|
on Economic Geography |
| By: | Jesse M. Shapiro |
| Abstract: | From 1940 to 1990, a 10 percent increase in a metropolitan area's concentration of college-educated residents was associated with a .8 percent increase in subsequent employment growth. Instrumental variables estimates support a causal relationship between college graduates and employment growth, but show no evidence of an effect of high school graduates. Using data on growth in wages, rents and house values, I calibrate a neoclassical city growth model and find that roughly 60 percent of the employment growth effect of college graduates is due to enhanced productivity growth, the rest being caused by growth in the quality of life. This finding contrasts with the common argument that human capital generates employment growth in urban areas solely through changes in productivity. |
| JEL: | R11 N92 J24 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11615&r=geo |
| By: | Mion, Giordano; Naticchioni, Paolo |
| Abstract: | Using a matched employer-employee dataset on Italy we look at the spatial distribution of wages among provinces. We find evidence of both urbanization and market potential externalities, with the second one being more relevant. However, spatial sorting of skills is at work and explains a great deal of spatial wage variability. We further show that this sorting is only partially due to migrations and it dampens estimates of spatial externalities. The evidence concerning the sorting of firms is instead quite weak. In the paper, we also find support of self-selection of migrants based on skills and a moderate evidence of the wage growth hypothesis. Finally, we show that the well-established correlation between the employer size and workers' skills is not simply the outcome of a co-location phenomenon. |
| Keywords: | firms' heterogeneity; panel data; skills; sorting; spatial externalities |
| JEL: | J31 J61 R23 R30 |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5172&r=geo |
| By: | André Rocha; José Pedro Pontes |
| Abstract: | This paper examines the equilibrium of location of N vertically-linked firms. In a spatial economy composed of two regions, a monopolist firm supplies an input to N consumer goods firms that compete in quantities. It was concluded that, when there are increases in the transport cost of the input, downstream firms prefer to agglomerate in the region where the upstream firm is located, in order to obtain savings in the production cost. On the other hand, increases in the general transport cost or in the number of downstream firms lead to a dispersion of these firms, in order to reduce competition and locate closer to the final consumer. |
| Keywords: | Agglomeration; Intermediate Goods; Spatial Oligopoly. |
| JEL: | R30 L13 C72 |
| URL: | http://d.repec.org/n?u=RePEc:ise:isegwp:wp112005&r=geo |
| By: | Rose, Andrew K |
| Abstract: | If one ranks cities by population, the rank of a city is inversely related to its size, a well-documented phenomenon known as Zipf's Law. Further, the growth rate of a city's population is uncorrelated with its size, another well-known characteristic known as Gibrat's Law. In this paper, I show that both characteristics are true of countries as well as cities; the size distributions of cities and countries are similar. But theories that explain the size-distribution of cities do not obviously apply in explaining the size-distribution of countries. The similarity of city- and country-size distributions is an interesting riddle. |
| Keywords: | distribution; empirical; Gibrat; growth; logarithm; mean; rank; size; Zipf |
| JEL: | F00 R12 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5235&r=geo |
| By: | Sofia Dermisi (Roosevelt University) |
| Abstract: | This paper examines the underlying socio-economic conditions that are likely to explain redevelopment activity in the “inner-ring” municipalities of a metropolitan area. The area of study consists of 54 municipalities within Los Angeles county limits and 33 municipalities in the Boston metropolitan area. The time length covered is from 1970 through 2000, focusing on the rate of change in socioeconomic and development conditions from 1970 to 2000 and 1980 to 2000. Among the selected municipalities for the two metropolitan areas, we focused on two groupings based on income - those with median household income within the 20th – 50th percentile and those within the 51st – 100 percentile. The results indicate that local socioeconomic conditions appear to have greater impact on property values in the Los Angeles area than in Boston. Although, new residential activity seems to be influenced by socioeconomic trends in Los Angeles, the empirical analysis in both cities indicates that other factors, such as public incentives, may impact new development activity more significantly. |
| JEL: | R |
