|
on Urban and Real Estate Economics |
| By: | Jeffrey P. Cohen; Cletus C. Coughlin |
| Abstract: | Despite the refrain that housing prices are determined by "location, location, and location," no prior studies of airport noise and housing prices have incorporated spatial econometric techniques. We compare various spatial econometric models and estimation methods in a hedonic price framework to examine the impact of noise on 2003 housing values in the neighborhoods near the Atlanta airport. Strong evidence is presented that spatial effects are important and that these effects are best captured by a model that includes both spatial autocorrelation and autoregressive parameters. Modeling the spatial effects should yield airport noise parameter estimates that are more efficient and that are not subject to specification bias. Another key result is that the inclusion of spatial effects magnifies the negative price impacts of airport noise. |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:2006-026&r=ure |
| By: | Anthony Pennington-Cross |
| Abstract: | This paper examines what happens to mortgages in the subprime mortgage market once foreclosure proceeding are initiated. A multinominial logit model that allows for the interdependence of the possible outcomes or risks (cure, partial cure, paid off, and real estate owned) through the correlation of associated unobserved heterogeneities is estimated. The results show that the duration of foreclosures is impacted by many factors including contemporaneous housing market conditions, the prior performance of the loan (prior delinquency), and the state-level legal environment. |
| Keywords: | Mortgages |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:2006-027&r=ure |
| By: | Minfeng Deng |
| Abstract: | One of the key assumptions in spatial econometric modelling is that the spatial process is isotropic, which means that direction is irrelevant in the specification of the spatial structure. On one hand, this assumption largely reduces the complexity of the spatial models and facilitates estimation and interpretation; on the other hand, it appears rather restrictive and hard to justify in many empirical applications. In this paper a very general anisotropic spatial model, which allows for a high level of flexibility in the spatial structure, is proposed. This new model can be estimated using maximum likelihood and its asymptotic properties are well understood. When the model is applied to the well-known 1970 Boston housing prices data, it significantly outperforms the isotropic spatial lag model. It also provides interesting additional insights into the price determination process in the properties market. |
| Keywords: | Anisotropy, spatial econometrics, maximum likelihoods estimation, housing prices. |
| JEL: | C21 R15 R31 |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:msh:ebswps:2006-7&r=ure |
| By: | NA (NA) |
| Abstract: | This paper presents a study of errors in forecasting the population of Metropolitan Statistical Areas and the Primary MSAs of Consolidated Metropolitan Statistical Areas and New England MAs. The forecasts are for the year 2000 and are based on a semi-structural model estimated by Mills and Lubelle using 1970 to 1990 census data on population, employment and relative real wages. This model allows the testing of regional effects on population and employment growth. The year 2000 forecasts are for 321 MSAs as they were defined in 1990. Actual year 2000 populations for these MSAs are constructed using the MSA components lists for 1990. Forecast errors are constructed for these “historic” MSAs. The forecast errors for the entire set of cities are examined for regional patterns. A subset of 77 cities is examined more carefully using the State of the Nations Cities (SONC) data base prepared by the Center for Urban Policy Research. SONC contains observations on 2000 demographic and socioeconomic variables for all 77 MSAs in the data set. Selected variables will be used to test a model of forecast areas developed for this project to determine if there are systematic relationships between selected variables and the forecast errors and to determine if a semi-structural model based on urban characteristics variables can improve urban population forecasts. |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:bsu:wpaper:200510&r=ure |
| By: | KOCH, Wilfried (LEG - CNRS UMR 5118 - Université de Bourgogne) |
| Abstract: | Recent theoretical and empirical work generally often focus on the interdependence of nations and regions underlying that the economy of one country or region is not independent of the economies of others. However, these models generally ignores the impact of location and neighborhood in explaining growth. This paper presents an augmented Solow model that includes spatial externalities and spatial interdependence among economies. I obtain a spatial econometric reduce form which allows testing the effects of the rate of saving, the rate of population growth and the location on income per capita and on the conditional convergence process in Europe. |
| Keywords: | Solow growth model ; technological interdependence,; spatial externalities ; spatial dependence ; regional disparities |
| JEL: | C31 R11 O4 |
| Date: | 2006–04 |
| URL: | http://d.repec.org/n?u=RePEc:lat:legeco:2006-02&r=ure |
| By: | Beckstead, Desmond; Brown, Mark |
