nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2013‒10‒18
forty-two papers chosen by
Steve Ross
University of Connecticut

  1. School segregation, school choice and educational policies in 100 Hungarian towns By Gabor Kertesi; Gabor Kezdi
  2. Cultural Diversity, Cities and Innovation: firm Effects or City Effects? By Neil Lee
  3. The New Suburbs: Evolving travel behavior, the built environment, and subway investment in Mexico City By Guerra, Erick Strom
  4. Housing transfer taxes and household mobility: Distortion on the housing or labour market? By Teemu Lyytikäinen; Hilber; A. L. Christian
  5. Land Value Capture in Urban DRM Programs By Soumya Dharmavaram
  6. The neglected heterogeneity of spatial agglomeration and co-location patterns of creative employment: evidence from Portugal By Sara Santos Cruz; Aurora A.C. Teixeira
  7. Geography and social networks. Modelling the effects of territorial borders on policy networks By SOHN Christophe; CHRISTOPOULOS Dimitris; KOSKINEN Johan
  8. The short- and long-term effects of school choice on student outcomes – evidence from a school choice reform in Sweden By Wondratschek, Verena; Edmark, Karin; Frölich, Markus
  9. What Do Parents Want? An Exploration of School Preferences Expressed by Boston Parents By Glaeser, Ed; Poftak, Steve; Tobio, Kristina
  10. Negative equity and housing investment By Andrew Haughwout; Sarah Sutherland; Joseph Tracy
  11. Road pricing and public transport pricing reform in Paris: complements or substitutes? By Moez KILANI; Stefan PROOST; Saskia VAN DER LOO
  12. Does High Home-Ownership Impair the Labor Market? By Blanchflower, David G.; Oswald, Andrew J.
  13. Air Pollution Dynamics and the Need for Temporally Differentiated Road Pricing By Coria, Jessica; Bonilla, Jorge; Grundström, Maria; Pleijel, Håkan
  14. Measuring the Monetary Value of Social Relations: a Hedonic Approach By Emilio Colombo; Luca Stanca
  15. Pitfalls in estimating “wider economic benefits” of transportation projects By Yoshitsugu Kanemoto
  16. Do supply restrictions raise the value of urban land? The (neglected) role of production externalities By Satyajit Chatterjee; Burcu Eyigungor
  17. The long road to recovery: New York Schools in the aftermath of the Great Recession By Rajashri Chakrabarti; Max Livingston
  18. Still not out of the woods? New Jersey schools during the recession and beyond By Rajashri Chakrabarti; Max Livingston
  19. Instructional Practices and Student Achievement: Correlations from a Study of Math Curricula. By Douglas H. Clements; Roberto Agodini; Barbara Harris
  20. The relevance of commuting zones for regional spending efficiency By António Afonso; Ana Venâncio
  21. Technological spillovers and industrial growth in Chinese regions By Wang, Lili; Meijers, Huub; Szirmai, Eddy
  22. Are Public Research Spin-Offs More Innovative? By Stephan, Andreas
  23. Financing Growth without Banks: Korean Housing Repo Contract By Hyun Shin; Se-Jik Kim
  24. After Two Years, Three Elementary Math Curricula Outperform a Fourth. By Roberto Agodini; Barbara Harris; Neil Seftor; Janine Remillard; Melissa Thomas
  25. Do People Overreact? Evidence from the Housing Market After the Wenchuan Earthquake By Guoying Deng; Li Gan; Manuel A. Hernandez
  26. Typology of the French regional development: revealing the refugee/Schumpeter effects in new-firms startups By Rafik Abdesselam; Jean Bonnet; Patricia Renou-Maissant
  27. A question of efficiency: decomposing South African reading test scores using PIRLS 2006 By Debra Shepherd
  28. The long-run and intergenerational education impacts of intergovernmental transfers By Irineu de Carvalho Filho; Stephan Litschig
  29. The social impact of home rehabilitation in low-income neighborhoods By Erin Graves; Elizabeth Shuey
  30. Re-Examining the Impact of Housing Wealth and Stock Wealth on Houshold Spending: Does Persistence in Wealth Changes Matter By Richard A. Ashley; Guo Li
  31. Children's Consuption of Fruits and Vegetables: Do School Environment and Policies Affect Choices at School and Away from School? By Ariun Ishdorj; Mary Kay Crepinsek; Helen H. Jensen
  32. Preferences, Homophily, and Social Learning By Ilan Lobel; Evan Sadler
  33. Detecting and Forecasting Large Deviations and Bubbles in a Near-Explosive Random Coefficient Model By Banerjee, Anurag N.; Chevillon, Guillaume; Kratz, Marie
  34. The Kindergarten Attendance Allowance In Hungary - An evaluation of a conditional cash transfer program By Gabor Kertesi; Gabor Kezdi
  35. Regional Integration and Firm Location Choices: A Long Run Approach to the Cork Industry in the Iberian Peninsula By Francisco Parejo; Amélia Branco; João Carlos Lopes; José Rangel Preciado
  36. The East-West gradient in spatial population development within Germany: temporary GDR legacy vs. longstanding spatial disparities By Sebastian Klüsener; Emilio Zagheni
  37. Conforming and Non-conforming Peer Effects in Vaccination Decisions By Elizabeth Bodine-Baron; Sarah Nowak; Raffaello Varadavas; Neeraj Sood
  38. Changes in U.S. household balance sheet behavior after the housing bust and Great Recession: evidence from panel data By Daniel Cooper
  39. Road Traffic Accidents in Saudi Arabia: An ARDL Approach and Multivariate Granger Causality By Ageli, Mohammed Moosa
  40. Basic Education Public Expenditure Review Phase II : School Based Management in the Philippines, An Empirical Investigation By World Bank
  41. Payday lending regulation By Alex Kaufman
