nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2013‒03‒09
27 papers chosen by
Steve Ross
University of Connecticut

  1. Housing and Urbanization in Africa: unleashing a formal market process By Paul Collier; Tony Venables
  2. School Starting Age and Crime By Rasmus Landersø; Helena Skyt Nielsen; Marianne Simonsen
  3. Start-up rates, Entrepreneurship Culture and the Business Cycle. Swedish patterns from national and regional data By Andersson, Martin
  4. Guided through the `Red tape'? Information sharing and foreign direct investment. By Balsvik, Ragnhild; Skaldebø, Linde Tøndel
  5. Mixed oligopoly in education By Helmuth Cremer; Dario Maldonado
  6. Global House Price Fluctuations: Synchronization and Determinants By Hideaki Hirata; M. Ayhan Kose; Christopher Otrok; Marco E. Terrones
  7. Fewer School Days, More Inequality By Daiji Kawaguchi
  8. Housing market volatility in the OECD area: Evidence from VAR based return decompositions By Tom Engsted; Thomas Q. Pedersen
  9. A spatial panel data analysis of crime rates in EU By Lauridsen, Jørgen T.; Zeren, Fatma; Ari, Ayse
  10. Urban Society of Amman - Report of the Amman Household Survey 2008 By Hiroshi Kato; Haruka Usuki; Erina Iwasaki
  11. Innovative Integration in Tourism By Romão, João; Rodrigues, Paulo M.; Guerreiro, João
  12. The mathematics skills of school children: How does England compare to the high performing East Asian jurisdictions? By John Jerrim; Alvaro Choi
  13. Urbanization and (in)formalization By Ghani, Ejaz; Kanbur, Ravi
  14. What Do Students Think About School? By OECD
  15. Police Reform, Training and Crime: Experimental evidence from Colombia’s Plan Cuadrantes By Juan Felipe García; Daniel Mejia; Daniel Ortega
  16. Estimating the effects of nuclear power facilities on local income levels: A quasi-experimental approach By Ando, Michihito
  17. An Equilibrium Search Model of the Labor Market Entry of Second-Generation Immigrants and Ethnic Danes By Nabanita Datta Gupta; Lene Kromann
  18. The labor market impact of refugee immigration in Sweden 1999–2007 By Ruist, Joakim
  19. Do State Campaign Finance Reforms Reduce Public Corruption? By Jeffrey Milyo; Adriana Cordis
  20. Interactive knowledge exchanges under complex social relations: A simulation model By Cowan, Robin; Kamath, Anant
  21. Change at the Checkout: Price Effects of Barcode Scanners By Emek Basker
  22. Group Violence, Ethnic Diversity and Citizen Participation - Evidence from Indonesia By Christophe Muller; Marc Vothknecht
  23. Pedestrian and Bicycle Safety Strategies for UC Berkeley Campus and Periphery: Recommendations for Implementation By Schneider, Robert J.; Grembek, Offer; Braughton, Matthew; Orrick, Phyllis; Ragland, David R.
  24. Spatio-Temporal Analysis of Car Distance, Greenhouse Gases and the Effect of Built Environment: a Latent Class Regression Analysis By Zahabi, Seyed Amir H.; Miranda-Moreno, Luis; Patterson, Zachary; Barla, Philippe
  25. My Wage is Unfair! Just a Feeling or Comparison with Peers? By Schneck, Stefan
  26. A test of the Becker-Tomes model of human capital transmission using microdata on four generations By Lindahl, Mikael; Palme, Mårten; Sandgren Massih, Sofia; Sjögren, Anna
  27. The effect of earned vs. house money on price bubble formation in experimental asset markets By Brice Corgnet; Roberto Hernán; Praveen Kujal; David Porter

  1. By: Paul Collier; Tony Venables
    Abstract: In many African countries a market for private provision of formal sector mass housing is largely absent.  This is not inevitable, but is the consequence of policy failure surrounding five key issues.  The affordability of housing, with costs often inflated by inappropriate building regulations and inefficient construction sectors; lack of clarity in land titling and legal enforcement; lack of innovation in supply of housing finance; failure to supply supporting infrastructure and to capture development gains to finance this; and failure to plan cities in a manner conducive to employment creation.  Since responsibility for these policies is divided between different parts of government, a coordinated push is needed to secure reform and activate this market.
