|
on Urban and Real Estate Economics |
| By: | Kennedy, Gerard (Central Bank of Ireland); McIndoe Calder, Tara (Central Bank of Ireland) |
| Abstract: | This paper uses loan-level data from the residential mortgage books of four Irish credit institutions, as at December 2010. The focus of the paper, is to provide an overview of the structure and condition of these housing loan books. This includes a description of borrower categories, interest rate profiles, repayment structures, property types, arrears accruals and the regional distributions of these loan and borrower characteristics across Ireland. Because it is possible to secure more than one loan on an individual house, we distinguish the number of properties underlying the residential mortgage book. Additionally we combine the data with house price data in order to generate estimates on the amount of housing equity in the Irish mortgage market. We focus on the properties in negative equity, in particular. Our findings suggest that approximately 31 per cent of mortgaged properties, representing over 47 per cent of the mortgage books’ outstanding loan balances were in negative equity at the end of 2010. Of the mortgaged properties in negative equity, 8 per cent had also accrued more than three months worth of arrears on their mortgage loans. |
| Keywords: | Credit, Asset Pricing, Banks, Mortgages, Regional Economic Activity, Size and Spatial Distributions of Regional Economic Activity, Housing Demand, Housing Supply and Markets |
| JEL: | G01 G12 G21 R11 R12 R21 R31 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:cbi:wpaper:12/rt/11&r=ure |
| By: | Adelheid Holl; Rafael Pardo; Ruth Rama |
| Abstract: | In this paper we study the spatial pattern of Just-in-Time (JIT) adoption for a sample of medium-sized and large Spanish manufacturing firms. The recent literature has shown that location plays a significant role in the adoption of advanced technologies. We argue that the particular role location characteristics play for technology adoption depends on the type of technology. JIT differs from other advanced manufacturing technologies because it relates directly to the spatial coordination of a firms’ internal production organisation with its external productive environment and depends on the quality of the transport system. Our results confirm the distinctive role of location for JIT adoption even after controlling for industry and plant-specific differences. We find that JIT adoption is greater in smaller cities but with higher accessibility indicating that urban congestion in larger urban areas likely reduces the benefits that firms may obtain from JIT implementation. |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipp:wpaper:1101&r=ure |
| By: | Richard Harris |
| Abstract: | Because segregation is the spatial outcome of spatial processes is makes sense to measure it in spatially intelligent ways. To that end, this paper applies innovative methods of geocomputation with particular emphasis on local indices of ethnic segregation to examine the claim that London’s schools are “sleepwalking towards Johannesburg.” It does so by looking at the flows of pupils from primary to secondary schools, using them to analyse the spatial patterns that form in the distribution of ethnic groups between schools, and to determine the geographies of competition between schools. Those geographies are codified in the form of a spatial weights matrix to compare any school with its average competitor, giving a local index of segregation. The paper finds that although there is ‘segregation’ in the sense that the distribution of the ethnic groups differs from randomness, from a nearest school assignment and with some substantial differences between locally competing schools, the evidence, focusing on the Black African and Bangladeshi groups, is not that ethnic segregation is increasing but fluctuating with demographic changes over the period 2003 to 2008/9 |
| Keywords: | ethnic segregation, London, secondary schools |
| JEL: | I28 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:bri:cmpowp:11/275&r=ure |
| By: | Arauzo Carod, Josep Maria |
| Abstract: | This paper is about the role played by stock of human capital on location decisions of new manufacturing plants. We analyse the effect of several skill levels (from basic school to PhD) on decisions about the location of plants in various industries and, therefore, of different technological levels. We also test whether spatial aggregation level biases the results and determine the most appropriate areas to be considered in analyses of these phenomena. Our main statistical source is the Register of Manufacturing Establishments of Catalonia (REIC), which has plant-level microdata on the locations of new manufacturing plants. Keywords: agglomeration economies, industrial location, human capital, count-data models, spatial econometrics. |
| Keywords: | Localització industrial, Recursos humans, Anàlisi espacial (Estadística), 332 - Economia regional i territorial. Economia del sòl i de la vivenda, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/152136&r=ure |
| By: | Ahmed, Sofia |
| Abstract: | Generally, econometric studies on socio-economic inequalities consider regions as independent entities, ignoring the likely possibility of spatial interaction between them. This interaction may cause spatial dependency or clustering, which is referred to as spatial autocorrelation. This paper analyzes for the first time, the spatial clustering of income, income inequality, education, human development, and growth by employing spatial exploratory data analysis (ESDA) techniques to data on 98 Pakistani districts. By detecting outliers and clusters, ESDA allows policy makers to focus on the geography of socio-economic regional characteristics. Global and local measures of spatial autocorrelation have been computed using the Moran’s I and the Geary’s C index to obtain estimates of the spatial autocorrelation of spatial disparities across districts. The overall finding is that the distribution of district wise income inequality, income, education attainment, growth, and development levels, exhibits a significant tendency for socio-economic inequalities and human development levels to cluster in Pakistan (i.e. the presence of spatial autocorrelation is confirmed). |
| Keywords: | Spatial effects; spatial exploratory analysis; spatial disparities; income inequality; education inequality; spatial autocorrelation |
| JEL: | D31 O15 I21 O50 C21 R11 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35062&r=ure |
| By: | Roberto Basile; Alessandro Girardi; Marianna Mantuano; Francesco Pastore |
| Abstract: | Using local labour systems data, this work aims at assessing the effects of sectoral shifts and industry specialisation patterns on regional unemployment in Italy over the years 2004-2008, when huge worker reallocation caused by changes in the international division of labour occurred. Italy represents an interesting case study because of the high degree of spatial heterogeneity in local labour market performance and the well-known north-south divide. Furthermore, the presence of strongly specialised local labour systems (industrial districts) allows us to test whether industrial districts perform better than highly diversified urban areas thanks to the effect of agglomeration economies, or vice versa. Building on a semiparametric spatial autoregressive framework, our empirical investigation documents that sectoral shifts and the degree of specialisation exert a negative effect on unemployment dynamics. By contrast, highly diversified areas turn out to be characterised by better labour market performances. |
| Date: | 2011–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2011:i:411&r=ure |
| By: | Liviano Solís, Daniel; Arauzo Carod, Josep Maria |
| Abstract: | This paper tries to resolve some of the main shortcomings in the empirical literature of location decisions for new plants, i.e. spatial effects and overdispersion. Spatial effects are omnipresent, being a source of overdispersion in the data as well as a factor shaping the functional relationship between the variables that explain a firm’s location decisions. Using Count Data models, empirical researchers have dealt with overdispersion and excess zeros by developments of the Poisson regression model. This study aims to take this a step further, by adopting Bayesian methods and models in order to tackle the excess of zeros, spatial and non-spatial overdispersion and spatial dependence simultaneously. Data for Catalonia is used and location determinants are analysed to that end. The results show that spatial effects are determinant. Additionally, overdispersion is descomposed into an unstructured iid effect and a spatially structured effect. Keywords: Bayesian Analysis, Spatial Models, Firm Location. JEL Classification: C11, C21, R30. |
| Keywords: | Localització industrial, Anàlisi espacial (Estadística), Estadística bayesiana, 332 - Economia regional i territorial. Economia del sòl i de la vivenda, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/152137&r=ure |
| By: | Grimes, Arthur (Motu Economic and Public Policy Research Trust); Stillman, Steven (University of Otago); Young, Chris (Motu Economic and Public Policy Research Trust) |
| Abstract: | We use New Zealand school board of trustees data to examine whether schools where parents have high rates of homeownership experience high parental voting turnout in elections. We also investigate whether homeownership influences the probability that a school board proceeds to election, indicating parental willingness to serve as a school trustee. Similarly, we examine whether state-owned social housing rates affect these outcomes. We compile results initially without controlling for other factors, and then controlling for a wide range of other characteristics, to test the robustness of simple observed associations between homeownership and state-ownership rates and outcome variables. Our findings show no discernible effect of homeownership on parental voting turnout in school elections after controls are added (contrary to the simple positive association), but a (robust) positive impact of both homeownership and state-ownership rates on the probability that a school holds an election. |
| Keywords: | homeownership, school elections, parental voice, social capital |
| JEL: | I28 R23 Z13 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6168&r=ure |
| By: | Cobb-Clark, Deborah A. (University of Melbourne); Sinning, Mathias (Australian National University); Stillman, Steven (University of Otago) |
