nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2010‒06‒11
thirty-six papers chosen by
Steve Ross
University of Connecticut

  1. A Monocentric City With Discrete Transit Stations By Moez Kilani; Fabien Leurent; André De Palma
  2. The Spatial Extent of Water Quality Benefits in Urban Housing Markets By Patrick Walsh; J. Walter Milon; David Scrogin
  3. Moderating Urbanization and Managing Growth: How Can Colombo Prevent the Emerging Chaos? By Dayaratne, Ranjith
  4. Passage, Profit, Protection and the Challenge of Participation By Landau, Loren B.
  5. MBS ratings and the mortgage credit boom By Adam Ashcraft; Paul Goldsmith-Pinkham; James Vickery
  6. A Hedonic Analysis of the Impact of LUST Sites on House Prices in Frederick, Baltimore, and Baltimore City Counties By Jeffrey Zabel; Dennis Guignet
  7. The City is Flatter: Changing Patterns of Job and Labor Access in Minneapolis-Saint Paul, 1995-2005 By David Levinson; Bernadette Marion
  8. Yardstick competition in a Federation: Theory and Evidence from China By Emilie CALDEIRA
  9. The Role of Demographic and Cost-Related Factors in Determining Where Plants Locate - A Tale of Two Texas Cities By Ann Wolverton
  10. Location Decisions of U.S. Polluting Plants: Theory, Empirical Evidence, and Consequences By Ronald J. Shadbegian; Ann Wolverton
  11. Is There Such a Thing as a Post-Apartheid City? By Freund, Bill
  12. Regionale Arbeitsmärkte in der „Großen Rezession“: Dynamik regionaler Arbeitslosenquoten in Deutschland, Frankreich und Großbritannien im Krisenjahr 2009 By Reiner, Christian
  13. Women and Landed Property in Urban India: Negotiating Closed Doors and Windows of Opportunity By Baruah, Bipasha
  14. Identity and Space on the Borderland between Old and New in Shanghai: A Case Study By Iossifova, Deljana
  15. Spatial Patterns in Regulatory Enforcement: Local Tests of Environmental Justice By Ronald J. Shadbegian; Wayne B. Gray
  16. The Economic Effects of Bus Transit in Small Cities By Dagney Faulk; Michael Hicks
  17. Graded children – evidence of longrun consequences of school grades from a nationwide reform By Sjögren, Anna
  18. Social return on investment of mutual support based housing projects: Potential for socio-economic cost savings and higher living quality By Borgloh, Sarah; Westerheide, Peter
  19. Spatial Inequality in Social Progress in Bangladesh By Binayak Sen; Zulfiqar Ali
  20. Inventor collaboration over distance – a comparison of academic and corporate patents By Anja Dettmann; Sidonia von Proff
  21. The spatial diffusion of social conformity: the case of voting participation By Coleman, Stephen
  22. Infrastructure and Poverty Reduction: Implications for Urban Development in Nigeria By Ogun, T. P.
  23. The Tangled Web of Associational Life By Meagher, Kate
  24. Effects of Ownership on Agglomeration Economies: Evidence from Ukrainian Firm Level Data By Volodymyr Vakhitov; Chris Bollinger
  25. Inference Based on Alternative Bootstrapping Methods in Spatial Models with an Application to County Income Growth in the United States By Daniel C. Monchuk; Dermot J. Hayes; John Miranowski; Dayton M. Lambert
  26. A micro-econometric approach to geographic market definition in local retail markets: Demand side considerations By Beckert, Walter
  27. University Education, Public Research and Employment Growth in Regions – An Empirical Study of Germany By Thomas Brenner; Charlotte Schlump
  28. Who do you blame in local finance? An analysis of municipal financing in Italy By Massimo Bordignon; Santino Piazza
  29. Locating fire-stations: an integrated approach for Belgium By CHEVALIER, Philippe; THOMAS, Isabelle; GERAETS, David; GOETGHEBEUR, Els
  30. Fiscal Decentralization and Urbanization in Indonesia By Comola, Margherita; de Mello, Luiz
  31. Measuring Economic Localization: Evidence from Japanese firm-level data By NAKAJIMA Kentaro; SAITO Yukiko; UESUGI Iichiro
  32. Urban Development Transitions and their Implications for Poverty Reduction and Policy Planning in Uganda By Mukwaya, Paul Isolo; Sengendo, Hannington; Lwasa, Shuaib
  33. Reducing the administrative expenditures as source for increasing the efficiency of local governance under conditions of the financial crisis By Matei, Ani; Matei, Lucica
  34. Why are good comparative studies of networks so rare? Practical lessons from a study on French clusters By Thierry Weil; Anna Glaser; Emilie-Pauline Gallié; Valérie Mérindol; Philippe Lefebvre; Frédérique Pallez
  35. The Economic Effects of Replacing the Property Tax with a Sales or Income Tax:A Computable General Equilibrium Approach By Dagney Faulk; Nalitra Thaiprasert; Michael Hicks
  36. Not driving alone: Commuting in the Twenty-first century By Stephen B. DeLoach; Thomas Tiemann

