nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2011‒06‒18
38 papers chosen by
Steve Ross
University of Connecticut

  1. Patterns of population location in Auckland By Maré, David C.; Coleman, Andrew; Pinkerton, Ruth
  2. The quality of FHA lending in Pennsylvania, New Jersey, and Delaware By Community Development Studies; Education Department
  3. FHA lending activity in the past decade: a national overview By Community Development Studies; Education Department
  4. Economic Growth in Cities: Issues for Central Government By Henry G. Overman
  5. Big ideas: economic geography By Henry Overman
  6. Whose Children Gain from Starting School Later? Evidence from Hungary By Szilvia Hamori; Janos Kollo
  8. The Effect of Spillovers and Congestion on the Segregative Properties of Endogenous Jurisdiction Structure Formation By Rémy Oddou
  9. In brief: Location, location, location: why geography matters for R&D By John Van Reenen
  10. The Optimal Size of German Cities An Efficiency Analysis Perspective By Hitzschke, Stephan
  11. Decoupling urban transport from GHG emissions in Indian cities--A critical review and perspectives By Jun Li
  12. Productivity and Local Workforce Composition By Maré, David. C; Fabling, Richard
  13. Geographic Concentration of Business Services Firms: A Poisson Sorting Model By Hans Koster; Jos N. van Ommeren; Piet Rietveld
  14. Schools choices of foreign youth in Italian territorial areas By Paola Bertolini; Valentina Toscano; Linda Tosarelli
  15. The effects of educational systems, school-composition, track-level, parental background and immigrants’ origins on the achievement of 15-years old native and immigrant students. A reanalysis of PISA 2006 By Dronkers Jaap; Velden Rolf van der; Dunne Allison
  16. The Determinants of Non-Cognitive and Cognitive Schooling Outcomes. Report to the Department of Children, Schools and Families By Elena Meschi; Anna Vignoles
  18. High-School Exit Examinations and the Schooling Decisions of Teenagers: A Multi-Dimensional Regression-Discontinuity Analysis By John P. Papay; John B. Willett; Richard J. Murnane
  19. Test score disclosure and school performance By Camargos, Braz Ministério de; Firpo, Sergio Pinheiro; Ponczek, Vladimir Pinheiro
  20. A spatial approach to measure productivity spillovers of foreign affiliated firms in Turkish manufacturing industries By Karaçuka, Mehmet; Catik, A. Nazif
  21. First-Year Maternal School Attendance and Children’s Cognitive Abilities at Age 5 By Joanne W. Golann
  22. Initiation into crime: An analysis of Norwegian register data on five birth cohorts By Taryn Ann Galloway and Stephen Pudney
  23. Labor Market Effects of Immigration – Evidence from Neighborhood Data By Thomas K. Bauer; Regina Flake; Mathias G. Sinning
  24. Effects of a Mortgage Interest Rate Subsidy: Evidence from Colombia By Marc Hofstetter; Jorge Tovar; Miguel Urrutia
  25. Transboundary Pollution in China: A Study of the Location Choice of Polluting Firms in Hebei Province By Chloe DUVIVIER; Hang XIONG
  26. The Costs of Disposal and Recycling. An Application to Italian Municipal Solid Waste Services By Graziano Abrate; Fabrizio Erbetta; Giovanni Fraquelli; Davide Vannoni
  27. Impact assessment of interregional government transfers in Brazil: an input-output approach By Luque, Carlos A.; Haddad, Eduardo A.; Lima, Gilberto T.; Sakurai, Sergio N.; Costa, Silvio M.
  28. The School Readiness of the Children of Immigrants in the United States: The Role of Families, Childcare and Neighborhoods By Jessica Yiu
  29. Internal migration in the United States By Raven Molloy; Christopher L. Smith; Abigail Wozniak
  30. Back to the future: a simple solution to schelling segregation By Sylvain Barde
  31. Surfing Alone? The Internet and Social Capital: Evidence from an Unforeseeable Technological Mistake By Bauernschuster, Stefan; Falck, Oliver; Woessmann, Ludger
  32. Public Infrastructure Investment and Fiscal Sustainability in Latin America: Incompatible Goals? By Luis Carranza; Christian Daude; Ángel Melguizo
  33. Schooling and youth mortality : learning from a mass military exemption By Cipollone, Piero; Rosolia, Alfonso
  34. Do Geographical Variations in Climate Influence Life Satisfaction? By Thomas Murray; David Maddison; Katrin Rehdanz
  35. How did London get away with it? By Henry Overman
  36. Smart Meter Devices and The Effect of Feedback on Residential Electricity Consumption: Evidence from a Natural Experiment in Northern Ireland By Will Gans; Anna Alberini; Alberto Longo
  37. Who Borrows and Who May Not Repay? By Alena Bicakova; Zuzana Prelcova; Renata Pasalicova
  38. Tenure Insecurity, Adverse Selection, and Liquidity in Rural Land Markets By Derek Stacey

  1. By: Maré, David C. (Motu Economic and Public Policy Research); Coleman, Andrew (Motu Economic and Public Policy Research); Pinkerton, Ruth (Motu Economic and Public Policy Research)
    Abstract: This paper uses spatial statistical techniques to examine the economic determinants of residential location patterns in Auckland in 2006. The primary empirical focus of this paper is descriptive. We seek to establish the extent to which there are identifiable population subgroups that cluster together within the Auckland Urban Area, and further, to ascertain where these groups mainly live. It confirms previous findings of strong ethnic clustering and identifies clustering by qualification, income, and country of birth. It examines the interaction between incomes, land prices, and population density, and the relationship of land price with access to selected locational amenities.
