nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2012‒02‒08
eleven papers chosen by
Steve Ross
University of Connecticut

  1. External Benefits of Brownfield Redevelopment: An Applied Urban General Equilbirum Analysis By Niels Vermeer; Wouter Vermeulen
  2. Strategic tax and public service competition among local governments By Lauridsen, Jørgen; Nannerup, Niels; Skak, Morten
  3. Measuring the Effect of the Real Estate Bubble: a House Price Index for Bilbao By Menéndez, Patricia; Palacios, María Blanca; Bárcena Ruiz, María Jesús; Tusell Palmer, Fernando Jorge
  4. Flexible Employment and Cross-Regional Adjustment By Ioannis Kaplanis; Vassilis Monastiriotis
  5. Geographical Analysis of US Green Sector Industry Concentration By Register, D. Lane; Lambert, Dayton M.; English, Burton C.; Jensen, Kimberly L.; Menard, R. Jamey; Wilcox, Michael D.
  6. Uncertain futures in the dynamics of territorial changes: when wetlands meet erosion processes By Vaz, Eric; Walczinska, Agnieszka
  7. Peer Effects and Social Preferences in Voluntary Cooperation By Thöni, Christian; Gächter, Simon
  8. Group Decision Making with Uncertain Outcomes: Unpacking Child-Parent Choices of High School Tracks By Pamela Giustinelli
  10. The Value of Transportation for Improving the Quality of Life of the Rural Elderly By Israel, Alicia; Mjelde, James W.; Dudensing, Rebekka; Cherrington, Linda; Jin, Yanhong; Chen, Junyi
  11. Does Labor Diversity Promote Entrepreneurship? By Marianna Marino; Pierpaolo Parrotta; Dario Pozzoli

  1. By: Niels Vermeer; Wouter Vermeulen
    Abstract: Does brownfield redevelopment warrant government support? We explore several external benefits in an urban general equilibrium framework. Preferences are modelled such that demand for housing units in the city is downward sloping, which yields a more general setup than the extreme open and closed city cases. We shed light on the relative importance of general equilibrium effects of nonmarginal redevelopment projects and we isolate the external benefits of the removal of a local nuisance, the exploitation of agglomeration economies and the preservation of open space at the urban fringe. A numerical application indicates that local nuisance and agglomeration effects may push social returns significantly beyond the value of redeveloped land that accrues to its owner. However, depending on the price elasticity of urban housing demand and the strength of agglomeration economies, the amount of preserved greenfield land may be small and it only generates additional benefits to the extent that direct land use policies fail to internalize its value as open space.
    Keywords: brownfield redevelopment, land use externalities, urban general equilibrium,benefit-cost analysis
    JEL: R13 R21 R52
    Date: 2012–01
  2. By: Lauridsen, Jørgen (Department of Business and Economics); Nannerup, Niels (Department of Business and Economics); Skak, Morten (Department of Business and Economics)
    Abstract: Tax and public service competition between local governments concerning localisation of new residents is analysed in a setting of economic spillovers which means that also a neighbouring region will benefit from localisation via demand of residents in a border region, (a so-called host region). We identify two basic Nash-equilibrium outcomes of the analysed tax-game. In one of these outcomes local tax rates will be different across the regions – a fact that appears important for (future) empirical studies of local tax competition. Due to the lack of adequate theoretical modelling, studies in this field have often demonstrated spatial dependence of local policy variables without identifying the source of interaction between decision-makers. Our theoretical findings prove to be robust to a range of important expansions of the basic simple framework.
    Keywords: Local tax competition; household locational choice; spillover effects; Nash-equilibria
    JEL: H21 H31 H71
    Date: 2011–12–01
  3. By: Menéndez, Patricia; Palacios, María Blanca; Bárcena Ruiz, María Jesús; Tusell Palmer, Fernando Jorge
    Abstract: A spatio-temporal model is proposed aimed at producing an index of housing prices. A hedonic model with geographically varying coefficients is coupled with a non parametric estimation of the trend, whence a price index is derived.
