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Abstract:
This paper investigates the response of full service carriers (FSCs) to the entry of low-cost carriers (LCCs). We develop a model of airline competition, which accommodates various market structures, some of which include low-cost players. Using data on published airfares of Lufthansa, British Airways, Alitalia and KLM for the main city-pairs from Italy to the rest of Europe, our statistical modelling results confirm the conclusions of the theoretical model. Competition among FSCs appears to affect the price levels of business and leisure segments asymmetrically. In contrast, competition with LCCs reduces the fares of FSCs in all classes proportionally.

Pricing strategies, yield management, low-cost carriers, European airline market

Abstract:
This paper introduces and surveys ecological-economic analysis and valuation of biodiversity. Furthermore, the notion and application of economic, monetary valuation of biodiversity is critically evaluated. A classification of biodiversity values is offered, based on a system of logical relationships among biodiversity, ecosystems, species and human welfare. Suggestions are made about which economic valuation methods can address which type of biodiversity value. The resulting framework is the starting point for a survey and evaluation of empirical studies at each of the four levels of diversity. The resulting monetary value estimates seem to give unequivocal support to the belief that biodiversity has a significant, positive social value. The contingent valuation method is by far the most used method. An important reason is that the other valuation methods are unable to identify and measure passive or nonuse values of biodiversity. Nevertheless, most studies lack a uniform, integrated perspective on biodiversity. Therefore, available economic valuation estimates should generally be regarded as providing a partial perspective on, and at best lower bounds, to the unknown value of biodiversity changes.

Biodiversity, biotic richness, use economic value, nonuse economic value, monetary values, contingent valuation, ecosystem health, integrated modeling

Abstract:
Spatial effects are endemic in models based on spatially referenced data. The increased awareness of the relevance of spatial interactions, spatial externalities and networking effects among actors, evoked the area of spatial econometrics. Spatial econometrics focuses on the specification and estimation of regression models explicitly incorporating such spatial effects. The multidimensionality of spatial effects calls for misspecification tests and estimators that are notably different from techniques designed for the analysis of time series. With that in mind, we introduce the notion of spatial effects, referring to both heterogeneity and interdependence of phenomena occurring in two-dimensional space. Spatial autocorrelation or dependence can be detected by means of cross-correlation statistics in univariate as well as multivariate data settings. We review tools for exploratory spatial data analysis and misspecification tests for spatial effects in linear regression models. A discussion of specification strategies and an overview of available software for spatial regression analysis, including their main functionalities, intend to give practitioners of spatial data analysis a head start.

spatial econometrics, spatial autocorrelation, spatial heterogeneity, misspecification testing

Abstract:
Many networks such as the Internet have been found to possess scale-free and small-world network properties reflected by so-called power law distributions. Scale-free properties evolve in large complex networks through self-organizing processes and more specifically, preferential attachment. New nodes in a network tend to attach themselves to other vertices that are already well-connected. Because traffic is routed mainly through a few highly connected and concentrated vertices, the diameter of the network is small in comparison to other network structures, and movement through the network is therefore efficient. At the same time, this efficiency feature puts scale-free networks at risk for becoming disconnected or significantly disrupted when super-connected nodes are removed either unintentionally or through a targeted attack or external force. The present paper will examine and compare properties of telecommunications networks for both the United States and Europe. Both types of networks will be examined in terms of their network topology and specifically whether or not they are scale-free networks to be further explored by identifying and plotting power law distributions. Next, economic, political and cultural factors may be used to explain differences in network structures between the United States and Europe. In addition, the paper will identify data and modeling tools that are needed to facilitate further cross-Atlantic comparative studies of communications networks.

Complex networks, telecommunications, power law distributions, exponential distributions, Europe and US

Abstract:
This paper is concerned with the economics of urban externalities. We start by reviewing the literature on urban externalities, and observe that although many interesting contributions have been made, there seems to be sufficient scope and need for further research, both theoretically and empirically. We identify what we believe to be important advances to be pursued in future research on urban externalities. These include (1) the explicit consideration of mutual interactions between externalities; (2) a thorough analysis of the relationship between these externalities and urban form; and (3) a clear focus on (realistic) second-best policies. The importance of these issues is illustrated by developing a simple urban general equilibrium model in which we study the interactions between agglomeration externalities and pollution from commuting. Our results show that seemingly impossible findings from a non-spatial perspective, namely a simultaneous stimulation of agglomeration externalities and a reduction of environmental externalities, is in fact the outcome of first-best policies in our spatial model. Moreover, while the incentives from road pricing and labour subsidies would seem to be perfectly opposite in a non-spatial setting, leaving one of the two instruments redundant, our results show that their welfare effects may, in contrast, turn out to be strongly super-additive when a spatial perspective is taken.

Urban equilibrium, environmental and agglomeration externalities, second-best regulation

Abstract:
The aim of this paper is to investigate the phenomenon of ethnic female entrepreneurship in urban economic life. The focus of the research is on the attitude and behaviour of Turkish female entrepreneurs in Amsterdam. The main fascinating question is: Are ethnic female entrepreneurs special ethnic entrepreneurs or special female entrepreneurs? This paper provides an answer to this question on the basis of field surveys. The results of the case study research on Turkish female entrepreneurs in Amsterdam show that the "ethnic female profile" is a "special female profile" and that Turkish female entrepreneurs are "special female entrepreneurs", particularly in terms of personal and business characteristics, driving forces and motivations. They appear to combine their ethnic opportunities with their personal characteristics (and other opportunities) in the urban market, and to have a successful performance. This is also caused by the fact that they have become service providers not only for their own ethnic groups, but also for other groups in the city.

Ethnic Female Entrepreneurship, Diversity in Entrepreneurship, Ethnic Female Profile, Turkish Female Entrepreneurs

Abstract:
Recently the notion and the measurement of destination competitiveness have received increasing attention in the economics literature on tourism. The reason for this interest emerges from both the increasing economic importance of the tourist sector and the increasing competition on the tourist market as a consequence of the transition from mass tourism to a new age of tourism that calls for a tailor-made approach to the specific attitudes and needs of tourists. The central subject of this paper - inspired by the conceptual competitiveness model developed earlier by Crouch and Ritchie - concerns the efficiency of tourist site destinations. Using a dataset of 103 Italian regions for the year 2001, an economic efficiency analysis based on a production frontier approach has been made in the present study. The study deploys a measure of tourist site competitiveness in terms of its technical efficiency using parametric and non-parametric methods, a stochastic production function and data envelopment analysis, respectively.

competitiveness, Italian tourist industry, envelopment analysis

Abstract:
One of the policy options to increase the efficiency in the provision of scarce water resources is a reduction in transaction costs in water chains by developing integrated forms of water management. Integrated water management in case of river basin areas may comprise inter alia: (1) increasing co-operation at the river basin scale, (2) establishment of a river basin authority for an efficient co-ordination of policy measures in the relevant area, (3) developing a coherent policy addressing the entire water chain, (4) integrated strategies regarding all water functions in relation to other relevant spatial and environmental functions, and (5) a "water-as-ordering-principle", where water functions are the binding constraints for any other competing spatial function in a river basin area. In this paper we discuss the different integrated water management concepts from a theoretical and practical point of view. Moreover, we will explore the potential of efficient integration on the basis of five European projects addressing river basin areas. We argue that the above concepts are from an economic perspective promising, but that external circumstances create barriers for meeting the objectives of integrated water management.

