nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2007‒12‒15
24 papers chosen by
Steve Ross
University of Connecticut

  1. Technology Shocks and Asset Price Dynamics: The Role of Housing in General Equilibrium By Yoshida, Jiro
  2. Acnowledging for spatial effects in the Portuguese housing markets By G. Carvalho, Pedro; Ribeiro, Alexandra
  4. The Effect of Information and Communication Technologies on Urban Structure By Y Ioannides; Henry G. Overman; Esteban Rossi-Hansberg; Kurt Schmidheiny
  5. Factors influencing travellers. mode choices: case study of Bari. By Elisabetta Venezia
  6. Factors Affecting Residential Property Values in a Small Historic Canadian University Town By Janmaat, John A
  7. Appraising and Brokering in Estonian Housing Market: Different Forms and Norms of Professionalisation By Liis Ojamäe
  8. Does Economic Integration Affect the Structure of Industries? Empirical Evidence from the CEE By d'Artis Kancs
  9. Private Port Pricing and Public Investment in Port and Hinterland Capacity By De Borger B.; Proost S.; Van Dender K.
  10. Commuting, transport tax reform and the labour market: employer-paid parking and the relative efficiency of revenue recycling instruments By De Borger B.; Wuyts B.
  11. Public Universities, Tuition and Competition: A Tiebout Model By Schwager, Robert
  12. Voting Patterns, Party Spending and Space in England and Wales By David Cutts; Don Webber
  13. "Lessons from the Subprime Meltdown " By Joseph Deutsch; Jacques Silber
  14. Primary and Secondary Education in the United States By Peter Tulip; Gregory Wurzburg
  15. Stakeholder Engagement in Land Development Decisions: A Waste of Effort? By Janmaat, Johannus A.
  16. Entrepreneurship and Local Growth - a comparison of the U.S. and Sweden By Borgman, Benny; Braunerhjelm, Pontus
  18. Local Unemployment and the Earnings-Assimilation of Immigrant Men in Sweden: Evidence from Longitudinal Data, 1990-2000 By Akay, Alpaslan; Tezic, Kerem
  19. Global-local linkages, Spillovers and Cultural Clusters: Theoretical and Empirical insights from an exploratory study of Torontos Film Cluster. By Chaminade, Cristina; Vang-Lauridsen, Jan
  20. Specialization of Regions and Universities - the new versus the old By Braunerhjelm, Pontus
  21. EXPLORING THE LINK BETWEEN LOCAL AND GLOBAL KNOWLEDGE SPILLOVERS By Barrios, Salvador; Bertinelli, Luisito; Heinen, Andreas
  22. History and Industry Location: Evidence from German Airports By Stephen Redding; Daniel M. Sturm; Nikolaus Wolf
  23. The Effects of Tax Competition when Politicians Create Rents to Buy Political Support By Wolfgang Eggert; Peter Birch Sørensen
  24. The Employment Impact of Business Incentive Policies: a Comparative Evaluation of Different Forms of Assistance. By Bondonio, Daniele

  1. By: Yoshida, Jiro
    Abstract: A general equilibrium model, that incorporates endogenous production and local housing markets, is developed in order to explain the price relationship among human capital, housing, and stocks, and to uncover the role of housing in asset pricing. Housing serves as an asset as well as a durable consumption good. It is shown that housing market conditions critically affect asset price correlations and risk premia. The first result is that the covariation of housing prices and stock prices can be negative if land supply is elastic. Data from OECD countries roughly support the model's predictions on the relationship among land supply elasticity, asset price correlations, and households' equity holdings. The second result is that housing rent growth serves as a risk factor in the pricing kernel. The risk premium becomes higher as land supply becomes inelastic and as housing services become more complementary with other goods. Finally, the housing component in the pricing kernel is shown to mitigate the equity premium puzzle and the risk-free rate puzzle.
