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on Urban and Real Estate Economics |
| By: | Fernando Ferreira; Joseph Gyourko; Joseph Tracy |
| Abstract: | Using two decades of American Housing Survey data from 1985 to 2005, we estimate the influence of negative home equity and rising mortgage interest rates on household mobility. We find that both factors lead to lower, not higher, mobility rates over time. The effects are economically large -- mobility is almost 50 percent lower for owners with negative equity in their homes. This finding does not imply that current concerns over defaults and homeowners having to relocate are entirely misplaced. It does indicate that, in the past, the mortgage lock-in effects of these two factors were dominant over time. Policymakers may wish to begin considering the consequences of mortgage lock-in and reduced household mobility because they are quite different from the consequences associated with default and higher mobility. |
| Keywords: | Housing - Finance ; Mortgages ; Households ; Home ownership |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsr:350&r=ure |
| By: | Gabriel M. Ahlfeldt (University of Hamburg, Department of Economics); Nicolai Wendland (KOF Swiss Economic Institute, ETH Zurich, Switzerland) |
| Abstract: | As the first to use an archival data set on historical land values of Berlin, Germany, from 1890 to 1936, we exploit exogenous variation in transport technology in order to test the validity of the monocentric city model. Endogenously determining the CBD, we conduct cross-section and timedifference analysis and model the land gradient in terms of straight-line distance and travel times. A counterfactual scenario indicates that a large proportion of urban decentralization is attributable to improvements in transport infrastructure. Controlling for spatial dependency, results suggest that the monocentric model fitted the city structure until the mid 20th century. |
| Keywords: | Transport Innovations, Land Values, Location Productivity, Economic History |
| JEL: | N7 N9 R33 O12 |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:08-208&r=ure |
| By: | Iqbal Syed (School of Economics, University of New South Wales); Robert J. Hill (School of Economics, University of New South Wales); Daniel Melser (Moody's Economy.Com) |
| Abstract: | We propose a flexible hedonic methodology for computing house price indexes that uses multiple imputation (MI) to account for missing data (a huge problem in housing data sets). Ours is the first study to use MI in this context. We also allow for spatial correlation, include interaction terms between characteristics, between regions and periods, and between regions and characteristics, and break the regressions up into overlapping blocks of five consecutive periods (quarters in our case). These features ensure that the shadow prices are flexible both across regions and time. This flexible structure makes the derivation of price indexes from the estimated regression equations far from straightforward. We develop innovative methods for resolving this problem and for splicing the overlapping blocks together to generate the overall panel results. We then use our methodology to construct temporal and spatial price indexes for 15 regions in Sydney, Australia on a quarterly basis from 2001 to 2006 and combine them to obtain an overall price index for Sydney. Our hedonic indexes differ quite significantly from the official index for Sydney published by the Australian Bureau of Statistics. We also find clear evidence of convergence in prices across regions from 2001-3 (while prices were rising), and divergence thereafter. We conclude by exploring some of the implications of these empirical findings. |
| Keywords: | Real estate; House prices; Hedonic price index; Missing data; Multiple imputation; Spatial correlation |
| JEL: | C43 E01 E31 R31 |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:swe:wpaper:2008-14&r=ure |
| By: | Emmanuel Cercek |
| Abstract: | Šoštanj Primary School offers a learning process which can enrich traditional forms of schooling. It demonstrates how a school, including its infrastructure, can influence family life and the environment, creating new social patterns and a local identity. Pupils and teachers are involved in different thematic projects and programmes, together with parents and the wider community. Slovenia’s primary schools At the beginning of the 2005/06 school year, the number of primary schools in Slovenia reached almost 800 (242 independent, 205 government-run and 350 subsidiary schools). Financing for public preschool and primary school infrastructure is shared between local communities (municipalities) and the Ministry of Education and Sport, with government funding ranging from 10 to 70%. Local communities own both the buildings and equipment. |
| Keywords: | sustainable development, community, Slovenia, learning environment, school infrastructure, primary school |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:oec:eduaaa:2008/14-en&r=ure |
| By: | Francesco Zanini (University Of Venice Cà Foscari); Fabio Lando (Department of Economics, University Of Venice Cà Foscari); Manuel Bellio (University Of Venice Cà Foscari) |
