nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2010‒06‒26
38 papers chosen by
Steve Ross
University of Connecticut

  1. The role of non-owner-occupied homes in the current housing and foreclosure cycle By Breck L. Robinson; Richard M. Todd
  2. The Political Economy of the Subprime Mortgage Credit Expansion By Atif Mian; Amir Sufi; Francesco Trebbi
  3. The Impact of Teacher Subject Knowledge on Student Achievement: Evidence from Within-Teacher Within-Student Variation By Metzler, Johannes; Woessmann, Ludger
  4. Using M-quantile models as an alternative to random effects to model the contextual value-added of schools in London By Nikos Tzavidis; James J Brown
  5. Lending patterns in poor neighborhoods By Ben Craig; Francisca G.-C. Richter
  6. Ranking the Schools: How Quality Information Affects School Choice in the Netherlands By Koning, Pierre; van der Wiel, Karen
  7. Housing market dynamics and welfare By Büyükkarabacak, Berrak; Mykhaylova, Olena
  8. Municipal Finance of Urban Infrastructure: Knowns and Unknowns By James Alm
  9. School Proximity and Child Labor: Evidence from Rural Tanzania By Kondylis, Florence; Manacorda, Marco
  11. Sequential vs. Simultaneous Schelling Models: Experimental Evidence By Juan Miguel Benito; Pablo Brañas-Garza; Penelope Hernandez; Juan A. Sanchis
  12. Decentralization in Africa and the nature of local governments' competition: evidence from Benin By Emilie CALDEIRA; Grégoire ROTA-GRAZIOSI; Martial FOUCAULT
  13. Does Home ownership Harm Labour Market Performances? A Survey By Nathalie Havet; Alexis Penot
  14. Languages, ethnicity, and education in London By Michelle von Ahn; Ruth Lupton
  15. The choice between fixed and random effects models: some considerations for educational research By Paul Clarke; Claire Crawford; Fiona Steele; Anna Vignoles
  16. An analysis of the Graduate Labour Market in Finland: the impact of Spatial Agglomeration and Skill-Job Mismatches By Consoli, Davide; Vona, Francesco; Saarivirta, Toni
  17. Income Inequality, the Median Voter, and the Support for Public Education By Sean Corcoran; William N. Evans
  18. Why do children become disengaged from school? By Francesca Foliano; Elena Meschi; Anna Vignoles
  19. Bertrand and Cournot in the unidirectional Hotelling model By stefano Colombo
  20. Assessing the Incidence and Efficiency of a Prominent Place Based Policy By Matias Busso; Jesse Gregory; Patrick M. Kline
  21. Knowledge diffusion and innovation policies within the European regions: Challenges based on recent empirical evidence By Corinne Autant-Bernard; Nadine Massard; Muriel Fadairo
  22. Have Sports Venues Mitigated the Home Foreclosure Crisis? By Paul M. Sommers
  23. Bank lending networks, experience, reputation, and borrowing costs By Christophe J. Godlewski; Bulat Sanditov; Thierry Burger-Helmchen
  24. Spanish Regional Unemployment Revisited: The Role of Capital Accumulation By Roberto Bande; Marika Karanassou
  25. Enhancing Knowledge-Based Regional Economic Development: Potentials and Barriers for Technology Transfer Offices By Christoph Kober
  26. Global and local networks in the Solar Energy Industry - The case of the San Francisco Bay Area By Matthias Böttcher
  27. Reliability and Heterogeneity of Real Estate Indexes and their Impact on the Predictability of Returns. By Sampagnaro, Gabriele; Battaglia, Francesca
  28. Public Works Department Delhi Government By Sabith Ullah Khan
  29. Quantifying Transport, Regulatory and Other Costs of India-Bangladesh Trade, Transaction Cost, and Corruption By Samantak Das
  30. Quantity-Quality and the One Child Policy: The Only-Child Disadvantage in School Enrollment in Rural China By Nancy Qian
  31. Industrial Property Analysis from an Investor's Perspective: The Case of Orange County, California By Jorrit Sennema
  32. Is it Live or is it Internet? Experimental Estimates of the Effects of Online Instruction on Student Learning By David N. Figlio; Mark Rush; Lu Yin
  33. Do Gun Buybacks Save Lives? Evidence from Panel Data By Leigh, Andrew; Neill, Christine
  34. States in Fiscal Distress By Robert P. Inman
  35. The Crime Reducing Effect of Education By Machin, Stephen; Marie, Olivier; Vujić, Sunčica
  36. Measuring the technical efficiency of airports in Latin America By Perelman, Sergio; Serebrisky, Tomas
