nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2013‒08‒10
thirty papers chosen by
Steve Ross
University of Connecticut

  1. Causality in the Link Between Road Network Growth and Regional Development By Michael Iacono; David Levinson
  2. The Spatial Business Landscape of India By Vaz, Eric
  3. A Graph Theory Approach for Geovisualization of Anthropogenic Land Use Change: An Application to Lisbon By Vaz, Eric; Aversa, Joseph
  4. Regional resilience By Jeffrey Lin
  5. A Regional Spatial-retrofitting Approach (RSRA) to Geovisualise Regional Urban Growth: An Application to the Golden Horseshoe in Canada By Vaz, Eric; Buckland, Amy; Worthington, Kevin
  6. Ethnic Unemployment Rates and Frictional Markets By Laurent Gobillon; Peter Rupert; Etienne Wasmer
  7. The Costs of Agglomeration: Land Prices in French Cities By Pierre-Philippe Combes; Gilles Duranton; Laurent Gobillon
  8. Catalysts And Magnets: Built Environment Effects On Bicycle Commuting By Jessica Schoner; Xinyu (Jason) Cao; David Levinson
  9. Catholic School Effectiveness in Australia: A Reassessment Using Selection on Observed and Unobserved Variables By Buly A. Cardak; Joe Vecci
  10. Stand and Deliver: Effects of Boston's Charter High Schools on College Preparation, Entry, and Choice By Joshua D. Angrist; Sarah R. Cohodes; Susan M. Dynarski; Parag A. Pathak; Christopher R. Walters
  11. Spatial, temporal and size distribution of freight train delays: evidence from Sweden By Krüger, Niclas A.; Vierth , Inge; Fakhraei Roudsari, Farzad
  12. Networks of innovators within and across borders. Evidence from patent data By Andrea Morescalchi; Fabio Pammolli; Orion Penner; Petersen Alexander M.
  13. Evaluating the law of one price using micro panel data By Laurent Gobillon; François Charles Wolff; Patrice Guillotreau
  14. A Multi-Dasymetric Mapping Approach for Tourism By Vaz, Eric; Campos, Ana Claudia
  15. A survival analysis-based choice set formation approach for single-destination choice using GPS travel data By Arthur (Yan) Huang; David Levinson
  16. Isolated capital cities and misgovernance: Theory and evidence By Guimaraes, Bernardo; CAMPANTE, FILIPE R.; DO, Quoc-Anh
  17. Giving and Sorting among Friends: Evidence from a Lab-in-the-Field Experiment By Binzel, Christine; Fehr, Dietmar
  18. Reasons for Persistent Absenteeism among Irish Primary School Pupils By Darmody, Merike; Thornton, Maeve; McCoy, Selina
  19. Which Station? Access Trips and Bike Share Route Choice By Jessica Schoner; David Levinson
  20. Incremental Accessibility Benefits and HOT Lane Subscription Choice By Andrew Owen; David Levinson
  21. Neighbourhood Effects on Migrant Youth's Educational Commitments: An Enquiry into Personality Differences By Nieuwenhuis, Jaap; Hooimeijer, Pieter; van Ham, Maarten; Meeus, Wim
  22. Creativity, cities and innovation By Lee, Neil; Rodríguez-Pose, Andrés
  23. HOT or Not: Driver Elasticity to Price on the MnPASS HOT Lanes By Michael Janson; David Levinson
  24. Proximity to Hubs of Expertise in Financial Analyst Forecast Accuracy By Elisa Cavezzali; Jacopo Crepaldi; Ugo Rigoni
  25. Modeling the Commute Mode Share of Transit Using Continuous Accessibility to Jobs By Andrew Owen; David Levinson
  26. Regional Policy Evaluation: Interactive Fixed Effects and Synthetic Controls By Laurent Gobillon; Thierry Magnac
  27. Regional Analysis of Out-of-School Children in Romania By Caragea, Nicoleta
  28. Looking for PeripheRurality By Beatrice Camaioni; Roberto Esposti; Antonello Lobianco; Francesco Pagliacci; Franco Sotte
  29. Changing Eating Habits – A Field Experiment in Primary Schools. By Michèle Belot (University of Edinburgh), Jonathan James (University of Bath) and Patrick Nolen (University of Essex)
  30. Internal Labour Market Mobility in 2005-2011: The Case of Latvia By Ieva Brauksa; Ludmila Fadejeva

  1. By: Michael Iacono; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: This paper investigates the relationship between the growth of road networks and regional development. We test for mutual causality between the growth of road networks (which are divided functionally into local roads and highways) and changes in county-level population and employment. We employ a panel data set containing observations of road mileage by type for all Minnesota counties over the period 1988 to 2007 to fit a model describing changes in road networks, population and employment. Results indicate that causality runs in both directions between population and local road networks, while no evidence of causality in either direction is found for networks and local employment. We interpret the findings as evidence of a weakening influence of road networks (and transportation more generally) on location, and suggest methods for refining the empirical approach described herein.