    Date: 2013–01–09
  2. By: Rasmus Landersø (Department of Economics and Business, Aarhus University); Helena Skyt Nielsen (Department of Economics and Business, Aarhus University); Marianne Simonsen (Department of Economics and Business, Aarhus University)
    Abstract: This paper investigates the effects of school starting age on crime while relying on variation in school starting age induced by administrative rules; we exploit that Danish children typically start first grade in the calendar year they turn seven, which gives rise to a discontinuity in children’s school starting age. Analyses are carried out using register-based Danish data. We find that higher age at school start lowers the propensity to commit crime, but that this reduction is caused by incapacitation while human capital accumulation is unaffected. Importantly, we also find that the individuals who benefit most from being old-for-grade are those with high latent abilities whereas those with low latent ability seem to be unaffected by being old-for-grade in school.
    Keywords: old-for-grade, school start, criminal charges, violence, property crime
    JEL: I21 K42
    Date: 2013–02–25
  3. By: Andersson, Martin (CIRCLE Lund University, Blekinge Institute of Technology)
    Abstract: It is often claimed that there are locally embedded values and attitudes towards entrepreneurship, exerting a strong influence on the rate and level of entrepreneurial activity in regions. The concept of regional entrepreneurship culture aims to capture such phenomena, and refers in a general sense to the level of social acceptance and encouragement of entrepreneurs and their activities in a region. This paper discusses regional entrepreneurship culture as a source of persistent differences in regional rates of new firm formation, and presents a number of empirical regularities for Sweden to illustrate the empirical relevance of the main arguments. Using data on rates of new firm formation across Swedish regions over time, the paper further explores the association between start-up activity and the business cycle, as well as how the geographic distribution of start-up rates changes during a major economic crisis.
    Keywords: entrepreneurship; start-ups; geography; culture; business cycles; social capital; persistence
    JEL: L26 O18 R11 R12
    Date: 2013–01–10
  4. By: Balsvik, Ragnhild (Dept. of Economics, Norwegian School of Economics and Business Administration); Skaldebø, Linde Tøndel (Chr. Michelsen Institute)
    Abstract: What drives the observed tendency of new FDI, other things equal, to be attracted to locations where many other foreign investors are located? One explanation in the literature on FDI location is that expected bene ts from agglomeration externalities make rms want to locate in agglomerated regions. Alternatively, potential investors get information about conditions in a host from rms in their own business network that already have experience from that country. We study how Norwegian FDI location choice depends on previous Norwegian presence, using information about institutional quality to separate the impact of information sharing from agglomeration externalities. The impact of previous Norwegian investors is larger in countries with low institutional quality. We interpret this as consistent with the presence of information sharing among Norwegian investors.
    Keywords: FDI; location choice; networks; information; agglomeration.
    JEL: D80 F23
    Date: 2013–02–18
  5. By: Helmuth Cremer; Dario Maldonado
    Abstract: Abstract: This paper studies oligopolistic competition in education markets when schools can be private and public and when the quality of education depends on “peer group" effects. In the first stage of our game schools set their quality and in the second stage they fix their tuition fees. We examine how the (subgame perfect Nash) equilibrium allocation (qualities, tuition fees and welfare) is affected by the presence of public schools and by their relative position in the quality range. When there are no peer group effects, efficiency is achieved when (at least) all but one school are public. In particular in the two school case, the impact of a public school is spectacular as we go from a setting of extreme differentiation to an efficient allocation. However, in the three school case, a single public school will lower welfare compared to the private equilibrium. We then introduce a peer group e¤ect which, for any given school is determined by its student with the highest ability. These PGE do have a signi.cant impact on the results. The mixed equilibrium is now never efficient. However, welfare continues to be improved if all but one school are public. Overall, the presence of PGE reduces the e¤ectiveness of public schools as regulatory tool in an otherwise private education sector.
