nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2009‒01‒31
34 papers chosen by
Steve Ross
University of Connecticut

  1. Multigroup and multilevel residential segregation: the U.S. case, 1989-2005 By Ricardo Mora; Javier Ruiz-Castillo
  2. Rental Housing and Crime: The Role of Property Ownership and Management By Terance J. Rephann
  3. Does public housing occupancy increase unemployment? By Florence Goffette-Nagot; Claire Dujardin
  4. "Ripple Effects" and Forecasting Home Prices in Los Angeles, Las Vegas, and Phoenix By Rangan Gupta; Stephen M. Miller
  5. Does public housing occupancy increase unemployment? By Claire Dujardin; Florence Goffette-Nagot
  6. A Discrete-Choice Model Approach to Optimal Congestion Change By Strøm, Steinar; Vislie, Jon
  7. Momentum traders in the housing market: survey evidence and a search model By Monika Piazzesi; Martin Schneider
  8. Isolating changes in net residential segregation from the effect of demographic factors in the U.S., 1989-2005 By Ricardo Mora; Javier Ruiz-Castillo
  9. Estimating the Structural Demand for Irish Housing By Addison-Smyth, Diarmaid; McQuinn, Kieran; O' Reilly, Gerard
  10. Low-Skilled Immigration and the Expansion of Private Schools By Dottori, Davide; Shen, I-Ling
  11. Hotel Tax Collections and a Local Mega-Event By Dennis Coates
  12. Research universities and regional high-tech firm start-ups and exit By De Silva, Dakshina G.; McComb, Robert P.
  13. Spatial Analysis in Veterans Cemetery Location By Terance J. Rephann
  14. Gis, ricerca geografica e pianificazione urbanistica: una applicazione sul centro storico di Benevento By Giorgia, Iovino
  15. Contagion Effects of the Subprime Crisis in the European Nyse-Euronext Markets By Paulo Horta; Carlos Mendes; Isabel Vieira
  16. Decentralization, competition and the local tax mix: evidence from Flanders By Geys, Benny; Revelli Federico
  17. The First Global Financial Crisis of the 21st Century By Reinhart, Carmen; Felton, Andrew
  18. Payday Loans and Credit Cards: New Liquidity and Credit Scoring Puzzles? By Sumit Agarwal; Paige M. Skiba; Jeremy Tobacman
  19. Rivalry and Learning Among Clustered and Isolated Firms By Boari, Cristina; Fioretti, Guido; Odorici, Vincenza
  20. Charter school facilities finance: How CDFIs created the market, and how to stimulate future growth By Annie Donovan
  21. Bifurcations in Regional Migration Dynamics By Berliant, Marcus; Kung, Fan-chin
  22. Lending in low- and moderate-income neighborhoods in California: the performance of CRA lending during the subprime meltdown By Elizabeth Laderman; Carolina Reid
  23. Addressing the prevalence of real estate investments in the new markets tax credit program By Lauren Lambie-Hanson
  24. Growth, Foreign Direct Investment and Urban Concentration: Unbundling Spatial Lags By Steven Poelhekke; Frederick van der Ploeg
  25. Student sorting and bias in value added estimation: Selection on observables and unobservables By Jesse Rothstein
  26. Effets de voisinage et localisation : la ségrégation urbaine est-elle inéluctable ?. By Fabien Moizeau; Jean-Philippe Tropeano; Jean-Christophe Vergnaud
  27. Making the most of Norwegian schools By Romina Boarini
  28. Paying for school: an overview of charter school finance By Jonathan Kivell
  29. The economic and fiscal consequences of financial crises By Reinhart, Carmen
  30. Community Colleges and Local Economic Development By Terance J. Rephann
  31. Identifying and Forecasting House Price Dynamics in Ireland By D'Agostino, Antonello; McQuinn, Kieran; O' Reilly, Gerard
  32. Immigration and Inequality By David Card
  33. Lease Defaults and the Efficient Mitigation of Damages By Thomas J. Miceli; C. F. Sirmans; Geoffrey K. Turnbull
  34. Public infrastructure: definition, classification and measurement issues By Torrisi, Gianpiero

  1. By: Ricardo Mora; Javier Ruiz-Castillo
    Abstract: This paper presents a multigroup and multilevel approach to the study of residential segregation for the public school population in U.S. urban areas in 1989 and 2005. The multigroup approach includes Native Americans, Hispanics, Asians, blacks and whites. The multilevel approach distinguishes neighborhoods, cities, and regions, leading to notions of within-cities, between-cities, and between-regions residential segregation. Measures of these notions are computed using the Mutual Information, or M segregation index. The decomposability properties of the M index are exploited for two purposes: first, to identify the smallest set of regions in the U.S. which include similar states in terms of racial mix; and second, to establish the precise relationship between our measurements and the classic residential segregation literature that focuses on pairwise comparisons. Among the empirical results, three findings should be highlighted. First, the set of regions and racial groups for whom between-regions and between-cities segregation is important differs from the set for whom the within-cities component dominates. Second, minorities’ segregation declines but their population share goes up, while whites’ population share declines but their segregation index increases. Third, the portion of segregation disregarded by the traditional pairwise approach is large in all cases and increasing in the case of withincities segregation between whites and blacks.
