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on Urban and Real Estate Economics |
| By: | Børsum, Øystein (Dept. of Economics, University of Oslo) |
| Abstract: | This paper analyses the default option typical to American mortgages. House-holds borrow to buy durable housing, but future house prices are uncertain, and households find it advantageous to default on their debt if house prices fall suffi- ciently. A key assumption of the model is that households are relegated to the rental market upon default, and that there is a small pecuniary inefficiency (“iceberg cost”) in renting. This leads defaulters to substitute consumption of other goods for housing; that is, the demand for housing falls upon default. Consequently, when some households default, aggregate demand for housing is reduced, hence house prices fall more, possibly inciting other households to default. This complementarity is a source of multiple equilibria, and a price externality. Using a specific case for which an analytical solution can be derived, I show that contagion is possible: it may be that the default of a minority (interpretable as sub-prime borrowers) spreads to a majority (interpretable as prime borrowers). |
| Keywords: | Housing demand; Mortgage market; Default risk; Multiple equilibria Contagion |
| JEL: | E21 G11 R21 |
| Date: | 2010–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2010_010&r=ure |
| By: | Buddin, Richard |
| Abstract: | This study uses value-added methods to examine the effectiveness of Los Angeles elementary teachers and schools. The results show that teacher effectiveness varies substantially across the school district. Most of the variance in teacher effectiveness is within schools and not across schools. Traditional measures of teacher quality like experience and advanced degrees are weakly related to teacher effectiveness. Teacher effectiveness is more variable in mathematics than in language arts. |
| Keywords: | teacher quality; teacher effectiveness; student achievement; value-added analysis |
| JEL: | J45 H75 J44 I21 |
| Date: | 2010–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27366&r=ure |
| By: | del Cacho, Carlos |
| Abstract: | We compare the performance of both hedonic and non-hedonic pricing models applied to the problem of housing valuation in the city of Madrid. Urban areas pose several challenges in data mining because of the potential presence of different market segments originated from geospatial relations. Among the algorithms presented, ensembles of M5 model trees consistently showed superior correlation rates in out of sample data. Additionally, they improved the mean relative error rate by 23% when compared with the popular method of assessing the average price per square meter in each neighborhood, outperforming commonplace multiple linear regression models and artificial neural networks as well within our dataset, comprised of 25415 residential properties. |
| Keywords: | mass appraisal; real estate; data mining |
| JEL: | L85 |
| Date: | 2010–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27378&r=ure |
| By: | Antonia Díaz; Belén Jerez |
| Abstract: | We build a search model of the housing market which captures the illiquidity of housing assets. In this model, households experience idiosyncratic shocks over time which affect how much they value their residence (e.g. the location of their job could change). When hit by a shock, households become mismatched and seek to buy a new home. Yet they take time to locate an appropriate housing unit and to sell their current home. Competitive forces are present in the housing market since, by posting lower prices, sellers increase the average number of buyer visits they get and sell their property faster. We characterize a stationary equilibrium for a fixed housing stock. We then calibrate a stochastic version of the model to reproduce selected aggregate statistics of the U.S. economy. The model is consistent with the high volatility of prices, sales and average time on the market, the positive correlation of prices and sales, and the negative correlation of prices and average time on the market observed in the data. This is not the case when we consider the perfectly competitive version of the model |
| Keywords: | House prices, Sales, Time on the market, Search frictions, Competitive search |
| JEL: | R31 D83 D40 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:cte:werepe:we1033&r=ure |
| By: | Gonzalez-Navarro, Marco (University of California, Berkeley); Quintana-Domeque, Climent (Universidad de Alicante) |
| Abstract: | We design an infrastructure experiment in Mexico to evaluate the impact of street pavement on housing values and household outcomes. We find that the provision of street pavement raises housing values by 16% and land values by 54%, according to professional appraisals. Using homeowner valuations, we estimate the impact of pavement on housing values to be 25%. At the household level, street paving increased the use of collateral-based credit and average loan size. Additionally, among households on paved streets vehicle ownership went up by 40%, while the number of durable goods augmented by 12% as a result of pavement. We provide compelling evidence that the mechanism explaining the durable goods increase is the credit channel: the raise in durable goods as well as in credit use was only present among households with access to financial services at baseline. This suggests that increments in the value of collateral are not sufficient to expand credit use in this context. Access to the financial sector is necessary for street pavement to be reflected in higher consumption of durable goods. Finally, we estimate the private gains to land plots on paved streets to be 109% of construction costs, which can have important implications for urban infrastructure financing. |
