nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2008‒08‒14
thirty papers chosen by
Steve Ross
University of Connecticut

  1. Home Relocation and the Journey to Work By Nebiyou Tilahun; David Levinson
  2. Predicting Land Use Change: How Much Does Transportation Matter? By Michael Iacono; David Levinson
  3. Modelling the Effects of Pupil Mobility and Neighbourhood on School Differences in Educational Achievement By George Leckie
  4. Cordon pricing consistent with the physics of overcrowding By Nikolas Geroliminis; David Levinson
  5. How Streetcars Shaped Suburbanization: A Granger-Casality Analysis of Land Use and Transit in The Twin Cities By Feng Xie; David Levinson
  6. The Impact of Classroom Peer Groups on Pupil GCSE Results By Adele Atkinson; Simon Burgess; Paul Gregg; Carol Propper; Steven Proud
  7. Can information asymmetry cause agglomeration? By Berliant, Marcus; Kung, Fan-chin
  8. Housing bubbles By Óscar J. Arce; J. David López-Salido
  9. Trends in Housing Costs: 1985-2005 and the 30-Percent-of-Income Standard By HUD - PD&R
  10. Girl Power? An analysis of peer effects using exogenous changes in the gender make-up of the peer group. By Steven Proud
  11. A Study of Closing Costs for FHA Mortgages By HUD - PD&R
  12. Quality Control for Rental Assistance Subsidies Determination: Final Report for FY 2006 By HUD - PD&R
  13. Big Men on Campus: Estimating the Economic Impact of College Sports on Local Economies By Robert Baade; Robert Baumann; Victor Matheson
  14. Evaluating the Effects of I-35W Bridge Collapse on Road-Users in the Twin Cities Metropolitan Region By Feng Xie; David Levinson
  15. On Roots of Housing Bubbles By Erdem Basci; Ismail Saglam
  16. An agent-based retail location model on a supply chain network By Arthur Huang; David Levinson
  17. Mobility and School Disruption By Steve Gibbons; Shqiponja Telhaj
  18. Educational Effects of Widening Access to the Academic Track: A Natural Experiment By Eric Maurin; Sandra McNally
  19. New actions on the housing and financial crises—do no harm? By Tatom, John A.
  20. Post-Construction Evaluation of Traffic Forecast Accuracy By Pavithra Parthasarathi; David Levinson
  21. Cost-Benefit analysis of transport investments in distorted economies By Calthrop E.; De Borger B.; Proost S.
  22. Tax Competition, Imperfect Capital Mobility and the gain from non-preferential agreements By Kaushal Kishore
  23. Market Mechanisms in Public Service Provision By Hansjörg Blöchliger
  24. Review of Methods for Estimating the Economic Impact of Transportation Improvements By Michael Iacono; David Levinson
  25. The Costs and Benefits of "Strangers": Why Mixed Communities Are Better By Paul A. Grout; Sebastien Mitraille; Silvia Sonderegger
  26. A Review of Research on Planned and Unplanned Disruptions to Transportation Networks By Shanjiang Zhu; David Levinson
  27. Small-area estimation with spatial similarity By Nicholas Longford
  28. How big a problem is noise pollution? A brief happiness analysis by a perturbable economist By Weinhold, Diana
  29. Ability, Schooling Inputs and Earnings: Evidence from the NELS By Eren, Ozkan
  30. The Effects of Daylight Saving Time on Vehicle Crashes in Minnesota By Arthur Huang; David Levinson

  1. By: Nebiyou Tilahun; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: Relocation decisions are complex. Each household has a bundle of attributes that make a location attractive to it, including the ability to access different activity locations easily, neighborhood quality, house amenities etc. Relocating households have an opportunity to Þnd housing closer to their work. Using data collected in the Twin Cities area, we investigate how distance to home and travel time to home change among individuals who have changed their residence since they started their current job. Comparing the home-to-work distance after the move to the previous-home-to-work distance, we Þnd that the average home to work distance is reduced as a result of the move. We also Þnd that the reduction depend on the previous home to work distance as well as the previous homesÕ proximity to downtown Minneapolis. The Þndings show that households that are either very close to their work, or very close to down- town, or both did not signiÞcantly increase or decrease their commute after relocation. This suggests that access to work as well as access to the opportunities that proximity to downtown offers (to jobs, urban spaces, etc.) are important in the decision making process.
