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Empirical behaviour of Anselin et al.’s locally robust LM tests for spatial dependence in a panel data setting
IF 3.5 2区 经济学 Q1 ECONOMICS Pub Date : 2025-04-04 DOI: 10.1016/j.regsciurbeco.2025.104106
Giovanni Millo
A key issue in spatial models is to appropriately specify the spatial effect. Robust Lagrange Multipliers (RLM) tests have long been popular in spatial econometrics for discriminating between spatial lag and spatial error processes. A review of the recent applied literature shows how they are often (mis)applied in a panel context, where further issues arise the tests were not designed to address in the first place: individual or time heterogeneity and time persistence. We address the performance of RLM tests in spatial panels through Monte Carlo simulation showing that they can become virtually useless as a specification device under substantial individual and especially time heterogeneity, regardless whether correlated or not; or in the presence of spatially lagged regressors. Accounting for unobserved effects by demeaning the data or adding dummies restores the good properties of the RLM. The presence of spatially lagged regressors remains instead problematic. We conclude with suggestions for improving applied practice.
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引用次数: 0
Bridging policy and prices: Causal evidence of housing renovation subsidies on property values in Italy
IF 3.5 2区 经济学 Q1 ECONOMICS Pub Date : 2025-03-18 DOI: 10.1016/j.regsciurbeco.2025.104095
Marta Crispino, Michele Loberto
This paper investigates the impact of a government renovation subsidy program on housing prices, with a focus on the Italian region of Piemonte. We exploit a spatial discontinuity in the eligibility criteria for a tax credit targeting anti-seismic renovations and employ a difference-in-differences methodology to assess the policy’s effects. Our findings show that prices of apartments eligible for the subsidy increased by 3.2 percent more compared to those of ineligible properties. This increase rises to 11.2 percent when considering only single-family detached homes.
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引用次数: 0
Immigrants and entrepreneurship: A road for talent or just the only road?
IF 3.5 2区 经济学 Q1 ECONOMICS Pub Date : 2025-03-07 DOI: 10.1016/j.regsciurbeco.2025.104093
Susana Iranzo
The available evidence suggests that migrant entrepreneurs contribute to a country’s growth and innovation, but entrepreneurship might also be chosen by less talented migrants who have limited chances in the labor market. This paper develops a theoretical framework that features specific constraints migrants face to better understand the mechanisms at play in their occupational choices. I test the model predictions using data for Spain right after the migration boom occurred from the mid-1990s to the mid-2000s. I find that human capital losses upon arrival are largely responsible for the low propensities to self-employment of the three largest migrant groups (Romanians, Moroccans and Ecuadorians) observed in the data. Also, I find no evidence of negative sorting into self-employment. Yet, the relatively large self-employment rate of Moroccans, once human capital is properly accounted for, and their low entrepreneurial quality is consistent with this group of migrants being subject to penalties in the labor market associated to information problems that push them into self-employment.
{"title":"Immigrants and entrepreneurship: A road for talent or just the only road?","authors":"Susana Iranzo","doi":"10.1016/j.regsciurbeco.2025.104093","DOIUrl":"10.1016/j.regsciurbeco.2025.104093","url":null,"abstract":"<div><div>The available evidence suggests that migrant entrepreneurs contribute to a country’s growth and innovation, but entrepreneurship might also be chosen by less talented migrants who have limited chances in the labor market. This paper develops a theoretical framework that features specific constraints migrants face to better understand the mechanisms at play in their occupational choices. I test the model predictions using data for Spain right after the migration boom occurred from the mid-1990s to the mid-2000s. I find that human capital losses upon arrival are largely responsible for the low propensities to self-employment of the three largest migrant groups (Romanians, Moroccans and Ecuadorians) observed in the data. Also, I find no evidence of negative sorting into self-employment. Yet, the relatively large self-employment rate of Moroccans, once human capital is properly accounted for, and their low entrepreneurial quality is consistent with this group of migrants being subject to penalties in the labor market associated to information problems that push them into self-employment.</div></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"112 ","pages":"Article 104093"},"PeriodicalIF":3.5,"publicationDate":"2025-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143685162","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Does it take extra skills to work in a large city?
IF 3.5 2区 经济学 Q1 ECONOMICS Pub Date : 2025-02-27 DOI: 10.1016/j.regsciurbeco.2025.104094
Harm Jan Rouwendal, Sierdjan Koster
This paper explores the relationship between job complexity and agglomeration. For this, we assess whether vacancies in larger cities require more skills than vacancies for similar jobs elsewhere. The use of online job vacancy data allows us to empirically analyse the spatial variation in skill requirements within occupations. Results show that jobs in dense areas require extra skills compared to similar jobs in sparsely populated areas. Moreover, we show that jobs in large cities require a more diverse skill set. This indicates that urban jobs are more complex. These findings help explain the productivity premium of cities and spatial inequalities between urban and rural labour markets.