  37. The Brazilian Payroll Lending Experiment By Christiano Arrigoni Coelho; Bruno Funchal; João Manoel Pinho de Mello
  38. Consumer Shopping Costs as a Cause of Slotting Fees: A Rent-Shifting Mechanism By Stéphane Caprice; Vanessa von Schlippenbach

  1. By: Breck L. Robinson; Richard M. Todd
    Abstract: Non-occupant homeowners differ from owner occupants in that they tend to have lower-risk credit characteristics, such as higher credit scores, but may also have weaker incentives to maintain mortgage payments when housing values fall. During the recent housing boom, the share of mortgage borrowing by non-occupant owners was relatively high in states where home values appreciated relatively rapidly. After the housing boom, foreclosures on non-occupant mortgages in several Midwestern and Northeastern states reflected primarily a high rate of foreclosure per mortgage, not a high volume of mortgages to non-occupants. The reverse held true in some coastal and mountain states. Nevada and Florida have experienced the greatest impact overall, because they have both a high volume of mortgages to non-occupant owners and a high rate of foreclosure on those mortgages.
    Keywords: Housing ; Mortgages
    Date: 2010
  2. By: Atif Mian; Amir Sufi; Francesco Trebbi
    Abstract: We examine how special interests, measured by campaign contributions from the mortgage industry, and constituent interests, measured by the share of subprime borrowers in a congressional district, may have influenced U.S. government policy toward the housing sector during the subprime mortgage credit expansion from 2002 to 2007. Beginning in 2002, mortgage industry campaign contributions increasingly targeted U.S. representatives from districts with a large fraction of subprime borrowers. During the expansion years, mortgage industry campaign contributions and the share of subprime borrowers in a congressional district increasingly predicted congressional voting behavior on housing related legislation. The evidence suggests that both subprime mortgage lenders and subprime mortgage borrowers influenced government policy toward housing finance during the subprime mortgage credit expansion.
    JEL: D72 G21 L51
    Date: 2010–06
  3. By: Metzler, Johannes (University of Munich); Woessmann, Ludger (Ifo Institute for Economic Research)
    Abstract: Teachers differ greatly in how much they teach their students, but little is known about which teacher attributes account for this. We estimate the causal effect of teacher subject knowledge on student achievement using within-teacher within-student variation, exploiting a unique Peruvian 6th-grade dataset that tested both students and their teachers in two subjects. We circumvent omitted-variable and selection biases using student and teacher fixed effects and observing teachers teaching both subjects in one-classroom-per-grade schools. After measurement-error correction, one standard deviation in subject-specific teacher achievement increases student achievement by about 10 percent of a standard deviation.
    Keywords: teacher knowledge, student achievement, Peru
    JEL: I20 O15
    Date: 2010–06
  4. By: Nikos Tzavidis (University of Manchester.); James J Brown (Department of Quantitative Social Science, Institute of Education, University of London. 20 Bedford Way, WC1H 0AL)
    Abstract: The measurement of school performance for secondary schools in England has developed from simple measures of marginal performance at age 16 to more complex contextual value-added measures that account for pupil prior attainment and background. These models have been developed within the multilevel modelling environment (pupils within schools) but in this paper we propose an alternative using a more robust approach based on M-quantile modelling of individual pupil efficiency. These efficiency measures condition on a pupils ability and background, as do the current contextual value-added models, but as they are measured at the pupil level a variety of performance measures can be readily produced at the school and higher (local authority) levels. Standard errors for the performance measures are provided via a bootstrap approach, which is validated using a model-based simulation.
