Posts Tagged ‘spatial econometrics’

DOES CBD THEORY SURVIVE THE TEST OF SMALL CITIES? CITY-SIZE AND SPRAWL IN ITALY

Gianni GUASTELLA

Università Cattolica, Dep of Mathematics and Physics, 41Via Musei, 25121, Brescia (IT)
giovanni.guastella@unicatt.it
Corresponding author

Stefano PAREGLIO

Università Cattolica, Dep of Mathematics and Physics, 41Via Musei, 25121, Brescia (IT)
stefano.pareglio@unicatt.it

Abstract

Economic theory predicts that the equilibrium of different economic forces explains the spatial scale of a city more than the uncontrolled take of agricultural land, which is considered instead as urban sprawl. A wide range of empirical results based on US data for large urban areas supports this hypothesis, showing that the socio-economic and environmental forces explain a vast portion of the variation in urbanization across cities. In this paper, we ask whether these socio-economic forces are relevant also in small cities and if they are in a different manner, provided that sprawling phenomena may occur more easily in small areas due to the larger availability of agricultural land. To answer the question, we estimate the relationship between city size and the socio-economic and environmental forces using data for small and large municipalities in the Lombardy region, Italy, and test to what extent this model is apt to explain size variations. We find that the model is adequate also in the case of small cities but differentiating small from large cities suggests that the sprawl hypothesis cannot be ruled out by the empirical evidence as the process of land conversion from agricultural to urban is substantially faster in small and medium-sized cities compared to large ones.

Keywords: Land Use, Urban Sprawl, Central Business District, Spatial Econometrics, Italy

JEL classification: O18, Q15, R14

read more

SPATIAL ANALISIS OF EFFECT OF GOVERNMENT EXPENDITURES ON ECONOMIC GROWTH

Ziba KARJOO
MA student of economics, Department of Economics, Azad Islamic University, khorasgan Branch
Department of Economics, Islamic Azad University, khorasgan Branch, Isfahan, Iran
ziba.karjoo@gmail.com
(corresponding author)

Majid SAMETI
Associated professor of economics, Department of Economics, University of Isfahan
Department of Economics, University of Isfahan, Isfahan, Iran
mj.sameti@ase.ui.ac.ir

Abstract
Among many factors which affect the economic growth of a country, governments are considered to be the most influential stimulants. Because of the importance of studying the government expenditures on economic growth, many techniques have been suggested so far.
In this article we have applied a new technique, namely Spatial Econometrics Method. This method examines “neighborhood” and “location” factors, which are influential in weakening or reinforcing the effects. In this article, by using Ram’s growth model (1986) and applying geographic aspect to global regression models, attempts are made to discover the effect of U.S states government expenditures on economic growth of states. Finally, it became clear that the growth of each state is influenced by the growth of neighbor states. Also state government expenditures have no effect on economic growth. In addition, the growth of labor force is introduced as one of the influential elements on the states’ economic growth.

read more

Spillover Diffusion and Regional Convergence: A Gravity Approach

Guastella Giovanni
Doctoral School in Economic Policy, Catholic University, Piacenza, Corresponding author

Timpano Francesco
Department of Economics and Social Sciences, Catholic University, Piacenza

Abstract:
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. read more

JEL: R11, O18
Keywords: spatial econometrics, regional growth, spillovers, gravity models