| Abstract: | We use 2009 Programme of International Student Assessment (PISA) data to link institutional arrangements in OECD countries to the disparity in reading, math, and science test scores for migrant and native-born students. We find that achievement gaps are larger for those migrant youths who arrive later and for those who do not speak the test language at home. Institutional arrangements often serve to mitigate the achievement gaps of some migrant students while leaving unaffected or exacerbating those of others. For example, earlier school starting ages help migrant youths in some cases, but by no means in all. Limited tracking on ability appears beneficial for migrants' relative achievement, while complete tracking and a large private school sector appear detrimental. Migrant students' achievement relative to their native-born peers suffers as educational spending and teachers' salaries increase, but is improved when examination is a component of the process for evaluating teachers. |
| Keywords: | migrant youths, PISA test scores, schools, institutions, academic achievement |
| JEL: | F22 I24 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6150&r=ure |
| By: | Manning, Alan (London School of Economics); Petrongolo, Barbara (London School of Economics) |
| Abstract: | This paper uses data on very small UK geographies to investigate the effective size of local labor markets. Our approach treats geographic space as continuous, as opposed to a collection of non-overlapping administrative units, thus avoiding problems of mismeasurement of local labor markets encountered in previous work. We develop a theory of job search across space that allows us to estimate a matching process with a very large number of areas. Estimates of this model show that the cost of distance is relatively high – the utility of being offered a job decays at exponential rate around 0.3 with distance (in km) to the job – so that labor markets are indeed quite 'local'. Also, workers are discouraged from applying to jobs in areas where they expect relatively strong competition from other jobseekers. The estimated model replicates fairly accurately actual commuting patterns across neighbourhoods, although it tends to underpredict the proportion of individuals who live and work in the same ward. Finally, we find that, despite the fact that labor markets are relatively 'local', local development policies are fairly ineffective in raising the local unemployment outflow, because labor markets overlap, and the associated ripple effects in applications largely dilute the impact of local stimulus across space. |
| Keywords: | job search, local labor markets, location-based policies, ripple effects |
| JEL: | J61 J63 J64 R12 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6178&r=ure |
| By: | Berliant, Marcus; Peng, Shin-Kun; Wang, Ping |
| Abstract: | This paper demonstrates that a pollution tax with a fixed cost component may lead, by itself, to segregation between clean and dirty firms without heterogeneous preferences or increasing returns. We construct a simple model with two locations and two industries (clean and dirty) where pollution is a by-product of dirty good manufacturing. Under proper assumptions, a completely stratified configuration with all dirty firms clustering in one city emerges as the only equilibrium outcome when there is a fixed cost component of the pollution tax. Moreover, a stratified Pareto optimum can never be supported by a competitive spatial equilibrium with a linear pollution tax. To support such a stratified Pareto optimum, however, an effective but unconventional policy prescription is to redistribute the pollution tax revenue from the dirty to the clean city residents. |
| Keywords: | Pollution Tax; Agglomeration of Polluting Producers; Endogenous Stratification |
| JEL: | D62 R13 H23 |
| Date: | 2011–11–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:34982&r=ure |
| By: | Alexander Cotte Poveda |
| Abstract: | This paper analyses some determinants of urban violence in seven major Colombian cities. The empirical research is intended to explore variations in violence across these Colombian cities and the influence of these variations on Colombia´s economic development. In this study, several econometric data panel models and various estimate types are applied to control heterogeneity across the cities and to address endogeneity problems among the explanatory variables. The results show that education, poverty, inequality and the labour market are strong predictors of homicide rates in the seven Colombian cities. The results also demonstrate that city-level homicide rates depend on the city's level of development and the tendency of urban violence to persist over time. The findings thus demonstrate that factors such as inequality, poverty, education and the labour market influence urban violence, thereby generating negative effects on Colombia´s economic and social development. |
| Date: | 2011–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:col:000137:009151&r=ure |
| By: | Matteo Iacoviello (Federal Reserve Board); Marina Pavan (Universitat Jaume I & LEE) |
| Abstract: | We study housing and debt in a quantitative general equilibrium model. In the cross-section, the model matches the wealth distribution, the age pro?les of homeownership and mortgage debt, and the frequency of housing adjustment. In the time-series, the model matches the procyclicality and volatility of housing investment, and the procyclicality of mortgage debt. We use the model to conduct two experiments. First, we investigate the consequences of higher individual income risk and lower downpayments, and ?nd that these two changes can explain, in the model and in the data, the reduced volatility of housing investment, the reduced procyclicality of mortgage debt, and a small fraction of the reduced volatility of GDP. Second, we use the model to look at the behavior of housing investment and mortgage debt in an experiment that mimics the Great Recession: we ?nd that countercyclical ?nancial conditions can account for large drops in housing activity and mortgage debt when the economy is hit by large negative shocks. |
| Keywords: | Housing, Housing Investment, Mortgage Debt, Life-cycle Models, Income Risk, Homeownership, Precautionary Savings, Borrowing Constraints |
| JEL: | E22 E32 E44 E51 D92 R21 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:jau:wpaper:2011/4&r=ure |
| By: | Andrea Gauselmann; Philipp Marek |
| Abstract: | This paper analyses the impact of agglomeration effects, labour market conditions and other determinants on the location choice of MNEs in transition economies. We compare data from 33 regions in East Germany, the Czech Republic and Poland using a conditional logit model on a sample of 4,343 subsidiaries for the time period 2000-2010. The results show that agglomeration advantages, such as sectoral specialisation, a certain economic diversity as well as a region's economic and technological performance prove to be some of the most important pull factors for FDI in transition regions. In addition, the labour market factors prove to play an important role in the location of FDI. |
| Date: | 2011–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2011:i:412&r=ure |
| By: | Aldashev, Alisher; Dietz, Barbara |
| Abstract: | In this paper we analyze the determinants of interregional migration in Kazakhstan using quarterly panel data on region to region migration in 2008–2010. To the best of our knowledge this is the first study on interregional population flows in Central Asia. We find that migration is determined by economic factors, first of all income: People are more likely to leave regions where incomes are low and more likely to move to regions with a higher income level. Furthermore, mobility is larger between more populated regions. Distance has a strong negative impact on migration, indicating high migration related costs and risks. Assuming that high migration costs are caused by poor infrastructure, investments in public and social infrastructure should facilitate regional income convergence in Kazakhstan and improve living standards in depressed regions. |
| Keywords: | Interregional migration; Kazakhstan; Gravity model |
| JEL: | P36 J61 R23 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:34922&r=ure |
| By: | Antonella Mennella |
| Abstract: | This paper’s purpose is to show a new informal social networks interpretation, according to which social networks change their nature if they are located in social contexts where organised crime is relevant. Here the perusal of a social network is just a necessary condition to enter the labour market rather than a deliberate choice. Moreover this labour market is the ground where favouritisms and social and electoral consensus policies take place |
| Keywords: | social networks, organised crime, labour market |
| JEL: | D85 J64 K00 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:rtr:wpaper:0126&r=ure |
| By: | Richard Lang; Andreas Novy |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwsre:sre-disc-2011_02&r=ure |
| By: | S Bradley; G Migali; Jim Taylor |
| Abstract: | We evaluate the effect on test scores of a UK education reform which has increased <br/>funding of schools and encouraged their specialisation in particular subject areas, enhancing pupil choice and competition between schools. Using several data sets, we apply cross-sectional and difference-in-differences matching models, to confront issues of the choice of an appropriate control group and different forms of selection bias. We demonstrate a statistically significant causal effect of the specialist schools policy on test score outcomes. The duration of specialisation matters, and we consistently find that the longer a school has been specialist the larger is the impact on test scores. We finally disentangle the funding effect from a specialisation effect, and the latter occurs yielding relatively large improvements in test scores in particular subjects. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:908&r=ure |
| By: | Will Dobbie; Roland G. Fryer, Jr |
| Abstract: | Charter schools were developed, in part, to serve as an R&D engine for traditional public schools, resulting in a wide variety of school strategies and outcomes. In this paper, we collect unparalleled data on the inner-workings of 35 charter schools and correlate these data with credible estimates of each school's effectiveness. We find that traditionally collected input measures -- class size, per pupil expenditure, the fraction of teachers with no certification, and the fraction of teachers with an advanced degree -- are not correlated with school effectiveness. In stark contrast, we show that an index of five policies suggested by over forty years of qualitative research -- frequent teacher feedback, the use of data to guide instruction, high-dosage tutoring, increased instructional time, and high expectations -- explains approximately 50 percent of the variation in school effectiveness. Our results are robust to controls for three alternative theories of schooling: a model emphasizing the provision of wrap-around services, a model focused on teacher selection and retention, and the "No Excuses'' model of education. We conclude by showing that our index provides similar results in a separate sample of charter schools. |