    Keywords: Residential location choice; local amenities; residential sorting
    JEL: R12 R23 R31
    Date: 2011–05
  2. By: Community Development Studies; Education Department
    Abstract: The Federal Housing Administration (FHA), an agency within the Department of Housing and Urban Development (HUD), insures mortgage loans made by private lenders. All FHA-insured borrowers pay mortgage insurance as one of the terms of their mortgage loan, and this insurance protects the lender against losses if the borrower defaults. In addition to providing a mortgage guarantee, the FHA single-family loan program has features such as a low down payment and a low minimum credit score that benefit borrowers who may not be able to obtain financing in the conventional market. Because of the FHA’s guarantee, lenders are willing to extend credit to borrowers who might otherwise be excluded from the mortgage market. In recent decades, the FHA single-family home loan program has disproportionately served first-time homebuyers as well as low- and moderate-income (LMI) and minority households.
    Keywords: Mortgage loans ; Housing policy
    Date: 2011
  3. By: Community Development Studies; Education Department
    Abstract: The Federal Housing Administration (FHA), which provides insurance for residential mortgage loans, was established by the National Housing Act of 1934 to stimulate housing demand and, in turn, demand for those who build housing. In the housing boom after World War II, FHA loans helped make mortgage credit more widely available to returning veterans. In recent decades, the FHA, which is now part of the Department of Housing and Urban Development (HUD), has disproportionately served first-time homebuyers as well as low- and moderate-income (LMI) and minority households. The FHA allows low down payments and a low minimum credit score and requires that lenders who make FHA-insured loans carry out extensive loss mitigation efforts on seriously delinquent loans to reduce the incidence of foreclosure.
    Keywords: Mortgage loans ; Global financial crisis
    Date: 2011
  4. By: Henry G. Overman
    Abstract: This note is concerned with the role of cities and urban policy in growth. Decentralisation from central to local government may help city leaders raise economic performance. It also generates new policy choices for central government - especially in policy areas where local leaders are unwilling or unable to take actions that benefit growth. Policy decisions in this area will also impact on geographical concentrations of firms that are located outside cities.
    Date: 2011–06
  5. By: Henry Overman
    Abstract: Henry Overman sketches the evolution of CEP research on why prosperity is so unevenly distributed across cities, regions and nations
    Date: 2011–03
  6. By: Szilvia Hamori (Institute of Economics of the Hungarian Academy of Sciences); Janos Kollo (Institute of Economics Hungarian Academy of Sciences)
    Abstract: We look at the effect of school starting age on standardized test scores using data covering all grade four and grade eight students in Hungary. Instrumental variables estimates of the local average treatment effect suggest that children generally gain from starting school one year later and the effects are much stronger in the case of students coming from low-educated families. We test the robustness of the results by allowing for heterogeneity in the age effect, distinguishing between fields of testing, using discontinuity samples and relying on alternative data. The hypothesis that delayed entry has a stronger impact on low-status children is supported by the robustness checks. The observed patterns are most probably explained by the better performance of kindergartens, as opposed to schools, in developing the skills of low-status children.
    Keywords: education, student test scores, enrolment age, identification
    JEL: I21 I28 J24
    Date: 2011–04
  7. By: Ceren Ozgen (Department of Spatial Economics, VU University Amsterdam); Peter Nijkamp (Department of Spatial Economics, VU University Amsterdam); Jacques Poot (National Institute of Demographic and Economic Analysis (NIDEA), University of Waikato)
    Abstract: The concentration of people with diverse socio-cultural backgrounds in particular geographic areas may boost the creation of new ideas, knowledge spillovers, entrepreneurship, and economic growth. In this paper we measure the impact of the size, skills, and diversity of immigration on the innovativeness of host regions. For this purpose we construct a panel of data on 170 regions in Europe (NUTS 2 level) for the periods 1991-1995 and 2001-2005. Innovation outcomes are measured by means of the number of patent applications per million inhabitants. Given the geographical concentration and subsequent diffusion of innovation activity, and the spatial selectivity of immigrants’ location choices, we take account of spatial dependence and of the endogeneity of immigrant settlement in our econometric modelling. We use the location of McDonald’s restaurants as a novel instrument for immigration. The results confirm that innovation is clearly a function of regional accessibility, industrial structure, human capital, and GDP growth. In addition, patent applications are positively affected by the diversity of the immigrant community beyond a critical minimum level. An increase in the fractionalization index by 0.1 from the regional mean of 0.5 increases patent applications per million inhabitants by about 0.2 percent. Moreover, the average skill level of immigrants (proxied by global regions of origin) also affects patent applications. In contrast, an increasing share of foreigners in the population does not conclusively impact on patent applications. Therefore, a distinct composition of immigrants from different backgrounds is a more important driving force for innovation than the sheer size of the immigrant population in a certain locality.