| Abstract: | Tourism is becoming one of the most important economic drivers in the urban context. With this in mind, several cities have tried to adapt their economies to satisfy the demands of the influx of tourism. The main consequences of this trend are the re-shaping of urban areas, with particular regard to art cities. This phenomenon is particularly evident in Venice’s historical city centre. In order to better comprehend the changes that have taken place, we have put together a research based analysis of the commercial structure of the city. Particular attention has been given to comparing and contrasting the retail business over the last thirty years. |
| Keywords: | commercial structure, historical city centre, retail, Venice |
| JEL: | R1 R11 R12 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2008_33&r=ure |
| By: | Keith Head (Sauder School of Business - University of British Columbia); Thierry Mayer (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I) |
| Abstract: | Using data on name distributions in 95 French d´epartements observed from 1946 to 2002, we investigate spatial and social mechanisms behind the transmission of parental preferences. Drawing inspiration from recent work on social interactions, we develop a simple discrete choice model that predicts a linear relationship between choices by agents in one location and the choices made in neighboring areas. We explain the shares of parents that give their children Saint, Arabic, and American-type names. In a second exercise we examine the effect of distance between locations on differences in name-type shares. In our last exercise we consider dissimilarity in actual names rather than name-types. Using Manhattan Distances as our metric, we find a steady and substantial decline in the importance of geographic distance. Meanwhile, differences in class and national origins have increasing explanatory power. |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:hal:paris1:hal-00266554_v1&r=ure |
| By: | Miguel Martinho; José M. R. Freire da Silva |
| Abstract: | Open plan schools have been largely contested in Portugal; many teachers, administrators and even parents consider this model of schooling inappropriate and therefore a failure. Recently however the Escola da Ponte, one of the open plan schools that has survived, was recognised as one of the country’s most innovative educational facilities. Curiously, one of the main reasons for the school’s “success”, in the opinion of its teaching staff, is precisely the open space design. |
| Keywords: | Portugal, flexibility, school building design, learning environment, educational buildings, educational architecture |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:oec:eduaaa:2008/12-en&r=ure |
| By: | Hill Kulu (Max Planck Institute for Demographic Research, Rostock, Germany); Paul J. Boyle (Max Planck Institute for Demographic Research, Rostock, Germany); Gunnar Andersson (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Abstract: | This study examines fertility variation across different residential contexts in four Northern European countries: Denmark, Finland, Norway and Sweden. We move beyond the conventional urban-rural focus of most previous studies of within-nation variations in fertility by distinguishing between urban centres and suburbs of cities and towns. We base our study on aggregate and individual-level register data and our analysis shows that fertility levels are significantly higher in suburbs than in urban centres; this pattern has persisted over the past quarter of a century for all four countries. A parity-specific analysis of Swedish register data reveals that total fertility varies between central cities and suburbs due to the relatively high first- and second-birth propensities in the suburbs. Further analysis shows that fertility variation between the central cities and suburbs persists after controlling for women’s socioeconomic characteristics. We discuss the role of various factors in accounting for high suburban fertility including omitted individual characteristics, contextual factors and selective residential moves of couples planning to have a child. |
| Keywords: | Europe, fertility, suburban areas |
| JEL: | J1 Z0 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:dem:wpaper:wp-2008-021&r=ure |
| By: | Casey Mulligan; Luke Threinen |
| Abstract: | We model the panic of 2008 as part of the wealth and substitution effects deriving from a housing price crash that began in 2006. The dissipation of the wealth effect stimulates a reorganization of the banking industry and increases in employment, GDP, and unemployment. The release of resources from the housing sector lowers investment goods prices, and thereby devalues existing non-residential capital while stimulating non-residential investment. These predictions are compared with measured U.S. economic performance from 2006 to 2008 Q2. |
| JEL: | E20 E32 R21 |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14446&r=ure |
| By: | Geetesh Bhardwaj; Rajdeep Sengupta |