| Date: | 2005–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpur:0509008&r=geo |
| By: | Sofia Dermisi (Roosevelt University) |
| Abstract: | This paper is an initial study of the location patterns among Information, Finance Insurance & Real Estate companies locating in Central Business Districts (CBD) versus suburbs, using SIC/NAICS codes at the zip code level. These patterns are initially studied through statistical analysis and then their effect on the probability of a company locating at a CBD versus the suburbs is determined through econometric modeling of real estate office market and economic parameters. In addition, the effect of all these factors on both areas’ vacancy rate is also studied. The studied cities include Atlanta, Boston, Chicago, Washington and Los Angeles with the study period being from 1998 through 2001, with quarterly data. |
| JEL: | R |
| Date: | 2005–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpur:0509007&r=geo |
| By: | Christopher R. Berry; Edward L. Glaeser |
| Abstract: | Over the past 30 years, the share of adult populations with college degrees increased more in cities with higher initial schooling levels than in initially less educated places. This tendency appears to be driven by shifts in labor demand as there is an increasing wage premium for skilled people working in skilled cities. In this paper, we present a model where the clustering of skilled people in metropolitan areas is driven by the tendency of skilled entrepreneurs to innovate in ways that employ other skilled people and by the elasticity of housing supply. |
| JEL: | J0 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11617&r=geo |
| By: | Hans-Friedrich Eckey; Reinhold Kosfeld (Department of Economics, University of Kassel); Matthias Türck (Department of Economics, University of Kassel) |
| Abstract: | The convergence of German regions represents a politically explosive question. Different studies examined convergence processes of Germany. We derive equations to estimate the convergence speed on basis of a Solow model, to which human capital is added. The geographically weighted regression permits a detailed analysis of convergence processes, which has not been conducted for Germany so far yet. We estimate a separate speed of convergence for every region, which results from the local coefficients of the regression equations. The application of this procedure to German labour market regions shows that regions move with a different speed towards their steady state level. The half lives are substantially longer in the manufacturing sector than in the service sector. One model even yields tendencies towards divergence of some peripheral regions. |
| Keywords: | Regional Convergence, Spatial Econometrics, Geographically Weighted Regression, Räumliche Konvergenz, räumliche Ökonometrie, räumlich-gewichtete Regression |
| JEL: | C21 R11 R58 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:kas:wpaper:2005-76&r=geo |
| By: | Frédéric Puech (CERDI) |
| Abstract: | The aim of this paper is to investigate the existence of a spatial dependence of crime rates at a local level in the case of municipalities of Minas Gerais, one of the 26 Brazilian states. Results suggest the existence of a positive spatial autocorrelation of municipal violent crime rates. However, it also appears that violent crime against property and against persons do not follow the same spatial behavior. While violent economic crime seems to spread a lot, interpersonal violence is a much more localized phenomenon. |
| Keywords: | violent crime, spatial autocorrelation, Brazil |
| JEL: | C31 K42 I20 R12 |
| Date: | 2005–09–17 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpur:0509018&r=geo |
| By: | Roberta Colavecchio; Declan Curran; Michael Funke |
| Abstract: | The objective of this paper is to address the question of convergence across German districts in the first decade after German unification by drawing out and emphasising some stylised facts of regional per capita income dynamics. We achieve this by employing non-parametric techniques which focus on the evolution of the entire cross-sectional income distribution. In particular, we follow a distributional approach to convergence based on kernel density estimation and implement a number of tests to establish the statistical significance of our findings. This paper finds that the relative income distribution appears to be stratifying into a trimodal/bimodal distribution. |
| Keywords: | regional economic growth, Germany, convergence clubs, density estimation, modality tests |
| JEL: | C14 R11 R12 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1533&r=geo |
| By: | Viv B Hall (Victoria University of Wellington); C. John McDermott (National Bank of New Zealand) |