Integrated water management, transaction costs, river basin authorities

Abstract:
This review considers the role of environmental effects in transport investment appraisal, mainly from the perspective of cost-benefit analysis, the most widely adopted appraisal technique. Although the basic principles of CBA are straightforward, several complications are identified that may play an important role in practical CBA's. These include second-best aspects, difficulties with discounting and with the spatial scope of CBA's, and the relation between CBA and the popular but multi-faceted and often ill-defined policy concept of sustainable development.

transport, cost-benefit analysis, environment

Abstract:
In this paper we offer a meta-analysis approach to (simulation) studies on environmental tax reform (ETR). The underlying studies look both at environmental effects (e.g. reduction in CO2 emission) and economic effects (e.g. change in gross domestic product) following such a tax reform. The statistical results suggest that the tax type, the recycling-policy and the economic model used in the simulations are all of influence on the chance a double dividend can be obtained. The results are however not entirely conclusive regarding the question which combination of policies and models will lead to a higher double dividend. Our meta-analytic experiment also shows that the specific definition of the double dividend (partly) determines the outcome. These findings should be taken into consideration applying an ETR, to prevent a situation where ETR is rejected or accepted solely due to characteristics of the underlying simulation study rather than the intrinsic ETR itself.

environmental tax reform, double dividend, meta analysis

Abstract:
Socio-economic interrelationships among regions can be measured in terms of economic flows, migration, or physical geographically-based measures, such as distance or length of shared areal unit boundaries. In general, proximity and openness tend to favour a similar economic performance among adjacent regions. Therefore, proper forecasting of socio-economic variables, such as employment, requires an understanding of spatial (or spatio-temporal) autocorrelation effects associated with a particular geographic configuration of a system of regions. Several spatial econometric techniques have been developed in recent years to identify spatial interaction effects within a parametric framework. Alternatively, newly devised spatial filtering techniques aim to achieve this end as well through the use of a semi-parametric approach. Experiments presented in this paper deal with the analysis of and accounting for spatial autocorrelation by means of spatial filtering techniques for data pertaining to regional unemployment in Germany. The available data set comprises information about the share of unemployed workers in 439 German districts (the NUTS-III regional aggregation level). Results based upon an eigenvector spatial filter model formulation (that is, the use of orthogonal map pattern components), constructed for the 439 German districts, are presented, with an emphasis on their consistency over several years. Insights obtained by applying spatial filtering to the database are also discussed.

spatial autocorrelation, spatial filtering, unemployment, Germany

Abstract:
Immigration is a phenomenon of growing significance in many countries. Increasing social tensions are leading to political pressure to limit a further influx of foreign-born persons on the grounds that the absorption capacity of host countries has been exceeded and social cohesion threatened. There is also in public discourse a common perception of immigration resulting in economic costs, particularly with respect to wages and employment opportunities of the native born. This warrants a scientific assessment, using comparative applied research, of the empirical validity of the perception of a negative impact of immigration on labour market outcomes. We apply meta-analytic techniques to 165 estimates from 9 recent studies for various OECD countries and assess whether immigration leads to job displacement among native workers. The "consensus estimate" of the decline in native-born employment following a 1 percent increase in the number of immigrants is a mere 0.024 percent. However, the impact is somewhat larger on female than on male employment. The negative employment effect is also greater in Europe than in the United States. Furthermore, the results are sensitive to the choice of the study design. For example, failure to control for endogeneity of immigration itself leads to an underestimate of its employment impact.

immigration, employment, meta-analysis

Abstract:
The use of environmental policy instruments such as eco-labelling and pesticide taxes should preferably be based on disaggregate estimates of the individuals' willingness to pay (WTP) for pesticide risk reductions. We review the empirical valuation literature dealing with pesticide risk exposure and develop a taxonomy of environmental and human health risks associated with pesticide usage. Subsequently, we use meta-analysis to investigate the variation in WTP estimates for reduced pesticide risk exposure. Our findings show that the WTP for reduced risk exposure is approximately 15% greater for medium, and 80% greater for high risk-levels, as compared to low risk levels. The income elasticity of pesticide risk exposure is generally positive, although not overly robust. Most results indicate that the demand for human health and environmental safety is highly elastic. We also show that geographical differences, characteristics of the survey, and the type safety device (eco-labelling, integrated management, or bans) are important drivers of the valuation results.

Pesticide risk, Willingness to pay, Meta-analysis

Abstract:
An increasing amount of research is now being conducted on topics at the interface of regional science and the environment. This research is both theoretical and empirical and the broad objective of this research is to analyze the numerous environmental implications of problems in regional science. Given the burgeoning interest in research in the above mentioned topics, there now exists a substantial literature on regional science and the environment. Therefore, our objective in this chapter is to review the principal themes in this sizable literature. Specifically, we focus on five key issues and these issues are regional economic development, natural resources, environmental regulation, geographic information systems, and regional climate change. Our review is both retrospective and prospective. We discuss what has been achieved thus far and the likely future directions of research on regional science and the environment.

Environmental Regulation, Geographic Information System, Natural Resources, Regional Climate Change, Regional Economic Development

Abstract:
This paper analyzes the relative economic power position of home carriers in hub-and-spoke systems. Hub-and-spoke systems may lower costs on densely traveled routes and enable economically viable operations on less densely traveled routes. The reverse side is probably that carriers enjoy significant market power at their home base, often labeled the home carrier advantage. The paper offers a concise overview of the literature in this field, and addresses next empirically this issue for European home carriers. We found empirically that at least some European carriers charge premiums for flights originating from their hubs. The hub premiums of Lufthansa, Swissair and Air France are significantly higher than those of the other companies in our sample.

Airlines, airports, networks, homecarrier advantage

Abstract:
In this paper, a set of neural network (NN) models is developed to compute short-term forecasts of regional employment patterns in Germany. NNs are modern statistical tools based on learning algorithms that are able to process large amounts of data. NNs are enjoying increasing interest in several fields, because of their effectiveness in handling complex data sets when the functional relationship between dependent and independent variables is not explicitly specified. The present paper compares two NN methodologies. First, it uses NNs to forecast regional employment in both the former West and East Germany. Each model implemented computes single estimates of employment growth rates for each German district, with a 2-year forecasting range. Next, additional forecasts are computed, by combining the NN methodology with Shift-Share Analysis (SSA). Since SSA aims to identify variations observed among the labour districts, its results are used as further explanatory variables in the NN models. The data set used in our experiments consists of a panel of 439 German districts. Because of differences in the size and time horizons of the data, the forecasts for West and East Germany are computed separately. The out-of-sample forecasting ability of the models is evaluated by means of several appropriate statistical indicators.

networks, forecasts, regional employment, shift-share analysis, shift-share regression

Abstract:
The environment, thought of broadly, is increasingly an important topic in regional science research. Theoretical and empirical inquiries by regional scientists have gradually begun to address the numerous environmental ramifications of regional science queries. Consequently, there now exists a substantial literature on what we may call the environment in regional science. Given this state of affairs, the objective of this paper is to survey this vast literature. To provide sufficient focus, we do this by discussing five principal issues in the extant literature on the environment in regional science. These issues are (i) regional economic development, (ii) environmental regulation, (iii) natural resources, (iv) international affairs, and (v) geographic information systems. Our survey is both retrospective and prospective in nature. We are interested not only in what has been accomplished thus far but also in where research on the environment in regional science is headed in the future.