    Keywords: Journey to Work, Commuting, Relocation, Tenure, Jobs, Minnesota, Minneapolis
    JEL: R41 R48 D63
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:nex:wpaper:relocationjourneytowork&r=ure
  2. By: Michael Iacono; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: In this paper, we propose to measure the extent of the inßuence of transportation systems on land use change. Using a set of high-resolution land use data for the Twin Cities metropolitan region, we estimate logistic regression models of land use change covering a 10-year period from 1990 to 2000. The models account for existing land use types, neighboring land uses, and transportation network variables that measure the physical proximity of highway networks, as well as the level of accessibility associated with a speciÞc location. The models are esti- mated with and without the transportation variables and compared to assess the extent of their inßuence. We Þnd (perhaps not surprisingly) that transportation-related variables exert some inßuence on changes to land use patterns, though not as much as variables representing existing and neighboring land uses.
    Keywords: Land use, Twin Cities (Minnesota), Mathematical models, urban growth
    JEL: R41 R48 D63
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:nex:wpaper:predictinglandusechange&r=ure
  3. By: George Leckie
    Abstract: Traditional studies of school differences in educational achievement use multilevel modelling techniques to take into account the nesting of pupils within schools. However, educational data are known to have more complex non-hierarchical structures. The potential importance of such structures is apparent when considering the impact of pupil mobility during secondary schooling on educational achievement. Movements of pupils between schools suggest that we should model pupils as belonging to the series of schools attended and not just their final school. Since these school moves are strongly linked to residential moves, it is important to additionally explore whether achievement is also affected by the history of neighbourhoods lived in. Using the national pupil database (NPD), this paper combines multiple-membership and cross-classified multilevel models to simultaneously explore the relationships between secondary school, primary school, neighbourhood and educational achievement. The results show a negative relationship between pupil mobility and achievement, the strength of which depends greatly on the nature and timing of these moves. Accounting for pupil mobility also reveals that schools and neighbourhoods are more important than shown by previous analysis. A strong primary school effect appears to last long after a child has left that phase of schooling. The additional impact of neighbourhoods, on the other hand, is small. Crucially, the rank order of school effects across all types of pupils is sensitive to whether we account for the complexity of the multilevel data structure.
    Keywords: Cross-classified models, Multiple-membership-models, Multilevel modelling, Pupil mobility, School effectiveness, Value-added models
    JEL: I2
    Date: 2008–01
    URL: http://d.repec.org/n?u=RePEc:bri:cmpowp:08/189&r=ure
  4. By: Nikolas Geroliminis; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: This paper describes the modeling of recurring congestion in a network. It is shown that the standard economic models of marginal cost cannot describe precisely traffic congestion in networks during time-dependent conditions. Following a macroscopic traffic approach, we describe the equilibrium solution for a congested network in the no-toll case. A dynamic model of cordon-based congestion pricing (such as for the morning commute) for networks is developed consistent with the physics of traffic.Ê The paper combines VickreyÕs theory with a macroscopic traffic model, which is readily observable with existing monitoring technologies. The paper also examines some policy implications of the cordon-based pricing to treat equity and reliability issues, i.e. in what mobility level a city should choose to operate. An application of the model in a downtown area shows that these schemes can improve mobility and relieve congestion in cities.
    Keywords: Cordon Pricing, Congestion Pricing, Road Pricing, Value Pricing, Social Equity
    JEL: R41 R48 D63
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:nex:wpaper:cordonpricingovercrowding&r=ure
  5. By: Feng Xie; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: This paper presents a causality analysis of the coupled development of population and streetcars in the Twin Cities metropolitan area. Historic residence and network data were assembled for 1900-1930, and linear cross-sectional time-series models were estimated at both a tract and block level using this data. It is found that, in contrast with transportation systems that were expanded in response to increased demand, the rapid expansion of the streetcar system during the electric era has been driven by other forces and to a large extent led land development in the Twin Cities. The main forces that have driven this process include technological superiority, monopoly, close con- nections with real estate business, and peopleÕs reliance on the streetcar for mobility. Proximity to the streetcar is found to be a crucial factor that determines the distribu- tion and development of residences: it is observed that residential density declines with the distance from streetcar lines, and signiÞcantly drops beyond a walkable distance; it is also observed that gaining a closer access to streetcar lines within 800 meters (about a half mile) predicts the increase in residential density to a signiÞcant extent.
