nep-geo New Economics Papers
on Economic Geography
Issue of 2006‒08‒05
25 papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Regional Evidence on the Finance - Growth Nexus By Andrea Vaona
  2. Asymmetric Spatial Competition By Sougata Poddar; Ruby Toh
  3. Canada's Global Cities: Socio-economic Conditions in Montréal, Toronto and Vancouver By Heisz, Andrew
  4. Legislature size and government spending in Italian regions: forecasting the effects of a reform. By Fiorino, Nadia; Ricciuti, Roberto
  5. Quality Investment and Price Formation in the Performing Arts Sector: A Spatial Analysis By Traub, Stefan
  6. The determinants of urban public transport: an international comparison and econometric analysis By Iragaël Joly; Sophie Masson; Romain Petiot
  7. Exploring the Detailed Location Patterns of UK Manufacturing Industries using Microgeographic Data By Gilles Duranton; Henry G Overman
  8. A Century of Shocks: The Evolution of the German City Size Distribution 1925 – 1999 By Maarten Bosker; Steven Brakman; Harry Garretsen; Marc Schramm
  9. Supply Constraints and Housing Prices By Saku Aura; Thomas Davidoff
  10. Assessing the effects of local taxation using microgeographic data By Gilles Duranton; Laurent Gobillon; Henry G Overman
  11. Merging the Purchasing Power: Parity and the Phillips Curve Literatures: Regional Evidence from Italy By Andrea Vaona
  12. Regional Convergence in Latin America By Maria Isabel Serra; Maria Fernanda Pazmino; Genevieve Lindow; Gustavo Ramirez; Bennett Sutton
  13. Towards Sustainable Mobility Indicators: Application to the Lyons Conurbation By Jean-Pierre Nicolas; Pascal Pochet; Hélène Poimboeuf
  14. The ‘de-territorialisation of closeness’ - a typology of international successful R&D projects involving cultural and geographic proximity By Paulo Santos; Aurora A.C. Teixeira; Ana Brochado
  15. The link between travel Time Budget and Speed: a Key relationship for urban space-time dynamics By Iragaël Joly
  16. Branching and Competitiveness across Regions in the Italian Banking Industry By V. CERASI - B. CHIZZOLINI - M. IVALDI
  17. Finance and growth in a bank-based economy: is it quantity or quality that matters? By Koetter, Michael; Wedow, Michael
  18. Shocking Aspects of Canadian Labor Markets By Andrew Swiston; Tamim Bayoumi; Bennett Sutton
  19. Improving Public-spending Efficiency in Czech Regions and Municipalities By Philip Hemmings
  20. Les déterminants de la part modale des transports en commun dans 100 villes du monde By Iragaël Joly; Sophie Masson; Romain Petiot
  21. Measurement and Spatial Effects of the Immigrant Created Cultural Diversity in Sydney By Walter F. Lalich
  22. The Provision of Local Public Services in a Risky Environment: An Application to Crime By Traub, Stefan
  23. Evidence and Implications of Zipf’s Law for Integrated Economies By Harry P. Bowen; Haris Munandar; Jean-Marie Viaene
  24. Tax incentives and the location of FDI : evidence from a panel of German multinationals By Buettner, Thiess; Ruf, Martin
  25. Housing: An Analysis of Ownership and Investment Based on the Household Savings Survey By Mark van Zijll de Jong; Grant M. Scobie

  1. By: Andrea Vaona
    Abstract: The Finance-Growth Nexus is a classical source of debate among economists. This contribution offers regional evidence on this issue in order to see if it can meet the data within a 140 years old economic union -- Italy -, in the ideal context for its main competitor - New Economic Geography - and in order to avoid pooling between developed and developing countries. The results for this application support the view that finance leads growth, reject its possible endogeneity and shows its robustness even in presence of spatial unobserved heterogeneity by using both cross-section and panel data estimators.