Environmental Regulation, Geographic Information System, International Affairs, Natural Resources, Regional Economic Development

Abstract:
The environment, broadly construed, is increasingly a salient topic in regional science research. Theoretical and empirical inquiries by regional scientists have progressively begun to address the manifold environmental ramifications of regional science questions. As such, there now exists a sizeable literature on what we may call the environment in regional science. Given this state of affairs, the purpose of this paper is to survey this extensive literature. To provide sufficient focus, we do this by discussing five key issues in the extant literature on the environment in regional science. These issues are (i) regional economic development, (ii) environmental regulation, (iii) natural resources, (iv) international affairs, and (v) geographic information systems. Our survey is both retrospective and prospective in nature. We are interested not only in what has been accomplished thus far but also in where research on the environment in regional science is headed in the future.

Environmental regulation, geographic information system, international affairs, natural resources, regional economic development

Abstract:
The widespread use of pesticides in agriculture provides a particularly complex pattern of multidimensional negative side-effects, ranging from food safety related effects to the deterioration of farmland ecosystems. The assessment of the economic implications of such negative processes is fraught with many uncertainties. This paper presents results of an empirical study recently conducted in the North of Italy aimed at estimating the value of reducing the multiple impacts of pesticide use. A statistical technique known as conjoint choice experiment is used here in combination with contingent valuation techniques. The experimental design of choice modelling provides a natural tool to attach a monetary value to negative environmental effects associated with agrochemicals use. In particular, the paper addresses the reduction of farmland biodiversity, groundwater contamination and human intoxication. The resulting estimates show that, on average, respondents are prone to accept substantial willingness to pay premia for agricultural goods (in particular, foodstuff) produced in environmentally benign ways.

Pesticide risks, Food safety, Willingness-to-pay, Choice modeling, Contingent valuation

Abstract:
This paper aims to provide a statistical analysis of the relative economic performance of Italian tourist areas. It uses two modelling approaches to estimate the competitiveness of these regions, viz. data envelopment analysis (DEA) and the Malmquist method. Our results show that the competitiveness position of several Italian regions has not improved over the years under consideration.

competitiveness, Italian tourist industry, envelopment analysis

Abstract:
In our increasingly interconnected and open world, international migration is becoming an important socioeconomic phenomenon for many countries. Since the early 1980s, many studies about the impact of immigration on host labour markets have been undertaken. Borjas (2003, The labor demand curve is downward sloping: reexamining the impact of immigration on the labor market. Quarterly Journal of Economics 118(4): 1335-1374) noted that the estimated effect of immigration on the wage of native workers varies widely from study to study and sometimes even within the same study. In addition, these effects cluster around zero. Such a small effect is a rather surprising outcome, given that in a closed competitive labour market an increase in labour supply may be expected to exert a downward pressure on wages. We revisit this issue by applying meta-analytic techniques to a set of 18 papers, which altogether generated 348 estimates of the percentage change in the wage of a native worker with respect to a 1 percentage point increase in the ratio of immigrants over native workers. While many studies in our database employ US data, estimates are also obtained from Germany, The Netherlands, France, Norway, Austria, Israel and Australia. Our analysis shows that results vary across countries and are inter alia related to the type of modelling approach. Technical issues such as publication bias and quality of the estimates are addressed as well.

Abstract:
In our increasingly interconnected and open world, international migration is becoming an important socio-economic phenomenon for many countries. Since the early 1980s, many studies have been undertaken of the impact of immigration on host labour markets. Borjas (2003) noted that the estimated effect of immigration on the wage of native workers varies widely from study to study and sometimes even within the same study. In addition, these effects cluster around zero. Such a small effect is a rather surprising outcome, given that in a closed competitive labour market an increase in labour supply may be expected to exert a downward pressure on wages. We revisit this issue by applying meta-analytic techniques to a sample of eighteen papers, which altogether generated 348 estimates of the percentage change in the wage of a native worker with respect to a one percentage point increase in the ratio of immigrants over native workers. While many studies in our sample employ US data, estimates are also obtained from Germany, The Netherlands, France, Norway, Austria, Israel and Australia. Our analysis shows that results vary across countries and are inter alia related to the type of modelling approach. Technical issues such as publication bias and quality of the estimates are addressed as well. A negative but small effect of immigration on wages of native groups with similar skills appears rather robust.

Immigration, Labour market, Factor substitution, Meta-analysis

Abstract:
A sound empirical and quantitative analysis on the relationship between different patterns of urban expansion and the environmental or social costs of mobility is rare, and the few studies available provide at best a qualitative discussion of these issues. Some recent tentative studies on the metropolitan area of Milan have empirically explored whether different patterns of urban expansion generate different levels of land use and heterogeneous impacts of urban mobility. The results confirmed the expectation that a higher environmental impact of mobility may result from more extensive and sprawling urban development, from recent urbanisation processes and from residential specialisation. The present paper extends the previous empirical analysis to seven major Italian metropolitan areas (namely, Bari, Florence, Naples, Padua, Perugia, Potenza and Turin) in order to corroborate the previous tentative results for the Italian context. The novelty of the present paper is threefold. First, we are interested in exploring the changes that have occurred due to the increased intensity of mobility across a ten-year period, from 1981 to 1991, which corresponds to the Italian economic boom years. Secondly, using an econometric analysis of cross-section data, we consider several metropolitan areas simultaneously, and are therefore able to explore whether there are significant differences in the way the model explains variations in the mobility impact across various Italian urban areas. And finally, we offer a structural interpretation of the causal chain in the explanation of the mobility impact intensity by using Causal Path Analysis as a statistical test framework.

urban mobility, sprawl, environmental costs, self-containment capacity, causal path analysis

Abstract:
In this paper we investigate the functional form of distance decay for commuting flows between municipalities in Denmark. Our inference is based on a single equation that includes variables to capture the effect of spatial structure. Special attention is given to a proper estimation method: We estimate the distance-decay parameters by nonlinear weighted least-squares with balancing factors. It appears that neither an exponential nor a power distance-decay function fits the data well. Using a spline regression we find a cost elasticity of -4 for distances around 20 km and a much smaller value for shorter and longer distances. It appears that the logarithm of distance decay can be described adequately as a (downward) logistic function of log cost.

Abstract:
In this paper we determine the effect of transport cost on commuting flows, on the basis of an analysis of home-to-work journeys between municipalities in Denmark. Special attention is given to a proper estimation method and the form of the distance-decay function. It appears that neither an exponential nor a power distance-decay function fits the data well. The specification of log trips as a (downwards) logistic function of log cost results in a better fit. We find that the cost elasticity of commuting reaches a value of -4 for distances around 24 km, while it is close to 0 for both very short and very long distances. Finally, we demonstrate that the choice of functional form for distance-decay can make an important difference for predictions concerning the effect of infrastructure improvements on commuting flows.

Spatial interaction, distance-decay function, commuting, Denmark, estimation, heteroscedasticity

Abstract:
It is now common knowledge that the United States Patent and Trademark Office (USPTO) takes too long to process patent applications and that examiners make too many errors in the patent approval process. Given these twin concerns, we study the following question in this paper. Should the director of an organization such as the USPTO have a small number of examiners examine incoming patent applications less stringently or should this director have a large number of examiners examine the same patent applications more stringently? We employ a simple queuing model and show that if decreasing the average patent pendency is crucial then it makes more sense for the director to select the less stringent patent examination regime. In contrast, if reducing the number of examination errors in the patent approval process is more important then the director ought to choose the more stringent patent examination regime.

