nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2011‒02‒12
twenty-six papers chosen by
Steve Ross
University of Connecticut

  1. School autonomy and educational performance: within-country evidence By HINDRIKS, Jean; VERSCHELDE, Marijn; RAYP, Glenn; SCHOORS, Koen
  2. A Dynamic Spatial Panel Data Approach to the German Wave Curve By Badi H. Baltagi; Uwe Blien and Katja Wolf
  3. Spatial differentiation in industrial dynamics A core-periphery analysis based on the Pavitt-Miozzo-Soete taxonomy By Marco Capasso; Elena Cefis; Koen Frenken
  4. Peer Effects, Fast Food Consumption and Adolescent Weight Gain By Bernard Fortin; Myra Yazbeck
  5. Robust Control and Hot Spots in Dynamic Spatially Interconnected Systems By William Brock; Anastasios Xepapadeas
  6. Seemingly Unrelated Regressions with Spatial Error Components By Badi H. Baltagi; Alain Pirotte
  7. School system evaluation by value-added analysis under endogeneity By MANZI, Jorge; SAN MARTIN, Ernesto; VAN BELLEGEM, Sébastien
  8. Local Manufacturing Establishments and the Earnings of Manufacturing Workers: Insights from Matched Employer-Employee Data By Charles M. Tolbert; Troy C. Blanchard
  9. The Impact of Interest in School on Educational Success in Portugal By Goulart, Pedro; Bedi, Arjun S.
  10. School tracking, social segregation and educational opportunity: evidence from Belgium By HINDRIKS, Jean; VERSCHELDE, Marijn; RAYP, Glenn; SCHOORS, Koen
  11. Productivity Spillovers from Foreign MNEs on Domestic Manufacturing Firms: Is Co-location Always a Plus? By Sergio Mariotti; Marco Mutinelli; Marcella Nicolini; Lucia Piscitello
  12. Relative Concerns of Rural-to-Urban Migrants in China By Alpaslan Akay; Olivier Bargain; Klaus F. Zimmermann
  13. Financial tools for the abatement of traffic congestion: a dynamical analysis By Angelo Antoci; Marcello Galeotti; Davide Radi
  14. Discounting in Mortgage Markets By Jason Allen; Robert Clark; Jean-François Houde
  15. Conceptualising rural-urban dynamics By Thomas, Alex M
  16. Family Firms and Regional Innovation Activity: Evidence from the German Mittelstand By Block, Joern; Spiegel, Frank
  17. On Regional Unemployment: An Empirical Examination of the Determinants of Geographical Differentials in the UK By Dimitris Korobilis; Michelle Gilmartin
  18. On regional unemployment: an empirical examination of the determinants of geographical differentials in the UK By Korobilis, Dimitris; Gilmartin, Michelle
  19. A distance function approach to school-leavers’ efficiency in the school-to-work transition By B. DEFLOOR; L. VAN OOTEGEM; E. VERHOFSTADT
  20. Social Bonding, Early School Leaving, and Delinquency By Traag Tanja; Marie Olivier; Velden Rolf van der
  21. Road Pricing with Optimal Mass Transit By Marvin Kraus
  22. The Effect of Tracking Students by Ability into Different Schools: A Natural Experiment By Nina Guyon; Eric Maurin; Sandra McNally
