nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2008‒05‒31
25 papers chosen by
Steve Ross
University of Connecticut

  1. Who Leaves? Teacher Attrition and Student Achievement By Donald Boyd; Pam Grossman; Hamilton Lankford; Susanna Loeb; James Wyckoff
  2. House prices and the stance of monetary policy. By Marek Jaroci?ski; Frank Smets
  3. Reforming Housing and Regional Policies in Korea By Randall Jones; Tadashi Yokoyama
  4. Spatial econometric analysis of the determinants of location of manufacturing industry and market services sectors in Poland By Tomasz Brodzicki; Dorota Ciolek
  5. Does Speed Signal Ability? The Impact of Grade Repetitions on Employment and Wages By Brodaty, Thomas; Gary-Bobo, Robert J.; Prieto, Ana
  6. From Baghdad to London: The Dynamics of Urban Growth in Europe and the Arab World, 800-1800 By Bosker, Maarten; Buringh, Eltjo; van Zanden, Jan Luiten
  7. Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations By Halfdanarson, Benedikt; Heuermann, Daniel F.; Suedekum, Jens
  8. Local Innovation Systems and Benchmarking By Uwe Cantner
  9. Innovator networks and regional knowledge base By Uwe Cantner; Andreas Meder; Anne ter Wal
  10. Market Thinness, List Price Revisions and Time to Sell: Evidence from a large-scale housing dataset By Marco Hoeberichts; Maarten van Rooij; Arjen Siegmann
  11. Governing the City: Institutional Innovation and its Consequences By Diane Payne; Peter Stafford
  12. Taking the Easy Way Out: How the GED Testing Program Induces Students to Drop Out By Heckman, James J.; LaFontaine, Paul A.; Rodríguez, Pedro L.
  13. Local privatization, intermunicipal cooperation,transaction costs and political interests: Evidence from Spain By Xavier Fageda; Germa Bel
  14. Understanding Variety in Public Agencies By Colin Scott
  16. Improving Education Outcomes in Germany By David Carey
  17. Innovators and the Diversity of Innovation Systems By Uwe Cantner; Andreas Meder
  18. Interaction Structures in Local Innovation Systems By Uwe Cantner; Holger Graf
  19. A Capacitated facility location problem with constrained backlogging probabilities By Francisco Silva; Daniel Serra
  20. Locating Emergency Services with Different Priorities: The Priority Queuing Covering Location Problem By Francisco Silva; Daniel Serra
  21. Assessing the Federal Deduction for State and Local Tax Payments By Gilbert E. Metcalf
  22. The impact of network structure on knowledge transfer: An application of social network analysis in the context of regional innovation networks By Michael Fritsch; Martina Kauffeld-Monz
  23. Optimal Grading By Robertas Zubrickas
  24. Does Teacher Quality Affect Student Performance? Evidence from an Italian University By Maria, De Paola
  25. Is Regional Science a Scientific Discipline? Answers from a Citation Based Social Network Analysis By Gunther Maier; Alexander Kaufmann; Michael Vyborny

  1. By: Donald Boyd; Pam Grossman; Hamilton Lankford; Susanna Loeb; James Wyckoff
    Abstract: Almost a quarter of entering public-school teachers leave teaching within their first three years. High attrition would be particularly problematic if those leaving were the more able teachers. The goal of this paper is estimate the extent to which there is differential attrition based on teachers' value-added to student achievement. Using data for New York City schools from 2000–2005, we find that first-year teachers whom we identify as less effective at improving student test scores have higher attrition rates than do more effective teachers in both low-achieving and high-achieving schools. The first-year differences are meaningful in size; however, the pattern is not consistent for teachers in their second and third years. For teachers leaving low-performing schools, the more effective transfers tend to move to higher achieving schools, while less effective transfers stay in lower-performing schools, likely exacerbating the differences across students in the opportunities they have to learn.
    JEL: I21 J24
    Date: 2008–05
  2. By: Marek Jaroci?ski (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.); Frank Smets (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.)
    Abstract: This paper estimates a Bayesian VAR for the US economy which includes a housing sector and addresses the following questions. Can developments in the housing sector be explained on the basis of developments in real and nominal GDP and interest rates? What are the effects of housing demand shocks on the economy? How does monetary policy affect the housing market? What are the implications of house price developments for the stance of monetary policy? Regarding the latter question, we implement a version of a Monetary Conditions Index (MCI) due to Céspedes et al. (2006). JEL Classification: E3-E4.