Average Patent Pendency, Examination Errors, Queuing Theory, Tradeoff, Uncertainty

Abstract:
It is now common knowledge that the United States Patent and Trademark Office (USPTO) takes too long to process patent applications and that examiners make too many errors in the patent approval process. Given these twin concerns, we study the following question in this paper. Should the director of an organization such as the USPTO have a small number of examiners examine incoming patent applications less stringently or should this director have a large number of examiners examine the same patent applications more stringently? We employ a simple queuing model and show that if decreasing the average patent pendency is crucial then it makes more sense for the director to select the less stringent patent examination regime. In contrast, if reducing the number of examination errors in the patent approval process is more important then the director ought to choose the more stringent patent examination regime.

Average Patent Pendency, Examination Errors, Queuing Theory, Tradeoff, Uncertainty

Abstract:
The uncertain nature of the demand for university parking has now created a major problem for university planners. From a facilities planning perspective, it is important to comprehend the probabilistic nature of the demand for parking and parking rules violations. Given this background, in our note, we shed light on two insufficiently studied issues concerning university parking. First, we focus on short-term and long-term parkers. We determine the mean parking time of an arriving car and then we compute the probability distribution function of the number of occupied parking spots at any particular time. Second, we concentrate on parking rules violators and we calculate the probability distribution function of the number of violators who are fined at an inspection.

Long-Term Parking, Short-Term Parking, University, Violator

Abstract:
Climate change is a serious concern worldwide. Policy research on climate change in the past decades has largely focused on applied modelling exercises. However, the implications of specific policy strategies such as the clean development mechanism (CDM) for global and regional economic and environmental developments has received relatively little attention. This is partly caused by the complexities of modelling an instrument like CDM. By using and modifying the GTAP-E modelling system, this paper sets out to trace the combined economic and environmental impacts of CDM policies. Particular emphasis is placed on technology transfer induced by alternative CDM policies. Specific attention is devoted to the possible negative consequences of non-participation of the USA in the global coalition, and the associated distributional impacts world-wide.

Climate Change, Clean Development Mechanism, Regional Development

Abstract:
In the search for effective pesticide risk management tools, the design of pesticide risk indicators is nowadays receiving increasing attention as a complement to more established regulatory strategies. In the present paper, we apply some recently developed pesticide risk indices and test their potential for management purposes. A pilot approach is proposed, which explores pesticide worst-case hazard scenarios at different space-time scales by means of a set of 5 ecotoxicological risk indices. The results are then interpreted from the perspective of a decision support method using the so-called Critical Threshold Value approach. Our risk analysis is then enriched within a multicriteria framework which integrates environmental, agronomic and economic objectives.

Pesticides, hazard and risk assessment, risk indices, decision support tools, multicriteria analysis

Abstract:
Unemployment rates appear to vary widely at a subregional (e.g., local or provincial) level. Using spatial econometric models for spatial autocorrelation, this paper focuses attention on the spatial structure of regional unemployment disparities of Italian provinces. On the basis of findings from the economic literature and of the available socio-economic data, various model specifications, including different explanatory variables, are tested to investigate the geographical distribution of unemployment in the 103 provinces of Italy for the years 1998 and 2003. The results suggest that there is a clear explanation of unemployment differentials in terms of spatial equilibrium and disequilibrium factors and a significant degree of spatial dependence among labour markets at the provincial level in Italy. Provinces marked by high unemployment, as well as those characterised by low unemployment, tend to be spatially clustered, demonstrating the presence of unemployment persistency in space and time regimes.

Abstract:
Unemployment rates appear to vary widely at a subregional (e.g., local or provincial) level. Using spatial econometric models for spatial autocorrelation, this paper focuses attention on the spatial structure of regional unemployment disparities of Italian provinces. On the basis of findings from the economic literature and of the available socio-economic data, various model specifications including different explanatory variables are tested to investigate the geographical distribution of unemployment in the 103 provinces of Italy for the years 1998 and 2003. The results suggest that there is a clear explanation of unemployment differentials in terms of spatial equilibrium and disequilibrium factors and a significant degree of spatial dependence among labour markets at the provincial level in Italy. Provinces marked by high unemployment, as well as those characterized by low unemployment, tend to be spatially clustered, demonstrating the presence of unemployment 'persistency' in space and time regimes.

unemployment, spatial lag model, spatial autocorrelation, Italian provinces

Abstract:
Immigration is a phenomenon of growing significance in many countries. Increasing social tensions are leading to political pressure to limit a further influx of foreign-born persons on the grounds that the absorption capacity of host countries has been exceeded and social cohesion threatened. There is also in public discourse a common perception of immigration resulting in economic costs, particularly with respect to wages and employment opportunities of the native born. This warrants a scientific assessment, using comparative applied research, of the empirical validity of the perception of a negative impact of immigration on labour market outcomes. Applying meta-analytic techniques to 165 estimates from 9 recent studies for various OECD countries, we assess in this paper whether immigration leads to job displacement among native workers. The consensus estimate of the decline in native-born employment following a 1 percent increase in the number of immigrants is a mere 0.024 percent. However, the impact is somewhat larger on female than on male employment. The negative employment effect is also greater in Europe than in the United States. Furthermore, the results are sensitive to the choice of the study design. For example, failure to control for endogeneity of immigration itself leads to an underestimate of its employment impact.

spatial autocorrelation, spatial filtering, unemployment, Germany

Abstract:
Regulations specify the maximum amount of waste that can be stored on site by a waste generating firm. When this regulatory threshold is reached, a polluting firm must move its on site waste to an off site recipient. In this setting, we analyze two questions in a stochastic framework from the viewpoints of a waste generator and a recipient that have received scant theoretical attention in the literature. First, given that off site storage is costlier than on site storage, we derive the long run average cost incurred by a waste generating firm that stores waste both on and off site. Second, we compute the expected amount of time until the off site recipient's waste storage facility is full.

Off Site, On Site, Storage, Uncertainty, Waste Management

Abstract:
Regulations specify the maximum amount of waste that can be stored on site by a waste generating firm. When this regulatory threshold is reached, a polluting firm must move its on site waste to an off site recipient. In this setting, we analyze two questions in a stochastic framework from the viewpoints of a waste generator and a recipient that have received scant theoretical attention in the literature. First, given that off site storage is costlier than on site storage, we derive the long run average cost incurred by a waste generating firm that stores waste both on and off site. Second, we compute the expected amount of time until the off site recipient's waste storage facility is full.

Off Site, On Site, Storage, Uncertainty, Waste Management

Abstract:
We study the problem of precluding biological invasions caused by ships transporting internationally traded goods in containers between different regions of the world. Using the long run expected net cost (LRENC) of inspections as the apposite managerial objective, we address the following important question: Given that inspection is a cyclical activity, is the LRENC lower when a port manager's inspector inspects cargo upon the arrival of a specified number of containers (container policy) or is this LRENC lower when this inspector inspects cargo at fixed points in time (temporal policy)? We construct a queuing theoretic model and show that in an inspection cycle, irrespective of whether the inspection policy choice is made on the basis of an explicit optimization exercise or on the basis of rules of thumb, the container policy is superior to the temporal policy because the container policy results in lower LRENC from inspection activities.

Biological Invasion, Inspection Policy, Queuing Theory, Uncertainty

Abstract:
We study the problem of precluding biological invasions caused by ships transporting internationally traded goods in containers between different regions of the world. Using the long run expected net cost (LRENC) of inspections as the apposite managerial objective, we address the following important question: Given that inspection is a cyclical activity, is the LRENC lower when a port manager's inspector inspects cargo upon the arrival of a specified number of containers (container policy) or is this LRENC lower when this inspector inspects cargo at fixed points in time (temporal policy)? We construct a queuing theoretic model and show that in an inspection cycle, irrespective of whether the inspection policy choice is made on the basis of an explicit optimization exercise or on the basis of rules of thumb, the container policy is superior to the temporal policy because the container policy results in lower LRENC from inspection activities.