    Keywords: School Performance, Contextual Value-Added, M-Quantile Models, Pupil Efficiency, London
    JEL: C14 C21 I21
    Date: 2010–06–18
  5. By: Ben Craig; Francisca G.-C. Richter
    Abstract: Concentrated poverty has been said to impose a double burden on those that confront it. In addition to an individual's own financial constraints, institutions and social networks of poor neighborhoods can further limit access to quality services and resources for those that live there. This study contributes to the characterization of the relationship between subprime lending and poor neighborhoods by including a spatial dimension to the analysis, in an attempt to capture social effect differences in poor and less poor neighborhoods. The analysis is applied to 2004-2006 census tract level data in Cuyahoga County, home to Cleveland, Ohio, a region that features urban neighborhoods highly segregated by income and race. The patterns found in poor neighborhoods suggest stronger social interaction effects inducing subprime lending in comparison to less poor neighborhoods.
    Keywords: Poverty ; Bank loans ; Subprime mortgage
    Date: 2010
  6. By: Koning, Pierre (CPB Netherlands Bureau for Economic Policy Analysis); van der Wiel, Karen (CPB Netherlands Bureau for Economic Policy Analysis)
    Abstract: This paper analyzes whether information on high school quality published by a national newspaper affects school choice in the Netherlands. For this purpose, we use both school level and individual student level data. First, we study the causal effect of quality scores on the influx of new high school students using a longitudinal school dataset. We find that negative (positive) school quality scores decrease (increase) the number of students choosing a school after the year of publication. The positive effects are particularly large for the academic school track. An academic school track receiving the most positive score sees its inflow of students rise by 15 to 20 students. Second, we study individual school choice behaviour to address the relative importance of the quality scores, as well as potential differences in the quality response between socio-economic groups. Although the probability of attending a school is affected by its quality score, it is mainly driven by the travelling distance. Students are only willing to travel about 200 meters more in order to attend a well-performing rather than an average school. In contrast to equity concerns that are often raised, we cannot find differences in information responses between socio-economic groups.
    Keywords: school quality, school choice, information, media
    JEL: I20 D10 D83
    Date: 2010–06
  7. By: Büyükkarabacak, Berrak; Mykhaylova, Olena
    Abstract: We augment a closed-economy DSGE model with collateral constraints tied to real estate values by incorporating the time-to-build phenomenon in the housing construction sector. Adding construction sector delays significantly improves business cycle properties of the model relative to the versions with no time-to-build delays or with permanently fixed housing stock. We also find that in the presence of construction lags adding housing prices to the central bank policy function increases aggregate welfare in the economy by up to 0.3 percent of consumption. This result is robust to several specifications of the Taylor rule and to changes in key parameter values.
    Keywords: Housing prices; housing construction; time-to-build; welfare.
    JEL: E32 E58 E52 E44
    Date: 2010–06–15
  8. By: James Alm
    Abstract: Various trends, including an increasing emphasis on fiscal decentralization; political democratization in many areas; globalization and the financial liberalization that often accompanies it; growing demands for urban services as urbanization continues in major cities around the world; all argue compellingly for finding ways to help municipalities finance large scale infrastructure. Improved urban infrastructure, for water supply, sanitation, urban transportation and solid waste management is widely believed essential in encouraging and facilitating economic growth. Evidence indicates that those countries most successful in sustaining high growth supported their cities with transformative investments to improve urban infrastructure that could accommodate rapid population growth in major economic centers. This evidence suggests that infrastructure has a strong “supplyside†orientation and in practice, it is the effects of infrastructure on “supply†that are most often emphasized. There is also a strong “demand-side†aspect: individuals and businesses value the services that flow from the stock of infrastructure facilities and these demands should be (but are often not) considered in determining the appropriate level of infrastructure investment. In addition to the potential supply-and-demand-side impacts on economic growth, the services of infrastructure also play a significant role in the distribution of income.[Working paper No. 19]
    Keywords: political democratization, liberalization, urbanization, economic growth, income
    Date: 2010
  9. By: Kondylis, Florence; Manacorda, Marco
    Abstract: Is improved school accessibility an effective policy tool for reducing child labor in developing countries? We address this question using micro data from rural Tanzania and a regression strategy that attempts to control for non-random location of households around schools as well as classical and nonclassical measurement error in self-reported distance to school. Consistent with a simple model of child labor supply, but contrary to what appears to be a widespread perception, our analysis shows that school proximity leads to a rise in school attendance but no fall in child labor.