  1. By: Moez Kilani (Université Paris-Est, LVMT - Université Paris-Est, Equippe/IUT B - Université Charles de Gaulle - Lille III); Fabien Leurent (LVMT - Laboratoire Ville, Mobilité, Transports - INRETS - Université Paris-Est - Ecole Nationale des Ponts et Chaussées); André De Palma (ENS Cachan - Ecole Normale Supérieure de Cachan - École normale supérieure de Cachan - ENS Cachan, Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X, IUF - Institut Universitaire de France)
    Abstract: We extend the monocentric model by considering a discrete number of accessible mass transit stations. Households combine two modes for their daily home-to-work trip: a first mode for terminal access to stations and a second (long haul) mode which consists in radial mass transit axes. The urban equilibrium, i.e. city size and households' distribution, is derived as a function of the mass transit network and the distribution of land housing capacity. Then at the urban equilibrium the land rent is peaked at transit stations and decreases with the travel cost from the city center rather than with the distance to it. Accordingly, the housing lot size increases with the travel cost from the city center. These features distinguish our framework from previous monocentric models. Our analysis is based on the assumptions that land-owners are absent and city is open (the households' level of utility is given and the population size is endogenous). For numerical illustration, the model is calibrated to a selected rail network in the Paris area. A sensitivity analysis of the urban structure and land-use equilibrium is conducted with respect to the key model parameters.
    Date: 2010–06–02
  2. By: Patrick Walsh; J. Walter Milon; David Scrogin
    Abstract: Federal efforts are increasingly targeting surface water quality in urban watersheds throughout the U.S., as demonstrated by recent litigation between the EPA and the State of Florida. While the cost of achieving federal standards is ultimately borne by taxpayers, pollution abatement may generate diverse and wide-reaching taxable benefits. This study investigates the effects of enhanced water quality on property prices in urban housing markets. Hybrid specifications of hedonic price models employed in water quality and proximity valuation studies are estimated, and several hypotheses about the implicit value of water quality are tested. Findings indicate i) the value of increased water quality depends upon surface water size and declines rapidly as proximity to the waterfront diminishes, though the mean effect remains significant at several hundred meters; and ii) when housing density is considered, the aggregate benefits derived in the broader housing market may dominate those realized by waterfront homeowners. New version posted 3-18-2010
    Keywords: hedonic pricing, water quality, pollution abatement, proximity, amenity value
    Date: 2010–03
  3. By: Dayaratne, Ranjith
    Abstract: This paper examines urbanization trends, the growth of Colombo and its present state of development. It looks at the approaches to the planned interventions in the city and demonstrates how a uni-directional urban development has had a detrimental impact
    Keywords: Colombo, urban development, managing urbanization, planning, housing,
    Date: 2010
  4. By: Landau, Loren B.
    Abstract: Accepting that successful 'development' is premised on a population's participation in a collective undertaking, we must understand urban residents' interactions and ambitions. In African cities being transformed by geographic and social mobility, it is u
    Keywords: migration, urbanization, African cities, social cohesion, integration,
    Date: 2010
  5. By: Adam Ashcraft; Paul Goldsmith-Pinkham; James Vickery
    Abstract: We study credit ratings on subprime and Alt-A mortgage-backed-securities (MBS) deals issued between 2001 and 2007, the period leading up to the subprime crisis. The fraction of highly rated securities in each deal is decreasing in mortgage credit risk (measured either ex ante or ex post), suggesting that ratings contain useful information for investors. However, we also find evidence of significant time variation in risk-adjusted credit ratings, including a progressive decline in standards around the MBS market peak between the start of 2005 and mid-2007. Conditional on initial ratings, we observe underperformance (high mortgage defaults and losses and large rating downgrades) among deals with observably higher risk mortgages based on a simple ex ante model and deals with a high fraction of opaque low-documentation loans. These findings hold over the entire sample period, not just for deal cohorts most affected by the crisis.
