Michal Dziecielski (p), Maciej Kaminski, Karima Kourtit, Peter Nijkamp, Waldemar Ratajczak

The global space-economy is increasingly dominated by large urban agglomerations. In this paper we conduct a cluster analysis of 40 large world cities, based on detailed information on a large set of relevant indicators from the GPCI (Global Power City Index) data set, collected and annually updated by the Institute of Urban Research of the Japanese Mori Memorial Foundation in Tokyo. Classifying the cities and finding urban clusters is possible with such data. Nevertheless, there are some caveats in this analysis. For each of the 40 cities in here we obtain a value for 6 functions (Economy, R&D, Cultural Interactions, Livability, Environment, Accessibility). In this way we are able to build a 6-dimensional space where every city resides. In this space, we may investigate issues like Euclidean distance between cities. We may explore whether there is a way to flatten this space or arrange points so that distances on the plane (a 2D space for drawing) is as close as possible to original distances. That enables us to present and analyse this data structure (a city’s mutual position). This may be done using different techniques. One is to find a proper 2D plane and to cut through 6D space, by casting cities to this 2D space, and minimizing the square error of distances to a 2D plane. This leads us to make a plot where we can see that such casts reveal some interesting properties of the data (two sets of city function scores are strongly correlated inside the set, and not correlated between the sets).
On that basis we are able to perform a clustering analysis and to show what type of cities are on average close (or should be close). This leads to possible novel fields of usage, for example, by examining clusters by using the Ward method.

Kazuhiko Kakamu, Petra Staufer-Steinnocher (p), Takashi Yamasaki, Noriyoshi Yanase

This paper examines the effects of the great earthquake on the premiums for earthquake insurance from a Bayesian point of view. Using the latent variable technique, we construct a linear regression model, which incorporates the changes in the demand function as parameters to identify the regions (prefectures) where the changes occurred. With three periods panel datasets in Japan, we examined the changes in the Great Hanshin Earthquake in 1995. Moreover, we implement the consumer surplus analysis using the estimation results. Empirical results show that the changes are not related to the epicenter, although the premiums are decided by depending on the risks. Our results indicate that the changes are related to the types of regions and happen in urban area. From the consumer surplus analysis, we also found that the changes in the premiums do not lead to the changes in consumer surplus. This result indicates that the changes in the premium is appropriately implemented after the Great Hanshin Earthquake.

Keywords: earthquake insurance premiums, consumer surplus analysis, Bayesian estimation, panel data

JEL codes: C11, C33, R10

Mariusz E. Sokołowicz (p), Zbigniew Przygodzki

Modernist architecture of the 20th century, especially those objects which are assigned monuments, have more and more proponents and epigones. However, other parts of the society treat them still as not a valuable part of cultural and social heritage, especially when many of them are destroyed or underinvested. In consequence, technical, social and economic degradation of such objects runs at its accelerated pace. On the other hand, architecture of this kind is an important element of urban identity and image in many parts of the world. It is a living screenshot of few generations of urban dwellers, architects and developers.
Thus, we find it worthy to identify the actual value of modernist 20th century architecture, especially in Poland and other Central and Eastern European countries, where such object are additionally identified with the communist past. We believe this value is changing from the perspective of next generations and national heritage. Identifying this value, especially in its economic and monetary dimension, is still a challenge. It needs an analytical and scientific discussion. Hence, while realizing the H2020 project “InnovaConcrete”, we proposed a holistic approach taking into account various methods of measuring both stated and revealed preferences, aiming at calculation of use and autotelic value of the heritage of modernism. Our research is oriented towards four following dimensions: value by the form perception, value by the function perception, value by the emotional perception, and visions concerning the future use and re-use of modern 20th century architecture.

Piotr Wójcik (p)

The main purpose of the article is to present the concept of parallel convergence and the methods of its empirical verification. In the empirical example the analysis will be carried out to check whether the processes of convergence of GDP per capita and life expectancy at birth at the country and regional level in European Union are interrelated. Life expectancy at birth might be considered as a very general measure of the quality of life (potential alternative to GDP per capita which concentrates purely on economic aspects). On the other side, health is an important component of human capital – the most prominent factor of growth. Therefore, we want to verify whether convergence processes for life expectancy at birth mimic the patterns of income convergence.

Parallel convergence in the simplest terms can be defined as analogous convergence patterns observed for two different phenomena measured for a group of countries or regions. This means an identical (indistinguishable in the statistical sense) dynamics of the distribution of both studied phenomena in the analyzed period. We offer various methods of formal testing of parallel convergence, which relate to several concepts of convergence (sigma, beta, club convergence). Our methodology includes transition matrices and conditional kernel density estimates.

Due to the availability of data on the life expectancy at birth, the study will be conducted at the level of countries and NUTS 2 regions for the period 2004-2015.