    Keywords: child labor; distance to school; school enrollment
    JEL: J22 J82 O12 O55
    Date: 2010–06
  10. By: Yacine Belarbi; Abdallah Zouache (CREUSET-CNRS, University of Lyon, Saint-Etienne, France)
    Abstract: This paper examines the economic forces that explain regional growth in Algeria in the period 1998-2005. Since the beginning of structural reforms in the early 1980s, the Algerian economy has experienced a transition from a soviet-kind planned economy to a market economy. Furthermore, from 1990 to 2000, Algeria experienced many political and economic troubles and was even forced by the IMF to follow a structural adjustment program between 1994 and 1998. This paper studies the relation between industrial employment growth per capita in 48 Algerian regions and the geographical location of those regions in terms of immediate neighborhood. Our results demonstrate that there is no convergence process between the Algerian regions. In other words, “rich” Algerian regions stay rich whereas relatively poor regions stay poor. In that vein, the significance of the spatial dependence coefficient may reveal that there are convergence clubs in Algeria. Growth dynamics in Algeria are not equitably distributed.
    Date: 2009–08
  11. By: Juan Miguel Benito (Universidad Publica de Navarra); Pablo Brañas-Garza (GLOBE: Universidad de Granada); Penelope Hernandez (ERI-CES); Juan A. Sanchis (ERI-CES)
    Abstract: This paper shows the results of experiments where subjects play the Schelling's spatial proximity model (1969, 1971a). Two types of experiments are conducted; one in which choices are made sequentially, and a variation of the first where the decision-making is simultaneous. The results of the sequential experiments are identical to Schelling's prediction: subjects finish in a segregated equilibrium. Likewise, in the variant of the simultaneous decision experiment the same result is reached: segregation. Subjects’ heterogeneity generates a series of focal points in the first round. In order to locate themselves, subjects use these focal points immediately, and as a result, the segregation takes place again. Furthermore, simultaneous experiments with commuting costs allow us to conclude that introducing positive moving costs does not affect segregation.
    Keywords: Schelling models, economic experiments, segregation
    Date: 2010–06
  12. By: Emilie CALDEIRA; Grégoire ROTA-GRAZIOSI (Centre d'Etudes et de Recherches sur le Développement International); Martial FOUCAULT
    Abstract: Without denying particular dimensions of the decentralisation in Sub-Saharan countries, this paper applies standard reasoning from the fiscal federalism literature to a developing country and tests the existence of strategic interactions among local Beninese governments, called 'communes'. We first propose a two-jurisdiction model of public expenditure interactions, considering a constrained Nash equilibrium to capture the extreme poverty of some communes. We show that spillovers among jurisdictions involve strategic behaviours of local officials who have sufficient levels of fiscal resources. Second, by estimating a spatial lag model, our analysis provides evidence for the presence of strategic interactions in Benin, contingent on 'communes fiscal autonomy. Such interactions arise among communes which are geographically or ethnically close. We also highlight both an opportunistic behaviour of local governments before local elections and an effect of partisan affiliations. This African democracy appears to be as concerned as developed democracies with strategic fiscal interactions.
    Keywords: Fiscal interactions, benin, decentralisation, local government, dynamic panel data
    JEL: H7 H2 D72
    Date: 2010
  13. By: Nathalie Havet (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines); Alexis Penot (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines)
    Abstract: While many countries have implemented various incentives to promote homeownership, this paper investigates the literature on the relationship between this residential status and the labour market performances. Since the rather negative original contribution by Oswald (1996), the literature has been extending the analyses to more precise measures of labor markets performances, to more subtle descriptions of residential status and to more sophisticated econometric techniques on individual data. Overall, the Oswald's hypothesis finds little support.
    Keywords: housing tenure choice ; Oswald's hypothesis ; labour market transitions ; wages
    Date: 2010
  14. By: Michelle von Ahn (London Borough of Newham); Ruth Lupton (London School of Economics and Political Science)
    Abstract: For the first time in 2008 the Annual School Census (ASC) required all schools to provide pupil information on the language spoken at home. Our analysis focuses on children attending state schools in London. Over 300 languages are spoken by London pupils, around 60% of London pupils are English speakers however, there are over 40 languages spoken by more than 1,000 pupils. Bengali, Urdu and Somali are the top three languages spoken in London, other than English. We show that English has a `doughnut' shaped geographical distribution in London, being the predominant language in most of Outer London. Languages other than English are more common in Inner London. Most minority languages, such as Bengali, Urdu and Turkish, have one, two or three main clusters, reflected settled immigrant communities. However others, notably Somali, are widely dispersed. This has implications for service provision. Some of the ethnic categories that are widely used in analysis of Census data hide substantial linguistic diversity, particularly `Black African' and `White Other.' Within London, where these groups are numerous, language data provides a valuable disaggregation of these heterogeneous groups. Our work suggests that language spoken provides a means to better understand the relationship between ethnicity and educational performance.