    Keywords: General equilibrium; asset pricing; housing; the equity premium puzzle
    JEL: R30 G12 E32 R20
    Date: 2007–12–13
  2. By: G. Carvalho, Pedro; Ribeiro, Alexandra
    Abstract: The aim of this paper is to revisit a former paper on the Portuguese housing market (1995), acknowledging for spatial effects in order to interpret housing market changes over 1995-2001. The paper will include a first section devoted to explain the differences between the OLS regression analysis and spatial econometrics, explaining the theoretical background used to develop a spatial lag model with the same database; the second section will show the misspecification problems we found when we ran the same model for after 1995-1998 databases; the third section is devoted to describe new housing literature findings relating housing market evolution with the macroeconomic cycles in Portugal; as a consequence the fourth section will include the method we developed with recent census data, to explain the evolution of the country macroeconomic cycles and the agents’ new behavioural attitudes concerning housing; finally and using spatial analysis we can understand the main changes occurred over the 1995-2001 period. The evaluation of the results contradicts some mainstream scholar and political knowledge to explain spatial inequalities between coast and interior municipalities. Complexity issues seem to be present when we consider the way different market agents make decisions on housing markets, looking this good either as a place to live or an alternative investment asset. In the concluding remarks we raise some new interesting questions for further research.
    JEL: C51 E32 R21 C21 R11 D01
    Date: 2007–12–01
  3. By: Somik V. Lall; Hyoung Gun Wang; Daniel Da Mata
    Date: 2007
  4. By: Y Ioannides; Henry G. Overman; Esteban Rossi-Hansberg; Kurt Schmidheiny
    Abstract: The geographic concentration of economic activity occurs because transport costs for goods, peopleand ideas give individuals and organisations incentives to locate close to each other. Historically, allof these costs have been falling. Such changes could lead us to predict the death of distance. Thispaper is concerned with one aspect of this prediction: the impact that less costly communication andtransmission of information might have on cities and the urban structure. We develop a model whichsuggests that improvements in ICT will increase the dispersion of economic activity across citiesmaking city sizes more uniform. We test this prediction using cross country data and find empiricalsupport for this conclusion.
    Keywords: ICT, urban structure, cross country data
    JEL: O3 R1
    Date: 2007–07
  5. By: Elisabetta Venezia (University of Bari)
    Abstract: At present, the structural reform of the Italian local public transport is aimed at a potential re-launching of the sector which should make the engaged resources more productive, and, at the same time, at the achievement of more general objectives linked to sustainable mobility. In this light, on the one side, in this paper the case of Bari will be examined in depth as an example of in house assignment of transport service. On the other side, this paper presents some empirical results stemming from the estimation of a random utility model. The main findings are that notwithstanding the existence of a mediocre transport urban service, people would be in favour of using buses in the future. But this shift towards public transport needs to be encouraged through appropriate policies which could culminate in the achievement of a greater sustainability, otherwise we will most certainly have a difficult future characterised by higher car ownership and car usage.
    Keywords: urban transport, random utility model, sustainability
    Date: 2007–10
  6. By: Janmaat, John A
    Abstract: The town of Wolfville, Nova Scotia is a small historic community, economically dominated by Acadia University. It is located on the north slope of a ridge, affording views of the Minas Basin, at the eastern end of the Bay of Fundy. The upper boundary of the town is a major provincial highway. A set of sound level observations was used to generate average and peak sound level profiles for the town. Average and peak sound level, as well as presence of a view were included in a hedonic regression of property values. View and average sound level were not statistically related to home price. However, peak sound level is priced, with a one decibel increase reducing the average house price by about two percent. Beyond conventional variables such as age and living space, the zoning classification of the property was found to be highly significant, with homes zoned for single family residential only commanding the highest price. Given the high population of student tenants in Wolfville, tenants unlikely to live in areas zoned single family residential, these results suggests that rental externalities - either due to student tenants or landlord practices - are having a strong negative impact on property values.
    Keywords: Hedonic regression; noise pollution; zoning; segregation.
    JEL: R52 R31 R21
    Date: 2007–01–10
  7. By: Liis Ojamäe (Tallinn University Department of Sociology)
    Abstract: Forms and dynamics of institutionalisation that structure the market conduct and actors are essential for understanding the development of a young emerging market. In the paper, professionalisation as a process of occupational institutionalisation and professionalism as a value system are discussed on the conceptual and empirical level, conceiving them primarily as means to create social order in the market. The article focuses on respective processes in the Estonian housing market, comparing two fields of conduct: brokering and appraising of residential property. On the basis of qualitative analysis, the reasons why appraisers can be considered as professionally institutionalised in housing market while the field of brokering lacks certain substantial elements enabling to control the field successfully are discussed. However, on the level of everyday social interaction both the brokers and appraisers are socially constructing and maintaining the category of professionalism as a symbolic device, and as an important part of identity of the actors.