    Keywords: Credit ratings ; Mortgages ; Mortgage-backed securities ; Subprime mortgage ; Financial crises ; Financial risk management
    Date: 2010
  6. By: Jeffrey Zabel; Dennis Guignet
    Abstract: Petroleum from leaking underground storage tanks (LUSTs) can contaminate local soil, and surface and groundwater. In some cases this can pose health risks to the surrounding population. Focusing on single family home sales from 1996-2007 in three Maryland counties, we use a hedonic house price model to estimate the willingness to pay to live father away from LUST sites. Particular attention is given to how property values are affected by leak and cleanup activity at a LUST site, the severity of contamination, the presence of a primary exposure path (i.e., private groundwater wells), and publicity surrounding a LUST site. The results suggest that although the typical LUST site may not significantly affect nearby property values, more publicized (and more contaminated sites) can impact surrounding home values by more than 10%.
    Keywords: hedonic model, LUST, groundwater contamination, Remediation benefits
    Date: 2010–01
  7. By: David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota); Bernadette Marion
    Abstract: This study describes the measurement of accessibility by automobile for the Minneapolis - Saint Paul (Twin Cities) region over the period from 1995 to 2005. In contrast to previous analyses of accessibility, this study uses travel time estimates derived, to the extent possible, from actual observations of network performance by time of day. A set of cumulative opportunity measures are computed with transportation analysis zones (TAZs) as the unit of analysis for 1995 and 2005. Analysis of the changes in accessibility by location over the period of study reveals that, for the majority of locations in the region, accessibility increased over this period, though the increases were not uniform. A "flattening" or convergence of levels of accessibility across locations was observed over time, with faster-growing suburban locations gaining the most in terms of employment accessibility. An effort to decompose the causes of changes in accessibility into components related to transportation network structure and land use (opportunity location) reveal that both causes make a contribution to increasing accessibility, though the effects of changes to the transportation network tend to be more location-specific. Overall, the results of the study demonstrate the feasibility and relevance of using accessibility as a key performance measure to describe the regional transportation system.
    Keywords: Accessibility; Land Use; Travel Time; Travel Behavior; Twin Cities (Minnesota)
    JEL: R41 R48 Q41 R51
    Date: 2010
  8. By: Emilie CALDEIRA
    Abstract: While some scholars argue that fiscal decentralization gave Chinese local officials strong incentives to promote local economic growth, traditional fiscal federalism theories are not directly relevant to explain such an effect in the particular context of China. In this paper, we explain the existence of interjurisdictional competition among Chinese local officials using a model of yardstick competition "from the top", in which the central government (and not local voters) creates a competition among local officials by rewarding or punishing them on the basis of relative economic performance. Our model predicts that, in this context, local governments are forced to care about what other incumbents are doing and that public spending settings are strategic complements. Then, by estimating a spatial lag dynamic model for a panel data of 29 Chinese provinces from 1980 to 2004, we provide empirical evidence of the existence of such public spending interactions. We propose a rigorous empirical framework which takes into account heterogeneity, simultaneity and endogeneity problems and spatial error dependence. The results are encouraging to the view that there are some strategic interactions among Chinese provinces, resulting from a yardstick competition created by the central government.
    Keywords: decentralization, China, public spending interactions, yardstick competition, spatial panel data
    JEL: H7 H2 D72
    Date: 2010
  9. By: Ann Wolverton
    Abstract: In the environmental justice literature, evidence of disproportionate siting in poor or minority neighborhoods is decidedly mixed. Some allege this is due to the difference in whether the study looks at evidence at the national, state, or city level. Here, I compare results from two of the largest cities in Texas to results for the state overall to discern whether important demographic or other differences are evident at the city level that may be masked at a more aggregate level of analysis. I examine four possible hypotheses for why plants may locate in poor or minority neighborhoods: profit maximization (or cost minimization); relatively low willingness-to-pay for environmental amenities; a lower propensity for collective action by the community; and finally, the desire on the part of the firm to discriminate against particular groups of people. Specifically, I match the location of manufacturing plants that reported to the Toxic Release Inventory to US Census information at the census tract level at the time when the siting decision occurred. I then combine this information with a variety of other data, including voter participation, wages, and crime rates at the county-level. The main findings of this paper is that the principle driver of plant location decisions is profit maximization and that variables associated with the collective action and discrimination hypotheses are largely not significant, population density excepted. These findings appear to hold both at the city and state level. Variables associated with willingness-to-pay for environmental amenities appear somewhat sensitive to geographic scope: poverty is sometimes significant at the state level but never significant at the level of the city.