| JEL: | I20 J10 J24 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17632&r=ure |
| By: | Díaz Serrano, Lluís; Raya, Josep Maria |
| Abstract: | In this paper, we investigate whether evidence of discriminatory treatment against immigrants in the Spanish mortgage market exists. More specifically, we test whether, ceteris paribus, immigrant borrowers tend to be charged with higher interest rates on their mortgages than their Spanish born counterparts. To do so, we use a unique dataset on granted mortgages that contains information not only regarding the conditions of the loan but also the socio-economic characteristics of the mortgagors. We observe that immigrants are systematically charged with higher interest rates. We apply the well known Oaxaca-Blinder decomposition to measure the extent to which this disparate treatment of lenders in mortgage pricing against immigrants is due to discrimination. Our results indicate that approximately two thirds of the gap in the interest rate between Spanish born and immigrant borrowers can be attributed to discriminatory treatment. Key words: Immigration, discrimination, mortgage pricing, housing market. JEL codes: R21, G21, J14 |
| Keywords: | Emigració i immigració, Discriminació, Préstecs hipotecaris, Oferta i demanda, Habitatge, 332 - Economia regional i territorial. Economia del sòl i de la vivenda, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/151811&r=ure |
| By: | J. Ignacio García-Pérez (Universidad Pablo de Olavide); Marisa Hidalgo-Hidalgo (Universidad Pablo de Olavide); J. Antonio Robles-Zurita (Universidad Pablo de Olavide) |
| Abstract: | Grade retention practices are at the forefront of the educational debate. In this paper, we use PISA 2009 data for Spain to measure the effect of grade retention on students’achievement. One important problem when analyzing this question is that school outcomes and the propensity to repeat a grade are likely to be determined simultaneously. We address this problem by estimating a Switching Regression Model. We find that grade retention has a negative impact on educational outcomes, but we confirm the importance of endogenous selection, which makes observed differences between repeaters and non-repeaters appear 14.6% lower than they actually are. The effect on PISA scores of repeating is much smaller (-10% of non-repeaters’average) than the counterfactual reduction that non-repeaters would suffer had they been retained as repeaters (-24% of their average). Furthermore, those who repeated a grade during primary education suffered more than those who repeated a grade of secondary school, although the effect of repeating at both times is, as expected, much larger. |
| Keywords: | Grade retention, educational scores, PISA |
| JEL: | D63 I28 J24 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2011/12/doc2011-37&r=ure |
| By: | Stephen Hammer; Lamia Kamal-Chaoui; Alexis Robert; Marissa Plouin |
| Abstract: | This report examines the current state of knowledge about green growth in cities and outlines the key research questions and protocols that will guide the OECD Green Cities programme. It builds the case for an urban green growth agenda by examining the economic and environmental conditions that have pushed the green growth agenda to the forefront of policy debate and assessing the critical role of cities in advancing green growth. Section 1 lays the context for the paper, examining why green growth is important and how it can be defined in an urban context. Section 2 focuses on policies and tools that enable the transition to green growth in cities. It concludes with a proposal for a policy framework for an urban green growth agenda that is based on a set of hypotheses of desirable economic scenarios. Section 3 examines the main challenges to advancing an urban green growth agenda. It explores the roles that multi-level governance, measuring and monitoring tools and finance must play in delivering green growth in cities. The report concludes with suggestions for future research, including recommendations on how national policymakers responsible for regional and urban policies can advance an urban green growth agenda. |
| Keywords: | sustainable development, government policy, planning, global warming, regional, regional economics, urban sustainability, territorial, cities, urban, green growth, climate |
| JEL: | O1 O3 Q1 Q2 Q3 Q4 Q5 R1 R4 R5 |
| Date: | 2011–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaab:2011/8-en&r=ure |
| By: | Zofío, José Luis (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.); Condeço-Melhorado, Ana M. (Departamento de Geografía Humana, Universidad Complutense de Madrid); Maroto-Sánchez, Andrés (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.); Gutiérrez, Javier (Departamento de Geografía Humana, Universidad Complutense de Madrid) |
| Abstract: | We use the economic theory approach to index numbers in order to improve the existing definitions and decompositions of generalized transport costs (GTCs), and thus to obtain a better understanding of their economic and infrastructure determinants. Using this approach we accurately measure the contribution made to reducing GTCs by the variation in operating costs and accessibility variables, and discuss to what extent transportation policy has been successful in reducing GTCs in terms of market competition and infrastructure investments. To implement the optimizing behaviour of transportation firms when choosing minimum cost itineraries, we compile a new economic database on road freight transportation at a highly detailed provincial level, which is then embedded into a GIS to show the digitalized road networks corresponding to five-year intervals between 1980 and 2007. Average GTCs weighted by trade flows have decreased by -16.3% in Spain, with infrastructure policy leading the way in providing notable accessibility improvements in terms of lower times and distances. The contribution of infrastructure is double that of economic cost, whose trends are mainly driven by technological and market determinants rather than by specific competition and regulatory policies promoted by the administrations. We find large territorial disparities in GTC levels and variations, but also significant clusters where the market and network effects on GTC reduction show relevant and diverse degrees of spatial association. We finally conclude that after three decades of active transportation policy aimed mainly at intensifying investment in road infrastructure, there has been a significant increase in territorial cohesion in terms of GTCs and their components. |
| Keywords: | Generalized transport costs; Index number theory; Infrastructure; GIS; Territorial cohesion. |
| JEL: | C43 H54 L92 R58 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:uam:wpaper:201106&r=ure |
| By: | Jorge De la Roca (CEMFI and IMDEA Social Sciences Institute) |
| Abstract: | This paper investigates the sorting of more productive workers into denser cities using administrative data for Spain that follow individuals continuously throughout their working lives. Migrants who move to denser cities are positively selected in terms of education, occupational skills, and individual productivity as proxied by premigration position in the local earnings distribution. However, not everyone is able to benefit equally from denser cities and this leads to a second round of sorting. Returnees are not only exante less productive than permanent migrants, but are also those who, following the first move, have least boosted up their earnings in denser cities. |
| Keywords: | selection; urban migration; return migration; skill sorting |
| JEL: | J61 R10 R23 |
| Date: | 2011–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:imd:wpaper:wp2011-21&r=ure |
| By: | Lydon, Reamonn (Central Bank of Ireland); McCarthy, Yvonne (Central Bank of Ireland) |
| Abstract: | This paper presents a comprehensive analysis of Irish mortgage arrears using a new loan-level dataset which incorporates data from four Irish banks. We identify the main characteristics of accounts in arrears and examine the role of ability-to-pay and equity factors in the recent hike in mortgage delinquency rates. We find that borrowers who took out their mortgage for buy-to-let purposes, those with high loan-to-value ratios and those with high repayment burdens are all more likely to be in arrears. This is also the case for borrowers with properties in regions that have suffered more severe economic shocks, as proxied for by changes in the regional unemployment rate. Our empirical analysis suggests that affordability issues and general macroeconomic developments have had an important and sizeable effect on arrears trends over time, suggesting that policy efforts to target the growing level of mortgage arrears need to take account of these issues. |
| Keywords: | Debt, Mortgage Delinquency, Arrears, Default |
| JEL: | D14 G21 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:cbi:wpaper:14/rt/11&r=ure |
| By: | Kauder, Björn |
| Abstract: | This book analyzes the role of institutions in public finance, focusing on the issues of revenue forecasting and the spatial administrative structure of municipalities. Chapter 2 analyzes the international differences in forecasting practices and shows that forecasting performance depends on the institutional arrangement. The performance turns out to improve with the degree of independence, but also hinges on the timing of the forecast. Chapter 3 looks into revenue forecasting in Germany and widely confirms the unbiasedness and efficiency of the forecasts. Only with regard to tax law changes and the term of office there appears to be some room to improve the forecasts. In Chapter 4 we turn to local policies and provide evidence how the design of borders impacts on local tax policy. Both the number of competitors and the size of a core city in its agglomeration prove important. Chapter 5 analyzes the effects of reforms of spatial administrative structures. Considering the reforms in Germany in the 1960s and 1970s, we show that incorporated surrounding municipalities of core cities perform better in terms of population growth than comparable municipalities that have remained independent. |
| Keywords: | Revenue Forecasting; International Comparison; Spatial Administrative Structure; Local Tax Competition; Population Growth |
| Date: | 2011–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:dissen:13683&r=ure |