    Keywords: house prices, price index, GWR, geographically weighted regression,
    Date: 2011–11
  4. By: Ioannis Kaplanis; Vassilis Monastiriotis
    Abstract: Employment flexibility is commonly associated to greater labour mobility and thus faster cross-regional adjustments. The literature however offers very little hard evidence on this and quite limited theoretical guidance. This paper examines empirically the relationship between employment flexibility and cross-regional adjustment (migration) at the regional and local levels in the UK. Employment flexibility is associated to higher labour mobility (but only at a rather localised scale) and at the same time seems to reduce the responsiveness of migration to unemployment. This suggest that rising flexibility may be linked to higher persistence in spatial disparities, as intra-regional adjustments are strengthened while extraregional adjustments weakened.
    Keywords: Employment flexibility, regional migration, labour market adjustment
    JEL: R11 R23 J08 J61
    Date: 2012–01
  5. By: Register, D. Lane; Lambert, Dayton M.; English, Burton C.; Jensen, Kimberly L.; Menard, R. Jamey; Wilcox, Michael D.
    Abstract: This paper analyzes the geographic distribution of âgreen energyâ sector clustering in the lower 48 United States using recent developments in industry concentration analysis. Evidence suggests that the ten green energy subsectors and the aggregate of the firms comprising the green energy sector are regionally concentrated. Positive changes in industry concentration from 2002 to 2006 tended to be greatest in non-metropolitan counties, suggesting comparative advantage with respect to site location for the composite of firms making up these sectors.
    Keywords: Agglomeration, Location Quotient, Renewable Energy, Community/Rural/Urban Development, Industrial Organization, Research and Development/Tech Change/Emerging Technologies,
    Date: 2012
  6. By: Vaz, Eric (cieo - research centre for spatial and organizational dynamics); Walczinska, Agnieszka (Heidelberg University)
    Abstract: Erosion has been a distress on anthropogenic activity since antiquity. The changes in spatial properties in coastal changes in wetland systems have had a constantly mutating morphology, often obliging economic activity to readapt itself to the geomorphological conditions. This has had a profound impact on a common territorial identity based on the land use processes of regions prone to geomorphological change. The case of fisheries in the Algarve for instance, where often local catchments would be a support for economic activity in Mediterranean regions, are a vision of economic and historical activity that has changed, not only due to economic transitions, but also due to availability of resources and natural phenomena such as coastal erosion. Wetland and coastal systems are coined with the existence of over 70% of all human activity, all of these intricate relations of environmental and socio-economic change occur at a spatial level and where economic activity is often present. The manifested physical effect on the geophysical and land changes is evident in the occurring consequences on land cover, but also on land use types and anthropogenic exploration of these areas. A deeper understanding of the changes occurring at territorial level simultaneously on the tendencies on coastal erosion, allow monitoring of most adequate actions in fragile regions. This paper proposes an integrated assessment based on spatial analysis and quantitative spatial methodologies as to allow a methodology of analyzing change, and studying the impacts registered in the valuable stretch of the Ria Formosa in Portugal
    Keywords: Coastal Change; Territorial Dynamics; Spatial Modelling; Coastal Systems; Spatial Analysis
    JEL: Q01 R14 R52
    Date: 2012–01–23
  7. By: Thöni, Christian (University of St. Gallen); Gächter, Simon (University of Nottingham)
    Abstract: Substantial evidence suggests the behavioral relevance of social preferences and also the importance of social influence effects ("peer effects"). Yet, little is known about how peer effects and social preferences are related. In a three-person gift-exchange experiment we find causal evidence for peer effects in voluntary cooperation: agents' efforts are positively related despite the absence of material payoff interdependencies. We confront this result with major theories of social preferences which predict that efforts are unrelated, or negatively related. Some theories allow for positively-related efforts but cannot explain most observations. Conformism, norm following and considerations of social esteem are candidate explanations.