    Keywords: Plant location, environmental justice
    Date: 2009–06
  10. By: Ronald J. Shadbegian; Ann Wolverton
    Abstract: Economists have long been interested in explaining the spatial distribution of economic activity, focusing on what factors motivate profit-maximizing firms when they choose to open a new plant or expand an existing facility. We begin our paper with a general discussion of the theory of plant location, including the role of taxes and agglomeration economies. However, our paper focuses on the theory, evidence, and implications of the role of environmental regulations in plant location decisions. On its face, environmental regulation would not necessarily be expected to alter location decisions, since we would expect Federal regulation to affect all locations in the United States essentially equally. It turns out, however, that this is not always the case as some geographic areas are subject to greater stringency. Another source of variation is differences across states in the way they implement and enforce compliance with Federal regulation. In light of these spatial differences in the costs of complying with environmental regulations, we discuss three main questions in this survey: Do environmental regulations affect the location decisions of polluting plants? Do states compete for polluting plants through differences in environmental regulation? And, do firms locate polluting plants disproportionately near poor and minority neighborhoods?
    Keywords: plant location decisions, environmental policy, inter-jurisdictional competition, environmental justice
    JEL: D21 H77 Q52 Q56
    Date: 2010–05
  11. By: Freund, Bill
    Abstract: In an introductory section, this paper considers briefly the achievements and problems of urban governance in post-apartheid South Africa through an assessment of three categories: administrative reform, developmental issues and conflicts over service del
    Keywords: urban studies, Durban, South Africa, local government, private-public
    Date: 2010
  12. By: Reiner, Christian (University of Salzburg)
    Abstract: Regional labour markets in the „Great Recession“: The evolution of regional unemployment rates in Germany, France and the United Kingdom in 2009: Contrary to the already encompassing literature on the differentiated effects of the “Great Recession” on states, the article takes a regional economic perspective. The stated research question is “Which factors might explain the spatially unequal development of unemployment rates at the regional level?”. Using a cross-section data-set with the percentage point increase of regional unemployment rates between 2008 and 2009 as the dependent variable and a set of regional and national variables as independent variables, a multiple linear regression model is estimated. After detecting spatial autocorrelation for the OLS-estimators, the model is re-estimated and a spatial error model with ML-estimators is computed. It turns out that the share of low-skilled has a significant positive effect on the change of regional unemployment rates. Furthermore, the financial centres showed a significant better resilience than other regional economies. Because of the strong influence of the national variables in these models, separate models are estimated for France and UK. It is shown that the same variables have quite different effects. This questions the existence of a common explanation for regional unemployment dynamics in Europe.
    Keywords: Regionale Arbeitsmärkte; Große Rezession; Arbeitslosigkeit; Räumliche Ökonometrie
    JEL: J64 R11 R23
    Date: 2010–06–02
  13. By: Baruah, Bipasha
    Abstract: This paper examines land tenure in informal urban settlements in India from a gender perspective through field research conducted in Ahmedabad in collaboration with the Self-Employed Women's Association (SEWA). The author describes the formal and informal
    Keywords: women, landed property, cities, India, South Asia
    Date: 2010
  14. By: Iossifova, Deljana
    Abstract: China's urban geography has been dramatically altered over the past three decades. The co-presence of splinters in urban fabric-contrasting and continuously changing in terms of condition, use, and socio-cultural consistency-is symptomatic for the
    Keywords: Shanghai, intraurban borderland, urban restructuring, rural-to-urban migration,
    Date: 2010
  15. By: Ronald J. Shadbegian; Wayne B. Gray
    Abstract: We examine the determinants of environmental regulatory activity (inspections and enforcement actions) for 1616 U.S. manufacturing plants in four large U.S. cities – Los Angeles, Boston, Columbus, and Houston – using data for 2000-2002. The main focus of our study is to examine whether or not regulators treat different segments of the population differently, by directing more regulatory activity at plants in rich, white neighborhoods and less in poor, minority neighborhoods, controlling for characteristics of the plant (size, age, and industry), and the plant’s past environmental performance. To date, tests of “Environmental Justice” hypotheses tend to focus on whether or not polluters are disproportionately likely to locate in neighborhoods with relatively high poor/minority populations, or on whether polluters located in those neighborhoods emit disproportionately high levels of pollution. Focusing instead on the allocation of enforcement activity across neighborhoods within each city allows us to shed light on a key mechanism through which discrepancies in pollution exposure across neighborhoods could arise and persist. Our results show relatively little statistically significant evidence that regulatory activity is less intense near disadvantaged demographic groups. We do find some suggestive coefficients - plants located in minority neighborhoods face less regulatory activity - but this effect is generally insignificant, and plants located in poor neighborhoods face (insignificantly) more regulatory activity. In contrast, we do find significant effects for plant characteristics and political variables, with plants that are larger and more energy-intensive, owned by single-plant firms, and located near politically active and liberal populations, facing more regulatory activity.