    Keywords: immigration, cultural diversity, economic growth, innovation, spatial autocorrelation
    JEL: J61 O31 R23
    Date: 2011–06
  8. By: Rémy Oddou (Aix-Marseille University and IDEP-GREQAM)
    Abstract: This paper analyzes the effect of spillovers and congestion of local public goods on the segregative properties of endogenous formation of jurisdiction. Households living in the same place form a jurisdiction and produce a local public good, that creates positive spillovers in other jurisdictions and suffers from congestion. In every jurisdiction, the production of the local public good is financed through a local tax on household's wealth. Local wealth tax rates are democratically determined in all jurisdictions. Households also consume housing in their jurisdiction. Any household is free to leave its jurisdiction for another one that would increase its utility. A necessary and sufficient condition to have every stable jurisdiction structure segregated by wealth, for a large class of congestion measure and any spillovers coefficient structure, is identified: the public good must be a gross substitute or a gross complement to the private good and the housing.
    Keywords: Jurisdictions, Segregation, Spillovers, Congestion
    JEL: C78 D02 H73 R13
    Date: 2011–06
  9. By: John Van Reenen
    Abstract: John Van Reenen and colleagues assess the impact on growth of 'knowledge spillovers' between corporate research labs located close to each other
    Date: 2011–03
  10. By: Hitzschke, Stephan
    Abstract: This work investigates the interrelation between production efficiency and population size of German cities. The productive efficiency in this context is the scale efficiency, which is a result of positive and negative agglomeration externalities. The investigation is performed in a two-stage process. First, the efficiency in terms of scale efficiency is measured using nonparametric methods. The second stage investigates the relation of scale efficiency and populations size. It turns out that the optimal city size in Germany is about 220,000 inhabitants, which is almost the mean size of all German cities involved. Although there are regional differences, optimal city size remains stable as the mean size.
    Keywords: Efficiency analysis, optimal city size, population size, German cities
    Date: 2011–06
  11. By: Jun Li (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - AgroParisTech)
    Abstract: How to sustain rapid economic and urban growth with minimised detriment to environment is a key challenge for sustainable development and climate change mitigation in developing countries, which face constraints of technical and financial resources scarcity as well as dearth of infrastructure governance capacity. This paper attempts to address this question by investigating the driving forces of transport demand and relevant policy measures that facilitate mitigating GHG emissions in the urban transport sector in Indian cities based on a critical review of the literature. Our overview of existing literature and international experiences suggests that it is critical to improve urban governance in transport infrastructure quality and develop efficient public transport, coupled with integrated land use/transport planning as well as economic instruments. This will allow Indian cities to embark on a sustainable growth pathway by decoupling transport services demand of GHG emissions in the longer term. Appropriate policy instruments need to be selected to reconcile the imperatives of economic and urban growth, aspiration to higher quality of life, improvements in social welfare, urban transportrelated energy consumption and GHG emissions mitigation target in Indian cities.
    Keywords: India, Urban transport, GHG mitigation
    Date: 2011–04–22
  12. By: Maré, David. C (Motu Economic and Public Policy Research); Fabling, Richard (Reserve Bank of New Zealand)
    Abstract: This chapter examines the link between firm productivity and the population composition of the areas in which firms operate. We combine annual firm-level microdata on production, covering a large proportion of the New Zealand economy, with area-level workforce characteristics obtained from population censuses. Overall, the results support the existence of agglomeration effects that operate through labour markets. We find evidence of productive spillovers from operating in areas with high-skilled workers, and with high population density. A high-skilled local workforce benefits firms in high-skilled and high-research and development industries, and small firms. The benefits of local population density are strongest for firms in dense areas, and for small and new firms. Firms providing local services are more productive in areas with high shares of migrants and new entrants, consistent with local demand factors.
    Keywords: productivity, agglomeration, workforce composition
    JEL: R1 R3 D24
    Date: 2011–05
  13. By: Hans Koster (VU University Amsterdam); Jos N. van Ommeren (VU University Amsterdam); Piet Rietveld (VU University Amsterdam)
    Abstract: This paper examines the effects of specialisation (within-sector clustering) and diversity (between-sector clustering) on business services profitability and location choice. We apply a semiparametric Poisson sorting model allowing for firm-specific effects. We find that for most firms, profitability of business services firms is substantially higher close to specialised clusters of business services firms. A standard deviation increase in business services specialisation leads to on average a 40 percent increase in the probability that a business services firm locates there, supporting theories of Marshall, Arrow and Romer. It is also profitable for most business services firms to locate near a group of firms that belong to the same sector, not necessarily business services firms, so diversity is negatively related to location decisions. Almost all firms either benefit from within-sector clustering or between-sector clustering. Within-sector clusters are particularly profitable for large mature firms, whereas between-sector clusters are relatively more profitable for smaller innovative firms.