  23. The economics of airport noise: how to manage markets for noise licenses By BRECHET, Thierry; PICARD, Pierre M.
  24. Local Governments Tax Autonomy, Lobbying, and Welfare By Sandro Brusco; Luca Colombo; Umberto Galmarini
  25. Local Development Benefits from Staging Global Events: Achieving the Local Development Legacy from 2012 - A Peer Review of the Olympic and Paralympic Legacy for East London By OECD
  26. Human Capital, Higher Education Institutions, and Quality of Life By Winters, John V

  1. By: HINDRIKS, Jean (Université catholique de Louvain, CORE & Department of Economics, B-1348 Louvain-la-Neuve, Belgium); VERSCHELDE, Marijn (SHERPPA, Department of General Economics, Ghent University, B-9000 Gent, Belgium); RAYP, Glenn (SHERPPA, Department of General Economics, Ghent University, B-9000 Gent, Belgium); SCHOORS, Koen (CERISE, Department of General Economics, Ghent University, B-9000 Gent, Belgium)
    Abstract: This paper shows the value of school autonomy for educational performance. To fully capture the informational advantage of local actors, we define school autonomy as the operational empowerment of the principals and teachers. The Flemish secondary school system in Belgium is analyzed as it is has a long history of educational school autonomy, but considerable variation between schools in school staff empowerment. Combining detailed school level and pupil level data from the PISA 2006 study with a semiparametric hierarchical model, we find strong indications that operational school autonomy is associated with high educational performance if appropriate accountability systems are active. Sensitivity tests show that both low and high-performers benefit from this kind of school autonomy.
    Keywords: educational performance, PISA, school autonomy, educational production function, semiparametric
    JEL: I28 H52
    Date: 2010–12–01
  2. By: Badi H. Baltagi (Center for Policy Research, Maxwell School, Syracuse University, Syracuse, NY 13244-1020); Uwe Blien and Katja Wolf (Institute for Employment Research (IAB), D-90327 Nuremberg, Germany-0049-911-1793035 and Otto-Friedrich-University of Bamberg (Blien))
    Abstract: A wave curve is a decreasing function of wages on the regional unemployment rate. Most empirical studies on the wave curve ignore possible spatial interaction effects between the regions which are the primary units of research. This paper reconsiders the western German wage curve with a special focus on the geography of labour markets. Spillovers between regions are taken into account. The paper tests whether the unemployment rate in the larger surrounding region also affects wages. In addition, agglomeration effects and effects of local monopsony are assessed. The main data base is a random sample of 974,179 employees observed over the period 1980-2004 and covering 326 NUTS3 units (districts). This rich data set is used to estimate a dynamic wage curve according to the two-step approach of Bell et al. (2002). In the first step one controls for individual heterogeneity and in the second step one allows for spatial effects of unemployment across regions on wages. We check the sensitivity of this wage elasticity to various spatial weight matrices as well as allowing for the endogeneity of unemployment. We also estimate the wage elasticity for various population groups.
    Keywords: Seemingly unrelated regressions, panel data, spatial dependence, heterogeneity, forecasting.
    JEL: J30 C23 R10
    Date: 2010–09
  3. By: Marco Capasso; Elena Cefis; Koen Frenken
    Abstract: We compare the industrial dynamics in the core, semi-periphery and periphery in The Netherlands in terms of firm entry-exit, size, growth and sectoral location patterns. The contribution of our work is to provide the first comprehensive study on spatial differentiation in industrial dynamics for all firm sizes and all sectors, including services. We find that at the aggregate level the spatial pattern of industrial dynamics is consistent with the spatial product lifecycle thesis: entry and exit rates are highest in the core and lowest in the periphery, while the share of persistently growing firms is higher in the periphery than in the core. Disaggregating the analysis to the sectoral level following the Pavitt-Miozzo-Soete taxonomy, findings are less robust. Finally, sectoral location patterns are largely consistent with the spatial product lifecycle model: Fordist sectors are over-represented in the periphery, while sectors associated with the ICT paradigm are over-represented in the core, with the notable exception of science-based manufacturing.
    Keywords: Entry, exit, spatial product lifecycle, Fordist paradigm, ICT paradigm
    JEL: L25 L26 L60 L80 O18 O33 R10
    Date: 2011–01
  4. By: Bernard Fortin; Myra Yazbeck
    Abstract: This paper aims at opening the black box of peer effects in adolescent weight gain. Using Add Health data on secondary schools in the U.S., we investigate whether these effects partly flow through the eating habits channel. Adolescents are assumed to interact through a friendship social network. We first propose a social interaction model of fast food consumption using a generalized spatial autoregressive approach. We exploit results by Bramoullé, Djebbari and Fortin (2009) which show that intransitive links within a network (i.e., a friend of one of my friends is not my friend) help identify peer effects. The model is estimated using maximum likelihood and generalized 2SLS strategies. We also estimate a panel dynamic weight gain production function relating an adolescent’s Body Mass Index (BMI) to his current fast food consumption and his lagged BMI level. Results show that there are positive significant peer effects in fast food consumption among adolescents belonging to a same friendship school network. The estimated social multiplier is 1.59. Our results also suggest that, at the network level, an extra day of weekly fast food restaurant visits increases BMI by 2.4%, when peer effects are taken into account.
