Empirical Essays in Economic Geography

Abstract

This thesis consists of three papers that belong to the field of Economic Geography. All three papers exploit spatial and temporal variation in variables in order to shed light on economic questions. The first paper provides an empirical analysis of the effect of fluctuations in the nominal exchange rate on cross-border shopping on the island of Ireland. The daily dataset used in the analysis consists of car flows on roads and the exchange rate during 2013-17. The results are that when the Euro appreciates by 1%, car flow into Northern Ireland on the average border crossing rises by 2% between 9am and 3pm. This paper provides the first known causal analysis of exchange rate movements and incentives to shop across the border outside of the North American context. The second paper provides an empirical analysis of the effect of motorway connections on burglary rates. The dataset used in the analysis is an annual panel of 562 Police Sub Districts in the Republic of Ireland during 2004-15. The results are, that on average, connection to the motorway network causes a 10% rise in the burglary rate during the year of connection. This paper shows for the first time that major road construction affects the spatial distribution of crime. The third paper provides an empirical analysis of the causal effect of employment on housing prices. It does this by using a dataset of housing prices and employment in foreign owned firms in the Republic of Ireland during 2007-13. The results show that 1-2 years after 1,000 jobs have been created, monthly rents in nearby properties are 0.5%-1% higher, and the effect on prices is at least 2%. This study presents the first known causal estimates of employment changes on housing prices.