    Keywords: environmental justice, regulatory activity, enforcement, political, poor, minority
    Date: 2009–06
  16. By: Dagney Faulk (Center for Business and Economic Research, Miller College of Business, Ball State University); Michael Hicks (Center for Business and Economic Research, Miller College of Business, Ball State University)
    Abstract: This research investigates how public transit affects economic outcomes in counties with small to medium-sized cities. Our objectives are to answer: Do counties with bus transit have lower growth in transfer payments such as food stamps, Temporary Aid to Needy Families (TANF), or higher income growth, employment growth, and population growth? Public transit is commonly viewed as a social service; this analysis explores the economic impact of this public investment. We find that relative to counties without bus transit, counties with bus systems have significantly lower unemployment rates, lower growth in family assistance, lower growth in food stamp payments, and higher population and employment growth. Yet the poverty rate is higher in counties with bus transit systems and the effect on income is ambiguous. The positive impact on job access which reduces payments for family assistance and food stamps is tempered by lack of discernable effects on income likely driven by supply side effects in the labor market.
    Keywords: Employment, Transit, Bus, Spatial Mismatch
    JEL: R42 R58 H54 R11 R49
    Date: 2010–06
  17. By: Sjögren, Anna (IFAU - Institute for Labour Market Policy Evaluation)
    Abstract: Swedish elementary school children stopped receiving written end of year report cards following a grading reform in 1982. Gradual implementation of the reform creates an opportunity to investigate the effects of being graded on adult educational attainments and earnings for children in the cohorts born 1954–1974, using a differ-ence-in-differences strategy. Accounting for municipal time trends and tracing out reform dynamics, there is some evidence that being graded increases girls’ years of schooling, but has no significant average effect on boys. Analysis of effects by fam-ily background suggests that getting grades increases the probability of high school graduation for boys and girls with compulsory school educated parents. Sons of uni-versity graduates, however, earn less and are less likely to get a university degree if they were graded in elementary school.
    Keywords: school policy; grades; educational attainment; adult earnings; family background; difference-in-differences
    JEL: I21 I28 J13 J24
    Date: 2010–05–27
  18. By: Borgloh, Sarah; Westerheide, Peter
    Abstract: Our paper describes the results of a Social Return on Investment analysis of four new housing projects in Germany. A common characteristic of all projects is the central importance of mutual neighborly support to meet the demand for the assistance of older residents. All projects share some common architectural features and infrastructural characteristics. Furthermore, in each housing project, some form of support by social workers takes place. Using a propensity score matching approach, we compare for the first time systematically the costs for support of older people in mutual support based housing projects with a control group of people living in conventional settings. Our results, based on a sample of more than 700 residents, point not only to improvements in living satisfaction, but indicate also a huge potential for socio-economic cost savings. This can partly be explained by better development of residents' health status. --
    Keywords: Senior Housing,Cohousing,Mutual support,Assisted Living,Long term care
    JEL: J14 R31 I10
    Date: 2010
  19. By: Binayak Sen; Zulfiqar Ali
    Abstract: The paper tracks spatial inequality in social progress in Bangladesh as evidenced from the district level data. It uses a multivariate framework to explore the differential pace of social progress at the spatial level. The “instructive†outliers and deviants are identified in terms of underachievers and overachievers compared with the benchmark predicted by the level of aggregate affluence. The paper then draws upon discussions to coalesce a local contextual story about the possible reasons for such unexpected deviations from the general pattern. The paper concludes that the extent of spatial inequality in social development has decreased over the second half of the nineties although the overall level of inequality remains considerable. Policy implications are drawn for attacking spatial chronic poverty.[PRCPB Working Paper No. 7]
    Keywords: spatial, inequality, multivariate framework, spatial level, instructive, benchmark, coalesce,
    Date: 2010
  20. By: Anja Dettmann (Department of Geography, Philipps University Marburg); Sidonia von Proff (Department of Geography, Philipps University Marburg)
    Abstract: The paper compares academic and corporate patents in Germany to shed light on the geographical distribution of the inventors. The residences of the inventors show different patterns in the two datasets. Furthermore, we analyze the spatial distance between inventors for patents invented in collaboration and give insights into the distance’s change over a time period of 14 years. The distance between collaborating inventors of corporate patents exceeds that of inventors of academic patents. In spite of the rise of ICT and cheap passenger transportation the collaboration distances have not increased. This supports earlier literature on the importance of proximity in innovation.
