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on Urban and Real Estate Economics |
| By: | Paolo VENERI (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali); David BURGALASSI (Universit… di Pisa, Dipartimento di Scienze Economiche) |
| Abstract: | This work is an investigation of how spatial structure affects labour productivity in Italian provinces. The analysis draws on agglomeration theories, and analyzes whether agglomeration benefits are dependent on the way activities are spatially organized within regions. Urban spatial structures have declined in terms of size, dispersion and polycentricity. Using instrumental variables and spatial econometric techniques, we assess the effects of spatial structure for the 103 Italian NUTS-3 regions. The findings include negative impacts of both polycentricity and dispersion and a positive impact of size. |
| Keywords: | Agglomeration externalities, Dispersion, Polycentricity, Productivity, Spatial structure |
| JEL: | R11 R12 R14 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wpaper:364&r=ure |
| By: | Mariano Kulish (Reserve Bank of Australia); Anthony Richards (Reserve Bank of Australia); Christian Gillitzer (Reserve Bank of Australia) |
| Abstract: | This paper studies determinants of some aspects of the structure of cities, including density and the price of land and housing. We use a version of the Alonso-Muth-Mills model, calibrated to broadly match some of the features of a representative large city. While the calibrated model omits many real-world features, it can nonetheless be used to explore the impact of factors such as: (i) the provision of transport infrastructure; (ii) zoning policies that limit housing density; (iii) frictions on the production of housing; and (iv) population size. The empirical section of the paper shows that the model is consistent with some empirical regularities for large Australian cities. The results of the paper draw attention to structural factors that may have contributed to developments in the Australian housing market in recent years. |
| Keywords: | housing; housing prices; land prices; zoning; land use |
| JEL: | R00 R52 R58 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:rba:rbardp:rdp2011-03&r=ure |
| By: | Wouter Vermeulen |
| Abstract: | <p>Should constraints on urban expansion be relaxed because of external agglomeration economies? In a system of heterogeneous cities, we demonstrate that second-best land use policy consists of a tax on city creation and a subsidy (tax) on urban development in cities in which the marginal-average productivity gap is above (below) average.</p><p>However, the implementation of this policy requires coordination at the system level. A tax on city creation does not raise welfare if development taxes are set decentrally by competitive urban developers, nor does correction of these taxes raise welfare if a tax on city creation is unavailable. In the resulting constrained optimal allocation, urban development is subsidized in all cities. The quantitative significance of these findings is explored in an application of our model.</p> |
| JEL: | R52 R12 R13 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:191&r=ure |
| By: | Lisa J. Dettling; Melissa Schettini Kearney |
| Abstract: | This project investigates how changes in Metropolitan Statistical Area (MSA)-level housing prices affect household fertility decisions. Recognizing that housing is a major cost associated with childrearing, and assuming that children are normal goods, we hypothesize that an increase in real estate prices will have a negative price effect on current period fertility. This applies to both potential first-time homeowners and current homeowners who might upgrade to a bigger house with the addition of a child. On the other hand, for current homeowners, an increase in MSA-level house prices might increase available home equity, leading to a positive effect on birth rates. Controlling for MSA fixed effects, trends, and time-varying conditions, our analysis finds that indeed, short-term increases in house prices lead to a decline in births among non-owners and a net increase among owners. Our estimates suggest that a 10 percent increase in house prices would lead to a 4 percent increase in births among home owners, and a roughly one percent decrease among non-owners. The net effect of house price changes on birth rates varies across demographic groups based on rates of home ownership. Our paper provides evidence that homeowners use some of their increased housing wealth, coming from increases in local area house prices, to fund their childbearing goals. More generally, the finding of a “home equity effect” demonstrates empirically that imperfect credit markets affect fertility timing. |
| JEL: | D1 J13 R21 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17485&r=ure |
| By: | de Cara, Stephane; Fournier, Anne; Gaigne, Carl |
| Abstract: | In this paper, we study the impact of urbanization on the location of agricultural production and the GHG emissions related to transportation activities. We develop an economic geography model where the location of agricultural activities and urban population are endogenous. We show that increasing agricultural yields induce the spatial concentration of agricultural produc- tion in the least urbanized region if agricultural transport costs are relatively low and in the most urbanized region otherwise. In addition, interregional trade in agricultural commodities is desirable to reduce GHG emissions, except when urban population is equally split between cities. However, the market may induce too much agglomeration of agricultural production when yields are high and when collection costs are low. |
| Keywords: | Urbanization, agriculture location, transport, Environmental Economics and Policy, Food Security and Poverty, Q10, Q54, R12, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:114350&r=ure |
| By: | Chan, Sewin; Gedal, Michael; Been, Vicki; Haughwout, Andrew |
| Abstract: | Using a rich database of non-prime mortgages from New York City, we find that census tract level neighborhood characteristics are important predictors of default behavior, even after controlling for an extensive set of controls for loan and borrower characteristics. First, default rates increase with the rate of foreclosure notices and the number of lender-owned properties (REOs) in the tract. Second, default rates on home purchase mortgages are higher in census tracts with larger shares of black residents, regardless of the borrower’s own race. We explore possible explanations for this second finding and conclude that it likely reflects differential treatment of black neighborhoods by the mortgage industry in ways that are unobserved in our data. |
| Keywords: | mortgage; default; neighborhoods; race |
| JEL: | G2 R1 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33941&r=ure |
| By: | Maria Christidou (Department of Economics, University of Macedonia); Panagiotis Konstantinou (Department of Economics, University of Macedonia) |
| Abstract: | What are the effects of monetary policy on the housing market? Is the response of the housing market similar across different states? We explore the impact of monetary policy shocks on real house prices and housing investment, using US state-level data. To this end we estimate VAR models for the period 1988-2009, to assess the differential effect - if any - of a common monetary policy shock on house prices and investment. Our VAR models also allow us to explore the macroeconomic effect of wealth shocks that originate in the housing market (housing prices). Our empirical models include key macroeconomic variables, namely personal income, prices and the federal funds rate, as well as housing market variables, e.g. real house prices, given by the FHFA house price index, and housing investment, proxied by the number of housing starts. Our baseline estimates suggest that transmission of monetary policy is heterogeneous across US states. Moreover, our VAR models indicate the presence of a wealth effect across most US states, as a positive housing price innovation leads to a strong, negative response of personal income. |
| Keywords: | House prices, Monetary policy transmission, VAR, Wealth effect. |