    Keywords: Finance, Growth, Regions, Cross-Section Analysis, Panel Data Analysis
    JEL: O18 O16 C31
    Date: 2006–07
  2. By: Sougata Poddar (Department of Economics, National University of Singapore); Ruby Toh
    Abstract: This paper considers price and location decisions of competing duopolists through an approach that integrates the traditional inside location and outside location model. One firm locates inside a linear city along with consumers while the other locates outside it. We analyze a location-price simultaneous game as well as a location-then price sequential game and characterize the equilibria in pure strategies. The transport cost are assumed to be linear-quadratic and borne by the consumers. We find the results are contrasting to the traditional inside and outside location models and the stability of the proposed model is intermediate between the two.
    Keywords: Inside-outside location model, spatial competition, product differentiation, transportation costs, cross-border shopping
    JEL: C72 D43 L13
  3. By: Heisz, Andrew
    Abstract: This report paints a statistical portrait of socio-economic conditions in the Census Metropolitan Areas (CMAs) of Toronto, Montréal and Vancouver. It highlights trends in population growth, suburban growth, commuting, employment, unemployment, immigration, income and low-income and socio-economic conditions among immigrants, Aboriginal People, and others. It uses data from the 1981 to 2001 Censuses of Canada, the 2005 Labour Force Historical Review, and Income in Canada, 2004.
    Keywords: Population and demography, Personal finance and household finance, Ethnic origin, Income, Population characteristics
    Date: 2006–07–20
  4. By: Fiorino, Nadia; Ricciuti, Roberto
    Abstract: We analyze the effect of different legislature size on per capita regional expenditure in Italy. According to the theory, legislature size has an indefinite effect on government spending because logrolling and transaction costs may have canceling effects. We find a large and significantly positive effect of the number of legislators. We use these findings to forecast the effects of the increase in the number of legislators that is taking place in some regions: a 10% increase in legislature size commands on average a 12% increase in per capita regional expenditure.
    Keywords: Legislature size, regional expenditure
    JEL: H72 H73
    Date: 2006–07
  5. By: Traub, Stefan
    Abstract: In this paper, we present a spatial model of the public provision of the performing arts. Agents behave boundedly rational. Art directors set performance quality according to their aspiration levels. While taking into account the spatial distribution of the population, administrative directors in calculating ticket prices ignore that they compete with neighboring performing arts organization (PAOs) for audience. The model is tested empirically using a spatial autoregressive (SAR) model with a complete data set of German PAOs and cities. Our data support the model and help to explain the size and distribution of losses in the public performing arts sector.
    Keywords: Performing Arts, Local Public Goods, Quality, Spatial Competition, Bounded Rationality
    JEL: H41 R59 Z10
    Date: 2005
  6. By: Iragaël Joly (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat]); Sophie Masson (OMI - Organisations Marchandes et Institutions - [Université de Reims - Champagne Ardenne]); Romain Petiot (GEREM - Groupe d'Étude et de Recherche en Économie Mathématique - [Université de Perpignan])
    Abstract: The analysis presented in this paper is based on the database created by the UITP (International Association of Public Transport), "The Millennium Cities Database", which covers the public transport systems in 100 of the world's cities. It contains data on demography, urban structure, transport networks, daily mobility, environmental impacts, etc. Our analysis demonstrates the contrasts between European and American travel practices. It explores possible links between public transport market share and geographical and economic conditions on the one hand and the characteristics and performances of public transport systems on the other. Our research has generated an explanatory econometric model for public transport market share. To end with, a consideration of the levers that can be used to influence the public transport system leads into a discussion about the future of cities with ''European urban mobility'' and the danger of a slide towards ''American urban mobility'' taking place.
    Keywords: Transport systems ; Urban mobility ; Transport policy ; Public transport
    Date: 2006–07–25
  7. By: Gilles Duranton; Henry G Overman
    Abstract: Using a point-patternmethodology, we explore a range of issues regarding the detailed location patterns of UKmanufacturing industries. In particular, we focus on the location of entrants and exiters vs. continuing establishments, domestic- vs. foreign-owned, large vs. small, and affiliated vs. independent. We also examine co-localisation between vertically-linked industries. Our analysis provides a set of new stylised facts and confirmation for others.
    Keywords: Localisation, Clusters, K-density, Spatial Statistics.
