2023/07/31 by Gabriel Loumeau · 1 voice
Economics, Econometrics and Finance · Social Sciences · #Regional Economics and Spatial Analysis #Spatial and Panel Data Analysis #Local Government Finance and Decentralization
paper · doi:10.1162/rest_a_01350
openalex publication_date 2023/07/31 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/01
Abstract This paper exploits spatial quasiexperimental variation around French departmental borders to provide novel evidence that regional borders disturb surrounding economic activity; namely, commuting flows, catchment areas, and residential density. The lack of integration of local transport networks at regional borders—leading to a 4.5 km travel distance penalty when crossing borders—explains the observed border effects. Using a spatial quantifiable equilibrium framework and accounting for construction costs, a policy simulation exercise shows that integrating local transport networks leads to a 6.36% average growth in real per capita residential income.