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on Urban and Real Estate Economics |
| By: | John V. Duca; John Muellbauer; Anthony Murphy |
| Abstract: | Most US house price models break down in the mid-2000's, due to the omission of exogenous changes in mortgage credit supply (associated with the sub-prime mortgage boom) from house price-to-rent ratio and inverted housing demand models. Previous models lack data on credit constraints facing first-time home-buyers. Incorporating a measure of credit conditions - the cyclically adjusted loan-to-value ratio for first time buyers - into house price to rent ratio models yields stable long-run relationships, more precisely estimated effects, reasonable speeds of adjustment and improved model fits. |
| Keywords: | house prices, credit standards, subprime mortgages |
| JEL: | R31 G21 E51 C51 C52 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0077&r=ure |
| By: | Liu, Xiaodong; Patacchini, Eleonora; Zenou, Yves |
| Abstract: | We develop two different social network models with different economic foundations. In the local-aggregate model, it is the sum of friends' efforts in some activity that affects the utility of each individual while, in the local-average model, it is costly to deviate from the average effort of friends. Even though the two models are fundamentally different in terms of behavioral foundation, their implications in terms of Nash equilibrium are relatively close since only the adjacency (social interaction) matrix differs in equilibrium, one being the row-normalized version of the other. We test these alternative mechanisms of social interactions to study peer effects in education, sport and screen activities for adolescents in the United States using the AddHealth data. We extend Kelejian's (2008) J test for spatial econometric models helping differentiate between these two behavioral models. We find that peer effects are not significant for screen activities (like e.g. video games). On the contrary, for sport activities, we find that students are mostly influenced by the aggregate activity of their friends (local-aggregate model) while, for education, we show that both the aggregate performance at school of friends and conformism matter, even though the magnitude of the effect is higher for the latter. |
| Keywords: | conformism; econometrics of networks; peer effects; Social networks |
| JEL: | A14 D85 Z13 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8477&r=ure |
| By: | Hélia Silva (European University Institute); Linda Gonçalves Veiga (Universidade do Minho - NIPE); Miguel Portela (Universidade do Minho - NIPE, Tinbergen Institute and IZA Bonn) |
| Abstract: | This paper aims at testing the degree of interaction between Portuguese municipalities’ expenditure levels by estimating a dynamic panel model, based on jurisdictional reaction functions. The analysis is performed for all 278 Portuguese mainland municipalities from 1986 to 2006, using alternative ways to measure neighbourhood. Results indicate that local governments’ spending decisions are significantly influenced by the actions of neighbouring municipalities. For total expenditures, there is evidence that a 10% increase in nearby municipalities’ expenditures boosts expenditures in a given municipality by around 3.8%. |
| Keywords: | spending interactions, local government, spatial econometrics, dynamic panel data |
| JEL: | C23 H7 R1 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:nip:nipewp:23/2011&r=ure |
| By: | Michael Artis; Declan Curran; Marianne Sensier |
| Abstract: | This paper investigates agglomeration economies in an annual panel of NUTS 2 and NUTS 3 city regions across France, Germany, Ireland, Italy, Spain and the UK over 1980-2006 and comparing three sub-samples to see if the effects have changed over time. We uncover evidence of long run agglomeration effects of around 6% for NUTS 2 and NUTS 3 city regions for the full sample. The underlying pattern that this data reflects is changing sectoral composition in which manufacturing was declining, to be largely replaced by services; then more recently a period of city-based economic growth with the financial and business services-led boom at its heart. |
| Keywords: | agglomeration, system dynamic panel data estimations |
| JEL: | C22 E32 E37 E40 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0078&r=ure |
| By: | Martinho, Vítor João Pereira Domingues |
| Abstract: | With this work we try to analyse the agglomeration process in the Portuguese regions, using the New Economic Geography models. In these models the base idea is that where has increasing returns to scale in the manufactured industry and low transport costs, there is agglomeration. Of referring, as summary conclusion, that with this work the existence of increasing returns to scale and low transport cost, in the Portuguese regions, was proven and as such the existence of agglomeration in Portugal. |
| Keywords: | new economic geography; non linear models; Portuguese regions. |