| By: | Alessio Moro (University of Cagliari); Galo Nuño (Banco de España) |
| Abstract: | Housing prices diverge from construction prices after 1997 in four major countries. Besides, TFP differences between construction and the general economy account for the evolution of construction prices in the U.S. and Germany, but not in the U.K. and Spain. |
| Keywords: | Housing prices, TFP, growth accounting, Cobb-Douglas |
| JEL: | E01 E23 E25 E32 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:1133&r=ure |
| By: | Gorecki, Paul; Hennessy, Hugh; Lyons, Sean |
| Abstract: | This paper examines how local government planning regulations and charges affect the deployment of telecommunications infrastructure. We explore the economic rationale for local government regulation of such infrastructure, which we suggest should be based on managing negative externalities. Using data from Ireland, we find that the observed geographical pattern of impact fees is inconsistent with the economic rationale for them. A simple econometric model of the number of telecoms masts in each country also suggests that the level of impact fees is negatively associated with mast deployment. This paper also examines other regulatory factors that affect the provision of new infrastructure. We find wide regional variation in these regulations but are unableto quantify their impact on infrastructure provision. Such regulatory complexity places extra compliance burdens on private operators, which may in turn distort the level and regional pattern of network investment. We suggest further regional harmonisation of development policy towards telecoms infrastructure to avoid exacerbating regional disparities in rollout of services. -- |
| Keywords: | Land use regulation,telecommunications infrastructure investment,impact fees |
| JEL: | H71 L96 R38 R52 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse11:52160&r=ure |
| By: | Caroline Dewilde (Department of Sociology and Anthropology , Universiteit van Amsterdam) |
| Abstract: | In this paper, I argue that our understanding of the increase in economic inequality in advanced welfare democracies could be enhanced by taking account of the changes which took place in the housing regimes of many countries. I demonstrate how one could derive testable hypotheses concerning a direct relationship between both social trends, which can at least theoretically go in both directions (i.e. changing housing regimes influencing inequality trends, or inequality trends influencing characteristics of housing regimes), while the ‘classical’ driving forces of increasing inequalities function as intermediate variables in a multivariate model. Alternatively, a simple interaction model could guide future research, in the sense that social trends which are routinely considered as ‘driving forces’ of increasing economic inequality – but altogether do not explain that much of the observed long-term trend – could theoretically work out in a different way under different housing regimes. |
| Keywords: | income inequality trends, housing regimes, homeownership, social inequality |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:aia:ginidp:dp18&r=ure |
| By: | Tom Coupe (Kyiv School of Economics, Kyiv Economic Institute); Anna Olefir (World Bank); Juan Diego Alonso (World Bank) |
| Abstract: | Using a rich data set of almost the entire population of Ukrainian secondary schools, the authors estimatethe effect of school size and class size on the performance of secondary schools on Ukraine's External Independent Test. They find that larger schools tend to have somewhat better performance, both in terms of test scores and in terms of test participation. The size of this effect is relatively small, however, especially in rural areas for which the estimates are likely to be more clean estimates. Class size is found to be insignificant in most specifications and, if significant, of negligible size. |
| Keywords: | Tertiary Education, Secondary Education, Teaching and Learning, Education For All, Primary Education |
| JEL: | I28 I29 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:kse:dpaper:44&r=ure |
| By: | Khan, Rana Ejaz Ali; Raza, Maryam |
| Abstract: | Government of Punjab is committed to attain the universalization of school education by providing free education and even in a number of districts the free books and through the programs of food for education. The stipends on the subsidized schooling are also part of the policy by Government of Punjab. The rapid increase in enrolment in private schools reflects the partial failure of these schemes and making the target of universalization of school education difficult. The paper examines the household choice of private versus public sector schools as an outcome of child, household and school characteristics by using logit model. Data has been collected from Bahawalpur city through stratified sampling of clusters and random sampling of households. A survey of 627 households having at least one school-going child made the data available. The study found that income of the household, education of the parents, English as medium of instruction in school and distance of public school from the household enhance the preference of private schools. To universalize the school education more public sector schools are required near to the households. The adaptation of English as medium of instruction may increase the school enrolment. |
| Keywords: | School Choice; Private Schools; Public sector schools; education; cost of schooling; Pakistan |
| JEL: | O15 I21 D1 R2 |
| Date: | 2011–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:34794&r=ure |
| By: | Simon Burgess; Eleanor Sanderson; Marcela Umana-Aponte |
| Abstract: | Homophily is the tendency to establish relationships among people who share similar characteristics or attributes. This study presents evidence of homophilic behaviour for an adolescent friendship network of 6,961 links in the West of England. We control for unobserved characteristics by estimating school and individual fixed effects and present evidence on the role of length and closeness of friendships on the degree of homophily. We also exploit the dynamics of the friendship by comparing similarities among existing and future friends. Results indicate that academic achievement, personality, educational aspirations, bad behaviour and mother’s education are essential in the friendship formation process. However, income and parents’ occupational class proved to be insignificant. We also show that the degree of homophily among friends selected from a random process is much lower than that of the observed friendships. |
| Keywords: | Networks, Homophily, Segregation, Friendships, Adolescents |
| JEL: | L14 C33 D83 Z13 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:bri:cmpowp:11/267&r=ure |
| By: | Robert Metcalfe; Simon Burgess; Steven Proud |
| Abstract: | We use a sharp, exogenous and repeated change in the value of leisure to identify the impact of student effort on educational achievement. The treatment arises from the partial overlap of the world’s major international football tournaments with the exam period in England. Our data enable a clean difference-in-difference design. Performance is measured using the high-stakes tests that all students take at the end of compulsory schooling. We find a strongly significant effect: the average impact of a fall in effort is 0.12 SDs of student performance, significantly larger for male and disadvantaged students, as high as many educational policies. |
| Keywords: | student effort, educational achievement, schools |
| JEL: | I20 J24 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:bri:cmpowp:11/276&r=ure |
| By: | Fabio Fiorillo; Agnese Sacchi |
| Abstract: | We hereby propose a model to analyze the provision of environmental protection activities (United Nation 2005) with positive interregional externalities in order to verify - at least in theory - whether this kind of policy is better accomplished through centralized policymaking, which implies a coordinated solution among local representatives, or a decentralized system, whereby local authorities independently finance and implement their environmental protection policy. The research question concerns the identification of criteria on how to allocate powers and functions to environmental management at different tiers of government. Moreover, modelling interregional externalities as a mechanism contributing to lowering the cost of financing environmental policy in each region (production externality), we can assume that different environmental policies are allowed across regions. Given this general framework, considerations favouring either institutional setting in terms of individuals’ welfare seem to involve interaction among these key elements: the extent of the inter-jurisdictional spillovers, the size of local jurisdictions and the regional preferences for environmental protection policy. |
| Keywords: | Environmental protection activities; Environmental federalism; Externalities; Local government |
| JEL: | H71 H73 H23 Q58 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:rtr:wpaper:0131&r=ure |
| By: | Matteo Bobba (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 - INRA, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Jérémie Gignoux (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 - INRA, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris) |
| Abstract: | This paper considers a conditional cash transfer program targeting poor households in small rural villages and studies the effects of the geographic proximity between villages on individual enrollment decisions. Exploiting variations in the treatment status across contiguous villages generated by the randomized evaluation design, the paper finds that the additional effect stemming from the local density of neighboring recipients amounts to roughly one third of the direct effect of program receipt. Importantly, these spatial externalities are concentrated among children from beneficiary households. This suggests that the intervention has enhanced educational aspirations by triggering social interactions among the targeted population. |
| Keywords: | Spatial externalities ; Social interactions ; Peer effects ; Conditional cash transfers |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-00646590&r=ure |
| By: | Bratsberg, Bernt (Ragnar Frisch Centre for Economic Research); Raaum, Oddbjørn (Ragnar Frisch Centre for Economic Research); Røed, Knut (Ragnar Frisch Centre for Economic Research) |