    Keywords: Sorting; Agglomeration Economies; Specialisation; Diversity; Heterogeneity; Semiparametric Estimation
    JEL: R12 R14 R39
    Date: 2011–06–06
  14. By: Paola Bertolini; Valentina Toscano; Linda Tosarelli
    Abstract: Given the deep economic and social differences of the Italian territories, the aim of the paper is to examine if there is a relationship between the territorial features of the Italian provinces and the school participation of young immigrants. The analysis focuses on the education experiences of young immigrants, especially on school participation in different levels, noting also the experiences of failure and higher education choices. The descriptive analysis of school participation and the economic-social characteristics has as objective to verify if there is a relationship between the latter and school participation. The analysis shows that the presence of foreign children in kindergarten is high and, in some regions, it is even higher than Italian children ones. Regarding the presence of immigrants in mandatory school, the turnout is above 90% in all regions. The participation rate of students in high school is commonly very low and compared with immigrants peers, the Italian school participation is widely higher. The presence of immigrant students has been analyzed considering the participation in different types of high school. In general, they prefer the vocational school. Moreover, the geographical distribution of participation in vocational schools is higher in northern region, where there is a significant industrial development and high employment rate. A statistical analysis of the determinants influencing the migrants’ choices has been made using some socio-economic indicators able to describe the economy of the different areas, especially in terms of sector-based specialization, presence of industrial districts, dynamics of labour market and households’ income. The results underline that the economic context is able to influence the individual choices; in particular the presence of manufacturing, the wealth of agriculture and the presence of schools exercise a positive influence. At the opposite, GDP per capita and agricultural orientation of the economy play a negative influence of immigrants school attendance.
    Keywords: immigrant students, education, territorial pattern, schooling determinants
    JEL: I21 J24
    Date: 2010–12
  15. By: Dronkers Jaap; Velden Rolf van der; Dunne Allison (ROA rm)
    Abstract: The effects of educational systems, school-composition, track-level, parentalbackground and immigrants’ origins on the achievement of 15-years old native andimmigrant students. A reanalysis of PISA 2006.The main research question of this paper is the combined estimation of the effectsof educational systems, school-composition and track-level on the educationalachievement of 15-years-old students. We specifically focus on the effects of socioeconomicand ethnic background on achievement scores and to what extent theseeffects are affected by characteristics of the school, track or educational system thesestudents are in. In doing so, we examine the ‘sorting’ mechanisms of schools and tracksin highly stratified, moderately stratified and comprehensive education systems. Weuse data from the 2006 PISA (Programme for International Student Assessment) wave.Compared to previous research in this area the main contribution of this paper is thatwe explicitly include track-level and school-level as separate units of analyses, whichleads to less biased results of the effects of characteristics of the educational system.The results highlight the importance of including track-level and school-level factorsin the debate of educational inequality of opportunity for students in differenteducation contexts. The findings clearly indicate that the effects of educationalsystem characteristics are flawed if the analysis uses only a country and a studentlevel and ignores the track- and school-level characteristics. Moreover the inclusionof the track-level is necessary to avoid overestimation of the school-compositioneffect, especially in stratified educational systems. From a policy perspective, the mostimportant finding is that educational system are not uniformly ‘good’ or ‘bad’, butthey have different consequences for different groups. Some groups are better offin comprehensive systems, while other groups are better off in moderately or highlystratified systems.
    Keywords: labour market entry and occupational careers;
    Date: 2011
  16. By: Elena Meschi; Anna Vignoles
    Abstract: The Centre for the Economics of Education was asked to investigate the factors that influence a range of children's academic and non-academic outcomes, including their enjoyment of school, whether they take unauthorised absence from school and whether they feel they are bullied. The study also investigated whether schools can influence these non-academic outcomes. The study makes use of the Longitudinal Study of Young People in England, which is a survey of young people in secondary school that collects information on bullying, truancy and many other factors in each child's life. The data is linked to information on each child's academic achievement, enabling this study to investigate the inter-relationship between a pupil's academic performance and non academic outcomes. Pupils who enjoy school more at age 14 have, perhaps unsurprisingly, higher academic achievement by age 16. Equally, children who have higher achievement at age 11 go on to enjoy school more at age 16 though this is a not a strong relationship. In other words enjoyment of school and academic achievement are clearly linked. Pupils who were bullied or who took unauthorised absence at age 14 had significantly lower educational achievement at GCSE. Pupils who experienced bullying at age 14 were also much more likely to experience bullying at age 16. Therefore early negative outcomes, such as being bullied, suggest the child is at risk of having later negative experiences at age 16. Conversely, pupils who participate in positive extra-curricular activities, such as clubs, were also found to have better academic achievement later in their schooling. High achievers at school, i.e. pupils who do well academically at age 14, were also no more likely to be bullied at age 16 than other children. The report also investigated the impact of schools on some of these non-academic outcomes between 14-16 and found little evidence that schools currently have different impacts on pupil's enjoyment of school, nor whether they take unauthorised absence, nor their likelihood of being bullied. In other words, which school a pupil attends is likely to have small or no effect on their wider well-being. This does not mean that schools do not have the potential to impact on these factors but rather that currently there are not large differences across schools in these outcomes once socio-economic factors have been taken into account. The report concludes that non-academic factors, such as a pupil's enjoyment of school, are inextricably linked to pupils' academic achievement. We need to be aware of these relationships when considering policies to improve pupil achievement. The report also provides some useful risk indicators of future low pupil academic achievement. For example, some factors, such as being bullied or taking unauthorised absence, predict low future academic achievement. Again this can be used by schools and policy-makers to identify pupils at risk of low attainment. This research report was written before the new UK Government took office on 11 May 2010. As a result the content may not reflect current Government policy. This research will be of use to officials and ministers in helping to shape the future direction of policy and Departmental strategy.