    JEL: C19 R12 L70
    Date: 2006–07–24
  8. By: Maarten Bosker; Steven Brakman; Harry Garretsen; Marc Schramm
    Abstract: The empirical literature on city size distributions has mainly focused on the USA. The first major contribution of this paper is to provide empirical evidence on the evolution and structure of the West-German city size distribution. Using a unique annual data set that covers most of the 20th century for 62 of West-Germany's largest cities, we look at the evolution of both the city size distribution as a whole and each city separately. The West-German case is of particular interest as it has undergone major shocks, most notably WWII. Our data set allows us to identify these shocks and provide evidence on the effects of these `quasi-natural experiments' on the city size distribution. The second major contribution of this paper is that we perform unit-root tests on individual German city sizes using a substantial number of observations to analyze the evolution of the individual cities that make up the German city size distribution. Our main findings are twofold. First, WWII has had a major and lasting impact on the city size distribution. Second, the overall city size distribution does not adhere to Zipf's Law. This second finding is largely based on the results of unit root tests for individual cities to test for Gibrat's Law, the latter being a requirement for Zipf's Law to hold for the overall city-size distribution. Together these two findings are consistent with theories emphasizing increasing returns to scale in city growth.
    JEL: O18 R12
    Date: 2006
  9. By: Saku Aura; Thomas Davidoff
    Abstract: This paper analyzes the effects of land use constraints on housing prices. We provide a new framework for evaluating policy when mobility across regions is allowed but limited. A key result is that loosening regulatory constraints within individual regions would have little effect on prices for plausible parameterizations. For example, we show reasonable conditions under which, even if every building in Manhattan were 100 stories tall, prices would fall by less than 15 percent.
    Keywords: housing supply and markets, regulatory policies, land use patterns
    JEL: R14 R21 R38
    Date: 2006
  10. By: Gilles Duranton; Laurent Gobillon; Henry G Overman
    Abstract: We study the impact of local taxation on the location and growth of firms. Our empiricalmethodology pairs establishments across jurisdictional boundaries to estimate the impact of taxation. Our approach improves on existing work as it corrects for unobserved establishment heterogeneity, for unobserved time-varying site specific effects, and for the endogeneity of local taxation. Applied to data for English manufacturing establishments we find that local taxation has a negative impact on employment growth, but no effect on entry.
    Keywords: Local taxation, spatial differencing, borders, regression discontinuity
    JEL: H22 H71 R38
    Date: 2006–07–24
  11. By: Andrea Vaona
    Abstract: The main purpose of this paper is to merge together two strands of the literature regarding, either directly or indirectly, inflation: the PPP and the Phillips curve ones. In order to accomplish this task, this contribution applies the tools of the Empirical Growth Literature and of Dynamic Panel Data estimation on a sample of 81 Italian provinces from the year 1986 to the year 1998, exploiting cross-sectional variation to avoid to use instruments not directly connected with the inflation generating process. This research strategy allows to conclude that inflation is characterized by a low degree of persistence and by conditional b-convergence across provinces. Its most suitable driving variable is the unemployment rate and there are long-term non neutralities at the regional level.
    Date: 2006–07
  12. By: Maria Isabel Serra; Maria Fernanda Pazmino; Genevieve Lindow; Gustavo Ramirez; Bennett Sutton
    Abstract: This paper presents empirical evidence on convergence of per capita output for regions within six large middle-income Latin American countries: Argentina, Brazil, Chile, Colombia, Mexico, and Peru. It explores the role played by several exogenous sectoral shocks and differences in steady states within each country. It finds that poor and rich regions within each country converged at very low rates over the past three decades. It also finds evidence of regional "convergence clubs" within Brazil and Peru- the estimated speeds of convergence for these countries more than double after controlling for different subnational levels of steady state. For the latter countries and Chile, convergence is also higher after controlling for sector-specific shocks. Finally, results show that national disparities in per capita output increased temporarily after each country pursued trade liberalization.
    Keywords: Economic growth , Argentina , Brazil , Chile , Colombia , Mexico , Peru , Latin America , Productivity , Production ,
    Date: 2006–05–23
  13. By: Jean-Pierre Nicolas (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat]); Pascal Pochet (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat]); Hélène Poimboeuf
    Abstract: This paper applies the theme of sustainable development to the case of urban transport and daily mobility of the inhabitants of a city. A set of indicators which simultaneously takes the three dimensions of sustainability––environmental, economic, and social––into account is suggested. We present here the results of exploratory research funded by Renault Automobile Manufacturers, carried out to verify the feasibility and the usefulness of elaborating such sustainable mobility indicators. Values of the economics, environmental and social indicators are presented for the Lyons case. These estimations are mainly based on the household travel survey held in this city in 1994–1995. In the end, this set of indicators should allow the comparison of different urban transport strategies within an urban area, but also between different urban contexts, and through time. The conditions of generalization of these measurements of indicators are then discussed.
