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on Urban and Real Estate Economics |
| By: | Ernest Miguelez (Faculty of Economics, University of Barcelona); Rosina Moreno (Faculty of Economics, University of Barcelona) |
| Abstract: | TWe investigate the importance of the labour mobility of inventors, as well as the scale, extent and density of their collaborative research networks, for regional innovation outcomes. To do so, we apply a knowledge production function framework at the regional level and include inventors’ networks and their labour mobility as regressors. Our empirical approach takes full account of spatial interactions by estimating a spatial lag model together, where necessary, with a spatial error model. In addition, standard errors are calculated using spatial heteroskedasticity and autocorrelation consistent estimators to ensure their robustness in the presence of spatial error autocorrelation and heteroskedasticity of unknown form. Our results point to the existence of a robust positive correlation between intra-regional labour mobility and regional innovation, whilst the relationship with networks is less clear. However, networking across regions positively correlates with a region’s innovation intensity. |
| Keywords: | Speed Limits; inventors’ mobility, networks of co-inventors, knowledge production function, spatial econometrics, European regions |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201001&r=ure |
| By: | Machin, Stephen (University College London); Salvanes, Kjell G. (Norwegian School of Economics and Business Administration) |
| Abstract: | Among policymakers, educators and economists there remains a strong, sometimes heated, debate on the extent to which good schools matter. This is seen, for instance, in the strong trend towards establishing accountability systems in education in many countries across the world. In this paper, in line with some recent studies, we value school quality using house prices. We, however, adopt a rather different approach to other work, using a policy experiment regarding pupils' choice to attend high schools to identify the relationship between house prices and school performance. We exploit a change in school choice policy that took place in Oslo county in 1997, where the school authorities opened up the possibility for every pupil to apply to any of the high schools in the county without having to live in the school's catchment area (the rule that applied before 1997). Our estimates show evidence that parents substantially value better performing schools since the sensitivity of housing valuations to school performance falls significantly by over 50% following the school choice reform. |
| Keywords: | house prices, school performance, school reform |
| JEL: | I2 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4719&r=ure |
| By: | Rebecca Allen (Depatment of Quantitative Social Science - Institute of Education, University of London.) |
| Abstract: | Government and researchers use school performance measures such as contextual value-added to claim that giving schools autonomy from local authority control produces superior pupil performance in GCSE examinations. This paper explores the extent to which inferring causality between autonomy and pupil achievement is reasonable given that pupils are not randomly assigned to schools and schools do not randomly acquire autonomous status. Rich administrative data and the Longitudinal Survey of Young People in England are used to evaluate whether CVA-style inferences are confounded by pupil characteristics that explain both the chances of attending an autonomous school and academic achievement. The assignment of grant-maintained (and thus now foundation) status through a vote of parents is used to compare school that just did, and just did not, gain autonomy over a decade ago. These alternative estimation strategies suggest there is little evidence that foundation status casually yields superior school performance. |
| Keywords: | school autonomy, school effectiveness, foundation schools |
| JEL: | I21 I28 |
| Date: | 2010–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:qss:dqsswp:1002&r=ure |
| By: | Holly, Sean (University of Cambridge); Pesaran, Hashem (University of Cambridge); Yamagata, Takashi (University of York) |
| Abstract: | This paper provides a method for the analysis of the spatial and temporal diffusion of shocks in a dynamic system. We use changes in real house prices within the UK economy at the level of regions to illustrate its use. Adjustment to shocks involves both a region specific and a spatial effect. Shocks to a dominant region – London – are propagated contemporaneously and spatially to other regions. They in turn impact on other regions with a delay. We allow for lagged effects to echo back to the dominant region. London in turn is influenced by international developments through its link to New York and other financial centers. It is shown that New York house prices have a direct effect on London house prices. We analyse the effect of shocks using generalised spatio-temporal impulse responses. These highlight the diffusion of shocks both over time (as with the conventional impulse responses) and over space. |
| Keywords: | house prices, cross sectional dependence, spatial dependence |
| JEL: | C21 C23 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4694&r=ure |