| JEL: | O18 C23 R12 R41 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32204&r=ure |
| By: | Martinho, Vítor João Pereira Domingues |
| Abstract: | The aim of this paper is to analyze the relationship between inter-industry, intra-industry and inter-regional clustering and demand for labor by companies in Portugal. Is expected at the outset that there is more demand for work where the agglomeration is greater. It should be noted, as a summary conclusion, the results are consistent with the theoretical developments of the New Economic Geography, namely the demand for labor is greater where firms are better able to cluster that is where transport costs are lower and where there is a strong links "backward and forward" and strong economies of agglomeration. |
| Keywords: | agglomeration; Portuguese regions; labor; interregional mobility. |
| JEL: | R30 O18 R40 C23 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32203&r=ure |
| By: | Martinho, Vítor João Pereira Domingues |
| Abstract: | The consideration of spatial effects at a regional level is becoming increasingly frequent and the work of Anselin (1988), among others, has contributed to this. This study analyses, through cross-section estimation methods, the influence of spatial effects in productivity (product per worker) in the NUTs III economic sectors of mainland Portugal from 1995 to 1999 and from 2000 to 2005 (taking in count the availability of data), considering the Verdoorn relationship. To analyse the data, by using Moran I statistics, it is stated that productivity is subject to a positive spatial autocorrelation (productivity of each of the regions develops in a similar manner to each of the neighbouring regions), above all in services. The total of all sectors present, also, indicators of being subject to positive autocorrelation in productivity. Bearing in mind the results of estimations, it can been that the effects of spatial spillovers, spatial lags (measuring spatial autocorrelation through the spatially lagged dependent variable) and spatial error (measuring spatial autocorrelation through the spatially lagged error terms), influence the Verdoorn relationship when it is applied to the economic sectors of Portuguese regions. |
| Keywords: | Spatial Econometric; Verdoorn Law; Portuguese Regions. |
| JEL: | R58 O40 C21 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32183&r=ure |
| By: | Bernard Fingleton; Simonetta Longhi |
| Abstract: | This paper estimates individual wage equations in order to test two rival non-nested theories of economic agglomeration, namely New Economic Geography (NEG), as represented by the NEG wage equation and urban economic (UE) theory, in which wages relate to employment density. The paper makes an original contribution by evidently being the first empirical paper to examine the issue of agglomeration processes associated with contemporary theory working with micro-level data, highlighting the role of gender and other individual-level characteristics. For male respondents, there is no significant evidence that wage levels are an outcome of the mechanisms suggested by NEG or UE theory, but this is not the case for female respondents. We speculate on the reasons for the gender difference. |
| Keywords: | urban economics, new economic geography, household panel data |
| JEL: | C21 C31 C33 D1 O18 R20 R12 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0081&r=ure |
| By: | Matti Sarvimäki |
| Abstract: | i. This discussion paper is a completely revised version of SERCDP0047, published April 2010. This paper argues that agglomeration externalities are important even in the rural periphery. The analysis focuses on the forced relocation of more than a tenth of the Finnish population after World War II. Using the details of the resettlement policy to construct instrumental variables for wartime population growth rate, I find that an exogenous increase in municipality's population had a positive effect on later population growth, industrialization and real wages. These findings are consistent with the presence of agglomeration externalities and inconsistent with other popular explanations for the spatial distribution of economic activity. |
| Keywords: | Agglomeration externalities, natural advantages, migration |
| JEL: | R12 J61 N94 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0080&r=ure |
| By: | Gabriel M. Ahfeldt; Wolfgang Maennig |
| Abstract: | This study evaluates the cost of aircraft noise in Berlin, Germany, on the background of the home-voter hypothesis, which has received increasing attention in the literature. First, we use exogenous variation in airport noise provided by a series of effective and announced closures and extensions of airports to identify adjustments in the property market. Second, we integrate the results of the property market analysis into a spatial analysis of a direct referendum on an airport closure. Our results indicate that aircraft noise is costly. We observe significant positive market adjustments to reductions in aircraft noise. Consistently, voters supported the closure of a city airport where aircraft noise was present and positive price adjustments from a past announcement had occurred. Homeowners had significantly stronger preferences than renters, which is in line with the home-voter hypothesis. We conclude results from direct referenda on public initiatives should be interpreted with care when it comes to evaluating (expected) environmental effects. |