    Keywords: education, bullying
    Date: 2010–08
  17. By: Hoang Van Long; Mitsuyasu Yabe (Department of Agriculture and Resource Economics, Faculty of Agriculture, Kyushu University, Japan)
    Abstract: In Vietnam, the poor have long been assumed to be the ethnic minorities mostly living in the highlands. After more than two decades of introducing Doi moi policy into the economy, along with having enjoyed various improvements in social and economic aspects, the disparities between the majority and ethnic majorities, the lowlands and the highlands, and between regions, still have been widened. This paper aims at examining income inequality, its affecting factors in rural areas, and exploring the current situation of regional economic disparities using both development policy review and econometrics approaches. Data from Vietnam Household Living Standard Survey (VHLSS) 2008 was used in the study. The expenditure per capita was employed as the dependent variable to regress with household characteristics and resources. In addition, the regional dummy variables were employed to show the different effects from different geographic locations. The results showed that the household characteristics and resources such as education level, perennial land area, water surface area, and the accessibility to infrastructure facilities such as road, electricity and local market had positive effect on expenditure. Furthermore, the North Central Coast region showed negative impact on household expenditure. Interestingly, this finding does not absolutely follow the hypothesis and indicates that the economic development strategy and polices should be adjusted to decrease the gap among regions based on their economic advantages for balancing the economic situation of the whole country in the future
    Keywords: Inequality, Disparity, Regional Development, Rural Development, Vietnam
    JEL: M0
    Date: 2011–03
  18. By: John P. Papay; John B. Willett; Richard J. Murnane
    Abstract: We ask whether failing one or more of the state-mandated high-school exit examinations affects whether students graduate from high school. Using a new multi-dimensional regression-discontinuity approach, we examine simultaneously scores on mathematics and English language arts tests. Barely passing both examinations, as opposed to failing them, increases the probability that students graduate by 7.6 percentage points. The effects are greater for students scoring near each cutoff than for students further away from them. We explain how the multi-dimensional regression-discontinuity approach provides insights over conventional methods for making causal inferences when multiple variables assign individuals to a range of treatments.
    JEL: C10 C14 I20 I21 I28 J24
    Date: 2011–06
  19. By: Camargos, Braz Ministério de; Firpo, Sergio Pinheiro; Ponczek, Vladimir Pinheiro
    Abstract: In this paper we test whether the disclosure of test scores has direct impacts on studentperformance, school composition and school inputs. We take advantage of the discontinuityon the disclosure rules of The National Secondary Education Examination (ENEM) run inBrazil by the Ministry of Education: In 2006 it was established that the 2005 mean scoreresults would be disclosed for schools with ten or more students who took the exam inthe previous year. We use a regression discontinuity design to estimate the e ects of testdisclosure. Our results indicate that private schools that had their average scores releasedin 2005 outperformed those that did not by 0.2-0.6 in 2007. We did not nd same resultsfor public schools. Moreover, we did not nd evidence that treated schools adjusted theirinputs or that there was major changes in the students composition of treated schools.These ndings allow us to interpret that the main mechanism driving the di erences inperformance was the increased levels of students', teachers' and principals' e ort exerted bythose in schools that had scores publicized.
    Date: 2011–06–02
  20. By: Karaçuka, Mehmet; Catik, A. Nazif
    Abstract: In this paper we aim to analyze the productivity spillovers of foreign affiliated and domestic firms in Turkish manufacturing industries. As a novelty inter-sectoral linkages are modeled through the use of spatial models. Our results indicate the existence of positive and significant productivity spillovers among the neighborhood firms. We also find that an increase in the share of foreign affiliated firms in a given industry has positive impact on the productivity level of vertically related industries. However, our results do not provide any clear evidence that domestic firms benefit from the foreign affiliated firms either operating in the same industry or in the neighborhood industries. The findings suggest that unlike the effects of foreign affiliated firms, research and development expenditures significantly contribute to the productivity levels of domestic firms. --
    Keywords: Productivity,foreign direct investment,research and development,spatial econometrics
    JEL: C31 J24 O14 O33
    Date: 2011
  21. By: Joanne W. Golann (Princeton University)
    Abstract: Although there has been extensive research on the effects of early maternal employment on children’s outcomes, there have been surprisingly few studies examining the relationship between early maternal school attendance and children’s well-being, despite the fact that a large percentage of mothers return to school following the birth of their children. Using data from the Fragile Families and Child Wellbeing Study (N = 2,133), this study finds that mothers who attend four-year colleges or graduate schools in their children’s first year confer a significant advantage to their children’s cognitive development by age 5. Working while attending school does not appear to have any adverse effects on children. Contrary to expectations, no mediation effects are found for parenting or child care. Results imply that encouraging mothers to continue their education soon after their children’s births may be an effective strategy to improve the outcomes of both mothers and children.
