Regional Economics Commons^™

Comparing Implementations Of Estimation Methods For Spatial Econometrics, Roger Bivand, Gianfranco Piras

Regional Research Institute Working Papers

Recent advances in the implementation of spatial econometrics model estimation techniques have made it desirable to compare results, which should correspond between implementations across software applications for the same data. These model estimation techniques are associated with methods for estimating impacts (emanating effects), which are also presented and compared. This review constitutes an up to date comparison of generalized method of moments (GMM) and maximum likelihood (ML) implementations now available. The comparison uses the cross sectional US county data set provided by Drukker, Prucha, and Raciborski (2011c, pp. 6-7). The comparisons will be cast in the context of alternatives using …

Can Spatial Dependence Enhance Industry Sustainability? The Case Of Pasture-Based Beef, Inocencio Rodriguez, Gerard D'Souza, Thomas Griggs

Regional Research Institute Working Papers

Can sustainability be enhanced by maximizing the sum of private and social benefits from an industry? This might take place, for example, by identifying production options that increase profitability side-by-side with societal goals such as renewable energy production and carbon sequestration, healthier communities, environmental quality, and economic development. We explore this issue for pasture based beef (PBB), a nascent industry where industry profitability, community development, and quality of life can be enhanced by explicitly linking the PBB supply chain spatially and intertemporally, thereby increasing the sum of private and social benefits. We develop a framework based on optimal control theory …

Impact Estimates For Static Spatial Panel Data Models In R, Gianfranco Piras

Regional Research Institute Working Papers

In the present note we demonstrate how to implement the Lee and Yu (2010) procedure for fixed effects spatial panel data models available from the R (R Development Core Team 2012) package splm (Millo and Piras 2012). Additionally, we also show how to compute the impact estimates introduced by Kelejian, Tavlas, and Hondroyiannis (2006) and formalized in LeSage and Pace (2009). Unlike Matlab (MATLAB 2011), there was no R function specific to static panel data models for the calculation of the impact measures. After receiving numerous requests from the users of splm, we decided to extend the cross sectional functions …

Estimation Of Spatial Models With Endogenous Weighting Matrices And An Application To A Demand Model For Cigarettes, Harry H. Kelejian, Gianfranco Piras

Regional Research Institute Working Papers

Weighting matrices are typically assumed to be exogenous. However, in many cases this exogeneity assumption may not be reasonable. In these cases, typical model specifications and corresponding estimation procedures will no longer be valid. In this paper we specify a spatial panel data model which contains a spatially lagged dependent variable in terms of an endogenous weighting matrix. We suggest an estimator for the regression parameters, and demonstrate its consistency and asymptotic normality. We also suggest an estimator for the large sample variance-covariance matrix of that distribution. We then apply our results to an interstate panel data cigarette demand model …

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Metro And Non-Metro Business Incubators: Similarities And Critical Differences, Randall Jackson, Peter V. Schaeffer, Mark Middleton

Regional Research Institute Working Papers

Business incubators often figure prominently into regional economic development and innovation strategies. This paper reports on a recent survey aimed at identifying appropriate methods for the evaluation of nonmetropolitan, rural incubator performance. The results draw upon responses from 209 of 719 active U.S. Business incubators identified through our research. Roughly one quarter of the respondents were located outside of areas classified as metropolitan. This paper focuses on critical similarities and differences between metropolitan and non-metropolitan business incubators along the dimensions of economic role, function, and effectiveness. The survey and preliminary synthesis of follow-up interviews suggests that an explicit awareness of …

A Knowledge Base For The World's Energy Rich Regions, Hodjat Ghadimi, Davina Bird

Regional Research Institute Working Papers

Energy rich regions (ERRs) play an important role in the world economy. A knowledge base of energy rich economies on a regional level provides a useful tool for comparative research of sustainable development in ERRs with an interdisciplinary perspective. The purpose of this knowledge base is to present a foundation for understanding the attributes and development processes of various ERRs and the collective role they play in the world’s energy, environment, and development debate. The construction of the ERR knowledge base is described, including the steps and data sources, structure, and process. Using two databases on oil and gas giant …