    Keywords: Transport, land use, Twin Cities (Minnesota), Streetcars, Light Rail Transit, network growth, induced demand, induced supply
    JEL: R42 R31 R21 N73 N74
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:nex:wpaper:streetcar&r=ure
  6. By: Adele Atkinson; Simon Burgess; Paul Gregg; Carol Propper; Steven Proud
    Abstract: The effect of a more able peer group on a child’s attainment is considered an integral part in estimating a pupil level educational production function. Examinations in England at age 16 are tiered according to ability, leading to a large stratification of pupils by ability. However, within tiers, there is a range of policies between schools regarding setting, ranging from credibly random to strict setting by results from examinations at age 14. We use this variation to estimate ordinary least squares (OLS) estimates, with school and teacher fixed effects, of the effect of a more able peer group using a subset of schools that has apparently random allocation of pupils. As a robustness test of the apparently random setting results, we use an instrumental variables (IV) methodology developed by Lefgren (2004b). We find significant, positive, and non-trivial effects of a more able peer group using both the OLS and IV estimations for English and mathematics.
    Keywords: peer groups, education
    JEL: J13 D1 I21 I38
    Date: 2008–01
    URL: http://d.repec.org/n?u=RePEc:bri:cmpowp:08/187&r=ure
  7. By: Berliant, Marcus; Kung, Fan-chin
    Abstract: The modern literature on city formation and development, for example the New Economic Geography literature, has studied the agglomeration of agents in size or mass. We investigate agglomeration in sorting or by type of worker, that implies agglomeration in size when worker populations differ by type. This kind of agglomeration can be driven by asymmetric information in the labor market, specifically when firms do not know if a particular worker is of high or low skill. In a model with two types and two regions, workers of different skill levels are offered separating contracts in equilibrium. When mobile low skill worker population rises or there is technological change that favors high skilled workers, integration of both types of workers in the same region at equilibrium becomes unstable, whereas sorting of worker types into different regions in equilibrium remains stable. The instability of integrated equilibria results from firms, in the region to which workers are perturbed, offering attractive contracts to low skill workers when there is a mixture of workers in the region of origin.
    Keywords: Adverse Selection; Agglomeration
    JEL: R13 R12 D82
    Date: 2008–08–09
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:9951&r=ure
  8. By: Óscar J. Arce (Banco de España); J. David López-Salido (Federal Reserve Board)
    Abstract: In this paper we use the notion of a housing bubble as an equilibrium in which some investors hold houses only for resale purposes and not for the expectation of a dividend, either in the form of rents or utility. We provide a life-cycle model where households face collateral constraints that tie their credit capacity to the value of their houses and examine the conditions under which housing bubbles can emerge. In such equilibria, the total housing stock is held by owners that extract utility from their homes, landlords that obtain rents, and investors. We show that an economy with tighter collateral constraints is more prone to bubbles which, in turn, tend to have a larger size but are less fragile in face of funddraining shocks. Our environment also allows for pure bubbles on useless assets. We find that multiple equilibria in which the economy moves endogenously from a pure bubble to a housing bubble regime and vice versa are possible. This suggests that high asset price volatility may be a natural consequence of asset shortages (or excess funding) that depress interest rates sufficiently so as to sustain an initial bubble. We also examine some welfare implications of the two types of bubbles and discuss some mechanisms to rule out equilibria with housing bubbles.
    Keywords: collateral constraints, buy-to-let investment, housing bubbles, switching bubbles, welfare
    JEL: G21 R21 R31
    Date: 2008–08
    URL: http://d.repec.org/n?u=RePEc:bde:wpaper:0815&r=ure
  9. By: HUD - PD&R
    Abstract: Public policy has focused on the ability of families both to acquire safe and sanitary housing in decent neighborhoods and to have sufficient income left over to purchase other essential goods and services. Over time, policy analysts have come to use "30 percent" as a standard to assess the affordability of housing. The belief is that households who have to pay more than 30 percent of their incomes for housing may be forced to forego other important needs. In this study, HUD looks at the adequacy of the 30-percent-of-income standard, while testing alternative methods of evaluating this question. The research also explores trends in the components of housing costs relative to income for owners with mortgages, owners without mortgages, and renters, respectively.