| Abstract: | We use National Bank of New Zealand Regional Economic Activity data, to identify and characterise classical business cycle turning points, for New Zealand’s 14 regions and aggregate New Zealand activity. Using Concordance statistic measures, logistic model and GMM estimation methods, meaningful regional business cycles have been identified and a number of significant associations established. All regions exhibit cyclical asymmetry for both durations and amplitudes, and synchronisations between aggregate NZ activity and each region are contemporaneous. The regional cycles rarely die of old age but are terminated by particular events. The regions most highly synchronised with the NZ activity cycle are Auckland, Canterbury, and Nelson- Marlborough; those least so are Gisborne and Southland. Noticeably strong co-movements are evident for certain regions. Geographical proximity matters, and unusually dry conditions can be associated with cyclical downturns in certain regions. There is no discernable evidence of association with net immigration movements, and no significant evidence of regional cycle movements being associated with real national house price cycles. The agriculture-based nature of the New Zealand economy is highlighted by the strong influence of external economic shocks on rural economic performance. In particular, there is considerable evidence of certain regional cycles being associated with movements in New Zealand’s aggregate terms of trade, real prices of milksolids, real dairy land prices and total rural land prices. |
| Keywords: | Classical business cycle; Turning Points; Regional business cycles; Concordance statistics; New Zealand |
| JEL: | C22 E32 R11 R12 R15 |
| Date: | 2005–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpur:0509013&r=geo |
| By: | Chris Forman; Avi Goldfarb; Shane Greenstein |
| Abstract: | How much do internal firm resources contribute to technology adoption in major urban locations, where the advantages from agglomeration are greatest? The authors address this question in the context of a business's decision to adopt advanced Internet technology. Drawing on a rich data set of adoption decisions by 86,879 U.S. establishments, the authors find that the marginal contribution of internal resources to adoption is greater outside of a major urban area than inside one. Agglomeration is therefore less important for highly capable firms. The authors conclude that firms behave as if resources available in cities are substitutes for both establishment-level and firm-level internal resources. |
| JEL: | R30 O33 L86 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11642&r=geo |
| By: | Isabelle Sin (Motu Economic & Public Policy Research); Emma Brunton (Motu Economic & Public Policy Research); Joanna Hendy (Motu Economic & Public Policy Research); Suzi Kerr (Motu Economic & Public Policy Research) |
| Abstract: | Hendy and Kerr (2005b) find that an emissions charge on agricultural methane and nitrous oxide of $25 per tonne of carbon dioxide (CO2) equivalent would be likely to reduce New Zealand’s net land-use related emissions for commitment period one in the order of 3%, with full accounting. The costs per farmer and as a percentage of profit would be very high. This paper considers the regional impacts of such a policy in New Zealand by allocating the emission charge across space according to the location of animals. We then combine our emissions charge information with data on the socio-economic characteristics of the affected areas. Obviously rural areas are heavily affected. In many respects, for example median income, ethnic mix, and percentage of working people with a university degree, the rural areas most affected have very similar socio-economic characteristics to other parts of rural New Zealand. Only in two ways do they appear to differ. Our findings indicate that areas with high emission costs tend to have high employment rates, but that they also have a disproportionately high number of unqualified people. |
| Keywords: | climate change, land use, social impacts, methane, nitrous oxide, dairy, sheep, beef, distribution of costs, regional |
| JEL: | Q25 Q28 R14 |
| Date: | 2005–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpot:0509010&r=geo |
| By: | George J. Borjas |
| Abstract: | This paper presents a theoretical and empirical study of how immigration influences the joint determination of the wage structure and internal migration behavior for native-born workers in local labor markets. Using data from the 1960-2000 decennial censuses, the study shows that immigration is associated with lower in-migration rates, higher out-migration rates, and a decline in the growth rate of the native workforce. The native migration response attenuates the measured impact of immigration on wages in a local labor market by 40 to 60 percent, depending on whether the labor market is defined at the state or metropolitan area level. |
| JEL: | J61 R23 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11610&r=geo |
