Spatial econometrics

Trends in Real Estate Valuation: Spatial Econometrics, Land Values and Sustainability

by Andy Krause

Working Paper Co-Authored with Christoper Bitter

In the aftermath of the recent boom and bust of U.S. real estate, both a re nement and a deeper understanding of real... more In the aftermath of the recent boom and bust of U.S. real estate, both a renement and a deeper understanding of real estate valuation methods have become critical concerns across a number of broad urban-related academic elds. Out of this we see three major trends in the eld of real estate valuation research: 1) the expansion of spatial econometrics; 2) the recognition of the dierences between land values and improvement values; and 3) acknowledgement of value premiums stemming from more sustainable forms of development. This paper oers a brief summary of the latest work in these emerging areas of academic valuation research.

The (un)lucky neighbour: Differences in export performance across Mexico's states

by Octavio Escobar Gamboa

This paper studies the reasons behind the export performance of different Mexican states from 1994 to 2002. Mexican... more This paper studies the reasons behind the export performance of different Mexican states from 1994 to 2002. Mexican exports are divided into two components: (1) foreign market potential; and (2) supply capacity. Results suggest that states that experience an increase in supply capacity are, in most cases, also those with better export expansion. However, results suggest that in most cases, export growth is due mainly to an increase in US demand rather than to an improvement in the states' competitiveness to supply this demand. When looking to the determinants of supply capacity improvements, results suggest the presence of positive neighbouring effects.

Foreign direct investment (FDI) determinants and spatial spillovers across Mexico's states

by Octavio Escobar Gamboa

This article studies the location pattern of foreign direct investment (FDI) in Mexico for the period 1994–2004. An... more This article studies the location pattern of foreign direct investment (FDI) in Mexico for the period 1994–2004. An empirical model is specified based on recent FDI theories. This model is estimated using state-level data and employing spatial econometric techniques. Results suggest that higher education levels and lower delinquency rates are important determinants to attract FDI. Results also suggest a relationship of complementarity between inbound FDI to the host state and inward FDI to its neighboring states.

The impacts of highway expansion on population change: An integrated spatial approach

by Guangqing Chi

Small-Area Population Forecasting: A Spatio-Temporal Regression Approach

by Guangqing Chi

Grouping genetic operators for the delineation of functional areas based on spatial interaction

by José M. Casado-Díaz

Martínez-Bernabeu, L.; Flórez-Revuelta, F. y Casado-Díaz, J.M. (2012) “Grouping genetic operators for the delineation of functional areas based on spatial interaction”, Expert Systems with Applications, Volume 39, Issue 8, 15 June 2012, Pages 6754–6766 - doi:10.1016/j.eswa.2011.12.026.

The delineation of functional economic areas, or market areas, is a combinatorial optimisation problem, defined as the... more The delineation of functional economic areas, or market areas, is a combinatorial optimisation problem, defined as the partition of a given set of indivisible spatial units (covering a territory) into regions with high cohesion and self-containment —in terms of spatial interaction data: flows— under constraints of size, self-containment and/or continuity, typicaly solved with greedy methods. An evolutionary algorithm with many tailored operators for the delimitation of Labour Market Areas was recently proposed. This algorithm allowed finding better solutions but was very time consuming, this hampering its use in large real-world problems.
In this paper we present several group-based mutation operators featuring general unary and binary operations over disjoint groups, tailored to tackle with that problem. A comparative analysis of our approach with a greedy algorithm and the previous evolutionary proposals shows that our algorithm always gives better results concerning both quality and time consumed (except for the greedy), and is able to tackle with large real-world problems in reasonable time.