    Keywords: education, early childhood, intergenerational transfers, parenting, schools, Fragile Families and Child Wellbeing
    JEL: D19 D63 I21 I31 J15
    Date: 2011–06
  22. By: Taryn Ann Galloway and Stephen Pudney (Statistics Norway)
    Abstract: We construct linked register data on five Norwegian birth cohorts, covering: criminal charges after age 15; family characteristics and history up to age 15; and (for males) IQ test scores. A longitudinal analysis of the risk of initiation into crime in early adulthood suggests an increased risk for the children of young and unmarried mothers and for those experiencing disruptive family events including divorce or maternal death during childhood. There is a relationship between continuity of parental employment and reduced risk, with no evidence of harm from mothers' employment. Cognitive ability remains strongly associated with reduced risk after allowing for family history and circumstances.
    Keywords: Norway; Crime; Family; Cognitive ability; Register data
    JEL: C33 I18 K42
    Date: 2011–05
  23. By: Thomas K. Bauer; Regina Flake; Mathias G. Sinning
    Abstract: This paper combines individual-level data from the German Socio-Economic Panel (SOEP) with economic and demographic postcode-level data from administrative records to analyze the effects of immigration on wages and unemployment probabilities of high- and low-skilled natives. Employing an instrumental variable strategy and utilizing the variation in the population share of foreigners across regions and time, we find no support for the hypothesis of adverse labor market effects of immigration.
    Keywords: International migration; effects of immigration
    JEL: F22 J31 J64 R23
    Date: 2011–04
  24. By: Marc Hofstetter; Jorge Tovar; Miguel Urrutia
    Abstract: Government intervention in the construction sector as a way to boost the economy has been a constant in Colombia for the past 90 years. This paper explicitly tests the impact of the most recent of such interventions: a subsidy to the mortgage interest rate. Our results show that the subsidy boosted mortgage loans by around 38 percent. However, we also find that real interest rates went up by 1.09 percent, i.e., there has been an incomplete pass through of the subsidy to the consumer. We estimate the pass-through of such intervention to be in the range of 65 percent to 74 percent.
    Date: 2011–05–09
  25. By: Chloe DUVIVIER; Hang XIONG
    Abstract: In this paper we study whether or not transboundary pollution problems exist in China. To do so, we estimate whether, within Hebei province, polluting firms are more likely to set up in border counties than in interior ones. For this purpose, we use the lists of polluting firms published annually by the Ministry of Environmental Protection of China and by the Environmental Protection Bureau of Hebei province. To ensure the robustness of our results, several measures of the variable of interest are constructed from GIS data. The estimations of a count-data model allow us to conclude that border counties are more attractive destinations for polluting firms than counties located within the province. Moreover, it appears that this effect has strengthened over time.
    Keywords: Transboundary pollution, firm location choice, environmental regulations, China
    JEL: Q56 Q01
    Date: 2011
  26. By: Graziano Abrate (University of Eastern Piedmont); Fabrizio Erbetta (University of Eastern Piedmont); Giovanni Fraquelli (University of Eastern Piedmont); Davide Vannoni (Department of Economics and Public Finance "G. Prato", University of Torino)
    Abstract: The paper investigates the costs of waste disposal and recycling services by using a well-behaved Composite cost function model. Our estimates on a unique sample of more than 500 Italian municipalities highlight that the refuse collection technology exhibits constant returns to scale as well as scope economies between disposal and recycling. As far as the size of the municipality increases, scope economies rise up to 14%, but they are accompanied with overall diseconomies of scale. Our findings suggest that, on the one hand, joint management of disposal and recycling should be encouraged, and, on the other hand, that strategies aimed at increasing the share of waste sent for recycling would not imply a considerable increase in total costs.
    Keywords: Solid waste, recycling, cost functions
    JEL: D24 H42 L33 L99
    Date: 2011–06
  27. By: Luque, Carlos A.; Haddad, Eduardo A.; Lima, Gilberto T.; Sakurai, Sergio N.; Costa, Silvio M.
    Abstract: Redistributive policies carried out by the central government through interregional government transfers is a relevant feature of the Brazilian federal fiscal system. Regional shares of the central government revenues in the poorer regions have been recurrently smaller than the shares of central government expenditures in those regions. Appeal to core-periphery outcomes could be made, as São Paulo, the wealthiest state in the country, concentrated, in 2005, over 40% of total Federal tax revenue, receiving less than 35% of Federal expenditures. These figures suggest a redistribution of public funds from the spatial economic core of the economy to the peripheral areas. This paper investigates the role interregional transfers play in the redistribution of activities in the country, using an interregional input-output approach. Counterfactual simulations allow us to estimate some costs and benefits, for the core and periphery respectively, from such fiscal mechanisms.