| Keywords: | noise, rents, referendum, real estate prices, airports, Berlin |
| JEL: | D61 D62 H41 H71 L83 I18 R41 R58 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0085&r=ure |
| By: | Martinho, Vítor João Pereira Domingues |
| Abstract: | This study analyses, through cross-section estimation methods, the influence of spatial effects in productivity (product per worker), at economic sectors level of the NUTs III of mainland Portugal, from 1995 to 1999 and from 2000 to 2005 (taking in count the data availability and the Portuguese and European context), considering the Verdoorn relationship. From the analyses of the data, by using Moran I statistics, it is stated that productivity is subject to a positive spatial autocorrelation (productivity of each of the regions develops in a similar manner to each of the neighbouring regions), above all in services. The total sectors of all regional economy present, also, indicators of being subject to positive autocorrelation in productivity. Bearing in mind the results of estimations, it can been that the effects of spatial spillovers, spatial lags (measuring spatial autocorrelation through the spatially lagged dependent variable) and spatial error (measuring spatial autocorrelation through the spatially lagged error terms), influence the Verdoorn relationship when it is applied to the economic sectors of Portuguese regions. The results obtained for the two periods are different, as expected, and are better in second period, because, essentially, the European and national public supports. |
| Keywords: | Spatial Econometrics; Economic Growth; Productivity Analysis; Regional Development. |
| JEL: | R58 O47 C21 O40 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32165&r=ure |
| By: | Teemu Lyytikäinen |
| Abstract: | This paper uses a Finnish policy intervention to study tax competition among local governments. Changes in the statutory lower limits to the property tax rates are used as a source of exogenous variation to estimate the responses of municipalities to tax rates in their neighbouring municipalities. I do not find evidence of interdependence in property tax rates among Finnish municipalities. The results are in contrast to the earlier empirical literature, using data from other countries, that has mainly found positive interdependence in tax rates. I compare the causal estimates based on the policy change to the commonly used Spatial Lag estimates and Spatial Instrumental Variables estimates, which are based on highly restrictive assumptions. The comparisons suggest that the standard spatial econometrics methods may have a tendency to overestimate the degree of interdependence in tax rates. |
| Keywords: | Property tax, tax competition, fiscal interaction, instrumental variables, spatialeconometrics |
| JEL: | H20 H71 H77 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0082&r=ure |
| By: | Mark J. Holmes (Department of Economics, Waikato University, New Zealand); Jesús Otero (Facultad de Economía, Universidad del Rosario, Colombia); Theodore Panagiotidis (Department of Economics, University of Macedonia, Greece) |
| Abstract: | In this paper we examine long-run house price convergence across US states using a novel econometric approach advocated by Pesaran (2007) and Pesaran et al. (2009). Our empirical modelling strategy employs a probabilistic test statistic for convergence based on the percentage of unit root rejections among all state house price differentials. Using a sieve bootstrap procedure, we construct confidence intervals and find evidence in favour of convergence. We also conclude that speed of adjustment towards long-run equilibrium is inversely related to distance. |
| Keywords: | Panel data, cross-section dependence, pair-wise approach, house prices, convergence |
| JEL: | C2 C3 R1 R2 R3 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:29_11&r=ure |
| By: | Gabriel M. Ahfeldt; Georgios Kavetsos |
| Abstract: | Prestigious sports facilities increasingly feature among the most expensive development projects worldwide. Considerable public funds are often committed based on expected neighbourhood effects. This paper focuses on the channels through which stadium externalities capitalize into property prices. We investigate two of the largest stadium investment projects of the recent decade - the New Wembley and the Emirates stadium in London, UK. Evidence suggests positive stadium externalities, which are large compared to construction costs. Notable anticipation effects are found immediately following the announcement of the final stadium plans. Our results suggest that stadium architecture may play an important role in promoting positive spillovers to the neighbourhood. |