    Keywords: Multigroup segregation, Multilevel segregation, Residential segregation, Mutual information, Entropy indices
    Date: 2008–12
  2. By: Terance J. Rephann (Weldon Cooper Center for Public Service)
    Abstract: This paper examines how residential rental property ownership characteristics affect crime. It examines the incidence and frequency of disturbances, assaults, and drug possession and distribution using police incident report data for privately owned rental properties. Results show that a small percentage of rental properties generate incident reports. Count model regressions indicate that the distance that the owner resides from the rental property, size of rental property holdings, tenant Section 8 voucher use, and neighborhood owner-occupied housing rates are associated with reported violations. The paper concludes with recommendations about local government policies that could help to reduce crime in rental housing.
    Keywords: crime; rental housing; management; count model
    JEL: R29 K42
    Date: 2008–01–30
  3. By: Florence Goffette-Nagot (GATE, University of Lyon, CNRS, ENS-LSH, Centre Léon Bérard, France); Claire Dujardin (Université catholique de Louvain, CORE)
    Abstract: In order to test for the effect of public housing occupancy on unemployment, we estimate a simultaneous probit model of unemployment and public housing. On a first sample, we instrument public housing with the gender composition of children. On a second sample, the instrument is the share of public housing at the city level. We also perform a robustness check that consists in measuring the correlation between unobservables that could explain the effect of public housing on unemployment. As the corresponding level of correlation is low, this check reinforces our result of no effect of public housing on unemployment.
    Keywords: Public housing, unemployment, simultaneous probit models, instrumental variables
    JEL: R2 J64
    Date: 2008
  4. By: Rangan Gupta (University of Pretoria); Stephen M. Miller (University of Connecticut and University of Nevada, Las Vegas)
    Abstract: We examine the time-series relationship between housing prices in Los Angeles, Las Vegas, and Phoenix. First, temporal Granger causality tests reveal that Los Angeles housing prices cause housing prices in Las Vegas (directly) and Phoenix (indirectly). In addition, Las Vegas housing prices cause housing prices in Phoenix. Los Angeles housing prices prove exogenous in a temporal sense and Phoenix housing prices do not cause prices in the other two markets. Second, we calculate out-of-sample forecasts in each market, using various vector autoregessive (VAR) and vector error-correction (VEC) models, as well as Bayesian, spatial, and causality versions of these models with various priors. Different specifications provide superior forecasts in the different cities. Finally, we consider the ability of theses time-series models to provide accurate out-of-sample predictions of turning points in housing prices that occurred in 2006:Q4. Recursive forecasts, where the sample is updated each quarter, provide reasonably good forecasts of turning points.
    Keywords: Ripple effect, housing prices, forecasting
    JEL: C32 R31
    Date: 2009–01
  5. By: Claire Dujardin (CORE - Center for Operations Research and Econometrics - Université Catholique de Louvain); Florence Goffette-Nagot (GATE - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines)
    Abstract: In order to test for the effect of public housing occupancy on unemployment, we estimate a simultaneous probit model of unemployment and public housing. On a first sample, we instrument public housing with the gender composition of children. On a second sample, the instrument is the share of public housing at the city level. We also perform a robustness check that consists in measuring the correlation between unobservables that could explain the effect of public housing on unemployment. As the corresponding level of correlation is low, this check reinforces our result of no effect of public housing on unemployment.