    JEL: D40
    Date: 2008–06
    URL: http://d.repec.org/n?u=RePEc:hud:wpaper:39164&r=ure
  10. By: Steven Proud
    Abstract: The effect of a child’s peers has long been regarded as an important factor in affecting their educational outcomes. However, these effects follow several different mechanisms and are often difficult to estimate, due to unobserved selection. This paper builds on the work of Hoxby (2000) and uses exogenous changes in the proportion of girls within UK school cohorts to estimate the effect of a more female peer group. I include estimates of effects at a classroom level for schools that appear to contain only one class per cohort to estimate the direct effect of a peer group. Further, I examine if there is a differential effect of boys and girls with differing socioeconomic status, and also examine the effect of a more female peer group on a child’s value added score. I find large significant negative effects of a more female peer group on boy’s outcomes in English, whilst in maths and science, both boys and girls benefit from a more able peer group up until age 11.
    Keywords: peer groups, education
    JEL: J13 D1 I21 I38
    Date: 2008–01
    URL: http://d.repec.org/n?u=RePEc:bri:cmpowp:08/186&r=ure
  11. By: HUD - PD&R
    Abstract: This study presents findings on how much borrowers pay in closing costs when they buy a house, how much these costs vary, and factors to which the variation is related. The analysis uses data from a national sample of 7,560 FHA-insured, 30-year fixed-rate home purchase loans. Data were collected on how much borrowers paid for lender or broker services, title services, and real estate agent's services, and linked to information on borrower and loan characteristics, including loan amounts, interest rates, credit history, income, borrowers' race and ethnicity, and the racial composition and educational attainment in the borrower's neighborhood. The analysis focuses in turn on fees paid to lenders and mortgage brokers, to title companies, and to real estate agents.
    JEL: G21
    Date: 2008–05
    URL: http://d.repec.org/n?u=RePEc:hud:wpaper:39162&r=ure
  12. By: HUD - PD&R
    Abstract: The Department of Housing and Urban Development (HUD) Quality Control for Rental Assistance Subsidy Determinations studies provide national estimates of the extent, severity, costs, and sources of rent errors in tenant subsidies for the PHA-administered Public Housing, Section 8 Housing Choice Voucher, and Moderate Rehabilitation programs; and the owner-administered Section 8, and Section 202 and Section 811 programs with Project Rental Assistance Contracts (PRAC) or Project Assistance Contracts (PAC). These programs account for nearly all of HUD's current housing assistance outlays administered by the Offices of Housing and Public and Indian Housing, as well as the large majority of units assisted by HUD. This study was designed to measure the extent of administrative error by housing providers. The errors we evaluated in this study affect the rent contributions tenants should have been charged. The findings presented in this report are a result of data collected from February through July 2007 for actions taken by Public Housing Authority (PHA) and project staff during FY 2006 (October 2005 through September 2006). These findings show that the percent of errors, the average dollars in error and the gross dollar error rate in the Public Housing, Section 8 Housing Choice Voucher, Moderate Rehabilitation, owner-administered Section 8, and Section 202 and Section 811 programs with PRAC or PAC tenant subsidies continues to remain stable when compared with results from previous studies.
    JEL: D40
    Date: 2007–10
    URL: http://d.repec.org/n?u=RePEc:hud:wpaper:39163&r=ure
  13. By: Robert Baade (Department of Economics and Business, Lake Forest College); Robert Baumann (Department of Economics, College of the Holy Cross); Victor Matheson (Department of Economics, College of the Holy Cross)
    Abstract: College football and men’s basketball are the largest revenue generators in college athletics. Studies funded by athletic boosters tout the economic benefits of a college athletic program as an incentive for host cities to construct new stadiums or arenas at considerable public expense. Our analysis of the economic impact of home football and men’s basketball games on Tallahassee (home of Florida State University) and Gainesville (home of the University of Florida) between 1980 to early-2007 fails to support these claims. Men’s basketball games at these universities have no statistically significant impact on taxable sales, while football yields a modest gain of $2 to $3 million per home game. While this positive finding is one of the first in the academic literature of the impact of sports, these gains pale in comparison to the figures in many of the studies funded by athletic boosters.