    Keywords: Trip distance ; Daily mobility ; Sustainability indicators ; Household travel survey ; Methodology ; Pollutant emissions ; Expenditures ; Global costs
    Date: 2006–07–24
  14. By: Paulo Santos (MIETE, Faculdade de Engenharia, Universidade do Porto); Aurora A.C. Teixeira (CEMPRE, Faculdade de Economia, Universidade do Porto); Ana Brochado (Faculdade de Economia, Universidade do Porto)
    Abstract: Although there is a considerable amount of empirical evidence on inter-firm collaborations within technology-based industries, there are only a few works concerned with R&D cooperation by low-tech firms, especially SMEs. Providing further and new evidence based on a recently built database of CRAFT projects, this study analyzes the relationship between technology and proximity in international R&D networks using Homogeneity Analysis by Means of Alternating Least Squares (HOMALS) and statistical cluster techniques. The resulting typology of international cooperative R&D projects highlights that successful international cooperative R&D projects are both culturally/geographically closer and distant. Moreover, and quite interestingly, geographically distant projects are technologically more advanced whereas those located near each other are essentially low tech. Such evidence is likely to reflect the tacit-codified knowledge debate boosted recently by the ICT “revolution” emphasized by the prophets of the “Death of Distance” and the “End of Geography”.
    Keywords: Research and Development (R&D); proximity; SMEs
    JEL: O32 R12 R58
    Date: 2006–07
  15. By: Iragaël Joly (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat])
    Abstract: The relationship between travel time budget (TTB) and speed is central to transport economics and allows us to analyze travel behaviour, urban structure and the transport system. Together, this relationship and Zahavi's hypothesis provide a straightforward mechanism that explains the increase in daily travel distances and urban sprawl. However, quantitative analysis (Regression Analysis and Principal Component Analysis) shows that TTBs are only stable at an aggregate level, and the potential of urban speed restriction policies is severely limited at local level.
    Keywords: Travel Time Budget (TTB) ; Travel Behaviour ; Transport Policy ; Urban speed restriction policies
    Date: 2006–07–25
  17. By: Koetter, Michael; Wedow, Michael
    Abstract: With this paper we seek to contribute to the literature on the relation between finance and growth. We argue that most studies in the field fail to measure the quality of financial intermediation but rather resort to using proxies on the size of nancial systems. Moreover, cross-country comparisons suffer from the disadvantage that systematic differences between markedly different economies may drive the result that finance matters. To circumvent these two problems we examine the importance of the quality of banks' financial intermediation in the regions of one economy only: Germany. To approximate the quality of financial intermediation we use cost effciency estimates derived with stochastic frontier analysis. We find that the quantity of supplied credit is indeed insignificant when a measure of intermediation quality is included. In turn, the efficiency of intermediation is robust, also after excluding banks likely to operate in multiple regions and distinguishing between dierent banking pillars active in Germany.
    Keywords: Finance-growth nexus, financial intermediation, regional growth
    JEL: G21 G28 O4 R11
    Date: 2005
  18. By: Andrew Swiston; Tamim Bayoumi; Bennett Sutton
    Abstract: We analyze the flexibility of the Canadian labor market across provinces in both an interand intra-national context using macroeconomic data on employment, unemployment, participation, and (for Canada) migration and real wages. We find that Canadian labor markets respond in a similar manner to their U.S. counterparts and are more flexible than those in major euro area countries. Within Canada, the results indicate that labor markets in Ontario and provinces further west are more flexible, particularly with regard to migration, while those further east are less so.