Keywords: functional areas, local market, evolutionary algorithm, grouping problem, regionalisation, combinatorial optimisation

A missing spatial link in institutional quality

by Fabio Manca

History tells that institutions evolve gradually over time, pushing new ideas across borders and cultures.... more History tells that institutions evolve gradually over time, pushing new ideas across borders and cultures. Globalization is argued to accelerate this process. We examine the spatial links of different political institutions across borders. Applying various tests for spatial proximity, we do not find evidence of contemporaneous spatial links. This result is robust to various measures of distance and of cultural proximity across countries. Instead, when we analyse long-run dynamics, diffusion of institutions seems to occur only gradually

A Spatial Model Incorporating Dynamic, Endogenous Network Interdependence: A Political Science Application

by Aya Kachi

Published in Statistical Methodology (peer-reviewed)

We propose applying the multiparametric spatiotemporal autoregressive (m-STAR) model as a simple approach to... more We propose applying the multiparametric spatiotemporal autoregressive (m-STAR) model as a simple approach to estimating jointly the pattern of connectivity and the strength of contagion by that pattern, including the case where connectivity is endogenous to the dependent variable (selection). We emphasize substantively-theoretically guided (i.e., structural) specifications that can support analyses of estimated spatiotemporal responses to stochastic or covariate shocks and that can distinguish the possible sources of spatial association: common exposure, contagion, and selection (e.g., homophily). We illustrate this approach to dynamic, endogenous interdependence–which parallels models of network–behavior co-evolution in the longitudinal networks literature–with an empirical application that aims to disentangle the roles of economic interdependence, correlated external and internal stimuli, and EU membership in shaping labor market policies in developed democracies in recent years.

TEMAS DE ECONOMÍA REGIONAL Y URBANA: ENFOQUES Y APLICACIONES

by Jose Antonio Huitrón Mendoza

Se trata de una compilación de ejercicios sobre aplicaciones para el análisis en economía regional y urbana.

En este trabajo se presentan una serie de consideraciones teóricas sobre temas asociados con la Economía Urbana y... more En este trabajo se presentan una serie de consideraciones teóricas sobre temas asociados con la Economía Urbana y Regional además de una aplicación asociada a cada una de estas con el fin de demostrar de manera empírica el grado de asociación entre la teoría y la práctica. Los ejercicios que se presentan están encaminados al análisis de la Zona Metropolitana de la Ciudad de México (ZMCM). La estructura del trabajo es sencilla, por cada enfoque se presenta un brevísimo ensayo introductorio al cual le sigue una aplicación. Se considera que los ejercicios están en una fase preparatoria y que pudieran mejorar significativamente haciendo ciertas modificaciones a los mismos.

Research Networks and Inventors’ Mobility as Drivers of Innovation: Evidence from Europe

by Ernest Miguelez

Ernest Miguélez & Rosina Moreno, re-submitted to Regional Studies

Abstract
We investigate the importance of the labour mobility of
inventors, as well as the scale, extent... more Abstract
We investigate the importance of the labour mobility of
inventors, as well as the scale, extent and density of their
collaborative research networks, for regional innovation
outcomes. To do so, we apply a knowledge production
function framework at the regional level and include
inventors’ networks and their labour mobility as regressors.
Our empirical approach takes full account of spatial
interactions by estimating a spatial lag model together, where
necessary, with a spatial error model. In addition, standard
errors are calculated using spatial heteroskedasticity and
autocorrelation consistent estimators to ensure their
robustness in the presence of spatial error autocorrelation
and heteroskedasticity of unknown form. Our results point to
the existence of a robust positive correlation between intraregional
labour mobility and regional innovation, whilst the
relationship with networks is less clear. However, networking
across regions positively correlates with a region’s innovation
intensity.

JEL classification: C8, J61, O31, O33, R1
Keywords: inventors’ mobility, networks of co-inventors, knowledge production function, spatial econometrics, European regions

(Johannes Preiser-Kapeller - Ekaterini Mitsiou) Hierarchies and fractals: Ecclesiastical revenues as indicator for the distribution of relative demographic potential within the cities and regions of the Late Byzantine Empire in the early 14th century

by Johannes Preiser-Kapeller

published in: Byzantina Symmeikta 20 (2010) p. 245-308.

Until now the source material has made it impossible to reconstruct the distribution of economic power and population... more Until now the source material has made it impossible to reconstruct the distribution of economic power and population within the Late Byzantine Empire on a larger scale. Our new analysis of a list of contributions from 33 bishoprics to the Patriarchate of Constantinople from 1324 connects these figures with the economic performance of the respective town and its hinterland; we also demonstrate that the distribution of contributions shows characteristics which are typical for settlement hierarchies and therefore can be used to create the first model for the distribution of demographic and
economic potential in the Byzantine Empire at this time.