    Keywords: inventor networks, Germany, academic patents, research collaboration
    JEL: R12 O34 L14
    Date: 2010–05
  21. By: Coleman, Stephen
    Abstract: Social interaction combined with social conformity spreads attitudes and behaviors through a society. This paper examines such a process geographically for compliance with the norm that good citizens should vote. The diffusion of conformist behavior affects the local degree of conformity with the norm and produces highly specific and predictable patterns of behavior across a country. These are demonstrated with qualitative and quantitative spatial analysis of voter turnout in the United States and Russia.
    Keywords: social conformity; norm compliance; voting; spatial analysis; United States; Russia; mathematical model; diffusion
    JEL: Z13 C31 D72
    Date: 2010–06–03
  22. By: Ogun, T. P.
    Abstract: The paper investigates the impact of infrastructural development on poverty reduction in Nigeria. Specifically, the relative effects of physical and social infrastructure on living standards or poverty indicators are examined, with a view to providing emp
    Keywords: African urbanism, everyday practices, social infrastructures, urban violence
    Date: 2010
  23. By: Meagher, Kate
    Abstract: This paper examines how decentralization and informalization are reshaping urban governance in contemporary Africa. By exploring the interface between urban institutional failures and popular organizational solutions, the paper considers how informal gove
    Keywords: informal economy, urban governance, Nigeria, enterprise clusters, civil society
    Date: 2010
  24. By: Volodymyr Vakhitov (Kyiv School of Economics, Kyiv Economics Institute); Chris Bollinger (University of Kentucky)
    Abstract: We use establishment level longitudinal data to estimate agglomeration economies in the Ukraine for machine manufacturing and hi-tech industries. We differentiate state-owned, private-domestic-owned and private-internationally-owned firm types. Our baseline results are comparable to other firm level measures of similar industries and to other research in the former Soviet Union. We find that state owned firms accrue little or no agglomeration benefits, while privately-owned firms are able to take advantage of agglomeration effects. Foreign-owned firms may gain the most from agglomeration. These results suggest that agglomeration economies are typically gained at the management level.
    Keywords: Agglomeration, Localization Economies, Ownership Structure, Transition, Production Function
    JEL: O1 P2 R1 R3
    Date: 2010–05
  25. By: Daniel C. Monchuk; Dermot J. Hayes (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)); John Miranowski; Dayton M. Lambert
    Abstract: This study examines aggregate county income growth across the 48 contiguous states from 1990 to 2005. To control for endogeneity we estimate a two-stage spatial error model and infer parameter significance by implementing a number of spatial bootstrap algorithms. We find that outdoor recreation and natural amenities favor positive growth in rural counties, densely populated rural areas enjoy stronger growth, and property taxes correlate negatively with rural growth. We also compare estimates from the aggregate county income growth model with per capita income growth and find that these two growth processes can be quite different.
    Keywords: county income growth, rural development, spatial bootstrapping. JEL codes: O18, R11, R58
    Date: 2010–05
  26. By: Beckert, Walter
    Abstract: This paper formalizes an empirically implementable framework for the definition of local antitrust markets in retail markets. This framework rests on a demand model that captures the trade-off between distance and pecuniary cost across alternative shopping destinations within local markets. The paper develops, and presents estimation results for, an empirical demand model at the store level for groceries in the UK. --
    Keywords: Geographic antitrust market definition,discrete choice
    JEL: L11 L13 L41 L81 C35 C73
    Date: 2010
  27. By: Thomas Brenner (Department of Geography, Philipps University Marburg); Charlotte Schlump (Department of Geography, Philipps University Marburg)
    Abstract: Universities and research institutes are seen as important drivers of the regional economy. Their impact on regional entrepreneurial and innovation activity is well documented. On the other hand, their influence on regional employment growth is less researched. This paper provides an extensive empirical analysis of the relationship between the education of university graduates and employees in research institutes and the growth of employment in a region. The analysis is done for nine industries separately. We find that university graduates have a significant influence on employment growth in several industries, while an influence of public research institutes is found only for a few industries. For most control variables the findings differ between manufacturing and service industries. Such a clear difference between the two types of industries is not found for university graduates and public research institutes.