    Keywords: Languages, London, ethnicity, educational performance
    JEL: I20 R23 Z13
    Date: 2010–06–21
  15. By: Paul Clarke (Centre for Market and Public Organisation, University of Bristol, 2 Priory Road, Bristol, BS8 1TX.); Claire Crawford (Institute for Fiscal Studies, 7 Ridgmount Street, London, WC1E 7AE; Institute of Education, University of London, 20 Bedford Way, London WC1H 0AL, UK.); Fiona Steele (Centre for Multilevel Modelling, Graduate School of Education, University of Bristol, 2 Priory Road, Bristol, BS8 1TX); Anna Vignoles (Department of Quantitative Social Science, Institute of Education, University of London. 20 Bedford Way, London WC1H 0AL, UK.)
    Abstract: We discuss the use of fixed and random effects models in the context of educational research and set out the assumptions behind the two modelling approaches. To illustrate the issues that should be considered when choosing between these approaches, we analyse the determinants of pupil achievement in primary school, using data from the Avon Longitudinal Study of Parents and Children. We conclude that a fixed effects approach will be preferable in scenarios where the primary interest is in policy-relevant inference of the effects of individual characteristics, but the process through which pupils are selected into schools is poorly understood or the data are too limited to adjust for the effects of selection. In this context, the robustness of the fixed effects approach to the random effects assumption is attractive, and educational researchers should consider using it, even if only to assess the robustness of estimates obtained from random effects models. On the other hand, when the selection mechanism is fairly well understood and the researcher has access to rich data, the random effects model should naturally be preferred because it can produce policy-relevant estimates while allowing a wider range of research questions to be addressed. Moreover, random effects estimators of regression coefficients and shrinkage estimators of school effects are more statistically efficient than those for fixed effects.
    Keywords: fixed effects, random effects, multilevel modelling, education, pupil achievement
    JEL: C52 I21
    Date: 2010–06–18
  16. By: Consoli, Davide; Vona, Francesco; Saarivirta, Toni
    Abstract: The recent history of Finland has been shaped by the rollercoaster of the 1990s when the economy went from deep recession to becoming among the most innovative and competitive within merely a decade. Economic recovery driven by the surge of ICT-related industries with the active support of the higher education system gave way also to growing inequalities among regions, especially within graduate workers. The paper elaborates an empirical analysis of the returns to education of a cohort entering the labour force between 1995 and 2005; our objective is to capture the extent of spatial and occupational determinants on income distribution as Finland slid from its most troubled to most prosperous times.
    JEL: R11 J24 J31
    Date: 2010–03–02
  17. By: Sean Corcoran; William N. Evans
    Abstract: Using a panel of U.S. school districts spanning 1970 – 2000, we examine the relationship between income inequality and fiscal support for public education. In contrast with recent theoretical and empirical work suggesting a negative relationship between inequality and public spending, we find results consistent with a median voter model, in which inequality that reduces the median voter’s tax share induces higher local spending on public education. We estimate that 12 to 22 percent of the increase in local school spending over this period is attributable to rising inequality.
    JEL: H72 I21 I22
    Date: 2010–06
  18. By: Francesca Foliano (Department of Quantitative Social Science, Institute of Education, University of London. 20 Bedford Way, London WC1H 0AL, UK.); Elena Meschi (Department of Quantitative Social Science, Institute of Education, University of London. 20 Bedford Way, London WC1H 0AL, UK.); Anna Vignoles (Department of Quantitative Social Science, Institute of Education, University of London. 20 Bedford Way, London WC1H 0AL, UK.)
    Abstract: .