| Abstract: | The dominant explanation for the meltdown in the US subprime mortgage market is that lending standards dramatically weakened after 2004. Using loan-level data, we examine underwriting standards on the subprime mortgage originations from 1998 to 2007. Contrary to popular belief, we find no evidence of a dramatic weakening of lending standards within the subprime market. We show that while underwriting may have weakened along some dimensions, it certainly strengthened along others. Our results indicate that (average) observable risk characteristics on mortgages underwritten post-2004 would have resulted in a significantly lower ex post default if they were to be given a loan in 2001 or 2002. We show that while it is possible that underwriting standards in this market were poor to begin with, deterioration in underwriting post-2004 cannot be the explanation for collapse of subprime mortgage market. |
| Keywords: | Subprime mortgage |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:2008-036&r=ure |
| By: | Dario Maldonado |
| Abstract: | This paper uses a hybrid human capital / signaling model to study grading standards in schools when tuition fees are allowed. The paper analyzes the grading standard set by a profit maximizing school and compares it with the efficient one. The paper also studies grading standards when tuition fees have limits. When fees are regulated a profit maximizing school will set lower grading standards than when they are not regulated. Credit constraints of families also induce schools to lower their standards. Given that in the model presented competition is not feasible, these results show the importance of regulation of grading standards. |
| Date: | 2008–10–16 |
| URL: | http://d.repec.org/n?u=RePEc:col:000092:005106&r=ure |
| By: | Benjamin Balsmeier; Heiko Peters |
| Abstract: | It is becoming more and more important to be highly skilled in order to integrate successfully into the labor market. Highly skilled workers receive higher wages and face a lower risk of becoming unemployed, compared to poorly qualified workers. We analyze the determinants of successful high school graduation in Germany. As our main database, we use the youth file of GSOEP for the period extending from 2000 to 2007. Because the decision as to which secondary school track to attend - general school (Hauptschule), intermediate school (Realschule) or high school (Gymnasium) - is made after the end of elementary school (Grundschule) at age of ten, parents are responsible for this decision. Therefore, the characteristics of the child as well as those of its parents are the main determinants of educational attainment. We also include the characteristics of grandparents in our regression framework, something which has not been done in any previous study so far. In order to disentangle the determinants of successful graduation at high school, we use the Cox proportional hazard model. We find markedly different determinants of successful graduation for males and females. Furthermore, the results indicate a strong linkage between mothers and daughters, as well as between fathers and sons. |
| Keywords: | high school graduation, Cox proportional hazard model, Germany |
| JEL: | A21 C41 I21 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp138&r=ure |
| By: | Philip Bond; David K. Musto; Bilge Yilmaz |
| Abstract: | Regulators express growing concern over predatory loans, which we take to mean loans that borrowers should decline. Using a model of consumer credit in which such lending is possible, we identify the circumstances in which it arises both with and without competition. We find that predatory lending is associated with highly collateralized loans, inefficient refinancing of subprime loans, lending without due regard to ability to pay, prepayment penalties, balloon payments, and poorly informed borrowers. Under most circumstances competition among lenders attenuates predatory lending. We use our model to analyze the effects of legislative interventions. |
| Keywords: | Predatory lending |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:08-24&r=ure |
| By: | Kristian Behrens; Yasusada Murata |
| Abstract: | We analyze the equilibrium and the optimal resource allocations in a monocentric city under monopolistic competition. Unlike the constant elasticity of substitution (CES) case, where the equilibrium markups are independent of city size, we present a variable elasticity of substitution (VES) case where the equilibrium markups fall with city size. We then show that, due to excess entry triggered by such pro-competitive effects, the "golden rule" of local public finance, i.e., the Henry George Theorem (HGT), does not hold at the second best. We finally prove, within a more general framework, that the HGT holds at the second best under monopolistic competition if and only if the second-best allocation is first-best efficient, which reduces to the CES case. |
| Keywords: | City size, Henry George Theorem, monopolistic competition, first-best and second-best allocations, variable elasticity |
| JEL: | D43 R12 R13 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:lacicr:0834&r=ure |
| By: | Jérôme Massiani |