| By: | Tetsuya Shimomura; Tadashi Matsumoto |
| Abstract: | Globalisation and subsequent competition among cities have triggered a profound change in the mode of the governance of cities. It is often described as a shift from a managerial mode of governance, which had been primarily concerned with provision of social welfare services and control of private activities, to that of entrepreneurialism, strongly characterised by a pro-economic growth strategic approach. Subsequently, attractiveness has been increasingly regarded as a key factor for urban policies, since attractive cities are competitive and able to attract newly-emerging businesses and highly-skilled workforces that are the driving force in the global economy. Today, enhancing urban attractiveness is high on the agenda of urban policy in many OECD countries. A city?s attractiveness is determined by a wide range of elements. The OECD report “Competitive Cities: A New Entrepreneurial Paradigm in Spatial Development” (OECD, 2007) analysed various elements contributing to urban attractiveness (e.g. flagship redevelopment, cultural facilities, international events, etc.). Among various findings, it emphasises that it is important for a city to enhance its distinctiveness by identifying and building up urban assets that are unique to the city. In particular, many cities have recognised that attractive physical environment of cities can enhance their uniqueness and distinctiveness. |
| JEL: | H41 H76 R11 R33 R53 R58 |
| Date: | 2010–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaab:2010/1-en&r=ure |
| By: | Falch, Torberg; Fischer, Justina AV |
| Abstract: | Using a panel of international student test scores 1980 – 2000 (PISA and TIMSS), panel fixed effects estimates suggest that government spending decentralization is conducive to student performance. The effect does not appear to be mediated through levels of educational spending. |
| Keywords: | Fiscal decentralization; Student achievement; federalism; PISA; TIMSS; education; school quality |
| JEL: | H40 I20 H20 C33 |
| Date: | 2010–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:20331&r=ure |
| By: | Boucher, Vincent (University of Montreal); Bramoullé, Yann (Université Laval); Djebbari, Habiba (Université Laval); Fortin, Bernard (Université Laval) |
| Abstract: | We provide the first empirical application of a new approach proposed by Lee (2007) to estimate peer effects in a linear-in-means model. This approach allows to control for group-level unobservables and to solve the reflection problem. We investigate peer effects in student achievement in Mathematics, Science, French and History in Quebec secondary schools. We estimate the model using maximum likelihood and instrumental variables methods. We find evidence of peer effects. The endogenous peer effect is positive, when significant, and some contextual peer effects matter. Using calibrated Monte Carlo simulations, we find that high dispersion in group sizes helps with potential issues of weak identification. |
| Keywords: | reflection problem, student achievement, peer effects |
| JEL: | C31 I20 Z13 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4723&r=ure |
| By: | López Bóo, Florencia (Inter-American Development Bank) |
| Abstract: | This paper examines the effect of labor market opportunities on schooling-employment decisions in 12 urban areas in Argentina over 12 years, emphasizing the recession/crisis years 1998-2002. The effects of macroeconomic swings on schooling decisions are examined with a focus on whether the income or substitution effect dominates as macroeconomic conditions change. I demonstrate that over "typical" years deteriorating job rates (or wages) increase the probability of attending school and decrease the probability of combining work and school, particularly for boys. After controlling for household and individual characteristics I find that the probability of being in school for secondary school youth was about 6 percentage points higher in 2002 than in 1998 (before the recession started). In fact, a 10 percent decrease in the job rate alone has been responsible for a 5.4 percentage point rise in the probability of school attendance since 2000. This effect is attenuated during the 2002 crisis when household expectations change in response to shocks. These estimates allow for the fact that a new Federal Education Law (FEL) in 1996 extended mandatory education to 10 years and might have affected schooling outcomes. |
| Keywords: | schooling decision, macroeconomic shocks, local labor market opportunities |
| JEL: | I21 J31 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4692&r=ure |
| By: | Per Kageson |
| Abstract: | Many governments in different parts of the world are investing in high speed rail. Some of them do so thinking that it will be an important part of climate change mitigation. Intercity traffic over medium distances is particularly interesting in the environmental context as it constitutes the only transport segment where aircraft, trains, coaches and cars naturally compete for market shares. This report calculates the effect on emissions from building a new high speed link that connects two major cities located 500 km apart. It assumes that emissions from new vehicles and aircraft in 2025 can be used as a proxy for the emissions during a 50 year investment depreciation period. The emissions from the marginal production of electricity, used by rail and electric vehicles, are estimated to amount on average to 530 gram per kWh for the entire period. Fuels used by road vehicles are assumed to be on average 80 percent fossil and 20 per cent renewable (with a 65% carbon efficiency in the latter case). |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaaa:2009/28-en&r=ure |