| JEL: | C32 E21 E52 R31 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:mcd:mcddps:2011_14&r=ure |
| By: | Marco Tonello (Catholic University Milan & University of Milan-Bicocca) |
| Abstract: | This paper focuses on mechanisms of “peer interactions” among native and non-native students. We present a theoretical framework based on Lazear (2001) education production model and on the “sub-cultural” sociological theory and we test the theoretical predictions exploiting a dataset of Italian junior high school. Results show that non-native school share has small and negative impacts on Language test scores of natives’ peers, while it does not significantly affect Math test scores. The negative effects to natives’ attainment are concentrated in schools characterized by low levels of non-natives’ isolation or where non-natives’ school share is above 10%. |
| Keywords: | Peer effects, native and non-native students, social interactions |
| JEL: | J15 I21 I28 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2011/10/doc2011-21&r=ure |
| By: | Francesca Modena (University of Trento and Euricse); Concetta Rondinelli (Bank of Italy) |
| Abstract: | This paper provides an explanation for the postponement of youth emancipation in the Italian context mainly characterized by a sharp increase in both house and rent prices together with stagnant disposable income over the past decade. We first assemble a unique database related to the housing and rental market which is then matched with household characteristics. We find that the probability of leaving home decreases by about half percentage point and one percentage point for males and females, respectively, for a one-standard-deviation change in house prices. Together with property prices, local labour markets play a prominent role in determining decisions by unemployed youths to postpone the transition. The youngest cohort was mainly affected by the real estate market evolution that occurred in the last decade. |
| Keywords: | coresidence, moving out, real estate market, discrete time duration model. |
| JEL: | C41 D1 J12 R2 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_818_11&r=ure |
| By: | Laura Bianchini (University of Torino); Federico Revelli (University of Torino) |
| Abstract: | Ascertaining whether local election results are driven by incumbents’ performance while in office or mechanically reflect constituencies’ ideological affiliation and macroeconomic conditions is crucial for evaluating the alleged accountability-enhancing property of decentralization. Based on a unique score of urban environmental performance and the results of all elections held in the major Italian cities over a decade, we investigate the role of local (fiscal and environmental) versus national issues in municipal elections. While the empirical evidence points to a strong ideological attachment and a somewhat weaker fiscal conservatism, it reveals that media reported environmental ranking has a considerable impact on the popularity of city governments. |
| Keywords: | Local elections, vote function, environmental performance, property tax |
| JEL: | D72 H71 Q58 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2011/9/doc2011-18&r=ure |
| By: | Jihad Dagher; Ning Fu |
| Abstract: | We show that the lightly regulated non-bank mortgage originators contributed disproportionately to the recent boom-bust housing cycle. Using comprehensive data on mortgage originations, which we aggregate at the county level, we first establish that the market share of these independent non-bank lenders increased in virtually all US counties during the boom. We then exploit the heterogeneity in the market share of independent lenders across counties as of 2005 and show that higher market participation by these lenders is associated with increased foreclosure filing rates at the onset of the housing downturn. We carefully control for counties’ economic, demographic, and housing market characteristics using both parametric and semi-nonparametric methods. We show that this relation between the pre-crisis market share of independents and the rise in foreclosure is more pronounced in less regulated states. The macroeconomic consequences of our findings are significant: we show that the market share of these lenders as of 2005 is also a strong predictor of the severity of the housing downturn and subsequent rise in unemployment. Overall our findings lend support to the view that more stringent regulation could have averted some of the volatility on the housing market during the recent boom-bust episode. |
| Keywords: | Bank regulations , Banks , Business cycles , Credit demand , Housing prices , Nonbank financial sector , United States , |
| Date: | 2011–09–14 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:11/215&r=ure |
| By: | Lisi, Gaetano |
| Abstract: | This paper develops a matching model à la Pissarides (2000) in order to explain the basic facts of housing markets, most of all the variance in house prices. Price dispersion is basically due to both the ex-ante heterogeneity of the parties and the search costs of buyers and sellers. In fact, sellers and buyers spend time and money before concluding the deal. Furthermore, the house price is substantially determined by bargaining between the parties. These factors affect the selling price and lead to price dispersion. This simple theoretical model is able to take these distinctive features into account, thus explaining the basic facts of housing markets. |
| Keywords: | house prices; price dispersion; bargaining power; search frictions |
| JEL: | R0 D40 D83 R31 R21 |
| Date: | 2011–10–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33863&r=ure |
| By: | Roland G. Fryer, Jr |
| Abstract: | The racial achievement gap in education is an important social problem to which decades of research have yielded no scalable solutions. Recent evidence from "No Excuses" charter schools – which demonstrates that some combination of school inputs can educate the poorest minority children – offers a guiding light. In the 2010-2011 school year, we implemented five strategies gleaned from best practices in "No Excuses" charter schools – increased instructional time, a more rigorous approach to building human capital, more student-level differentiation, frequent use of data to inform instruction, and a culture of high expectations – in nine of the lowest performing middle and high schools in Houston, Texas. We show that the average impact of these changes on student achievement is 0.276 standard deviations in math and 0.059 standard deviations in reading, which is strikingly similar to reported impacts of attending the Harlem Children’s Zone and Knowledge is Power Program schools – two strict “No Excuses” adherents. The paper concludes with a speculative discussion of the scalability of the experiment. |
| JEL: | H0 I0 I21 J0 K0 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17494&r=ure |
| By: | Mariana Alfonso; Ana Santiago |
| Abstract: | Having a good teacher is the most important school-related factor for student achievement, to the point of closing the gap between low and high-income students. However, the empirical literature is almost silent regarding teacher selection. This paper estimates a teacher selection model using recruitment data from Enseña Perú, a program that recruits top university graduates from all majors and places them in vulnerable schools. Our results suggest that candidates with volunteering experience and who finished their college degree in the top third of their class are significantly more likely to be selected into the program. Teacher recruitment policy that identifies these qualities, which might be related to leadership, high motivation, social commitment and deep content knowledge, could considerably improve the quality of the teaching force. |
| Keywords: | Education :: Teacher Education & Quality |
| JEL: | I20 I21 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:35739&r=ure |
| By: | John V. Duca; Anil Kumar |