    Date: 2013–02–28
  6. By: Hideaki Hirata; M. Ayhan Kose; Christopher Otrok; Marco E. Terrones
    Abstract: We examine the properties of house price fluctuations across 18 advanced economies over the past 40 years. We ask two specific questions: First, how synchronized are housing cycles across these countries? Second, what are the main shocks driving movements in global house prices? To address these questions, we first estimate the global components in house prices and various macroeconomic and financial variables. We then evaluate the roles played by a variety of global shocks, including shocks to interest rates, monetary policy, productivity, credit, and uncertainty, in explaining house price fluctuations using a wide range of FAVAR models. We find that house prices are synchronized across countries, and the degree of synchronization has increased over time. Global interest rate shocks tend to have a significant negative effect on global house prices whereas global monetary policy shocks per se do not appear to have a sizeable impact. Interestingly, uncertainty shocks seem to be important in explaining fluctuations in global house prices.
    Keywords: Monetary policy, interest rates, business cycles, financial cycles
    JEL: E32 E43 E52 G15 R31
    Date: 2013–02
  7. By: Daiji Kawaguchi
    Abstract: This paper examines how the intensity of compulsory education affects the time use and academic achievement of children with different socioeconomic backgrounds. The impact is identified off the school-day reduction of Japan in 2002 that resulted when all Saturdays were set as public-school holidays. An analysis of time diaries and test scores before and after the school-day reduction reveals that the socioeconomic gradient of 9th graders' study time becomes 80% steeper and the socioeconomic gradient of academic achievements of 8th and 10th graders becomes 20-30% steeper. Intensive compulsory education contributes to equalizing the academic performances of children with different socioeconomic backgrounds.
    Keywords: Compulsory Education, Inequality, Socioeconomic Gradient
    JEL: I24 I28
    Date: 2013–01
  8. By: Tom Engsted (Aarhus University and CREATES); Thomas Q. Pedersen (Aarhus University and CREATES)
    Abstract: Vector-autoregressive models are used to decompose housing returns in 18 OECD countries into cash ?ow (rent) news and discount rate (return) news. Only for two countries - Germany and Ireland - do changing expectations of future rents play a dominating role in explaining housing return volatility. For the majority of countries news about future returns is the main driver, and both real interest rates and risk premia play an important role in accounting for housing market volatility. Bivariate cross-country correlations and principal components analyses indicate that part of the return movements have a common factor among the majority of countries. However, in a minority of countries (Germany, Japan, and the Netherlands) return movements have been basically unrelated to return movements in other countries.
    Keywords: Housing return volatility, variance decomposition, dynamic Gordon growth model, innovation and news components, VAR model, principal components, OECD countries
    JEL: C32 G12 R31
    Date: 2013–02–28
  9. By: Lauridsen, Jørgen T. (Centre of Health Economics Research (COHERE)); Zeren, Fatma (Department of Econometrics); Ari, Ayse (Department of Economics)
    Abstract: The study investigates selected factors affecting crime rates in the EU-15 countries during the years 2000 to 2007 with an especial focus on inflation rate, level of education, income and employment. While these topics have been investigated in former studies, the present study adds by introducing spatial panel data methods to the case. Regarding the effects of these factors, the present study obtains results comparable to those from former studies, whereby the robustness of these are confirmed.
    Keywords: Determinants of crime rates; cost-benefit analysis of crime; EU countries; spatial panel data analysis
    JEL: A12 C50 K40
    Date: 2013–01–10
  10. By: Hiroshi Kato; Haruka Usuki; Erina Iwasaki
    Abstract: Arab world is essentially an urban society, whose typical examples are the primate capital cities in the Arab countries. In case of Amman, the capital of Jordan, it grew rapidly with the economic development in recent decades, and currently has 40% of national population. Its spatial expansion took place without urban planning, and is associated with many social and economic problems. However, the singularity of Amman is in its development in relation to migration. Since the independence of Jordan in 1946, Amman has accommodated the refugees and migrants that flowed into whenever wars and conflicts occurred in the Middle East. As such, Jordan is one of the most important buffer states in the Middle Eastern politics. There are few empirical studies based on statistical data on Amman urban society, and detailed studies that focus attentions on its spatial transformation are rare. Our paper aims at providing the basic information concerning the socioeconomic situations in Amman based on the data derived from the Amman Household Survey 2008, in view of the future research on the urban development of Amman. Originality of our paper lies in setting 'district' (liwa') as a base of analysis. By doing so, we categorize the 'districts' from socioeconomic point of view, and clarifies the socioeconomic characteristics of 'districts' which reflect the close relationship between social structuring and migration from inside and outside Jordan.