| Keywords: | Property prices, stadium impact |
| JEL: | R53 R58 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0087&r=ure |
| By: | Hans R. A. Koster; Piet Rietveld; Jos N. van Ommerren |
| Abstract: | Modern central business districts are characterised by high-rise office buildings. Helsley and Strange (2008) argue that skyscrapers are caused by agglomeration economies and a prize for being the tallest, so a reputation effect. We aim to test the relevance of this model by investigating the impact of building height on commercial office rents. The results show that firms are willing to pay about 4 percent more for a building that is 10 meters taller, which we interpret as the sum of a within-building agglomeration effect and a reputation effect. Using semiparametric techniques, we disentangle reputation effects from agglomeration effects and demonstrate that the reputation effect is substantial for tall buildings. For example, it is at least 17.5 percent of the rent for a building that is 6 times the average height. |
| Keywords: | commercial buildings, building height, landmarks, reputation effect,semiparametric regression, agglomeration effect |
| JEL: | R30 R33 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0086&r=ure |
| By: | Marius Brülhart (HEC - LAUSANNE - École des HEC, Université de Lausanne Département d'économétrie et économie politique - Université de Lausanne); Céline Carrere (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Federico Trionfetti (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) |
| Abstract: | We study the responses of regional employment and nominal wages to trade liberalization, exploiting the natural experiment provided by the opening of Central and Eastern European markets after the fall of the Iron Curtain in 1990. Using data for Austrian municipalities, we examine differential pre- and post-1990 wage and employment growth rates between regions bordering the formerly communist economies and interior regions. If the 'border regions' are defined narrowly, within a band of less than 50 kilometers, we can identify statistically significant liberalization effects on both employment and wages. While wage responses preceded employment responses, the employment effect over the entire adjustment period is estimated to be around three times as large as the wage effect. The implied slope of the regional labor supply curve can be replicated in a new economic geography model that features obstacles to labor migration due to immobile housing and to heterogeneous locational preferences. |
| Keywords: | trade liberalization; spatial adjustment; regional labor supply; natural experiment |
| Date: | 2011–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00607748&r=ure |
| By: | Franz Fuerst (School of Real Estate & Planning, Henley Business School, University of Reading); Constantine Kontokosta (New York University); Pat McAllister (School of Real Estate & Planning, Henley Business School, University of Reading) |
| Abstract: | This paper investigates the impact of policies to promote the adoption of LEED-certified buildings across CBSA in the United States. Drawing upon a unique database that combines data from a large number of sources and using a number of regression procedures, the determinants of the proportion LEED-certified space for more than 170 CBSA in the US is modeled. LEED-certified space still accounts for a relatively small proportion of commercial stock in all markets. The average proportion is less than 1%. There is no conclusive evidence of a positive impact of policy intervention on the levels of LEED-certified space. However, after accounting for bias introduced by non-random assignment of policies, we find preliminary evidence of a positive impact of city-level green building incentives. There is a significant positive association between market size and indicators of economic vitality on proportions of LEED-certified space. |
| Keywords: | energy efficiency, LEED, real estate, innovation diffusion, eco-labeling |
| JEL: | R33 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:repxwp:rep-wp2011-01&r=ure |
| By: | Rémi Jedwab (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, LSE - London School of Economics and Political Science - LSE); Alexandre Moradi (Sussex University - Sussex University) |
| Abstract: | We study the impact of transportation infrastructure on agriculture and development in colonial Ghana. Two railway lines were built between 1901 and 1923 to connect the coast to mining areas and the large hinterland city of Kumasi. This unintendedly opened vast expanses of tropical forest to cocoa cultivation, allowing Ghana to become the world's largest producer. This attracted migrants to producing areas and the economic surplus drove urbanization. Using data at a very fine spatial level, we find a strong effect of railroad connectivity on cocoa production due to reduced transportation costs. We then show that the economic boom in cocoa-producing areas was associated with demographic growth and urbanization. We _nd no spurious effect from lines that were not built yet, and lines that were planned but never built. We show that our results are robust to considering nearest neighbor estimators. Lastly, railway construction has durably transformed the economic geography of Ghana, as railway districts are more developed today, despite thirty years of marked decline in rail transportation. |