| By: | Robin Lindsey |
| Abstract: | This paper reviews the potential benefits from separating cars and trucks onto different lanes or roads while treating road infrastructure as given. U.S. studies of mixed traffic operations, lane restrictions and differential speed limits do not provide consistent evidence whether separating cars and trucks either facilitates traffic flows or reduces accident rates. Analysis with an economic model reveals that the potential benefits depend on the relative volumes of cars and trucks, capacity indivisibilities and the impedance and safety hazard that each vehicle type imposes. Differentiated tolls can support efficient allocations of cars and trucks between lanes. Lane access restrictions are much more limited in effectiveness. Toll lanes that are dedicated to either cars or trucks are a potentially attractive hybrid policy. Intelligent Transportation Systems (ITS) technology can help to improve safety and travel time reliability, and help drivers select between tolled and untolled routes. |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaaa:2009/25-en&r=ure |
| By: | de Haan, Jan; Diewert, Erwin; Hendriks, Rens |
| Abstract: | The paper uses hedonic regression techniques in order to decompose the price of a house into land and structure components using readily available real estate sales data for a Dutch city. In order to get sensible results, it proved necessary to use a nonlinear regression model using data that covered multiple time periods. It also proved to be necessary to impose some monotonicity restrictions on the price of land and structures. The results of the additive model were compared with the results of a traditional logarithmic hedonic regression model. |
| Keywords: | Property price indexes, hedonic regressions, repeat sales method, rolling year indexes, Fisher ideal indexes. |
| JEL: | C2 C23 C43 D12 E31 R21 |
| Date: | 2010–01–28 |
| URL: | http://d.repec.org/n?u=RePEc:ubc:bricol:erwin_diewert-2010-1&r=ure |
| By: | Reiner, Christian (University of Salzburg) |
| Abstract: | This article focuses on the role of Technology Transfer Offices (TTOs) in regional development in three Austrian regions that represent different types of regional economies. TTOs can be defined as “bridging institutions” between academia and business. The value added by this approach emerges due to empirical results demonstrating that the variety of TTO functions and their respective spatial-profile of activities depend heavily on the regional context. Regional economic structure and regional policy systematically shape the spatial profile of TTO activities. The distinction between active and passive TTOs emerged as an important one regarding their potential regional economic development impact. While passive TTOs merely facilitate already existing contacts of the academic staff, active TTOs generate new university-industry linkages. These additionally created contacts are heavily biased towards the regional level. Intellectual property rights (IPR)-related TTO activities show a rather weak regional impact. This might prove problematic for policy makers that foster the patent-oriented commercialization of knowledge as a means to intensify knowledge spillovers from the universities to regional or national firms. |
| Keywords: | Universities; Technology transfer offices; regional innovation systems; regional policy; Austria |
| JEL: | I23 I28 O33 O34 R11 R58 |
| Date: | 2010–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:sbgwpe:2010_005&r=ure |
| By: | Gábor Békés; Péter Harasztosi |
| Abstract: | Firms may benefit from proximity to each other due to the existence of several externalities. The productivity premia of firms located in agglomerated regions can be attributed to savings and gains from external economies. However, the capacity to absorb information may depend on activities of the firm, such as involvement in international trade. Importers, exporters and two-way traders are likely to employ a different bundle of resources and be organised differently so that they would appreciate inputs and information from other firms in a different fashion and intensity. Getting a better understanding of such external economies by looking at various types of firms is the focus of present paper. Using Hungarian manufacturing data from 1992-2003, we confirm that firms perform better in agglomerated areas and show that traders gain more in terms of productivity than non-traders when agglomeration rises. Firms that are stable participants of international trade gain 16 % in terms of total factor productivity growth as agglomeration doubles while non-traders may not benefit from agglomeration at all. Results also suggest that traders' productivity premium is most apparent in urbanised economies. |
| Date: | 2010–01–28 |
| URL: | http://d.repec.org/n?u=RePEc:cfg:cfigwp:11&r=ure |
| By: | Evrenk, Haldun (Suffolk University, Economics) |