    JEL: I21
    Date: 2010–05–24
  19. By: stefano Colombo (DISCE, Università Cattolica)
    Abstract: The unidirectional Hotelling model where consumers can buy only from firms located on their right (left) is extended to allow for elastic demand functions. A Bertrand-type model and a Cournot-type model are considered. If firms choose location and then set prices, agglomeration never arises; instead, if firms choose location and then set quantities, agglomeration arises at one endpoint of the segment when transportation costs are low enough. Equilibrium distance between firms is lower in Cournot than Bertrand under the whole parameters’ set. We also study the impact of firms’ location on perfect collusion sustainability. We show that when consumers can buy only from firms located on their right (left), the incentive to deviate of each firm decreases the more the firm is located to the right (left) and the more the rival is located to the left (right).
    Keywords: Unidirectional Hotelling model; Location equilibrium; Collusion; Bertrand; Cournot.
    JEL: D43 L11 L41
    Date: 2010–05
  20. By: Matias Busso; Jesse Gregory; Patrick M. Kline
    Abstract: This paper empirically assesses the incidence and efficiency of Round I of the federal urban Empowerment Zone (EZ) program using confidential microdata from the Decennial Census and the Longitudinal Business Database. To ground our welfare analysis, we develop a heterogeneous agent general equilibrium model in which the distortions generated by place-based policies depend upon a set of reduced form elasticities which our empirical work centers on estimating. Using rejected and future applicants to the EZ program as controls we find that EZ designation substantially increased employment in zone neighborhoods, particularly for zone residents. The program also generated wage increases for workers from zone neighborhoods worth approximately $320M per year. Based upon estimates of the number of jobs created for zone residents, we find that EZ employment credits generated deadweight costs equal to (at most) seven percent of their flow cost.
    JEL: C21 H2 O1 R58
    Date: 2010–06
  21. By: Corinne Autant-Bernard (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines); Nadine Massard (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines); Muriel Fadairo (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines)
    Abstract: This article builds upon empirical results concerning localised knowledge spillovers to highlight some policy implications within European regions. The analysis emphasises the role of regional innovation policies in supporting the institutions that generate knowledge and learning. However, the variety of regional features presented in the empirical literature suggests that the search for universal policy tools is unrealistic. From this perspective, we argue that original strategies must be generated to cope with the various dilemmas faced by regional innovation policies. Such specific strategies require accurate knowledge of local features. Improving data and indicators to diagnose and monitor regional innovation is therefore presented as a key issue for policy makers
    Keywords: innovation policy ; localised knowledge flows ; European regions ; knowledge-based economy
    Date: 2010
  22. By: Paul M. Sommers
    JEL: L83 L85
    Date: 2010
  23. By: Christophe J. Godlewski (LaRGE Research Center, Université de Strasbourg); Bulat Sanditov (University of Maastricht); Thierry Burger-Helmchen (BETA Research Center, Université de Strasbourg)
    Abstract: We investigate the network structure of syndicated lending markets and evaluate the impact of lenders’ network centrality, considered as measures of their experience and reputation, on borrowing costs. We show that the market for syndicated loans is a “small world” characterized by large local density and short social distances between lenders. Such a network structure allows for better information and resources flows between banks thus enhancing their social capital. We then show that lenders’ experience and reputation play a significant role in reducing loan spreads and thus increasing borrower’s wealth.
    Keywords: Agency costs, bank syndicate, experience, loan syndication, reputation, small world, social network analysis.
    JEL: G21 G24 L14
    Date: 2010
  24. By: Roberto Bande (University of Santiago); Marika Karanassou (Queen Mary, University of London and IZA)
    Abstract: This paper provides new evidence for the evolution of regional unemployment rates in Spain over the 1980-2000 period. We argue that interactive dynamic systems of labour demand, wage setting, and labour force equations (i) allow for a richer interpretation of regional disparities, and (ii) can capture the unemployment effects of growing variables such as capital stock. After classifying the 17 Spanish regions into high and low unemployment groups using kernel and cluster techniques, we estimate a structural labour market model for each group and evaluate the unemployment contributions of investment, benefits, taxes, and the oil price. We find that the main driving force of regional unemployment swings is capital accumulation.
    Keywords: Regional unemployment, Disparities, Capital accummulation, Kernel, Cluster.