    Keywords: Public housing, unemployment, simultaneous probit models, instrumental variables
    Date: 2008
  6. By: Strøm, Steinar (University of Turin); Vislie, Jon (Dept. of Economics, University of Oslo)
    Abstract: We model the choice of transportation mode in a simplified Hotelling-like city, with a fixed number of total travellers, fixed road capacity and with no trade-off between when to travel and the time spent in a queue. A person that chooses to take her own car will inflict a congestion cost on all travellers. To get the travellers to internalise these external costs, a congestion charge has to be imposed. We derive an optimal congestion charge within in a discrete-choice framework, with a benevolent government maximising expected tax-adjusted social surplus. The congestion charge to be imposed on private driving, beyond the opportunity cost – equal to the fare on public transportation – is shown to be a weighted average of a Ramsey-like term (capturing the goal to raise public revenue) and a Pigou-term capturing the environmental cost of a person’s private driving. This property is similar to the optimal environmental tax derived by Sandmo (1975). However, the behavioural assumption underlying the present framework is quite different from the standard theory of consumer choice adopted by Sandmo.
    Keywords: Discrete choice; urban transport; congestion; congestion charges
    JEL: D11 H23 L13 L91
    Date: 2008–04–10
  7. By: Monika Piazzesi; Martin Schneider
    Abstract: This paper studies household beliefs during the recent US housing boom. The first part presents evidence from the Michigan Survey of Consumers. To characterize the heterogeneity in households' views about housing and the economy, we perform a cluster analysis on survey responses at different stages of the boom. The estimation always finds a small cluster of households who believe it is a good time to buy a house because house prices will rise further. The size of this "momentum" cluster doubled towards the end of the boom. The second part of the paper provides a simple search model of the housing market to show how a small number of optimistic investors can have a large effect on prices without buying a large share of the housing stock.
    JEL: E0 G1 G12 R2 R21 R31
    Date: 2009–01
  8. By: Ricardo Mora; Javier Ruiz-Castillo
    Abstract: This paper investigates residential segregation trends net of changes in the racial and the neighborhood marginal population distributions. It follows two alternative strategies. First, it uses indices of two types. Indices of the first type emphasize an evenness segregation concept and are only invariant to changes in the marginal distribution by race, while those of the second type emphasize a representativeness segregation concept and are only invariant to changes in the marginal distribution by neighborhood. Second, it uses the mutual information, or the M index that is not invariant to changes in either of the marginal distributions but admits two decompositions. Each of the decompositions isolates a term which (a) is invariant to changes in the marginal distribution of one of the two variables and the entropy, or diversity, of the other, and (b) reflects changes in either an evenness or a representativeness segregation notion. According to the M index, net residential segregation in both an evenness and a representative sense considerably decreases for the U.S. public school student population in urban areas in 1989-2005. Because of their failure to control for changes in the spatial entropy, invariant indices of the first type register a smaller decline in the evenness sense, while because of their failure to control for changes in the racial entropy invariant indices of the second type register an increase in residential segregation in the representativeness sense. Within the evenness perspective, all racial groups experiment a reduction in net segregation which is greatest for Hispanics.
    Keywords: Multigroup segregation, Multilevel segregation, Residential segregation, Mutual information, Entropy indices, Invariance properties, Econometric models
    Date: 2008–12
  9. By: Addison-Smyth, Diarmaid (Central Bank and Financial Services Authority of Ireland); McQuinn, Kieran (Central Bank and Financial Services Authority of Ireland); O' Reilly, Gerard (Central Bank and Financial Services Authority of Ireland)
    Abstract: After 10 years of unprecedented increases in both prices and activity levels, the Irish housing market appears to be entering a period of some uncertainty. In the early part of 2007, Irish house prices, for the first time in recent history, experienced negative growth rates - leading indicators within the housing sector would suggest that house building is already beginning to contract, with future levels expected to be somewhat below the record level of construction in 2006. The sustained increase in housing construction prompted by the rapid increase in prices has resulted in the Irish construction sector assuming a position of considerable importance within the overall economy. Arguably, any significant slowdown in housing activity could have far-reaching domestic consequences. In this paper, we use a recently developed model of the housing sector to gauge what the structural level of demand is for Irish housing.