| Abstract: | In this article, we investigate the use of hedonic pricing method to measure freight value of time. We concentrate on the demand side of the freight market (that is shippers) and give a pre-cise definition to transport duration. We analyse the different temporal dimensions of freight transportation and examine how equilibrium forms on the freight market. This equilibrium is defined in reference cost and duration of the transport operations. Subsequently, we analyse how standard hedonic pricing technique has to be customised to be implemented on freight value of time. In a final section, we implement hedonic analysis on a data set consisting of ship-pers’ interviews. We test different specifications and find information on the distribution of shippers' willingness to pay for transport time savings. |
| Keywords: | Hedonic pricing, freight value of time. |
| JEL: | R41 D61 |
| Date: | 2008–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:eei:rpaper:eeri_rp_2008_08&r=ure |
| By: | Heather Boushey |
| Abstract: | This policy proposal outlines a substantial economic stimulus package needed to address the recent downturn in the U.S. economy. This stimulus package details steps to create jobs, provide economic support and lessen the effects of a weakening economy. |
| Keywords: | fiscal stimulus, housing bubble, recession |
| JEL: | H50 H30 E62 E32 O51 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:epo:papers:2008-02&r=ure |
| By: | Catherine Bros (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I) |
| Abstract: | The aim of this paper is to provide a detailed analysis of the process of segregation formation. The claim is that segregation does not originate from prejudice or exogenous psychological factors. Rather it is the product of strategic interactions among social groups in a setting where one group has captured power. While using a model featuring random matching and repeated games, it is shown that whenever one group seizes power, members of other groups will perceive additional value in forging long term relationships with the mighty. They will systematically cooperate with the latter either because it is in their interest to do so or because they do not have other choice. The mighty natural response to this yearning to cooperate is to refuse intergroup relationships. The dominated group will best reply to this new situation by in turn rejecting the relationships and a segregation equilibrium emerges. Segregation stems from the systematic cooperation by one group with another. However, not all societies that have experienced power captures converge towards segregation. It is shown that the proportion of individuals that are actually powerful within the mighty group determines convergence towards segregation. |
| Keywords: | Segration, discrimination, power, caste, repeated games, prisoner's dilemma, clubs, status, social organizations. |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:paris1:halshs-00204974_v1&r=ure |
| By: | Besley, Timothy (Monetary Policy Committee Unit, Bank of England); Meads, Neil (Monetary Policy Committee Unit, Bank of England); Surico, Paolo (Monetary Policy Committee Unit, Bank of England) |
| Abstract: | This paper uses mortgage data to construct a measure of terms on which households access to external finance, and relates it to consumption at both the aggregate and cohort levels. The Household External Finance (HEF) index is based on the spread paid by risky borrowers in the mortgage market. There is evidence that the terms of access to external finance matter more for the consumption of young cohorts in UK data. Results are robust to a wide variety of specifications. |
| Keywords: | mortgage; household; external finance; consumption |
| JEL: | D12 D14 |
| Date: | 2008–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:mpc:wpaper:0025&r=ure |
| By: | Marcelin Joanis (Université de Sherbrooke, GREDI and CIRANO) |
| Abstract: | Because they yield durable and visible benefits to voters, public infrastructure expenditures are an attractive instrument for politicians to build enduring electoral support in their constituencies. Static models of special-interest politics typically predict that public spending should be targeted at swing voters, at the expense of voters who display strong partisan loyalty. Yet static theories are not well-suited to capture the implications of long-run relationships between political parties and their loyal supporters. To address this limitation, I set out a simple dynamic probabilistic voting model in which a government allocates a fixed budget across electoral districts that differ in their loyalty to the ruling party. The model predicts that the contemporaneous geographic pattern of spending depends on the way the government balances long-run ‘machine politics’ considerations with the more immediate concern to win over swing voters. To assess the empirical relevance of both forces, I analyze rich data on road spending from a panel of electoral districts in Québec. Empirical results exploiting the province’s linguistic fragmentation provide robust evidence that partisan loyalty is a key driver of the geographic allocation of spending, in contrast with the standard ‘swing voter’ view. |
| Keywords: | partisan loyalty, swing voters, political competition, local public goods, distributive politics, long-run relationships |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:shr:wpaper:08-15&r=ure |
| By: | Nicolas Chatelais (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, Institut CDC pour la recherche - Institut CDC pour la recherche); Mathilde Peyrat (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, ESSEC Business School - Ecole Supérieure des Sciences Economiques et Commerciales) |