    Keywords: House prices, monetary conditions index, Bayesian VAR, monetary policy shock, conditional forecast.
    Date: 2008–04
  3. By: Randall Jones; Tadashi Yokoyama
    Abstract: The government has introduced five policy packages since August 2005 to stabilise house prices, mainly due to concerns about possible spill-overs from the capital region to other parts of the country, even though the increase on a nation-wide basis has been modest compared to other OECD countries. The planned expansion in housing construction in the capital region will reduce upward pressure on house prices. However, other policies aimed at reducing “speculative” demand and lowering house prices, such as the price ceiling on new houses, are likely to constrain supply and result in stronger price pressures in the longer term. The government should shift its focus from short-term price fluctuations in house prices to creating an efficient housing market, relying more on private-sector supply. Concern about increasing concentration in the capital region should be dealt with through economic instruments to address externalities, such as pollution and congestion, while phasing out the restrictions on construction in the capital region. <P>Réformer la politique du logement et la politique régionale en Corée <BR>Le gouvernement a mis en place depuis août 2005 cinq séries de mesures destinées à stabiliser les prix des logements, même si la hausse de l’immobilier a été modeste en Corée par rapport à d’autres pays de l’OCDE. Le développement prévu de la construction de logements dans la région de la capitale atténuera les pressions à la hausse sur les prix immobiliers. Mais d’autres mesures visant à réduire la demande « spéculative » et à faire baisser les prix des logements, notamment le plafonnement des prix des logements neufs, sont de nature à limiter l’offre et à accentuer les pressions sur les prix à long terme. Au lieu d’essayer avant tout de remédier aux fluctuations à court terme des prix immobiliers, le gouvernement devrait s’efforcer de créer un marché du logement qui soit efficient, tout en s’appuyant davantage sur l’offre privée. Face au problème de la concentration de plus en plus forte dans la région de la capitale, il faudrait utiliser des instruments économiques pour remédier aux externalités, en particulier la pollution et les encombrements, tout en mettant fin progressivement aux restrictions à la construction dans la région de la capitale.
    Keywords: Korea, Corée, fiscal decentralisation, house prices, property tax, impôt immobilier, regional policy, politique régionale, housing market, marché des logements
    JEL: R11 R21 R31
    Date: 2008–05–16
  4. By: Tomasz Brodzicki (Faculty of Economics, University of Gdansk); Dorota Ciolek (Faculty of Management, Department of Econometrics, University of Gdansk)
    Abstract: The paper comprises econometric analysis of location determinants of manufacturing industry and market services in Poland. A wide range of location determinants are analyzed taking into account exogenous and semi-endogenous region-specific aspects, sector-specific aspects (such as labor and capital intensity, economies of scale, intensity of forward and backward linkages, wage rates, knowledge intensity and technology level) as well as interactions between sector-specific and region-specific aspects. The analysis is carried out for an unbalanced data panel of manufacturing industry and market services sectors at the level of 3-digit NACE at the NUTS 2 level (16 voivodeships). The data cover the period from 1995 to 2006. We perform the estimation using Restricted Maximum Likelihood method (REML). The results point to positive spatial autocorrelation both for manufacturing industry and market services sectors. Sector-specific and region-specific effects as proxied by sectoral dummies are important.
    Keywords: location, industrial manufacturing, market services, Poland, spatial panel, Restricted Maximum Likelihood method
    JEL: R12 R15 C23 C31
    Date: 2008–05
  5. By: Brodaty, Thomas; Gary-Bobo, Robert J.; Prieto, Ana
    Abstract: We propose a new test for the presence of job-market signalling in the sense of Spence (1973), based on an equation in which log-wages are explained by two endogenous variables: the student's degree and the student's time to degree, not simply by years of education. Log-wages are regressed on a measure of education, which is a position on a scale of certificates and degrees, and a measure of the student delay, defined as the difference between the individual's school-leaving age and the average school-leaving age of students holding the same certificate or degree. We use past school-opening instruments, and distance-to-the-nearest-college, also measured in the past, when students were entering grade 6, to identify the parameters. We find a robust, significant and negative impact of the delay variable on wages, averaged over the first five years of career. A year of delay causes a 9% decrease of the student's wage. The only reasonable explanation for this effect is the fact that longer delays signal unobserved characteristics with a negative productivity value. We finally estimate a nonlinear model of education choices and cannot reject the assumption that the data is generated by a job-market signalling equilibrium.
