Do local governments use business tax incentives to compensate for high business property taxes?
Publication date: Available online 29 November 2019Source: Regional Science and Urban EconomicsAuthor(s): Joshua Drucker, Richard Funderburg, David Merriman, Rachel WeberAbstractWhy do municipalities set business property taxes higher than the costs of business services when, in competitive markets, this would result in the inefficient provision of public goods? Statutory tax rates may be set artificially high to allow selective reductions for targeted firms through incentives. We examine the nearly 2500 tax codes—sub-municipal geographic areas—that host business locations in 134 municipalities in Cook County, Illinois...
Source: Regional Science and Urban Economics - November 29, 2019 Category: Science Source Type: research

Prescription drug monitoring programs and neonatal outcomes
Publication date: Available online 25 November 2019Source: Regional Science and Urban EconomicsAuthor(s): Rania Gihleb, Osea Giuntella, Ning ZhangAbstractOver the last two decades, the number of delivering mothers using or dependent on opiates has increased dramatically, giving rise to a five-fold increase in the proportion of babies born with neonatal abstinence syndrome (NAS). First, the current study documents NAS trends in the United States and their substantial variation across states. Second, it explores the relationship, if any, between the adoption of prescription drug monitoring programs (PDMPs) and reductions in ...
Source: Regional Science and Urban Economics - November 26, 2019 Category: Science Source Type: research

Localized knowledge spillovers: Evidence from the spatial clustering of R&D labs and patent citations
Publication date: Available online 25 November 2019Source: Regional Science and Urban EconomicsAuthor(s): Kristy Buzard, Gerald A. Carlino, Robert M. Hunt, Jake K. Carr, Tony E. SmithAbstractBuzard et al. (2017) show that American R&D labs are highly spatially concentrated even within a given metropolitan area. We argue that the geography of their clusters is better suited for studying knowledge spillovers than are states, metropolitan areas, or other political or administrative boundaries that have predominantly been used in previous studies. In this paper, we assign patents and citations to these newly defined clusters o...
Source: Regional Science and Urban Economics - November 25, 2019 Category: Science Source Type: research

Editorial Board
Publication date: November 2019Source: Regional Science and Urban Economics, Volume 79Author(s): (Source: Regional Science and Urban Economics)
Source: Regional Science and Urban Economics - November 22, 2019 Category: Science Source Type: research

Prolonging coal’s sunset: Local demand for local supply
Publication date: March 2020Source: Regional Science and Urban Economics, Volume 81Author(s): Jonathan Eyer, Matthew E. KahnAbstractThe share of U.S electricity generated by coal has fallen from nearly 50% to 33%. This transition offers social environmental benefits but spatially concentrated costs as coal miners and their local communities have suffered. Coal states have responded to shifting demand conditions by introducing incentives for local power plants to purchase coal from local mines. We document that power plants in areas with mining activity are more likely to be coal-fired and to purchase more coal from mines w...
Source: Regional Science and Urban Economics - November 20, 2019 Category: Science Source Type: research

Household residential location choice in retirement: The role of climate amenities
Publication date: Available online 18 November 2019Source: Regional Science and Urban EconomicsAuthor(s): Jiajun LuAbstractThe paper examines the relationship between climate amenities and locational choices in retirement. Using data from 2017 release of the American Community Survey, I construct a household residential location choice model and value climate amenities from the trade-offs among housing cost, climate amenities, and other locational attributes in a metropolitan statistical area (MSA). On average, a retired household is willing to pay $1209 for a 1○C drop in average summer temperature, $1114 for a 1○C inc...
Source: Regional Science and Urban Economics - November 19, 2019 Category: Science Source Type: research

Specification tests for temporal heterogeneity in spatial panel data models with fixed effects
Publication date: Available online 9 November 2019Source: Regional Science and Urban EconomicsAuthor(s): Yuhong Xu, Zhenlin YangAbstractWe propose adjusted quasi score (AQS) tests for testing the existence of temporal heterogeneity in slope and spatial parameters in spatial panel data (SPD) models, allowing for the presence of individual-specific and/or time-specific fixed effects (or in general intercept heterogeneity). The SPD model with spatial lag is treated in detail by first considering the model with individual fixed effects only, and then extending it to the model with both individual and time fixed effects. Two ty...
Source: Regional Science and Urban Economics - November 10, 2019 Category: Science Source Type: research