| Abstract: | Children of immigrant parents constitute a growing share of school cohorts in many OECD countries, and their educational performance is vital for successful social and economic integration. This paper examines educational outcomes of first and second generation non- OECD immigrants in Norway. We show that children of immigrants, and particularly those born outside Norway, are much more likely to leave school early than native children. Importantly, this gap shrunk sharply over the past two decades and second generation immigrants are now rapidly catching up with the educational performance of natives. For childhood immigrants, upper secondary completion rates decline with age at arrival, with a particularly steep gradient after age seven. Finally, we find that immigrant-native attainment gaps disappear when we condition on grade points from compulsory school. |
| Keywords: | immigrant children, educational attainment, school performance |
| JEL: | J15 I21 I24 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6138&r=ure |
| By: | Matthias Duschl (Department of Geography, Philipps University Marburg); Thomas Brenner (Department of Geography, Philipps University Marburg) |
| Abstract: | Regional growth dynamics significantly deviate from a normal process. Using industry-specific employment data for German regions, we find that the asymmetric Subbotin distribution is able to account properly for extreme positive and especially negative growth events. This result confirms previous studies on growth rates of firms and countries and fills an important research gap at the meso-level of regions. Furthermore, we show that regional growth patterns emerge to a considerable degree from the aggregation of micro-level firm growth rates distributions and that the knowledge intensity of the respective industries increases the regions’ risk of being effected by extreme growth events. |
| Keywords: | regional employment growth, stochastic characteristics, asymmetric Subbotin distribution, extreme negative growth events |
| JEL: | C46 C50 R11 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:pum:wpaper:2011-07&r=ure |
| By: | Agnese Sacchi; Simone Salotti |
| Abstract: | In this paper we investigate the interactions among fiscal decentralization, income inequality and regional disparities, using a sample of 23 OECD countries over the period 1971-2000. We first explore the effects of fiscal decentralization on overall income inequality. We then test whether regional economic disparities influence the fiscal decentralization process. We use novel and robust measures of fiscal decentralization based on differences in the degree of both expenditure and tax autonomy. We also conduct several robustness checks to tackle the potential endogeneity and reverse causality issues. Our results highlight the importance both of the nature of fiscal decentralization – expenditure versus taxation – and of the extent to which responsibility and decision powers are really left to subcentral governaments. While a higher degree of tax decentralization is associated with higher overall income inequality within a country, high regional disparities seem to be correlated with lower expenditure decentralization. |
| Keywords: | tax decentralization, expenditure decentralization,regional economic disparities |
| JEL: | H70 H77 D31 R12 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:rtr:wpaper:0142&r=ure |
| By: | Adelheid Holl |
| Abstract: | Since the 1980’s Spain has developed an ambitious road building programme with the construction of approximately 12,000 kilometres of new motorways. This article analysis the factors related to the placement of these new motorways during two distinct planning periods from 1983 to 1993 and 1994 to 2004. |
| Keywords: | infrastructure, motorways, placement |
| JEL: | R42 R53 R58 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipp:wpaper:1105&r=ure |
| By: | Julia Lechner |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwsre:sre-disc-2011_04&r=ure |
| By: | Meschi, Elena (Università Ca’ Foscari di Venezia); Swaffield, Joanna (University of York); Vignoles, Anna (Institute of Education, University of London) |
| Abstract: | This paper assesses the relative importance of local labour market conditions and pupil educational attainment as primary determinants of the post-compulsory schooling decision. Using a nested logit model we formally incorporate the structured and sequential decision process pupils engage with. Our findings show that, on average, the key drivers of the schooling decision are pupil educational attainment and parental aspirations rather than local labour market conditions. However, there is some evidence that higher local unemployment rates encourage males to invest in education, and that interactions with educational attainment suggest local labour market conditions impact heterogeneously across the pupil population. |
| Keywords: | post-compulsory education, local labour markets, parental aspirations, educational attainment, nested logit |
| JEL: | I21 J18 J24 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6143&r=ure |
| By: | Rafael González-Val (Universitat de Barcelona & IEB); Jose Olmo (Centro Universitario de la Defensa & City University London) |
| Abstract: | This article analyzes empirically the main existing theories on income and population city growth: increasing returns to scale, locational fundamentals and random growth. To do this we implement a threshold nonlinearity test that extends standard linear growth regression models to a dataset on urban, climatological and macroeconomic variables on 1,175 U.S. cities. Our analysis reveals the existence of increasing returns when per-capita income levels are beyond $19; 264. Despite this, income growth is mostly explained by social and locational fundamentals. Population growth also exhibits two distinct equilibria determined by a threshold value of 116,300 inhabitants beyond which city population grows at a higher rate. Income and population growth do not go hand in hand, implying an optimal level of population beyond which income growth stagnates or deteriorates. |
| Keywords: | Threshold nonlinearity test, locational fundamentals, multiple equilibria, random growth |
| JEL: | C12 C13 C33 O1 R0 R11 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2011/12/doc2011-39&r=ure |
| By: | Stoetzer, Matthias-Wolfgang; Pfeil, Silko; Kaps, Katharina; Sauer, Thomas |
| Abstract: | In this paper, we analyze the relationships between different types of innovation and collaboration, given the varying geographical distance of the latter. The study is based on the data of the research project 'KompNet 2011 - Factors determining the success of regional innovation networks', which examines the innovation activities of small and medium-sized enterprises (SME) in and closely around Jena (Thuringia). The aim of this paper is to explore to what extent spatial reach of collaboration linkages determines innovation orientation and innovative behavior. That means: Innovation performance could be positively related to (a) to a high intensity of local collaboration, (b) the intensity of international collaboration or (c) neither regional nor (inter)national collaborations. In a first step we summarize the relevant literature which comprises aspects of our central subject under investigation. We additionally discuss the necessity of keeping in mind several control variables for theoretical and empirical reasons. In the following we present descriptive analyses relating to the regional reach of collaboration in general, the impact of collaboration on innovation and the links between the regional reach of cooperation and different forms of innovation, i.e. product, process, marketing and organizational innovation. In a final step we discuss the results of several regression models. We observe that there is no significant influence of the geographical variables on the innovative performance of SME. Therefore our findings suggest that innovative firms rely on collaboration partners at a variety of spatial distances. The results also show a significant and positive influence of the intensity of competition on the innovativeness of firms in all models. Furthermore product- and process innovations are created by firms with intensive cooperative activities to scientific institutions, while a wide variety of cooperation partners and a strong focus on quality leadership turns out to be important for the development of marketing- and organizational innovations. -- |
| Keywords: | cooperation,geographical reach,innovation,intensity of competition,marketing innovation,organizational innovation,process innovation,product innovation,quality leadership,regional dispersion,SME,spatial distance |
| JEL: | D85 L10 O31 R12 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fhjbwf:20114&r=ure |
| By: | Emanuela Marrocu; Raffaele Paci; Stefano Usai |
| Abstract: | The purpose of this paper is to analyse the effect of various proximity dimensions on the innovative capacity of 276 regions in Europe within a knowledge production function model, where R&D and human capital are included as the main internal inputs. We combine the standard geographical proximity with the institutional, technological, social and organizational ones to assess whether these externalities are substitutes or complements in channelling knowledge spillovers. Results show that all proximities have a significant complementary role in generating an important flow of knowledge across regions, with the technological closeness playing the most relevant role. |
| Keywords: | knowledge production; spillovers, proximity; human capital; weight matrix |
| JEL: | O31 R12 C31 O52 O18 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201121&r=ure |
| By: | Giorgio D'Agostino; Margherita Scarlato |
| Abstract: | This paper carries out an explanatory investigation into the relationship between socio-institutional conditions, quality of life indicators and economic growth in the Italian regions. Previous studies stress the importance of institutional quality, social capital and social conditions in determining disparities between richer and poorer regions. Building on this literature, we consider a three-sector model of semi-endogenous growth with negative externalities depending on structural and institutional factors that affect the innovative capacity of regional systems (the "social externalities hypothesis"). Simulations based on the scaled stationary system confirm that endogenous socio-economic conditions are crucial for the successful translation of innovation into economic growth. It is suggested that generating a development strategy designed to improve social conditions and well-being in the poorer regions may yield dividends in terms of the effectiveness of public policy and economic development |
| Keywords: | Development, Growth, Regional Disparities, Well-Being |
| JEL: | O10 O41 O30 R11 R58 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:rtr:wpaper:0138&r=ure |
| By: | Tsujita, Yuko |