| Keywords: | randomized controlled trial, street pavement, home values, durable goods, credit |
| JEL: | C92 C93 H41 O12 O15 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5346&r=ure |
| By: | González-Val, Rafael; Olmo, Jose |
| Abstract: | This article analyzes the main existing theories on income and population city growth: the existence of increasing returns to scale, the importance of locational fundamentals, and random growth. To do this we develop a nonlinearity test that is implemented to a dataset on urban, climatological and macroeconomic variables on 1,175 U.S. cities. The conclusions of our analysis are that there are increasing returns to scale on city income growth; nevertheless, the most important variables to explain income growth are locational fundamentals. Both sets of variables need to be jointly considered to avoid inconsistent model parameter estimates. We also observe increasing returns to scale on population growth; larger cities grow at a faster pace than smaller cities. These cities are not, however, within the group of wealthiest cities implying the existence of a threshold on population beyond which per-capita income growth stagnates or even deteriorates. |
| Keywords: | threshold nonlinearity test; locational fundamentals; multiple equilibria; random growth |
| JEL: | C13 O10 R00 C12 C33 R11 |
| Date: | 2010–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27139&r=ure |
| By: | Shashanka Bhide; D.B. Gupta; Tarujyoti Buragohain; D.V. Sethi; Shailender Kumar; S.K. Bathla (National Council for Applied Economic Research) |
| Keywords: | rural housing, economic development, India |
| JEL: | R21 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:develo:2416&r=ure |
| By: | Lanot, Gauthier; Leece, David |
| Abstract: | The research estimates a competing risk model of mortgage terminations on a sample of UK securitized subprime mortgages. We consider whether the variety of mortgage contracts that were securitized explains the performance of subprime securities and their supposed ‘idiosyncratic’ behaviour. The methodological advance is the use of a general, flexible modelling of unobserved heterogeneity over several dimensions, controlling for both selection issues involving mortgage choice and dynamic selection over time. We conclude that securities consisting of subprime loans can be given meaningful valuations on bank balance sheets if the performance of the different types of loans can be better understood. JEL Codes: G21 C13 C25 C51 D10 D14 E44 |
| Keywords: | Subprime mortgages; unobserved heterogeneity; loan performance; securitisation; |
| JEL: | G21 |
| Date: | 2010–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27137&r=ure |
| By: | Giulio Cainelli (Dipartimento di Scienze Economiche “Marco Fanno”, Università degli Studi di Padova); Donato Iacobucci (Dipartimento di Ingegneria Informatica, Gestionale e dell’Automazione, Università Politecnica delle Marche) |
| Abstract: | Several recent studies investigate the relation between geographic concentration of production and vertical integration based on the hypothesis that spatial agglomeration of firms in the same industry facilitates input procurement thereby reducing the degree of vertical integration. The present paper contributes to this debate. We are interested specifically in assessing the effect of specialization compared to variety, in local production systems, in these decisions. Using a dataset of 24,663 Italian business groups for 2001, we estimate Tobit models to investigate the influence of these forces on the degree of vertical integration. Following a methodology developed by Fan et al. (2009), we construct an index of vertical integration in business groups using information on the activities of firms belonging to the same group, and information from input-output tables on the exchanges between industries. Our evidence supports the hypothesis that vertical integration choices are influenced by agglomeration forces. Moreover, we find that the higher the variety in the local system the lower the need for firms to integrate activities since they can acquire intermediate goods and services from within the local system. Finally, we show that it is not variety ‘per se’ that matters for vertical integration choices, but the presence of technologically related activities. |
| Keywords: | vertical integration, agglomeration, related-variety, business groups |
| JEL: | L2 M2 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:cme:wpaper:1005&r=ure |
| By: | Leung, Charles Ka Yui; Chow, Kenneth; Yiu, Matthew; Tam, Dickson |
| Abstract: | This paper attempts to contribute in several ways. Theoretically, it proposes simple models of house price dynamics and construction dynamics, all based on forward-looking agents’ maximization problems, which may carry independent interests. Simplified version of the model implications are estimated with the data from four major cities in China. Both price and construction dynamics exhibit strong persistence in al cities. Significant heterogeneity across cities is found. Our models out-perform widely used alternatives in in-sample-fitting for all cities, although similar success only limited to highly developed cities in out-of-sample forecasting. Policy implications and future research directions are also discussed. |
| Keywords: | pre-sale; production constraint; collateral constraint; cross-city heterogeneity; fundamental versus policy |
| JEL: | R30 E30 C33 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27367&r=ure |
| By: | Cernaianu, Nicolae |