| Abstract: | In recent years, cities have become increasingly interested in their ability to generate, attract and retain human capital. One measure of human capital is employment in science- and engineering-based occupations. This paper provides a comparison of the employment shares of these specialized occupations across Canadian and U.S. cities by using data from the Canadian and the U.S. censuses from 1980-1981 and 2000-2001. The paper, therefore, provides a perspective on how Canadian cities performed relative to their U.S. counterparts over a twenty-year period. It also seeks to evaluate how cities of different sizes have performed, because large cities may be advantaged over smaller cities in terms of factors influencing both the demand for, and supply of, scientists and engineers. |
| Keywords: | Labour, Science and technology, Occupations, Innovation |
| Date: | 2006–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp1e:2006012e&r=ure |
| By: | Hendrik Jürges; Wolfram F. Richter; Kerstin Schneider (Mannheim Research Institute for the Economics of Aging (MEA)) |
| Abstract: | Applying the theory of yardstick competition to the schooling system, we show that it is optimal to have central tests of student achievement and to engage in benchmarking because it raises the quality of teaching. This is true even if teachers’ pay (defined in monetary terms) is not performance related. If teachers value reputation, and if teaching output is measured so that it becomes comparable, teachers will increase their effort. The theory is tested using the German PISA-E data. Use is made of the fact that central exams exist in some federal states of Germany but not in all. The empirical evidence suggests that central exams have a positive effect on the quality of teaching. |
| JEL: | I28 |
| Date: | 2005–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:xrs:meawpa:05091&r=ure |
| By: | Lorenzo Cassi (CESPRI, Università Commerciale Bocconi, Milano, Italy); Lorenzo Zirulia (CESPRI, Università Commerciale Bocconi, Milano, Italy) |
| Abstract: | The aim of this paper is to extend the theoretical literature on knowledge and network structure by considering explicitly the choice to use the social network as a learning mechanism. In the model, we consider a set of actors that creates and diffuses knowledge. They are located on a lattice (identifying the social space) and they are directly connected with a small number of other individuals. Their aim is to increase their personal knowledge. We assume that individuals can learn in two ways: individually, by elaborating their personal knowledge; or socially, by interacting with other individuals in their social neighbourhood. Given this framework, we compare network structures in terms of efficiency and equity. We find that networks characterized by low average distance perform well in the short run, when the opportunity cost of using the network is low, but cliquish networks are more efficient in the long run, when the opportunity cost is high. However, a "small world" structure, characterized both by low average distance and high cliquishness, is the most equal structure in terms of knowledge distribution. |
| Keywords: | Knowledge, Networks, Small worlds, Diffusion, Learning |
| JEL: | D83 O33 Z13 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:cri:cespri:wp175&r=ure |
| By: | Andrew Leigh (SPEAR Centre, RSSS, ANU) |
| Abstract: | Using a large Australian social survey, combined with precise data on neighbourhood characteristics, I explore the factors that affect trust at a local level (‘localised trust’) and at a national level (‘generalised trust’). Trust is positively associated with the respondent’s education, and negatively associated with the amount of time spent commuting. At a neighbourhood level, trust is higher in affluent areas, and lower in ethnically and linguistically heterogeneous communities, with the effect being stronger for linguistic heterogeneity than ethnic heterogeneity. Linguistic heterogeneity reduces localised trust for both natives and immigrants, and reduces generalised trust only for immigrants. Instrumental variables specifications show similar results. By contrast with the United States, there is no apparent relationship between trust and inequality across neighbourhoods in Australia. |
| Keywords: | Trust, social capital, income distribution, immigration, ethnicity |
| JEL: | D31 D71 J15 Z13 |
| Date: | 2006–01 |
| URL: | http://d.repec.org/n?u=RePEc:auu:dpaper:511&r=ure |
| By: | Imerman, Mark D.; Eathington, Liesl; Jintanakul, Kanlaya; Otto, Daniel |
| Abstract: | This report provides a spatial representation of hospital geography in Iowa and of the decisions of patients to patronize hospitals. It begins with a brief analysis of hospital proximity and hospital proximity’s relationship to population distributions and existing hospital capacity. This is followed with a discussion of hospital capacity as a proxy for the supply of hospital services and the construction of hospital service area gravity models based upon capacity. Patient patronage of hospitals is then presented as a proxy of demand for hospital services, and gravity models are estimated on the basis of patronage. Having defined proxies for both the supply of and demand for hospital services and estimated patronage areas with respect to both, the analysis then turns to an investigation of where patients actually go for health care services. A simple visual analysis is done by mapping patients’ locations of residence and coding residence points to identify hospitals actually visited. The next step is to informally evaluate the expectation that patients will patronize their local (within an estimated service area) or nearest (if they reside outside of any service area) hospital. This is done with respect to type of patient (inpatient or outpatient) and by type of diagnosis. This investigation is based on hospital proximity, size, and patronage rather than qualitative evaluations of healthcare adequacy. Evaluation of health care quality is beyond the expertise of the authors. The analysis is based on visual interpretations and simple groupings of mapped data rather than on geostatistical analysis. The results provide a preliminary evaluation of data sources that have not previously been examined in detail. These preliminary results may identify areas of interest for further study. Data was obtained through the 2002 Iowa Hospital Association Inpatient and Outpatient Databases, which provide information on actual patient patronage of Iowa hospitals. Patient patronage reveals individual decisions made in the context of current health care pricing, quality, and availability. |