| Abstract: | This paper examines the factors that prevent slum children aged 5 to 14 from gaining access to schooling in light of the worsening urban poverty and sizable increase in rural-to-urban migration. Bias against social disadvantage in terms of gender and caste is not clearly manifested in schooling, while migrated children are less likely to attend school. I argue that the lack of preparation for schooling in the pre-schooling ages and school admission procedures are the main obstacles for migrated children. The most important implication for universal elementary education in urban India is raising parental awareness and simplifying the admission procedures. |
| Keywords: | India, Elementary education, Slums, Household, Migration, Enrollment |
| JEL: | I20 N35 O15 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper317&r=ure |
| By: | Berliant, Marcus; Tabuchi, Takatoshi |
| Abstract: | We consider information aggregation in national and local elections when voters are mobile and might sort themselves into local districts. Using a standard model of private information for voters in elections in combination with a New Economic Geography model, agglomeration occurs for economic reasons whereas voter stratification occurs due to political preferences. We compare a national election, where full information equivalence is attained, with local elections in a three district model. A stable equilibrium accounting for both the economic and political sectors is shown to exist. Restricting to an example, we show that full information equivalence holds in only one of the three districts when transportation cost is low. The important comparative static is that full information equivalence is a casualty of free trade. When trade is more costly, people tend to agglomerate for economic reasons, resulting in full information equivalence in the political sector. Under free trade, people sort themselves into districts, most of which are polarized, resulting in no full information equivalence in these districts. We examine the implications of the model using data on corruption in the legislature of the state of Alabama and in the Japanese Diet. |
| Keywords: | information aggregation in elections; informative voting; new economic geography; local politics |
| JEL: | D82 D72 R12 |
| Date: | 2011–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35169&r=ure |
| By: | Grimes, Arthur (Motu Economic and Public Policy Research) |
| Abstract: | A transportation investment that materially improves links between centres opens up previously unavailable options for new activities. Traditional cost-benefit analysis does not adequately take account of the value of this option; real options theory must be added to the analysis to evaluate the full benefits. This paper uses a specific example, Auckland’s Harbour Bridge, to motivate the importance of real options analysis. Using illustrative, multi-period models of the real options problem, it highlights how inclusion of real options factors may either increase or decrease the attractiveness of a proposed investment. The models identify situations in which it is optimal to invest even where a standard benefit-cost ratio is less than one. |
| Keywords: | Transport investment; real options; cost-benefit analysis |
| JEL: | O18 H43 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:mtu:wpaper:11_12&r=ure |
| By: | Kelly, Robert (Central Bank of Ireland) |
| Abstract: | Using a uniquely constructed loan-level dataset of the residential mortgage book of Irish financial institutions, this paper provides a framework for estimating default probabilities of individual mortgages. In particular, the paper examines the progression of mortgages in arrears from 90 days to 360 days. This question is of major financial stability concern in an Irish context as the uncertainty concerning the quality of the loan books of the Irish financial institutions is due, in the main, to the perceived impaired nature of the residential mortgage book. Using this approach, default probabilities are shown to be “hump shaped” when conditioned on loan vintage, with loans originating between 2004 and 2006 are most likely to default. |
| Keywords: | Probability of Default, Mortgages, Irish Banking System |
| JEL: | G01 G12 G21 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:cbi:wpaper:13/rt/11&r=ure |
| By: | Ranganathan, Rupa; Foster, Vivien |
| Abstract: | Infrastructure improvements boosted growth in the Southern African Development Community (SADC) by 1.2 percentage points per capita per year during 1995-2005, mainly from access to mobile telephony. Road network improvements made small growth contributions, while power sector inadequacy had a negative impact. Infrastructure improvements that matched those of Mauritius, the regional leader, could boost regional growth performance by 3 percentage points. SADC's 15 member countries include small, isolated economies with island states, a mix of low- and middle-income countries, and larger countries with potentially large economies. The economic geography reinforces the importance of regional infrastructure development to create a larger market and greater economic opportunities. The region's infrastructure indicators are high for Africa. The regional road network is well-developed, and surface transport is comparatively cheap, but subject to delays and long-haul fees. An extensive railway system competes directly with road transport. With integration and improvements, SADC's ports could form an effective transshipment network. Air transport, dominated by South Africa, is the best in Africa. Electricity in southern Africa is well developed; the region leads Africa in generation capacity and low rates, but access is limited. ICT services are the most accessible among the regions, though expensive. Landlocked countries still need to be connected, and greater competition is needed to reduce costs. Completing and maintaining SADC's infrastructure will require $2.1 billion annually for a decade. For small countries, and large countries with small revenues, the burden may be insurmountable without external assistance. |
| Keywords: | Transport Economics Policy&Planning,Airports and Air Services,Infrastructure Economics,Transport and Trade Logistics,Roads&Highways |
| Date: | 2011–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5898&r=ure |
| By: | FUJITA Masahisa |
| Abstract: | In this paper, I explain Thünen's pioneering work on industrial agglomeration. In my opinion, Thünen's thinking on industrial agglomeration was not only amazingly advanced for his time, but in many respects remains novel even today. It is shown that if we unify Thünen's well-known theory on agricultural land use with this pioneering work on industrial agglomeration by using modern tools, then we essentially come up with a prototype of New Economic Geography model. |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:11074&r=ure |
| By: | Cooke, Philip (University of Wales) |
| Abstract: | Theoretical analysis of the relevance of the concept of path dependence for regional analysis has made progress. This has occurred on the spatial process (or regional paradigm)dimension of spatial evolution Progress has also occurred after further reflections on the roles of ‘conventions’ in understanding the ‘soft institutional’ dimension of regional regime formation and change. This adds considerably to the more common ‘institutions and organisations’ aspects of governance structures for innovation regarding the typical analytical content of regional regime and innovation system analysis. In this paper the concepts of ‘relatedness’ and ‘transversality’ capture the processes of knowledge recombination for innovation classically introduced by Schumpeter. Two live cases are presented whereby regional relatedness of industry regarding ‘green’ competences, on the one hand, and engineering and materials processing, on the other, have resulted in new clusters or cluster trajectories. The exemplar cases come from either end of Europe, Sweden, in the first instance, Italy in the second. Both clearly support the new ‘transversal’ theory of cluster emergence |
| Keywords: | Region; Maritime Clusters; Relatedness; Transversality |
| JEL: | A14 O33 R11 R58 |
| Date: | 2011–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:cieodp:2011_009&r=ure |
| By: | Carlsson, Magnus (Linnaeus University); Rooth, Dan-Olof (Linnaeus University) |
| Abstract: | The standard correspondence testing experiment does not identify whether employer prejudice drives discriminatory behavior when hiring. This article proposes a new methodology using geographic variation to explore the link between employer attitudes toward ethnic minorities and the ethnic difference in callbacks for a job interview. Using already existing Swedish data we find that a randomly selected employer is more likely to discriminate against a minority job applicant in regions where the average employer has more negative attitudes. |
| Keywords: | field experiments on hiring, employer discrimination, negative attitudes, regional variation |
| JEL: | J64 J71 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6153&r=ure |
| By: | FUKAO Kyoji; Victoria KRAVTSOVA; NAKAJIMA Kentaro |
| Abstract: | In this paper, geographical spillover potential is modeled and empirically examined using factory-level data from Japan's Census of Manufactures. First, the efficiency of each factory is estimated using a non-parametric data envelopment analysis (DEA) model for each industry. Second, the geographical distances to the most efficient factory in the prefecture and Japan overall are estimated. Third, the determinants of the factories' performance are identified and estimated. We find that clustering occurs in each industry, and efficient factories concentrate in certain regions. The percentage of efficient firms out of the total number of firms is particularly high in the Chubu and Tohoku regions. The estimation results also suggest that proximity to the most efficient factories plays a statistically significant role in determining the efficiency of factories in Japan in most industries. However, this is not the case in high-tech industries. |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:11076&r=ure |
| By: | Szîucs, Gábor |