| Abstract: | Increased transportation demand creates new problems specialists, putting them in a position to find practical solutions to match. Analysis of the current structure of Romanian road transport process involves an analytical approach that exceed the basis of their decisions only experience and intuition. Romanian transport movement by way of such analysis and planning leads to strategic directions of their more robust. |
| Keywords: | Strategic Planning; Strategic Management; Traffic Plans; Accessibility; Intermodality; Sustainable Development |
| JEL: | H54 F41 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27002&r=ure |
| By: | Tom Broekel |
| Abstract: | The paper investigates the impact of R&D subsidies on regional innovation efficiency. Building on a rich panel data set covering 270 German labor market regions and four industries, it is particularly shown that subsidies for R&D cooperation are a suitable policy measure for stimulating the innovation efficiency of regions. The empirical findings moreover suggest that regions with low innovation capacities benefit from subsidized inter-regional cooperation involving partners with diverse industrial and sectoral backgrounds. Establishing inter-regional cooperation that give access to related knowledge and skills is more important for regions with large innovation capacities. |
| Keywords: | innovation policy, regional innovation efficiency, R&D subsidies, cooperation networks, knowledge networks |
| JEL: | O18 O38 R58 R12 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1017&r=ure |
| By: | Laure Cabantous (Nottingham University - Nottingham University Business School); Olivier Chanel (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - CNRS : UMR6579); Jean-Christophe Vergnaud (CERSES - Centre de recherche sens, ethique, société - CNRS : UMR8137 - Université Paris Descartes, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I) |
| Abstract: | Transport generates many externalities, some related to atmospheric pollution. In this paper, we focus on two: greenhouse gases, and local pollution. In the search for optimal transport policies, these two externalities have usually been analysed separately. Here, we study them jointly, in a sequential decision-making model. Our model allows for the irreversibility of the policies undertaken, as well as the possibility of a progressive reduction of uncertainties with the arrival of information. We find that when both sources of externalities are analysed jointly, structural measures enabling private transport requirements to be reduced are identified as being more advantageous economically than technological measures to reduce emissions of pollutants. We illustrate the usefulness of a joint analysis of externalities with two examples: tax measures on cars and housing policy. |
| Keywords: | climate change; model of decision-making under uncertainty; irreversibilities; transport policy |
| Date: | 2010–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00543966_v1&r=ure |
| By: | Mr Hasanuzzaman; Zeeshaan Rahman (Centre for Policy Dialogue) |
| Keywords: | South Asia, economic integration, Bangladesh, transport costs |
| JEL: | F00 F15 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:tradew:2404&r=ure |
| By: | Banerjee, Ritwik; King, Elizabeth M.; Orazem, Peter; Paterno, Elizabeth M. |
| Abstract: | A theoretical model is advanced that demonstrates that, if teacher and student attendance generate a shared good, then teacher and student attendance will be mutually reinforcing. Using data from the Northwest Frontier Province of Pakistan, empirical evidence supporting that proposition is advanced. Controlling for the endogeneity of teacher and student attendance, the most powerful factor raising teacher attendance is the attendance of the children in the school, and the most important factor influencing child attendance is the presence of the teacher. The results suggest that one important avenue to be explored in developing policies to reduce teacher absenteeism is to focus on raising the attendance of children. |
| Keywords: | Absenteeism; teacher attendance; student attendance; shared good; Northwest Frontier Province; Pakistan |
| JEL: | I21 I28 |
| Date: | 2010–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:32167&r=ure |
| By: | Giaccaria Sergio; Frontuto Vito (University of Turin) |
| Abstract: | The taxation for urban waste management has been reformed in Italy by the introduction of the environmental law in 2006. In the planning phase of waste management the externalities (social and environmental costs) generated by new facilities remain widely naccounted, with a consequent distortion for prices, and the raise of local conflicts. In order to support the diffusion of cost-benefit application the paper presents a survey based on the choice modelling methodology, aimed to evaluate on a monetary scale the disamenity effect perceived by incinerator and landfills in an italian urban context: the city of Turin. The choice experiment and the survey data allowed to model in a random utility framework the behaviour of respondents, whose choices are found to be driven by the endowment of information about technological options, socio-economic characteristics as income, education, family composition, and also by their health status. We propose choice modelling surveys as a way to improve the level of information about the preferences of citizens in a bottom-up sense. Furthermore, we found empiricalevidence that the behaviour in residential location choices is affected by different aspects of the respondent life and in particular by the health status. Distinct estimates of willingness to accept compensation for disamenity effects of incinerator (€2670) and landfill (€3816) are elicited through the choice modelling aaproach. The effect of health status of the respondents, their level of information about the waste disposal infrastructure, the presence of a subjective strong aversion (NIMBY) and the actual endowment and concentration of infrastructures are demonstrated to be significant factors determining the choice behaviour, but differentiated and specific for incinerators and landfills |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201004&r=ure |
