Urban structures with forward and backward linkages
Publication date: Available online 1 February 2020Source: Regional Science and Urban EconomicsAuthor(s): Pascal Mossay, Pierre M. Picard, Takatoshi TabuchiAbstractWe 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...
Source: Regional Science and Urban Economics - February 1, 2020 Category: Science Source Type: research

Do public and private hospitals differ in quality? Evidence from Italy
Publication date: Available online 30 January 2020Source: Regional Science and Urban EconomicsAuthor(s): Francesco Moscone, Luigi Siciliani, Elisa Tosetti, Giorgio VittadiniAbstractWe investigate whether public and private providers differ in quality in Lombardy, a large Italian region. This region has adopted an “internal market”model where public and private providers are paid by DRG and compete for publicly-funded patients for both elective and emergency treatments. Using a large administrative sample in 2012–14, we measure clinical quality with 30-day mortality for the following emergency conditions: heart attack...
Source: Regional Science and Urban Economics - January 31, 2020 Category: Science Source Type: research

Estimation of fixed effects spatial dynamic panel data models with small T and unknown heteroskedasticity
Publication date: Available online 29 January 2020Source: Regional Science and Urban EconomicsAuthor(s): Liyao Li, Zhenlin YangAbstractWe consider the estimation and inference of fixed effects (FE) spatial dynamic panel data (SDPD) models under small T and unknown heteroskedasticity by extending the M-estimation strategy for homoskedastic FE-SDPD model of Yang (2018, Journal of Econometrics). Unbiased estimating equations are obtained by adjusting the conditional quasi-score functions given the initial observations, leading to M-estimators that are free from the initial conditions and robust against unknown cross-sectional...
Source: Regional Science and Urban Economics - January 30, 2020 Category: Science Source Type: research

Fiscal equalization and the tax structure
Publication date: Available online 26 January 2020Source: Regional Science and Urban EconomicsAuthor(s): Fédéric Holm-HadullaAbstractThis paper studies the impact of redistributive fiscal equalization transfers on the choice between a distortionary capital tax and a non-distortionary land tax at the local layer of government. In a standard tax competition model, the paper shows that this impact is ambiguous in that: depending on the motives driving local policy choices, fiscal equalization may either induce a more or a less distortionary tax structure. Using a natural experiment from German municipal finance, the paper p...
Source: Regional Science and Urban Economics - January 27, 2020 Category: Science Source Type: research

Vertical differentiation and airline alliances: The effect of antitrust immunity
Publication date: Available online 21 January 2020Source: Regional Science and Urban EconomicsAuthor(s): Xavier Fageda, Ricardo Flores-Fillol, Ming Hsin LinAbstractThis paper explores the impact of granting antitrust immunity (ATI) to airline alliances in a novel and realistic framework characterized by vertically-differentiated air services. Our theoretical model suggests that non-ATI alliances result in higher quality services at higher fares, whereas granting ATI produces the opposite effect. Using data on the transatlantic market over the period 2010–2017, our theoretical findings on service quality are empirically c...
Source: Regional Science and Urban Economics - January 22, 2020 Category: Science Source Type: research

Why do businesses grow faster in urban areas than in rural areas?
Publication date: Available online 20 January 2020Source: Regional Science and Urban EconomicsAuthor(s): Jungho Lee, Jianhuan XuAbstractWe document that the growth rate of business earnings among young firms is significantly higher in metro areas than in non-metro areas. Agglomeration economies and firm selection (less productive firms are more likely to exit in metro areas) are known to explain a part of the productivity growth in urban areas, but less is known about the role of borrowing constraints. By developing a firm-dynamics model with a location choice, we show borrowing constraints interact with growth and locatio...
Source: Regional Science and Urban Economics - January 21, 2020 Category: Science Source Type: research

The impact of curbside parking regulations on car ownership
Publication date: Available online 15 January 2020Source: Regional Science and Urban EconomicsAuthor(s): Albalate Daniel, Gragera AlbertAbstractCar ownership is a major driver of household travel behavior, and has implications on transport demand, energy consumption, emission levels and land use. However, how curbside parking regulations (i.e. paid parking) affect car ownership remains unclear. Here, we employ a two-way fixed effect model using panel data and difference-in-differences estimations to determine the causal impact of changes in parking regulations and the impact of an extension of a city-wide parking policy in...
Source: Regional Science and Urban Economics - January 17, 2020 Category: Science Source Type: research

Editorial Board
Publication date: January 2020Source: Regional Science and Urban Economics, Volume 80Author(s): (Source: Regional Science and Urban Economics)
Source: Regional Science and Urban Economics - January 11, 2020 Category: Science Source Type: research