    Keywords: sports, basketball, football, college sports, impact analysis, mega-event
    JEL: L83 O18 R53
    Date: 2007–08
    URL: http://d.repec.org/n?u=RePEc:spe:wpaper:0726&r=ure
  14. By: Feng Xie; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: This study evaluates the e?ects of I-35W bridge collapse on road-users in the Twin- Cities metropolitan area. We adopted the Twin-Cities (Metropolitan Minneapolis and St. Paul) Seven-County travel demand model developed in previous research, re-calibrated it against July 2007 loop detector tra?c data, and used this model to carry out an evaluation of economic loss incurred by increased travel delay in alter- native scenarios before and after the bridge collapse. We concluded that the failure of the I-35W bridge resulted in an economic loss of $71,000 to $220,000 a day, de- pending on how ßexible road-users in the system can adjust their trip destinations in response to the bridge closing. We also estimated that the major tra?c restoration pro jects Mn/DOT has implemented in quick response to the bridge collapse can save road-users $9,500 to $17,500 a day. This translates into a beneÞt-cost ratio of 2.0-9.0, suggesting these pro jects are highly beneÞciary in an economic sense. In this analysis, the use of a simpliÞed, scaled-down travel demand model enabled us to carry out the analysis quickly and accurately, showing its contributions in transportation planning under situations such as emergency relief and comprehensive design.
    Keywords: I-35W Bridge, Minnesota, Minneapolis, Economic Evaluation
    JEL: R41 R48 D63
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:nex:wpaper:i-35w-trb2009-bridgeregion&r=ure
  15. By: Erdem Basci; Ismail Saglam
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:tcb:wpaper:0803&r=ure
  16. By: Arthur Huang; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: Clusters of business locations, which considerably impact daily activities, have been promi- nent phenomena. Yet the question of how and why Þrms cluster in certain areas has not been sufÞciently studied. This paper investigates the emergence of clusters of business locations on a supply chain network comprised of suppliers, retailers, and, consumers. Krugman (1996) argued that urban concentration involved a tension between the ÒcentripetalÓ and the Òcen- trifugalÓ forces. Based on that notion, this research proposes an agent-based model of retail- ersÕ location choice in a market of homogeneous products. In this game, retailers endeavor to maximize their proÞts by changing locations. RetailersÕ distribution patterns are measured by entropy and cluster density. Simulation results reveal that as more retailers engage in the game, clusters autonomously emerge and the entropy of clusters increases. Once retailers exceed a certain number, average density of clusters begins to decline; all discrete clusters gradually merge to a large cluster, spreading out uniformly. This research thus Þnds that the centripetal force attracts retailers to supplier locations; with even more retailers entering the market, the centrifugal force disperses them. The sensitivity results on model parameters and consumersÕ demand elasticity are also discussed.
    Keywords: clustering, supply chain network, location choice, distribution pattern
    JEL: R41 R48 D63
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:nex:wpaper:cluster&r=ure
  17. By: Steve Gibbons; Shqiponja Telhaj
    Abstract: We consider the influence that mobile pupils have on the academic achievements of other pupils in English primary schools. We find that immobile pupils in year-groups (à la US "grades") that experience high pupil entry rates progress less well academically between ages 8 and 11 than pupils in low-mobility year groups (grades), even within the same school. The disruptive externalities of mobility are statistically significant, but actually very small in terms of their educational impact. An increase in annual entry rates from 0 to 10% (a 4 standard deviation change) would set the average incumbent pupil back by between 1 and 2 weeks, or about 4% of one standard deviation of the gain in pupil achievement between ages 7 and 11.
    Keywords: pupil mobility, pupil achievement, externalities
    JEL: H4 I2 R2 J24
    Date: 2007–08
    URL: http://d.repec.org/n?u=RePEc:cep:ceedps:0083&r=ure
  18. By: Eric Maurin; Sandra McNally
    Abstract: It is difficult to know whether widening access to schools which provide a more academically oriented general education makes a difference to average educational achievement. We make use of reforms affecting admission to the 'high ability' track in Northern Ireland, but not England. The comparison of educational outcomes between Northern Ireland and England before and after the reform identifies the net effect of expanding the academic track to accommodate more students. This is composed of the direct effect of the more academic track on individual performance and the indirect effect arising on account of the change in peer group composition. Our paper is relevant to debate on the consequences of ability tracking and of expanding access to the academic track.