| Abstract: | This paper deals with vehicular traffic management by communication technologies from Traffic Control Center point of view in road networks. The global goal is to manage the urban traffic by road traffic operations, controlling and interventional possibilities in order to minimize the traffic delays and stops and to improve traffic safety on the roads. This paper focuses on transient transport, when the controlling management is crucial. The aim was to detect the beginning time of the transient traffic on the roads, to gather the most appropriate data and to get reliable information for interventional suggestions. More reliable information can be created by information fusion, several fusion techniques are expounded in this paper. A half-automatic solution with Decision Support System has been developed to help with engineers in suggestions of interventions based on real time traffic data. The information fusion has benefits for Decision Support System: the complementary sensors may fill the gaps of one another, the system is able to detect the changing of the percentage of different vehicle types in traffic. An example of detection and interventional suggestion about transient traffic on transport networks of a little town is presented at the end of the paper. The novelty of this paper is the gathering of information - triggered by the state changing from stationer to transient - from ad hoc channels and combining them with information from developed regular channels. -- |
| Keywords: | information gathering,information fusion,Kalman filter,transient traffic,Decision Support System |
| JEL: | R40 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse11:52165&r=ure |
| By: | Almeida, Rita; Fernandes, Ana M. |
| Abstract: | This paper investigates whether the agglomeration of economic activity in regional clusters affects long-run manufacturing total factor productivity growth in an emerging market context. It explores a large firm-level panel dataset for Chile during a period characterized by high growth rates and rising regional income inequality (1992-2004). The findings are clear-cut. Locations with greater concentration of a particular sector did not experience faster growth in total factor productivity during this period. Rather, local sector diversity was associated with higher long-run growth in total factor productivity. However, there is no evidence that the diversity effect was driven by the local interaction with a set of suppliers and/or clients. The authors interpret this as evidence that agglomeration economies are driven by other factors, such as the sharing of access to specialized inputs not provided solely by a single sector, such as skills or financing. |
| Keywords: | Labor Policies,Economic Theory&Research,Economic Growth,Political Economy,Achieving Shared Growth |
| Date: | 2011–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5891&r=ure |
| By: | Ranganathan, Rupa; Foster, Vivien |
| Abstract: | Infrastructure improvements boosted growth in the Economic Community of West African States (ECOWAS) by one percentage point per capita per year during 1995-2005, primarily thanks to growth in information and communication technology. Deficient power infrastructure held growth back by 0.1 percent. Raising the region's infrastructure to the level of Mauritius could boost growth by 5 percentage points. Overall, infrastructure in the 15 ECOWAS countries ranks consistently behind southern Africa across many indicators. However, there is parity in access to household services -- water, sanitation, and power. ECOWAS has a well-developed regional road network, though sea corridors and ports need attention. Surface transport is expensive and slow, owing to cartelization, restrictive regulations, and delays. There is no regional rail network. Air transport has improved despite the lack of a strong hub-and-spoke structure. Safety remains a concern. Electrical power, the most expensive and least reliable in Africa, reaches 50 percent of the population but meets just 30 percent of demand. Regional power trading would bring substantial benefits if Guinea could become a hydropower exporter. Prices for critical ICT services are relatively high. Recent panregional initiatives have improved roaming. New projects are underway to provide access and improved services to unconnected countries. Completing and maintaining ECOWAS's infrastructure will require sustained spending of $1.5 billion annually for a decade, with one-third going to power. Although the necessary spending is only 1 percent of regional GDP, some countries'share is between 5 and 25 percent of national GDP. Clearly, external assistance will be needed. |
| Keywords: | Transport Economics Policy&Planning,Airports and Air Services,Infrastructure Economics,Transport and Trade Logistics,Roads&Highways |
| Date: | 2011–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5899&r=ure |
| By: | Wenying Fu; Javier Revilla Diez; Daniel Schiller |
| Abstract: | Governance constitutes elementary supportive infrastructure for regional innovation systems. This paper extends the evolutionary lens of governance into initial industrialization phase and examines the impact of their evolution into regional innovation systems on fostering innovation activities. Drawing on the empirical substances in Shenzhen and Dongguan, China, a path-dependent nature of institutional design on supporting innovation has been discovered. The paper shows that the dirigiste globalized production system in Shenzhen in 1980s has gradually evolved to a higher level of interactive regional innovation system than the grassroots globalized production system in Dongguan, where innovation is still passively managed by global players. Finally, policy implication is discussed for the construction of regional innovation systems under different governance modalities in the initial industrialization phase. |
| Keywords: | ego-networks, geographical proximity, innovation performance, knowledge networks, technological relatedness |
| JEL: | B15 R11 R12 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1119&r=ure |
| By: | María Jesus Herrerias (Université de la Méditerranée Aix Marseille II, GREQAM); Javier Ordóñez (Department of Economics, Universitat Jaume I (Castellón, Spain)) |
| Abstract: | A new panel method is applied to the case of Chinese provinces to analyze the existence of club convergence in terms of per capita income, labor productivity, capital intensity, and total factor productivity from 1952 to 2008. The advantage of this approach is that it takes into account the heterogeneity of Chinese regions in a nonlinear time-varying framework, where more attention is paid to the spatial dimension. This time-varying approach outperforms other methods used in the relevant literature for an economy in transition, such as China, that has undergone a significant transformation over the period under consideration. Our results indicate that Chinese regions have converged into clubs. However, it is observed that Heilongjiang is diverging in terms of labor productivity and capital intensity, while Liaoning and Guizhou display similar patterns in terms of labor productivity, and Shanxi and Hebei in terms of capital intensity. These results indicate that specific economic packages need to be implemented in the clusters that were identified, with special attention to those regions that show a divergence behavior, in order to guarantee the sustainability and equality of regional growth. |
| Keywords: | Endogenous Unit Root Test, Club Convergence, Chinese regions |
| JEL: | C20 O18 O40 R11 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:jau:wpaper:2011/7&r=ure |
| By: | Koen Frenken; Elena Cefis; Erik Stam |
| Abstract: | We review the literature on clusters and their effects on industrial dynamics as well on various lifecycle dynamics underlying the process of cluster formation and cluster dynamics. The review shows that there is little evidence that clusters enhance firm growth and survival. In the absence of localization economies, the emergence of clusters is best understood as an evolutionary process of capability transmission between parents firms and their spinoffs. We discuss various future research avenues and call for theorising based on firm heterogeneity as well as empirical research based on common methodological standards. |
| Keywords: | entry, exit, cluster, localization economies, lifecycle, firm heterogeneity |
| JEL: | L10 L20 R10 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:tuecis:wpaper:1107&r=ure |
| By: | Simon Burgess; Marcela Umaña-Aponte |
| Abstract: | We use a unique longitudinal dataset on an adolescent friendship network to evaluate variations on educational aspirations of young people from disadvantaged and middle income backgrounds. We evaluate whether such people who have friends from wealthier backgrounds have higher aspirations than otherwise similar young people without such links. The results suggest that there are such effects. Individuals from low income families with friends from high income families are 15.2% more likely to expect to stay in full time education after they finish compulsory school. We find similar effects for the educational aspirations and expectations of middle income children. These effects are quantitatively and statistically significant, and robust to the inclusion of a wide range of control variables. We also show that friend’s mother’s aspirations matter too. Having friends whose mothers hope they will go to university increases the wish to carry on full time education by 30% points. This is conditional on the young person’s own mother’s aspirations for her/him. |
| Keywords: | Networks, Friendships, Aspirations, Adolescents, Income, Education. |
| JEL: | L14 C33 I24 Z13 I3 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:bri:cmpowp:11/271&r=ure |
| By: | Porter, Julie (Cardiff University) |
| Abstract: | The Deepwater Horizon oil spill dumped almost 5 million barrels of oil into the Gulf of Mexico over a three month period in 2010. This event had a significant economic impact (which compounded the recession effect) on the surrounding regions particularly those with a large marine industry presence. This paper seeks to address the issues that have arisen over the past year as a result of the oil spill, focusing on the capacity of the regional economy to respond to the exogenous shocks of mass pollution and global recession while highlighting any economic recovery efforts as well as any tensions created. To represent both the region and the industry, the coastal tourism and fishing clusters in Southern Louisiana will be used as case studies. Through the analysis of socioeconomic data and secondary source material, including historic economic recovery accounts in the region post-Hurricane Katrina, these issues will be assessed. Recommendations will be made regarding the recovery process which will take into account US government policy |
| Keywords: | Resilience; Maritime Cluster; Deepwater Horizon; Path Dependence |
| JEL: | O18 |
| Date: | 2011–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:cieodp:2011_012&r=ure |
| By: | Campbell, Douglas L.; Pyun, Ju Hyun |