Prolonging coal's sunset: Local demand for local supply
Publication date: Available online 6 November 2019Source: Regional Science and Urban EconomicsAuthor(s): Jonathan Eyer, Matthew E. KahnAbstractThe share of U.S electricity generated by coal has fallen from nearly 50% to 33%. This transition offers social environmental benefits but spatially concentrated costs as coal miners and their local communities have suffered. Coal states have responded to shifting demand conditions by introducing incentives for local power plants to purchase coal from local mines. We document that power plants in areas with mining activity are more likely to be coal-fired and to purchase more coal f...
Source: Regional Science and Urban Economics - November 6, 2019 Category: Science Source Type: research

Backyarding: Theory and evidence for South Africa
Publication date: Available online 24 October 2019Source: Regional Science and Urban EconomicsAuthor(s): Jan K. Brueckner, Claus Rabe, Harris SelodAbstractThis paper explores the incentives for backyarding, an expanding category of urban land-use in developing countries that has proliferated South Africa. The theoretical model exposes the trade-off faced by the homeowner in deciding how much backyard land to rent out: loss of yard space consumption in return for a gain in rental income. Under common forms for preferences, the homeowner's own-consumption of yard space falls as land rent increases, causing more land to be re...
Source: Regional Science and Urban Economics - October 26, 2019 Category: Science Source Type: research

The political economy of interregional competition for firms
Publication date: Available online 17 October 2019Source: Regional Science and Urban EconomicsAuthor(s): Daniel Hopp, Michael KriebelAbstractThis paper studies interregional competition for a multinational firm when the bidding is decided by the median voter. We model the competition as an auction under full information between two asymmetric regions inhabited by low- and high-skilled individuals. We derive two results: First, the location decision is inefficient in most cases. Second, winning the auction is harmful for the region, if the political process and strong competition lead to subsidies which exceed the surplus c...
Source: Regional Science and Urban Economics - October 19, 2019 Category: Science Source Type: research

Editorial Board
Publication date: September 2019Source: Regional Science and Urban Economics, Volume 78Author(s): (Source: Regional Science and Urban Economics)
Source: Regional Science and Urban Economics - October 15, 2019 Category: Science Source Type: research

Publisher's note
Publication date: September 2019Source: Regional Science and Urban Economics, Volume 78Author(s): (Source: Regional Science and Urban Economics)
Source: Regional Science and Urban Economics - October 15, 2019 Category: Science Source Type: research

The regional effects of a place-based policy – Causal evidence from Germany
Publication date: Available online 7 October 2019Source: Regional Science and Urban EconomicsAuthor(s): Matthias Brachert, Eva Dettmann, Mirko TitzeAbstractThe German government provides discretionary investment grants to structurally weak regions in order to reduce regional inequality. We use a regression discontinuity design that exploits an exogenous discrete jump in the probability of regional actors to receive investment grants to identify the causal effects of the policy. We find positive effects of the programme on district-level gross value-added and productivity growth, but no effects on employment and gross wage ...
Source: Regional Science and Urban Economics - October 10, 2019 Category: Science Source Type: research

Evaluating a place-based innovation policy: Evidence from the innovative Regional Growth Cores Program in east Germany
Publication date: Available online 5 October 2019Source: Regional Science and Urban EconomicsAuthor(s): Oliver Falck, Johannes Koenen, Tobias LohseAbstractWe evaluate one of the largest place-based innovation policies in Germany – the Innovative Regional Growth Cores (IRGC) program. It subsidizes collaborative development and commercialization projects of firms and public research institutes co-located in regions in eastern Germany, with the explicit goal of generating local spillovers to promote regional economic development. We evaluate three potential types of effects with regard to a broad set of outcomes at the firm...
Source: Regional Science and Urban Economics - October 7, 2019 Category: Science Source Type: research

Does gentrification displace poor children and their families? new evidence from medicaid data in New York City
Publication date: Available online 28 September 2019Source: Regional Science and Urban EconomicsAuthor(s): Kacie Dragan, Ingrid Gould Ellen, Sherry GliedAbstractThe pace of gentrification has accelerated in cities across the country since 2000, and many observers fear that it is displacing low-income populations from their homes and communities. We offer new evidence about the consequences of gentrification on mobility, building and neighborhood conditions, using longitudinal New York City Medicaid records from January 2009 to December 2015 to track the movement of a cohort of low-income children over seven years, during a...
Source: Regional Science and Urban Economics - September 30, 2019 Category: Science Source Type: research