    Keywords: housing market, social order, residential property appraising, residential property brokering, professionalisation, professionalism
    JEL: D23 R31 Z13
    Date: 2007
  8. By: d'Artis Kancs
    Abstract: In this paper we study how European integration would a¤ect the industry location and sectoral specialisation of local economies in the CEE accession countries. The theoretical framework of our study is based on the new eco- nomic geography, which allows us to predict not only the post-integration spe- cialisation patterns, but captures also other general equilibrium e¤ects, such as transition to market economy, which turn out to be highly significant in CEE. Our empirical results suggest that the CEE specialisation pattern would be distinct from the old EU member states. First, the EU integration would reduce regional specialisation in CEE. Second, the bell-shaped specialisation pattern predicted by the underlying theoretical framework is inverse in CEE. We could explain a large portion of these di¤erences by CEE-specific processes, such as integration of the CMEA. These distortions are higher in those regions, which were more integrated in the CMEA. Our simulation results also suggest a convergence in the specialisation across the CEE regions.
    Keywords: Economic geography, transport costs, European integration, monop- olistic competition.
    JEL: F15 R12 R13
    Date: 2007
  9. By: De Borger B.; Proost S.; Van Dender K.
    Abstract: We study duopolistic pricing by ports that are congestible, share the same overseas customers and have each a downstream, congestible transport network to a common hinterland. In the central set-up, local (country) governments care about local welfare only and decide on the capacity of the port and of the hinterland network. We obtain the following results. First, profit-maximizing ports internalize hinterland congestion in as far as it affects their customers. Second, investment in port capacity reduces prices and congestion at both ports, but increases hinterland congestion in the region where the port investment is made. Investment in a port’s hinterland is likely to lead to more port congestion and higher prices for port use, and to less congestion and a lower price at the competing port. Third, the induced increase in hinterland congestion is a substantial cost of port investment that strongly reduces the direct benefits of extra port activities. Fourth, imposing congestion tolls on the hinterland road network raises both port and hinterland capacity investments. We illustrate all results numerically and discuss policy implications.
    Date: 2007–10
  10. By: De Borger B.; Wuyts B.
    Abstract: In this paper we study the welfare effects of a budgetary neutral increase in taxes on car commuters in a model that takes into account the presence of employer-paid parking at the workplace. Results include the following. First, we find that the presence of employer-paid parking substantially increases the welfare effect of such a tax reform, independent of the use of the revenues. The intuition is that congestion taxes not only correct congestion externalities, they also reduce the inefficiency caused by employer-paid parking. Second, different congestion effects of alternative recycling instruments and the presence of employer-paid parking jointly imply that recycling the tax revenues via higher public transport subsidies may yield much more favourable welfare effects than previously believed. It can easily outperform recycling the tax revenues via lower labour taxes. Third, cashing out parking costs to public transport users is found to generate substantial positive welfare effects. The theoretical predictions are illustrated using a numerical model calibrated on Belgian data.
    Date: 2007–10
  11. By: Schwager, Robert
    Abstract: A simple Tiebout model is presented where states provide university education to both immobile and mobile students. State governments choose the quality of public universities by trading off the value of education for the local immobile student population and the costs, net of tuition revenues, of running the university. The quality of education and the assignment of students to universities in an efficient allocation are characterised. It is shown that decentralised decisions result in efficient choices if states are allowed to choose tuition levels freely. If tuition is capped, ine±ciently low qualities are likely to arise.
    Keywords: higher education, migration, fiscal externality, club good, tuition
    JEL: H75 H77 I28
    Date: 2007
  12. By: David Cutts (University of Manchester); Don Webber (University of the West of England)
    Abstract: There is a growing body of literature which suggests that voting patterns are not independent from space yet few empirical investigations exist which take explicit account of space. This article examines the determinants of voting patterns across constituencies in England and Wales using spatial econometric methods. The results suggest that while socioeconomic factors are key determinants of party vote shares in constituencies, there is strong spatial autocorrelation in voting patterns. We find that each major political party is influenced by space to different extents with the Liberal Democrats visibly exploiting spatial autocorrelation to increase their vote shares.