| Abstract: | Why are some peoples still poor? Recent research suggests the possibility that some societies may be poor due to their genetic endowments, which are found to be a significant predictor of development even after controlling for an ostensibly exhaustive list of geographic and cultural variables. We find, by contrast, that the impact of genetics on living standards is not robust to the inclusion of basic geographic controls. |
| Keywords: | Genetics; Economic Development; Geography; Climatic Similarity |
| JEL: | O1 O33 O40 |
| Date: | 2011–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35178&r=ure |
| By: | S Bradley; Jim Taylor |
| Abstract: | This paper investigates the extent to which exam performance at the end of compulsory education has been affected by three major education reforms: the introduction of a quasi-market following the Education Reform Act (1988); the specialist schools initiative introduced in 1994; and the Excellence in Cities programme introduced in 1999. We use data for all state-funded secondary schools in England over the period 1992-2006. The empirical analysis, which is based on the application of panel data methods, indicates that the government and its agencies have substantially overestimated the benefits flowing from these three major reforms. Only about one-third of the improvement in GCSE exam scores during 1992-2006 is directly attributable to the combined effect of the education reforms. The distributional consequences of the policy, however, are estimated to have been favourable, with the greatest gains being achieved by schools with the highest proportion of pupils from poor families. But there is evidence that resources have not been allocated efficiently. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:916&r=ure |
| By: | Zhang, Tongbin; Hu, Bo |
| Abstract: | House prices crash has become an important feature of macroeconomic crisis. We argue that house prices crash driven by contractionary monetary policy is not only a reaction to crisis, but also accelerates and amplifies the fluctuations of major macroeconomic variable. In this paper, we conduct a case study of Hong Kong in the 1997-1998 financial crisis and quantitatively analyze the mechanism by developing a general equilibrium model incorporating financial accelerator mechanism into both household and entrepreneur sectors. After estimating and simulating the model, impulse response results imply that our model can explain the co-movement of house prices, consumption, and investment better than the alternative models. |
| Keywords: | house prices; fianncial accelerator; consumption; investment; Hong Kong |
| JEL: | E32 E44 E37 |
| Date: | 2011–11–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:34962&r=ure |
| By: | Tom Broekel; Ron Boschma |
| Abstract: | Firms’ embeddedness into knowledge networks has received much attention in the literature. However, little is known about the composition of firms’ ego-networks with respect to different types of proximities. Based on survey data of 295 firms in eight European regions, we show that the ego-networks of firms systematically differ in their geographical and cognitive embeddedness. We find that firms’ innovation performance is stimulated if the firm primarily links to technologically related firms as well as technologically similar organizations. Connecting with organizations at different geographical levels yields positive effects as well. |
| Keywords: | ego-networks, geographical proximity, innovation performance, knowledge networks, technological relatedness |
| JEL: | B15 R11 R12 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1118&r=ure |
| By: | Nowok, Beata (University of St. Andrews); van Ham, Maarten (Delft University of Technology); Findlay, Allan M (University of St. Andrews); Gayle, Vernon (University of Stirling) |
| Abstract: | The majority of modelling studies on consequences of internal migration focus almost exclusively on the labour market outcomes and the material well-being of migrants. We investigate whether individuals who migrate within the UK become happier after the move than they were before it and whether the effect is permanent or transient. Using life satisfaction responses from 12 waves of the British Household Panel Survey (BHPS) and employing a fixed-effects model, we derive a temporal pattern of migrants' subjective well-being (SWB) around the time of the migration event. Our findings make an original contribution by revealing for the first time that, on average, migration is preceded by a period when individuals experience a significant decline in happiness. The boost that is received through migration appears to bring people back to their initial level of happiness. As opposed to labour market outcomes of migration, SWB outcomes do not differ significantly between men and women. Perhaps surprisingly, long-distance migrants are at least as happy as short-distance migrants despite the higher social costs that are involved. |
| Keywords: | migration, happiness, subjective well-being, longitudinal data, UK |
| JEL: | J61 R23 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6140&r=ure |
| By: | Carole Brunet (LED, Université Paris 8. 2, rue de la Liberté 93 526 SAINT-DENIS CEDEX); Nathalie Havet (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France) |
| Abstract: | Our empirical study stems from previous research on the inter-relations between residential status and microeconomic labour market outcomes. It focuses on employees and assesses the a priori ambiguous e-ect of homeownership on job-match quality. We use the French data set of the 1995-2001 European Community Household Panel to build a subjective measure of job downgrading. We estimate a recursive trivariate probit with partial observability that simultaneously models the residential status choice, its impact on the probability of being downgraded, and the selection into employment. The comparison with simpler models indicates that taking into account the selection into employment and controlling unobservable individual heterogeneity are of prime necessity to obtain robust conclusions. |
| Keywords: | residential status; job downgrading; overeducation; job matching |
| JEL: | C35 J24 J28 R21 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1131&r=ure |
| By: | Juan Miguel Benito (Departamento de Economia, Universidad Publica de Navarra, Spain); Pablo Branas-Garz (Departamento de Teoria e Historia Economica, Universidad de Granada, Spain and Economic Science Institute Affliate, Chapman University); Penelope Hernandez (Departamento de Analisis Economico y ERI-CES, Spain); Juan A. Sanchis (Departamento de Estructura Econ´omica y ERI-CES, Spain) |
| Abstract: | In this paper we experimentally test Schelling’s (1971) segregation model and confirm the striking result of segregation. In addition, we extend Schelling’s model theoretically by adding strategic behavior and moving costs. We obtain a unique subgame perfect equilibrium in which rational agents facing moving costs may find it optimal not to move (anticipating other participants’ movements). This equilibrium is far for full segregation. We run experiments for this extended Schelling model. We find that the percentage of strategic players dramatically increases with the cost of moving and that the degree of segregation depends on the distribution of rational subjects. |
| Keywords: | Subgame perfect equilibrium, segregation, experimental games |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:chu:wpaper:11-14&r=ure |
| By: | Miyair, Kantaro; Matsuda, Shunsuke |
| Abstract: | -- |
| Keywords: | LED street light,Visible Light Communication,Multi-use,Platform business |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp11:52333&r=ure |
| By: | Aldieri, Luigi |
| Abstract: | In this paper we analyze the relationship between R&D spillovers and productivity. To this aim, we use data from 9th and 10th “Indagine sulle imprese manifatturiere” (IMM) surveys carried out by Capitalia. These two surveys, which cover the period 2001-2006, contain both quantitative and qualitative information on a large sample of Italian firms. The main contribution of this paper is to stress the importance of replacing the traditional high-tech/low-tech industries with a classification more suitable to capture the nature of new technologies. Indeed, the industry data are summarised in a particular taxonomy, according to Pavitt methodology: Supplier dominated, Scale intensive, Specialized suppliers and Science based. This taxonomy accounts for differences in the knowledge intensity and innovative activities within sectors. The estimation method takes into account the endogeneity of regressors and simultaneity issue regarding firms’ decision to invest in R&D. The results provide evidence of higher productivity in R&D intensive industries and this can be interpreted as the signal of the relevance of spillover effects. |
| Keywords: | Industry taxonomies; R&D; Productivity; Spillovers |
| JEL: | D62 C23 D24 O3 |
| Date: | 2011–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35018&r=ure |
| By: | Stephan Brunow; Hanna Brenzel |
| Abstract: | After the crisis years of 2008 and 2009 EU countries followed different employment paths. Employment and wage levels, for instance, are quite unevenly distributed across Europe. Some of the EU countries expect labour shortages due to demographic change in the future. If this is the case, wages will rise when the shortages occur. From literature on migration it is well known that regions with relatively higher income levels and a lower risk of unemployment are typical destination countries for immigration. Thus, European regions might be expected to become rather mixed in cultural terms in the future. Despite the filling of the labour market and the redistribution of the resource of labour, the ultimate question raised in the discussion is whether there are additional gains or losses due to immigration. This work therefore focuses on the impact of migrants on regional GDP per capita for European regions. Does the proportion of foreigners in the labour force increase or lower regional income? Does the composition of non-natives with respect to their countries of origin matter? Both questions are addressed in this study while controlling for endogeneity. We provide evidence that immigration raises regional income and a tendency towards (roughly classified) dominant foreign-born groups reduces the costs of interaction and integration. Thus, in general immigration has a positive effect on regional performance and the costs of immigration in destination regions are balanced out. Depending on the labour market status of migrants, the regions of origin of migrants within the EU face a rise or decline in income as a result of the outflow. |
| Keywords: | Regional Income, Cultural Diversity, Effects of Immigration |
| Date: | 2011–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2011:i:413&r=ure |