| Keywords: | Railroads ; Trade Costs ; Urbanization ; Africa |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-00607207&r=ure |
| By: | Zurinah bt Tahir; Khadijah bt Hussin (Department of Land Administration and Development, Universiti Teknologi Malaysia, Skudai Malaysia) |
| Abstract: | Public safety, an important national agenda, has featured prominently in the 10th Malaysia Plan. Various strategies have been formulated towards creating a safer environment in which to live and work. Crime affects not only the public but also the economy. Taking cognizance of this fact, the Government has implemented various programmes to reduce the crime rate, and to create a safer and more secure living environment. The development of residential properties under the Gated Community concept is considered as one of the most effective methods to ensure the safety of residents. Equipped with security controls at all the times, this type of development could complement the Safe Township concept. This seminar paper discusses the security features in the Gated Community housing development as measures to combat crime in line with the implementation of the Safe Township concept |
| Keywords: | Crime, Gated Community, Preventive Measures, Safe Township Concept, Safety, Security |
| JEL: | M00 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cms:1icm11:2011-033_241&r=ure |
| By: | Kronenberg, Kristin |
| Abstract: | This study analyzes determinants of business relocation and identifies regional characteristics which attract relocating firms. Results indicate that the relocation decisions of firms are sector-dependent, and the migratory behavior of firms in knowledge-intensive sectors notably differs from that in less knowledge-intensive sectors. Generally, its age and size keep a firm from relocating, whereas firms paying high average salaries have a higher probability to move out of their present location. Relocating firms are generally attracted by densely populated municipalities with high wage levels, and predominantly service firms are drawn to municipalities which are specialized in the firm’s own sector and appeal to individuals, while they avoid moving to municipalities in which only few sectors are present. Sector-specific wages may either attract, or deter firms, suggesting that this variable may capture both the cost and the quality of the locally available workforce. |
| Keywords: | firm relocation; mobility; location choices; nested logit |
| JEL: | R30 R11 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32147&r=ure |
| By: | Sonja Fagernäs; Panu Pelkonen |
| Abstract: | Whether to hire teachers locally on a contract basis, or via competitive examinations as government officials, is a major policy question in developing countries. We use a Discrete Choice Experiment to assess the job preferences of 700 future elementary school teachers in the state of Uttarakhand in India. The students have been selected using either competitive examination or from a pool of locally hired contract teachers. Skills in English, Arithmetic and Vocabulary are also tested. We find a trade-off between skills and preferences, as students hired using competitive examination have higher skills, but prefer posts in less remote regions. |
| Keywords: | Discrete choice experiment, education, para-teachers, preferences, skills |
| JEL: | H75 J24 J41 J45 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0083&r=ure |
| By: | Rune Dahl Fitjar (IRIS - International Research Institute of Stavanger); Andrés Rodríguez-Pose (IMDEA Social Sciences) |
| Abstract: | This paper examines the sources of firm product and process innovation in Norway. It uses a purpose-built survey of 1604 firms in the five largest Norwegian city-regions to test, by means of a logit regression analysis, Jensen et al.'s (2007) contention that firm innovation is both the result of 'science, technology and innovation' (STI) and 'doing, using and interacting' (DUI) modes of firm learning. The paper classifies different types of firm interaction into STI-mode interaction (with consultants, universities, and research centres) and DUI-mode interaction, distinguishing between DUI interaction within the supply-chain (i.e. with suppliers and customers) or not (with competitors). It further controls for the geographical locations of partners. The analysis demonstrates that engagement with external agents is an important source of firm innovation and that both STI and DUI-modes of interaction