    Date: 2008–03
  10. By: Dottori, Davide (Catholic University of Louvain); Shen, I-Ling (University of Geneva)
    Abstract: This paper provides a political-economic model to study the impact of low-skilled immigration on the host country's education system, which is characterized by sources of school funding, the average expenditure per pupil, and the type of parents who are more likely to send their children to publicly or privately funded schools. Four main effects of immigration are considered: (1) greater congestion in public schools; (2) a lower average tax base for education funding; (3) reduced wages for low-skilled workers and so more dependence by low-skilled locals on public education; (4) a greater skill premium, which makes it easier for high-skilled locals to afford private education for their children, and hence weakens their support for financing public school. It is found that when the size of low-skilled immigrants is large, the education regime tends to become more segregated with wealthier locals more likely to opt out of the public system into private schools. The fertility differential between high and low-skilled locals increases due to a quantity/quality trade-off. The theoretical predictions are consistent with empirical evidence from both the U.S. census data and the OECD Programme for International Student Assessment (2003).
    Keywords: voting, taxes and subsidies, education, fertility, migration
    JEL: H42 H52 I21 D72 O15
    Date: 2009–01
  11. By: Dennis Coates (Department of Economics, University of Maryland, Baltimore County)
    Abstract: Cities compete for the opportunity to host events that draw large crowds of visitors. The argument is that these visitors bring with them lots of spending in hotels and restaurants, providing jobs for workers in the service industry, and generating sales tax revenues for the city. In many places, there is also a separate tax on hotel and motel accommodations. Indeed, taxes on accommodations are one example of jurisdictions exporting their tax burdens, as people who pay the accommodations taxes are visitors. This paper looks for the beneficial impact of a megaevent by focusing on the accommodations tax collections in and around the jurisdiction that hosts the event.
    Keywords: sports, South Carolina, NASCAR, college football, tourism
    JEL: L83
    Date: 2009–01
  12. By: De Silva, Dakshina G.; McComb, Robert P.
    Abstract: If localized knowledge spillovers are present in the university setting, higher rates of both start-ups and/or survival than in the broader economy would be observed in areas that are geographically proximate to the university. Using a fully-disclosed Quarterly Census of Employment and Wages for Texas for the years 1999:3-2006:2, this paper analyzes start-ups and exit rates for high-tech firms in Texas. We find that there is evidence that the presence of a research institution will affect the likelihood of technology start-ups. However, results suggest that geographic proximity to knowledge centers does not reduce hazard rates.
    Keywords: Entry and Survival; R & D; Regional; Urban; and Rural Analyses.
    JEL: R53 O18 R12
    Date: 2009–01–26
  13. By: Terance J. Rephann (Weldon Cooper Center for Public Service)
    Abstract: The National Cemetery Administration of the U.S. Department of Veterans Affairs has funded a relatively large number of new national and state veterans cemeteries in recent years to meet the burial needs of a growing number of aging veterans. This paper examines the history of this agency and the evolving role that spatial analysis has played in identifying appropriate locations for new cemeteries. It also examines some of the spatial assumptions used in cemetery planning and tests these assumptions in Virginia. Data from two Virginia state veterans cemeteries are examined to determine appropriate veterans cemetery service area boundaries. Finally, a location-allocation model is used to determine the best locations for a new veterans cemetery in Virginia.
    Keywords: cemetery; veterans; location
    JEL: R53 J11
    Date: 2008–04–26
  14. By: Giorgia, Iovino (CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy)
    Abstract: In this paper we report some results related to a new Geographical Information System for the historical center of the town of Benevento, created with financial support from the Region of Campania (POP action 5.4.2 for cataloguing and appreciation of cultural assets). Supplementing extensive official data sources with our own direct investigations, we organize the resulting information into three main archives: territorial, historico-artistic, socio-economic. Each of these archives is in turn divided in a series of files that comprise of graphic and alphanumeric databases on specific topics. For example, the territorial archive includes: boundaries, urban planning, territorial divisions, land register, and so on; whereas the socio-economic archive includes databases on population, houses, commercial activities, building use, traffic density, etc., organized according to historical periods and geographical scales. We provide many examples to illustrate how the specific architecture of this GIS facilitates the search of thematic pathways, which can be used advantageously not only to support territorial planning for diverse purposes (such as regulation of economic activities and public services or re-qualification of cultural heritage), but it is also valuable for scholarly research and scientific analysis.