| Abstract: | The aim of this paper is to develop a better understanding of the literature dealing with strategic fiscal behaviours of small EU countries using estimations of tax reaction functions of competing national governments. Deriving a simple model of tax competition in a Nash and Stackelberg game, we use panel data and tools from spatial econometrics to examine the role of small countries in tax competition within the enlarged European Union. We find that interactions are stronger among smaller EU countries than between larges ones and rates set in small countries influence those in big countries. Finally, small countries located in the centre of the EU have more influence on tax policies choices of big countries than small countries located in the periphery of EU. |
| Keywords: | Strategic interactions, tax behaviours, spatial econometrics, European Union, tax competition, small countries. |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:paris1:halshs-00332479_v1&r=ure |
| By: | Matthias Walter; Astrid Cullmann |
| Abstract: | We analyze potential gains from hypothetical mergers in local public transport using the non-parametric Data Envelopment Analysis with bias corrections by means of bootstrapping. Our sample consists of 41 public transport companies from Germany's most densely populated region, North Rhine-Westphalia. We merge them into geographically meaningful, larger units that operate partially on a joint tram network. Merger gains are then decomposed into individual technical efficiency, synergy and size effects following the methodology of Bogetoft and Wang [Bogetoft, P., Wang, D., 2005. Estimating the Potential Gains from Mergers. Journal of Productivity Analysis, 23(2), 145-171]. Our empirical findings suggest that substantial gains up to 16 percent of factor inputs are present, mainly resulting from synergy effects. |
| Keywords: | Merger; Public Transport; Efficiency; Data Envelopment Analysis |
| JEL: | L92 C14 L11 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp832&r=ure |
| By: | Manuel Frondel; Colin Vance |
| Abstract: | Focusing on travel survey data from Germany, this paper investigates the determinants of automobile travel, with the specific aim of quantifying the effects of fuel prices and fuel economy. The analysis is predicated on the notion that car mileage is a two-stage decision process, comprising the discrete choice of whether to own a car and the continuous choice of distance traveled. To capture this process, we employ censored regression models consisting of Probit and OLS estimators, which allows us to gauge the extent to which sample selectivity may bias the results. Our elasticity estimates indicate a significant positive association between increased fuel economy and increased driving, and a significantly negative fuel-price elasticity, which ranges between –35% and –41%.Taken together, these results suggest that fuel taxes are likely to be a more effective policy measure in reducing emissions than fuelefficiency standards. |
| Keywords: | Automobile travel, rebound effect, two-part model |
| JEL: | D13 Q41 |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0072&r=ure |
| By: | Christa Hainz (University of Munich); Laurent Weill (Laboratoire de Recherche en Gestion et Economie, Institut d'Etudes Politiques, Strasbourg); Christophe J. Godlewski (Laboratoire de Recherche en Gestion et Economie, Université Louis Paster) |
| Abstract: | We investigate the impact of bank competition on the use of collateral in loan contracts. We develop a theoretical model incorporating information asymmetries in a spatial competition framework where banks choose between screening the borrower and asking for collateral. We show that the presence of collateral is more likely when bank competition is low. We then test this prediction empirically on a sample of bank loans from 70 countries. We perform logit regressions of the presence of collateral on bank competition, measured by the Lerner index. Our empirical tests corroborate the theoretical predictions that bank competition reduces the presence of collateral. These findings survive several robustness checks. |
| Keywords: | Collateral, Bank Competition, Asymmetric information. |
| JEL: | G21 D43 D82 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:lar:wpaper:2008-19&r=ure |
| By: | Ofelia Betancor; Juan Luis Jiménez; M. Pilar Socorro |
| Abstract: | Many airports around the world suffer from peak-load demand problems. To meet demand at the peak periods, airports need to over-invest in capacity. However, the costs associated with the peak-load problem are not only those related to the new investment but much more extensive affecting other economic agents. We use data from the airport in Gran Canaria where the peaks in capacity are associated with tourist arrivals and departures. We estimate the costs that demand peaks impose not only on agents located inside the airport, but also to the society in general. The aim of this paper is to provide a methodology for analyzing the costs imposed on those agents and to explore alternative airport policies. |
| Date: | 2008–05 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdacee:12-08&r=ure |