    Keywords: Obesity, overweight, peer effects, social interactions, fast food, spatial models
    JEL: C31 I10 I12
    Date: 2011
  5. By: William Brock (University of Wisconsin and Beijer Fellow); Anastasios Xepapadeas (Athens University of Economics and Beijer Fellow)
    Abstract: This paper develops linear quadratic robust control theory for a class of spatially invariant distributed control systems that appear in areas of economics such as New Economic Geography, management of ecological systems, optimal harvesting of spatially mobile species, and the like. Since this class of problems has an infinite dimensional state and control space it would appear analytically intractable. We show that by Fourier transforming the problem, the solution decomposes into a countable number of finite state space robust control problems each of which can be solved by standard methods. We use this convenient property to characterize “hot spots” which are points in the transformed space that correspond to “breakdown” points in conventional finite dimensional robust control, or where instabilities appear or where the value function loses concavity. We apply our methods to a spatial extension of a well known optimal fishing model.
    Keywords: Distributed Parameter Systems, Robust Control, Spatial Invariance, Hot Spot, Agglomeration
    JEL: C61 C65 Q22
    Date: 2010–12
  6. By: Badi H. Baltagi (Center for Policy Research, Maxwell School, Syracuse University, Syracuse, NY 13244-1020); Alain Pirotte (ERMES (CNRS) and TEPP (CNRS), Université Panthéon-Assas Paris II, France INRETS-DEST, National Institute of Research on Transports and Safety, France)
    Abstract: This paper considers various estimators using panel data seemingly unrelated regressions (SUR) with spatial error correlation. The true data generating process is assumed to be SUR with spatial error of the autoregressive or moving average type. Moreover, the remainder term of the spatial process is assumed to follow an error component structure. Both maximum likelihood and generalized moments (GM) methods of estimation are used. Using Monte Carlo experiments, we check the performance of these estimators and their forecasts under misspecification of the spatial error process, various spatial weight matrices, and heterogeneous versus homogeneous panel data models.
    Keywords: Seemingly unrelated regressions, panel data, spatial dependence, heterogeneity, forecasting.
    JEL: C33
    Date: 2010–09
  7. By: MANZI, Jorge (Measurement Center MIDE UC, Pontificia Universidad Católica de Chile, Chile); SAN MARTIN, Ernesto (Measurement Center MIDE UC & Dep. Of Statistics, Pontificia Universidad Católica de Chile, Chile); VAN BELLEGEM, Sébastien (Toulouse School of Economics, France; Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium)
    Abstract: Value-added analysis is a common tool in analysing school performances. In this paper, we analyse the SIMCE panel data which provides individual scores of about 200,000 students in Chile, and whose aim is to rank schools according to their educational achievement. Based on the data collection procedure and on empirical evidences, we argue that the exogeneity of some covariates is questionable. This means that a nonvanishing correlation appears between the school-specific effect and some covariates. We show the impact of this phenomenon on the calculation of the value-added and on the ranking, and provide an estimation method that is based on instrumental variables in order to correct the bias of endogeneity. Revisiting the definition of the value-added, we propose a new calculation robust to endogeneity that we illustrate on the SIMCE data.