An Analysis Of Administrative “Best Practices” In The Administration Of Business Incubators, Mark Middleton, Peter V. Schaeffer, Randall Jackson

Regional Research Institute Working Papers

A large body of scholarly work has been published on “best practices” in the administration of business incubators. These strategies for the operation of the facilities outline ideal administrative policies and procedures that are not always practical for the operation of all business incubators. Using data acquired from a nationwide survey of business incubators this paper investigates the use of “best practices” identified by scholars in the management of operating business incubators. This research uses frequency analysis and cross tabulation to analyze the “best practices” variables of the survey. The analysis illustrates compliance and use of these “best practices is …

An Analysis Of The Role Of Self-Employment In The Economic Development Of The Rural Northeastern United States, Saima Bashir, Tesfa Gebremedhin, Jerald J. Fletcher

Regional Research Institute Working Papers

Generating employment and alleviating poverty are the biggest challenges for regional economic growth in rural areas of the Northeastern United States. Despite the revival of the economy in much of the nation‟s heartland, rural areas are still suffering from high poverty and unemployment rates. Self-employment, a measure of entrepreneurship, indicates an opportunity for rural communities to improve quality of life and accelerate regional economic development. Taking into consideration the problem of unemployment in rural communities, there is a need to focus on generating self-employment opportunities at micro level to enhance economic growth and reduce the per capita income „gap‟ between …

Social Benefits Of Niche Agricultural Products: The Case Of Pasture-Based Beef In Appalachia Part 1: The Conceptual Framework, Inocencio Rodriguez, Gerard D'Souza, Alan R. Collins, Tim Phipps

Regional Research Institute Working Papers

Niche agricultural products are growing in economic importance. This growth is driven mainly by the increased demand for more healthy, nutritious, fresh and locally grown food products. There is obviously a potential increase in private benefits to producers/landowners as a result of increased production of the underlying crops to satisfy this demand. What is less obvious is the potential to also generate increased social benefits, particularly as they relate to energy conservation, alternative energy or biogas development and carbon sequestration. In other words, calories and kilo-calories are becoming more linked. The objective of this analysis is to develop a conceptual …

Telecommunications Investment And Economic Development: Evidence From A Panel Of Sub-Saharan Africa (Ssa), Chali Nondo, Mulugeta Kahsai

Regional Research Institute Working Papers

The objective of this paper is to study the role of government effectiveness, institutional and political factors in aggregate output and telecommunications penetration in SSA countries. The contribution of these factors in aggregate output and telecommunications evolution is examined using a framework that accounts for the endogeneity and interactions between aggregate output and telephone penetration rates. Results from the study indicate that government effectiveness is an important determinant for aggregate output. Another supplemental finding is that the incessant political upheavals in SSA countries have a detrimental effect on aggregate output. From this, we endorse that SSA countries should design and …

Knowns, Unknowns, And Impacts, Randall Jackson

Regional Research Institute Working Papers

Jouke van Dijk opened the most recent issue of Papers in Regional Science with “Long lasting knowledge in Regional Science,” an editorial highlighting the role that the Association”s journal has played in documenting much of the key regional science research since its inception. Publications obviously provide a long lasting chronicle of research in regional science, but I had rather hoped to find in his editorial an actual identification and enumeration of examples of specific long lasting knowledge gleaned from the regional science record. My hopes stemmed from having spent the past year contemplating appropriate content for this Presidential Address on …

Regional Science Reconsidered, Peter V. Schaeffer, Randall Jackson, James O. Bukenya

Regional Research Institute Working Papers

Members of a discipline share common research questions, values they use to address normative issues, and a set of research methods. Collectively, the features of a discipline that are common to all of its members constitute its core. Disciplines – and their specializations – can also be defined by their boundaries. However, in the case of regional science, the boundaries are fuzzy. Because regional science has been influenced by economics, geography, urban and regional planning, sociology, political science, public administration, and transportation engineering, it overlaps to a significant degree with these “parent disciplines” so that clear cut boundaries do not …