Social Networks and Trade of Services: Modeling Interregional Tourism Flows With Spatial and Network Autocorrelation Effects

by Tamara de la Mata

Co-authored with Carlos Llano, Working paper in F.R.E.I.T. nº 277.

Recent literature on border effects has fostered research on informal barriers to trade and the role played by network... more Recent literature on border effects has fostered research on informal barriers to trade and the role played by network dependencies. In relation to social networks, it has been shown that intensity of trade in goods is positively correlated with migration flows between pairs of countries/regions. In this study we investigate if such a relation also holds for interregional trade of services, focusing on the case of the Spanish intra and interregional monetary flows generated by the domestic tourism sector. With this aim, we develop a gravity model that captures spatial and network dependence attributable to demographic linkages between regions. The network linkage structure is derived using origin regions for the stock of immigrants living in each region. The results indicate that: the intensity of monetary flows generated by the domestic tourism sector depends positively on the gross value added of the Tourism sector; population and income levels of the regions of origin, and negatively on the travel distance between regions. Network direct effects, as well as indirect spatial or network spillover effects were also found to be positive and significant.

Cross-Sectional Space-Time Modeling Using ARNN (P, N) Processes

by Wolfgang Polasek

Spatial Chow-Lin Methods: Bayesian and ML Forecast Comparisons

by Wolfgang Polasek

Does Cluster Policy Trigger R&D Activity? Evidence from German Biotech Contests

by Roberto Patuelli

Co-authored with D. Engel, T. Mitze and J. Reinkowski, forthcoming in 'European Planning Studies'. ISI impact factor (2010): 0.645

This paper evaluates the R&D enhancing effects of two large public grant schemes for the German biotechnology... more This paper evaluates the R&D enhancing effects of two large public grant schemes for the German biotechnology industry (BioRegio, BioProfile). Both grant schemes are organized as contents of competition and aim at fostering the performance of innovative firms organized in clusters. We apply Difference-in-Difference estimation techniques in a generalized linear model framework, which allows us to control for different initial regional conditions in R&D activity of the biotech sector. Our econometric findings support the view that winners generally outperform non-winning participants during the treatment period, thus indicating that exclusive funding as well as the stimulating effect of being a “winner” seems to work in the short-term. Apart from this direct effect, no beneficial indirect effect stemming from the mobilization of non-winning participants in the contests could be detected. Finally, first attempts in estimating the long-term effect of public R&D grants on winner regions in the post-treatment period show mixed results.

Spillovers Diffusion and Regional Convergence: A Gravity Approach

by Gianni Guastella

co-authored with Francesco Timpano

Among the different sources of regional growth, agglomeration economies, both internal to
regions and external to... more Among the different sources of regional growth, agglomeration economies, both internal to
regions and external to regions (spillovers) play a primary role. However the presence of
agglomeration economies may obstacle the path toward cohesion making rich (poor) regions
become richer (poorer). While, according to New Growth Theory and New Economic Geography,
there is no doubt that internal economies may lead to divergence, the debate on the role of
external economies on convergence is still open. Much, of course, depends on the spatial extension
of spillovers. The aim of this work is to study the spatial dimension of spillovers using the
framework of cross-region growth regression. In particular we seek to explain whether the
intensity of spillover is either completely exogenous or it can be explained by some endogenous
regional characteristics. Results indicate that the intensity of externalities is determined by a) the
regional geographical position and b) the distance from neighbors with high growth rates. While
the first is completely exogenous, the second is not. Curiously enough, infrastructural endowments
and factors commonly assumed to induce agglomeration do not contribute to explain the intensity
of spillovers. Results have important policy implications. Since spillovers characterize more core
regions, which are well connected to other rich regions, than periphery, the presence of these
externalities may foster the increase of disparities between core and periphery, making harder to
reach the objective of cohesion.

Spillover diffusion, agglomeration and distance: a spatial extension of the knowledge production function approach

by Gianni Guastella