    Keywords: value-added, school effectiveness, multilevel model, endogeneity, instrumental variables
    JEL: C33 C51 I21
    Date: 2010–07–01
  8. By: Charles M. Tolbert; Troy C. Blanchard
    Abstract: We analyze the earnings determination process of more than 400,000 rural manufacturing workers in 12 selected U.S. states. Our theoretical motivation stems from an ongoing interest in the benefits of locally oriented business establishments. In this case, we distinguish manufacturing concerns that are single establishments in one rural place from branch plants that are part of larger multi-establishment enterprises. Our data permit us to introduce attributes of both workers and their employing firms into earnings determination models. For manufacturing workers in “micropolitan” rural counties, we find that working for a local (single) establishment has a positive impact on annual earnings. However, tenure with a firm returns more earnings for workers in non-local manufacturing facilities. Conversely, for manufacturing workers in “noncore” or rural areas without urban cores, we find that working for a local establishment has a negative effect on earnings. But, job tenure pays off more when working for a local establishment.
    Date: 2011–01
  9. By: Goulart, Pedro (ISS, Erasmus University Rotterdam); Bedi, Arjun S. (ISS, Erasmus University Rotterdam)
    Abstract: Notwithstanding increased educational expenditure, Portugal continues to record poor educational outcomes. Underlining the weak expenditure-educational success link, a large body of work in educational economics displays that there is a tenuous relationship between a range of school inputs and cognitive achievement. Among others, the inability to establish a clear link between inputs and success has been attributed to the difficulty of controlling for unobserved attributes such as ability, motivation and interest. Against this background, and inspired by a large body of work in educational psychology which explicitly measures constructs such as educational motivation and interest, this paper examines whether a child’s interest in school has any bearing on educational success after controlling for the kinds of variables typically used in educational economics analyses. We rely on two data sets collected in Portugal in 1998 and 2001 and examine the interest-educational success link using both cross-section and panel data. Our estimates suggest that after controlling for time-invariant unobservable traits and for the simultaneous determination of interest and achievement, there is little support for the idea that prior interest in school has a bearing on future educational success.
    Keywords: schooling, Portugal, educational outcomes, interest in school
    JEL: J24
    Date: 2011–01
  10. By: HINDRIKS, Jean (Université catholique de Louvain, CORE & Department of Economics, B-1348 Louvain-la-Neuve, Belgium); VERSCHELDE, Marijn (SHERPPA, Department of General Economics, Ghent University, B-9000 Gent, Belgium); RAYP, Glenn (SHERPPA, Department of General Economics, Ghent University, B-9000 Gent, Belgium); SCHOORS, Koen (CERISE, Department of General Economics, Ghent University, B-9000 Gent, Belgium)
    Abstract: Educational tracking is a very controversial issue in education. The tracking debate is about the virtues of uniformity and vertical differentiation in the curriculum and teaching. The pro-tracking group claims that curriculum and teaching better aimed at children's varied interest and skills will foster learning efficacy. The anti-tracking group claims that tracking systems are inefficient and unfair because they hinder learning and distribute learning inequitably. In this paper we provide a detailed within-country analysis of a specific educational system with a long history of early educational tracking between schools, namely the Flemish secondary school system in Belgium. This is interesting place to look because it provides a remarkable mix of excellence and inequality. Indeed the Flemish school system is repeatedly one of the best performer in the international harmonized PISA tests in math, science and reading; whereas it produces some of the most unequal distributions of learning between schools and students. Combining evidence from the PISA 2006 data set at the student and school level with recent statistical methods, we show first the dramatic impact of tracking on social segregation; and then, the impact of social segregation on equality of educational opportunity (adequately measured). It is shown that tracking, via social segregation, has a major effect on inequality of opportunity. Children of different economic classes will have different access to knowledge.
    Keywords: tracking, ability grouping, educational performance, social segregation, inequality, PISA
    JEL: I28 H52 D63
    Date: 2010–12–01
  11. By: Sergio Mariotti (DIG - Politecnico di Milano); Marco Mutinelli (University of Brescia); Marcella Nicolini (Fondazione Eni Enrico Mattei); Lucia Piscitello (DIG - Politecnico di Milano)
    Abstract: The paper analyses productivity spillovers from foreign MNEs on domestic manufacturing firms. Using a database on foreign MNEs in Italy, our results reveal that local firms do benefit from the presence of foreign MNEs, and the effect is higher when local and foreign firms in manufacturing sectors are co-located. However, spillovers benefiting domestic firms are likely to be less influenced by co-location when foreign MNEs are in services sectors as the latter are different from manufacturing industries under a number of aspects that overcome the effect of distance. Indeed, in these sectors, proximity and interaction are often obtained through professional mobility and temporary inter-organizational routines.