    Keywords: network expansion, economic evaluation, regional growth, rural development, economic development
    JEL: O18 R42 R48
    Date: 2013
  2. By: Vaz, Eric (Ryerson University)
    Abstract: India has in the last decade become of the fastest growing entrepreneurial landscapes in the world. With a total population of almost 1.2 billion inhabitants, it has developed from a rural economy into a highly competitive market. This study analyses the spatial configuration across the country from a regional perspective, offering an assessment of the spatial autocorrelation of business as to understand the spatial configuration of what I define as a regional-spatial business landscape. In this study, the patterns of distribution of all the registered Indian businesses are assessed counting a total of 6500 registered businesses from 1850 to 2010, which were geocoded and imported into a Geographic Information System environment. A geostatistical analysis is conducted measuring business growth and performance at a national level by means of a Global Moran’s I calculation and followed by assembling a Local Getis-Ord for regional assessment of correlation of road networks. These local spatial statistics reveal clustering of hot spots within threshold distances of road concentrations, suggesting a positive relation between location of businesses and concentration of road networks. The agglomeration of Indian businesses becomes defined by the importance of road infrastructures to allow commutes and interaction of businesses. As a result, it becomes possible to see that India’s business landscape is far from homogenous, and responds well to Weber’s theory of industrial agglomeration, while predicting possible interfirm collaboration. These business hubs in the business landscape are assessed at national level through spatial autocorrelation and then regionally diagnosed by identifying hot spots of business location given business density, and bringing to light the precise location of India’s business hubs from a spatial business landscape perspective at present.
    Keywords: Business Landscape; GIS; Spatial Analysis; Geostatistics
    JEL: Q01 R52
    Date: 2013–08–02
  3. By: Vaz, Eric (Ryerson University); Aversa, Joseph (Ryerson University)
    Abstract: Urban sprawl and growth has experienced increased concern in geographic and environmental literature. Preceding the existence of robust frameworks found in regional and urban planning, as well as urban geography and economics, the spatial properties of allocation of urban land use are still far from being completely understood. This is largely due to the underlying complexity of the change found at the spatial level of urban land use, merging social, economic and natural drivers. The spatial patterns formed, and the Connectivity established among the different subsets of land-use types, becomes a complex network of interactions over time, helping to shape the structure of the city. The possibility to merge the configuration of land-use with complex networks may be assessed elegantly through graph theory. Nodes and edges can become abstract representations of typologies of Space and are represented into a topological space of different land use types which traditionally share common spatial boundaries. Within a regional framework, the links between adjacent and neighboring urban land use types become better understood, by means of a Kamada-Kawai algorithm. This study uses land use in Lisbon over three years, 1990, 2000 and 2006, to develop a Kamada-Kawai graph interpretation of land-use as a result of neighboring power. The rapid change witnessed in Lisbon since the nineties, as well as the availability of CORINE Land Cover data in these three time stamps, permits a reflection on anthropogenic land-use change in urban and semi-urban areas in Portugal’s capital. This paper responds to (1) the structure and connectivity of urban land use over time, demonstrating that most of the agricultural land is stressed to transform to urban, gaining a central role in future. (2) Offer a systemic approach to land-use transitions generating what we call spatial memory, where land use change is often unpredictable over space, but becomes evident in a graph theory framework, and (3) advance in the geovisual understanding of spatial phenomena in land use transitions by means of graph theory. Thus, the structure of this combined Method enables urban and landscape to have a better understanding of the spatial interaction of land-use types within the city, promoting an elegant solution to rapid geovisualization for land-use management in general.
    Keywords: Graph Theory; Spatial Interaction; Urban Change; Land Use Change
    JEL: R11 R14 R52 R58
    Date: 2013–08–02
  4. By: Jeffrey Lin (Federal Reserve Bank of Philadelphia)
    Abstract: In this paper, I study long-run population changes across U.S. metropolitan areas. First, I argue that changes over a long period of time in the geographic distribution of population can be informative about the so-called \resilience" of regions. Using the censuses of population from 1790 to 2010, I find that persistent declines, lasting two decades or more, are somewhat rare among metropolitan areas in U.S. history, though more common recently. Incorporating data on historical factors, I find that metropolitan areas that have experienced extended periods of weak population growth tend to be smaller in population, less industrially diverse, and less educated. These historical correlations inform the construction of a regional resilience index.