Minimum Wages And Teen Employment: A Spatial Panel Approach, Charlene M. Kalenkoski, Donald J. Lacombe

Regional Research Institute Working Papers

The authors employ spatial econometric techniques and Annual Averages data from the U.S. Bureau of Labor Statistics for 1990-2004 to examine how changes in the minimum wage affect teen employment. Spatial econometric techniques account for the fact that employment is correlated across states. Such correlation may exist if a change in the minimum wage in a state affects employment not only in its own state but also in other, neighboring states. The authors show that state minimum wages negatively affect teen employment to a larger degree than is found in studies that do not account for this correlation. Their results …

The Role Of Institutional Quality In Fdi Inflows In Sub-Saharan Africa, Mulugeta Kahsai, Yohannes G. Hailu, Chali Nondo, Peter V. Schaeffer

Regional Research Institute Working Papers

During the period 2000 to 2008, Africa’s collective GDP grew at an annual rate of 4.9 percent. Even though previous studies argue that strengthened and improved institutional quality is key determinant for attracting foreign direct investment to Africa, we find no evidence to that effect. Using a panel data for 45 Sub-Saharan African countries (SSH), we estimate the role of institutional quality (governance) in attracting FDI inflow during the 1996-2007 period. After controlling for country and time specific effects and the economic environment of the host country, we find no significant evidence of the impact of institutional quality on FDI …

An Analysis Of The Relationship Between New Firm Formation And Economic Development In The Northeast Region Of The United States, Saima Bashir, Tesfa Gebremedhin

Regional Research Institute Working Papers

The overall objective of this study is to provide policy makers with information on the role of new firm formation in the economic development in the Northeast region of the United States. This study identifies and estimates the impacts of new firm formation in the economic development of the Northeast region. The empirical model of this study is derived from the three-equation simultaneous model of Deller et al. (2001). In this study, Three-Stage Least Squares (3SLS) method is used to estimate the simultaneous equations model. The research findings indicate that population density and per capita income have a positive link …

Fayette County, Wv Case Study: A Look At The Movement Towards Energy And Water Efficiency, Davina Bird, Hodjat Ghadimi, Randall Jackson

Regional Research Institute Working Papers

The focal area for this study is Fayette County, West Virginia. Using a qualitative semi-structured interview process, information was gathered so as to present a clear overview of what both the private and public sector are doing with regard to energy and/or water efficiency within the county. Given the pervasive nature of the issue of efficiency, interviewees were encouraged to describe their agency or organizational efforts as it relates to what they thought “energy and/or water efficiency” entailed. On the basis of the twenty-one interviews conducted, the progress being undertaken by different entities was noted and divided under five themes …

Incubation Push Or Business Pull? Investigating The Geography Of Us Business Incubators, Haifeng Qian, Kingsley E. Haynes

Regional Research Institute Working Papers

The primary purposes of this paper are to present the geographic distribution of US business incubators and to explore geographically bounded factors that influence the location of business incubators. Our data show that US business incubators are unevenly distributed across the urban/rural division, states, as well as counties. Factor analysis identifies three common factors from 27 demographic, social, and economic variables drawn from publicly available data at the county level. These factors include agglomeration, welfare, and business/entrepreneurship. The results of binominal logistic regressions suggest that incubators are more likely to be found in counties with high levels of agglomeration but …

Sustainable Economic Development In Energy Rich Economies: A Regional Approach, Hodjat Ghadimi

Regional Research Institute Working Papers

There is an extensive literature on or relating to development issues of energy rich economies – particularly those in the developing world. While national-level studies abound, the analyses of these economies at a regional level or with a regional and spatial perspective are scarce. Generally, a bottom up regional approach to development and the value of insights that regional models and comparative regional studies provide have not received sufficient attention in the field of development economics. Analyzing development sustainability in energy rich economies at a regional scale may provide insights not otherwise possible. National scale studies and models are mostly …