matter. However, it also shows that DUI modes of interaction outside the supply chain tend to be irrelevant for innovation, with frequent exchanges with competitors having a detrimental effect on a firm's propensity to innovate. Collaboration with extra-regional agents is much more conducive to innovation than collaboration with local partners, especially within the DUI mode.This paper examines the sources of firm product and process innovation in Norway. It uses a purpose-built survey of 1604 firms in the five largest Norwegian city-regions to test, by means of a logit regression analysis, Jensen et al.'s (2007) contention that firm innovation is both the result of 'science, technology and innovation' (STI) and 'doing, using and interacting' (DUI) modes of firm learning. The paper classifies different types of firm interaction into STI-mode interaction (with consultants, universities, and research centres) and DUI-mode interaction, distinguishing between DUI interaction within the supply-chain (i.e. with suppliers and customers) or not (with competitors). It further controls for the geographical locations of partners. The analysis demonstrates that engagement with external agents is an important source of firm innovation and that both STI and DUI-modes of interaction matter. However, it also shows that DUI modes of interaction outside the supply chain tend to be irrelevant for innovation, with frequent exchanges with competitors having a detrimental effect on a firm's propensity to innovate. Collaboration with extra-regional agents is much more conducive to innovation than collaboration with local partners, especially within the DUI mode. |
| Keywords: | Innovation; firms; suppliers; customers; competitors; universities; STI; DUI; R&D; geography; Norway |
| Date: | 2011–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:imd:wpaper:wp2011-12&r=ure |
| By: | Maria Plotnikova (Department of Economics, University of Reading) |
| Abstract: | This study addresses the issue of housing privatization in Russia in the course of the 1990s. Privatization was started to create a housing market in order to efficiently allocate resources in the use and production of housing, and to phase out the state budget financing of housing. The dwellings were offered to their residents free of payment. The objective of this study is to offer a better understanding of the structural components of privatization by formally modeling housing privatization decision from the household point of view. The model is based on a trade-off between certain value of renting and uncertain value of owning. Using the results of the theoretical model, an empirical model of the privatization decision from the point of view of the household is formulated. |
| JEL: | P25 R21 P36 P21 |
| Date: | 2010–08–30 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:emxxdp:em-dp2010-07&r=ure |
| By: | Barbara Annicchiarico (Department of Economics - University of Rome “Tor Vergata”); Federica Orioli (University of Rome "Luiss Guido Carli" - University of Rome "Luiss Guido Carli"); Federico Trionfetti (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) |
| Abstract: | We replace monopolistic competition with national oligopolies in a model of "new economic geography". There are many possible bifurcation diagrams but, unlike in monopolistic competition, the symmetric equilibrium is always stable for low trade costs. The antitrust policy, though identical in both countries, affects the geographical distribution of firms. In turn, migration attenuates the effectiveness of the antitrust policy in eliminating collusive behavior. For high trade costs a toughening of the antitrust policy is likely to result in more agglomeration and may reduce world welfare. The antitrust policy is more likely to be welfare improving when market integration progresses. |
| Keywords: | Spatial Oligopoly, Antitrust Policy, Welfare |
| Date: | 2011–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00607641&r=ure |
| By: | Maria Plotnikova (Department of Economics, University of Reading); Nigel Wadeson; Brian Ashcroft (Department of Economics, University of Strathclyde) |
| Abstract: | Firm formation has been advocated by policy-makers and examined by researchers as a vehicle for job creation and economic development. Both industrial structures and the firm formation rates of individual industries vary regionally. For instance, Ashcroft et al (1991) showed that firm formation rates vary significantly between U.K. counties. While shift-share analysis has been used as a decomposition technique (Dunn, 1960) to account for these differences, a shortcoming is that the regional shift is affected by the level of regional employment in a given industry. Also, firm formation rates in each industry are likely to be partly determined by the industrial structure of a region. This paper extends the shift-share methodology developed by Johnson (1983) to incorporate a cluster analysis of the industrial structure of regional employment in order to further separate regional and sectoral components of firm formation in British counties in the1980s and 1990s. Firm formation is measured using VAT registration rates. |