    Keywords: City growth, metropolitan areas, persistence
    JEL: N91 N92 R11 R12 R23
    Date: 2013
  5. By: Vaz, Eric (Ryerson University); Buckland, Amy (Ryerson University); Worthington, Kevin (Ryerson University)
    Abstract: Understanding urban change in particular for larger regions has been a great demur in both regional planning and geography. One of the main challenges has been linked to the potential of modelling urban change. The absence of spatial data and size of areas of study limit the traditional urban monitoring approaches, which also do not take into account visualization techniques that share information with the community. This is the case of the Golden Horseshoe in southern Ontario in Canada, one of the fastest growing regions in North America. An unprecedented change on the urban environment has been witnessed, leading to an increased importance of awareness for future planning in the region. With a population greater than 8 million, the Golden Horseshoe is steadily showing symptoms of becoming a mega-urban region, joining surrounding cities into a single and diversified urban landscape. However, little effort has been done to understand these changes, nor to share information with policy makers, stakeholders and investors. These players are in need of the most diverse information on urban land use, which is seldom available from a single source. The spatio-temporal effect of the growth of this urban region could very well be the birth of yet another North American megacity. Therefore, from a spatial perspective there is demand for joint collaboration and adoption of a regional science perspective including land cover and spatio-temporal configurations. This calls forth a novel technique that allows for assessment of urban and regional change, and supports decision-making without having the usual concerns of locational data availability. It is this sense, that we present a spatial-retrofitting model, with the objective of (i) retrofitting spatial land use based on current land use and land cover, and assessing proportional change in the past, leading to four spatial timestamps of the Golden Horseshoe’s land use, while (ii) integrating this in a multi-user open source web environment to facilitate synergies for decision-making. This combined approach is referred to as a regional-spatial-retrofitting approach (RSRA), where the conclusions permit accurate assessment of land use in past time frames based on Landsat imagery. The RSRA also allows for a collective vision of regional urban growth supporting local governance through a decision-making process adhering to Volunteered Geographic Information Systems. Urban land use change can be refined by means of contribution from end-users through a web environment, leading to a constant understanding and monitoring of urban land use and urban land use change.
    Keywords: Golden Horseshoe; Land Use Change; Regional Management; Urban Growth
    JEL: O44 R11 R52
    Date: 2013–08–02
  6. By: Laurent Gobillon (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales [EHESS] - Ecole des Ponts ParisTech - Ecole normale supérieure de Paris - ENS Paris - Institut national de la recherche agronomique (INRA), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, INED - Institut National d'Etudes Démographiques Paris - INED); Peter Rupert (University of California, Santa Barbara - University of California, Santa Barbara); Etienne Wasmer (IEP Paris - Sciences Po Paris - Institut d'études politiques de Paris - Institut d'Études Politiques [IEP] - Paris - PRES Sorbonne Paris Cité - Fondation Nationale des Sciences Politiques [FNSP], LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques - Sciences Po : PARIS)
    Abstract: The unemployment rate in France is roughly 6 percentage points higher for African immigrants than for natives. In the US the unemployment rate is approximately 9 percentage points higher for blacks than for whites. Commute time data indicates that minorities face longer commute times to work, potentially reecting more di cult access to jobs. In this paper we investigate the impact of spatial mismatch on the unemployment rate of ethnic groups using the matching model proposed by Rupert and Wasmer (2012). We nd that spatial factors explain from 1 to 1.5 percentage points of the unemployment rate gap in both France and the US, amounting to 17% to 25% of the relative gap in France and about 10% to 17.5% in the US. Among these factors, di erences in commuting distance play the most important role. In France, though, longer commuting distances may be mitigated by higher mobility in the housing market for African workers. Overall, we still conclude that labor market factors remain the main explanation for the higher unemployment rate of Africans.
    Keywords: Discrimination ; Ethnic groups ; Local markets ; Matching models
    Date: 2013–07–30
  7. By: Pierre-Philippe Combes (Université d'Aix-Marseille - PRES Aix Marseille Université, CEPR - Center for Economic Policy Research - CEPR); Gilles Duranton (Wharton School, University of Pennsylvania - University of Pennsylvania); Laurent Gobillon (CEPR - Center for Economic Policy Research - CEPR, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales [EHESS] - Ecole des Ponts ParisTech - Ecole normale supérieure de Paris - ENS Paris - Institut national de la recherche agronomique (INRA), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, INED - Institut National d'Etudes Démographiques Paris - INED, IZA - Institute for the Study of Labor - IZA)
    Abstract: We develop a new methodology to estimate the elasticity of urban costs with respect to city population using French land price data. Our preferred estimate, which handles a number of estimation concerns, stands at 0.041. Our approach also yields a number of intermediate outputs of independent interest such as a distance gradient for land prices and the elasticity of unit land prices with respect to city population. For the latter, our preferred estimate is 0.72.