    Keywords: grade repetitions; Returns to education; Signalling; time to degree; wages
    JEL: I2 J3
    Date: 2008–05
  6. By: Bosker, Maarten; Buringh, Eltjo; van Zanden, Jan Luiten
    Abstract: On the basis of a large (new) dataset of cities in Europe, North Africa and the Middle East in the millennium between 800 and 1800, we try to provide an answer to the question why, during this millennium, the urban center of gravity moved from Iraq (or more generally the Arab world) to Western Europe and to the shores of the Atlantic (during the 17th and 18th century) in particular. We study the characteristics of the European and Arab urban systems involved, amongst others focusing on the interaction between cities, and explain why one system was much more dynamic in the long run than the other. Also we assess the importance of various geographical, religious and institutional factors as the driving forces of urban expansion. Overall, we provide a better understanding of the dynamics of urban growth in the centuries leading up to the Industrial Revolution and an answer to the question why London, an economic backwater in 800, was able to overtake Baghdad, in 800 the thriving capital of the Abbasid caliphate, as the largest city in this part of the world.
    Keywords: long term urban development; Arab world; economic history; Europe
    JEL: N10 N90 R11
    Date: 2008–05
  7. By: Halfdanarson, Benedikt (Statistics Iceland); Heuermann, Daniel F. (University of Trier); Suedekum, Jens (University of Duisburg-Essen)
    Abstract: In this paper we survey the recent developments in two empirical literatures at the crossroads of labor and urban economics: Studies about localized human capital externalities (HCE) and about the urban wage premium (UWP). After surveying the methods and main results of each of these two literatures separately, we highlight several interrelations between them. In particular we ask if HCE can be interpreted as one fundamental cause of the UWP, and we discuss if one literature can conceptually learn from the methods that are used by the other one.
    Keywords: local labor markets, agglomeration, human capital externalities, urban wage premium
    JEL: J31 J61 R23 R12
    Date: 2008–05
  8. By: Uwe Cantner (Friedrich-Schiller University, Jena, Economics Department)
    Abstract: This paper reviews approaches used for evaluating the performance of local or regional innovation systems. This evaluation is performed by a benchmarking approach in which a frontier production function can be determined, based on a knowledge production function relating innovation inputs and innovation outputs. In analyses on the regional level and especially when acknowledging regional innovation systems those approaches have to take into account cooperative invention and innovation - the core of the innovation system approach. To make these interactive effects visible, a method is suggested to identify the relative regional impact on cooperative innovative activities.
    Keywords: benchmarking, regional innovation systems, frontier function approaches
    JEL: O3 R11 C2 C6
    Date: 2008–05–13
  9. By: Uwe Cantner (Friedrich-Schiller University, Jena, Economics Department); Andreas Meder (Friedrich-Schiller University, Jena, Economics Department); Anne ter Wal (Faculty of Geosciences, Utrecht University)
    Abstract: This paper concerns the regional innovation system approach. It deals with the characteristics of three regional systems, Northern Hesse, Alpes-Maritime and Jena, and focusses on each regional network of innovators. In this context the importance of the size and homogeneity of a regional pool of knowledge spillovers for those networks is analyzed. We ï¬nd evidence that an increasing regional knowledge base in combination with an increas- ing homogeneity of this knowledge base enhances the knowledge flows and the incentives for actors to interact with each other.
    Keywords: cooperation, innovator networks, complementarity of knowledge, interaction structure
    JEL: O31 P25 Q55
    Date: 2008–05–13
  10. By: Marco Hoeberichts; Maarten van Rooij; Arjen Siegmann
    Abstract: This paper uses a large dataset, covering more than 70% of the Dutch housing market, to analyze the relationship between market thinness, price setting behavior and time to sell. Our findings confirm the typical result that overpricing increases the time on market. In addition, we find evidence of quicker list price reductions suggesting that overpricing is part of a strategy to search for the opportunity of high revenues and to learn about the market. Moreover, we are able to confirm the theory put forward by Lazear (1986) on the relation between atypical goods and the speed of price adjustments. Sellers of atypical houses are more uncertain about the price buyers want to pay and take time to learn about the market, thereby increasing the expected time on market and the time to price revisions. Market liquidity has a positive, i.e. shortening, effect on the time to sale and leads to quicker price revisions due to the increased opportunities for learning.
