References of "Regional Science and Urban Economics"
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See detailUrban Structures with Forward and Backward Linkages
Picard, Pierre M UL

in Regional Science and Urban Economics (2020), 59(3), 480-507

We study urban structures driven by demand and vertical linkages in the presence of increasing returns to scale. Individuals consume urban varieties and firms use these varieties to produce a national ... [more ▼]

We study urban structures driven by demand and vertical linkages in the presence of increasing returns to scale. Individuals consume urban varieties and firms use these varieties to produce a national good. We prove the existence of a spatial equilibrium and obtain an invariance result according to which more intense demand or vertical linkages have the same effect on the urban structure as lower commuting costs. Various urban configurations can emerge exhibiting a monocentric, an integrated, a duocentric, or a partially integrated city structure. We discuss the role of commuting and transport costs, demand and vertical linkages, and urbanization in shaping these patterns. We show that multiple equilibria may arise involving the monocentric city and up to a couple of duocentric and partially integrated structures. [less ▲]

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See detailHow do inventor networks affect urban invention?
Berge, Laurent UL; Carayol, Nicolas; Roux, Pascale

in Regional Science and Urban Economics (2018), 71

Social networks are expected to matter for invention in cities, but empirical evidence is still puzzling. In this paper, we provide new results on urban patenting covering more than twenty years of ... [more ▼]

Social networks are expected to matter for invention in cities, but empirical evidence is still puzzling. In this paper, we provide new results on urban patenting covering more than twenty years of European patents invented by nearly one hundred thousand inventors located in France. Elaborating on the recent economic literatures on peer effects and on games in social networks, we assume that the productivity of an inventor’s efforts is positively affected by the efforts of his or her partners and negatively by the number of these partners’ connections. In this framework, inventors’ equilibrium outcomes are proportional to the square of their network centrality, which encompasses, as special cases, several well-known forms of centrality (Degree, Katz-Bonacich, Page-Rank). Our empirical results show that urban inventors benefit from their collaboration network. Their production increases when they collaborate with more central agents and when they have more collaborations. Our estimations suggest that inventors’ productivity grows sublinearly with the efforts of direct partners, and that they incur no negative externality from them having many partners. Overall, we estimate that a one standard deviation increase in local inventors’ centrality raises future urban patenting by 13%. [less ▲]

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See detailEquilibrium and first-best city with endogenous exposure to local air pollution from traffic
Schindler, Mirjam UL; Caruso, Geoffrey UL; Picard, Pierre M UL

in Regional Science and Urban Economics (2017), 62

Exposure to urban traffic-induced air pollution is a major health concern of cities. This paper analyzes the urban structure when localized pollution exposure arises from commuting traffic and ... [more ▼]

Exposure to urban traffic-induced air pollution is a major health concern of cities. This paper analyzes the urban structure when localized pollution exposure arises from commuting traffic and investigates the feedback effect of endogenous pollution on residential choices. The presence of stronger traffic-induced air pollution exposure reduces the geographical extent and the population of cities. Land rents fall with distance from the city center while population densities may be non-monotonic. Cleaner vehicle technologies reduce pollution exposure everywhere, increase population and density everywhere and do not affect the spatial extent of the city. The paper compares the urban equilibrium with the first-best. The first-best structure is a less expanded city with higher densities at the center and lower densities at the fringe. [less ▲]

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See detailTrade, economic geography and the choice of product quality
Picard, Pierre M UL

in Regional Science and Urban Economics (2015), 54

The present paper studies the effect of the choice of product quality on trade and location of firms. We discuss a model where consumers have preferences for the quality of a set of differentiated ... [more ▼]

The present paper studies the effect of the choice of product quality on trade and location of firms. We discuss a model where consumers have preferences for the quality of a set of differentiated varieties. Firms do not only develop and sell manufacturing varieties in a monopolistic competitive market but also determine the quality level of their varieties by investing in research and development. We explore the price and quality equilibrium properties when firms are immobile. We then consider a footloose capital model where capital is allocated to the manufacturing firms in the region offering the highest return. We show that the larger region produces varieties of higher quality and that the quality gap increases with larger asymmetries in region sizes and with larger trade costs. Finally, the home market effect is mitigated when firms choose their product quality. [less ▲]

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See detailWhere and When to Invest in Infrastructure
Brueckner, Jan K; Picard, Pierre M UL

in Regional Science and Urban Economics (2014)

This paper analyzes an irreversible “where-and-when” investment decision, in which a government must decide not only when to invest in income-increasing infrastructure but also where to make the ... [more ▼]

This paper analyzes an irreversible “where-and-when” investment decision, in which a government must decide not only when to invest in income-increasing infrastructure but also where to make the investment, doing so under imperfect observability of the investment gains. The two models considered in the paper differ in the source of the imperfection. In the signal model, the imperfection comes from imperfect observability of initial income gains from the investment, while in the option model, it comes from the stochastic nature of the income gains in the second period. In addition to providing the first treatment of this type of problem, the analysis shows that the influences of underlying parameters on whether or not the government waits to invest are similar in the two models. [less ▲]

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See detailEnvironmental Policy, First Nature Advantage and the Emergence of Economic Clusters
Kyriakopoulou, Efthymia UL; Xepapadeas, Anastasios

in Regional Science and Urban Economics (2013), 19(3),

We explain the spatial concentration of economic activity when the cost of environmental policy – which is increasing in the concentration of pollution – acts as a centrifugal force, while positive ... [more ▼]