| By: | ; Minns (Department of Economics, Trinity College; McGill University) |
| Abstract: | We construct consumer price indices for Canada, mainly based on the expenditure records of Canada’s federal penitentiaries. Regional price variation was much greater in Canada in the late nineteenth century than in the northern U.S. The new data suggest substantial price decline to 1900. Regional price variation in Canada decreased gradually to 1914, and quickly during the First World War. For 1900-14 and 1922-3, new data are largely consistent with consumer price data compiled by The Labour Gazette. The new data suggest more inflation during the First World War. |
| Date: | 2005–05 |
| URL: | http://d.repec.org/n?u=RePEc:tcd:tcduee:200051&r=geo |
| By: | Paolo Epifani; Gino Gancia |
| Abstract: | We formulate a dynamic core-periphery model with frictions in the job matching process to study the interplay between trade costs, migration and regional unemploymentin the short- and long-run. We find that the spatial distribution of unemployment mirrors (inversely) the distribution of economic activities. Further, we highlight a contrast between the short-run and the long-run effects of trade-induced migration on regional unemployment. In particular, an inßow of immigrants from the periphery into the core reduces the unemployment gap in the short-run, but exacerbates unemployment disparities in the long-run. |
| Keywords: | Integration, Agglomeration, Search frictions, Labor mobility, Regional disparities |
| JEL: | F12 F15 F16 |
| Date: | 2002–03 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:832&r=geo |
| By: | Joan Costa-Font and Jordi Pons-Novell (Universitat de Barcelona) |
| Abstract: | One of the limitations of cross-country health expenditure analysis refers to the fact that the financing, the internal organization and political restraints of health care decision-making are country-specific and heterogeneous. Yet, a potential solution is to examine the influence of such effects in those countries that have undertaken decentralization processes. In such a setting, it is possible to examine potential expenditure spillovers across the geography of a country as well as the influence of the political ideology of regional incumbents on public health expenditure. This paper examines the determinants of public health expenditure within Spanish region-states (Autonomous Communities, ACs), most of them subject to similar financing structures although exhibiting significant heterogeneity as a result of the increasing decentralization, region-specific political factors along with different use of health care inputs, economic dimension and spatial interactions. |
| Keywords: | health expenditure, devolution, political ideology, political competition and spatial interactions |
| JEL: | I18 I38 H73 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:bar:bedcje:2005139&r=geo |
| By: | Gertrudes Guerreiro (Department of Economics, University of Évora); Conceição Rego (Department of Economics, University of Évora) |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:evo:wpecon:14_2005&r=geo |
| By: | Georgios Fotopoulos |
| Abstract: | This paper proposes a business-demographics adjusted shift-share analysis. This can be used when data availability does not allow direct association of employment changes to business demographics at the regional level. The method may be also used as an exploratory step before any explanatory econometric work is undertaken as a means of identifying classes of potential control variables. Applying the method to Greek data suggests that firm-size heterogeneity should not be ignored, that local conditions matter more than regional economic structure and that the latter are not symmetrical across sectors when it comes to the effects of business demographics on regional employment or output growth. |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:esi:egpdis:2005-26&r=geo |
| By: | Arthur Grimes (Motu Economic & Public Policy Research); Robert Sourell (Motu Economic & Public Policy Research); Andrew Aitken (Motu Economic & Public Policy Research) |
| Abstract: | Housing costs comprise a major part of most household budgets. Larger households require greater space than do smaller households but do not necessarily have larger incomes. The cost of extra housing space (e.g. the cost of an extra bedroom) may vary across different locations, both absolutely (dollars per week) and proportionately (percentage of overall costs). If this is the case, differential regional costs of additional space may provide an incentive for different sized households to locate in particular areas where housing costs most appropriately fit their needs. Our analysis uses tenancy bond rental data to analyse the cost of renting an extra bedroom in different locations throughout New Zealand. It discusses the theory of what determines rents. We