    Keywords: GIS; urban planning; historic city centre; cultural assets
    Date: 2008–12–30
  15. By: Paulo Horta (Comissão do Mercado de Valores Mobiliários); Carlos Mendes (UNINOVA - DEE, Universidade Nova de Lisboa); Isabel Vieira (Universidade de Evora, Departamento de Gestão, CEFAGE-UE)
    Abstract: This paper presents three tests of contagion of the US subprime crisis to the European markets of the NYSE-Euronext group. Copula models are used to analyse dependence structures between the US’s and the other markets in the sample, in the pre-crisis and in the subprime crisis periods. The first test assesses the existence of contagion on the relevant markets’ indices, the second checks the homogeneity of contagion intensities, and the third compares contagion in financial and in industrial sectors’ indices. Results suggest that contagion exists, and is equally felt, in most markets and that investors anticipated a spreading of the financial crisis to the real economy, long before such dissemination was observable.
    Keywords: Financial contagion; subprime crisis; stock markets; copula theory.
    JEL: F30 G14 G15
    Date: 2009
  16. By: Geys, Benny; Revelli Federico (University of Turin)
    Abstract: While numerous studies analyse the determinants of the level and composition of local public spending, little attention has been given to what shapes the choice of tax instruments used by decentralised governments. This paper bridges this gap by investigating the economic and political determinants of the local tax mix in the Flemish region of Belgium, where local governments enjoy extensive fiscal autonomy and have a wide variety of tax instruments available. Specifically, using panel data of 289 Flemish municipalities over the period 1995-2002, we estimate a system of five reduced-form tax revenue-share equations (income, property, business, user fees and other own revenues). The analysis highlights a number of important economic determinants of the observed tax mix (especially the tax base and revenue requirement), while political variables turn out to play a relatively minor role. Finally, the analysis uncovers virtually no evidence of inter-municipal dependence in the determination of the local tax mix.
    Date: 2009–01
  17. By: Reinhart, Carmen; Felton, Andrew
    Abstract: Global financial markets are showing strains on a scale and scope not witnessed in the past three-quarters of a century. What started with elevated losses on U.S.-subprime mortgages has spread beyond the borders of the United States and the confines of the mortgage market. Many risk spreads have ballooned, liquidity in some market segments has dried up, and large complex financial institutions have admitted significant losses. Bank runs are no longer the subject exclusively of history.These events have challenged policymakers, and the responses have varied across region. The European Central Bank has injected reserves in unprecedented volumes. The Bank of England participated in the bail-out and, ultimately, the nationalization of a depository, Northern Rock. The U.S. Federal Reserve has introduced a variety of new facilities and extended its support beyond the depository sector. These events have also challenged economists to explain why the crisis developed, how it is unfolding, and what can be done. This volume compiles contributions by leading economists in VoxEU over the past year that attempt to answer these questions. We have grouped these contributions into three sections corresponding to those three critical questions.
    Keywords: sub-prime; financial crises; monertary policy; real estate prices;default
    JEL: E4
    Date: 2008–07
  18. By: Sumit Agarwal; Paige M. Skiba; Jeremy Tobacman
    Abstract: Using a unique dataset matched at the individual level from two administrative sources, we examine household choices between liabilities and assess the informational content of prime and subprime credit scores in the consumer credit market. First, more specifically, we assess consumers' effectiveness at prioritizing use of their lowest-cost credit option. We find that most borrowers from one payday lender who also have a credit card from a major credit card issuer have substantial credit card liquidity on the days they take out their payday loans. This is costly because payday loans have annualized interest rates of at least several hundred percent, though perhaps partly explained by the fact that borrowers have experienced substantial declines in credit card liquidity in the year leading up to the payday loan. Second, we show that FICO scores and Teletrack scores have independent information and are specialized for the types of lending where they are used. Teletrack scores have eight times the predictive power for payday loan default as FICO scores. We also show that prime lenders should value information about their borrowers' subprime activity. Taking out a payday loan predicts nearly a doubling in the probability of serious credit card delinquency over the next year.