| Abstract: | The recent U.S. consumption boom and the subsequent surge in mortgage defaults have been linked to mortgage equity withdrawals (MEWs). MEWs are correlated with covariates consistent with a permanent income framework augmented for credit-constraints. Nevertheless, many households are financially illiterate. We assess the unexplored linkages between “active MEW” and measures of financial literacy using panel data from the Health and Retirement Study (HRS). Findings indicate that declines in mortgage interest rates encouraged MEWs. Nevertheless, financially illiterate households were significantly more likely to withdraw housing equity via traditional first or second mortgages (including cash-out mortgage refinancings but not home equity loans).> ; We find that the financially less savvy are 3–5 percentage points more likely to engage in this type of MEW relative to those who answered financial literacy questions correctly. Also significant were state differences in debtor versus creditor interests in bankruptcy, with loan demand effects outweighing loan supply effects across states. |
| Keywords: | Consumption (Economics) - United States ; Credit control |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddwp:1110&r=ure |
| By: | Argentino Pessoa (CEF.UP, Faculdade de Economia, Universidade do Porto) |
| Abstract: | The literature on clustering has highlighted several advantages of industrial agglomerations. Persons and firms benefit from the production and innovation activities of neighbouring companies in the same and related industries. Considering such benefits, Michael Porter states that clustering is an important way for firms fulfilling their competitive advantages and for rising regional and national competitiveness. This justification has increasingly driven regional policy towards the cluster promotion. However, the cluster-support policy is in the middle of a controversy, since the traditional optimal-policy perspective recommends providing a subsidy to firms of clusters generating externalities, while Porter’s prescriptions recommend not choosing among clusters. So, we state that cluster policy is involved in a paradox: policy makers use the competitiveness rhetoric inspired in the competitive advantages of Porter but, in practice, they go on using the industrial targeting that was also criticized b Porter. This paper deals with this paradox presenting a model, which proves that despite the extensive amount of externalities is the traditional comparative advantage approach that must guide policy. This finding is congruent with the Porter’s policy prescriptions and has clear implications in regional policy. |
| Keywords: | clusters, dynamic and static externalities, knowledge spillovers, regional economic development, spatial agglomeration |
| JEL: | L1 O3 R1 R3 R12 R15 C67 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:431&r=ure |
| By: | Gaetano Lisi (University of Cassino - Creativity and Motivations (CreaM) Economic Center) |
| Abstract: | This paper develops a matching model à la Pissarides (2000) in order to explain a basic fact of housing markets: price dispersion. The variance in house prices is basically due to both the ex-ante heterogeneity of the parties (i.e., bargaining power, tastes, asymmetric information) and the search costs of buyers and sellers. In fact, sellers and buyers spend time and money before concluding the deal. Furthermore, the house price is substantially determined by bargaining between the parties. These factors affect the selling price and lead to price dispersion. This simple theoretical model is able to take these distinctive features of the housing markets into account. |
| Date: | 2011–10–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00628323&r=ure |
| By: | Hideo Konishi (Boston College) |
| Abstract: | Housing developments (condos and suburban developments) are not necessarily homogeneous. Developers provide different types of units with various sizes and other characteristics catering to different types of customers. In this paper, we allow local consumption externalities within each development: some consumers would be happy to pay high prices for the most prestigious units in the development, while some are happy to have modest units as long as the prices are low. We consider land developers who seek the optimal mix of units in developments to maximize their profits. We show that there exists an equilibrium, and that every equilibrium is Pareto efficient as long as consumers and developers are optimistic in a certain sense. We provide examples in which mixed developments are more profitable to the developers. We relate this work to widely used hedonic pricing model by Rosen (1974), and to an equilibrium concept under asymmetric information by Rothschild and Stiglitz (1976). |
| Keywords: | housing development, mixed housing, externalities, hedonic pricing |
| JEL: | R31 D51 H70 |
| Date: | 2011–08–26 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:777&r=ure |
| By: | Hippu Salk Kristle Nathan (Indira Gandhi Institute of Development Research); B. Sudhakara Reddy (Indira Gandhi Institute of Development Research) |
| Abstract: | In a recent work Nathan and Reddy (2011a) have proposed a Multi-view Black-box (MVBB) framework for development of sustainable development indicators (SDIs) for an urban setup. The framework is flexible to be applied to any domain or sector of urban system. In this paper the proposed MVBB framework is applied for transportation sector of Mumbai city. The paper begins with a discussion on transportation sector and its unsustainability links and trends. It outlines the concept of sustainable transportation system and reviews some of the prominent sustainable transportation indicator initiatives. In order to formalize sustainable development indicators (SDIs) for transportation sector, the study collates the indicators from literature, placed them in Mumbai's context and classified them into the three dimensions of urban sustainability-economic efficiency, social wellbeing and ecological acceptability. |
| Keywords: | Sustainable transportation system, Potential indicators, Urban sustainability, MVBB, Transport indicators, Economic efficiency, Social wellbeing, Ecological acceptability |
| JEL: | O18 Q01 L92 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2011-022&r=ure |
| By: | Eric de Noronha Vaz (Universidade Nova de Lisboa); Peter Nijkamp (VU University Amsterdam); Marco Painho (Universidade NOVA de Lisboa); Mario Gaetano (Universidade NOVA de Lisboa) |
| Abstract: | The Algarve region in Portugal is often considered as one of the most appealing regions for tourism in the country. Its attractive location and moderate climate have since the mid-1960s brought increasing economic prosperity. As a result of the development of mass tourism, available land-use resources were widely exploited to create an integrated tourist industry. This region has shown an increasing loss of ecosystems resulting from the expansion of urban areas. This has also been accompanied by a significant abandonment of rural areas and hinterlands, leading to loss of agriculture and other rural activities. Clearly, urban growth needs considerable attention in the context of sustainable development, as often peri-urban areas with fragile ecosystems are becoming increasingly vulnerable. This paper aims to develop and apply key tools to quantify the changes of land use and how this affects the regional spatial scope by using multi-temporal inventorying an d accounting of land-use change matrices. Using Cellular Automata and a combined interpretation of CORINE Land Cover Data, it converges into a qualitative to quantitative interpretation of land use change by means of Multi-Criteria Evaluation. Finally, our analysis to identify the scenario with the best fit, based on the evolution of the actual 2006 land cover, enabled us to build a future urban growth model for 2020 which was quantitatively assessed. The outcome suggests a picture of continuing growth for the region of the Algarve within the framework of current policies and regressive spatial trends. |
| Keywords: | Urban growth; Algarve; CORINE Land Cover; Scenario modelling |
| JEL: | R11 R14 C50 |
| Date: | 2011–10–04 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20110142&r=ure |
| By: | Paola Bertolini; Enrico Giovannetti; Francesco Pagliacci |