    Keywords: 2005 General Election, voting patterns, political party spending; spatial regression
    JEL: R59 C21
    Date: 2007–08
  13. By: Joseph Deutsch; Jacques Silber
    Abstract: This paper uses Hyman P. Minsky's approach to analyze the current international financial crisis, which was initiated by problems in the U.S. real estate market. In a 1987 manuscript, Minsky had already recognized the importance of the trend toward securitization of home mortgages. This paper identifies the causes and consequences of the financial innovations that created the real estate boom and bust. It examines the role played by each of the key players—including brokers, appraisers, borrowers, securitizers, insurers, and regulators—in creating the crisis. Finally, it proposes short-run solutions to the current crisis, as well as longer-run policy to prevent "it" (a debt deflation) from happening again.
    Date: 2007–12
  14. By: Peter Tulip; Gregory Wurzburg
    Abstract: The average educational attainment of US students is weak by international comparison. For example, mean results of PISA test scores are below the OECD average. This is despite substantial resources devoted to the schooling system. One partial explanation for this is that academic standards, curriculum and examinations are not sufficiently challenging in most US states. In 2001, Congress enacted the No Child Left Behind Act (NCLB) to raise achievement levels, especially of certain groups that perform badly. The Act requires states to establish clear content standards as to what students should know, to regularly assess performance and to set thresholds for adequate yearly progress; it also requires schools where students are failing to meet such thresholds to improve or close, while enhancing options for parents of children in such schools to place their children elsewhere. The law appears to be well conceived, addressing key problems in a sensible manner. Preliminary indications are consistent with it raising school performance and closing achievement gaps. The NCLB legislation should therefore be reauthorised. Moreover, the NCLB framework of standards, assessment and accountability should be extended through upper secondary education. That said, there are a number of areas in which improvements could be made. Though the federal government cannot set standards, it could strengthen incentives for more states to make their standards more challenging. As well, the federal government should help states and districts to better test student achievement and assess progress. <P>L'enseignement primaire et secondaire aux États-Unis <BR>Le niveau d’instruction moyen des élèves aux États-Unis est faible par rapport à ce qu’il est dans d’autres pays. Les résultats moyens au test du PISA, par exemple, sont inférieurs à la moyenne de l’OCDE en dépit des ressources considérables consacrées au système scolaire. L’une des explications possibles est que les États pour la plupart ne se montrent pas assez ambitieux, qu’il s’agisse du niveau d’acquis exigé, des programmes d’enseignement ou des examens. En 2001, le Congrès a voté la loi baptisée No Child Left Behind (NCLB) afin de relever le niveau des acquis, en particulier parmi certains groupes de population dont les performances laissent à désirer. Cette loi exige des États qu’ils définissent clairement les connaissances que les élèves doivent acquérir, qu’ils évaluent les performances à intervalles réguliers et qu’ils fixent de façon appropriée des objectifs de progression annuelle ; elle exige par ailleurs des établissements scolaires dont les élèves n’atteignent pas ces objectifs, qu’ils s’améliorent ou ferment, et parallèlement elle donne aux parents dont les enfants fréquentent ces établissements plus de possibilités pour les scolariser ailleurs. Cette loi est, semble-t-il, bien conçue et traite raisonnablement des problèmes essentiels. D’après les premiers constats, elle a permis d’améliorer les performances des établissements scolaires et d’atténuer les écarts de résultats. Cette législation devrait donc être reconduite. De plus, ses dispositions concernant le niveau d’exigence, l’évaluation et l’obligation de rendre compte devraient être appliquées au deuxième cycle de l’enseignement secondaire. Cela dit, des améliorations pourraient être apportées dans un certain nombre de domaines. S’il est vrai que le gouvernement fédéral ne peut fixer de normes en la matière, il pourrait renforcer les mesures incitatives afin qu’un plus grand nombre d’États revoient à la hausse leur niveau d'exigence. De même, il pourrait aider les États et les districts scolaires à améliorer l’évaluation des acquis des élèves et des progrès accomplis.