    Date: 2006–04–11
  19. By: Philip Hemmings
    Abstract: This paper looks at ways of ensuring Czech regions and municipalities are fully motivated to make efficiency improvements in public service provision and so help achieve countrywide fiscal sustainability. The very large number of small municipalities in the Czech Republic means that scale economies are difficult to exploit and the policy options for overcoming this problem are discussed. In the financing system there are issues of transparency and the balance between autonomy for the regions and municipalities and central-government power to direct resources. In terms of accountability, questions of oversight and transparency arise in the public-procurement system and benchmarking in cost and output in public services is not yet widely used. This Working Paper relates to the 2006 OECD Economic Survey of the Czech Republic ( <P>L'amélioration de l'efficience des dépenses publiques dans les régions et les communes en République tchèque <BR>Ce document porte sur les moyens de veiller à ce que les régions et communes tchèques soient pleinement encouragées à réaliser des gains d’efficience dans la prestation des services publics, et à contribuer ainsi à garantir la viabilité budgétaire de l’ensemble du pays. Le très grand nombre de petites communes que compte la République tchèque signifie que les possibilités d’économies d’échelle sont difficiles à exploiter, et les options envisageables pour résoudre ce problème sont examinées. Par ailleurs, le système de financement soulève des questions de transparence et d’équilibre entre l’autonomie des régions et des communes, d’une part, et les prérogatives de l’administration centrale en matière de répartition des ressources, d’autre part. En termes d’obligations redditionnelles, des questions de contrôle et de transparence se posent dans le domaine des marchés publics, et l’analyse comparative des coûts et des résultats reste peu utilisée dans les services publics. Ce Document de travail se rapporte à l'Étude économique de l'OCDE de la République tchèque 2006 (
    Keywords: dépenses publiques, public expenditure, Czech Republic, République tchèque, regions, municipalities, régions, communes
    JEL: H50 H70
    Date: 2006–07–18
  20. By: Iragaël Joly (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat]); Sophie Masson (OMI - Organisations Marchandises et Institutions - [Université de Reims - Champagne Ardenne]); Romain Petiot (GEREM - Groupe d'Étude et de Recherche en Économie Mathématique - [Université de Perpignan])
    Abstract: L'étude présentée dans cet article s'appuie sur la base de données constituée par l'UITP (Union Internationale des Transports Publics), « The Millenium Cities Database ». Cette base dresse un état des lieux des systèmes de transports urbains dans 100 agglomérations. Les données concernent, entre autres, la démographie, la structure urbaine, les réseaux de transport, la mobilité, les effets environnementaux, etc. L'analyse permet, dans un premier temps, d'élaborer plusieurs profils d'agglomérations, ce qui conduit à mettre en lumière un clivage marqué entre une « mobilité à l'européenne » et une « mobilité à l'américaine ». Elle explore, dans un deuxième temps, des relations possibles entre la part de marché des transports collectifs et, d'une part, les conditions géographiques et économiques, d'autre part, les caractéristiques et les performances des systèmes de transports. Dans un troisième temps, une approche économétrique permet de tester la validité statistique des relations préalablement mises en évidence.
    Keywords: Systèmes de transports urbains ; mobilité urbaine ; politique des transports ; transports publics ; comparaison ; base de données (UITP)
    Date: 2006–07–25
  21. By: Walter F. Lalich (Macquarie University)
    Abstract: This paper analyses the contribution to the creation of a culturally diverse Sydney landscape by ethnic communities following the arrival of over a million and half non-English speaking settlers since 1948. Through fragmented collective actions, around 450 communal places were established to satisfy collectively perceived needs: places of worship, social and sports clubs, schools, childcare and aged care. Immigrants organised to overcome problems of social deprivation and scarcity of public places. They created needed collective goods on their own, through mutuality and compensated for their own meagre material resources with engendered social capital, time and energy. The diversity and intensity of development reflects differences in the perception of the settlement needs, urgency and aims within diverse ethnic groups. Immigrants enhanced the quality of life and developed a liveable city. Collected data inform on the outcome, developed capacities, investment patterns, annual income and expenditure, usage, management and employment patterns, gender and youth participation, functions and generated activities.