Biological invasion, inspection policy, queuing theory, uncertainty

Abstract:
This paper reviews the empirical research that has been generated by Oswald's thesis, which claims that there is a causal relationship from homeownership to unemployment. The literature confirms a decreasing effect of homeownership on geographical mobility of workers, but does not in general confirm that homeowners have longer unemployment spells or higher unemployment rates. Even though this finding is related to heterogeneity in the labour force and associated selectivity effects, there are clear indications that there is also an effect of homeownership on the search for jobs on the local labour market, especially for highly leveraged homeowners. To offer an integrated representation of the various forces at work, this paper proposes an umbrella model with endogenous search intensity that is consistent with much of the empirical evidence. In particular, it predicts lower geographical mobility of homeowners as well as higher exit rates from unemployment - by acceptance of jobs on the local labour market.

thesis, labour market search, homeownership

Abstract:
Goods are often allocated publicly by means of queuing processes in developing countries. In such situations, which group of citizens should a corrupt government official favor? In addition, what should be the basis for this favoritism? To the best of our knowledge, these salient questions have received little attention in the literature. Therefore, we use queuing theory to first show that when allocating goods publically, a case can be made for favoring a particular group of citizens. Next, we show that the nature of this favoritism depends not only on the bribes received by the corrupt government official but also on the efficiency with which this official discharges his duties.

Favoritism, Bribery, Corruption, Developing Country

Abstract:
Goods are often allocated publically by means of queuing processes in developing countries. In such situations, which group of citizens should a corrupt government official favor? In addition, what should be the basis for this favoritism? To the best of our knowledge, these salient questions have received scant attention in the literature. Consequently, we use queuing theory to first demonstrate that when allocating goods publically, a case can be made for favoring a particular group of citizens. Next, we show that the nature of this favoritism depends not only on the bribes received by the corrupt government official but also on the efficiency with which this official discharges his duties.

Bribery, Corruption, Favoritism, Public Provision

Abstract:
How should one manage the problem of resistance to antibiotics and pesticides? The formal modeling of this question is very much in its infancy. Therefore, we construct a dynamic and stochastic model of antibiotic or pesticide use to investigate the relative merits of two kinds of treatment options for overseeing the problem of resistance. In particular, we identify a likelihood function and then, inter alia, we show that this function has an important bearing on how we might best address the problem of resistance.

Antibiotics, Management, Pesticides, Resistance, Uncertainty

Abstract:
How should one manage the problem of resistance to antibiotics and pesticides? The formal modeling of this question is very much in its infancy. Therefore, we construct a dynamic and stochastic model of antibiotic or pesticide use to investigate the relative merits of two kinds of treatment options for overseeing the problem of resistance. In particular, we identify a likelihood function and then, inter alia, we show that this function has an important bearing on how we might best address the problem of resistance.

Antibiotics, Management, Pesticides, Resistance, Uncertainty

Abstract:
We first construct a theoretical model of a regional economy with two sectors. One sector uses physical and creative capital - in the sense of Richard Florida (2002) - to produce a knowledge good that is traded. The other sector uses physical and social capital to produce a good that is not traded. Second, we provide the first formal analysis of the creative capital accumulation decision faced by individuals in this regional economy and we compute the optimal length of time during which creative capital is accumulated. Next, we determine the relative return to creative capital and we use this return to conduct comparative statics exercises with our model's four parameters. Finally, we show that for a given interest rate, the relative price of the nontraded good is higher in regional economies where more creative capital is accumulated.

Abstract:
This study addresses the achievements of cooperative agreements in sustainable agriculture policy. After an economic analysis of multi-actor choice situations, it focuses the attention on the self-organizing potential of regional market parties in order to comply with environmental policy objectives. The empirical application concerns voluntary agreements among farmers in Bavaria regarding intensified efforts to reduce nitrate pollution of drinking water. By means of new variants of artificial intelligence methods based on rough set analysis, a systematic investigation of success factors of such strategies is achieved.

Agriculture, co-operative agreements, nitrate pollution, rough set analysis

Abstract:
The spatial activity patterns of firms in a multi-regional system are closely connected with the structure and evolution of regional labour markets. Based on an extensive data set (cross-section) on commuting flows in Germany, this paper aims to identify the relationship between entrepreneurial activity and spatial labour markets, by employing in particular the concept of 'entrepreneurial city'. A network connectivity model is adopted to assess connectivity patterns, using the power-law and exponential law as a statistical test framework, in order to detect the presence of economic activity hubs that may resemble the concept of entrepreneurial cities. Various results are presented and interpreted in the final part of the paper.

Network, Commuting, Entrepreneurship

Abstract:
The increasing proportion of immigrants in the population of many countries has raised concerns about the 'absorption capacity' of the labour market, and fuelled extensive empirical research in countries that attract migrants. In previous papers we synthesized the conclusions of this empirical literature by means of meta-analyses of the impact of immigration on wages and employment of native-born workers. While we have shown that the labour market impacts in terms of wages and employment are rather small, the sample of studies available to generate comparable effect sizes was severely limited by the heterogeneity in study approaches. In the present paper, we take an encompassing approach and consider a broad range of labour market outcomes: wages, employment, unemployment and labour force participation. We compare 45 primary studies published between 1982 and 2007 for a total of 1,572 effect sizes. We trichotomise the various labour market outcomes as benefiting, harming or not affecting the native born, and use an ordered probit model to assess the relationship between this observed impact and key study characteristics such as type of country, methodology, period of investigation and type of migrant.

immigration, labour market, factor substitution, comparative research, meta-analysis

Abstract:
The extant literature has delineated some of the ways in which uncertainty affects the management of alien species. In this paper, we continue this line of inquiry and shed light on two insufficiently studied issues concerning the probabilistic nature of biological invasions. First, we determine the total number of biological invasions in a particular time period of interest. Second, we compute the total monetary damage from biological invasions in this same time period of interest. Our analysis of the first (second) issue focuses on the case in which the parameter of the stochastic process describing the arrival of alien species is probabilistic (deterministic).

Biological Invasion, Monetary Damage, Stochastic Arrival Process, Uncertainty

Abstract:
The extant literature has delineated some of the ways in which uncertainty affects the management of alien species. In this paper, we continue this line of inquiry and shed light on two insufficiently studied issues concerning the probabilistic nature of biological invasions. First, we determine the total number of biological invasions in a particular time period of interest. Second, we compute the total monetary damage from biological invasions in this same time period of interest. Our analysis of the first (second) issue focuses on the case in which the parameter of the stochastic process describing the arrival of alien species is probabilistic (deterministic).

Biological Invasion, Monetary Damage, Stochastic Arrival Process, Uncertainty

Abstract:
We review the empirical valuation literature on pesticide risk exposure and develop a taxonomy of environmental and human health risks associated with pesticide usage. Meta-analysis is then used to investigate the variation in willingness to pay (WTP) estimates for reduced pesticide risk exposure. Our findings show that the WTP for reduced risk exposure is 15 per cent greater for medium, and 80 per cent greater for high risk levels, as compared with low risk levels. The income elasticity of reduced pesticide risk exposure is generally not significantly different from zero. Stated preference approaches based on choice experiments and revealed preference provide lower WTP estimates than contingent valuation techniques. Survey design, type of safety device (eco-labelling, integrated pest management, or bans) and chosen payment vehicle are important drivers of the valuation results.

pesticide risk, willingness to pay, meta-analysis

Abstract:
There is a growing interest in the academic and policy making communities in understanding the effects of sectoral specialisation on labour market performance. The existing empirical evidence, mainly based on US data, generally finds a positive correlation between sectoral specialisation and labour market indicators such as wages and unemployment. The policy implication one can draw from these results is that fostering sectoral diversification may reduce unemployment. However, this lesson may not hold for all countries. In particular, in the case of Europe, the diversity of labour market institutions may play a distinct role in shaping the relationship between sectoral specialisation and labour market performance.