| By: | Kevin Denny (School of Economics, University College Dublin); Veruska Oppedisano (Department of Economics, University College London) |
| Abstract: | This paper estimates the marginal effect of class size on educational attainment of high school students. We control for the potential endogeneity of class size in two ways using a conventional instrumental variable approach, based on changes in cohort size, and an alternative method where identification is based on restriction on higher moments. The data is drawn from the Program for International Student Assessment (PISA) collected in 2003 for the United States and the United Kingdom. Using either method or the two in conjunction leads to the conclusion that increases in class size lead to improvements in student’s mathematics scores. Only the results for the United Kingdom are statistically significant. |
| Keywords: | class sizes, educational production |
| Date: | 2010–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:ucd:wpaper:201051&r=ure |
| By: | Nikolaos Papanikolaou (Luxembourg School of Finance, University of Luxembourg) |
| Abstract: | In this paper we construct a theoretical model of spatial banking competition that considers the differential information among banks and potential borrowers in order to investigate how market structure affects the lending behavior of banks and their incentives to invest in screening technology. Consistent with the prevailing view in the relevant literature, our results reveal that competition reduces lending cost, which, in turn, encourages the entry of new customers in the loan market. Also, that the transportation cost that potential borrowers have to pay in order to reach the bank of their interest is decreased with the degree of competitiveness. Importantly, we demonstrate that market structure exerts a considerable positive effect on banks’ incentives to screen their loan applicants since banks are found to invest more in screening as competition in the market becomes higher. This is to say, banks resort to screening that serves as a buffer mechanism against bad credit which entails higher risk and which is more likely under competitive conditions. Overall, our findings provide support to a rather close link between the degree of competition, bank lending activity, and the investment of banks in screening technology. |
| Keywords: | banking; spatial competition; screening; credit risk |
| JEL: | G21 D41 D80 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:crf:wpaper:10-11&r=ure |
| By: | Skribans, Valerijs |
| Abstract: | In a paper construction branch forecasting model which allows to estimate the industry development problems is shown. Difference from anthers models, in given paper the main attention is turned to the building of the living area. Model stands from sub model (blocks): amount of apartments, real estate prices, necessity of apartments and living area forecasting models. Their essence and necessity are shown in separate sections. In the paper final, produced model is applied practical, are given model forecasts. The apartments amount forecasting model show supposition, in which, if there is deficit of dwellings in the economic system, then, first of all, are finance and construct apartments with little areas, i.e., multistory buildings with one-room apartments. Apartment’s amount increase depends from the building financing, as also from middle apartment area and building costs of square meter. The real estate prices forecasting model show supposition, that the once certain price is actual while it is not changed with prices influential parameters. The prices influential parameters are: extend (or diminish) of the live fund, the total market influence on separate market segments (and vice versa). The apartment’s necessities forecasting model show supposition, that in beginning a certain volume of necessities remains not changed, while on their has not changed with influential factors. Between the influential factors there are: apartments amount increase – it diminish apartments amount necessities; apartments wear (amount diminish) - it increase apartments amount necessities; improve of live circumstances - it diminish apartments amount necessities. The live area forecasting model is an additional model, which provides functioning of another’s models. Shown supposition was related with a population tries to purchase apartments with such properties which is similar to present at the market apartments. Till with it the middle area in each analyse group is not changes. In not changes middle area circumstances, knowing apartments amount, it is possible to calculate the total live area. Accumulating statistical data it is to adjoin with a problem, that not all data was certain, for a few data only possible borders of oscillations are certain. Till with that, in the paper are examined a few possible situation development variants. Buildings and real estate market development simulated on separate its segments and in an aggregate. Analysing the forecast data for aggregate apartments building in Latvia, in basic scenario it is certain, that the counterbalanced apartments building volume is about 1800 apartments in the year, but noticing oscillations of overproduces and necessities, this size can brief hesitate from 1434 to 2019. A sensitiveness analysis confirms basic scenario, complements it and extends with credible horizon borders. |