    Keywords: Interregional government transfers; input-output analysis; impact analysis; Brazilian economy
    JEL: H77 H5 R15
    Date: 2011–05
  28. By: Jessica Yiu (Princeton University)
    Abstract: At present, little is known about the welfare of very young immigrant children, since the emphasis thus far has been on the integration of school-aged children and youths into host societies (e.g. Leventhal et al. 2006; Portes and Hao 2004; Zhou and Bankston 1994). However invaluable these studies are in understanding how well the children of immigrants fare, particularly at school, and in predicting their socioeconomic mobility as adults, they cannot ascertain how early the onset of these nativity differences is. Researchers across the disciplines are thus increasingly turning their attention to the early childhood period to better understand how learning gaps between the children of immigrant versus native-born parentage – that is, second- and third-plus generations, respectively – are formed and persist prior to school entry (Fuller et al. 2009; Johnson de Feyter and Winsler 2009; Takanishi, 2004). The recent availability of longitudinal and large-scale birth cohort studies, such as the Fragile Families Study of Child Well-being, facilitates analyses which address early childhood research with a focus on nativity.
    Keywords: young immigrant children, integration, school-aged children and youths, host societies, Fragile Families Study of Child Well-being
    JEL: D19 D63 I21 I31 J15
    Date: 2011–05
  29. By: Raven Molloy; Christopher L. Smith; Abigail Wozniak
    Abstract: We review patterns in migration within the U.S. over the past thirty years. Internal migration has fallen noticeably since the 1980s, reversing increases from earlier in the century. The decline in migration has been widespread across demographic and socioeconomic groups, as well as for moves of all distances. Although a convincing explanation for the secular decline in migration remains elusive and requires further research, we find only limited roles for the housing market contraction and the economic recession in reducing migration recently. Despite its downward trend, migration within the U.S. remains higher than that within most other developed countries.
    Keywords: Migration, Internal ; Labor mobility
    Date: 2011
  30. By: Sylvain Barde (University of Kent)
    Date: 2011–03
  31. By: Bauernschuster, Stefan (Ifo Institute for Economic Research); Falck, Oliver (Ifo Institute for Economic Research); Woessmann, Ludger (Ifo Institute for Economic Research)
    Abstract: Does the Internet undermine social capital or facilitate inter-personal and civic engagement in the real world? Merging unique telecommunication data with geo-coded German individual-level data, we investigate how broadband Internet affects several dimensions of social capital. One identification strategy uses panel information to estimate value-added models. A second exploits a quasi-experiment in East Germany created by a mistaken technology choice of the state-owned telecommunication provider in the 1990s that still hinders broadband Internet access for many households. We find no evidence that the Internet reduces social capital. For some measures including children's social activities, we even find significant positive effects.
    Keywords: social capital, Internet
    JEL: Z13 J24
    Date: 2011–05
  32. By: Luis Carranza; Christian Daude; Ángel Melguizo
    Abstract: Latin American countries exhibit a significant gap in infrastructure stocks, due to low and in many cases inefficient public investment, which is furthermore not compensated by private sector projects. In this paper we analyse trends in public and total infrastructure investment in six large Latin American economies, in the light of fiscal developments since the early eighties. We argue that post-crisis fiscal frameworks, notably fiscal rules which are increasingly popular in the region, should not only consolidate the recent progress towards debt sustainability, but also create the fiscal space to close these infrastructure gaps. These points are illustrated in a detailed account of recent developments in the fiscal framework and public investment in the Peruvian case.<BR>Les pays d'Amérique latine présentent une lacune importante dans les stocks d'infrastructure, à cause des faibles et nombreux cas d'investissements publics inefficaces, ce qui n'est compensée par les projets du secteur privé. Dans ce document, nous analysons les tendances publiques et total d'investissement des infrastructures dans six grandes économies latino-américaines, à la lumière de l'évolution fiscal depuis les années quatre vingt. Nous soutenons que les cadres de post-crise fiscales, notamment les règles fiscales qui sont de plus en plus populaire dans la région, devrait non seulement consolider des progrès récemment accomplis vers la viabilité de la dette, mais aussi de créer l'espace budgétaire pour combler ces lacunes dans l'infrastructure. Ces points sont illustrés dans un compte détaillé de l'évolution récente dans le cadre fiscal et l'investissement public dans le cas du Pérou.