    Keywords: market liquidity; pricing strategies; marketing time; overpricing; housing
    JEL: R31 D83 D12 C41 E30
    Date: 2008–05
  11. By: Diane Payne (School of Sociology, University College Dublin); Peter Stafford (Research Officer, Construction Industry Federation Formerly Researcher, Governance Research Programme)
    Date: 2007–11–12
  12. By: Heckman, James J. (University of Chicago); LaFontaine, Paul A. (American Bar Association); Rodríguez, Pedro L. (Harris School, University of Chicago)
    Abstract: We exploit an exogenous increase in General Educational Development (GED) testing requirements to determine whether raising the difficulty of the test causes students to finish high school rather than drop out and GED certify. We find that a six point decrease in GED pass rates induces a 1.3 point decline in overall dropout rates. The effect size is also much larger for older students and minorities. Finally, a natural experiment based on the late introduction of the GED in California reveals, that adopting the program increased the dropout rate by 3 points more relative to other states during the mid-1970s.
    Keywords: GED, dropout
    JEL: C61
    Date: 2008–05
  13. By: Xavier Fageda (Faculty of Economics, University of Barcelona); Germa Bel (Faculty of Economics, University of Barcelona)
    Abstract: Several empirical studies have analyzed the factors that influence local privatization. Variables related to fiscal stress, cost reduction, political processes and ideological attitudes are the most common explanatory variables used in these studies. In this paper, we add to this literature by examining the influence of transaction costs and political factors on local governments’ choices through new variables. In addition to this, we consider the role of additional aspects, such as intermunicipal cooperation as a potential alternative to privatization in order to exploit scale economies or scope economies. We consider two relevant services: solid waste collection and water distribution. Results from our estimates show that privatization (that is, contracting out to a private firm) is less common for water distribution than for solid waste collection. Higher transaction costs in water distribution are consistent with this finding. Furthermore, we find that municipalities with a conservative ruling party privatize more often regardless of the ideological orientation of the constituency. This shows that those political interests able to influence local elections are more important in determining the form of delivery than is the basic ideological stance of the constituency. Finally, we find that intermunicipal cooperation is an alternative to local privatization.
    Keywords: Privatization, contracting-out, local governments
    JEL: L33 R51 H72
    Date: 2008–04
  14. By: Colin Scott (Professor of EU Regulation and Governance, School of Law, University College Dublin)
    Date: 2008–02–04
  15. By: Jaime Alonso-Carrera; Maria Jesus Freire-Seren; Baltasar Manzano
    Abstract: This paper proposes a multi-regional, general equilibrium model with capital accumulation to analyze the economic impact of the spatial distribution of public capital formation. This model is calibrated and solved by using data for the Spanish economy in order to simulate some comparative dynamic exercises of fiscal policy changes. These analyses illustrate the role that public investment plays in generating the existing imbalances in regional development. This is done by computing the spillover effects and the opportunity costs of regional distribution of public investment. Finally, two rankings of regional priorities in public investment can be derived: one based on the criterion of reducing regional disparities, and other based of an efficiency criterion.
    JEL: E62 H20 O40
    Date: 2008–05
  16. By: David Carey
    Abstract: Improving education outcomes is important for Germany’s long-term economic performance and social cohesion. While student achievement is above the OECD average in science and at the OECD average in reading and mathematics according to the 2006 OECD PISA study, weaker students tend to do badly by international comparison and socio-economic and/or immigrant backgrounds have a large impact. Another problem is that the proportion of younger people that completes tertiary education is relatively low. The authorities are undertaking wide ranging reforms touching all levels of education to tackle these problems. Nevertheless, there is scope to go further by: increasing participation in early childhood education and care of children from less advantaged socio-economic backgrounds and improving the quality of such education; improving teaching quality; reducing stratification in the school system; and making tertiary education more attractive and responsive to labour-market requirements. With the reforms underway or suggested, Germany would be able to look forward to higher education achievement and attainment and, especially, greater equality of education opportunity. <P>Améliorer les résultants de l’enseignement en Allemagne <BR>Il importe d’améliorer les résultats de l’enseignement pour les performances économiques à long terme et pour la cohésion sociale de l’Allemagne. Si les élèves réussissent mieux que la moyenne de l’OCDE en sciences et atteignent la moyenne en compréhension de l’écrit et en mathématiques selon l’enquête PISA 2006 de l’OCDE, les élèves en difficulté ont généralement des résultats faibles par rapport à ceux des autres pays et l’influence du milieu socio-économique et/ou de l’origine est forte. Autre problème : la proportion des jeunes qui achèvent leurs études supérieures est relativement faible. Les autorités ont entrepris une vaste réforme de l’ensemble du système éducatif afin de résoudre ces difficultés. Néanmoins, il est possible d’aller plus loin, notamment en augmentant le nombre d’enfants de familles défavorisées inscrits dans les services d’éducation et d’accueil des jeunes enfants et en améliorant la qualité de ces services, en rehaussant la qualité de l’enseignement, en réduisant la stratification du système scolaire, et en rendant l’enseignement supérieur plus avantageux et plus réactif face aux exigences du marché du travail. Avec les réformes en cours ou proposées, l’Allemagne pourrait espérer des résultats scolaires et des niveaux de formation plus élevés et surtout, une plus grande égalité des chances dans le domaine de l’éducation.