    Keywords: human capital, education, capital humain, United States, États-Unis, éducation, secondary education, éducation secondaire, primary education, éducation primaire
    JEL: H52 I22
    Date: 2007–12–06
  15. By: Janmaat, Johannus A.
    Abstract: Abstract Currently, management devolution and engagement of local stakeholders - expected to have better information - is seen as key to effective environmental management. Often, the absence of clear property rights and/or supporting market institutions leaves management decisions to a political process. Where undeveloped land provides a public good, when to halt further development is modelled as a repeated lobbying contest between industry and households. Lobbying effort affects the continuation probability. Depending on how stakeholders are engaged, there may be little impact on final outcomes, or a lobbying war can be stimulated. Overall welfare is seldom enhanced.
    Keywords: Stakeholder engagement; lobbying contest; public good; water conservation; land development
    JEL: Q24 R52 R14 Q25
    Date: 2007–12–06
  16. By: Borgman, Benny (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Braunerhjelm, Pontus (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: The U.S. is traditionally viewed as an economy driven by entrepreneurs, whereas the Swedish model is associated with high welfare ambitions and less focus on entrepreneurial activities. This paper seeks to empirically investigate whether the connection between entrepreneurship and growth at the regional level differs between the U.S. and Sweden. By regressing annual entrepreneurship on regional employment growth (and controlling for other conceivable variables impacting employment growth) entrepreneurship is shown to be positively and significantly associated with regional growth in both countries in the 1990s. Still, the result is more robust for the U.S. Other important variables for regional growth is business density and, in the case of the U.S., educational levels and internal scale economies.
    Keywords: Entrepreneurship; Knowledge spillovers; Regional growth
    JEL: M13 O57 R11
    Date: 2007–12–11
  17. By: Wilhelmsson, Mats (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: Accumulation of human capital is essential for economic growth. An important question is how knowledge spillover into innovations and production. One way of knowledge diffusion is within innovation networks. We investigate innovative networks in patent data in Sweden from 1994-2001. We define research networks with the help of direct and indirect ties among inventors. The main result clearly indicates that those researchers that collaborating, in innovation networks, improves the efficiency of the innovation process by getting more patents applications approved. The odds getting a patent application approved are in the range 1.1 to 1.5 times better if an application is a result from research collaboration. Moreover, the result suggests that collaboration is more important in the IT sector than in the mechanical engineering sector. Finally, the empirical outcomes indicate that networking is more important in less dense areas compared to the denser labor markets. Thus, networks in such areas might be a substitute for agglomeration advantages.
    Keywords: Innovation network analysis; patents; success and failure in innovation
    JEL: N34 O31 R11
    Date: 2007–12–11
  18. By: Akay, Alpaslan (Department of Economics, School of Business, Economics and Law, Göteborg University); Tezic, Kerem (SLI, Swedish Institute for Food and Agricultural Economics)
    Abstract: The earnings-assimilation of first-generation immigrant men in Sweden was analyzed using eleven waves of panel-data, 1990-2000. Employment-probabilities and earnings were estimated simultaneously in a random-effects model, using a quasifixed effects to control for both individual effects and panel-selectivity due to missing earnings-information. Assuming equal-period effects produced bias which could distort the findings. To correct the bias, local unemployment-rates were used to proxy for changing economy-wide conditions. Labour-market outcomes differed consider- ably across immigrant arrival cohorts, region and country of origin, and educational levels.<p>
    Keywords: Immigrants; earnings-assimilation; unbalanced panel; selection-bias; random-effects; Mundlak's formulation; local unemployment-rates
    JEL: C33 J15 J61
    Date: 2007–12–05
  19. By: Chaminade, Cristina; Vang-Lauridsen, Jan
    Abstract: This paper illustrates the importance of global-local linkages in cultural cluster-studies by discussing the impact of Hollywoods runway productions on the indigenous film cluster in Toronto, Canada. While global-local linkages are at the forefront of the current debate in cluster studies, the discussion has not yet permeated the research on cultural clusters. The paper identifies the limitations to the dominant models, inserts global-local linkages in the literature and applies it empirically. The inclusion of the global linkages in the analysis of the Toronto film cluster provides a new insight into the current development barriers faced by the indigenous film industry. The paper suggests how Hollywoods offshoring and outsourcing activities to Toronto can be transformed into positive spillovers for the indigenous film cluster.