    JEL: D14 D82
    Date: 2009–01
  19. By: Boari, Cristina; Fioretti, Guido; Odorici, Vincenza
    Abstract: In this paper explore the relationships between rivalry and geographical proximity at the very level of contacts between individual firms. In particular, we wish to highlight the influence of geographical proximity on rival identification, on the comparison of their knowledge, and on the consequent elaboration of a strategy. In order to reproduce the interactions between firms, we made use of an agent-based model (ABM) where the strategic choices of rival firms are derived from general assumptions on competitive behavior and learning processes. Aim of the model is to investigate the co-evolution of firms' knowledge, strategies and performances. Substantial empirical evidences claim that firms located in geographical clusters are more likely to learn and innovate than isolated firms.
    Keywords: Industrial Clusters; Industrial Districts; Knowledge Development; Rivalry
    JEL: L25 R19 R39
    Date: 2008–12–31
  20. By: Annie Donovan
    Abstract: This working paper examines the role that Community Development Financial Institutions (CDFIs) play in supporting the successful growth of public charter schools.
    Keywords: Education - Economic aspects
    Date: 2008
  21. By: Berliant, Marcus; Kung, Fan-chin
    Abstract: The tomahawk bifurcation is used by Fujita et al. (1999) in a model with two regions to explain the formation of a core-periphery urban pattern from an initial uniform distribution. Baldwin et al. (2003) show that the tomahawk bifurcation disappears when the two regions have an uneven population of immobile agricultural workers. Thus, the appearance of this type of bifurcation is the result of assumed exogenous model symmetry. We provide a general analysis in a regional model of the class of bifurcations that have crossing equilibrium loci, including the tomahawk bifurcation, by examining arbitrary smooth parameter paths in a higher dimensional parameter space. We find that, in a parameter space satisfying a mild rank condition, generically in all parameter paths this class of bifurcations does not appear. In other words, conclusions drawn from the use of this bifurcation to generate a core-periphery pattern are not robust. Generically, this class of bifurcations is a myth, an urban legend.
    Keywords: Bifurcation; Genericity Analysis; Migration Dynamics
    JEL: F12 C61 R23
    Date: 2009–01–28
  22. By: Elizabeth Laderman; Carolina Reid
    Keywords: Bank loans ; Community development
    Date: 2008
  23. By: Lauren Lambie-Hanson
    Keywords: Real estate investment ; Community development
    Date: 2008
  24. By: Steven Poelhekke; Frederick van der Ploeg
    Abstract: Cross-country regressions suggest that urbanization and FDI are important drivers of growth However, it is not clear that primacy eventually hurts growth performance. Since it is tough to interpret cross-country growth regressions, we provide detailed evidence on the determinants of outward FDI from the US. FDI is higher in countries that are close to the US and have good institutions, well developed financial systems, a high road density, a high income per capita and substantial natural resource exports. Countries also attract more FDI if they have more mediumsized cities and primacy is not too large. We show that good institutions in neighbouring countries are important drivers of FDI. FDI is higher if neighbours suffer from primacy. However, FDI is attracted if surrounding countries have fewer cities, restrictions on international trade and low market potential (income per capita). We tentatively conclude that cities are important drivers of FDI and growth and unbundling spatial lags matters. Robustness is verified by re-estimating our regressions with fixed effects and for the sample of OECD countries. 
    Keywords: growth; foreign investment; cities; urbanization; primacy; spatial lags; spatialautoregression; surrounding market potential; fragmentation; export-platform
    JEL: C31 F21 F23 F43 O47
    Date: 2009–01
  25. By: Jesse Rothstein
    Abstract: Non-random assignment of students to teachers can bias value added estimates of teachers' causal effects. Rothstein (2008a, b) shows that typical value added models indicate large counter-factual effects of 5th grade teachers on students' 4th grade learning, indicating that classroom assignments are far from random. This paper quantifies the resulting biases in estimates of 5th grade teachers' causal effects from several value added models, under varying assumptions about the assignment process. If assignments are assumed to depend only on observables, the most commonly used specifications are subject to important bias but other feasible specifications are nearly free of bias. I also consider the case where assignments depend on unobserved variables. I use the across-classroom variance of observables to calibrate several models of the sorting process. Results indicate that even the best feasible value added models may be substantially biased, with the magnitude of the bias depending on the amount of information available for use in classroom assignments.