    Keywords: education, éducation, PISA, achievement, attainment, school system, stratification, PISA, réussite scolaire, stratification, accountability, responsabilité, cadre socio–économique
    JEL: I21 I28 J24
    Date: 2008–05–15
  17. By: Uwe Cantner (Friedrich-Schiller University, Jena, Economics Department); Andreas Meder (Friedrich-Schiller University, Jena, Economics Department)
    Abstract: This work deals with the determinants of cooperative invention and innovation within innovation systems. Several proximity dimensions are used to identify the levels on which systemic innovation activities can be observed. To disentangle the effects of different proximity dimensions a procedure is suggested to identify the relative regional impact (RRI) on cooperative invention and innovation. Applying this method to German patent data shows that there are significant differences in the RRI of German regions. These differences are related to measures of the technological relatedness of the regions knowledge bases, and over time they show a considerable path dependency.
    Keywords: proximity concepts, cooperative innovation, innovation systems
    JEL: O31 P25 Q55
    Date: 2008–05–26
  18. By: Uwe Cantner (Friedrich-Schiller University, Jena, Economics Department); Holger Graf (Friedrich-Schiller University, Jena, Economics Department)
    Abstract: The flow of knowledge through interaction between innovative actors is central to the systemic view of innovation. We review the lite ature on interaction and innovator networks with a focus on regional aspects. To illustrate the relevance of these relations, we apply social network analysis methods to describe the evolution of the innovator network of Jena, Germany in the period from 1995 to 2001. During this period, the network is characterised by growth in the number of patents, actors and relations, with central positions of public research. The evolution is directed towards an increasing focus on core compe- tencies of the network.
    Keywords: Innovator Networks, Innovation System, R+D Cooperation. Mobility
    JEL: O31 L14 R11
    Date: 2008–05–08
  19. By: Francisco Silva; Daniel Serra
    Abstract: One of the assumptions of the capacitated facility location problem (CFLP) is that demand is known and fixed. Most often, this is not the case when managers take some strategic decisions such as locating facilities and assigning demand points to those facilities. In this paper we consider demand as stochastic and we model each of the facilities as an independent queue. Stochastic models of manufacturing systems and deterministic location models are put together in order to obtain a formula for the backlogging probability at a potential facility location. Several solution techniques have been proposed to solve the CFLP. One of the most recently proposed heuristics, a reactive greedy adaptive search procedure, is implemented in order to solve the model formulated. We present some computational experiments in order to evaluate the heuristics’ performance and to illustrate the use of this new formulation for the CFLP. The paper finishes with a simple simulation exercise.
    Keywords: Location, queuing, greedy heuristics, simulation
    JEL: C61 L80
    Date: 2008–05
  20. By: Francisco Silva; Daniel Serra
    Abstract: Previous covering models for emergency service consider all the calls to be of the same importance and impose the same waiting time constraints independently of the service's priority. This type of constraint is clearly inappropriate in many contexts. For example, in urban medical emergency services, calls that involve danger to human life deserve higher priority over calls for more routine incidents. A realistic model in such a context should allow prioritizing the calls for service. In this paper a covering model which considers different priority levels is formulated and solved. The model heritages its formulation from previous research on Maximum Coverage Models and incorporates results from Queuing Theory, in particular Priority Queuing. The additional complexity incorporated in the model justifies the use of a heuristic procedure.