    JEL: O31 O32 O33 O34 O38 N5 O47 R58
    Date: 2007
  20. By: Braunerhjelm, Pontus (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: This paper analyzes whether there is a correspondence between a university’s research spe-cialization and industrial specialization in the region hosting the university, and to what extent universities influences regional productivity. Moreover, the analysis seeks to answer if a dif-ference can be detected between the influences of old and new universities on regional per-formance. To achieve this end we utilize a unique dataset on spatially disaggregated data for Sweden in the period 1975-1999. A two-step Heckman regression analysis is implemented to examine whether the universities research specialization match regional specialization in pro-duction as compared to the average region. The results suggest a correspondence in speciali-zation, as well as positive productivity effects. However, there are also considerable differ-ences across regions, albeit primarily unrelated to the age of the universities.
    Keywords: Universities; norms; regional specialization; policies
    JEL: J24 O31 O57
    Date: 2007–12–11
  21. By: Barrios, Salvador; Bertinelli, Luisito; Heinen, Andreas
    Abstract: We measure the effect of R&D spillovers on plant productivity by taking account of (i) the national origin of the spillovers, (ii) the mechanism through which spillovers may flow (FDI and/or imports), (iii) the sectoral scope of spillovers, as well as (iv) their geographic scope, in a single analytical framework. Our analysis is based on an exhaustive database on Irish manufacturing plants covering the period 1986-1994. The results show that while domestic plants benefit from local R&D spillovers, these spillovers are spatially bounded. Domestic plants are also able to tap into the global R&D pool, but only via the presence of multinational plants located near them. In contrast, there is no evidence that foreign affiliates located in Ireland are recipients of local R&D spillovers. Foreign affiliates do, however, gain from the size of the R&D stock in their origin country.
    Keywords: R&D; knwoledge spillovers; multinationals; international trade; Ireland
    JEL: O30 F14 R12 L60
    Date: 2007–08–02
  22. By: Stephen Redding; Daniel M. Sturm; Nikolaus Wolf
    Abstract: A central prediction of a large class of theoretical models is that industry location is not necessarilyuniquely determined by fundamentals. In these models, historical accident or expectations determinewhich of several steady-state locations is selected. Despite the theoretical prominence of these ideas,there is surprisingly little systematic evidence on their empirical relevance. This paper exploits thecombination of the division of Germany after the Second World War and the reunification of East andWest Germany as an exogenous shock to industry location. We focus on a particular economicactivity and establish that division caused a shift of Germany's air hub from Berlin to Frankfurt andthere is no evidence of a return of the air hub to Berlin after reunification. We develop a body ofevidence that the relocation of the air hub is not driven by a change in economic fundamentals but isinstead a shift between multiple steady-states.
    Keywords: Industry Location, Economic Geography, German Division, German Reunification
    JEL: F14 F15 N74
    Date: 2007–07
  23. By: Wolfgang Eggert (University of Paderborn); Peter Birch Sørensen (Department of Economics, University of Copenhagen)
    Abstract: We set up a probabilistic voting model to explore the hypothesis that tax competition improves public sector efficiency and social welfare. In the absence of tax base mobility, distortions in the political process induce vote-maximising politicians to create rents to public sector employees. Allowing tax base mobility may be welfare-enhancing up to a point, because the ensuing tax competition will reduce rents. However, if tax competition is carried too far, it will reduce welfare by causing an underprovision of public goods. Starting from an equilibrium where tax competition has eliminated all rents, a coordinated rise in capital taxation will always be welfare-improving. For plausible parameter values it will even be welfare-enhancing to carry tax coordination beyond the point where rents to public sector workers start to emerge.
    Keywords: tax competition; rent seeking; probabilistic voting
    JEL: D72 D73 H87
    Date: 2007–12
  24. By: Bondonio, Daniele
    Abstract: Business incentive policies, over the past decades, have become popular tools to boost local economic development, employment and firm innovation outcomes, both in Italy and in the EU. Despite the increasing importance of these policies, as of today, a small body of empirical evidence is available on their actual employment impact, retrieved against a credible counterfactual estimate. This paper exploits a firm-level data base of unusual richness, formed by merging longitudinal employment and firm demographic information with the firm-level archives of all incentive payments performed by each of the many different (national, regional and EU co-sponsored) business incentive programs assisting firms located in a large Northern Italian region. The analysis developed in the paper yield the employment impacts of the policies under plausible identification assumptions, disentangling the employment impacts of different values of both the economic intensities of the program assistance and different forms of assistance (the latter distinguishing between capital grants and below-market interest rate/revolving loans).
    Date: 2007–11

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