    JEL: C12 C52 I21 J33 J45
    Date: 2009–01
  26. By: Fabien Moizeau (CREM - Université de Rennes1); Jean-Philippe Tropeano (GAEL (INRA) - Université Pierre Mendès France); Jean-Christophe Vergnaud (Centre d'Economie de la Sorbonne)
    Abstract: In this paper, we provide a theoretical framework for exploring the consequences of neighborhood informational effects - identified as role models - so as to deduce the urban configuration. With this aim, we have developed an overlapping generations model of community formation. When young, an individual must choose whether to invest in education or not. The crucial feature of our framework is that children assess the economic pay-off of education by observing the experience of the older genneration residing in their neighborhood. When an adult, an individual who cares about her offspring's income must choose the family's location. We show that there exist two urban configurations. (i) An integrated city may occur where the socio-economic composition of each neighborhood makes its inhabitants well informed and therefore willing to invest in education. (ii) A segregated city may emerge where socio-economic segreegation makes the inhabitants of poor communities be misinformed about the benefits of education.
    Keywords: Credibility, commitment, monetary policy, fiscal policy, policy mix.
    JEL: D31 D82 I2 J24 R1
    Date: 2008–09
  27. By: Romina Boarini
    Abstract: Traditionally, the Norwegian compulsory education system has focused strongly on the linked goals of equal opportunities to learn, comprehensive and inclusive education. While some of these objectives have been met successfully, a number of educational outcomes, notably measures of pupil performance at the end of compulsory schooling, are unsatisfactory. Given the significant resources devoted to education, Norway’s modest performance on certain measures suggests that resources are used inefficiently. There are many possible routes to improve efficiency. This paper focuses on teaching quality, school autonomy, accountability and the level and composition of spending. Consistent policy actions should be taken in these areas, taking into account the multi–level structure of governance of the Norwegian education system.<P>Optimiser la performance des établissements scolaires norvégiens<BR>Le système de la scolarité obligatoire en Norvège met traditionnellement l’accent sur deux objectifs liés : l’égalité des chances face à la formation et l’absence de rupture et de sélection dans le parcours éducatif. La Norvège enregistre un certain nombre de succès sur ces deux fronts ; mais certains résultats comme la performance des élèves mesurée en fin de cycle obligatoire laissent à désirer. Compte tenu du volume important de ressources consacrées à l’éducation, la modestie des résultats obtenus par rapport à certaines mesures suggère une utilisation inefficiente des ressources. Plusieurs voies sont envisageables pour améliorer la situation. La présente étude s’intéresse à la qualité de l’enseignement, à l’autonomie des établissements, à la transparence, ainsi qu’au niveau et à la composition des dépenses. Dans tous ces domaines, des mesures publiques cohérentes s’imposent, surtout si l’on prend en compte les niveaux multiples de gouvernance au sein du système éducatif norvégien.
    Keywords: Norway, Norvège, efficacité, cost-efficiency, PISA data, données PISA, school governance, gouvernance des écoles
    JEL: I21 I28
    Date: 2009–01–26
  28. By: Jonathan Kivell
    Abstract: This paper examines the current state of the market for charter school finance and will focus specifically on programs and financing structures for school facilities.
    Keywords: Education - Economic aspects
    Date: 2008
  29. By: Reinhart, Carmen
    Abstract: Financial crises are historically associated with the “4 deadly D’s”: Sharp economic downturns follow banking crises; with government revenues dragged down, fiscal deficits worsen; deficits lead to debt; as debt piles up rating downgrades follow. For the most fortunate countries, the crisis does not lead to the deadliest D: default, but for many it has.
    Keywords: financial crises; unemployment; debt; deficit; housing prices
    JEL: F0 E6
    Date: 2009–01–26
  30. By: Terance J. Rephann (Weldon Cooper Center for Public Service)
    Abstract: Community colleges are an important and growing segment of the U.S. higher education market. However, few ex post studies of their local economic development impacts are available. This paper presents a quasi-experimental control group analysis of a group of twenty-one counties where community colleges were established during the 1970s and 1980s. It shows that community college counties have a stimulating effect on the state and local government employment sector. However, it does not confirm the existence of more widespread earning and employment impacts.