    Keywords: Urban costs ; Land prices ; Land use ; Agglomeration
    Date: 2013–07–30
  8. By: Jessica Schoner; Xinyu (Jason) Cao; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: What effects do bicycle infrastructure and the built environment have on people’s decisions to commute by bicycle? While many studies have considered this question, commonly employed methodologies fail to address the unique statistical challenge of modeling such a low mode share. Additionally, self selection effects that are not adequately accounted for may lead to overestimation of built environment impacts. This study addresses these two key issues by using a zero-inflated negative binomial model to jointly estimate participation in and frequency of commuting by bicycle, controlling for demographics, residential preferences, and travel attitudes. The findings suggest a strong self-selection effect and modest contributions of bicycle accessibility: that bicycle lanes act as “magnets" to attract bicyclists to a neighborhood, rather than being the “catalyst" that encourages non-bikers to shift modes. The results have implications for planners and policymakers attempting to increase bicycling mode share via the strategic infrastructure development.
    Keywords: travel behavior, bicycling, housing choice, self-selection
    JEL: R21 R42
    Date: 2013
  9. By: Buly A. Cardak (School Economics, La Trobe University); Joe Vecci (School of Economics, Monash University)
    Abstract: This paper provides new estimates of the effect of Catholic school attendance on high schoolcompletion and university commencement and completion for Australian students. First, an instrumental variables approach is adopted where the probability of Catholic affiliation is used as an instrument. Consistent with the recent US literature, results based on this instrument are mixed. Instead, bounds are placed on the Catholic school effect using the assumption of equality between selection on observables and unobservables. The effect of Catholic school attendance is found to be smaller than previous results and negative treatment effects cannot be ruled out. Recent improvements in public school outcomes may have contributed to the smaller Catholic school effects.
    Keywords: Catholic Schools, High School Completion, University Attendance, Selection Bias
    JEL: I21
    Date: 2013
  10. By: Joshua D. Angrist; Sarah R. Cohodes; Susan M. Dynarski; Parag A. Pathak; Christopher R. Walters
    Abstract: We use admissions lotteries to estimate the effects of attendance at Boston's charter high schools on college preparation, college attendance, and college choice. Charter attendance increases pass rates on the high-stakes exam required for high school graduation in Massachusetts, with especially large effects on the likelihood of qualifying for a state-sponsored college scholarship. Charter attendance has little effect on the likelihood of taking the SAT, but shifts the distribution of scores rightward, moving students into higher quartiles of the state SAT score distribution. Boston's charter high schools also increase the likelihood of taking an Advanced Placement (AP) exam, the number of AP exams taken, and scores on AP Calculus tests. Finally, charter attendance induces a substantial shift from two- to four-year institutions, though the effect on overall college enrollment is modest. The increase in four-year enrollment is concentrated among four-year public institutions in Massachusetts. The large gains generated by Boston's charter high schools are unlikely to be generated by changes in peer composition or other peer effects.
    JEL: I21 I23 I24 I28
    Date: 2013–07
  11. By: Krüger, Niclas A. (VTI); Vierth , Inge (VTI); Fakhraei Roudsari, Farzad (TRENoP)
    Abstract: This paper analyzes how freight train delays are distributed with respect to size, location and time of their occurrence. Arrival delays are analyzed in detail using data covering all freight train departures and arrivals during 2008 and 2009 in Sweden. Moreover, the link between capacity usage and expected delay is analyzed using the fact that demand fluctuates on different time scales, especially due to the economic chock in 2009. Since the distribution of delays on different scales describe reliability and vulnerability in the rail transport system, the results have potentially important policy implications for rail investment appraisal.
    Keywords: Fat-tails; Freight; Delays; Rail; Reliability; Vulnerability
    JEL: R41
    Date: 2013–08–05
  12. By: Andrea Morescalchi (IMT Lucca Institute for Advanced Studies); Fabio Pammolli (IMT Lucca Institute for Advanced Studies); Orion Penner (IMT Lucca Institute for Advanced Studies); Petersen Alexander M. (IMT Lucca Institute for Advanced Studies; IMT Lucca Institute for Advanced Studies and Department of Managerial Economics, Strategy and Innovation, K.U. Leuven)
    Abstract: Recent studies on the geography of knowledge networks have documented a negative impact of physical distance and institutional borders upon research and development (R&D) collaborations. Though it is widely recognized that geographic constraints hamper the diffusion of knowledge, less attention has been devoted to the temporal evolution of these constraints. In this study we use data on patents filed with the European Patent Office (EPO) for 50 countries to analyze the impact of physical distance and country borders on inter-regional links in four different networks over the period 1988-2009: (1) co-inventorship, (2) patent citations, (3) inventor mobility and (4) the location of R&D laboratories. We find the constraint imposed by country borders and distance decreased until mid-1990s then started to grow, particularly for distance. The intensity of European cross-country inventor collaborations increased at a higher pace than their non-European counterparts until 2004, with no significant relative progress afterwards. Moreover, when analyzing networks of geographical mobility, multinational R&D activities and patent citations we do not depict any substantial progress in European research integration aside from the influence of common global trends.