then examine the nature of regional rental costs, testing whether the documented patterns fit with theoretical predictions. Finally, we reflect on what the results may imply for social outcomes and housing policy in New Zealand. To give a flavour of the issues, consider the following. In 2003, the average weekly rental cost of a two bedroom dwelling in Auckland was $37 more than for a one bedroom dwelling. The cost of a third bedroom was an extra $50 and the cost of a fourth bedroom was an additional $90. Thus weekly rental cost for a four bedroom dwelling exceeded that of a one bedroom dwelling by $177. In Manawatu-Wanganui, the cost of a two bedroom dwelling was $38 more than for a one bedroom dwelling - almost identical to the margin in Auckland. But the cost of additional bedrooms was much lower than in Auckland: $29 for a third bedroom and $33 for a fourth bedroom. This raw data might suggest that it would be beneficial for larger households to locate in Manawatu-Wanganui and for smaller households to locate in Auckland. However, the interaction with other factors has to be taken into account before such a conclusion can be reached. At the minimum, the data suggests there is a material issue to be addressed relating to disparities in regional housing costs for different sized households. |
| Keywords: | House Rents; Deprivation; Regional Disparities |
| JEL: | R21 R31 R51 |
| Date: | 2005–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpur:0509014&r=geo |
| By: | Charles Himmelberg; Christopher Mayer; Todd Sinai |
| Abstract: | We construct measures of the annual cost of single-family housing for 46 metropolitan areas in the United States over the last 25 years and compare them with local rents and incomes as a way of judging the level of housing prices. Conventional metrics like the growth rate of house prices, the price-to-rent ratio, and the price-to-income ratio can be misleading because they fail to account both for the time series pattern of real long-term interest rates and predictable differences in the long-run growth rates of house prices across local markets. These factors are especially important in recent years because house prices are theoretically more sensitive to interest rates when rates are already low, and more sensitive still in those cities where the long-run rate of house price growth is high. During the 1980s, our measures show that houses looked most overvalued in many of the same cities that subsequently experienced the largest house price declines. We find that from the trough of 1995 to 2004, the cost of owning rose somewhat relative to the cost of renting, but not, in most cities, to levels that made houses look overvalued. |
| JEL: | R21 R31 G10 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11643&r=geo |
| By: | Isabelle Sin (Motu Economic & Public Policy Research); Steven Stillman (Motu Economic & Public Policy Research) |
| Abstract: | This paper describes the geographical location and internal mobility of the Mâori ethnic group in New Zealand between 1991 and 2001. It is often suggested that Mâori are less mobile than other ethnic groups because of attachment to particular geographical locations. We compare the mobility of Mâori in particular locations to the mobility of similar Europeans in those same locations and find that, contrary to this anecdotal evidence, most Mâori are, on average, more mobile than Europeans in New Zealand. We do find that the roughly forty percent of Mâori who live in areas local to their iwi (tribe) are less mobile than comparable Europeans in those same areas. Defining local areas both based on both traditional iwi locations and current iwi populations, we find suggestive evidence that social ties are more important than land-based attachment in explaining why these Mâori are relatively less mobile, but that land- based attachment is also an important impediment to mobility. |
| Keywords: | Mobility, Migration, Social Networks, New Zealand, Mâori, Labour Market Areas |
| JEL: | J15 J62 R23 |
| Date: | 2005–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpla:0509005&r=geo |
| By: | Arthur Grimes (Motu Economic & Public Policy Research); Suzi Kerr (Motu Economic & Public Policy Research); Andrew Aitken (Motu Economic & Public Policy Research) |