| Abstract: | I study both local and global Nash equilibria of a model of three-candidate unidimensional spatial competition. In the model, candidates may have different non-policy characteristics (valence). Generalizing the base model studied in Evrenk (2009a;b) the model allows for an asymmetric voter density as well as plurality-maximizing candidates. Unlike the standard Hotelling-Downs model of multi-candidate competition, under an asymmetric density with (heterogenous) vote-maximizing candidates a pure strategy Nash equilibrium (PSNE) exists. Further, this PSNE is free from several non-plausible features of PSNE under a symmetric density. When candidates are plurality-maximizers, some of the PSNE are supported by paradoxical candidate behavior. Further, when voter density is asymmetric and candidates are plurality-maximizers, there are several non-monotonicities in the PSNE. |
| Keywords: | Valence; three-candidate competition; plurality maximization; local Nash equilibrium; asymmetric voter density |
| JEL: | C72 H89 |
| Date: | 2010–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:suf:wpaper:2010-1&r=ure |
| By: | Peter Zimmermann |
| Abstract: | The German Ministry of Transport, Building and Urban Affairs has set up a vision which shall improve the situation of the transport system user (in Germany). In order to make use of all resources an intensive co-ordination with the Ministry of Economics and Technology (transport research programme) was undertaken. Originally the project was called Meta-Data-Platform. In course of time the vision of a benefit for an oriented and informed transport system user developed. The Meta-Data-Platform shall enable data exchange of various sources, shall provide common interfaces and protocols, shall allow for exchange of geographical data of different formats and enable business processes between service and content provider organizations. Traffic data shall become more reliable, be of higher quality and access to real time data shall be possible. State authorities for controlling traffic, broadcasting stations for traffic warning news, service providers for individual route recommendations and content owners can make use of the system. The services of the meta data platform can be used as a virtual internet portal. Centralized services for judgment of data quality transfer of different interfaces and protocols and transfer of different geographical formats will be offered separately. Despite having intermodal transport in mind, there will be separate platforms for road and public transport. The realization has been splitted into a bunch of individual projects. Some of the projects have just been started. For some of them call for tenders are presently prepared. Development will take approximately four years. At the end of the development there will be test fields used for validation. Validation will be done with model services. |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaaa:2009/26-en&r=ure |
| By: | Andersson, Mats (Swedish National Road and Transport Research Institute) |
| Abstract: | We analyse maintenance cost data for Swedish railway infrastructure in relation to traffic volumes and network characteristics, and separate the cost impact from passenger and freight trains. Lines with mixed passenger and freight traffic, and dedicated freight lines are analysed separately using both log-linear and Box-Cox regression models. We find that for mixed lines, the Box-Cox specification is preferred, while a log-linear model is chosen in the case of dedicated freight lines. The cost elasticity with respect to output is found to be higher for passenger trains than for freight trains. From a marginal cost pricing perspective, freight trains are currently over-charged, while passenger trains are under-charged. |
| Keywords: | Railway; Maintenance; Box-Cox; Marginal Cost |
| JEL: | C31 L92 |
| Date: | 2009–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:vtiwps:2010_005&r=ure |
| By: | Marco Cozzi (Queen’s University) |
| Abstract: | This paper studies the effects of both labor market conditions and asset poverty on the property crimes involvement of American males. Since the mid 60’s the property crimes arrest rate has been four times higher for black males if compared to white ones. Another set of stylised facts show for the first demographic group lower educational levels and worse labor market outcomes, with the African Americans supplying less hours of labor, gaining lower wages, experiencing both higher unemployment duration and rates. At the same time, more than 30% of black households had a negative net worth. A dynamic general equilibrium model is developed, exploiting these facts to quantitatively assess the race crime gap, that is the difference in crime explained by the difference in observables. The model is calibrated relying on US data and solved numerically. The model captures well relevant dimensions of the crime phenomenon, such as the inmates composition by race, employment status and education. Simulation results show that the observed poverty and labor market outcomes account for as much as 90% of the arrest rates ratio. Finally the model is used to compare two alternative policy experiments aimed at reducing the aggregate crime rate: increasing the expenditure on police seems to be cost effective, when compared to an equally expensive lump-sum subsidy targeted to the high school dropouts. |
| Keywords: | Property crimes, Computable General Equilibrium, Incomplete Markets, Race, Wealth Inequality |