{"title":"Does it take extra skills to work in a large city?","authors":"Harm Jan Rouwendal,&nbsp;Sierdjan Koster","doi":"10.1016/j.regsciurbeco.2025.104094","DOIUrl":"10.1016/j.regsciurbeco.2025.104094","url":null,"abstract":"<div><div>This paper explores the relationship between job complexity and agglomeration. For this, we assess whether vacancies in larger cities require more skills than vacancies for similar jobs elsewhere. The use of online job vacancy data allows us to empirically analyse the spatial variation in skill requirements within occupations. Results show that jobs in dense areas require extra skills compared to similar jobs in sparsely populated areas. Moreover, we show that jobs in large cities require a more diverse skill set. This indicates that urban jobs are more complex. These findings help explain the productivity premium of cities and spatial inequalities between urban and rural labour markets.</div></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"112 ","pages":"Article 104094"},"PeriodicalIF":3.5,"publicationDate":"2025-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143549547","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Health facility quality peer effects: Are financial incentives necessary?
IF 3.5 2区 经济学 Q1 ECONOMICS Pub Date : 2025-02-21 DOI: 10.1016/j.regsciurbeco.2025.104091
Finn McGuire , Rita Santos , Peter C. Smith , Nicholas Stacey , Ijeoma Edoka , Noemi Kreif
This paper examines peer effects in health facility quality in South Africa. Specifically, we investigate whether health facilities adapt their quality in response to changes in the quality of peer facilities, even in the absence of material incentives for doing so. Using a national census of public primary health facilities, we exploit data on structural and process components of quality, examining how these measures change from 2015 to 2017. We examine facilities strategic interactions using both a spatial econometrics approach and a more traditional quasi-experimental approach exploiting a quality improvement program as a source of exogeneous variation to estimate the response of facilities to changes in the quality of their peers. We find evidence of quality peer effects between primary health care facilities, with a 10-unit increase in average District facility quality causing facilities to increase their quality by 3.6 units. Given the lack of financial incentives, we propose prosocial motivation and reputational concerns as the mechanism inducing facilities to respond to changes in peer quality. This finding is consistent with recent literature which has stressed the role measurement and public reporting can play in improving public service, and particularly health care, provision. Importantly, our findings have significant policy implications suggesting the provision of relative performance information, allowing for peer comparisons, can induce a form of quality yardstick competition and be a credible quality improvement policy which may be considered alongside health financing reforms.
{"title":"Health facility quality peer effects: Are financial incentives necessary?","authors":"Finn McGuire ,&nbsp;Rita Santos ,&nbsp;Peter C. Smith ,&nbsp;Nicholas Stacey ,&nbsp;Ijeoma Edoka ,&nbsp;Noemi Kreif","doi":"10.1016/j.regsciurbeco.2025.104091","DOIUrl":"10.1016/j.regsciurbeco.2025.104091","url":null,"abstract":"<div><div>This paper examines peer effects in health facility quality in South Africa. Specifically, we investigate whether health facilities adapt their quality in response to changes in the quality of peer facilities, even in the absence of material incentives for doing so. Using a national census of public primary health facilities, we exploit data on structural and process components of quality, examining how these measures change from 2015 to 2017. We examine facilities strategic interactions using both a spatial econometrics approach and a more traditional quasi-experimental approach exploiting a quality improvement program as a source of exogeneous variation to estimate the response of facilities to changes in the quality of their peers. We find evidence of quality peer effects between primary health care facilities, with a 10-unit increase in average District facility quality causing facilities to increase their quality by 3.6 units. Given the lack of financial incentives, we propose prosocial motivation and reputational concerns as the mechanism inducing facilities to respond to changes in peer quality. This finding is consistent with recent literature which has stressed the role measurement and public reporting can play in improving public service, and particularly health care, provision. Importantly, our findings have significant policy implications suggesting the provision of relative performance information, allowing for peer comparisons, can induce a form of quality yardstick competition and be a credible quality improvement policy which may be considered alongside health financing reforms.</div></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"112 ","pages":"Article 104091"},"PeriodicalIF":3.5,"publicationDate":"2025-02-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143609623","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Roads, transit and spatial patterns of urbanization in São Paulo: Evidence from the second half of the twentieth century
IF 3.5 2区 经济学 Q1 ECONOMICS Pub Date : 2025-02-19 DOI: 10.1016/j.regsciurbeco.2025.104092
Adriano Borges Costa , P. Christopher Zegras , Siqi Zheng
This article presents evidence of distinct long-term impacts from road and rail infrastructures on urban outgrowth and densification in São Paulo, Brazil (1947–1997) within a Global South context. Using long-difference ordinary least squares models and an instrumental variable approach, we find that the construction of avenues and arterial roads across urbanized areas drove urban expansion and accounted for forty percent of the outgrowth during this 50-year period. In contrast, rail transit investments fostered vertical neighborhood development responsible for one-third of the increase in floor area ratio, while also promoting land use specialization by attracting commercial buildings to central areas and stimulating residential real estate development in peripheral zones. Our findings align with patterns observed in the Global North, reinforcing the broader relationship between transportation investments and urban form.