    Keywords: Multinational Firms, Co-Location, Proximity, Spillover Effects, Customer-Supplier Interaction, Vertical Linkages
    JEL: D24 F23 O19 R30
    Date: 2011–01
  12. By: Alpaslan Akay (IZA and Gothenburg University); Olivier Bargain (School of Economics and UCD Geary Institute, University College Dublin and IZA); Klaus F. Zimmermann (IZA, Bonn University and DIW Berlin)
    Abstract: How the income of "relevant others" affects well-being has received renewed interest in the recent literature using subjective data. Migrants constitutes a par- ticularly interesting group to study this question: as they changed environment, they are likely to be concerned by several potential reference groups including the people "left behind", other migrants and "natives". We focus here on the huge population of rural-to-urban migrants in China. We exploit a novel dataset that comprises samples of migrants and urban people living in the same cities, as well as rural households mostly surveyed in the provinces where migrants are coming from. After establishing these links, we fi…nd that the well-being of migrants is largely af- fected by relative concerns: results point to negative relative concerns toward other migrants and workers of home regions - this status effect is particularly strong for migrants who wish to settle permanently in cities. We fi…nd in contrast a positive relative income effect vis-à-vis the urban reference group, interpreted as a signal effect: larger urban incomes indicate higher income prospects for the migrants. A richer pattern is obtained when sorting migrants according to the duration of stay, expectations to return to home countries and characteristics related to family cir- cumstances, work conditions and community ties.
    Keywords: China, relative concerns, well-being.
    JEL: C90 D63
    Date: 2011–01–27
  13. By: Angelo Antoci (Universita' degli Studi di Sassari); Marcello Galeotti (Dipartimento di Matematica per le Decisioni, Universita' degli Studi di Firenze); Davide Radi (Universita' di Bergamo)
    Abstract: In this article we propose a simple mechanism aimed at implementing and supporting environmental protection policies in urban areas based on innovative financial instruments issued by a policy maker, which can be bought by two categories of involved agents, city users and agencies providing the city services. According to this mechanism, virtuous service providers choosing to offer high quality services can obtain cost abatement. City users, recip- rocally, have to pay for entering into the city, but can protect themselves against a city low quality of life by a self-insurance device. The interaction of these two categories of economic agents is modelled by a two-population evolutionary game, where the population of city users strategically interacts with that of service providers. From the analysis of the model it emerges that such a dynamics may lead to a welfare- improving attracting Nash equilibrium at which all city users choose to use environmental-friendly means of transportation and all service providers choose to offer high quality services. However, the basin of attraction of that equilibrium may have a rather complex morphology. In particular more attractors and/or limit cycles can be present. In such a context we indicate sufficient conditions making the virtuous equilibrium a global attractor for all trajectories starting at a mixed-strategy point.
    Keywords: Environment preserving policies, financial options, evolutionary dynamics.
    JEL: C73 H23 Q55
    Date: 2011–01
  14. By: Jason Allen; Robert Clark; Jean-François Houde
    Abstract: This paper studies discounting in mortgage markets. Using transaction-level data on Canadian mortgages, we document that over time there’s been an increase in the average discount, along with substantial dispersion. The standard explanation for dispersion in credit markets is that lenders engage in risk-based pricing. Our setting is unique since contracts are guaranteed by government-backed insurance, meaning risk cannot be the main driver of dispersion. We find that mortgage rates depend on individual, contractual, and shopping market characteristics. There is also an important amount of unobserved heterogeneity in rates, which could be attributed to search costs.
    Keywords: Financial institutions; Financial services
    JEL: D4 G21 L0
    Date: 2011
  15. By: Thomas, Alex M
    Abstract: This paper revisits the work of Richard Cantillon and Francois Quesnay in order to conceptualise the dynamics between rural and urban areas in an economy. Concepts of social surplus and economy as a circular flow are presented in order to highlight the interrelationship between the growth processes in the rural as well as urban areas. The paper concludes by pointing out the significance of the works of Cantillon and Quesnay.