| Date: | 2010–08–15 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:emxxdp:em-dp2010-06&r=ure |
| By: | Bloze, Gintautas (Department of Business and Economics); Skak, Morten (Department of Business and Economics) |
| Abstract: | Favouring homeownership is an important part of housing policies in many countries. Although this may be explained by the preferences of the majority of voters, it may also be because homeownership is believed to have positive effects on individuals’ behaviour and welfare. Previous research seems to indicate that homeownership increases individual welfare, but it is difficult to control for all other factors that may influence and bias the results. Based on panel data from Danish surveys on living conditions from the years 1976, 1986 and 2000, the paper presents an analysis of homeownership and subjective well-being. |
| Keywords: | Homeownership; Subjective well-being; Panel data |
| JEL: | D10 I10 R20 |
| Date: | 2010–09–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sdueko:2010_005&r=ure |
| By: | Domenico Depalo; Silvia Fedeli |
| Abstract: | On the basis of a unique dataset referring to all 8,100 Italian municipalities and providing details of their balance-sheets, local governments’ features, socio-demographic and economic indicators, we analyze the determinants of the local cultural expenditures. We exploit the panel nature of the data to explain observable and unobservable heterogeneity. Other than the traditional determinants, we find that per capita cultural expenditures increase with the population size, but decrease with the share of men over total population; immigrants increase local cultural spending only in the long run. The number of years in power of the municipal council also plays a role. |
| Keywords: | Local public expenditure, cultural expenditure, immigrants, local government choice, Mundlak correction. |
| JEL: | H72 Z10 C23 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:sap:wpaper:139&r=ure |
| By: | Maria Plotnikova (Department of Economics, University of Reading); Chokri Dridi (Department of Rural Economy, University of Alberta) |
| Abstract: | The study uses a computational approach to study the phenomenon of housing privatization in Russia in the 1990s. As part of the housing reform flats in multi-family buildings were offered to their residents free of payment. Nevertheless rapid mass housing privatization did not take place. While this outcome admits a number of explanations this analysis emphasizes the fact that the environment in which the decision-making households were operating had a high degree of uncertainty and imposed a high information-processing requirement on the decision-makers. Using the bounded rationality paradigm, the study builds a case for a cellular automata simulation of household decision-making in the context of housing privatization reforms in Russia in the 1990s. Cellular automata is then used to simulate a household’s decision to become the owner of its dwelling. |
| Keywords: | cellular automata, complex systems, housing reform, Russia, simulation |
| JEL: | C45 C63 P21 R21 |
| Date: | 2010–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:emxxdp:em-dp2010-05&r=ure |
| By: | Neil Crosby (School of Real Estate & Planning, Henley Business School, University of Reading); Cathy Hughes (School of Real Estate & Planning, Henley Business School, University of Reading) |
| Abstract: | In the context of the financial crash and the commercial property market downturn, this paper examines the basis of valuation used in the UK commercial property lending process. Post-crisis there is discussion of countercyclical measures including the monitoring of asset prices; however there is no consideration of a different approach to property valuation. This paper questions this omission, given the role that valuations play in the bank regulatory process. The different bases of valuation available to lenders within International Valuation Standards are identified as Market Value (MV), Mortgage Lending Value (MLV) and Investment Value (IV), with MV being the most used in the UK. Using the different bases in the period before the financial crisis, the UK property market is modelled at a national office, retail and industrial/warehouse sector level to determine the performance of each alternative valuation basis within the context of counter-cyclical pressures on lending. Both MLV and IV would have produced lower valuations and could have provided lenders with tools for more informed and prudent lending. The paper concludes by recognising some of the practical issues involved in adopting the different bases for the bank lending role but recommends a change to IV. |
| Keywords: | Commercial property valuation, secured lending, Mortgage lending Value, Market Value, Investment Value |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:repxwp:rep-wp2011-02&r=ure |