    Keywords: fiscal policy, fiscal rules, Latin America, infrastructure, politique budgétaire, Amérique latine, infrastructure
    JEL: E62 H54 O54
    Date: 2011–06–07
  33. By: Cipollone, Piero; Rosolia, Alfonso
    Abstract: This paper examines the relationship between education and mortality in a young population of Italian males. In 1981 several cohorts of young men from specific southern towns were unexpectedly exempted from compulsory military service after a major quake hit the region. Comparisons of exempt cohorts from the least damaged towns on the border of the quake region with similar ones from neighbouring non-exempt towns just outside the region show that, by 1991, the cohorts exempted while still in high school display significantly higher graduation rates. The probability of dying over the decade 1991-2001 was also significantly lower. Several robustness checks confirm that the findings do not reflect omitted quake-related confounding factors, such as the ensuing compensatory interventions. Moreover, cohorts exempted soon after high school age do not display higher schooling or lower mortality rates, thus excluding that the main findings reflect direct effects of military service on subsequent mortality rather than a causal effect of schooling. The authors conclude that increasing the proportion of high school graduates by 1 percentage point leads to 0.1-0.2 percentage points lower mortality rates between the ages of 25 and 35.
    Keywords: Population Policies,Health Monitoring&Evaluation,Labor Policies,Demographics,Education For All
    Date: 2011–06–01
  34. By: Thomas Murray; David Maddison; Katrin Rehdanz
    Abstract: Accounting for socioeconomic and demographic variables as well as country specific effects, households’ willingness to pay for changes in climate is revealed using European data on reported life satisfaction. Individuals located in areas with lower average levels of sunshine and higher average levels of relative humidity are less satisfied as are individuals in locations subject to significant seasonal variation in monthly mean temperatures and rain days. Ranking regions according to the preferred climates households appear strongly to favour the Mediterranean climate over the climate of Northern Europe
    Keywords: Life Satisfaction, Europe, Willingness to Pay, Climate, Climate Change
    JEL: C21 I31 Q51 Q54
    Date: 2011–04
  35. By: Henry Overman
    Abstract: Despite dire predictions, the UK capital has experienced a relatively mild recession, at least so far - Henry Overman asks what went right
    Date: 2011–03
  36. By: Will Gans (AREC, University of Maryland); Anna Alberini (AREC, University of Maryland and Fondazione Eni Enrico Mattei); Alberto Longo (Gibson Institute for Land Food and Environment, UKCRC Centre of Excellence for Public Health (NI), School of Biological Sciences, Queen‘s University)
    Abstract: Using a unique set of data and exploiting a large-scale natural experiment, we estimate the effect of real-time usage information on residential electricity consumption in Northern Ireland. Starting in April 2002, the utility replaced prepayment meters with “smart” meters that allow the consumer to track usage in real-time. We rely on this event, account for the endogeneity of price and plan with consumption through a plan selection correction term, and find that the provision of information is associated with a decline in electricity consumption of up to 20%. We find that the reduction is robust to different specifications, selection-bias correction methods and subsamples of the original data. At £15-17 per tonne of CO2e (2009£), the smart meter program delivers cost-effective reductions in carbon dioxide emissions.
    Keywords: Residential Energy, Electricity Demand, Feedback, Smart Meter, Information
    JEL: Q40 Q41 D8
    Date: 2011–05
  37. By: Alena Bicakova; Zuzana Prelcova; Renata Pasalicova
    Abstract: In this paper we use Household Budget Survey data to analyze the evolution of the household credit market in the Czech Republic over the period 2000–2008. While the share of households that borrow remained stable and below 40%, the amount of debt outstanding increased. We estimate a series of models of the determinants of borrowing. We next merge our data with the Statistics on Income and Living Conditions in 2005–2008, which contain direct information on repayment behavior, in order to test the validity of the standard debt burden measure as a predictor of default. We propose an alternative indicator – the adjusted debt burden (ADB), defined as the ratio of loan repayments to discretionary income, constructed as net income minus the living minimum (the minimum cost of living for a given household composition as set by the Czech Statistical Office), which turns out to be a superior predictor of default risk. Limited by the data, we use a fairly broad concept of default, namely, the inability to make loan repayments on time. Based on the distribution of default risk across the levels of the adjusted debt burden, we suggest that a 30% ADB threshold should be used as the definition of overindebtedness, with an average default risk of 17%. Finally, we show that overindebtedness and local economic shocks are closely related, suggesting that default risk should be always considered in the context of regional economic conditions.
    Keywords: Debt burden, household credit, regional default risk, repayment.
    JEL: D12 D14 G21 R29
    Date: 2010–12
  38. By: Derek Stacey (Queen's University)
    Abstract: A theory of land market activity is developed for settings where there is uncertainty and private information about the security of land tenure. Land sellers match with buyers in a competitive search environment, and an illiquid land market emerges as a screening mechanism. As a consequence, adverse selection and an insecure system of property rights stifle land market transactions. The implications of the theory are tested using household level data from Indonesia. As predicted, formally titled land is more liquid than untitled land in the sense that ownership rights are more readily transferable. Additional implications of the theory are verified empirically by constructing a proxy variable for land tenure security and studying the differences between markets for unregistered land across Indonesian provinces. Regional land market activity is appropriately linked to the distribution of the proxy variable.
    Keywords: Competitive Search, Land Markets, Tenure Security, Liquidity
    JEL: D83 Q15 D23 R23
    Date: 2011–04

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