In this paper, we investigate the relationship between regional sectoral specialisation and regional unemployment rate in the context of different collective bargaining institutions in the EU countries. We find that collective bargaining institutions do play a role in shaping the unemployment rate differentials across regions belonging to the same country. Furthermore, the relationship between regional specialisation and the regional unemployment rate is stronger in countries with intermediate and decentralised collective bargaining institutions in comparison to countries with centralised collective bargaining institutions.

Our results suggest that labour market institutions are likely to influence the outcome of policies aiming at fostering regional diversification. While such policies may result in reducing regional unemployment in countries with decentralised and intermediate levels of collective bargaining, they may not make a big difference in countries with centralised collective bargaining institutions.

Abstract:
Contingency management, in particular the management of unanticipated events outside the control of an ordinary planning system has, in the last 50 years, become an important and frequently debated issue in the scientific literature on complex systems management under risk conditions. The urban system can be regarded as such an open complex system where external events, not always foreseeable with a closed system's model, may strongly impact on the internal dynamics of an urban area. Conventionally, planning the future presupposes collecting information and analyzing it rationally in order to control for unexpected contingency events. But it is an important question in the field of urban planning how proper strategies can be developed to deal with external uncertainty and shocks that transcend the imagination of policy-makers. How should decision-makers respond to such unforeseen jumps in a system? The aim of this article is to present and apply a new decision support method based on the future studies literature, with the aim to help decision-makers in the strategic management of uncertainty and risk in order -(Godet, 1987). In particular, we here deploy the scenario methodology in combination with multicriteria analysis and fuzzy set theory, as a useful learning tool for the governance of complex dynamic systems. In current debates on policy-makers' possible reactions to uncertainty (e.g., in the context of sustainability strategies), very often the socalled 'no regret' principle is advocated. The validity of this approach is tested, in the context of the present article, on real-world threats in the Vesuvio volcanic area in the vicinity of the densely populated city of Naples, Italy. Four different policy scenarios are developed with the purpose to examine, control and reduce the risk for the people concerned in case of a future volcanic eruption and to lay, at the same time, the foundation for a drastic rehabilitation of the entire metropolitan area. scientific to anticipate the extraordinary events correctly in order to act more effectively

Abstract:
Inspections are a salient part of alien species management and, therefore, in contemporary times, there has been great interest in analyzing the role of inspections as an apposite regulatory tool. In this paper, we continue the study of inspections in a probabilistic environment and we shed light on three specific issues concerning inspection policies in the context of alien species management. First, given a particular seaport, we determine the likelihood that n ∈ N ships will need to be inspected in a relevant time period. Second, we compute the probability distribution function of the amount of time it takes to inspect an arbitrary ship. Finally, we show how the probability distribution function of the total cost of inspections in the above time period can be calculated.

Alien Species, Container, Inspection, Total Cost, Uncertainty

Abstract:
Inspections are a salient part of alien species management and, therefore, in contemporary times, there has been great interest in analyzing the role of inspections as an apposite regulatory tool. In this paper, we continue the study of inspections in a probabilistic environment and we shed light on three specific issues concerning inspection policies in the context of alien species management. First, given a particular seaport, we determine the likelihood that n ships will need to be inspected in a relevant time period. Second, we compute the probability distribution function of the amount of time it takes to inspect an arbitrary ship. Finally, we show how the probability distribution function of the total cost of inspections in the above time period can be calculated.

Alien Species, Container, Inspection, Total Cost, Uncertainty

Abstract:
A burgeoning literature has emerged during the last two decades to assess the economic impacts of immigration on host countries. In recent years much research has been at the national level under the assumption that impacts in open regions may dissipate through adjustment processes such as factor mobility. However, this is ultimately an empirical issue. In this paper we revisit the impacts of immigration at the regional level. We briefly review analytical approaches for identifying regional economic impacts, specifically the labour market impact. A meta-analytic approach is adopted. As a novel contribution to existing meta-analyses on labour market impacts, we use a simultaneous equations approach to the meta-analysis of wage and employment effects. The number of studies that informs on both effects is rather limited, but eight econometric analyses yielded 130 useful meta-observations. We find that wage rigidity increases the magnitude of the employment impact on the native born, particularly of those who are low skilled, following positive net immigration. The employment elasticity is also greater in Europe than in the United States. However, observed employment elasticities are not informative about whether larger or smaller wage effects may be expected.

international migration, regional labour market, meta-analysis, impact analysis, regional growth

Abstract:
Since 1990, there has been extensive international research on the responsiveness of wages of individuals to changing local labour market conditions. For many countries, an inverse relationship between wages and local unemployment rates has been found. In their book, The Wage Curve, Blanchflower and Oswald argued that the unemployment elasticity of pay is around -0.1 in most countries. In a 1995 literature survey, Card referred to this striking empirical regularity as being close to an 'empirical law of economics'. Nonetheless, reported elasticities do vary, even excluding outliers, between about -0.5 and +0.1. There is also considerable heterogeneity among wage curve studies in terms of data and model specification. This paper carries out meta-analytic techniques on a sample of 208 elasticities derived from the literature to uncover the reasons for the differences in empirical results across studies. Several causes of variation are identified. There is also clear evidence of downward publication bias. In addition, many reported t-statistics are biased upwards due to the use of aggregate unemployment rates. A maximum likelihood method and a trimming procedure are used to correct for these biases. Both methods give similar results for our sample. An unbiased estimate of the wage curve elasticity at the means of study characteristics is about -0.07.

Abstract:
Knowledge drives the growth of nations and regions in a competitive space-economy. Hence, we would expect a strong correlation between investments in R&D, knowledge and learning processes, on the one hand, and productivity increases, on the other. However, the empirical evidence shows consistent discrepancies between knowledge inputs and economic performance across geographical units. This paper addresses this intriguing issue at the regional level, by highlighting both theoretically and empirically the strategic importance played by cognitive elements as part of 'territorial capital' in mediating between knowledge production and regional growth. The main proposition of the paper, subject to empirical testing, is that cognitive elements as part of territorial capital magnify the contribution of knowledge by determining the formation of increasing returns to knowledge exploitation.

territorial, capital, regional growth, cognitive, knowledge, rivalry, R&D

Abstract:
The extant literature has paid scant theoretical attention to the tripartite interaction between increasing environmental regulations, the resulting decision by a polluting firm to upgrade its capital stock, and the impact of innovation on this capital stock improvement decision. Hence, we theoretically analyze this tripartite interaction when the polluting firm faces adjustment costs to upgrade its capital stock. First, we construct a dynamic model of regulation driven investment by a polluting firm. Second, we specify the conditions characterizing efficient investment. Third, we study the impact of an unanticipated increase in innovation on the polluting firm's steady state capital stock. Fourth, we analyze the impact of an anticipated increase in innovation on the polluting firm's steady state capital stock. Finally, we discuss the relationship between the polluting firm's internal shadow price of capital and the stock market value of a unit of this firm's capital.