| Abstract: | Polycentrism is a common feature of European urban systems. Lately, the concept has assumed a more normative relevance and it has been often considered as a pre-requisite for a more sustainable and balanced development across Europe. However, the effects of polycentrism on other main European Strategies (such as the Lisbon Strategy, aimed at increasing European competitiveness and social cohesion) are not so clear. Therefore, the paper tries to highlight the relationships between a regional polycentric development and the achievement of the Lisbon Strategy’s targets. Referring to a sample of 75 regions belonging to France, Germany, Italy and Spain, we have first measured the extent of polycentrism, by estimating through OLS the slope of the rank-size distribution of cities within each region. Then, we have performed a principal component analysis (PCA) in order to highlight the main features characterising the performance of each region according to Lisbon Strategy’s targets. Looking at the correlations between the extent of polycentrism and the achievement of the Lisbon Strategy’s targets, we have found that the former is significantly correlated both with the spread of manufacture and with low investments in human capital and innovation. |
| Keywords: | the Lisbon Strategy, polycentrism, rank-size distribution, PCA |
| JEL: | O18 O52 R00 R10 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:mod:cappmo:0097&r=ure |
| By: | A. Tampieri |
| Abstract: | This paper proposes a theory on how students.social background affects their school attainment and job opportunities. We study a setup where students differ in ability and social background, and we analyse the interaction between a school and an employer. Students with disadvantaged background are penalised compared to other students: they receive less teaching and/or are less likely to be hired. A surprising result is that policy aiming to subsidise education for disadvantaged students might in fact decrease their job opportunities. |
| JEL: | C73 I21 J24 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp779&r=ure |
| By: | John H. Tyler |
| Abstract: | The past decade has seen increased testing of students and the concomitant proliferation of computer-based systems to store, manage, analyze, and report the data that comes from these tests. The research to date on teacher use of these data has mostly been qualitative and has mostly focused on the conditions that are necessary (but not necessarily sufficient) for effective use of data by teachers. Absent from the research base in this area is objective information on how much and in what ways teachers actually use student test data, even when supposed precursors of teacher data use are in place. This paper addresses this knowledge gap by analyzing usage data generated when teachers in one mid-size urban district log onto the web-based, district-provided data deliver and analytic tool. Based on information contained in the universe of web logs from the 2008-2009 and 2009-2010 school years, I find relatively low levels of teacher interaction with pages on the web tool that contain student test information that could potentially inform practice. I also find no evidence that teacher usage of web-based student data is related student achievement, but there is reason to believe these estimates are downwardly biased. |
| JEL: | I21 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17486&r=ure |
| By: | S. Chandrasekhar (Indira Gandhi Institute of Development Research) |
| Abstract: | We provide estimates of workers residing in rural (urban) India and commuting to urban (rural) areas for work. The estimates are based on National Sample Survey Organisation's survey of Employment and Unemployment (2009-10). In 2009-10, a total number of 8.05 million workers not engaged in agriculture commuted from rural to urban areas for work while 4.37 million workers not engaged in agriculture commuted from urban to rural areas for work. We argue that the size of the rural and urban labour force should be adjusted to account for the workers who commute to a location different from their usual place of residence. |
| Keywords: | Rural Urban Movement of Workers |
| JEL: | R23 J61 C80 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2011-019&r=ure |
| By: | Ko, Jun-Hyung |
| Abstract: | Econometric evidence suggests the existence of two dynamics in the postwar U.S. housing market: (i) housing rental and purchase prices co-move positively in response to productivity shocks, and (ii) the purchase price exhibits much larger volatile movements than the rental price in response to the shocks. A standard New Keynesian model with nominal rigidity in the production sector is inconsistent with these facts. We incorporate a rental market into an otherwise standard New Keynesian model with durables and show that nominal rigidity in the rental market contributes to our empirical findings. |
| Keywords: | Productivity shock; price-rent ratio; housing prices |
| JEL: | E32 E31 R21 E37 R31 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33848&r=ure |
| By: | Haroldo da Gama Torres |
| Abstract: | This paper examines the environmental and social implications of peri-urban growth in small to medium sized cities in Latin America and the Caribbean and proposes approaches to address this challenge. Key recommendations include cities should stimulate strategies for compact growth and efforts to regularize existing irregular settlements should be strongly supported, among other recommendations. |
| Keywords: | Environment & Natural Resources, Rural & Urban Development :: Urban Development, IDB-TN-237 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:35819&r=ure |
| By: | Lissette Aliaga Linares |
| Abstract: | Unlike in most Latin American cities, street vendors organized in farmers’ markets popularly known as ferias libres in Santiago de Chile, gained legal recognition early in the twentieth century. Since then, comunas, or local municipalities, have provided vendors with individual licenses that stipulate the place and time of operations, and have defined a clear set of rules regarding customer service. However, this early legal recognition has not necessarily overcome the embedded conflict over the economic use of public space. As supermarkets become spatially positioned along the main streets within easy access of the city’s transportation system, feriantes, or licensed street vendors, are being relocated in less profitable areas. Moreover, coleros, or unlicensed vendors, are still flourishing despite efforts to restrict their numbers. |
| Keywords: | informal sector, regulation, farmers’ markets, competition |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2011-11&r=ure |
| By: | Philippe Bracke |
| Abstract: | This paper analyzes the duration of house price upturns and downturns in the last 40 years for 19 OECD countries. I provide two sets of results, one pertaining to the average length and the other to the length distribution. On average, upturns are longer than downturns, but the difference disappears once the last house price boom is excluded. In terms of length distribution, upturns (but not downturns) are more likely to end as their duration increases. This duration dependence is consistent with a boom-bust view of house price dynamics, where booms represent departures from fundamentals that are increasingly difficult to sustain. |
| Keywords: | Business cycles , Cross country analysis , Housing prices , OECD , Price adjustments , Price increases , |
| Date: | 2011–10–03 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:11/231&r=ure |
| By: | Fredrik Andersson; John Haltiwanger; Mark Kutzbach; Henry Pollakowski; Daniel Weinberg |
| Abstract: | This paper explores rich longitudinal data to gain a better understanding of the importance of spatial mismatch in lower-paid workers’ job search. The data infrastructure at our disposal allows us to investigate the impact on a variety of job search-related outcomes of localized and individual-specific job accessibility measures using identification strategies that mitigate the impact of residential self-selection. Our results suggest that better access to jobs causes a statistically significant, but modest decrease in the duration of joblessness among lowerpaid displaced workers, while an abundance of competing searchers for those jobs increases duration modestly. Search durations for older workers, Hispanic workers, and those displaced from manufacturing jobs are especially sensitive to job accessibility. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:11-30&r=ure |