    Date: 2013–01
  11. By: Romão, João (University of Algarve); Rodrigues, Paulo M. (University of Algarve); Guerreiro, João (University of Algarve)
    Abstract: The differentiation of tourism destinations depends on the innovative integration of local cultural and natural characteristics of the territory into the regional touristic supply. A panel data model is used to identify – and to confirm – the influence of these “new” conditions for sustainable tourism development in the regional attractiveness in Southwest Europe, between 2003 and 2008. Other “traditional conditions” are also taken into consideration, namely those related to infrastructures and economic conditions. The work includes a critical literature review on the regional tourism systems, their relation with regional systems of innovation and the contribution of natural and cultural assets for the differentiation of tourism destinations.
    Keywords: Tourism; Innovation; Differentiation; Nature; Heritage; Region
    JEL: C23 O33 Q56
    Date: 2013–02–13
  12. By: John Jerrim (Department of Quantitative Social Science, Institute of Education, University of London); Alvaro Choi (Institut d’Economia de Barcelona, University of Barcelona)
    Abstract: The Programme for International Student Assessment (PISA) and Trends in Mathematics and Science Study (TIMSS) are two highly respected studies of school pupils’ academic achievement. English policymakers have been disappointed with school children’s performance on these tests, particularly in comparison to the strong results of young people from East Asia. In this paper we provide new insight into the England – East Asia gap in school children’s mathematics skills. We do so by considering how cross-national differences in math test scores change between ages 10 and 16. Our results suggest that, although average math test scores are higher in East Asian countries, this achievement gap does not increase between ages 10 and 16. We thus conclude that reforming the secondary school system may not be the most effective way for England to ‘catch up’ with the East Asian nations in the PISA math rankings. Rather earlier intervention, during pre-school and primary school, may be needed instead.
    Keywords: : PISA, TIMSS, educational policy, primary education, secondary education
    JEL: I20 I21 I28
    Date: 2013–02–21
  13. By: Ghani, Ejaz; Kanbur, Ravi
    Abstract: Two of the great stylized predictions of development theory, and two of the great expectations of policy makers as indicators of progress in development, are inexorable urbanization and inexorable formalization. Urbanization is indeed happening, beyond the"tipping point"where half the world's population is now urban. However, formalization has slowed down significantly in the past quarter century. Indeed, informality has been increasing. This disconnect raises a number of questions for development analysis and development policy. Is the link between urbanization and formalization more complex than what had been thought? What does this mean for policy? The first core section of this paper asks what exactly is meant by formality and informality. The second core section turns to processes of urbanization and asks how these processes intersect with and interact with the incentives to formalize. The paper examines why cities attract the informal sector and the role that urbanization plays in growth and job creation through both the formal and informal sectors. Cities generate agglomeration benefits in the informal sector, perhaps more so than for the formal sector. The third core section is devoted to policy. At the current conjuncture, agglomeration benefits make a strong case for urbanization as an integral part of development strategy, but concerns about jobless growth and about urban poverty require a focus on the informal sector.
    Keywords: Population Policies,Labor Markets,Urban Slums Upgrading,Labor Policies,National Urban Development Policies&Strategies
    Date: 2013–02–01
  14. By: OECD
    Abstract: <UL> <LI>Most students think that what they learned in school is useful for them or their future. </LI> <LI>Students’ attitudes towards school are associated with their reading skills. </LI> <LI>Students who report that the climate at their school is conducive to learning tend to have more positive attitudes towards school. </LI></ul>
    Date: 2013–01
  15. By: Juan Felipe García; Daniel Mejia; Daniel Ortega
    Abstract: The Plan Nacional de Vigilancia Comunitaria por Cuadrantes (PNVCC) is a new police patrolling program introduced in the eight major cities of Colombia in 2010 by the National Police. The strategy divides the largest cities into small geographical areas (cuadrantes), assigns six policemen to each, establishes a new patrolling protocol involving more community contact, and holds officers accountable for crime in their assigned area. The plan warranted a comprehensive training program for over 9,000 police officers aimed at improving interpersonal skills and implementation of the new patrolling protocols. By staggering the training schedule between three randomly chosen cohorts of police stations, we generate experimental variation in the exposure to training and in the effective implementation of the new police protocols induced by the Plan Cuadrantes. Comparing the 4 months immediately after training with the same months from the previous year, we find a significant reduction in several types of crime attributable to the training program, ranging from around .13 of a standard deviation for homicides to .18 of a standard deviation for brawls. These impacts are driven by very large effects in high crime areas and very small -or zero- effects in low crime neighborhoods. Once we take into account the high spatial concentration of crime, the estimated effects account for an overall reduction in the number of homicides of about 22%. We suggest that the training program affected crime by increasing the patrol police’s sense of accountability to the population and also possibly through higher police motivation. Large efficiency gains in public service provision may be attainable with relatively inexpensive interventions that bring public servants closer to their clients.