Geography Of Business Incubator Formation In The United States, Junbo Yu, Mark Middleton, Randall Jackson

Regional Research Institute Working Papers

The geography of business incubators has seldom been examined against the public aspirations and beliefs that incubators should either inhabit economically distressed areas to alleviate unemployment and poverty (in the case of empowerment business incubators) or proliferate in technologically capable regions to adequately unleash and exploit local high-technology potentials (in the case of technology business incubators). In this paper, the geographic distribution of 719 U.S. business incubators, which are located in 465 out of the 3,141 counties, is examined drawing upon a newly built incubator population database. In addition, the location factors underlying the formation of business incubators are also …

Toward The Geography Of Business Incubator Formation In The United States, Junbo Yu, Mark Middleton, Randall Jackson

Regional Research Institute Working Papers

The geography of business incubators has seldom been examined against the public aspirations and beliefs that incubators should either inhabit economically distressed areas to alleviate unemployment and poverty (in the case of empowerment business incubators) or proliferate in technologically capable regions to adequately unleash and exploit local high-technology potentials (in the case of technology business incubators). In this paper, the geographic distribution of 719 U.S. business incubators, which are located in 465 out of the 3,141 counties, is examined drawing upon a newly built incubator population database. In addition, the location factors underlying the formation of business incubators are also …

A Spatial Analysis Of Supplemental Nutrition Assistance Program And Economic Conditions In The Appalachian Region, Nyakundi M. Michieka, Archana Pradhan, Tesfa Gebremedhin

Regional Research Institute Working Papers

Supplemental Nutrition Assistance Program (SNAP) helps low income people and families buy food they need for good health. The main objective of this study is to examine the effects of changes in the economic conditions and welfare on SNAP participation in the Appalachian region. The study employs county level data to capture variation in SNAP participation. Spatial econometric models are developed to examine the relationship among the economic and business cycle conditions, changes in welfare reforms, demographic and household attributes, institutional factors, and SNAP participation. The findings from this study could be helpful in improving welfare programs in this region.

A Dynamic Shift Share Analysis Of Economic Growth In West Virginia, Janaranjana Herath, Tesfa Gebremedhin, Blessing M. Maumbe

Regional Research Institute Working Papers

A regional economy consists of industries with a variety of economic potentials. A growth or decline in any of these sectors affects the overall growth of the economy. Analysis of economic growth by sector of a particular region helps policy makers, community leaders and researchers in better decision making and problem solving. This study attempts to analyze the employment growth pattern and policy implications in the economic development of West Virginia using a dynamic shift share analysis. The study uses employment data for 38 years from 1970 to 2007 for the empirical analysis. Results indicate that agriculture, mining and manufacturing …

What Causes Waste Flows? An Interregional Analysis Of Welsh Waste Shipments, Christa D. Jensen, Stuart Mcintyre

Regional Research Institute Working Papers

Much of the waste flow literature focuses on international waste trade and oftentimes solely on trade in hazardous wastes. However, data is often available for waste flows within national borders and these flows could yield just as much information on the relationships that exist between origins and destinations. In a world where waste creation, transport, and disposal is becoming a global problem, understanding and modeling these flows is becoming increasingly important. This paper uses a gravity model approach and data on commercial waste shipments between local authorities within Wales to examine the characteristics that are responsible for origin-destination waste flow …

An Empirical Analysis Of The Interactions Between Environmental Regulations And Economic Growth, Chali Nondo, Peter V. Schaeffer, Tesfa Gebremedhin, Jerald J. Fletcher

Regional Research Institute Working Papers

The purpose of this research is to examine the relationship between environmental regulation and economic growth. A four-equation regional growth model is used to analyze the simultaneous relationships among changes in population, employment, per capita income, and environmental regulations for the 410 counties in Appalachia. Our results reveal that initial conditions for environmental regulation are negatively related to regional growth factors of change in population, per capita income, and total employment. From this, we infer that the diversion of resources from production and investment activities to pollution abatement is inadvertently transmitted to other sectors of the economy—thereby resulting in a …