    JEL: R23 J64
    Date: 2010–06
  25. By: Christoph Kober
    Date: 2010–05–27
  26. By: Matthias Böttcher
    Date: 2010–05–27
  27. By: Sampagnaro, Gabriele; Battaglia, Francesca
    Abstract: This paper addresses the issue of data quality in the real estate market. In many countries, the returns indices for direct markets are provided by several sources differing in terms of the methodology adopted and index weights. These differences produce a lack of informative standardization, which could negatively affect the ability of market participants to make predictions. By focusing on the Italian real estate market, the aim of the paper is therefore twofold: to investigate the reliability of property data sources, and to assess the impact for financial intermediaries involved in real estate investments. Our results show a significant level of divergence between the data, and considerable implications for those financial institutions dealing with them. These findings conflict with the requirements of an efficient (or at least sub-efficient) market.
    Keywords: real estate; data divergence; IRR; efficient frontier
    JEL: G11 L85 L15
    Date: 2010
  28. By: Sabith Ullah Khan
    Abstract: Public Works Department is engaged in planning, designing, construction and maintenance of government assets in the field of built environment and infrastructure development. This paper talks about the works of Public Works department of the Government of Delhi and the reform measures undertaken by them.[Working Paper No. 0056]
    Keywords: Public Works Department, planning, designing, construction, maintenance, government assets, infrastructure development, Government of Delhi, reform measures
    Date: 2010
  29. By: Samantak Das
    Abstract: The present study shows that informal barriers/para-tariff in India-Bangladesh trade are already high and further trade liberalisation without improving the infrastructure and reducing corruption would be counter productive.[Working Paper No. 92]
    Keywords: globalised, international borders, liberalisation, India-Bangladesh, infrastructure, productive
    Date: 2010
  30. By: Nancy Qian
    Abstract: Many believe that increasing the quantity of children will lead to a decrease in their quality. This paper exploits plausibly exogenous changes in family size caused by relax- actions in China's One Child Policy to estimate the causal effect of family size on school enrollment of the …first child. The results show that for one-child families, an additional child signi…ficantly increased school enrollment of …first-born children by approximately 16 percentage-points. The effect is larger for households where the children are of the same sex, which is consistent with the existence of economies of scale in schooling costs.[Working Paper No. 228]
    Keywords: Education, Development, Family Planning
    Date: 2010
  31. By: Jorrit Sennema
    Date: 2010–06–08
  32. By: David N. Figlio; Mark Rush; Lu Yin
    Abstract: This paper presents the first experimental evidence on the effects of live versus internet media of instruction. Students in a large introductory microeconomics course at a major research university were randomly assigned to live lectures versus watching these same lectures in an internet setting, where all other factors (e.g., instruction, supplemental materials) were the same. Counter to the conclusions drawn by a recent U.S. Department of Education meta-analysis of non-experimental analyses of internet instruction in higher education, we find modest evidence that live-only instruction dominates internet instruction. These results are particularly strong for Hispanic students, male students, and lower-achieving students. We also provide suggestions for future experimentation in other settings.
    JEL: I20 I23
    Date: 2010–06
  33. By: Leigh, Andrew (Australian National University); Neill, Christine (Wilfrid Laurier University)
    Abstract: In 1997, Australia implemented a gun buyback program that reduced the stock of firearms by around one-fifth. Using differences across states in the number of firearms withdrawn, we test whether the reduction in firearms availability affected firearm homicide and suicide rates. We find that the buyback led to a drop in the firearm suicide rates of almost 80 per cent, with no statistically significant effect on non-firearm death rates. The estimated effect on firearm homicides is of similar magnitude, but is less precise. The results are robust to a variety of specification checks, and to instrumenting the state-level buyback rate.
    Keywords: firearms ownership, homicide, suicide, panel data
    JEL: I12 K14
    Date: 2010–06
  34. By: Robert P. Inman
    Abstract: The 2007-2010 recession has imposed significant fiscal hardships on state and local governments. The result has been state deficits and the need to increase state taxes, cut spending, and withdraw funds from state rainy day accounts. The primary cause of state budget “gaps” has been the rise in the level of state unemployment. There is no evidence that gaps are related to state political institutions, the state’s prior receipt of federal funding, or possibly favored access to key congressional budget committees. The federal government has responded to these gaps with the passage of the American Recovery and Reinvestment Act (ARRA) of 2009 intended to aid states in fiscal distress and to provide an economic stimulus. As insurance for fiscal distress, ARRA covers at most $.23 of each additional dollar of a state’s budget gap; there is a large per capita payment that goes to all states, independent of the level of state deficits. As targeted assistance for stimulating local economies, ARRA funding is uncorrelated with state unemployment rates. ARRA funding appears to be decided by congressional politics, given the desire to pass a major spending and tax relief package as quickly as possible. States are important “agents” for federal macro-policy, but agents with their own needs and objectives.