    Date: 2013–01–23
  16. By: Ando, Michihito (Department of Economics)
    Abstract: This paper studies how the establishment of Nuclear Power Facilities (NPF) in the 1970s and 1980s has affected local per capita income levels in NPF-located municipalities in Japan by using the synthetic control method (SCM). Eight quantitative case studies using the SCM clarify that the effects of NPF establishment on per capita taxable income levels are highly heterogeneous, but often economically meaningful and in some cases huge: an 11 % increase on average, a 62 % increase in Rokkasho village in 2002 and a 30 % increase in Tomioka town in 2002. On the other hand, a few NPF-located municipalities receive weak or negligible effects from NPF establishment. I also examine the statistical significance of individual treatment effects with several placebo tests and find that the treatment effects of 4 out of the 8 NPF locations are larger than 95% of placebo effects.
    Keywords: local economic growth; nuclear power facilities; synthetic control method
    JEL: H71 O18 R53
    Date: 2013–01–27
  17. By: Nabanita Datta Gupta (Department of Economics and Business, Aarhus University); Lene Kromann (CBS, Copenhagen, Denmark)
    Abstract: Using a search model for Danish labor market entrants, we are one of the first studies to test whether second-generation immigrants have the same job-offer arrival and layoff rates as ethnic Danes have. We contribute to the search literature by incorporating matching as a way to ensure sub-sample homogeneity. Thus, we match second-generation immigrants to their ethnic Danish twins on the basis of parental characteristics and informal network quality. There are big differences before matching, but after matching, second-generation immigrants perform as well or better than their ethnic Dane counterparts do on the labor market, though not with respect to layoffs. This result is mainly driven by the group of high school graduates and those with a primary school education only. Second generation immigrants with vocational education, males in particular, face both significantly lower arrival rates when unemployed and significantly higher layoff rates than those of their ethnic Danish twins.
    Keywords: J15, J61, J71
    Date: 2013–02–28
  18. By: Ruist, Joakim (Department of Economics, University of Gothenburg)
    Abstract: This study estimates labor market effects of refugee immigration in Sweden 1999–2007. The setting is particularly suitable for using spatial variation within the country to estimate labor market effects of immigration. Bias from endogenous immigrant settlement is likely to be smaller when estimating the effect of only refugee immigration. Bias from internal migration of previous inhabitants is reduced by using data where the same individuals are identified over time. No significant effect of refugee immigration on total unemployment is found, but there is a large effect on the unemployment of previous immigrants from low- and middle-income countries, indicating that newly arrived refugee immigrants are substantially more easily substituted for this group than for natives in production.
    Keywords: unemployment; refugee immigration
    JEL: J23 J61 J64
    Date: 2013–02–14
  19. By: Jeffrey Milyo (Department of Economics, University of Missouri-Columbia); Adriana Cordis
    Abstract: The Supreme Court has long held that campaign finance regulations are permissible for the purpose of preventing corruption or the appearance of corruption. Yet the implied hypothesis that campaign finance reforms are effective tools for combating public corruption has gone essentially untested. We conduct the first systematic evaluation of the effects of campaign finance laws on actual corruption rates in the states. We examine the effects of state reforms on both convictions and filings in public corruption cases over the last 25 years; overall, we find no strong or convincing evidence that state campaign finance reforms reduce public corruption. Earlier research that employs similar methods also finds little support for the contention that state campaign finance regulations increase public trust and confidence in government. Together, these results call into question the legal rationale for campaign finance regulations.
