Journal of Regional Science最新文献

We study how internal trade costs affect the Chinese economy. Combining regional and industry data with a multiregional multisector general equilibrium model, we quantify the magnitude of total trade costs and institutional trade costs, and the impact of their changes on aggregate, regional, and sectoral total factor productivity, gross domestic product, and welfare. Using unique data, we estimate the sectoral trade elasticity of internal trade in 16 tradable sectors. We use our calibrated model to perform a variety of counterfactual exercises. We find that the welfare gains are negative for a 5% reduction in total trade costs and for the elimination of institutional trade costs, which can be attributed to inherent inefficiencies in the economy. However, as total trade costs decrease further, the positive welfare effect significantly exceeds the impact of inefficiency. The regional and sectoral effects of changes in trade costs show that the spatial structure of the economy, input-output linkages, and local factors together determine the heterogeneity of sectoral and regional consequences. Finally, we infer the relative changes in China's internal trade costs from 2012 to 2017, and calculate their economic effects.

We explore the wage effects of offshoring-induced employment shocks in US commuting zones (CZs) and industries. Using data on petitions for the Trade Adjustment Assistance (TAA), we measure such shocks by computing the share of TAA-certified offshoring-induced layoffs out of total employment. We further identify material-offshoring shocks and service-offshoring shocks and connect the TAA data to individual-level worker data from the American Community Survey. Empirical results show statistically significant and negative wage effects of the CZ-level offshoring shocks, especially for service offshoring. On the contrary, we find positive wage effects of industry-level offshoring shocks in industries exposed to both types of offshoring. Furthermore, we show that offshoring is associated with the widening gender wage gap in local labor markets and that workers in production and highly-offshorable occupations are more vulnerable to the CZ-level offshoring shocks.

The popularity of working from home (WFH) in the US has surged over the past two decades, with the COVID-19 pandemic further accelerating this trend. We hypothesize that WFH not only reduces the frequency of physical commutes but also lowers the time cost of commutes due to decreased urban congestion levels; both factors would flatten house-price gradients. Analyzing big data from Google Maps on travel time in California, we first confirm that COVID-19, as a WFH-boosting shock, induced larger decreases in morning travel time in cities with a higher WFH potential. We then empirically validate the effect of WFH on house-price gradients, channeled through its impact on commuting time; this effect explains 20% of the total WFH-induced flattening of house-price gradients during the pandemic in California.

China has experienced a boom of industrial robots in the past decade. Under the shock of robotization on labor market, migration is a critical way to rebalance the economy. While many studies have investigated the influence of robotization on labor market in the automation-advanced countries, few works shed light on the situation in the emerging market. We provide empirical evidence on the effect of industrial robots on intercity migration in China. We find that, industrial robot adoption has a significant negative effect on the net inflow migration by reducing population inflows, while has little effect on population outflows. The decline in population inflows is concentrated among low-skilled migrants who are younger, less educated and in manufacturing sectors, because they are more likely to experience unemployment and wage declines in the face of industrial robots. The analysis of migration cost demonstrates that the negative impact of industrial robots on population inflows increases with the longer migration distances, higher living costs, and greater institutional entry barriers caused by Hukou Registration System in China.

The global economic and food crisis has increased the demand for land and rekindled the interest in farmland market investments worldwide. This study explores the Italian farmland market, investigating its main influencing factors from 1992 to 2019 using a spatial econometric framework. Traditional land characteristics and location-specific agricultural factors, as well as non-agricultural factors, are assessed. The average level of farmland prices and their growth are analyzed by modeling the potential types of spatial interactions, and the results are corroborated by considering different configurations of spatial weight matrices. The results show that farmland markets are influenced by land's current net returns as well as by its potential alternative uses. Therefore, factors considered external to the agricultural dimension, such as population pressure, climate change, and speculative expectations, increasingly shape farmland prices.

We leverage a national panel of US municipalities to show that behavioral finance helps explain the number of months of expenses that municipalities save in cash and investment reserves. We hypothesize that municipal managers may be using numerical anchoring based on historical values to target the number of months of savings to hold and that they may also be engaged in social learning to target months of savings based on the behavior of neighboring municipalities. We test for these effects by combining two innovative techniques, a two-stage regression designed to test for anchoring of present financial values based on theoretically unimportant historical values, and a measure of the spatial autocorrelation of savings to test for social learning. The results suggest that, in deciding how much to save, municipal managers are influenced by the levels of savings they held in the past and the savings levels of their neighbors, and that they underreact to changes in theoretically relevant economic fundamentals. Further tests also suggest that the smallest cities by population are more influenced by the behavior of their neighbors than their past savings, whereas the largest cities show the opposite result, effectively choosing themselves as their own role models.

This paper reports on the employment migration behavior of non-White ethnic minority graduates in the United Kingdom for the 2018/2019 graduation cohort, which is the last cohort to enter the labor market before the COVID-19 pandemic. Using data from the new Graduate Outcomes survey and controlling for a rich set of background characteristics, the findings indicate that ethnic minority graduates are more likely than their White counterparts to find work in ethnically diverse areas of the United Kingdom after leaving higher education. An identity utility framework is then formalized that combines identity economics with traditional approaches of human capital theory and job search theory. A test of an ethnic identity-based hypothesis reveals that Asian, Black, and Mixed-background graduates are comparatively more likely to migrate to areas with higher ethnic diversity levels, rather than less diverse areas. In addition to traditional explanations based on human capital theory and job search theory, this paper argues that these patterns are best explained by ethnic identity norms, which introduce a preference for working in ethnically diverse places. However, the results should be interpreted with some caution because of concerns related to heterogeneity within the ethnic group classifications used in the paper and possible omitted and unobserved variables.

We contribute to the limited knowledge of the consequences of municipal splits by estimating how break-ups of seven Swedish municipalities affected per capita expenditures. To predict what would have happened had the break-ups not taken place, we apply the matrix completion method with nuclear norm minimization. We find that smaller municipalities not necessarily imply higher per capita expenditures. Instead, expenditures increase in some cases, are unaffected in others, and in others, decrease. The results point to the complex nature of territorial reforms and underscore the perils of policy recommendations that take uniform outcomes of either amalgamations or break-ups for granted.