Title and Abstract
Regional dependencies and local spillovers: Insights from commuter flows
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
Krause, M., and S. Kripfganz (2023). Regional dependencies and local spillovers: Insights from commuter flows
Research Center for Policy Design Discussion Paper TUPD-2023-009, Tohoku University.