    Keywords: Geography of knowledge; Networks of Innovators; European integration; Spatial proximity; Crossborder collaboration; Gravity model
    JEL: O30 R10 R23
    Date: 2013–08
  13. By: Laurent Gobillon (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales [EHESS] - Ecole des Ponts ParisTech - Ecole normale supérieure de Paris - ENS Paris - Institut national de la recherche agronomique (INRA), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, INED - Institut National d'Etudes Démographiques Paris - INED); François Charles Wolff (INED - Institut National d'Etudes Démographiques Paris - INED, LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); Patrice Guillotreau (INED - Institut National d'Etudes Démographiques Paris - INED, LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272)
    Abstract: This paper investigates spatial variations in product prices using an exhaustive micro dataset on fish transactions. The data record all transactions between vessels and wholesalers that occur on local fish markets in France during the year 2007. Spatial disparities in fish prices are sizable, even after fish quality, time, seller and buyer unobserved heterogeneity have been taken into account. The price difference between local fish markets can be explained to some extent by distance, but mostly by a coast effect (analogous to a border effect in the literature on the law of one price) related to separate location on the Atlantic and Mediterranean coasts. In particular, fish and crustacean prices are 34% higher on the Mediterranean coast. The law of one price is verified for almost all species when considering only local fish markets on the Atlantic coast.
    Keywords: Fish ; Commodity price ; Local markets ; Panel data
    Date: 2013–07–30
  14. By: Vaz, Eric (Ryerson University); Campos, Ana Claudia (University of Algarve)
    Abstract: The challenge of measuring at municipal level tourism density has been a daunting task for both statisticians and geographers. The reason of this is enforced by the fact that administrative areas, such as municipalities, tend to be large spatial administrative units, sharing a large demographic asymmetry of tourist demand within the municipality. The rationale is that geographic characteristics such as coastal line, climate and vegetation, play a crucial role in tourist offer, leaning towards the conclusion that traditional census at administrative Level are simply not enough to interpret the true distribution of tourism data. A more quantifiable method is necessary to assess the distribution of socio-economic data. This is developed by means of a dasymetric approach adding on the advantages of multi-temporal comparison. This paper adopts a dasymetric approach for defining tourism density per land use types using the CORINE Land Cover dataset. A density map for tourism is calculated, creating a modified areal weighting (MAW) approach to assess the distribution of tourism density per administrative municipality. This distribution is then assessed as a bidirectional layer on the land use datasets for two temporal stamps: 2000 and 2006, which leads to (i) a consistent map on a more accurate distribution of tourism in Algarve, (ii) the calculation of tourism density surfaces, and (iii) a multi-locational and temporal assessment through density crosstabulation. Finally a geovisual interpretation of locational analysis of tourism change in Algarve for the last decade is created. This integrative spatial methodology offers unique characteristics for more accurate decision making at regional level, bringing an integrative methodology to the forefront of linking tourism with the spatio-temporal clusters formed in rapidly changing economic regions.
    Keywords: Dasymetric Mapping; Tourism Density; Land Use Dynamics; Tourism Analysis
    JEL: L83 O44 R12 R15 R52
    Date: 2013–08–02
  15. By: Arthur (Yan) Huang; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: WThis research investigates how land use and road network structure influence home-based single-destination choice in the context of trip chains, using the in-vehicle GPS travel data in the Minneapolis-St. Paul Metropolitan area. We propose a new choice set formation approach which combines survival analysis and random selection. Our empirical findings reveal that: (1) Accessibility and diversity of services at the destination influences individuals’ destination choice. (2) Route-specific network measures such as turn index, speed discontinuity, and trip chains’ travel time saving ratio also display statistically significant effects on destination choice. Our approach contributes to methodologies in modeling destination choice. The results improve our understanding on travel behavior and have implications on transportation and land use planning.
    Keywords: destination choice, GPS, accessibility, non-work travel
    JEL: R14 R41 R42
    Date: 2013
  16. By: Guimaraes, Bernardo; CAMPANTE, FILIPE R.; DO, Quoc-Anh
    Abstract: Motivated by a novel stylized fact { countries with isolated capital cities display worse quality of governance { we provide a framework of endogenous institutional choice based on the idea that elites are constrained by the threat of rebellion, and that this threat is rendered less e ective by distance from the seat of political power. In established democracies, the threat of insurgencies is not a binding constraint, and the model predicts no correlation between isolated capitals and misgovernance. In contrast, a correlation emerges in equilibrium in the case of autocracies. Causality runs both ways: broader power sharing (associated with better governance) means that any rents have to be shared more broadly, hence the elite has less of an incentive to protect its position by isolating the capital city; conversely, a more isolated capital city allows the elite to appropriate a larger share of output, so the costs of better governance for the elite, in terms of rents that would have to be shared, are larger. We show evidence that this pattern holds true robustly in the data. We also show that isolated capitals are associated with less power sharing, a larger income premium enjoyed by capital city inhabitants, and lower levels of military spending by ruling elites, as predicted by the theory.