| Abstract: | This report was prepared for the Centre for Housing Research Aotearoa New Zealand (CHRANZ). The aim of this study is to identify a set of housing research projects addressing two related topics. First, the impact of economic, social and environmental changes on housing in New Zealand's non-metropolitan regions; and second, the economic, social and environmental impacts of the New Zealand housing market. Identification of these projects is designed to help CHRANZ in developing and prioritising its research agenda pertaining to policy-relevant housing research within New Zealand. By doing so, we aim to outline coherent programmes of research that develop a comprehensive body of knowledge about the housing sector and its interactions with other key elements of society. The study suggests a set of research questions leading to coherent programmes of research, rather than to answer the research questions. We concentrate on posing questions that are of policy concern. Some are matters of current official policy concern. Others relate to issues that non-official sources consider should be of policy concern or which we judge may become of official concern in future years. Thus our analysis is informed by current policy priorities, but seeks to take a strategic look also at forthcoming priorities that may emerge over the next five years. |
| Keywords: | Housing markets, Housing policy |
| JEL: | R21 R31 |
| Date: | 2005–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpur:0509012&r=geo |
| By: | Paolo Buonanno and Daniel Montolio (Universitat de Barcelona) |
| Abstract: | In this paper we study, having as theoretical reference the economic model of crime (Becker, 1968; Ehrlich, 1973), which are the socioeconomic and demographic determinants of crime in Spain paying attention on the role of provincial peculiarities. We estimate a crime equation using a panel dataset of Spanish provinces (NUTS3) for the period 1993 to 1999 employing the GMM-system estimator. Empirical results suggest that lagged crime rate and clear-up rate are positively correlated to all typologies of crime rate considered. Property crimes are better explained by socioeconomic variables (GDP per capita, GDP growth rate and percentage of population with high school and university degree), while demographic factors reveal important and significant influences, in particular for crimes against the person. These results are obtained using an instrumental variable approach that takes advantage of the dynamic properties of our dataset to control for both measurement errors in crime data and joint endogeneity of the explanatory variables. |
| Keywords: | Crime, Socioeconomic factors, Panel Data. |
| JEL: | I2 J24 K42 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:bar:bedcje:2005138&r=geo |
| By: | Michelle Poland (The Families Commission); David C Maré (Motu Economic & Public Policy Research) |
| Abstract: | The purpose of this paper is to provide a guide to concepts, ideas, and measurements of geographic communities. The paper investigates the various concepts of geographic communities found in the literature and reviews existing studies to determine how researchers measure geographic communities in practice. |
| Keywords: | Geographic communities, Local labour markets |
| JEL: | R11 |
| Date: | 2005–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpur:0509016&r=geo |
| By: | Arthur Grimes (Motu Economic & Public Policy Research); Andrew Aitken (Motu Economic & Public Policy Research) |
| Abstract: | We examine the impact of shocks on community outcomes. The shocks that we examine are exogenous economic shocks which occur externally to the local community, and which are hypothesised to impact on the community. By testing the impact of these shocks on community developments, we enrich understanding of what causes communities to develop as they do over time. In particular, we gain a greater understanding of the impact of factors largely or wholly outside the control of local communities which lead to inequality in outcomes between communities. To focus our analysis, we concentrate on the price of houses within each community as the community outcome variable. The local price of houses summarises, in one dimension, a host of tangible and intangible components relating to the community of interest. We use a multivariate panel structure to estimate the long-run and short-run impacts of price, production and demographic variables on real house prices. |
| Keywords: | House prices, commodity prices, regional shocks, adjustment dynamics |
| JEL: | R10 R21 |
| Date: | 2005–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpur:0509011&r=geo |
| By: | Kranenburg,Hans,van (METEOR) |
| Abstract: | The aim of this study is to investigate the effect of market structure and area characteristics on the subscription prices and advertising rates for regional newspapers in the Netherlands. The price-market structure analysis in this study shows that there exists a negative relationship between market structure and prices. The results also show that advertising rates, differently to subscription prices, are significantly influenced by regional income and particularly by population density in the specific area. Furthermore, the evidence indicates that the relevant market for regional newspapers in the Netherlands is a market which encompasses regional newspapers, national newspapers and other media sources. |