    Keywords: public corruption, campaign finance, regulation
    JEL: D72 D78 H70 K40
    Date: 2013–01–17
  20. By: Cowan, Robin (UNU-MERIT/MGSoG, Maastricht University, and BETA, Universite de Strassbourg); Kamath, Anant (UNU-MERIT/MGSoG)
    Abstract: This is a model of knowledge exchange by means of informal interaction among agents in low technology clusters. What this study seeks to do is to colour these exchanges by placing them in an environment of complex social relations, test whether the small-world network structure is the most favourable for knowledge exchanges in these environments, and explore the influence of social relations and network distance. These enquiries are the contribution of this model to the existing series of studies on efficient network structures for knowledge diffusion. We find that the small-world network structure may not be the best network structure for highest and most equitable knowledge distribution, when knowledge exchanges are undertaken in environments of complex social relations. Also, we confirm that the highest and most equitable knowledge distribution is achieved when there is perfect affinity among the agents.
    Keywords: Knowledge Exchanges, Small-Worlds, Social Networks, Complex Social Relations
    JEL: D85 O33 Z13
    Date: 2013
  21. By: Emek Basker (Department of Economics, University of Missouri-Columbia)
    Abstract: I use difference-in-difference specifications with city-level price data from 1972 to 1984 to estimate the effect of barcode scanners, an early process innovation in the supply chain, on grocery prices. I found that prices of groceries fell, on average, by about 0.6% by the time supermarkets' adoption rate reached 5%. Several specification tests confirm that the estimates are causal. A conservative estimate suggests that the short-run welfare gains from scanners were approximately $2.6billion per year in 2012 dollars.
    Keywords: barcode scanners, retail, supermarkets, technology, prices, item-pricing laws
    JEL: L81 D22 O33
    Date: 2013–02–06
  22. By: Christophe Muller (Aix-Marseille University (Aix-Marseille School of Economics, EHESS & CNRS.); Marc Vothknecht (German Institute for Economic Research (DIW Berlin))
    Abstract: We study the impact of violent conflict on social capital, as measured by citizen participation in community groups, defined by four activity types: governance, social service, infrastructure development and risk-sharing. Combining household panel data from Indonesia with conflict event information, we find an overall decrease in citizen contributions in districts affected by group violence in the early post-Suharto transition period. However, participation in communities with a high degree of ethnic polarization is less affected, and is even stimulated for local governance and risk-sharing activities. Moreover, individual engagement appears to depend on the involvement of other members from the same ethnic group, which points toward building of intra-ethnic social networks in the presence of violence. Finally, our results show the danger of generalization when dealing with citizen participation in community activities. We find a large variety of responses depending on the activity and its economic and social functions. We also find large observed and unobserved individual heterogeneities of the effect of violence on participation. Once an appropriate nomenclature of activities is used and controls for heterogeneity are applied, we find that the ethnic and social configuration of society is central in understanding citizen participation.
    Keywords: Violent Conflict, Citizen Participation, Local Public Goods
    JEL: D74 H42 O11
    Date: 2013–02
  23. By: Schneider, Robert J.; Grembek, Offer; Braughton, Matthew; Orrick, Phyllis; Ragland, David R.
    Abstract: The high level of pedestrian, bicycle, and transit activity on city-owned streets surrounding the UC Berkeley campus creates a dynamic social environment and gives Berkeley much of its charm. But the streets around the campus (henceforth called the campus periphery) are also places where pedestrians and bicyclists have been injured or killed in collisions with automobiles. This creates liability for drivers, the City, and the University—and worse, causes suffering for crash victims and their families. Everyone has an interest in reducing the frequency and severity of pedestrian and bicycle crashes within the campus periphery. This document, developed by the UC Berkeley Safe Transportation Research and Education Center (SafeTREC), recommends short- and long-term actions to improve pedestrian and bicycle safety on and near the campus.