    Keywords: Economic growth; Cantillon; Quesnay; Urban; Rural
    JEL: O11 B12 O18 R11
    Date: 2011–01
  16. By: Block, Joern; Spiegel, Frank
    Abstract: Family firms are important not only for a region but for the economy as a whole. In particular, the long-term orientation and the local embeddedness of family firms suggest a positive effect on regional innovation activity. Yet, despite the widely acknowledged importance of family firms for the economy, little research exists on this issue. This paper analyses the effect of family firms on regional innovation. Using a dataset of 326 German regions, our regressions show that regions with a higher share of family firms also show higher levels of innovation activity, as measured by the number of successful patent applications. The implications of these findings for policy and research are discussed.
    Keywords: innovation; family firms; geography; Mittelstand; patents
    JEL: L26 O3
    Date: 2011–02–04
  17. By: Dimitris Korobilis (Université Catholique de Louvain); Michelle Gilmartin (University of Strathclyde)
    Abstract: This paper considers the determinants of regional disparities in unemployment rates for the UK regions at NUTS-II level. We use a mixture panel data model to describe unemployment differentials between heterogeneous groups of regions. The results indicate the existence of two clusters of regions in the UK economy, characterised by high and low unemployment rates respectively. A major source of heterogeneity seems to be caused by the varying (between the two clusters) effect of the share of employment in the services sector, and we trace its origin to the fact that the “high unemployment” cluster is characterised by a higher degree of urbanization.
    Keywords: distribution dynamics, regional labour markets, unemployment differentials
    JEL: C23 J08 J64 R12 R23
    Date: 2011–02
  18. By: Korobilis, Dimitris; Gilmartin, Michelle
    Abstract: This paper considers the determinants of regional disparities in unemployment rates for the UK regions at NUTS-II level. We use a mixture panel data model to describe unemployment differentials between heterogeneous groups of regions. The results indicate the existence of two clusters of regions in the UK economy, characterised by high and low unemployment rates respectively. A major source of heterogeneity seems to be caused by the varying (between the two clusters) effect of the share of employment in the services sector, and we trace its origin to the fact that the "high unemployment" cluster is characterised by a higher degree of urbanization.
    Keywords: distribution dynamics; regional labour markets; unemployment differentials
    JEL: J08 C23 J64 R12 R23
    Date: 2010–12
    Abstract: Two conventional approaches to study the school-to-work transition are the duration period to the first job and the satisfaction in (or for some specific characteristics of) the first job. This paper compares these two approaches with an analysis of the efficiency of school-leavers‟ first job achievement. The transformation of resources, when leaving school, into achieved first job characteristics is analysed using a multi-input multi-output stochastic distance function approach. This allows to assess the efficiency of this conversion process. Inter-individual differences in transformation efficiency are important, especially when policy makers want to focus on reasons for resource-inefficiency that are beyond the control of the individual.<br> The empirical analysis is based on the 1978 birth cohort of the Flemish SONAR data. The variation in efficiency is explained in terms of individual-specific conversion factors that influence job efficiency: the social (family) background, the motivation to work, the number of search channels used and the sector of employment. The most important positive factor is education (a higher number of successful school years). The results are compared with the average duration to the first job and average job satisfaction. The efficiency analysis provides additional information. Most attention is attracted to the role of the social background, more specifically having a non-Belgian background, for the school-to-work transition.
    Date: 2010–10
  20. By: Traag Tanja; Marie Olivier; Velden Rolf van der (METEOR)
    Abstract: In this paper we investigate how successful social bonding theory is at predicting juvenile delinquency and school dropout behaviour. We adopt a simple dynamic approach which assumes that past involvement in risky behaviour reduces individual restraints for future participation in risky behaviour. We use a ten years education panel following Dutch adolescents who participated in a survey in their first year of high school in 1999. This information was matched to annual information on police arrests based on registry data. Our results show that school performance (as measured by test scores) is the key social bond element preventing young people from engaging in risk behaviour. We also find that involvement in past risky behaviour increases the likelihood of future missteps and that the protective influence of school performance is mitigated.
