from a ‘double insularity’ in the form of both external and internal borders. For this reason, it is common for governments to establish various forms of support, from tax exemptions to the creation of permanent aid funds, like those implemented by the European Union for the outermost regions. This article discusses these aspects in the case of the Canary Islands, an example of a European outermost island region. The findings show that the support measures have not always been favourable for all the islands.     

Evolution of knowledge bases in European regions: searching for spatial regularities and links with innovation performance

This paper aims at a greater comprehension of the distribution of differentiated knowledge bases and their association with innovation performance. Drawing on evolutionary economic geography, we applied a combinatorial and dynamic view on knowledge bases. The main contribution is the examination of changes and transformations of knowledge bases over time in particular group of regions in Europe and links with innovation performance. Our study revealed systematic regularities between regions with different innovation performance and their knowledge bases. With decreasing regional innovation performance the volatility of knowledge bases over time increases. Innovation leaders evinced stability over time and the most balanced composition of knowledge bases (compared with Central and Eastern Europe regions). Western European countries and regions exhibit the most balanced structure of knowledge bases. An important complementarity and synergy has been identified in the close relatedness of the symbolic knowledge base to the analytical knowledge base. The highest intensity of SME cooperation takes place in regions with a strong analytical base and in regions with the most balanced mix among all three bases (particularly in the UK, the Netherlands and Belgium. Underperforming in innovation show a balanced mix of synthetic and symbolic knowledge bases.     

Place-based innovation policy for industrial diversification in regions

New industrial innovation policies like smart specialization aim at boosting economic growth by diversification towards more complex and higher value economic activities. This paper proposes a conceptual and analytical framework to support the design and implementation of such policies considering place-specific preconditions, particularly the differentiation of the regional system of innovation and entrepreneurship and the degree of current industrial diversification. The paper expands on the links between these preconditions and the barriers and opportunities for industrial diversification. Consequently, it proposes an archetypical place-based policy framework covering overall policy objectives as well as measures at the level of actors, networks, and the institutional and organizational support structures.     

Spatial and sectoral differentiation of support to innovative companies from EU funds in Czechia

This paper aims to introduce a case study of Czechia in distribution of the EU funds and their spatial patterns. EU funds receive plenty attention from both European society and the scientific community. However, there is a lack of detailed evaluations of spatial and sectoral differentiation, which might bring a better understanding to the whole EU funds system. This paper attempts to fill this gap with a method of geographical differentiation analysis of the Czech operational programme Enterprise and Innovations 2007–15, which should increase the competitiveness of industry and develop services for commercial activities. Historically, subsidies often go to peripheral regions at the borderland with Slovakia and Poland, while regions along the borders with Germany and Austria receive only a low level of support. Jurisdictions of the major recipients from hi-tech sectors are mainly in the close vicinity of the largest cities (Praha, Brno), which are natural centres of high technologically demanding sectors, but a high share of high-tech subsidies goes to some peripheral districts as well. These findings can contribute not only to the academic discussion about contradictory developmental impacts of subsidies but to the all-European debate on the EU funds purposes as well.