    Date: 2013–08–02
  17. By: Binzel, Christine (Heidelberg University); Fehr, Dietmar (WZB - Social Science Research Center Berlin)
    Abstract: Among residents of an informal housing area in Cairo, we examine how dictator giving varies by the social distance between subjects – friend versus stranger – and by the anonymity of the dictator. While giving to strangers is high under anonymity, we find – consistent with Leider et al. (2009) – that (i) a decrease in social distance increases giving, (ii) giving to a stranger and to a friend is positively correlated, and (iii) more altruistic dictators increase their giving less under non-anonymity than less altruistic dictators. However, friends are not alike in their altruistic preferences, suggesting that an individual's intrinsic preferences may not necessarily be shaped by his (or her) peers. Instead, reciprocal motives seem important, indicating that social relationships may be valued differently when individuals are financially dependent on them.
    Keywords: social distance, reciprocity, giving, networks, sorting
    JEL: C93 D64 L14 O12
    Date: 2013–07
  18. By: Darmody, Merike; Thornton, Maeve; McCoy, Selina
    Date: 2013–06
  19. By: Jessica Schoner; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: Bike share systems are an emerging technology in the United States and worldwide, but little is known about how people integrate bike share trip segments into their daily travel. Through this research, we attempt to fill this knowledge gap by studying how people navigate from place to place using the Nice Ride Minnesota bike share system in Minneapolis and St. Paul. We develop a theoretical model for bike share station choice inspired by research on transit route choice literature. We then model people’s choice of origin station using a conditional logit model to evaluate their sensitivity to time spent walking, deviation from the shortest path, and a set of station amenity and neighborhood control variables. As expected, people prefer to use stations that do not require long detours out of the way to access. However, commuters and non-work travelers differ in how they value the walking portion of their trip, and what station amenities and neighborhood features increase a station’s utility. The results from this study will be important for planners who need a better understanding of bike share user behavior in order to design or optimize their system. The findings also provide a strong foundation for future study about comprehensive route choice analysis of this new bicycling technology.
    Keywords: destination choice, station choice, bicycling, bike sharing
    JEL: R41 R42
    Date: 2013
  20. By: Andrew Owen; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: This paper presents the results of an investigation into the factors contributing to toll lane subscription choice using data from the MnPASS HOT lane system operated by the Minnesota Department of Transportation. A binomial logit model is estimated which predicts the likelihood that a household will have a subscription to the MnPASS system based on aggregate characteristics of the surrounding area. Variables in this model include demographic factors as well as an estimate of the incremental accessibility benefit provided by the MnPASS system. This benefit is estimated using detailed accessibility calculations. The model achieves a pseudo-r-squared value of 0.634, and analysis of the results suggest that incremental accessibility benefits play a statistically and practically significant role in determining how likely households are to hold a toll lane subscription.
    Keywords: road pricing, travel behavior, subscription choice, HOT lanes, accessibility
    JEL: O18 R48
    Date: 2013
  21. By: Nieuwenhuis, Jaap (Utrecht University); Hooimeijer, Pieter (Utrecht University); van Ham, Maarten (Delft University of Technology); Meeus, Wim (Utrecht University)
    Abstract: In the neighbourhood effects literature, the socialisation mechanism is usually investigated by looking at the association between neighbourhood characteristics and educational attainment. The step in between, that adolescents actually internalise educational norms held by residents, is often assumed. We attempt to fill this gap by looking at how educational commitments are influenced by neighbourhood characteristics. We investigate this process for migrant youth, a group that lags behind in educational attainment compared to native youth, and might therefore be particularly vulnerable to neighbourhood effects. To test our hypothesis we used longitudinal panel data with five waves (N=4179), combined with fixed-effects models which control for a large portion of potential selection bias. These models have an advantage over naïve OLS models in that they predict the effect of change in neighbourhood characteristics on change in educational commitment, and therefore offer a more dynamic approach to modelling neighbourhood effects. Our results show that living in neighbourhoods with higher proportions of immigrants increases the educational commitments of migrant youth compared to living in neighbourhoods with lower proportions. Besides, we find that adolescents with a resilient personality experience less influence of the neighbourhood context on educational commitments than do adolescents with other personalities.
    Keywords: neighbourhood effects, educational commitment, adolescents, personality, migrant youth, fixed effects
    JEL: I24 J15 R23
    Date: 2013–07
  22. By: Lee, Neil; Rodríguez-Pose, Andrés
    Abstract: The creative industries have long been seen as an innovative sector. More recent research posits that creative occupations are also a fundamental, but overlooked, driver of innovation. Theory also suggests cities are important for both creative industries and occupations, with urban environments helping firms innovate. Yet little empirical work has considered the links between creative industries, occupations, cities and innovation at the firm level. This paper addresses this gap using a sample of over 9,000 UK SMEs. Our results stress that creative industries firms are more likely to introduce original product innovations, but not those learnt from elsewhere. Creative occupations, however, appear a more robust general driver of innovation. We find no support for the hypothesis that urban creative industries firms are particularly innovative. However, creative occupations are used in cities to introduce product innovations learnt elsewhere. The results suggest future work needs to seriously consider the importance of occupations in empirical studies of innovation.