{"title":"Roads, transit and spatial patterns of urbanization in São Paulo: Evidence from the second half of the twentieth century","authors":"Adriano Borges Costa ,&nbsp;P. Christopher Zegras ,&nbsp;Siqi Zheng","doi":"10.1016/j.regsciurbeco.2025.104092","DOIUrl":"10.1016/j.regsciurbeco.2025.104092","url":null,"abstract":"<div><div>This article presents evidence of distinct long-term impacts from road and rail infrastructures on urban outgrowth and densification in São Paulo, Brazil (1947–1997) within a Global South context. Using long-difference ordinary least squares models and an instrumental variable approach, we find that the construction of avenues and arterial roads across urbanized areas drove urban expansion and accounted for forty percent of the outgrowth during this 50-year period. In contrast, rail transit investments fostered vertical neighborhood development responsible for one-third of the increase in floor area ratio, while also promoting land use specialization by attracting commercial buildings to central areas and stimulating residential real estate development in peripheral zones. Our findings align with patterns observed in the Global North, reinforcing the broader relationship between transportation investments and urban form.</div></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"112 ","pages":"Article 104092"},"PeriodicalIF":3.5,"publicationDate":"2025-02-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143706529","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Equal price for equal place? Demand-driven racial discrimination in the housing market
IF 3.5 2区 经济学 Q1 ECONOMICS Pub Date : 2025-02-18 DOI: 10.1016/j.regsciurbeco.2025.104089
Anthony Lepinteur , Giorgia Menta , Sofie R. Waltl
We presented participants to an online study in Luxembourg with fictitious real-estate advertisements, tasking them to appraise the described properties. A random subset was also shown sellers’ surnames, strongly framed to signal their origins. All else equal, sellers with sub-Saharan African surnames were systematically offered lower prices — amounting to an appraisal penalty of EUR 20,000. This figure is highly heterogeneous and can amount up to around EUR 58,000 for older and low-educated participants. We provide evidence that the appraisal bias likely passes through onto final sales prices and that it may be largely due to statistical rather than taste-based discrimination.
{"title":"Equal price for equal place? Demand-driven racial discrimination in the housing market","authors":"Anthony Lepinteur ,&nbsp;Giorgia Menta ,&nbsp;Sofie R. Waltl","doi":"10.1016/j.regsciurbeco.2025.104089","DOIUrl":"10.1016/j.regsciurbeco.2025.104089","url":null,"abstract":"<div><div>We presented participants to an online study in Luxembourg with fictitious real-estate advertisements, tasking them to appraise the described properties. A random subset was also shown sellers’ surnames, strongly framed to signal their origins. All else equal, sellers with sub-Saharan African surnames were systematically offered lower prices — amounting to an appraisal penalty of EUR 20,000. This figure is highly heterogeneous and can amount up to around EUR 58,000 for older and low-educated participants. We provide evidence that the appraisal bias likely passes through onto final sales prices and that it may be largely due to statistical rather than taste-based discrimination.</div></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"111 ","pages":"Article 104089"},"PeriodicalIF":3.5,"publicationDate":"2025-02-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143480671","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Voluntary retirement savings in China: A spatial ordered probit approach
IF 3.5 2区 经济学 Q1 ECONOMICS Pub Date : 2025-02-03 DOI: 10.1016/j.regsciurbeco.2025.104090
Yong Bao , Timothy N. Bond , Ruiting Sun , Xueping Xiong
This paper employs a spatial ordered probit model to study people’s voluntary retirement savings decisions using survey data collected in 2017 in China, where savings are recorded in a set of discrete ordered categories. To account for spillover effects and cross-sectional correlations, induced by for example omitted factors, we construct spatial connectivity matrices based on age and education for people located in the same province. We estimate the model using a Bayeisan scheme and discuss how to calculate various marginal effects, including those from nonstandard covariates like squared, binary, and multicategorical variables. Our empirical results indicate strong evidence of positive correlation in voluntary retirement savings decisions among high-income and low-income workers in both rural and urban areas. We find that participation in the government-managed basic pension is the strongest predictor of having high voluntary retirement savings, while the effects of income and gender vary across income-area groups.