| By: | Ozgen, Ceren (VU University Amsterdam); Nijkamp, Peter (VU University Amsterdam); Poot, Jacques (University of Waikato) |
| Abstract: | Due to the growth in international migration in recent decades, the workforce of firms in host countries has become considerably more diverse, both demographically and culturally. It is an important question for firms and for governments to ask whether there are some productivity-enhancing externalities gained from this growing diversity within firms. In recent years migration research has demonstrated positive economic impacts of cultural diversity on productivity and innovation at the regional level. However, there is a dearth of research on the links between innovation and migrant diversity at the firm level. In this paper we construct and analyse a unique linked employer-employee micro-dataset of 4582 firms, based on survey and administrative data obtained from Statistics Netherlands. Excluding firms in the hospitality industry and other industries that employ low-skilled migrants, we use the local number of restaurants with foreign cuisines and the historical presence of migrant communities as valid instruments of endogenous migrant settlement. We find that firms in which foreigners account for a relatively large share of employment are somewhat less innovative. However, there is strong evidence that firms that employ a more diverse foreign workforce are more innovative, particularly in terms of product innovations. |
| Keywords: | immigration, innovation, cultural diversity, knowledge spillovers, linked employer-employee data, Netherlands |
| JEL: | F22 O31 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6000&r=ure |
| By: | Feng, Yao |
| Abstract: | Using the 1999 durable consumption survey data in rural China, we examine the importance of local spillovers in the diffusion of three major durable goods, i.e., color television set, washing machine, and refrigerator. We find that, with control for many family characteristics, a household is more likely to buy its first durable good in villages where a large share of households already own one. Further evidence suggests that theses patterns are unlikely to be explained by unobserved local characteristics. When examined in more detail, the extent of local spillovers appears to be negatively related to a household’s knowledge about the product, and positively related to its education level. Both are consistent with the hypothesis that learning from neighbors plays an important role of these spillovers. |
| Keywords: | Local spillovers; Social learning; Durable adoptions |
| JEL: | D12 L68 O33 |
| Date: | 2011–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33924&r=ure |
| By: | Guglielmo Maria Caporale; Ricardo M. Souza |
| Abstract: | In this paper, we show, using the consumer's budget constraint, that the residuals of the trend relationship among consumption, aggregate wealth, and labour income should predict both stock returns and housing returns. We use quarterly data for a panel of 31 emerging economies and find that, when agents expect future stock returns to be higher, they will temporarily allow consumption to rise. Regarding housing returns, if housing assets are complementary to stocks, then investors react in the same way. If, however, the increase in the exposure through risky assets is achieved by lowering the share of wealth held in the form of housing (i.e., when stock and housing assets are substitutes), then they will temporarily reduce their consumption. |
| Keywords: | consumption, wealth, stock returns, housing returns, emerging markets |
| JEL: | E21 E44 D12 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1159&r=ure |
| By: | R. Bottazzi; T. Crossley; M. Wakefield |
| Abstract: | England has very volatile house prices. We use pseudo-panel data spanning multiple house-price cycles over nearly forty years, to assess the extent to which house prices affect access to homeownership by age thirty, and whether differences in ownership rates persist. We find that ownership rates at age thirty have varied substantially, with this variation significantly related to prices. Measurement error problems – attenuation bias and other biases - complicate an analysis of the persistence of these differences in ownership. We use two methods - including one that develops the ideas of Deaton (1985) - to deal with this and find robust evidence that cohorts with low ownership rates at thirty close about 80% of the ownership gap by age forty. |
| JEL: | R21 R31 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp790&r=ure |
| By: | Quackenbush, Austin; Premkumar, Deepak; Artz, Georgeanne M.; Orazem, Peter |
| Abstract: | The philosophy of fiscal federalism presumes that local communities will under- or over-provide public amenities in the presence of externalities. We test this hypothesis using data from Vision Iowa, a state program which provided partial funding to communities to build tourist attractions. We find a 1% increase in investment increased county taxable retail sales 0.9%. The State’s return, from program-induced sales tax revenue, averaged 9.2% annually. Local communities’ returns averaged 0.9% and we find a significant increase in surrounding areas’ sales. This suggests that without state subsidies, communities would undersupply public amenities aimed at attracting visitors. |
| Keywords: | fiscal federalism; local public goods; subsidy; externality; spillover; amenity; retail sales |
| JEL: | H2 H4 H7 |
| Date: | 2011–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:34375&r=ure |
| By: | Jason Barr |
| Abstract: | This paper compares and contrasts the determinants of the market for skyscrapers in Chicago and New York from 1885 to 2007, using annual time series data. I estimate the factors that determine both the number of skyscraper completions and the height of the tallest building completed each year in the two cities. I find that each city responds differently to the same economic fundamentals. Also, regressions test for and find the presence of strategic interaction across the two cities. I also estimate the effects of zoning regulations on height. Compared to New York, Chicago's zoning policies significantly reduced the height of its skyline. |
| Keywords: | New York, Chicago, skyscrapers, building height |
| JEL: | R1 R33 N6 N9 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:run:wpaper:2011-001&r=ure |
| By: | Steve Pomeroy; Marc Godbout |
| Abstract: | Experience in northern and developed countries suggests that a well functioning rental sector (potentially including both social and private renting) is an important component of a complete and effective housing system, offering more solutions to meet a full spectrum of demands and needs. As such, it is appropriate to explore the opportunities for the Bank to support the rental options alongside the traditional lending and program focus that has generally favored homeownership. This paper seeks to outline the existing tenure patterns across Latin American and Caribbean (LAC) countries, identify the prerequisite features of effective rental sectors- based on experience in developed OECD countries-, and outline the necessary steps to develop and expand the rental sector in LAC countries. This includes consideration of both the private (private investors) and community rental sector (community based nonprofit and cooperative ownership). |
| Keywords: | Rural & Urban Development :: Housing, Rental Housing Market; Latin America and the Caribbean; Latin America; Caribbean |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:36518&r=ure |
| By: | Edoardo Marcucci (Università degli studi di Roma 3, Centro di Ricerca Interdipartimentale di Economia delle Istituzioni (CREI)); Valerio Gatta (Università degli studi "La Sapienza"); Amanda Stathopoulos (Università di Trieste, Dipartimento di Scienze Economiche e Statistiche (DISES)); Eva Valeri (Università di Trieste, Dipartimento di Scienze Economiche e Statistiche (DISES)) |