    Keywords: Innovation; Creative Industries; Creative Occupations; Cities; Learning
    JEL: O31 O38 R11 R58
    Date: 2013–07
  23. By: Michael Janson; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: The Minnesota Department of Transportation (MnDOT) has added MnPASS High Occupancy Toll (HOT) lanes on two freeway corridors. While not the first HOT lanes in the country, the MnPASS lanes are the first implementation of road pricing in Minnesota and possess a dynamic pricing schedule. Tolls charged to single occupancy vehicles (SOVs) are adjusted every three minutes according to HOT lane vehicle density. Given the infancy of systems like MnPASS, questions remain about drivers’ responses to toll prices. Three field experiments were conducted on the corridors during which prices were changed. Data from the field experiments as well as two years of toll and traffic data were analyzed to measure driver responses to pricing changes. Driver elasticity to price was positive with magnitudes less than 1.0. This positive relationship between price and demand is in contrast with the previously held belief that raising the price would discourage demand. We hypothesize this is because drivers use price as a signal of time savings. In addition, drivers consistently paid between approximately $60-120 per hour of travel time savings, much higher than the average value of time. Reasoning for these results is discussed as well as the implications these results have on the pricing of HOT lanes.
    Keywords: transport economics, HOT Lanes, road pricing,
    JEL: O18 R48
    Date: 2013
  24. By: Elisa Cavezzali (Università Ca' Foscari Venice); Jacopo Crepaldi; Ugo Rigoni (Università Ca' Foscari Venice)
    Abstract: This paper investigates whether the geographical proximity of financial analysts to hubs of information and expertise can influence their forecasting accuracy. Recent studies show that the financial analyst forecasting process show a systematic difference in earnings forecast accuracy dependent on the geographical distance of analysts from the companies which they follow. The literature argues that local analysts issue more accurate forecasts because they have an informational advantage over analysts who are further away. Industrial centres can constitute important knowledge spillovers by creating formal and informal networks amongst firms and higher education and research institutions. In such a hub, information can easily flow and propagate. Our hypothesis is that physical proximity to these hubs, and not to the companies they follow, is an advantage for financial analysts, leading to the issue of more accurate forecasts. Using a sample of 205 observations related to 33 firms, across seven countries and ten sectors, our results are consistent with the hypothesis. Even though preliminary, and probably in part biased by sample selection issues, overall, the empirical evidence confirms the benefit of being part of a network, formal or informal, in which information, knowledge and expertise sharing can flow easily. We try to give some new evidence on what can cause variations in financial analyst accuracy by exploring these concepts, well known and analysed in other fields, but new in the context of financial analysts.
    Keywords: forecast accuracy, sell-side analysts, geography, hubs of knowledge
    JEL: M40 M41
    Date: 2013–08
  25. By: Andrew Owen; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: This paper presents the results of an accessibility-based model of aggregate commute mode share, focusing on the share of transit relative to auto. It demonstrates the use of continuous accessibility — calculated continuously in time, rather than at a single or a few departure times — for the evaluation of transit systems. These accessibility calculations are accomplished using only publicly-available data sources. A binomial logit model is estimated which predicts the likelihood that a commuter will choose transit rather than auto for a commute trip based on aggregate characteristics of the surrounding area. Variables in this model include demographic factors as well as detailed accessibility calculations for both transit and auto. The model achieves a Ï2 value of 0.597, and analysis of the results suggests that continuous accessibility of transit systems may be a valuable tool for use in modeling and forecasting.
    Keywords: travel behavior, accessibility, mode choice
    JEL: R14 R41 R42
    Date: 2013
  26. By: Laurent Gobillon (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales [EHESS] - Ecole des Ponts ParisTech - Ecole normale supérieure de Paris - ENS Paris - Institut national de la recherche agronomique (INRA), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, INED - Institut National d'Etudes Démographiques Paris - INED); Thierry Magnac (TSE - Toulouse School of Economics - Toulouse School of Economics)
    Abstract: In this paper, we investigate the use of interactive e¤ect or linear factor models in regional policy evaluation. We contrast treatment effect estimates obtained by Bai (2009)'s least squares method with the popular difference in difference estimates as well as with estimates obtained using synthetic control approaches as developed by Abadie and coauthors. We show that difference in differences are generically biased and we derive the support conditions that are required for the application of synthetic controls. We construct an extensive set of Monte Carlo experiments to compare the performance of these estimation methods in small samples. As an empirical illustration, we also apply them to the evaluation of the impact on local unemployment of an enterprise zone policy implemented in France in the 1990s.