    Keywords: education, tracking, selection
    JEL: I2
    Date: 2007–08
    URL: http://d.repec.org/n?u=RePEc:cep:ceedps:0085&r=ure
  19. By: Tatom, John A.
    Abstract: On July 27, 2008, the U.S. Senate passed and sent on to the president the “Housing and Economic Recovery Act of 2008,” reportedly the most important hosing bill since the Great Depression. The bill was originally aimed at addressing the foreclosure crisis which began in late 2006 and became especially apparent in the financial crisis that emerged in August 2007. Its passage was accelerated by the near or real failures of Fannie Mae and Freddie Mac, the nation’s two largest government sponsored enterprises (GSEs), who play a central role in the functioning of the nation’s housing, mortgage and financial markets. It is unlikely that the new steps will have much effect on the foreclosure crisis or short-term economic performance, but they create serious uncertainty over the future of the GSEs, federal finance and the status and role of the U.S. financial markets. It is likely, however, that the new arrangements for Fannie Mae and Freddie Mac will not remain static for more than a few months and that newly authorized steps for the new regulator of the GSEs are likely to ramp up the discussion and need for regulation soon.
    Keywords: U.S. Housing Bill; GSE reform; foreclosure crisis; financial regulation
    JEL: E62 E44 G28
    Date: 2008–07–31
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:9823&r=ure
  20. By: Pavithra Parthasarathi; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: This research evaluates the accuracy of demand forecasts using a sample of recently-completed projects in Minnesota and identiÞes the factors inßuencing the inaccuracy in forecasts. The forecast traffic data for this study is drawn from Environmental Impact Statements(EIS), Transportation Analysis Reports (TAR) and other forecast reports produced by the Minnesota Department of Transportation (Mn/DOT) with a horizon forecast year of 2010 or earlier. The actual traffic data is compiled from the database of traffic counts maintained by the Office of Traffic Forecasting and Analysis section at Mn/DOT. Based on recent research on forecast accuracy, the (in)accuracy of traffic forecasts is estimated as a ratio of the forecast traffic to the actual traffic. The estimation of forecast (in)accuracy also involves a comparison of the socioeconomic and demographic assumptions, the assumed networks to the actual in-place networks and other travel behavior assumptions that went into generating the traffic forecasts against actual conditions. The analysis indicates a general trend of underestimation in roadway traffic forecasts with factors such as highway type, functional classiÞcation, direction playing an inßuencing role. Roadways with higher volumes and higher functional classiÞcations such as freeways are subject to underestimation compared to lower volume roadways/functional classiÞcations. The comparison of demographic forecasts shows a trend of overestimation while the comparison of travel behavior characteristics indicates a lack of incorporation of fundamental shifts and societal changes.
    Keywords: Minnesota, Minneapolis, Travel Demand Model, Transportation Planning, Forecasting
    JEL: R41 R48 D63
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:nex:wpaper:forecastaccuracy&r=ure
  21. By: Calthrop E.; De Borger B.; Proost S.
    Abstract: This paper deals with costs-benefit analysis of investment in transport infrastructure. Its contribution is twofold. Firstly, we develop a general equilibrium model to explore the impact of a small budgetary-neutral investment in transport infrastructure in a second-best setting, where other markets in the economy are distorted by taxes or external costs. The model incorporates different transport modes that are used both for intermediate inputs (freight) and for final consumption (passenger travel). An intuitive operational expression for the net economic benefit of an investment is derived that depends on the way the investment is financed. This expression generalizes recent findings in the literature. Secondly, we illustrate the results numerically using a small example. Our findings show that both the specific financing instrument used and the labour market consequences may have large implications for the net benefits of transport investments. Significant errors may be made in limiting cost-benefit analysis to transport markets only.
    Date: 2008–06
    URL: http://d.repec.org/n?u=RePEc:ant:wpaper:2008011&r=ure
  22. By: Kaushal Kishore (Southern Methodist University)
    Abstract: The gain to competing governments from entering into binding non-preferential tax agree- ments (that prevents discriminatory taxation in favor of mobile capital) depends on the extent of capital mobility between jurisdictions. In particular the gain is increasing in the cost of re- location of capital and the fraction of the domestic tax base which is relatively immobile. We show this in a symmetric model of capital tax competition between two governments where all capital is imperfectly mobile and di¤er only in their cost of relocation.
    Keywords: Tax Competition, Capital Mobility, Non-Preferential Regime.