| Keywords: | Healthcare, Hospital |
| JEL: | I0 I1 L8 |
| Date: | 2006–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:12630&r=ure |
| By: | Andrea Morrison (CESPRI and Department of Economics and Quantitative Methods, Università Bocconi, Milano and Università del Piemonte Orientale, Novara, Italy); Roberta Rabellotti (Department of Economics and Quantitative Methods, Università del Piemonte Orientale, Novara, Italy) |
| Abstract: | A well-grounded empirical and theoretical literature shows that local production systems can benefit from external economies generated by a shared ‘industrial atmosphere’. Many scholars would agree that in contexts as industrial districts, clusters and local systems, economic actions are strongly embedded in social and institutional factors. Nevertheless, many scholars would instead debate about the nature, boundaries and processes underpinning ‘industrial atmosphere’. This paper aims at contributing to this field of studies by entering into the black box of the ‘industrial atmosphere’ reconstructing the informal contacts underpinning collective learning in a local production system. The study is based on empirical evidence collected at firm level in an Italian wine local system and uses methods of network analysis. |
| Keywords: | Social Networks, Knowledge, Industrial Clusters, Wine Sector |
| JEL: | O31 R10 Z13 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:cri:cespri:wp174&r=ure |
| By: | Antonio Guarino; Piero Tedeschi |
| Abstract: | Knowledge spillovers and labor mobility in industrial clusters are interrelated phenomena. A firm's knowledge is embodied in the entrepreneur and in the specialized workers. Knowledge can spill over from one firm to another through two channels: direct revelation from one entrepreneur to another and labor mobility. We show that, in equilibrium, an entrepreneur can disclose information to another in order to avoid labor poaching. The incentive of firms to disclose information voluntarily is one of the novel contributions of our paper. In the absence of information disclosure, spillovers can still occur through labor poaching. Labor poaching and voluntary disclosure of information can also occur simultaneously in equilibrium. We also provide a rationale for the localized character of the spillovers and for the limited geographical extensions of industrial clusters. |
| Keywords: | Spillover, Industrial Cluster, Labor Mobility |
| JEL: | D83 L11 |
| Date: | 2006–05 |
| URL: | http://d.repec.org/n?u=RePEc:mis:wpaper:20060507&r=ure |
| By: | Christina E. Bannier (geb. Metz); Falko Fecht; Marcel Tyrell |
| Date: | 2006–05 |
| URL: | http://d.repec.org/n?u=RePEc:fra:franaf:165&r=ure |
| By: | NA (NA) |
| Abstract: | The major goal of the research presented here is to test the usefulness of a different way of conceptualizing broad regions of the United States. The census regions are often used to group MSAs for various types of studies. The alternative regions are defined based on access to ocean, Great Lakes, or river ports. The usefulness of this set of regions is compared to that of the census regions using both a dummy variable approach and an index of disparity approach. This paper presents a statistical test of the hypothesis that access to port facilities could and did positively influence urban growth between 1970 and 1990. The rationale for the hypothesis is that the expansion of trade resulting from the North American Free Trade Association, various steps accomplished under GATT and the WTO, and the United States' leading role as a free trade advocate has increased the advantage of expanding economic activity in coastal regions. |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:bsu:wpaper:200509&r=ure |
| By: | Randall Eberts; George Erickcek; Jack Kleinhenz |
| Abstract: | The Fund for Our Economic Future (The Fund) is a multiyear collaborative effort “to encourage and advance a common and highly focused regional economic development agenda that can lead to a long-term economic transformation of the Northeast Ohio (NEO) economy.” One of the strategies pursued by the Fund is to create and regularly update Dashboard Indicators for the Northeast Ohio Regional Economy. The Dashboard is intended to provide a framework for understanding the regional economic process and to track the region’s economic progress. This report presents the methodology used to construct and design the dashboard. The Federal Reserve Bank of Cleveland is publishing this paper as part of our working paper series in order to further academic discussion of regional economic growth factors. |
| Keywords: | Regional economics ; Economic development ; Economic conditions - Ohio |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedcwp:0605&r=ure |
| By: | Carolina Fugazza; Massimo Guidolin; Giovanna Nicodano |