| Keywords: | construction demand; housing fund; system dynamic; market modeling; simulation; economic forecasting |
| JEL: | C51 C53 C02 L85 L74 C49 C01 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27323&r=ure |
| By: | Angelo Mele |
| Abstract: | <p><p>In this paper, I develop and estimate a dynamic model of strategic network formation with heterogeneous agents. While existing models have multiple equilibria, I prove the existence of a unique stationary equilibrium, which characterizes the likelihood of observing a specific network in the data. As a consequence, the structural parameters can be estimated using only one observation of the network at a single point in time. The estimation is challenging because the exact evaluation of the likelihood is computationally infeasible. To circumvent this problem, I propose a Bayesian Markov Chain Monte Carlo algorithm that avoids direct evaluation of the likelihood. This method drastically reduces the computational burden of estimating the posterior distribution and allows inference in high dimensional models.</p> </p><p><p>I present an application to the study of segregation in school friendship networks, using data from Add Health containing the actual social networks of students in a representative sample of US schools. My results suggest that for white students, the value of a same-race friend decreases with the fraction of whites in the school. The opposite is true for African American students.</p> </p><p><p>The model is used to study how different desegregation policies may affect the structure of the network in equilibrium. I find an inverted u-shaped relationship between the fraction of students belonging to a racial group and the expected equilibrium segregation levels. These results suggest that desegregation programs may decrease the degree of interracial interaction within schools.</p></p> |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:cemmap:32/10&r=ure |
| By: | Jean Jaskold Gabszewicz; Victor Ginsburgh; Didier Laussel; Shlomo Weber |
| Abstract: | We examine patterns of acquiring non-native languages in a model with two linguistic communities with heterogeneous learning skills, where every individual faces the choice of self-learning the foreign language or acquiring it at a profit-maximizing linguistic school. We consider a one-school model with divisions in both communities and various two-school settings with a school in each community. We compare the number of learners and welfare implications under self-learning with those obtained under various schooling contexts. In particular, we show that for communities with similar size, introducing language schools always increases the number of learners with respect to the exclusive self-learning option. |
| Keywords: | Communicative benefits, linguistic equilibrium, learning costs |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:eca:wpaper:2013/69473&r=ure |
| By: | Steven Bingler |
| Abstract: | The City of New Orleans is implementing an unprecedented plan for the systemic renovation and rebuilding of its schools and infrastructure. One of the cornerstones of the project was public involvement: more than 10 000 citizens were engaged in developing the plan. Its new schools will be but one element of global, far-reaching community programmes... |
| Keywords: | community programmes, public building projects, environmentally sustainable, socially sustainable, community life |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:eduaac:2010/14-en&r=ure |
| By: | Jeffrey Ely |
| Date: | 2010–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:cla:levarc:492&r=ure |
| By: | Tom Doust |
| Abstract: | Through practical design projects, the Sorrell Foundation has demonstrated the advantages of involving children and young people as the main consumers of their school. It counts on good design to bring its customer to the forefront of the product; these in turn become better informed clients and understand the benefits that good design can have on their lives... |
| Keywords: | consumer ownership, school environment, practical design projects, children and young people, design process |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:eduaac:2010/12-en&r=ure |
| By: | Konstantin A. Kholodilin (DIW Berlin, Germany); Boriss Siliverstovs (KOF Swiss Economic Institute, ETH Zurich, Switzerland) |
| Abstract: | We suggest to use Internet car sale price advertisements for measuring economic inequality between and within German regions. Our estimates of regional income levels and Gini indices based on advertisements are highly, positively correlated with the official figures. This implies that the observed car prices can serve as a reasonably good proxy for income levels. In contrast to the traditional measures, our data can be fast and inexpensively retrieved from the web, and more importantly allow to estimate Gini indices at the NUTS2 level – something that never has been done before. Our approach to measuring regional inequality is a useful alternative source of information that could complement the officially available measures. |
| Keywords: | Car price advertisements, economic inequality, German NUTS1 and NUTS regions, Gini index, Internet |
| JEL: | C21 O47 R11 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:10-261&r=ure |
| By: | Pedro de Araujo (Colorado College); James Murray (University of Wisconsin - La Crosse) |