Capital Stock, Dynamics, Innovation, Investment, Polluting Firm

Abstract:
The extant literature has paid scant theoretical attention to the tripartite interaction between increasing environmental regulations, the resulting decision by a polluting firm to upgrade its capital stock, and the impact of innovation on this capital stock improvement decision. Hence, we theoretically analyze this tripartite interaction when the polluting firm faces adjustment costs to upgrade its capital stock. First, we construct a dynamic model of regulation driven investment by a polluting firm. Second, we specify the conditions characterizing efficient investment. Third, we study the impact of an unanticipated increase in innovation on the polluting firm's steady state capital stock. Fourth, we analyze the impact of an anticipated increase in innovation on the polluting firm's steady state capital stock. Finally, we discuss the relationship between the polluting firm's internal shadow price of capital and the stock market value of a unit of this firm's capital.

Capital Stock, Dynamics, Innovation, Investment, Polluting Firm

Abstract:
This study aims to identify the critical factor(s) that determine the embeddedness level (EL) of rural entrepreneurs. In order to achieve this aim, existing applied studies on the embeddedness of entrepreneurs undertaken in different rural areas were systematically collected to create a database in order to provide the material for a systematic comparative analysis. This was done in order to highlight common and contrasting findings from a set of selected studies for different ELs. As many results of these studies were largely qualitative in nature and only partially comparable, a specific tool for analysing categorical data based on artificial intelligence methods, viz. rough set data analysis (RSDA), was employed. This experimental study is the first RSDA approach that compares the results of several rural case studies and infers general induction rules for the different ELs. The results of our analysis show that using and benefiting from local resources are the key factors that explain how entrepreneurs become embedded in rural areas.

Q190, R23

Abstract:
Firms offer compensation not only through wages, but also offer transport-related fringe benefits such as transport benefits (company cars, travel, and parking benefits) and relocation benefits to job applicants. We argue that these benefits are not randomly offered to employees, but depend on the job applicants' commuting costs. The firms' choice between these benefits affects the workers' incentive to move their residence closer to the workplace. Using information on firms' recruitment behavior in the United Kingdom, this paper shows empirically that the applicants' journey-to-work time induces firms to offer these benefits to job applicants. The implications of transport-related fringe benefits for commuting and relocation are found to be rather distinct. Transport benefits make employees less sensitive to the costs of commuting, whereas relocation benefits induce employees to move closer to the workplace.

Abstract:
Resources such as orchards are vulnerable to the detrimental effects of successful invasions by alien animal or plant species. To outline an appropriate policy response, we first use renewal theory to construct a stochastic model of optimal orchard management in the presence of a deleterious alien species. Next, we derive the orchard manager's long run expected cost (LREC) of orchard management per unit time. Finally, we show that when confronted with a successful biological invasion, the optimal number of trees that need to be removed and replanted in order to keep the orchard under study sustainable in the long run minimizes the LREC function mentioned above.

Alien Species, Long Run Expected Cost, Orchard Management, Uncertainty

Abstract:
Resources such as orchards are vulnerable to the detrimental effects of successful invasions by alien animal or plant species. To outline an appropriate policy response, we first use renewal theory to construct a stochastic model of optimal orchard management in the presence of a deleterious alien species. Next, we derive the orchard manager's long run expected cost (LREC) of orchard management per unit time. Finally, we show that when confronted with a successful biological invasion, the optimal number of trees that need to be removed and replanted in order to keep the orchard under study sustainable in the long run minimizes the LREC function mentioned above.

Alien Species, Long Run Expected Cost, Orchard Management, Uncertainty

Abstract:
Most "wage curve" studies ignore the geography of local labor markets. However, when a local labor market is in close proximity of other labor markets, a local shock that increases unemployment may not lead to lower pay rates if employers fear outward migration of their workers. Hence, the unemployment elasticity of pay will be greater, the more isolated the local labor market is. Wages are also expected to be higher in regions that interact strongly with other regions. These hypotheses are confirmed by means of an estimation of wage curves with data for 327 regions of western Germany over the period 1990-1997.

Abstract:
At any point in time, a cleared parcel of forest land (CPFL) used for swidden agriculture exists in either the fallow or in the non-fallow state. Further, the practice of swidden agriculture requires one to operate in an environment of uncertainty. These two points notwithstanding, there are virtually no probabilistic models of swidden agriculture that explicitly account for the above dichotomy. Hence, in this paper, we use a stochastic model and a long run perspective to shed light on two hitherto unstudied questions concerning a CPFL used for swidden agriculture. First, we use renewal theory to determine the long run fraction of time that our CPFL is in either the fallow or in the non-fallow state. Second, we use the hyperexponential distribution to compute the stationary probability that the excess variable associated with the stochastic process representing our CPFL exceeds a given value.

Fallow State, Non-Fallow State, Stochastic Process, Swidden Agriculture

Abstract:
At any point in time, a cleared parcel of forest land (CPFL) used for swidden agriculture exists in either the fallow or in the non-fallow state. Further, the practice of swidden agriculture requires one to operate in an environment of uncertainty. These two points notwithstanding, there are virtually no probabilistic models of swidden agriculture that explicitly account for the above dichotomy. Hence, in this paper, we use a stochastic model and a long run perspective to shed light on two hitherto unstudied questions concerning a CPFL used for swidden agriculture. First, we use renewal theory to determine the long run fraction of time that our CPFL is in either the fallow or in the non-fallow state. Second, we use the hyperexponential distribution to compute the stationary probability that the excess variable associated with the stochastic process representing our CPFL exceeds a given value.

Fallow State, Non-Fallow State, Stochastic Process, Swidden Agriculture

Abstract:
We compare a set of econometric studies that measure the effect of net internal migration in neoclassical models of long-run real income convergence and derive 67 comparable effect sizes. The precision-weighted estimate of beta convergence is about 2.7%. An increase in the net migration rate of a region by one percentage point in increases the per capita income growth rate in that region on average by about 0.1 percentage points, thus suggesting an impact of net migration that is more consistent with endogenous self-reinforcing growth than with neoclassical convergence. Introducing a net migration variable in a growth regression increases the estimate of beta convergence slightly. Studies that use panel models or IV estimation methods yield smaller coefficients of net migration in growth regressions, while the opposite holds for regressions controlling for high-skilled migration.

internal migration, economic growth, convergence, meta-analysis, neoclassical model, regional disparities

Abstract:
This study reviews insights and reflectionsoriginating from the recently developed concept of self-organized criticality(SOC), which is based on the idea that complex behavior can developspontaneously in various many-body systems whose dynamics may vary abruptly andunexpectedly. First, some thoughts are offered on the study of evolutionary dynamics inthe past decade.Next, a review of the characteristics of SOC ispresented, and an attempt is made to measure SOC. This attempt is carriedout with reference to the employment dynamics of the members of the leadingDutch trade association of real estate agents.The data set covers theperiod between 1985 and 2000 and comprises 411 firms for each period oftime.Analysis of the data supports the existence of a critical state inwhich the correlation of the employment growth rates is such that fluctuationsof all dimensions are observable. As a result, the evolution of the systemoccurs through large negative and positive employment avalanches.(SAA)

Firm dynamics, Self-organization, Firm growth, Real estate, Behavior change, Employment rates, Evolution model