| Abstract: | We calculate optimal portfolio choices for a long-horizon, risk-averse investor who diversifies among European stocks, bonds, real estate, and cash, when excess asset returns are predictable. Simulations are performed for scenarios involving different risk aversion levels, horizons, and statistical models capturing predictability in risk premia. Importantly, under one of the scenarios, the investor takes into account the parameter uncertainty implied by the use of estimated coefficients to characterize predictability. We find that real estate ought to play a significant role in optimal portfolio choices, with weights between 12 and 44 percent. Under plausible assumptions, the welfare costs of either ignoring predictability or restricting portfolio choices to traditional financial assets only are found to be in the order of 150-300 basis points per year. These results are robust to changes in the benchmarks and in the statistical framework. |
| Keywords: | Real estate investment ; Rate of return ; European Union |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:2006-028&r=ure |
| By: | David A. Jaeger (Department of Economics, College of William and Mary) |
| Abstract: | This paper documents where immigrants who enter the U.S. with different types of visas ("green cards") choose to live initially and what determines those location choices. Using population data on immigrants from the Immigration and Naturalization Service from 1971 to 2000, matched to data on state characteristics from the Integrated Public Use Microsamples of the U.S. Census, I estimate conditional logit models with the 48 contiguous U.S. states as the choice set. Like previous researchers, I estimate that immigrants have a higher probability of moving to states where individuals from their region of birth represent a larger share of the state population, with relatives of legal permanent residents responding most to this factor. I also find that, in general, immigrants in all admission categories respond to labor market conditions when choosing where to live, but that these effects were the largest for male employment-based immigrants and, surprisingly, refugees. |
| Keywords: | admission categories, immigrants, settlement patterns, conditional logit |
| JEL: | J61 J18 C35 |
| Date: | 2006–05–23 |
| URL: | http://d.repec.org/n?u=RePEc:cwm:wpaper:29&r=ure |
| By: | Stanley R. Keil (Department of Economics, Ball State University); Lee C. Spector (Department of Economics, Ball State University) |
| Abstract: | Using Alabama county data from 1980 and 1990 censuses and store opening dates, this paper presents an econometric study of the impact of the presence of Wal-Mart's on black-white income and unemployment differentials. It is posited that Wal-Mart changes the competitive nature of the labor market in a way that is beneficial to blacks. After establishing baseline relationships between unemployment and income with respect to demographic and economic variables, the impact of a Wal-Mart is tested by using a dummy variable and a cumulative years variable. Wal-Mart is found to have significantly lowered the relative unemployment rates of blacks in those counties where it is present, but to have had no significant impact on relative incomes after the influences of other social-economic variables are taken into account. |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:bsu:wpaper:200508&r=ure |
| By: | Reinhold Kosfeld; Christian Dreger; Hans-Friedrich Eckey |
| Abstract: | In this paper, the framework of the aggregated Beveridge curve is used to investigate the effectiveness of the job matching process using German regional labour market data. For a fixed matching technology, the Beveridge curve postulates a negative relationship between the unemployment rate and the rate of vacancies, which is efficiently estimated using spatial econometric techniques. The eigenfunction decomposition approach suggested by Griffith (2000, 2003) is the workhorse to identify spatial and non-spatial components. As the significance of the spatial pattern might vary over time, inference is conducted on the base of a spatial SUR model. Shifts of the Beveridge curve will affect its position, and time series estimates on this parameter are obtained. In contrast to findings for the US and the UK, the results provide serious indication that the degree of job mismatch has increased over the last decade. Although the outward shift of the Beveridge curve can be explained by structural factors such as the evolution of long term unemployment, it is also affected by business cycle fluctuations. The role of cyclical factors threatens the stability property of the curve. The relationship might be inappropriate to investigate policy measures directed to improve the mismatch, such as labour market reforms. |
| Keywords: | Beveridge curve, job mismatch, business cycle, long-term unemployment, spatial SUR model |
| JEL: | C21 C23 E24 E32 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp581&r=ure |
| By: | Oyelaran-Oyeyinka, Banji (United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology) |
| Abstract: | Conventional wisdom suggests to the fact that poor countries are unlikely to be host to a “high-technology” sector and doing so within the organization of small and medium enterprises. This paper examines an unusual phenomenon of industrial organization in an African setting; the emergence of a cluster of an information technology hardware cluster in a very late industrializing country, Nigeria. The evolution of the Otigba Computer Hardware Village (OCV) in Lagos, Nigeria has proceeded largely without direct support from the state and indeed within a decidedly hostile institutional and arid infrastructural environment. Yet the cluster has thrived, thus far, with institutional support of a local trade and manufacturing association. The study holds important lessons for late industrializing countries entering into a knowledge intensive sector. |
| Keywords: | learning, innovation system, computer hardware, clusters |
| JEL: | J24 L63 O31 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2006007&r=ure |