| By: | Franz Fuerst (School of Real Estate & Planning, Henley Business School, University of Reading); Pat McAllister (School of Real Estate & Planning, Henley Business School, University of Reading); Petros Sivitanides (Neapolis University) |
| Abstract: | This paper uses sales transaction data in order to examine whether flight from risk phenomena took place in the US office property investment market during the financial crisis of 2007-2009. The effect of the crisis on the pricing of property quality attributes, mainly summarized by the class category of each building, is investigated. In addition, the paper examines how turnover levels were affected by the market downturn and whether there were significant variations between different real estate quality types. The results of the hedonic regression models suggest that the price spread between property classes A, B and C grew significantly during the downturn. We also find that property attributes such as size, height and age are priced significantly different in ‘hot’ and ‘cold’ markets. |
| Keywords: | Real estate cycles, risk-return relationship, investment |
| JEL: | R33 D4 D92 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:repxwp:rep-wp2011-04&r=ure |
| By: | Marcos Poplawski-Ribeiro; Mauricio Moura; Caio Piza |
| Abstract: | This paper studies the effects of property-titling on labor supply. The role of legal ownership security is isolated by comparing the effect that being part of, or excluded from, a land title program in a unique quasi-experiment in two similar communities in the Brazilian city of Osasco. Our main innovation is the estimation of the distributive impact of land title on hours worked via the quantile regression methodology and the weighting estimator of Firpo (2007). The estimates suggest that the impact of land-titling on labor supply is heterogeneous and greater for those households with fewer hours worked before the program. |
| Keywords: | Brazil , Economic models , Labor markets , Labor supply , Land tenure , Real estate prices , |
| Date: | 2011–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:11/131&r=ure |
| By: | Caio Piza (Department of Economics, University of Sussex); Mauricio José Serpa Barros de Moura (International Finance Corporation, World Bank Group) |
| Abstract: | This paper studies the effects property rights on credit access using a unique data set based on a Brazilian land-titling program affecting 85,000 families. The causal role of land title is isolated by comparing two communities in Osasco, where some residential units are allocated titles and others not. Survey data is collected from residents before and after the title granting. In order to estimate land title impact, we have undertaken the Difference-in- Differences methodology. Some of our results suggest that land title increases the access to credit for about 60%. Additionally, land title impact by gender and credit type is presented and also positive. |
| Keywords: | Property Rights, Land Title, Credit, Difference-in-Difference, and Differencein- Differences Matching Estimator |
| JEL: | D23 O43 J22 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:2211&r=ure |
| By: | Bianchi, Massimo |
| Abstract: | Local Public Administrations could play a relevant role in the building of a strongest European identity. This issue derives not only from the capability to be directly in touch with citizens but also because they represent the culture of service delivered from the bottom. This means that Europe has to facilitate the Life Long Learning of Managers and Staff of local administrations with programs of temporary mobility and learning. As the Directorate-General for Education and Culture of the European Commission recommended some years ago, initiatives like the PLOTEUS portal for learning opportunities, work in this direction but for a more effectiveness of this strategy is necessary a strongest policy of incentives and facilities and a clear framework similar to experienced Tempus and Leonardo programs for Universities and Research. |
| Keywords: | Local Public Administrations; local government; European Identity |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:nsu:apasro:297&r=ure |
| By: | Luke Layfield (Aviva Investors); Simon Stevenson (School of Real Estate & Planning, Henley Business School, University of Reading) |
| Abstract: | This study uses a bootstrap methodology to explicitly distinguish between skill and luck for 80 Real Estate Investment Trust Mutual Funds in the period January 1995 to May 2008. The methodology successfully captures non-normality in the idiosyncratic risk of the funds. Using unconditional, beta conditional and alpha-beta conditional estimation models, the results indicate that all but one fund demonstrates poor skill. Tests of robustness show that this finding is largely invariant to REIT market conditions and maturity. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:repxwp:rep-wp2011-05&r=ure |