Institutional design, political competition and spillovers
Publication date: Available online 7 January 2020Source: Regional Science and Urban EconomicsAuthor(s): Marco Alderighi, Christophe FederAbstractWe establish a link between the best system of government and the strength of inter-state spillovers within a model of political competition with self-interested parties. We show the superiority of the unitary system when: inter-state spillovers are strong; the ego rents of local parties are high; and the system of government is chosen under a veil of ignorance. (Source: Regional Science and Urban Economics)
Source: Regional Science and Urban Economics - January 7, 2020 Category: Science Source Type: research

Can price regulation increase land-use intensity? Evidence from China's industrial land market
Publication date: Available online 31 December 2019Source: Regional Science and Urban EconomicsAuthor(s): Yatang Lin, Yu Qin, Yang Yang, Hongjia ZhuAbstractA major part of the literature on land use regulations focuses on the residential land market. In this paper, we examine the impact of the minimum price policy on the large, but understudied, industrial land market in China. The minimum price policy aims to reduce wasteful land use in the industrial market that results from low transaction prices; it varies across counties or districts. We show that this policy increases the overall land-use intensity in the industrial ...
Source: Regional Science and Urban Economics - January 1, 2020 Category: Science Source Type: research

Urban air pollution and time losses: Evidence from cyclists in London
Publication date: Available online 31 December 2019Source: Regional Science and Urban EconomicsAuthor(s): Joris Klingen, Jos van OmmerenAbstractWe provide novel evidence of the immediate impact of air pollution on time delays in urban outdoor activities. We focus on ambient ozone, which is known to reduce lung capacity. We estimate its effect on cycling speed in London using several estimation strategies, and find that ozone reduces speed for concentrations above 20 ppb, which is far below the minimum threshold suggested by other studies. A 10 ppb increase in ozone concentration leads to a 0.3–0.4% reduction in cycli...
Source: Regional Science and Urban Economics - January 1, 2020 Category: Science Source Type: research

Public transport provision under agglomeration economies
Publication date: Available online 27 December 2019Source: Regional Science and Urban EconomicsAuthor(s): Daniel Hörcher, Bruno De Borger, Woubit Seifu, Daniel J. GrahamAbstractThe purpose of this paper is to investigate, using both theoretical and numerical analysis, the impact of agglomeration externalities on short-run policy decisions in public transport, i.e. socially optimal pricing, frequency setting, and subsidisation. We develop a simple two-mode model in which commuters can opt for car or public transport use; car use leads to congestion, and public transport is subject to crowding. Allowing for agglomeration ex...
Source: Regional Science and Urban Economics - December 27, 2019 Category: Science Source Type: research

Self-driving cars and the city: Effects on sprawl, energy consumption, and housing affordability
Publication date: Available online 23 December 2019Source: Regional Science and Urban EconomicsAuthor(s): William Larson, Weihua ZhaoAbstractWe adapt the classic monocentric city model to consider three main topics related to the possible widespread adoption of autonomous vehicles (AVs): sprawl, energy consumption, and housing affordability. AVs are modeled to reduce marginal commuting costs and in some cases, reduce demand for center-city and residential parking. This creates opposing forces that lead to sprawl in some models and increasing density in others. All models point to welfare increases, but also increases to en...
Source: Regional Science and Urban Economics - December 24, 2019 Category: Science Source Type: research

Choice of hospital and long-distances: Evidence from Italy
Publication date: Available online 20 December 2019Source: Regional Science and Urban EconomicsAuthor(s): Silvia Balia, Rinaldo Brau, Daniela MoroAbstractLong-distance hospitalizations may represent an important phenomenon, especially with severe pathologies. In this work, we investigate patients' elective admissions for cancers of the digestive system distinguishing between “local” hospitals (located in the region of residence) and “distant” hospitals (located in long-distances non-boundary regions). We model patient mobility towards alternative hospitals as a discrete choice process determined by geographical dis...
Source: Regional Science and Urban Economics - December 21, 2019 Category: Science Source Type: research

Compulsory voting and political participation: Empirical evidence from Austria
Publication date: Available online 7 December 2019Source: Regional Science and Urban EconomicsAuthor(s): Stefanie Gaebler, Niklas Potrafke, Felix RoeselAbstractWe examine whether compulsory voting influences political participation as measured by voter turnout, invalid voting, political interest, confidence in parliament, and party membership. In Austria, some states temporarily introduced compulsory voting in national elections. We investigate border municipalities across two states which differ in compulsory voting legislation using a difference-in-differences approach. The results show that compulsory voting increased v...
Source: Regional Science and Urban Economics - December 8, 2019 Category: Science Source Type: research