    JEL: F15 F21 H26 H87
    Date: 2008–07
    URL: http://d.repec.org/n?u=RePEc:smu:ecowpa:0804&r=ure
  23. By: Hansjörg Blöchliger
    Abstract: This paper presents a new set of institutional indicators that assess how sub-central governments harness market mechanisms such as tendering, outsourcing, user choice and competition, user fees and output-related funding when providing public services. Services put under scrutiny comprise primary, secondary and tertiary education, hospital care, childcare and elderly care, public transport, and waste collection. Results indicate that governments are often reluctant to apply market mechanisms when providing public services. “Technical” services such as transport or waste collection are more open to market mechanisms than “social” services like education or health care. Regulatory innovations such as tendering, competition or user choice are more advanced than financial innovations like user fees or output-related funding for service providers. <P>Le rôle des mécanismes du marché dans les services publics <BR>Ce document présent un nouvel ensemble d’indicateurs institutionnels qui évaluent comment les administrations infranationales en tant que prestataires de services publics font appel aux mécanismes du marché comme les appels d’offres, la sous-traitance, le choix des usagers, la concurrence, les redevances et le financement lié au résultat. Les services examinés ici comprennent l’éducation primaire, secondaire et tertiaire, les soins hospitaliers, les soins à la petite enfance et aux personnes âgées, les transports publics et la collecte des déchets. Les résultats montrent que les administrations publiques sont souvent réticentes à appliquer les mécanismes du marché. Les services « techniques » tels que les transports ou la collecte des déchets sont plus ouverts aux mécanismes du marché que les services « sociaux » tels que l’éducation ou les soins de santé. Les innovations réglementaires comme les appels d’offre, la concurrence ou le choix des usagers sont plus nombreuses que les innovations financières comme les redevances ou le financement lié au résultat.
    Keywords: competition, privatisation, user choice, choix de l'usager, fiscal federalism, concurrence, privatisation, fédéralisme financier, public services, services publics
    JEL: H42 H50 H77
    Date: 2008–08–04
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:626-en&r=ure
  24. By: Michael Iacono; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: Transportation analysts and the public decision-makers they support are confronted with a broad range of analytical tools for estimating the economic impacts of improvements to trans- portation networks. Many of the available models operate at different scales and have distinctly different structures, making them more or less appropriate for analyzing the impacts of differ- ent types of projects. Here, we review several of the economic methods and models that have been developed for analyzing the impact of transportation improvements, giving special atten- tion to types of projects that add highway capacity in urban areas. We review project-based methods, including beneÞt-cost analysis and several analytical software tools developed by the Federal Highway Administration (FHWA) for economic analysis of transportation investment. We then move on to aggregate and disaggregate-level econometric methods, including regional economic models, hedonic price functions, production functions and cliometric analyses. We also devote some attention to the role of induced demand in economic evaluation, since it is of- ten one of the most uncertain and confounding factors faced by those charged with conducting economic evaluation of transportation projects.
    Keywords: Economic Impact, Benefit-Cost Analysis
    JEL: R41 R48 D63
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:nex:wpaper:estimatingeconomicimpact&r=ure
  25. By: Paul A. Grout; Sebastien Mitraille; Silvia Sonderegger
    Abstract: Much of the literature on diversity assumes that individuals have an exogenous "taste for discrimination". In contrast with this approach, we build a model where preferences over the nature of one's community are derived indirectly, and arise because the composition of the community determines the behavior of its members. This allows us to gain a far deeper understanding of the forces that underpin the desirability of diversity or homogeneity within communities. Our main contribution is to show that there are always counteracting forces (heterogeneity involves both costs and benefits), and that, although people prefer to live in communities where their type is majoritarian, they always benefit from having some heterogeneity in the composition of their community.
    Keywords: heterogeneity, social interactions, value of information, complementarities.
    JEL: C7 D82 Z1
    Date: 2008–02
    URL: http://d.repec.org/n?u=RePEc:bri:cmpowp:08/191&r=ure
  26. By: Shanjiang Zhu; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: Travel decisions may be very stable in an environment with which they are familiar. Major network disruptions such as the I-35W bridge collapse disrupt habitual behavior. Such "natural" experiments provide unique opportunities for behavioral studies, but the time window for such studies is limited. A well-developed methodology is crucial for both data collection and analysis, and thus the soundness of behavioral models, especially in such a limited time window. Therefore, this paper reviews both theoretical and empirical studies on traffic and behavioral impacts of network disruptions. Findings from this paper others prospective ideas about capturing the impacts of network disruption.