| Abstract: | City logistic policy making requires an understanding of specific issues seldom investigated in current research. Policy implementation produces unsatisfactory results when does not consider behavioural and contextual aspects. Acquiring relevant data is crucial to test hypotheses and forecast agents’ reactions. Development and application of appropriate survey instruments to test policy ex-ante acceptability is still lacking despite methodological advances in modelling interactive behaviour. This paper expands and innovates the methodological literature by describing a stated ranking experiment to study freight agent interactive behaviour and discusses in detail the efficient experimental design implemented to incorporate agent specific interaction in city logistic literature |
| Keywords: | urban freight distribution, group decision making, agent-specific interaction, stated preference, stated ranking experiments |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:sit:wpaper:11_01&r=ure |
| By: | E. Marelli; R. Patuelli; M. Signorelli |
| Abstract: | In this paper we empirically assess the evolution for the EU regions of both employment and unemployment before and after the Global Crisis. After a review of the literature on the theories and key determinants of regional unemployment, we shall overview the main findings concerning the labour market impact of the Global Crisis. The empirical analysis will initially be carried out at the national level including all EU countries; subsequently, we shall focus on the EU regions (at the NUTS-2 level), in order to detect possible changes in the dispersion of regional unemployment rates after the crisis. Our econometric investigations aim to assess the effect, on labour market performance, of previous developments in regional labour markets time series, as well as the importance of structural characteristics of the labour markets, in terms of the sectoral specialization of the regional economies. In fact, the local industry mix may have played a crucial role in shaping labour market performance in response to the crisis. In addition, we consider further characteristics of the regional labour markets, by including indicators of the level of precarization of labour and of the share of long-term unemployed, as indicators of the efficiency of the local labour markets. From a methodological viewpoint, we exploit eigenvector decomposition-based spatial filtering techniques, which allow us to greatly reduce unobserved variable bias – a significant problem in cross-sectional models – by including indicators of latent unobserved spatial patterns. Finally, we render a geographical description of the heterogeneity influence of past labour market performance over the crisis period, showing that the past performance has a differentiated impact on recent labour market developments. |
| JEL: | C21 R12 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp791&r=ure |
| By: | Guglielmo Barone (Bank of Italy) |
| Abstract: | This paper examines the creation of some new provinces in Italy in the 1990s to assess whether the reduction in the size of the local jurisdiction led to benefits in terms of local development, human capital and road quality, which are three public goods provided by the Italian provinces in tandem with other levels of government. By employing a difference-in-differences empirical strategy, and comparing the municipalities belonging to the new provinces (treatments) with other comparable municipalities (controls), I show that the reduction of the size of a province did not generate any benefits in terms of the outcome variables. This result is robust to a number of checks, including the definition of treatment and different functional specifications. |
| Keywords: | local government, difference-in-differences |
| JEL: | D24 H11 H26 H72 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_823_11&r=ure |
| By: | Matthias Brachert; Alexander Kubis; Mirko Titze |
| Abstract: | This article analyses how regional employment growth in Germany is affected by related variety, unrelated variety and the functions a region performs in the production process. Following the related variety literature, we argue that regions benefit from the existence of related activities that facilitate economic development. However, we argue that the sole reliance of related variety on standard industrial classifications remains debatable. Hence, we offer estimations for establishing that conceptual progress can indeed be made when a focus for analysis goes beyond solely considering industries. We develop an industry-function based approach of related and unrelated variety. Our findings suggest that related variety only in combination with a high functional specialization of the region facilitates regional growth in Germany. Additionally, also unrelated variety per se fails to wield influences affecting development of regions. It is rather unrelated, but functionally proximate variety in the groups “White Collar” and “Blue Collar Workers” positively affects regional employment growth. |
| Keywords: | related variety, unrelated variety, regional functions, functional specialization |
| JEL: | D62 O18 R11 R12 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:iwh:dispap:15-11&r=ure |
| By: | Hans Grönqvist (SOFI, Stockholm University); Per Johansson (IFAU; Uppsala University; IZA); Susan Niknami (SOFI, Stockholm University) |
| Abstract: | This paper investigates how income inequality affects health. Although a large literature has shown that inhabitants in areas with greater income inequality suffer from worse health, past studies are severely plagued by inadequate data, non-random residential sorting and reverse causality. We address these problems using longitudinal population hospitalization data coupled with a settlement policy where Swedish authorities distributed newly arrived refugee immigrants to their initial area of residence. The policy was implemented in a way that provides a source of plausibly random variation in initial location. Our empirical analysis reveals no statistically significant effect of income inequality on the probability of being hospitalized. This finding holds also when investigating subgroups more vulnerable to negative health influences and when studying different types of diseases. There is however some indications of a detrimental effect on older persons’ health; but the magnitude of the effect is small. Our estimates are precise enough to rule out large effects of income inequality on health. |
| Keywords: | Income inequality; Immigration; Quasi-experiment |
| JEL: | I10 J15 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:nor:wpaper:2011017&r=ure |
| By: | Batstone, Chris; Moores, Jonathon; Semadeni-Davies, Annette; Green, Malcolm; Gadd, Jennifer; Harper, Sharleen |
| Abstract: | There is mounting evidence that urban development in New Zealand has contributed to poor water quality and ecological degradation of coastal and fresh water receiving waters. As a consequence, local governments have identified the need for improved methods to guide decision making to achieve improved outcomes for those receiving waters. This paper reports progress on a research programme to develop a catchmentscale spatial decision-support system (SDSS) that will aid evaluation of the impacts of urban development on attributes such as water and sediment quality; ecosystem health; and economic, social and cultural values. The SDSS aims to express indicators of impacts on these values within a sustainability indexing system in order to allow local governments to consider them holistically over planning timeframes of several decades. The SDSS will use a combination of deterministic and probabilistic methods to, firstly, estimate changes to environmental stressors such as contaminant loads from different land use and stormwater management scenarios and, secondly, use these results and information from a range of other sources to generate indicator values. This paper describes the projectâs approach to the derivation of indicators of economic and social well being associated with the effects of urban storm water run-off on freshwater and estuarine receiving waters. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar11:115349&r=ure |
| By: | Kazi Arif Uz Zaman (International University of Japan); Takahiro Akita (International University of Japan) |
