|| Regional dependencies and local spillovers: Insights from commuter flows
Professor, Faculty of Economics and Management Sciences , Leipzig University, Germany
Senior Lecturer (advanced assistant professor) in Econometrics, University of Exeter Business School, Exeter, United Kingdom
Visiting Associate Professor, Graduate School of Economics and Management, Tohoku University
|P D F
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.
||Commuting, Shock Propagation, Spatial Multiplier, Spatial Weight Matrix
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