| JEL: | K42 D58 D52 D99 J15 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:qed:wpaper:1233&r=ure |
| By: | Sarafidis, Vasilis; Wansbeek, Tom |
| Abstract: | This paper provides an overview of the existing literature on panel data models with error cross-sectional dependence. We distinguish between spatial dependence and factor structure dependence and we analyse the implications of weak and strong cross-sectional dependence on the properties of the estimators. We consider estimation under strong and weak exogeneity of the regressors for both T fixed and T large cases. Available tests for error cross-sectional dependence and methods for determining the number of factors are discussed in detail. The finite-sample properties of some estimators and statistics are investigated using Monte Carlo experiments. |
| Keywords: | Panel data; Cross-sectional dependence; Spatial dependence; Factor structure; Strong/Weak exogeneity. |
| JEL: | C50 C33 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:20367&r=ure |
| By: | Stephanie von Hinke Kessler Scholder; George Davey Smith; Debbie A. Lawlor; Carol Propper; Frank Windmeijer |
| Abstract: | The use of genetic markers as instrumental variables (IV) is receiving increasing attention from economists. This paper examines the conditions that need to be met for genetic variants to be used as instruments. We combine the IV literature with that from genetic epidemiology, with an application to child adiposity (fat mass, determined by a dual-energy X-ray absorptiometry (DXA) scan) and academic performance. OLS results indicate that leaner children perform slightly better in school tests compared to their more adipose counterparts, but the IV findings show no evidence that fat mass affects academic outcomes. |
| Keywords: | Instrumental variables; Mendelian randomization; Genetic variant; Potential outcomes; Academic performance; Educational attainment; Adiposity; Fat mass; Body Mass Index; ALSPAC |
| JEL: | I1 I2 J24 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:bri:cmpowp:10/229&r=ure |
| By: | John Preston |
| Abstract: | The aim of this paper is to review the emerging evidence on competition in the long distance passenger rail service. This draws on the three bodies of evidence. In section 2, we examine the ex-ante evidence from theoretical models based on Preston (2008a). In section 3, we examine the ex-post evidence on competition for the market, with particular emphasis on the East Coast Main Line franchise in Great-Britain, drawing in part on Preston (2008b). Likewise, in section 4, we consider recent evidence on open access services that are competing in the market in Great-Britain, drawing on Griffiths (2009). Finally, we shall draw some conclusions. |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaaa:2009/23-en&r=ure |
| By: | Jeroen de Jong; Mark Freel |
| Abstract: | This paper explores the geographical distance of innovation collaborations in high tech small firms. We test if absorptive capacity is a key determinant. Drawing on survey data from a sample of 316 Dutch high-tech small firms, engaging in 1.245 collaborations, we find most partners to be ‘local’. However, controlling for a variety of potential influences, higher R&D expenditure is positively related to collaboration with more distant organisations. |
| Date: | 2010–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h201008&r=ure |
| By: | Robert W. Poole, Jr. |
| Abstract: | The concept of the general purpose (GP) lane has dominated modern highway thinking and practice in OECD countries, especially for limited-access highways such as inter-city motorways and urban expressways, whether tolled or non-tolled. This paper raises the question of whether, in some circumstances, specialized lanes for light vehicles (cars, vans and pickup trucks) and heavy vehicles (generally more than two axles) might be cost-effective. |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaaa:2009/24-en&r=ure |
| By: | Facundo Albornoz; Antonio Cabrales |
| Abstract: | We study the dynamic support for fiscal decentralization in a political agency model from the perspective of a region. We show that corruption opportunities are lower under centralization at each period of time. However, centralization makes more difficult for citizens to detect corrupt incumbents. Thus, corruption is easier under centralization for low levels of political competition. We show that the relative advantage of centralization depends negatively on the quality of the local political class, but it is greater if the center and the region are subject to similar government productivity shocks. When we endogenize the quality of local politicians, we establish a positive link between the development of the private sector and the support for decentralization. Since political support to centralization evolves over time, driven either by economic/political development or by exogenous changes in preferences over public good consumption, it is possible that voters are (rationally) discontent about it. Also, preferences of voters and the politicians about centralization can diverge when political competition is weak. |
| Keywords: | Decentralization, Centralization, Political agency, Quality of politicians, Corruption |
| JEL: | H11 D72 D73 P16 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:cte:werepe:we100402&r=ure |