    Keywords: labour economics ;
    Date: 2011
  21. By: Marvin Kraus (Boston College)
    Abstract: This paper asks the question, "How should the level of mass transit service be adjusted when road pricing is introduced for a substitute auto mode?" The reference point for the introduction of road pricing is second-best optimization in transit. Because this involves below- marginal-cost pricing in transit, it is efficient for road pricing to be accompanied by an increase in the transit fare and a reduction in service. This runs counter to the usual view of using the toll revenue generated by road pricing to provide a higher level of transit service.
    Keywords: congestion pricing; road pricing
    JEL: R4
    Date: 2011–01–31
  22. By: Nina Guyon (Paris School of Economics (PSE)); Eric Maurin (Paris School of Economics (PSE)); Sandra McNally (Centre for Economic Performance, London School of Economics)
    Abstract: The tracking of pupils by ability into elite and non-elite schools represents a controversial policy in many countries. There is no consensus on how large the elite track should be and little agreement on the effects of any further increase in its size. This paper presents a natural experiment where the increase in the size of the elite track was followed by a significant improvement in average educational outcomes. This experiment provides a rare opportunity to isolate the overall effect of allowing entry to the elite track for a group that was previously only at the margin of being admitted.
    Keywords: Education, Tracking, Selection
    JEL: I2
    Date: 2010–12
  23. By: BRECHET, Thierry (Université catholique de Louvain, CORE & Louvain School of Management, Chair Lhoist Berghmans in Environmental Economics and Management, B-1348 Louvain-la-Neuve, Belgium.); PICARD, Pierre M. (University of Luxembourg, CREA, Luxembourg; Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium)
    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: 2010–12–01
  24. By: Sandro Brusco (Department of Economics, Stony Brook University); Luca Colombo (Università Cattolica, Milan, Italy); Umberto Galmarini (Università dell’Insubria, Como, Italy)
    Abstract: What degree of tax autonomy should be granted to a regional government on a local tax base? Although the regional policy maker aims at maximizing social welfare, her tax policy may be distorted by the lobbying activity of local taxpayers. In this political environment we characterize the conditions under which social welfare can be increased by restricting the set of tax instruments available to the local policy maker, i.e. the degree of local tax autonomy. We show that full tax autonomy is likely to be dominated by minimal tax autonomy when there are many groups of similar size, while the converse occurs when tax bases are asymmetrically distributed.
    Keywords: Tax autonomy, lobbying, local public good provision
    JEL: D70 H71 H77
    Date: 2010–07
  25. By: OECD
    Abstract: London 2012 is set to be one the most ambitious Olympic Games ever to have taken place. Already a successful global city London has set itself a unique challenge – not simply to deliver a successful Olympic Games but to regenerate its most socio-economically challenged area of the city. The boroughs which will host 2012 are amongst the most deprived areas in the United Kingdom. The aim from the preparation of the bid was to address this long term challenge. Everyone involved in the delivery of 2012 and the economic development of London is under no illusion that simply by hosting the Olympics a century of deprivation will be eradicated. But accelerating 30-50 years of regeneration and infrastructure investment can create new economic opportunity.
    Date: 2011–01
  26. By: Winters, John V
    Abstract: This paper considers the effects of the local human capital level and the presence of higher education institutions on the quality of life in U.S. metropolitan areas. The local human capital level is measured by the share of adults with a college degree, and the relative importance of higher education institutions is measured by the share of the population enrolled in college. This paper finds that quality of life is positively affected by both the local human capital level and the relative importance of higher education institutions. Furthermore, these effects persist when these two measures are considered simultaneously, even though the two are highly correlated. That is the human capital stock and higher education institutions have a shared effect and also separate effects on quality of life.
    Keywords: human capital; higher education; college towns; quality of life; amenities
    JEL: R13 J31 R23
    Date: 2011–01–28

This nep-ure issue is ©2011 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.