A Spatial Analysis Of Poverty And Income Inequality In The Appalachian Region, Sudiksha Joshi, Tesfa Gebremedhin

Regional Research Institute Working Papers

The Appalachian Region has made progress in the various measures of development but still lags behind other national counterparts. Understanding the relationship between poverty and income inequality is important to evaluate how a development strategy would benefit the region. This paper presents a spatial simultaneous equations approach to determine the relationship between poverty and income inequality. Cross sectional county level data from 1990 and 2000 for the 420 counties in the Appalachian Region are used to examine the determinants of poverty and income inequality. The empirical results suggest that poverty and income inequality are inversely related. If the policy objective …

Who Generates Hazardous Wastes? Attribution Of Producer And Consumer Responsibility Within The Us, Christa D. Jensen

Regional Research Institute Working Papers

Amid changing attitudes about the environment and increasing sustainability concerns, many countries around the world aim to curb waste generation, especially the generation of hazardous wastes. Beginning in the late 1970’s and occurring increasingly since, governments and international bodies are passing legislation and treaties dealing with the reduction of hazardous waste generation and waste minimization in general. For future waste minimization policies to have an impact on hazardous waste generation, methods for determining where the ultimate responsibility for hazardous waste generation lies need to be explored. This paper examines hazardous waste generation in the United States at the industry level …

National And State Economic Impact Of Netl, Randall Jackson, Amanda Krugh, Brian Lashier, Ronald Munson

Regional Research Institute Working Papers

This report documents the development of state-level input-output models for Pennsylvania, West Virginia, and Oregon and the augmentation of the national input-output model that was developed previously for the project Valuing Domestically Produced Natural Gas and Oil . The state IO models were developed to assess the FY08 economic impacts of expenditures, employment, and research and development awards at the NETL sites located in Pittsburgh, PA; Morgantown, WV; and Albany, OR. The national IO model was developed to assess the FY08 economic impacts of NETL site expenditures, awards, and employment at the national level.

Energy Consumption And Economic Growth: Evidence From Comesa Countries, Chali Nondo

Regional Research Institute Working Papers

This study applies panel data techniques to investigate the long-run relationship between energy consumption and GDP for a panel of 19 African countries (COMESA) based on annual data for the period 1980-2005. In the first step, we examine the degree of integration between GDP and energy consumption and find that the variables are integrated of order one. In the second step, we investigate the long-run relationship between energy consumption and GDP; our results provide strong evidence that GDP and energy consumption move together in the long-run. In the third step, we estimate the long-run relationship and test for causality using …

Obesity Prevention: A Review Of The Interactions And Interventions, And Some Policy Implications, Anura Amarasinghe, Gerard D'Souza

Regional Research Institute Working Papers

Obesity is reaching epidemic proportions especially in the developed and, more recently, in the developing world where the problem is compounded by myriad socio-economic, demographic, built and natural environmental factors. This review examines the possible causes, consequences and policy implications using a multilevel, multispectral framework. The causes of obesity clearly are multifaceted and involve numerous interactions. Together with economic incentives, allocation of physical and financial resources to community intervention strategies through educational programs as well as better land use planning would be helpful in promoting healthier and sustainable communities. Towards this goal, we proposed a dynamic and integrated Individual, Social, …

Time Dynamics And The Introduction Of New Technologies Within Io Analysis, Christa D. Jensen, Randall Jackson

Regional Research Institute Working Papers

Although Input-Output (IO) models are widely accepted tools for regional scientists and economists alike, there are still many issues to confront during their application, including estimating impacts relative to future years, dynamic impacts, and the introduction of new technologies within economic systems. Oftentimes, especially within energy and environmental subject areas, applications call for not only the introduction of new technologies but also for forecasts of economic impacts that may take years, or even decades, to fully implement. Despite the static nature of the IO modeling framework, these types of situations can be handled successfully and in ways fully consistent with …

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