    Keywords: Transportation and Highway Engineering, Public Health
    Date: 2013–03–01
  24. By: Zahabi, Seyed Amir H.; Miranda-Moreno, Luis; Patterson, Zachary; Barla, Philippe
    Abstract: This work examines the temporal-spatial variations of daily automobile distance traveled and greenhouse gas emissions (GHGs) and their association with built environment attributes and household socio-demographics. A GHGs household inventory is determined using link-level average speeds for a large and representative sample of households in three origin-destination surveys (1998, 2003 and 2008) in Montreal, Canada. For the emission inventories, different sources of data are combined including link-level average speeds in the network, vehicle occupancy levels and fuel consumption characteristics of the vehicle fleet. Built environment indicators over time such as population density, land use mix and transit accessibility are generated for each household in each of the three waves. A latent class (LC) regression modeling framework is then implemented to investigate the association of built environment and socio-demographics with GHGs and automobile distance traveled. Among other results, it is found that population density, transit accessibility and land-use mix have small but statistically significant negative impact on GHGs and car usage. Despite that this is in accordance with past studies, the estimated elasticities are greater than those reported in the literature for North American cities. Moreover, different household subpopulations are identified in which the effect of built environment varies significantly. Also, a reduction of the average GHGs at the household level is observed over time. According to our estimates, households produced 15% and 10% more GHGs in 1998 and 2003 respectively, compared to 2008. This reduction is associated to the improvement of the fuel economy of vehicle fleet and the decrease of motor-vehicle usage. A strong link is also observed between socio-demographics and the two travel outcomes. While number of workers is positively associated with car distance and GHGs, low and medium income households pollute less than high-income households.
    Keywords: Greenhouse gas emissions, spatio-temporal variations, built environment, latent class regression, household clusters, Environmental Economics and Policy, R42, R48, Q54, Q58,
    Date: 2013–01
  25. By: Schneck, Stefan
    Abstract: This paper descriptively analyzes the nexus between income comparisons and perceptions of unfair pay. A German household survey reveals that individuals who perceive their wages as unfair earn significantly lower wages than fairly paid individuals with similar characteristics. This suggests that unfairness perceptions with respect to wages are based on sound income comparisons with peers. When asked about a subjectively fair amount in Euros, individuals tend to claim much higher wages than fairly paid individuals with identical characteristics. --
    Keywords: Fairness,Wages
    JEL: J30 J31
    Date: 2013
  26. By: Lindahl, Mikael (Uppsala University, CESifo, IFAU, IZA and UCLS); Palme, Mårten (Dept. of Economics, Stockholm University); Sandgren Massih, Sofia (Uppsala University); Sjögren, Anna (IFAU, UCLS and SOFI Stockholm University)
    Abstract: We estimate the well-known Becker-Tomes (1986) model of intergenerational transmission of human capital. A Swedish data set which links individual measures on educational attainments of four generations, enables us to use great grandparents’ education as an instrumental variable. This approach was suggested already in Becker- Tomes (1986) but, because of the lack of data, never implemented. The identifying assumption, which holds within the Becker-Tomes framework, is that great grandparents’ education is unrelated to great grandchild’s education, conditional on the education of the parent and grandparent. We test the prediction that the structural parameter for grandparents’ education enters with a negative sign in an intergenerational regression model where the education of a child is linearly related to the education of the parent and the education of the grandparent. We fail to find empirical support for the model’s predictions.
    Keywords: The Becker-Tomes model; Human capital transmission; Multigenerational effects
    JEL: D31 J62
    Date: 2013–01–16
  27. By: Brice Corgnet; Roberto Hernán; Praveen Kujal; David Porter
    Abstract: Can “house money” explain asset market bubbles? We test this hypothesis in an asset experiment with a certain dividend cash and shares is given to subjects initial portfolios are constructed using subject that bubbles still occur; however trading volumes are significantly abated and the dispersion of earnings is significantly lower when subjects earn their starting endowments. We investigate the role of cognitive ability in accounting for the differences in earnings distribution across treatments by using the Cognitive Reflection Test (CRT). We find that high CRT subjects earned more money on average than the initial value of their portfolio while low CRT subjects earned less. Subjects with low CRT scores were net purchasers (sellers) of shares when the price was above (below) fundamental value while the opposite was true for subjects with high CRT scores.
    Date: 2013–02

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