Abstract
This chapter is concerned with the process by which geographical economics influences policy. It considers a number of barriers that limit this influence focusing specifically on the availability of data, the limitations of spatial analysis, and the role of the evaluation of government policy. It considers why these problems present such significant barriers and proposes some solutions. In terms of the availability of data, the chapter explains why problems concerning the correct unit of analysis and measurement error may be particularly acute for spatial data (especially at smaller spatial scales). Resulting concerns about the representativeness of data and the mismatch between functional and administrative units may further hamper interaction with policy makers. For spatial analysis, the major problem concerns the extent to which empirical work identifies the causal factors driving spatial economic phenomena. It is suggested that greater focus on evaluating the impact of policies may provide one solution to this general identification problem.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Angrist J, Pischke JS (2009) Mostly harmless econometrics. Princeton University Press, Princeton
Baldwin R, Forslid R, Martin P, Ottaviano GM, Robert-Nicoud F (2003) Economic geography and public policy. Princeton, Princeton University Press
Banergee A, Duflo E (2009) The experimental approach to development economics. Annu Rev Econ 1:151–178
Baum-Snow N, Marion J (2009) The effects of low income housing tax credit developments on neighbourhoods. J Public Econ 93:654–666
Busso M, Gregory J, Kline P (2010) Assessing the incidence and efficiency of a prominent place-based policy. NBER Working Paper #16096
Cheshire P, Gordon I, Gibbons S (2008) Policies for mixed communities: a critical evaluation. Spatial Economics Research Centre Policy Paper #002
Cheshire P, Magrini S (2009) Urban growth drivers in a Europe of sticky people and implicit boundaries. J Econ Geogr 9:85–115
Combes PP, Duranton G, Overman HG (2005) Agglomeration and the adjustment of the spatial economy. Pap Reg Sci 84:311–349
Dachis B, Duranton G, Turner M (2011) The effects of land transfer taxes on real estate markets: evidence from a natural experiment in Toronto. J Econ Geogr 12:327–354
Department of Communities and Local Government (2006) State of the English Cities. http://webarchive.nationalarchives.gov.uk/20070108123845/ http://odpm.gov.uk/index.asp?id=1163940
DiNardo J, Lee DS (2010) Program evaluation and research designs. In: Ashenfelter O, Card D (eds) Handbook of labor economics, vol 4. Elsevier, Amsterdam
Duranton G (2011) California dreamin’: the feeble case for cluster policies. Rev Econ Anal 3:3–45
Duranton G, Gobillon L, Overman HG (2011) Assessing the effects of local taxation using microgeographic data. Econ J 121:1017–1046
Duranton G, Overman HG (2005) Testing for localisation using micro geographic data. Rev Econ Stud 72:1077–1106
Gibbons S, Overman HG (2012) Mostly pointless spatial econometrics. J Reg Sci 52:172–191
Krugman P (1991) Increasing returns and economic geography. J Polit Econ 99:483–499
Lee DS, Lemieux T (2010) Regression discontinuity designs in economics. J Econ Lit 48:281–355
Manski CF (1993) Identification of endogenous social effects: the reflection problem. Rev Econ Stud 60:531–542
Markusen A (2003) Fuzzy concepts, scanty evidence, policy distance: the case for rigour and policy relevance in critical regional studies. Reg Stud 37:701–717
Martin R, Sunley PJ (2011) The new economic geography and policy relevance. J Econ Geogr 11:357–370
Neumark D, Kolko J (2010) Do enterprise zones create jobs? Evidence from California’s enterprise zone program. J Urban Econ 68:1–19
Overman H (2010) “GIS a job”: what use geographical information systems in spatial economics. J Reg Sci 50:165–180
Sacerdote B (2001) Peer effects with random assignment: results for Dartmouth roommates. Q J Econ 116:681–704
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2014 Springer-Verlag Berlin Heidelberg
About this entry
Cite this entry
Overman, H.G. (2014). Geographical Economics and Policy. In: Fischer, M., Nijkamp, P. (eds) Handbook of Regional Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-23430-9_93
Download citation
DOI: https://doi.org/10.1007/978-3-642-23430-9_93
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-23429-3
Online ISBN: 978-3-642-23430-9
eBook Packages: Business and Economics