    Keywords: Location, health services, queuing, heuristics
    JEL: C61 L80
    Date: 2008–05
  21. By: Gilbert E. Metcalf
    Abstract: Federal deductibility for state and local taxes constitutes one of the largest tax expenditures in the federal budget and provides a significant source of federal support to state and local governments. Deductibility was restricted in the Tax Reform Act of 1986 by removing the deduction for general sales taxes. More recently the President's Advisory Panel on Federal Tax Reform recommended eliminating the deduction altogether as one of several revenue-raising initiatives to finance comprehensive tax reform. I carry out a number of distributional analyses – considering both variation across income and across states – of the subsidy from deductibility as well as the distributional impact of potential partial reforms. In addition, I consider three counterfactuals for 2004 – a tax system without the Bush tax cuts for 2001 and 2003, a tax system without the 2004 AMT patch, and a tax system without the AMT – to see how the benefits of deductibility are affected by these changes in the tax law. Next I consider how behavioral responses affect the tax expenditure estimates. Feldstein and Metcalf (1987) argued that tax expenditures overestimate the revenue gain from eliminating deductibility as they do not take into account a likely shift away from once-deductible taxes to non-deductible taxes and fees in the absence of deductibility. Many of these latter taxes and fees are paid by businesses. As business costs rise, federal business tax collections would fall, offsetting some of the gains of ending deductibility. Feldstein and Metcalf also found that ending deductibility would have little if any impact on state and local spending itself. Using a large panel of data on state and local governments, I revisit this issue and find that the Feldstein-Metcalf results are robust to adding more years of analysis.
    JEL: H2 H71 H77
    Date: 2008–05
  22. By: Michael Fritsch (Friedrich Schiller University Jena, German Institute for Economic Research (DIW-Berlin), and Max Planck Institute of Economics, Jena, Germany); Martina Kauffeld-Monz (Institute for Urban Science and Structural Policy (IfS Berlin), Germany)
    Abstract: We analyze information and knowledge transfer in a sample of 16 German regional innovation networks with almost 300 firms and research organizations involved. The results indicate that strong ties are more beneficial for the exchange of knowledge and information than weak ties. Moreover, our results suggest that broker positions tend to be associated with social returns rather than with private benefits.
    Keywords: Regional innovation networks, R+D-collaboration, knowledge exchange, social network analysis, strong ties, knowledge brokers
    JEL: D83 D85 L14 O32
    Date: 2008–05–06
  23. By: Robertas Zubrickas (Stockholm School of Economics)
    Abstract: In the framework of static mechanism design games with non- pecuniary rewards, we solve for optimal student grading schemes and attempt to explain the observed mismatch between students? grades and their abilities. The model predicts that the more pes- simistic the teacher is about her students, the more generous she should be in grading them. Generally, the "no distortion at the top" property ceases to hold for optimal contracts with cost- less non-pecuniary rewards, and we argue that the compression of ratings as witnessed in job performance appraisals could be an equilibrium outcome. The presented theoretical ?ndings are strongly supported by empirical evidence from the related litera- ture in psychological and educational measurement.
    Keywords: Mechanism design, non-pecuniary incentives, op- timal grading schemes, mismatch of grades and abilities, com- pression of ratings
    JEL: D82 D86 I20 J41
    Date: 2008–03
  24. By: Maria, De Paola
    Abstract: In this paper we analyse whether the characteristics of university teaching staff matter with regards students’ performance and interest in the discipline. We use data on about one thousand students enrolled on the first level degree course in Business and Economics at a medium sized Italian University. Thanks to the random assignment of students to different teaching sections during their first year, we are able to analyze the effect that teachers with different characteristics, in terms of experience and research productivity, produce both on students’ performance, measured in terms of the grades obtained at subsequent exams and courses chosen. Our results suggest that teacher quality has statistically significant effects on students’ grades on subsequent courses. These effects are also robust after controlling for unobserved individual characteristics. On the other hand, we find less clear evidence when relating teacher quality to student involvement with a subject. It emerges that more experienced teachers have a negative impact on the probability of a student’s undertaking additional courses in a subject, while research productivity does not produce a statistically significant effect.
    Keywords: teaching quality; student performance;
    JEL: A2
    Date: 2008–01
  25. By: Gunther Maier; Alexander Kaufmann; Michael Vyborny
    Date: 2008

This nep-ure issue is ©2008 by Steve Ross. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.