Abstract:
Taken together, the thirteen chapters of this book combinethe literature on the role of the entrepreneur with the new economic geographyliterature in order to illuminate the spatial context in which economicdevelopment takes place.The volume consists of four parts.While thefirst part is conceptual, revealing how evolutionary and neoclassical theoriesof economic development have converged, the second and third parts areempirical and describe the spatial variation in drivers of economic growth byoffering case studies.The fourth part contributes to new theorydevelopment. (SAA) Table of Contents Firm Behavior and Organization from an Evolutionary Perspective, JeroenC.J.M. van den Bergh The Roles of Entrepreneurship in Economic Growth: Toward a Theory of TotalFactor Productivity, Jack High Technocapitalism and the New Ecology of Entrepreneurship, LuisSuarez-Villa Spatial Variation in Social Capital among UK Small and Medium-SizedEnterprises, Philip Cooke and Nick Clifton The Institutionalization and Endogenization of Venture Capital: A RegionalAnalysis of Northern Virginia in the 1990s, Roger R. Stough, Peter Frank,and Gordon Shockley Human Capital and Regional Socio-Economic Performance: Differential Patternsacross Australia’s Cities and Towns, Robert J. Stimson and ScottBaum A Knowledge-Based View on Innovation in Regional Networks: The Case of theKIC Project, Roel Rutten and Frans Boekema The Role of Collective Learning in ICT Adoption and Use, Roberta Capelloand Alessia Spairani Industrial Clusters and Regional Development: A Transaction-CostsPerspective on the Semiconductor Industry, Philip McCann and TomokazuArita Academic Knowledge and Fostering Entrepreneurship: An EvolutionaryPerspective, Marina van Geenhuizen and Danny Soetanto Location of Engineering and Designer Services in the Information Economy,Hildegunn Kyvik Nordås Firm Dynamics and Self-Organized Criticality, Rainer Andergassen, AuraReggiani, and Peter Nijkamp Knowledge, Capital Formation and Innovation Behavior in a Spatial Context,Günter Haag and Philipp Liedl

Regional networks, Capital formation, Clusters, Economic growth, Human capital, Innovation process, Productivity growth, Regional development, Social capital, Learning networks, Organizational behavior, Academic research, Location factors, Geography, Transaction cost economics, Venture capital, Evolution model, Human capital

Abstract:
Alonso's Theory of Movements is a widely applicable Spatial Interaction Model, describing an equilibrium of inflows and outflows. Based on a survey of estimation attempts in the past, we conclude that econometric estimation of the so-called systemic parameters is somewhat problematic. In this paper we describe a new estimation method, using instrumental variables which are derived from the model. The distance deterrence parameter and the unobserved balancing factors can be estimated first, with known methods. The remaining parameters can be estimated in an iterative regression procedure, using instruments for the balancing factors. These instruments are derived as the predicted values of the balancing factors, based on the last obtained parameter estimates.

spatial interaction models, Alonso's Theory of Movement, balancing factor, nonlinear simultaneous equation, estimation methods, instrumental variables

Abstract:
The Spatial Interaction Model proposed by Alonso as “Theory of Movements” offers an innovative specification of spatial origin-destination flow models. Equations for flows between regions, total outflow from and total inflow to a region are linked by balancing factors. This paper presents a consistent formulation of Spatial Interaction Models in the Wilson tradition and Alonso's Theory of Movements. The paper is intended as an introduction to the model and a review of the state of the art. Besides it is argued that simultaneous equation techniques are required to estimate the so-called systemic parameters.

Alonso's Theory of Movements, Spatial Interaction Models, relaxed Gravity Models

Abstract:
Because of heterogeneity across regions, economic policy measures are increasingly targeted at the regional level. As a result, the need for economic forecasts at a sub-national level is rapidly increasing. The data available to compute regional forecasts is usually based on a pseudo-panel that consists of a limited number of observations over time, and a large number of areas (regions) strongly interacting with each other. In such a situation, the application of traditional time-series techniques to distinct time series of regional data may then become a sub-optimal forecasting strategy. In the field of regional forecasting of socio-economic variables, both linear and non-linear models have recently been applied and evaluated. However, often such analyses tend to ignore the spatial structure of the data and the spatial interactions that are likely to exist among regions. In this paper, we evaluate the ability of different statistical techniques - namely spatial lag and spatial error models - to correct for misspecification due to neglected spatial autocorrelation in the data set. Our empirical application concerns short-term forecasts of employment in 326 West German labour market regions. We find that the superimposed spatial structure that is required for the estimation of spatial models improves the forecasting performance of non-spatial forecasting models.

Space-time data, regional forecasts, spatial heterogeneity, spatial spillovers

Abstract:
In this paper we propose an equilibrium model for the housing market which provides an explanation for observed housing consumption of households over their lifetimes. The moving behavior of households is described as a stochastic dynamic process in which households' moving decisions depend on information which is obtained over time. Households move when the offer exceeds an endogenously determined threshold. On the basis of the households' moving behavior, the steady-state distribution of households over the housing stock is obtained. On the supply side of the market, landlords are looking for households to occupy their vacant dwellings. Their strategy is to set rents in a mixed strategy in order to profit from imperfect information. After formulating search behavior of households as well as the behavior of landlords, the market equilibrium is derived. We explore the sensitivity of the equilibrium to changes in the structural parameters.

Housing, Residential Search, Residential Mobility

Abstract:
This paper focuses on the recruitment behavior of firms at the extensive margin; we empirically explore the relationship between employer search strategies and the number of applicants by means of (reduced form) two-equations simultaneous models. The empirical analysis is carried out on a rich micro data set on Dutch employer recruitment behavior. Our empirical analysis reveals that the economic conditions prevailing on the labor market influence employer search activity at the extensive margin. In particular, we see that in tight (slack) labor markets characterized by excess demand (supply) of labor, the flow of applicants is smaller (larger). Employers react to the shortage (excess) of applicants by using more (less) often advertisements. This recruitment channel appears to trigger a significantly larger flow of applicants.

recruitment, labor demand

Abstract:
The decision to move job and the decision to move residence are closely related dynamic discrete choices, as both moves involve a change of commuting distance. This suggests that labour and residential mobility are mutually dependent and should be simultaneously analysed, based on a theory which incorporates these dynamic decisions explicitly. In the present paper, we base our analysis on search theory and choose the point of departure that individuals maximise utility by moving through different labour market and housing market states, while taking into consideration that moving from one state to another is costly. Based on these assumptions, a search model is constructed and the optimality conditions are derived.

One of main conclusions based on the search model is that the effect of factors which cause housing market imperfections (viz. the residential moving costs and the residence arrival rate) have ambiguous effects on he job acceptance and job search behaviour of employed individuals. For some interesting cases however, the effect of the residential moving costs on the job acceptance behaviour can be derived. In contrast, the effect of housing market imperfections on the labour market behaviour of nonemployed persons is determined. We find for example that housing policies which discourage nonemployed persons to move residence (e.g. housing subsidies) also decrease the probability of becoming employed and may therefore unintentionally increase the number of nonemployed persons.

Abstract:
In this paper an airport and airline choice model, based on a nested multinomial logit model, is developed to investigate both airport competition and airline competition in a metropolitan area with multiple departure airports. The model can be used to analyze the effects of, e.g., an improvement in accessibility of a specific airport in a metropolitan area. It is shown analytically that if the frequency elasticity of demand is smaller than 1, unique airfare-frequency and passenger-charge equilibria exist. Next, symmetric equilibria are derived analytically; their properties are also examined. Finally, asymmetric equilibria are derived numerically, while their properties are discussed as well.

airport competition; airline competition; discrete choice model

Abstract:
This paper analyzes the adoption of energy-efficiency enhancing technologies by heterogeneous firms. The fact that energy use does not only cause external environmental costs through pollution, but also directly affects the profitability of the firm and hence its behaviour on input and output markets is taken for granted. It is demonstrated that the consideration of such market processes may have important implications for the efficiency of environmental policies concerned with energy use.