| Abstract: | Many large universities require freshman to live in dormitories on the basis that living on campus leads to better classroom performance and lower drop out incidence. Large universities also provide a number of academic services in dormitories such as tutoring and student organizations that encourage an environment condusive to learn- ing. A survey was administered to college students at a large state school to determine what impact dormitory living has on student performance. We use a handful of instru- mental variable strategies to account for the possibly endogenous decision to live on campus. We nd a robust result across model specications and estimation techniques that on average, living on campus increases GPA by between 0.19 to 0.97. That is, the estimate for the degree of improvement to student performance caused by living on campus ranges between one-fth to one full letter grade. |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:inu:caeprp:2010-002&r=ure |
| By: | Glen Ellison |
| Date: | 2010–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:cla:levarc:391&r=ure |
| By: | Dogruel, Fatma; Dogruel, A. Suut |
| Abstract: | Istanbul and Adana are among the oldest and important industrial zones of Turkey. However, the shares of these two regions in the Turkish manufacturing sector substantially decreased after the year 1980. Initially, Adana was a center for the textile industry and the textile was the engine of the Turkish manufacturing sector. During 1980’s and 1990’s, textile industry gradually lost its dominance. Therefore, the change in the share of Adana can be explained by this phenomenon. On the other hand, manufacturing activities in Istanbul are highly diversified. The basic factor behind the decrease in the share of manufacturing sector of Istanbul is the deindustrialization policy implemented in this city during the last several decades. As a result of this policy some of the plants moved to neighborhoods of Istanbul. At the same time, constructions of new large scale plants were not allowed. In spite of the implementation of the deindustrialization policy, Istanbul still have largest share in the Turkish manufacturing sector. Considering the geographical proximity, in addition to direct effects on Istanbul, it is possible to expect that these policies may indirectly affect neighborhood regions. Employing the spatial statistical techniques, we analyze the growth of the manufacturing in Istanbul and its neighborhoods. The paper also focuses on the effects of the deindustrialization policy on the productivity and the firm size in Istanbul. |
| Keywords: | deindustrialization policy; productivity changes; firm size; shift-share analysis |
| JEL: | O18 R12 R38 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27070&r=ure |
| By: | Antonia Díaz; Belén Jerez |
| Abstract: | In this document we present additional results for our main paper. First, we prove some properties of the steady state of our benchmark economy. Then, we present an alternative calibration |
| Keywords: | House prices, Sales, Time on the market, Search frictions, Competitive search |
| JEL: | R31 D83 D40 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:cte:werepe:we1034&r=ure |
| By: | Calin Arcalean (ESADE Ramon Llull University); Ioana Schiopu (ESADE Ramon Llull University) |
| Abstract: | We investigate the relationship between inequality and education funding in a model of probabilistic voting over public education spending where the private option is available. A change in inequality can have opposite effects at different income levels: higher inequality decreases public spending per student and increases enrollment in public schools in poor economies, while the opposite holds in the rich ones. A change in the tax base can also have non-monotonic e¤ects. We also study the implications of different voting participation across income groups. The predictions of the model are supported by U.S. school district-level data. |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:inu:caeprp:2010-009&r=ure |
| By: | Amado, Raúl Oscar |
| Abstract: | In this paper we study the state's role in the modernization and urban transformation in Buenos Aires in the period 1850-1910. This transformation was connected with the economic movements of the second half of the nineteenth century. It was a modernizing movement, a radical alteration of the production-trade system, composition and population distribution and transport system. No "change" only the city of Buenos Aires. Transformed the campaign and its urban centers as the Atlantic orientation of the new state consolidated and eradicated and institutional instability and monetary policy. The "big village" became a big city, not only because the state wanted it that way. This modernization was not an imitation architecture. It was the economic growth in a time of global crisis which led to the break that caused the admiration of the witnesses of the Centennial, and consolidated national unity could be seen realized the dream of the generation of '37: Enabling Europe in South America. |
| Keywords: | economic history; economic growth; political consolidation of the Argentine government; transport; trade; agriculture |
| JEL: | E0 N16 F02 E23 |
| Date: | 2010–10–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26164&r=ure |
| By: | Cernaianu, Nicolae |
| Abstract: | Romania's standing concerns to adapt its road transport system both in its new developments, and international requirements, have spurred construction of its specific market and, due to the provision of services and ensure freedom of establishment and has defined contributions to the establishment of a common transport policy in Europe. Despite economic constraints, technical and social changes that occurred in our country, the Romanian transport system, threatened new competitive factors, is also evolving its efforts to ensure continuity of service provision, has adapted structures according to its national peculiarities reported in European and international standards, gradually evolving towards a modern and sustainable transport system. |
