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Regional dependencies and local spillovers:Insights from commuter flows

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  • Melanie Krause
  • Sebastian Kripfganz

Abstract

A region’s growth trajectory is influenced by the economic circumstances of other regions in its proximity. While proximity is often understood in a geographic sense, we consider commuting as a channel for cross-regional economic dependencies. In contrast to geographic measures, commuter flows are inherently asymmetric and heterogeneous. Estimating a time-space dynamic panel model with German county-level data, we demonstrate a considerable variation in the distribution of shock responses, which is hidden by the traditional focus on average marginal effects. We advocate for a more in-depth analysis of the spatial-effects distribution and highlight that local spatial multipliers differ depending on the nature of the shock and the assumed network structure.

Suggested Citation

  • Melanie Krause & Sebastian Kripfganz, 2023. "Regional dependencies and local spillovers:Insights from commuter flows," TUPD Discussion Papers 40, Graduate School of Economics and Management, Tohoku University.
    • Handle: RePEc:toh:tupdaa:40
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    File URL: http://hdl.handle.net/10097/00137226
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    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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