    Keywords: Universities, Research Institutes, Regional Employment Growth
    JEL: H52 I2 J20
    Date: 2010–05
  28. By: Massimo Bordignon (DISCE, Università Cattolica); Santino Piazza (DISCE, Università Cattolica)
    Abstract: A 1999 reform allowed Italian Mayors to partially substitute a more accountable source of tax revenue (the property tax) with a less trans- parent one (a surcharge on the personal income tax). Theoretical anal- ysis suggests this should give incompetent Mayors a less costly way to hide themselves, so allowing them to be more easily re-elected. An em- pirical analysis on Piedmont municipalities conrms these hypotheses.
    Keywords: Partial decentralization, fiscal federalism, transparency, political behavior.
    JEL: H71 H77 D78
    Date: 2010–05
  29. By: CHEVALIER, Philippe (UniversitŽ catholique de Louvain, CORE and Louvain School of Management, B-1348 Louvain-la-Neuve, Belgium); THOMAS, Isabelle (UniversitŽ catholique de Louvain, CORE and Department of Geography (Fund for Scientific Research), B-1348 Louvain- la-Neuve, Belgium); GERAETS, David (Experian Business Strategies SA, B-1348 Louvain-la-Neuve, Belgium); GOETGHEBEUR, Els (Department of Applied Mathematics and Computer Science and Center for Statistics, Ghent University, B-9000 Ghent, Belgium)
    Abstract: This paper demonstrates the potential of a decision-support system developed for Belgium by a consortium of universities and a private firm, in the framework of a public call by the Ministry of the Interior. The system is designed to provide the Belgian emergency management administration with a complete decision-aid tool for the location of fire-stations. The originality of the project is that it includes a risk-modeling approach developed at a national scale. This analysis involves a multiscale GIS system which includes a thorough representation of the physical, human and economic spatial realities, a risk modeling approach, an adequate optimal location and allocation model (taking into account both queuing and staffing problems). The final result is an interactive operational tool for defining locations, equipment allocations, staffing, response times, the cost/efficiency trade-off, etc. which can be used in an assessment as well as a prospective context. It has numerous functionalities including rapid modification of the modeling conditions to allow for quick scenario analysis, multiscale analysis, and prospective analysis.
    Keywords: ocation-allocations, GIS, fire-stations, Belgium
    JEL: C61 R53
    Date: 2010–02–01
  30. By: Comola, Margherita; de Mello, Luiz
    Abstract: Indonesia went through a process of fiscal decentralization in 2001 involving the devolution of several policymaking and service delivery functions to the subnational tiers of government (provinces and districts). This process is likely to have affected r
    Keywords: Indonesia, minimum wage, federalism, urbanization
    Date: 2010
  31. By: NAKAJIMA Kentaro; SAITO Yukiko; UESUGI Iichiro
    Abstract: This paper examines the extent of localization in Japan's manufacturing sector using a unique firm-level dataset on the geographic location of firms. Following the point-pattern approach proposed by Duranton and Overman (2005), we find the following. First, approximately half of Japan's manufacturing industries can be classified as localized and the number of localized industries is largest for a distance of 40 km or less. Second, several industries in the textile mill products sector are among the most localized, which is similar to findings for the UK. This suggests that there exist common factors across countries that determine the concentration of industrial activities. Third, the distribution of distances between entrant (exiting) firms and remaining firms is, in most industries, not significantly different from a random distribution. The results by Durantan and Overman (2008) for the UK and our results for Japan suggest that most industries neither become more localized nor more dispersed over time.