    Keywords: Policy evaluation ; Linear factor models ; Synthetic controls ; Economic geography ; Enterprise zones
    Date: 2013–07
  27. By: Caragea, Nicoleta
    Abstract: The current study consists of a regional analysis of children participation in education in Romania. From an administrative point of view, the country is organized in 41 counties and Bucharest city. The regional level emerged in the public policymaking only after 1989, when escaping a hyper-centralised system of government and under the influence of the accession process and regional policies of EU. Eight development regions were defined, partly following historical regions of Romania. The main regional development structures in Romania were created at national and regional level but in 2011 the Government proposed for public debate a new administrative organisation model, considering the current one not being effective. A special feature of Romania is the large share of its population living in rural areas (46%), significantly higher compared with EU average (24%). As we will see, this fact is relevant for our analysis, given the marked differences in the quality of social services provision (including education) between the two areas of residence. The analysis is part of the UNICEF and the UNESCO Institute for Statistics (UIS) Global Initiative Activities in order to stimulate more complex and more informed and monitored policy responses related to exclusion from education. In Romania, the study was carried out by specialists from Ministry of Education, Ministry of Labour and also experts from National Institute of Statistics and UNICEF Romania. The main data sources used were administrative and statistical data sources, like the Exhaustive Education Survey and the Household Budget Survey. The reference period of the analysis consisted from five academic years, from 2005-2006 to 2009-2010, using a set of standardized data tables.
    Keywords: out-of-school, development region, education, attending school, enrolment
    JEL: I21 I24
    Date: 2012
  28. By: Beatrice Camaioni; Roberto Esposti; Antonello Lobianco; Francesco Pagliacci; Franco Sotte
    Abstract: Rural areas still play a major role within the EU, as Europe is still a fairly rural continent. Moreover, EU rural areas are going through greater challenges and major transformations. After the Eastern enlargements of the EU (in 2004 and 2007), they are getting more and more heterogeneous, in terms of their main socio-economic features as well as of agricultural activities. According to this increasing heterogeneity, the traditional urban-rural divide can be now considered almost outdated (OECD, 2006). Indeed, a multidimensional approach is crucial in order to catch all the different features affecting trends and development of rural areas. For example, central rural regions in Continental countries sharply differ from more peripheral rural areas still facing major development issues. This research has highlighted the main dimensions affecting EU rural areas. First, some considerations on the main drivers of EU territorial development have been analysed. Then, throughout cluster analysis, specific typologies of EU rural areas have been identified. According to this classification, clear territorial patterns emerge. Actually, clusters of more central and more accessible regions are quite different from those clusters composed by more peripheral and lagging behind regions. Thus, geography still affects deeply both the economic performance of regions and their main socio-demographic trends (both in urban and rural areas). Moreover, by computing a comprehensive PeripheRurality (PR) Index, the existence of a more complex geography at the EU scale emerges. National approaches to rural and peripheral areas should be substituted by broader approaches, encompassing all the different territorial level of the analysis.
    Keywords: Economic growth path, EU integration, rural development, regional policy
    JEL: O18 R11 R58 Q01
    Date: 2013–07
  29. By: Michèle Belot (University of Edinburgh), Jonathan James (University of Bath) and Patrick Nolen (University of Essex)
    Abstract: We conduct a field experiment in 31 primary schools in England to test whether incentives to eat fruit and vegetables help children develop healthier habits. The intervention consists of rewarding children with stickers and little gifts for a period of four weeks for choosing a portion of fruit and vegetables at lunch. We compare the effects of two incentive schemes (competition and piece rate) on choices and consumption over the course of the intervention as well as once the incentives are removed and six months later. We find that the intervention had positive effects, but the effects vary substantially according to age and gender. However, we find little evidence of sustained long term effects, except for the children from poorer socio-economic backgrounds.
    Keywords: Incentives, Health, Habits, Child nutrition, Field experiment.
    JEL: J13 I18 I28 H51 H52
    Date: 2013–08–02
  30. By: Ieva Brauksa; Ludmila Fadejeva
    Abstract: This research gives an overview of labour market internal and occupational mobility in Latvia comparing periods before, during and after the crisis. It uses both the labour flow analysis and the survival analysis to evaluate labour mobility and to determine factors influencing it. The analysis is based on labour force survey (LFS) longitudinal data for 2005–2011. The paper investigates possible asymmetric responses of the labour market during the extreme period of economic boom and bust, provides detailed information on the aspects of labour market mobility (e.g. changes in the types of labour contract, sector and region of work) and factors determining changes in the status of economic activity (employed or unemployed). We also propose a new way for calculating labour market flows to provide information on quarterly changes.
    Keywords: labour flows, labour force survey, labour mobility, occupational mobility, unemployment
    JEL: J23 J61 J62 J64
    Date: 2013–08–03

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