    Keywords: social preferences, voluntary cooperation, peer effects, reflection problem, gift exchange, conformism, social norms, social esteem
    JEL: C92 D03
    Date: 2012–01
  8. By: Pamela Giustinelli (University of Michigan)
    Abstract: Predicting group decisions with uncertain outcomes involves the empirically difficult task of disentangling individual decision makers' beliefs and preferences over outcomes' states from the group's decision rule. This paper addresses the problem within the context of a consequential family decision concerning the high school track of adolescent children in presence of curricular strati cation. The paper combines novel data on children's and parents' probabilistic beliefs, their stated choice preferences, and families' decision rules with standard data on actual choices to estimate a simple model of curriculum choice featuring both uncertainty and heterogeneous cooperative-type decisions. The model's estimates are used to quantify the impact on curriculum enrollment of policies affecting family members' expectations via awareness campaigns, publication of education statistics, and changes in curricular specialization and standards. The latter exercise reveals that identity of policy recipients--whether children, parents, or both--matters for enrollment response, and underlines the importance of incorporating information on decision makers' beliefs and decision rules when evaluating policies.
    Keywords: Choice under Uncertainty, Multilateral Choice, Heterogeneous Decision Rules, Curricular Tracking, Curriculum Choice, Child-Parent Decision Making, Subjective Probabilities, Stated and Revealed Preferences, Choice-Based Sampling
    JEL: C25 C35 C50 C71 C81 C83 D19 D81 D84 I29 J24
    Date: 2011–07
  9. By: Gold, Valentin (University of Konstanz); Haer, Roos (University of Konstanz)
    Abstract: A range of theories have attempted to explain the existing variation in the level of civilian victimization across countries. To date, most of these theories have been focused on the influence of the strategic environment in which these atrocities take place or they have emphasized the organizational difference between the involved actors. Less attention is, however, devoted to the possible spillover effect of these atrocities. This study fills this niche by analyzing the role of refugee flows on the diffusion of atrocities. We do so through statistical analyses of refugee from neighboring countries and the occurrence of atrocities in Africa during the period of 1995-2010, controlling for other possible explanation of atrocities. Our study is the first to systematically examine the effect of refugees on the likelihood of atrocities in refugee-recipient states. We do this by employing a spatial lag model with a temporal component with two different spatial weighting matrices. The preliminary results of the analyses suggest that refugees indeed influence the amount of atrocities and that atrocities are spatially determined. Furthermore, civilian killings is primarily caused by strategic factors such as the number of atrocities and rebel groups in neighboring state and the number of rebel groups and battle deaths in the host country.
    Keywords: atrocities; refugees; spatial temporal lag model
    JEL: D74
    Date: 2012–01–23
  10. By: Israel, Alicia; Mjelde, James W.; Dudensing, Rebekka; Cherrington, Linda; Jin, Yanhong; Chen, Junyi
    Abstract: When an elderly individual living in a rural community is no longer able to drive, issues that come with living in an isolated area (i.e. limited access to health and personal services, distance between home and town centers) are exaggerated and the individual may experience a decrease in their quality of life. Public transportation that supports elderly individuals may be an important issue for rural communities to consider in creating an aging-friendly community and maintaining quality of life for residents who are no longer able to drive. The purpose of this research is to obtain an understanding of opinions about public transportation for the elderly held by rural county residents and their WTP for transportation options through an additional vehicle registration fee. To achieve this objective, a survey with choice experiments was distributed to residents in Atascosa and Polk County, Texas in September 2011. Researchers employed a conditional logit model to analyze the choice survey data and examine county residentsâ WTP for various transportation options. The results of this study provide public transportation managers insights into the attributes taxpayers expect in transportation routes and programs.
    Keywords: Elderly Transportation, Rural Transportation, Rural Elderly, Rural Quality of Life, Community/Rural/Urban Development,
    Date: 2012
  11. By: Marianna Marino (École Polytechnique Fédérale de Lausanne,); Pierpaolo Parrotta (Department of Economics and Business, Aarhus University, Denmark); Dario Pozzoli (Department of Economics and Business, Aarhus University, Denmark)
    Abstract: We find evidence that workforce educational diversity promotes entrepreneurial behavior of employees as well as the formation of new firms, whereas diversity in demographics hinders transitions to selfemployment. Ethnic diversity favors entrepreneurship in financial and business services.
    Keywords: Labor diversity, entrepreneurship, transitions to self-employment
    JEL: C26 J24 L26
    Date: 2012–01–04

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