    Date: 2010–06
  32. By: Mukwaya, Paul Isolo; Sengendo, Hannington; Lwasa, Shuaib
    Abstract: Urbanization is one of the critical global trends shaping the future of humanity. At the same time, it has been argued that full development requires an urbanized environment. This paper attempts to examine and characterize the major phases of urbanizatio
    Keywords: transitions, urbanization, planning, poverty, Uganda
    Date: 2010
  33. By: Matei, Ani; Matei, Lucica
    Abstract: In the last 10-15 years the preoccupation concerning administrative expenses were expressed in concrete initiatives. The networks concerning Standard Costs Model (SCM) are worth mentioning for reducing administrative expenses in private business area. European Commission elaborated and is currently implementing a strategy for reducing administrative costs for business inside EU. Similar initiatives can be found at OECD, World Bank and in numerous other European states, and not only, such as USA, UK, Denmark, Netherlands, Sweden, Norway and others. Financial crisis emphasized the preoccupation for administrative expenses reduction. The analysis and measurements focus was transferred towards public business area where most of the states proposed short term strategies to reduce the mentioned expenses. In this context, the strategies comprised all governance levels were expressed in concrete measures to reduce administrative expenses for administrative structure and local public services etc. In many of the situations, the resulted sums from the administrative expenses reductions were redirected towards production process concluding in the maintaining of public service production and increasing its efficiency related to workforce. In this context, the present paper aims to generate economic models that determine the influence of administrative expenses reduction on public services efficiency and, based on these, to formulate conclusions on local governance efficiency.
    Keywords: reducing the administrative expenditures; financial crisis; efficiency; local governance
    JEL: E62 H72 D24
    Date: 2010–04–15
  34. By: Thierry Weil (CERNA - Centre d'économie industrielle - Mines ParisTech); Anna Glaser (CERNA - Centre d'économie industrielle - Mines ParisTech); Emilie-Pauline Gallié (IMRI, Université Paris Dauphine - Institut pour le management de la recherche et de l'innovation - Université Paris Dauphine - Paris IX); Valérie Mérindol (IMRI - Université Paris Dauphine - Paris IX); Philippe Lefebvre (CGS - Centre de Gestion Scientifique - Mines ParisTech); Frédérique Pallez (CGS - Centre de Gestion Scientifique - Mines ParisTech)
    Abstract: French “competitiveness clusters” were set up in 2005 to strengthen cooperation between small and large enterprises, and training and research institutions working on similar topics and located in the same geographical area, with the aim of making this area more competitive and attractive through enhanced innovation. Our analysis of this set of about 70 apparently similar networks, on which much data were collected, has given us an opportunity to investigate the factors explaining the differences in their performance.
    Keywords: Clusters, networks, network performance, context, innovation policy
    Date: 2010
  35. By: Dagney Faulk (Center for Business and Economic Research, Miller College of Business, Ball State University); Nalitra Thaiprasert (Center for Business and Economic Research, Miller College of Business, Ball State University); Michael Hicks (Center for Business and Economic Research, Miller College of Business, Ball State University)
    Abstract: With the most recent wave of property tax restructuring in the U.S., policy makers have considered the possibility of replacing the property tax. In this analysis we use data for Indiana and a short-run computable general equilibrium model to examine the effects of replacing the property tax with a sales or income tax. We find that replacing the property tax with a sales or income tax has a relatively small effect on aggregate economic variables. Aggregate output in the state decreases by 2 to 3 percent. Larger effects are apparent when analyzing household groups and industry sectors. Replacing the property tax with a sales or income tax decreases household income by over three percent with the income tax being most regressive. Replacing the property tax has a negative effect on sales revenue for most industry sectors with retail sales and several other sectors experiencing large (over five percent) decreases.
    Keywords: property tax, sales tax, income tax, computable general equilibrium models
    JEL: H71 C68
    Date: 2010–06
  36. By: Stephen B. DeLoach (Department of Economics, Elon University); Thomas Tiemann (Department of Economics, Elon University)
    Abstract: This paper investigates recent commuting trends in American workers. Unlike most studies of commuting that rely on Census data, this study utilizes the unique American Time Use Survey to detail the complex commuting patterns of modern-day workers. The data confirm what has been suspected, that incidence of driving alone has decreased substantially in recent years while carpooling has rebounded. The results from the multi-nominal logistic estimation of workersÕ commuting choices yield support for both the traditional economic determinants as well as for the newer, socio-economic factors. In addition to the cost savings, many commuters appear to value the social aspect of carpooling. Surprisingly, there is little evidence that the need for autonomy plays much of a factor in explaining workerÕs choice of the journey to work. The estimated short-run ÒelasticityÓ of carpooling with respect to real gas prices appears to be quite high and largely accounts for the significant decline in the incidence of Òdriving aloneÓ.
    Keywords: Ride sharing, carpooling, commuting, gasoline process, social capital
    JEL: R4
    Date: 2010–03–22

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