| Abstract: | Using the 2005 Household Income and Expenditure Survey, this paper examined income inequality and poverty in Bangladesh with particular focus on their spatial dimensions. Since disparity among administrative divisions is small, inequalities within each administrative division, particularly urban inequality, need to be reduced. Since education appears to have played an important role in inequality, especially in urban areas, raising general educational level is essential. Since wages and salaries serve to have mitigated inequality, especially in urban areas, opportunities for formal income should be expanded. Though the effect may be small, transfer programs should be expanded to raise income among the poorest. In addition to raising general educational level, it is necessary to provide primary education throughout the country in order to mitigate poverty. It is imperative to raise agricultural productivity in both rural and urban sectors. Furthermore, non-agricultural activities should be promoted according to the pattern of comparative advantages. |
| Keywords: | Income Inequality, Poverty, Spatial Dimensions, Theil Index, Gini Coefficient, FGT Index, Bangladesh |
| JEL: | I3 O15 O18 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:iuj:wpaper:ems_2011_20&r=ure |
| By: | Enrico di Bella (DIEM, University of Genoa, Italy); Luca Persico (DIEM, University of Genoa, Italy); Matteo Corsi (Associazione Kallipolis, Trieste, Italy) |
| Abstract: | Although the connection between crime and urban layout is generally evident, surveys inquiring that relationship are often facing two different problems: areas with high criminality are often inhabited by partially elusive populations (being stowaways) and the urban structure (e.g. length and width of streets) quickly changes even after a few corners. In this work a combination of two techniques well known in their specific field is proposed to define a simple two-stages sampling design. Space Syntax is a set of measurements which are done on the topographic maps of a town with the division of all the roads into segments, called axes. Using multivariate techniques, these axes can be classified on the basis of a homogeneity criterion obtaining the strata for a two-stages sampling design |
| Keywords: | Factor Analysis, Geodetic networks, Street security surveys, Space Syntax, Urban axes |
| JEL: | O18 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:gea:wpaper:5/2011&r=ure |
| By: | Jinhwan Oh (International University of University) |
| Abstract: | Based on the spatially adapted Murphy, Shleifer, and Vishny (MSV) model, this paper reviews major concepts of the World Development Report 2009 - density, distance and division. It is argued that the concepts of poverty trap, and partial and complete industrialization in the model capture the stages of incipient (density), intermediate (distance), and advanced (division) urbanization, described in the report. In addition, the report explains the concepts of Critical Minimum Effort and the Critical Minimum Retreat through spatially blind, connective, and targeted policies, which are all appropriate policies for each stage of urbanization. Relevant Korean examples are provided. |
| Keywords: | Urbanization, Concentration, Congestion, Density, Distance, Division, Spatial Policies, Korea |
| JEL: | O14 O18 R11 R12 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:iuj:wpaper:ems_2011_14&r=ure |
| By: | Guglielmo Maria Caporale; Ricardo M. Souza |
| Abstract: | In this paper we use a representative consumer model to analyse the equilibrium relation between the transitory deviations from the common trend among consumption, aggregate wealth, and labour income, cay, and focus on the implications for both stock returns and housing returns. The evidence based on data for 15 OECD countries shows that when agents expect future stock returns to be higher, they will temporarily allow consumption to rise. Regarding housing returns, if housing assets are seen as complements to stocks, then investors react in the same way, but if they are instead treated as substitutes consumption will be temporarily reduced. |
| Keywords: | consumption, wealth, stock returns, housing returns, OECD countries |
| JEL: | E21 E44 D12 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1158&r=ure |
| By: | Carlo Gianelle (Department of Economics, University Of Venice Cà Foscari) |
| Abstract: | This essay investigates the network structure of inter-firm worker mobility in Veneto, an industrial region of Northern Italy, using comprehensive employer-employee matched data. The empirical network reveals a small world pattern that hinges critically upon a few hub firms. Main hubs are found to be: (1) long-established manufacturing companies; (2) wholesale companies; and (3) companies supplying workforce to third parties. The methodology of investigation provides a toolkit for monitoring labour market evolution, and should enable industry policies supporting labour reallocation mechanisms. |
| Keywords: | regional labour markets, worker reallocation, complex networks, small world, hub dependence |
| JEL: | D85 J63 R12 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2011_13&r=ure |
| By: | Kümpel, Arndt |
| Abstract: | The paper sketches the current ecological and economic context of sustainable regional development with focus on the imperative for change to a post carbon economy, the need for innovation within the learning system of public administration and policy challenges for securing system viability. |
| Keywords: | Sustainable regional development; innovation; state capacity |
| JEL: | O38 O43 B52 |
| Date: | 2011–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33966&r=ure |
| By: | Hyytia, Nina |
| Abstract: | Further coordination and coherence of the EU funds and policies has been increasingly called for, implying that the territorial perspectives should be included as a major element in the future policies. In this paper, CAP modulation is considered in a framework of a regional development such that it compares the effects on modulation funds first, as they are allocated as income subsidies to farm related, diversified economic activities and second, as they are channeled from agriculture to increased regional investment demand. A rural-urban Social Accounting Matrix is used as a base year data for the CGE-model. The results suggest that transferring CAP payments from actual agriculture as income support to diversified activity does not promote rural development and economic activity measured at the regional level. Accordingly, traditional agriculture seems to be able to exploit the subsidies more efficiently. On the contrary, the investment shocks resulted in positive total impacts in terms of the gross regional domestic product and regional employment. However, the positive GDP impacts were greater in the urban area, thus suggesting possible agglomeration development. |
| Keywords: | Agricultural and Food Policy, Community/Rural/Urban Development, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:114525&r=ure |
| By: | Falkowski, Jan |
| Abstract: | The âLEADER community initiativesâ and the âLEADER approachâ have been commonly accepted as an innovative way for development of rural areas in the EU. It is widely assumed that promoting growth in rural areas can be achieved through partnerships between representatives of three classes of local actors: civil society, public administration and private/economic sector. While these partnerships certainly have the potential to improve coordination mechanisms that manage local resources, their existence is likely to have an impact on the distribution of political advantages and future economic rents of current incumbents. What follows, it is reasonable to assume that local political elites may either block or impede the adoption of this institutional innovation. This paper investigates these issues using the Pilot Programme LEADER+ experiences in Poland. The focus is on institutional aspects that are thought to affect the electoral process. Consistent with a large body of political economy literature, our results suggest that LEADER-type partnerships are more likely to occur in an environment where holding politicians to account is easier. |