| Keywords: | Strategy; |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:umamet:2005025&r=geo |
| By: | Jeffrey P. Cohen; Cletus C. Coughlin |
| Abstract: | Using hedonic pricing models, we focus on the effects of proximity and noise on housing prices in neighborhoods near Hartsfield-Jackson Atlanta International Airport. We find that proximity to the Atlanta airport is related positively to housing prices and that airport-related noise is associated with lower prices. Relative to this latter result, estimates are generated showing evidence of a shrinking noise discount between 1995 and 2002. An important question is whether this result reflects a reduced effect of a given noise level on house prices or declining noise levels in the areas subject to relatively more noise. One explanation is that soundproofing of houses in noisy areas has increased their values. A lack of data, however, prevents definitive statements concerning the importance of soundproofing. A second explanation is that the trend reflects the limitations of the underlying noise contours. Over time, houses in the neighborhoods near the airport have been subjected to less airport-related noise. Evidence is presented consistent with this explanation. |
| Keywords: | Housing - Prices ; Airports |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:2005-060&r=geo |
| By: | Steven Stillman (Motu Economic & Public Policy Research) |
| Abstract: | This paper uses valuation data from Quotable Value New Zealand to examine changes in the value of the rural land in New Zealand between 1989 and 2003. The value of rural land reflects the profitability of agriculture as well as the returns to alternative land uses, and has a large impact on the prosperity of rural areas. The paper highlights the importance of both changes in land use and changes in the value of land in different uses in explaining overall changes in land values. It also examines the relationship among productive characteristics of the land, the local climate, various local amenities, and changes in land values and land use to better understand what factors have been driving overall changes in the value of rural land across New Zealand. We find that the real value of rural land in all uses increased substantially over the years being examined. Land use in rural areas also changed considerably during this period, but these changes in land use were essentially uncorrelated with changes in land values. Our regression results indicate that rural land values increased the most in less populated areas with good climates and local amenities. Initial land use also plays an important role in explaining the variation in changes in rural land values with greater increases in land values found in areas with more land initially devoted to urban uses and commercial forestry, and less land initially devoted to horticulture and lifestyle uses. |
| Keywords: | Land Use, Land Value, New Zealand, Rural Areas |
| JEL: | R14 R22 Q15 |
| Date: | 2005–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpur:0509015&r=geo |
| By: | Proost Stef (K.U.Leuven-Center for Economic Studies; UCL - CORE); Van der Loo Saskia (K.U.Leuven-Center for Economic Studies; UCL - CORE); Andre de Palma (Université de Cergy-Pontoise, ENPC and Member of Institut Universitaire de France, THEMA, 33,); Lindsey Robin (Department of Economics, University of Alberta) |
| Abstract: | A proposal has been made to build a new tunnel under the Scheldt river near the centre of Antwerp in order to relieve traffic congestion on the ring road and in an existing tunnel. The new tunnel is expected to cost more than €1 billion, and tolls have been suggested to help finance construction and to manage demand. This paper conducts a preliminary cost-benefit analysis of a new tunnel and three alternative tolling schemes, and compares them with a do-nothing scenario and an option to toll the existing tunnel without building a new one. The analysis is performed using a model that was recently developed as part of the European-Union funded REVENUE project. The two tunnels are treated as imperfect substitutes, and a multi-year accounting framework is adopted that accounts for emissions, accidents and noise externalities, road damage, revenues accruing to the national and regional governments from existing transport user charges, and the salvage value of the new tunnel. With the base-case parameter values it is found that building the tunnel is worthwhile with all three tolling regimes and yields a higher benefit than not building the tunnel and tolling the old one. Nevertheless, the net benefit from building the tunnel differs appreciably between tolling regimes, and it is sensitive to the value assumed for the marginal cost of public funds. |
| Keywords: | infrastructure investment, route choice, congestion, tolls |
| JEL: | D61 R41 R48 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:ete:etewps:ete0507&r=geo |