    Keywords: community colleges; economic development; quasi-experimental
    JEL: R11 R53 I23
    Date: 2008–11–15
  31. By: D'Agostino, Antonello (Central Bank and Financial Services Authority of Ireland); McQuinn, Kieran (Central Bank and Financial Services Authority of Ireland); O' Reilly, Gerard (Central Bank and Financial Services Authority of Ireland)
    Abstract: While increased attention has, of late, focussed on models of house prices, few,if any, studies have examined house prices from a purely forecasting perspective. However, the need for accurate and timely forecasts of house prices has grown as the rate of house price inflation is more and more important to policy discussions such as those governing decisions on inflation. This is further underscored with the development of financial markets products based on houseprice index. In this paper, we propose that a simple univariate moving average (MA) model can provide optimal forecasts of Irish house price inflation when compared with a suite of standard forecasting and structural house price models. This result echoes similar recent findings for forecasts of US inflation rate.
    Date: 2008–06
  32. By: David Card (University of California Berkeley)
    Abstract: Immigration is often viewed as a proximate cause of the rising wage gap between high- and low-skilled workers. Nevertheless, there is controversy over the appropriate theoretical and empirical framework for measuring the presumed effect, and over the precise magnitudes involved. This paper offers an overview and synthesis of existing knowledge on the relationship between immigration and inequality, focusing on evidence from cross-city comparisons in the U.S. While some researchers have claimed that a cross-city research design is inherently flawed, I argue that the evidence from cross-city comparisons is remarkably consistent with recent findings based on aggregate time series data. In particular, cross-city and aggregate time series comparisons provide support for three key conclusions: (1) workers with below high school education are perfect substitutes for those with a high school education; (2) “high school equivalent” and “college equivalent” workers are imperfect substitutes, with an elasticity of substitution on the order of 2; (3) within education groups, immigrants and natives are imperfect substitutes. Together these results imply that the average impacts of recent immigrant inflows on the relative wages of U.S. natives are small. The effects on overall wage inequality (including natives and immigrants) are larger, reflecting the concentration of immigrants in the tails of the skill distribution and higher residual inequality among immigrants than natives. Even so, immigration accounts for a small share (5%) of the increase in U.S. wage inequality between 1980 and 2000.
    Date: 2009–01
  33. By: Thomas J. Miceli (University of Connecticut); C. F. Sirmans (Florida State University); Geoffrey K. Turnbull (Georgia State University)
    Abstract: The traditional law of leases imposed no duty on landlords to mitigate damages in the event of tenant breach, whereas the modern law of leases does. An economic model of leases, in which absentee tenants may or may not intend to breach, shows that the traditional rule promotes tenant investment in the property by discouraging landlord entry. In contrast, the modern rule prevents the property from being left idle by encouraging landlords to enter and re-let abandoned property. The model reflects the historic use of the traditional rule for agricultural leases, where absentee use was valuable, and the emergence of the modern rule for residential leases, where the primary use entails continuous occupation.
    Keywords: contracts, land development, leases, mitigation of damages
    JEL: K11 K12 O18 R11
    Date: 2009–01
  34. By: Torrisi, Gianpiero
    Abstract: Beginning from the end of the 1980s many studies analysing the relation between infrastructures endowment and economic development have been realised. A general consensus is achieved around the idea that basic infrastructure facilities are important features related to economic performance, although both magnitude and causality direction are debated. A peculiar feature of these studies is that, across them, different empirical and theoretical entities are referred to infrastructure. Although the vast body of literature on infrastructures economic impact have been largely reviewed less attention have been paid to the term infrastructure per se. This article, aiming to provide a helpful instrument to critically interpret the existing literature, zooms in on infrastructure definition and then reviews different categories of infrastructures utilised in literature, namely: personal, institutional, material, immaterial, economic, social, core and not-core, basic and complementary, network, nucleus, and territory infrastructures. The final part deals with problems related to infrastructures measurement describing some financial-based measures and physical-based measures highlighting that both measures - due to economic and strictly computational problems - present pitfalls so that, in turn, both types of measures have critical aspects to be considered when interpreting results concerning infrastructures.
    Keywords: infrastructure; public expenditure
    JEL: H54 H76
    Date: 2009–01

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