    Keywords: Settlement, Ethnic, Collective Goods, Communal Places, Spatial Clusters
    JEL: D71 E22 F22 I31 J15 J17 L31 Z13
    Date: 2006–04
  22. By: Traub, Stefan
    Abstract: We state efficiency conditions for the provision of congestable local public goods that diminish individual-specific proprietary risks. The optimum level of such a public service is determined by equating the sum of the reductions of the expected property losses due to a better service level with the marginal costs of the service. The optimum size of the providing local authority in terms of population is obtained where the increase in proprietary risks due to congestion meets the decrease in contributions for the original citizens. As an empirical example, we employ Germany’s crime statistic in order to assess the efficiency of the provision of police services at the state level.
    Keywords: Local Public Goods, Congestion, Risk, Crime, Police
    JEL: D61 H41 R50
    Date: 2006
  23. By: Harry P. Bowen; Haris Munandar; Jean-Marie Viaene
    Abstract: This paper considers the distribution of output and productive factors among members of a fully integrated economy (FIE). We demonstrate that each member’s shares of total output and of total factors will be equal. This implies that growth in shares is random. If output and factor shares evolve as reflective geometric Brownian motion, then limiting distribution of these shares will exhibit Zipf’s law. Our empirics support Zipf’s law for U.S. states and for E.U. countries. These findings imply that models characterizing growth of members within an FIE should embody a key assumption: growth process of shares is random and homogeneous.
    Keywords: growth, economic integration, factor price equalization, Zipf’s law
    JEL: E13 F15 F21 F22 O57
    Date: 2006
  24. By: Buettner, Thiess; Ruf, Martin
    Abstract: Using a firm-level dataset this paper investigates the impact of taxation on the decision of German multinationals to hold direct investments in other European countries or abroad. Controlling for firm-specific differences in the valuation of potential locations, the results confirm significant effects of tax incentives, market size, and of labor cost on cross-border location decisions. In accordance with Devereux and Griffith (1998) we find that the marginal tax rate has no predictive power for location decisions whereas effective average and statutory tax rates exert significant effects. In particular, the statutory tax rate has strong predictive power for the likelihood of direct investment holdings at a location. The results indicate that an increase in the statutory tax rate by 10 percentage points reduces the odds of observing some positive direct investment by approximately 20 %.
    Keywords: Location, FDI, Taxes, Firm-Level Panel Data, Fixed-Effects Logit Model
    JEL: F21 F23 H25 R38
    Date: 2005
  25. By: Mark van Zijll de Jong; Grant M. Scobie (The Treasury)
    Abstract: In 2001, Statistics New Zealand conducted a major survey of the assets and liabilities of New Zealanders called the Household Savings Survey (HSS). This paper presents the results of an analysis of ownership and investment in housing based on the results of that survey. International comparisons suggest that the rates of home ownership, investment in property and housing debt levels in New Zealand are broadly comparable with those in Australia and the United States and with a wider set of countries. An exception is that younger age groups in New Zealand hold more investment property than their counterparts in the USA and Australia. In New Zealand almost one in ten couples owned rental property in 2001, while one in five owned some form of investment property. We examine the factors that govern tenure choice and gearing. Of note is the fact that 44% of couples and 56% of individual home owners have debt free residential properties. Households' balance sheets reflect the importance of housing for both assets and liabilities. We complement the analysis of the cross-sectional unit record data from the HSS with an analysis of housing taken from the households' aggregate balance sheets from 1978 to 2004 from the Reserve Bank of New Zealand. We use these data to form a measure of household saving based on the stock of net equity. We then adjust this measure of savings for changes in house prices, and find that this adjustment explains almost two thirds of the difference between the stock and flow measure of household savings, the latter taken from the Household Income and Outlay Accounts. Furthermore we find that from 1980 to 2005 the annual average rate of household saving based on these estimates from household balance sheets was 12.4% of personal disposable income, after removing the effect of changes in house price. Arguably this is a preferable measure of household saving to the widely cited negative rates of household saving based on national income accounts. We further use the balance sheet data to estimate the extent to which households have apparently withdrawn equity from their housing assets for investment in other forms or consumption. We find that on average a rise of one dollar in housing net equity is associated with 10 cents of apparent equity withdrawal.
    Keywords: Housing; New Zealand; Portfolio; Wealth; Ownership; Equity; Gearing; Equity withdrawal; Measures of saving
    JEL: R20
    Date: 2006–07

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