| Keywords: | Carrier; Quality Operator; Occupation of operator; The material in road; Driver; Human resources specialist; Safety Advisor; Instructor trening; Intermediaries in road transport |
| JEL: | H54 F41 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27048&r=ure |
| By: | Cernaianu, Nicolae |
| Abstract: | The financial risks of investment in infrastructure are important investment projects of this kind. Values are very large amounts to invest may be of little phase and the amounts are invested before the first earnings to be seen. Furthermore, traffic (and hence incomes) grow naturally over time, and lower depreciation rates. On the other hand, revenue projections are very difficult. It is difficult to predict the interest that it will pursue new infrastructure. It is almost impossible to predict the optimal level of payment can be accepted by the user. To optimize this payment is required a departure from the economic theory of maximization of surplus, to incorporate criteria psychological perception of global supply and road tax that a user has. For large facilities for traffic, state involvement is essential. Direct financial return is often weak and negative implications for the community are often important. |
| Keywords: | Farmer; Public Power Socio-economic balance; Pricing methods; Frequency of use of paper; Charging classical; Acceptability of tax |
| JEL: | H54 F41 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27049&r=ure |
| By: | Atila Abdulkadiroglu; Parag A Pathak; Alvin E Roth |
| Date: | 2010–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:cla:levarc:122247000000002108&r=ure |
| By: | Ekin Birol; Sukanya Das (Madras School of Economics) |
| Abstract: | In this paper we employ a stated preference environmental valuation technique, namely the choice experiment method, to estimate local public‟s willingness to pay (WTP) for improvements in the capacity and technology of a sewage treatment plant (STP) in Chandernagore municipality, located on the banks of the River Ganga in India. A pilot choice experiment study is administered to 150 randomly selected Chandernagore residents and the data are analysed using the conditional logit model with interactions. The results reveal that residents of this municipality are willing to pay significant amounts in terms of higher monthly municipality taxes to ensure the full capacity of the STP is used for primary treatment and the technology is upgraded to enable secondary treatment. Overall, the results reported in this paper supports increased investments to improve the capacity and technology of STPs to reduce water pollution, and hence environmental and health risks that are currently threatening the sustainability of the economic, cultural and religious values this sacred river generates. |
| Keywords: | choice experiment method, conditional logit model, River Ganga, sewage treatment plant, water quality, water quantity |
| JEL: | C25 C87 Q5 Q53 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:develo:2405&r=ure |
| By: | Salotti, Simone |
| Abstract: | This article investigates how wealth affected household consumption in the USA in the period 1989-2007. Previous empirical results are mixed, mostly because of the low quality of the data more readily available. We combine information from the Consumer Expenditure Survey and the Survey of Consumer Finances to perform a detailed analysis on the effects of several types of wealth on consumption. Our estimates indicate that there is a significant tangible wealth effect, while financial wealth seems to affect consumption mainly for the richer part of the population. Both effects are larger during periods of prices booms. Older households experience a higher wealth effect out of the house of residence with respect to the younger ones. Finally, a sort of myopic behavior emerges, since households seem to disregard net wealth and decide about consumption looking at gross wealth only. |
| Keywords: | Consumption; Household Wealth; Wealth Effect; Sample combination. |
| JEL: | D12 E21 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27352&r=ure |
| By: | Thierry Bréchet (Université catholique de Louvain); Pierre M. Picard, (University of Luxembourg) |
| Abstract: | Noise-induced pollution constitutes a hot and topical societal problem for all major airports. This paper discusses various issues in the implementation of a market for noise licenses as a solution to solve the noise externality between the residents located around airports and the aircrafts moving in and to airports. |
| Keywords: | Airport; environment; noise; licenses |
| JEL: | Q5 R4 D4 D6 D78 D82 L5 L93 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:10-13&r=ure |
| By: | Jonathan Haskel (Imperial College London and CEPR); Alberto Iozzi (Faculty of Economics, University of Rome "Tor Vergata"); Tommaso Valletti (Faculty of Economics, University of Rome "Tor Vergata") |