{"title":"Voluntary retirement savings in China: A spatial ordered probit approach","authors":"Yong Bao ,&nbsp;Timothy N. Bond ,&nbsp;Ruiting Sun ,&nbsp;Xueping Xiong","doi":"10.1016/j.regsciurbeco.2025.104090","DOIUrl":"10.1016/j.regsciurbeco.2025.104090","url":null,"abstract":"<div><div>This paper employs a spatial ordered probit model to study people’s voluntary retirement savings decisions using survey data collected in 2017 in China, where savings are recorded in a set of discrete ordered categories. To account for spillover effects and cross-sectional correlations, induced by for example omitted factors, we construct spatial connectivity matrices based on age and education for people located in the same province. We estimate the model using a Bayeisan scheme and discuss how to calculate various marginal effects, including those from nonstandard covariates like squared, binary, and multicategorical variables. Our empirical results indicate strong evidence of positive correlation in voluntary retirement savings decisions among high-income and low-income workers in both rural and urban areas. We find that participation in the government-managed basic pension is the strongest predictor of having high voluntary retirement savings, while the effects of income and gender vary across income-area groups.</div></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"111 ","pages":"Article 104090"},"PeriodicalIF":3.5,"publicationDate":"2025-02-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143308693","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Work-from-home and cities: An elementary spatial model
IF 3.5 2区 经济学 Q1 ECONOMICS Pub Date : 2025-01-23 DOI: 10.1016/j.regsciurbeco.2025.104086
Jan K. Brueckner
This paper analyzes the urban impacts of hybrid WFH in the simplest possible model, relying on Leontief utility and production functions and other simplifying assumptions. The analysis shows that introduction of WFH raises both the wage and household land consumption (raising worker utility) while shrinking the size of the business district and reducing business land rent. When WFH requires home work space, the city’s overall spatial size increases, with residential rents rising in the suburbs while falling near the center. The decline in business rent and the rotation of the residential rent contour match empirical evidence showing that WFH reduces office-building values and flattens the residential rent gradient.
{"title":"Work-from-home and cities: An elementary spatial model","authors":"Jan K. Brueckner","doi":"10.1016/j.regsciurbeco.2025.104086","DOIUrl":"10.1016/j.regsciurbeco.2025.104086","url":null,"abstract":"<div><div>This paper analyzes the urban impacts of hybrid WFH in the simplest possible model, relying on Leontief utility and production functions and other simplifying assumptions. The analysis shows that introduction of WFH raises both the wage and household land consumption (raising worker utility) while shrinking the size of the business district and reducing business land rent. When WFH requires home work space, the city’s overall spatial size increases, with residential rents rising in the suburbs while falling near the center. The decline in business rent and the rotation of the residential rent contour match empirical evidence showing that WFH reduces office-building values and flattens the residential rent gradient.</div></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"111 ","pages":"Article 104086"},"PeriodicalIF":3.5,"publicationDate":"2025-01-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143163040","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Administrative areas and regional identity formation: The case of East Germany
IF 3.5 2区 经济学 Q1 ECONOMICS Pub Date : 2025-01-22 DOI: 10.1016/j.regsciurbeco.2025.104088
Stefanie Gäbler , Kim Leonie Kellermann
Changing regional administrative structures may have unintended consequences for citizens’ identification with their respective regions. We exploit a historical quasi-experiment to provide novel evidence on the formation of sub-national identities with changing administrative boundaries. During the German Reunification in 1990, federal states in East Germany were re-established. Some counties were located at the intersection of former GDR districts and historical federal states, creating uncertainty about their future state affiliation. Using a difference-in-differences approach, we show that in counties with initially unclear state affiliation, voter turnout in state elections after 1990 decreases by up to 2.5 percentage points. Turnout in national and local elections does not show significant difference. We argue that the uncertainty about their regional affiliation diminished citizens’ political engagement by undermining their identification with the federal state level.
{"title":"Administrative areas and regional identity formation: The case of East Germany","authors":"Stefanie Gäbler ,&nbsp;Kim Leonie Kellermann","doi":"10.1016/j.regsciurbeco.2025.104088","DOIUrl":"10.1016/j.regsciurbeco.2025.104088","url":null,"abstract":"<div><div>Changing regional administrative structures may have unintended consequences for citizens’ identification with their respective regions. We exploit a historical quasi-experiment to provide novel evidence on the formation of sub-national identities with changing administrative boundaries. During the German Reunification in 1990, federal states in East Germany were re-established. Some counties were located at the intersection of former GDR districts and historical federal states, creating uncertainty about their future state affiliation. Using a difference-in-differences approach, we show that in counties with initially unclear state affiliation, voter turnout in state elections after 1990 decreases by up to 2.5 percentage points. Turnout in national and local elections does not show significant difference. We argue that the uncertainty about their regional affiliation diminished citizens’ political engagement by undermining their identification with the federal state level.</div></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":"111 ","pages":"Article 104088"},"PeriodicalIF":3.5,"publicationDate":"2025-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143163037","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
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Regional Science and Urban Economics
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