We explain the spatial concentration of economic activity when the cost of environmental policy – which is increasing in the concentration of pollution – acts as a centrifugal force, while positive knowledge spillovers and a site with natural cost advantage act as centripetal forces. We study the agglomeration effects caused by trade-offs between centripetal and centrifugal forces which eventually determine the distribution of economic activity across space. The equilibrium solution with spatially myopic environmental policy results either in a monocentric or in a polycentric city with the major cluster at the natural advantage site. The regulator's optimum results in a bicentric city, which suggests that when environmental policy is spatially optimal, the natural advantage sites do not act as attractors of economic activity. In general, our results suggest that sites with inherent advantages can lose their comparative advantage when social costs at these spatial points are taken into account. [less ▲]

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See detailFirms' locations under demand heterogeneity
Picard, Pierre M. UL; Okubo, Toshihiro

in Regional Science and Urban Economics (2012), 42(6), 961-974

In this paper we build an economic geography model where rms sell product varieties with heterogenous demands. We show that rms selling the products with higher demands select to set up their plants in ... [more ▼]

In this paper we build an economic geography model where rms sell product varieties with heterogenous demands. We show that rms selling the products with higher demands select to set up their plants in larger countries. Larger countries do not only get better access to more varieties but also to the most demanded and valuable ones. The impact of such a spatial selection on fi rms location choice depends on the skewness of the distribution of demand intensity across varieties. In a model where only capital moves across regions, demand heterogeneity generally diminishes the amount of capital invested in the larger country. In a model where the work force moves across regions, demand heterogeneity is shown to eliminate dramatic changes in the location patterns and to result in the asymmetric dispersion of workers, rather their symmetric dispersion or complete agglomeration in a specic region. [less ▲]

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See detailFinancial Integration and Remittances
Beine, Michel UL; Lodigiani, Elisabetta; Vermeulen, Robert John Gerard UL

in Regional Science and Urban Economics (2012), 42(5),

Migrant remittances increased strongly since the 1980s, becoming an important and reliable source of funds for many developing countries. Therefore, there is a strong incentive for receiving countries to ... [more ▼]

Migrant remittances increased strongly since the 1980s, becoming an important and reliable source of funds for many developing countries. Therefore, there is a strong incentive for receiving countries to attract more remittances, especially through formal channels that turn out to be either less expensive and/or less risky than informal ones. One way of doing so is to increase their country's financial openness, but this policy option might also generate additional costs in terms of macroeconomic volatility. In this paper we investigate the link between remittance receipts and financial openness. We statistically test for the existence of such a relationship with a sample of 66 mostly developing countries from 1980–2005. Empirically we use a dynamic generalized ordered logit model to deal with the categorical nature of financial openness policy. We apply a two-step method akin to two stage least squares to deal with the endogeneity of remittances and potential measurement errors. We find a strong positive statistical and economic effect of remittances on financial openness. [less ▲]

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See detailSpatial configurations in a periurban city: a cellular automata-based microeconomic model
Caruso, Geoffrey UL; Peeters, Dominique; Cavailhès, Jean et al

in Regional Science and Urban Economics (2007), 37(5), 542-567

This paper presents a microeconomic model of residential location that explores the emergence of a mixed belt where residents and farmers coexist beyond a city. The model is based on integrating urban ... [more ▼]

This paper presents a microeconomic model of residential location that explores the emergence of a mixed belt where residents and farmers coexist beyond a city. The model is based on integrating urban economics with cellular automata in order to simulate equilibrium patterns in 2D and through time. Households commute to a CBD and enjoy neighbourhood externalities that are a function of both local residential density and farmland, or open space. They bid on the competitive land market and locate so as to maximize utility. Incremental population growth changes the neighbourhood and leads to rent adaptations. With appropriate parameter values a mixed belt may emerge between the urban and agricultural specialized areas. Settlements within this mixed area are more or less clustered or scattered depending on preferences and neighbourhood size. [less ▲]

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See detailRegional Asymmetries: Economies of Agglomeration Versus Unionized Labor Markets
Picard, Pierre M UL; Toulemonde, Eric

in Regional Science and Urban Economics (2003), 33(2), 223-49

We study the geographical location of a unionized manufacturing industry under technological externalities. When firms benefit from locating in the vicinity of similar firms, we show that they locate in ... [more ▼]

We study the geographical location of a unionized manufacturing industry under technological externalities. When firms benefit from locating in the vicinity of similar firms, we show that they locate in symmetric, partially asymmetric or single clusters.We examine the effects of changes in the productivity parameters, in the product demand parameters and in the union characteristics. Finally, we explore the possibility of hysteresis in firm location and we analyze the welfare implication of a change in union power. [less ▲]

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See detailAttribute dependence and the provision of quality
Degryse, Hans; Irmen, Andreas UL

in Regional Science and Urban Economics (2001), 31(5), 547-569

A quality improvement often necessitates modifications of varietal product features. This paper studies firms’ incentives to provide quality when this decision affects the goods’ degree of horizontal ... [more ▼]

A quality improvement often necessitates modifications of varietal product features. This paper studies firms’ incentives to provide quality when this decision affects the goods’ degree of horizontal differentiation. Intuitively, one is inclined to argue that private incentives to provide quality are insufficient relative to the social optimum if a quality improvement reduces horizontal differentiation. We find that this argument depends on whether the game is simultaneous or sequential. In the former case private incentives prove excessive relative to the social optimum, and in the latter case, insufficient. As a result, a regulator might want to impose either minimum or maximum quality standards.<P>(This abstract was borrowed from another version of this item.) [less ▲]

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