    JEL: H71 H77 H81
    Date: 2010–06
  35. By: Machin, Stephen (University College London); Marie, Olivier (ROA, Maastricht University); Vujić, Sunčica (London School of Economics)
    Abstract: In this paper, we present evidence on empirical connections between crime and education, using various data sources from Britain. A robust finding is that criminal activity is negatively associated with higher levels of education. However, it is essential to ensure that the direction of causation flows from education to crime. Therefore, we identify the effect of education on participation in criminal activity using changes in compulsory school leaving age laws over time to account for the endogeneity of education. In this causal approach, for property crimes, the negative crime-education relationship remains strong and significant. The implications of these findings are unambiguous and clear. They show that improving education can yield significant social benefits and can be a key policy tool in the drive to reduce crime.
    Keywords: crime, education, offenders
    JEL: I2 K42
    Date: 2010–06
  36. By: Perelman, Sergio; Serebrisky, Tomas
    Abstract: This paper studies the technical efficiency of airports in Latin America. The evolution of productive efficiency in the region has seldom been studied, mainly due to lack of publicly available data. Relying on a unique dataset that was obtained through questionnaires distributed to airport operators, the authors use Data Envelopment Analysis methods to compute an efficient production frontier and compare the technical efficiency of Latin American airports relative to airports around the world. In a second stage, they estimate a truncated regression to study the drivers of observed differences in airport efficiency. According to the results, institutional variables (private/public operation), the socioeconomic environment (level of gross domestic product), and airport characteristics (hub airport, share of commercial revenues) matter in explaining airport productive efficiency. Finally, the authors compute total factor productivity changes for Latin American airports for 1995-2007. The region has implemented a wide variety of private sector participation schemes for the operation of airports since the mid 1990s. The results show that private operators have not had higher rates of total factor productivity change.
    Keywords: Airports and Air Services,Transport Economics Policy&Planning,Infrastructure Economics,Export Competitiveness,Knowledge for Development
    Date: 2010–06–01
  37. By: Christiano Arrigoni Coelho (Banco Central do Brasil e Department of Economics PUC-Rio); Bruno Funchal (FUCAPE Business School); João Manoel Pinho de Mello (Department of Economics PUC-Rio)
    Abstract: In 2004, Brazil provided an interesting natural experiment concerning personal credit. A new law was enacted allowing banks to offer loans with repayment through automatic payroll or social security benefit deduction, thus removing a significant part of the moral hazard problem by eliminating the choice of default when debtors are able to pay their loans out of their wages. We estimate the impact of the new law using car loans as a control group. We find that, at the industry level, the new law has caused a reduction in interest rates and an increase in the volume of personal credit.
    Keywords: Credit markets, collateral, difference-in-differences. JEL Code: G21; D01; C33; K00; E44.
    Date: 2010–04
  38. By: Stéphane Caprice; Vanessa von Schlippenbach
    Abstract: Analyzing a sequential bargaining framework with one retailer and two suppliers of substitutable goods, we show that slotting fees may emerge as a result of a rent-shifting mechanism when consumer shopping costs are taken into account. If consumers economize on their shopping costs by bundling their purchases, their buying decision depends rather on the price for the whole shopping basket than on individual product prices. This induces complementarities between the goods offered at a retail outlet. If the complementarity effect resulting from shopping costs dominates the original substitution effect, the wholesale price negotiated with the first supplier is upward distorted in order to shift rent from the second supplier. As long as the first supplier has only little bargaining power, she compensates the retailer for the upward distorted wholesale price by paying a slotting fee. We also show that banning slotting fees causes per- unit price to fall and welfare to increase.
    Keywords: Shopping costs, rent-shifting, slotting fees
    JEL: L22 L42
    Date: 2010

This nep-ure issue is ©2010 by Steve Ross. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.