    Keywords: Network disruption; Travel survey; Travel behavior
    JEL: R41 R48 D63
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:nex:wpaper:disruptionreview&r=ure
  27. By: Nicholas Longford
    Abstract: We derive a class of composite estimators of small-area quantities that exploit spatial (distance-related) similarity. They are based on a distribution-free model for the areas, but the estimators are aimed to have optimal design-based properties. Composition is applied also to estimating some of the global parameters on which the small-area estimators depend. We show that the commonly adopted assumption of random effects is not necessary for exploiting the similarity of the districts (borrowing strength across the districts). The methods are applied to estimation of the mean household sizes and the proportions of single-member households in the counties (comarcas) of Catalonia.
    Keywords: Auxiliary information, composite estimation, design-based estimator, exploiting similarity, model-based estimator, multivariate shrinkage, small-area estimation, spatial similarity
    JEL: C1 C13 C14 C15 C4 C42
    Date: 2008–07
    URL: http://d.repec.org/n?u=RePEc:upf:upfgen:1105&r=ure
  28. By: Weinhold, Diana
    Abstract: We approach the question of the costs of everyday residential noise pollution by examining a series of ‘happiness regressions.’ Following standard approaches, we use a range of socio-economic data to explain respondents’ declared level of life satisfaction, and then add perceived noise pollution into the analysis. In the process we replicate the observed patterns from other studies of this type. We find noise to exert a negative and highly significant effect on happiness, approximately of the same order of magnitude as being disabled. Using some rough and ready calculations, we find the monetary equivalent costs of noise pollution to be on the order of €170 per month per household.
    Keywords: happiness; hedonic regression; noise pollution
    JEL: Q51 R21
    Date: 2008–08–06
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:9885&r=ure
  29. By: Eren, Ozkan
    Abstract: Utilizing the National Educational Longitudinal Study data, this paper examines the role of pre-market cognitive and noncognitive abilities, as well as schooling inputs, on young men’s earnings. In addition to the conditional mean, we estimate the impacts over the earnings distribution using recently developed (instrumental) quantile regression techniques. Our results show that noncognitive ability is an important determinant of earnings, but the effects are not uniform across the distribution. We find noncognitive ability to be most effective for low earners. Cognitive ability, on the other hand, does not yield any impact either at the mean or at the distributional level once we control for educational attainment. We also find that, on average, pupil-teacher ratio is a significant determinant of earnings. However, similar to noncognitive ability, the effects are not homogeneous.
    Keywords: Cognitive Ability; Instrumental Quantile Regression; Measurement Error; Noncognitive Ability; Pupil-Teacher Ratio
    JEL: C10 C14 I21 J24 I28
    Date: 2008–06
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:9820&r=ure
  30. By: Arthur Huang; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: Daylight saving time (DST), implemented as an energy saving policy, impacts many other aspects of life; one is road safety. Based on ten-year vehicle crash data in Minnesota, this paper evaluates long- and short-term effects of DST on daily vehicle crashes, as well as daily fatal crashes. Our statistical models not only include weather conditions and days of week as independent variables, but also consider trafÞc volume count on road. Our Þndings show that DST, in the long run, is associated with fewer daily crashes than standard time (ST). Yet, DST is found to be associated with higher odds of having more fatal crashes than ST. In addition, our data rejects the hypothesis that the Þrst Sunday or Monday of time change in spring is associated with more fatigue-related crashes than Sundays before time change; nor do we Þnd that the Þrst Sunday or Monday of time change in fall is associated with more alcohol-related crashes than Sundays before time change. Of all weather conditions, snow is found to have the most signiÞcant effect on vehicle crashes; however, its impact on fatal crashes is nevertheless not statistically different from clear weather. Furthermore, Friday is associated with the most daily crashes, whereas Sunday and Saturday are associated with higher odds of more fatal crashes than weekdays.
    Keywords: daylight saving time, vehicle crashes, fatal crashes, trafÞc volume, Minnesota
    JEL: R41 R48 D63
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:nex:wpaper:daylightsavingstime&r=ure

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 http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. 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.