| Abstract: | We study bargained input prices where up and downstream firms can choose alternative vertical partners. We apply our model to bargained airport landing fees where a number of interesting policy questions have arisen. For example, what is the impact of joint ownership of airports? Does airline countervailing power stop airports raising fees? Should airports be prohibited, as an EU directive intends, from charging differential prices to airlines? Our major findings are (a) an increase in upstream concentration or in the substitutability between airports always increases the landing fee; (b) the effect of countervailing power, via an increase in downstream concentration, depends on the competition regime between airlines and whether airports can price discriminate: airline concentration reduces the landing fee when downstream competition is in quantities, but if downstream competition is in prices only where airports cannot discriminate. Furthermore, only in a specific case (Bertrand competition, uniform landing fees and undifferentiated goods) will lower fees pass through to consumers. (c) With Cournot competition, uniform landing fees are always higher than discriminatory fees, while the reverse is true with Bertrand competition. We also look at the incentives for airport expansion which raise quantities of passengers paying a given landing fee, but alters the nature of airline competition, which changes the landing fee. |
| Keywords: | Airports, airlines, landing fees, countervailing power |
| JEL: | D43 L13 L93 R48 |
| Date: | 2010–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:rtv:ceisrp:177&r=ure |
| By: | Salotti, Simone |
| Abstract: | How does household wealth influence consumption? The empirical evidence brought so far by the literature is unclear, mostly because of the low quality of the data more readily available: aggregate data, cross sections and panel datasets lacking important variables all present major shortcomings for a proper analysis of the wealth effect. The aim of our paper is to contribute to the appraisal of the wealth effect performing a pseudo-panel analysis for the USA (1989-2007), combining information from the Consumer Expenditure Survey and the Survey of Consumer Finances. We distinguish between total and non durables consumption, and we also investigate the roles of the different components of household wealth, both gross and net. Our estimates indicate that there is a significant tangible wealth effect (between 2 and 4 cents per dollar), with an overwhelming importance of the value of the house of residence. On the contrary, financial wealth seems to positively affect consumption of the older households only. In general, it seems that older households experience higher wealth effects, i.e., extract more liquidity from their assets, than younger ones, which rely more on income effects. |
| Keywords: | Consumption; household wealth; wealth effect; pseudo-panel. |
| JEL: | D12 E21 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27351&r=ure |
| By: | OECD |
| Abstract: | Regulatory authorities in most OECD countries have traditionally adopted a national geographic area focus when framing the geographic scope of telecommunications markets. Arguments stemming from market analysis economics suggest that differential regulation be considered between geographic areas where facility-based competition has developed and where it has not. The aim of this paper is to appraise the case for, and developments in, the use of sub-national geographically segmented regulation for fixed telecommunications networks. |
| Date: | 2010–06–22 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaab:173-en&r=ure |
| By: | Albert Sole-Olle; Elisabet Viladecans-Marsal (Universitat de Barcelona) |
| Abstract: | We analyze whether local land supply is influenced by the degree of political competition, and interpret the findings as being indicative of the influence wielded by land development lobbies. We use a new database including both political and land supply data for more than 2,000 Spanish municipalities for the period 2003-2007. In Spain, land use policies are largely a local responsibility with municipalities having periodically to pass compre- hensive land use plans. The main policy variable in these plans, and the one analyzed here, is the amount of land classified for potential development. We measure local political competition as the margin of victory of the incumbent government. We instrument this variable using the number of votes obtained by parties represented in local government when standing at the first national legislative elections following the re-establishment of democracy, and the number of votes they actually obtained regionally at the national legislative elections. The results indicate that stiffer political competition does indeed reduce the amount of new land designated for development. This effect is found to be most marked in suburbs, in towns with a high percent of commuters and homeowners, and in municipalities governed by the left. |
| Keywords: | urban growth controls, political economy, land use regulations |
| JEL: | Q15 R52 H7 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:bar:bedcje:2010248&r=ure |
| By: | Tiwari, Aviral Kumar; Shahbaz, Muhammad |
| Abstract: | The aim of paper is to investigate the affect of financial development on rural-urban income inequality in India over the period of 1960-2008. In doing so, ARDL bounds testing approach was applied to examine cointegration and Ng-Perron unit root test to check the order of integration of the variables. The results confirmed the existence of cointegration showing long run relationship among the test variables. Furthermore, empirical evidence indicated that financial development, economic growth and consumer prices increase gap between rural-urban earnings. The present study has opened new sights for policy making authorities to implement appropriate economic policies to reduce the rural-urban income inequality in India. |
| Keywords: | Financial development; Rural-urban inequality; India; ARDL. |
| JEL: | O11 O15 O16 G00 |
| Date: | 2010–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27093&r=ure |