| By: | Christian Dreger; Georg Erber; Daniela Glocker |
| Abstract: | The accumulation of the human capital stock plays a key role to explain the macroeconomic performance across regions. However, despite the strong theoretical support for this claim, empirical evidence has been not very convincing, probably because of the low quality of the data. This paper provides a robustness analysis of alternative measures of human capital available at the level of EU NUTS1 and NUTS2 regions. In addition to the univariate measures, composite indicators based on different construction principles are proposed. The analysis shows a significant impact of construction techniques on the quality of indicators. While composite indicators and labour income measures point to the same direction of impact, their correlation is not overwhelmingly high. Moreover, popular indicators should be applied with caution. Although schooling and human resources in science and technology explain some part of the regional human capital stock, they cannot explain the bulk of the experience. |
| Keywords: | Human capital indicators, SOEP, regional growth |
| JEL: | I20 O30 O40 O52 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp137&r=ure |
| By: | Gajwani, Kiran; Zhang, Xiaobo |
| Abstract: | "This paper seeks to contribute to the literature on village governance and local public goods provision. Using data from 144 village-level governments in India's Tamil Nadu state, we examine whether the gender and caste of village government leaders influence village public goods provision. In particular, we examine: 1) whether public goods are provided in accordance with gender or caste preferences; and 2) whether public goods provision differs based on the knowledge level of the village government leader. We find evidence of different preferences for public goods between men and women, and between Scheduled Caste (SC) and non-SC persons. Additionally, a test of knowledge regarding the village government reveals that female and SC presidents receive lower scores relative to male and non-SC presidents, with women scoring lowest overall. We find that preferences and knowledge have little effect on public goods provision by female presidents, and hypothesize that this may be due to the influence of their male spouses. In the context of SC presidents, we find evidence that SC presidents provide more drinking water access—a location-specific public good—to SC-inhabited village areas." from authors' abstract |
| Keywords: | Local governance, public goods provision, Gender, Caste, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:807&r=ure |
| By: | Nicolas Gruyer (LEEA (air transport economics laboratory), ENAC); Kevin Guittet (DSNA/DTI/R&D) |
| Abstract: | In this paper, we study the impact of the introduction of posted prices in the slot allocation process currently in use at congested airports in most European countries. In particular, we show that if the airport is initially saturated, while low level of slot prices entail no response from the airlines, requests for slots ”suddenly and violently” drop when the price reaches a certain threshold. In general, there is therefore no market clearing price for airport slots. We also present a dynamic model which highlights how the current grandfather rule - stating that slots used today are kept in the future - generates baby-sitting, that is airlines requiring and using slots today just because they expect them to be profitable in the future. |
| Keywords: | Capacity-constrained competition, airport slots |
| JEL: | D21 L10 L93 |
| Date: | 2008–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:enc:abcdef:airportslots5&r=ure |
| By: | Katrina Mullan (University of Cambridge, Department of Land Economy); Pauline Grosjean (Department of Agricultural and Resource Economics, University of California); Andreas Kontoleon (University of Cambridge, Department of Land Economy) |
| Abstract: | This paper examines the impacts of the Chinese Household Responsibility System, which governs rural land tenure, on rural-urban migration. Migration in China has traditionally been limited by the hukou system of household registration, under which individuals who wish to change their place of residence must gain approval from government authorities. This system is currently being relaxed in an attempt to reduce inequalities between rural and urban areas. However, migration will not increase if additional constraints remain for potential migrants. Using a model of the relationship between land tenure arrangements and migration of household members, we examine whether those with greater tenure security and formal rental rights for agricultural or forest land are more likely to participate in labour markets outside the village. The finding that greater tenure security increases migration suggests that the current system of property rights, in which land is periodically reallocated, acts as a constraint on migration. This strengthens the case for further tenure reform for agricultural and forest land. |
| Keywords: | Land tenure security; land rental rights, rural-urban migration, China |
| JEL: | J61 O15 P32 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:lnd:wpaper:200837&r=ure |