| Keywords: | political accountability, local government, rural development, Leader, Community/Rural/Urban Development, D72, D78, H77, O18, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:114365&r=ure |
| By: | José Ernesto Amoros; Christian Felzensztein; Eli Gimmon |
| Abstract: | Governmental policies tend to support and boost entrepreneurship in peripheral regions in many countries. This research revives the debate about specific regional policies designed to foster local new business creation, and the entrepreneurial framework conditions needed at the regional level for emerging regions such as Latin America. We applied one of the Global Entrepreneurship Monitor’s methodologies, the National Experts Survey, to a sample of 695 key informants in Chile at eight regions of which six are classified as peripheral. Using nonparametric statistics we compared the differences between peripheral and core regions. The main results indicate that peripherally located entrepreneurship experts perceive their regions as in a worse position than centrally located experts in terms of finance access and physical infrastructure. On the other hand, the results indicate that peripheral entrepreneurship experts detect more market dynamism in their regions and surprisingly perceive general policy and government programs as supporting entrepreneurship although the Chilean government had not promoted many regional policies. |
| Keywords: | Entrepreneurship framework conditions, Regional policy, Global Entrepreneurship Monitor, Chile, Entrepreneurship |
| JEL: | L26 O18 R58 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:gem:wpaper:1106&r=ure |
| By: | Parag A. Pathak (MIT); Tayfun Sönmez (Boston College) |
| Abstract: | In Fall 2009, officials from Chicago Public Schools changed their assignment mechanism for coveted spots at selective college preparatory high schools midstream. After asking about 14,000 applicants to submit their preferences for schools under one mechanism, the district asked them to re-submit their preferences under a new mechanism. Officials were concerned that "high-scoring kids were being rejected simply because of the order in which they listed their college prep preferences" under the abandoned mechanism. What is somewhat puzzling is that the new mechanism is also manipulable. This paper introduces a method to compare mechanisms based on their vulnerability to manipulation. Under our notion, the old mechanism is more manipulable than the new Chicago mechanism. Indeed, the old Chicago mechanism is at least as manipulable as any other plausible mechanism. A number of similar transitions between mechanisms took place in England after the widely popular Boston mechanism was ruled illegal in 2007. Our approach provides support for these and other recent policy changes involving matching mechanisms. |
| Keywords: | student assignment, Boston mechanism, matching, strategy-proofness |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:784&r=ure |
| By: | Gabriel Jiménez (Banco de España); Atif Mian (University of California Berkeley); José-Luis Peydró (ECB and UPF and Barcelona GSE); Jesús Saurina (Banco de España) |
| Abstract: | While banks may change their credit supply due to bank balance-sheet shocks (the local lending channel), firms can react by adjusting their sources of financing in equilibrium (the aggregate lending channel). We provide a methodology to identify the aggregate (firm-level) effects of the lending channel and estimate the impact of banks’ ability to securitize realestate assets on credit supply for non real-estate firms in Spain over 2000-2010. We show that firm-level equilibrium dynamics nullify the strong local (bank-level) lending channel of securitization on credit quantity for firms with multiple banking relationships. Credit terms however become softer, but there are no real effects. Securitization implies a credit expansion on the extensive margin towards first-time bank clients, which are more likely to default. Finally, the 2008 securitization collapse reverses the local lending channel. |
| Keywords: | Bank lending channel, credit supply, credit demand, macroprudential, real economy effects of finance, securitization |
| JEL: | G21 G28 G30 E44 E50 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:1124&r=ure |
| By: | Lusine Lusinyan; Luc Eyraud |
| Abstract: | In many countries the decentralization of spending responsibilities has outpaced the decentralization of revenue powers. Sub-national governments have then to rely on transfers from the center and borrowing to finance their spending. When this occurs, we find that the overall fiscal deficit tends to increase. This result is based on cross-country econometric evidence from OECD countries, and is particularly strong in the presence of regional disparities. Fiscal discipline can be strengthened by ensuring that sub-national taxing powers are adequate to meet spending obligations. |
| Keywords: | Cross country analysis , Economic models , Fiscal policy , Fiscal reforms , Governance , Government expenditures , OECD , Revenues , |
| Date: | 2011–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:11/226&r=ure |
| By: | Germà Bel (Faculty of Economics, University of Barcelona); Xavier Fageda (Faculty of Economics, University of Barcelona); Melania Mur (University of Zaragoza) |
| Abstract: | Intermunicipal cooperation is being increasingly adopted in various countries as a part of local service delivery reforms. This paper draws on survey data from Spain’s municipalities to examine the reasons underpinning the decisions of local governments to engage in intermunicipal cooperation and privatisation. Our empirical analysis indicates that small municipalities prefer to rely on cooperation for reducing costs, while their larger counterparts prefer to privatise the delivery of services. By cooperating, scale economies can be achieved with lower transaction costs and fewer concerns for competition than is the case via private production. |
| Keywords: | Privatization, cooperation, solid waste JEL classification:L33, R51, H72 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201118&r=ure |
| By: | Simplice A., Asongu |
| Abstract: | This paper examines how regionalization in the face of globalization has affected financial development in the context of banking system efficiency in Africa. Results which are robust to financial system efficiency and growth-led-finance nexus reveal that in the post-regionalization era: (1) UEMOA and CEMAC regional banks’ ability to finance credit by deposits has reduced; (2) financial institutions of COMESA have improved their capacity to fund openness related activities/projects with deposits; (3) increase in welfare has positively affected the intermediary role of banks; (4) globalization tends to be more detrimental to financial systems of ‘economic and monetary’ regions than to those of purely economic regions. As a policy implication, national and regional authorities should gain knowledge of the fact that with openness, the role of domestic and regional banks seems to lessen in the funding of openness related activities and projects. Much needs to be done on the improvement of infrastructure that curtails information asymmetry in the banking industry. |
| Keywords: | Globalization; Financial Development; Regional Integration; Panel; Africa |
| JEL: | O10 D60 A10 E40 P50 |
| Date: | 2011–09–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33901&r=ure |
| By: | G. Pignataro; G. Prarolo |
| Abstract: | This paper claims that the 2011 Italian referendum on nuclear power is taking shape as a clean laboratory for the measurement of one of the main aspects of the NIMBY (Not In My BackYard) issue. Since the citizens voted on the possibility for the government to set up new nuclear plants in well-known sites, we identify community preferences for their locations across Italian municipalities using the turnout rate. The Fukushima nuclear disaster that happened a few months before the referendum may have magnified negative attitudes toward nuclear power. Thus, taking into account regional and political features that may influence ideological aversion to nuclear power, we still find highly negative correlation between distance from nuclear sites and the turnout rate. |
| JEL: | D72 H41 Q48 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp784&r=ure |