  42. Transportation choices and the value of statistical life By Gianmarco León; Edward Miguel

  1. By: Gabor Kertesi (Institute of Economics, Center for Economic and Regional Studies, Hungarian Academy of Sciences); Gabor Kezdi (Central European University and Institute of Economics, Center for Economic and Regional Studies, Hungarian Academy of Sciences)
    Abstract: The distribution of Roma and non-Roma students across schools has become considerably more unequal in Hungary since the 1980's. This paper analyzes the effect of school choice and local educational policies on that inequality, known as school segregation, in 100 Hungarian towns. We combine administrative data with data from a survey that we collected from municipality administrations with respect to local educational policies and the ethnic composition of neighborhoods. Our results indicate that in Hungarian towns, free school choice diminishes the role of residential distribution because many students commute to schools of their choice. Towns where such commuting is more pronounced are characterized by stronger inter-school inequalities. We also find that local educational policies have, on average, somewhat segregationist tendencies, though there is substantial heterogeneity across towns. The more segregationist the local policies are, the higher the segregation in the town, thus suggesting that local policies have room to influence school segregation in this system. However, the impact of local educational policies is weaker than the role of school choice.
    Keywords: School segregation, Roma minority, school choice, local educational policies
    JEL: I24 I28 J15
    Date: 2013–07
  2. By: Neil Lee
    Abstract: Growing cultural diversity is seen as important for innovation. Research has focused on two potential mechanisms: a firm effect, with diversity at the firm level improving knowledge sourcing or ideas generation, and a city effect, where diverse cities helping firms innovate. This paper uses a dataset of over 2,000 UK SMEs to test between these two. Controlling for firm characteristics, city characteristics and firm and city diversity, there is strong evidence for the firm effect. Firms with a greater share of migrant owners or partners are more likely to introduce new products and processes. This effect has diminishing returns, suggesting that it is a 'diversity' effect rather than simply the benefits of migrant run firms. However, there is no relationship between the share of foreign workers in a local labour market and firm level innovation, nor do migrant-run firms in diverse cities appear particularly innovative. But urban context does matter and firms in London with more migrant owners and partners are more innovative than others.
    Keywords: Cultural diversity, innovation, cities, SMEs, migration
    JEL: J61 L21 M13 R23
    Date: 2013–10
  3. By: Guerra, Erick Strom
    Abstract: Mexico City is a suburban metropolis, yet most of its suburbs would be unfamiliar to urbanists accustomed to thinking about US metropolitan regions. Mexico City’s suburbs are densely populated—not thinly settled—and its residents rely primarily on informal transit rather than privately-owned automobiles for their daily transportation. These types of dense and transitdependent suburbs have emerged as the fastest-growing form of human settlement in cities throughout Latin America, Asia, and Africa. Wealthier and at a later stage in its economic development than other developing-world metropolises, Mexico City is a compelling place to investigate the effects of rising incomes, increased car ownership, and transit investments in the dense, peripheral areas that have grown rapidly around informal transit in the past decades, and is a bellwether for cities like Dakar, Cairo, Lima, and Jakarta. I begin this dissertation with a historical overview of the demographic, economic, and political trends that have helped shape existing urban form, transportation infrastructure, and travel behavior in Mexico City. Despite an uptick in car ownership and use, most households—both urban and suburban—continue to rely on public transportation. Furthermore, suburban Mexico City has lower rates of car ownership and use than its central areas. In subsequent chapters, I frame, pose, and investigate three interrelated questions about Mexico City’s evolving suburban landscape, the nature of households’ travel decisions, and the relationship between the built environment and travel behavior. Together, these inquiries tell a story that differs significantly from narratives about US suburbs, and provide insight into the future transportation needs and likely effects of land and transportation policy in these communities and others like them in Mexico and throughout the developing world. First, how has the influence of the built environment on travel behavior changed as more households have moved into the suburbs and aggregate car use has increased? Using two large metropolitan household travel surveys from 1994 and 2007, I model two related-but-distinct household travel decisions: whether to drive on an average weekday, and if so, how far to drive. After controlling for income and other household attributes, I find that the influence of population and job density on whether a household undertakes any daily car trips is strong and has increased marginally over time. By contrast, high job and population densities have a much smaller influence on the total distance of weekday car travel that a household generates. For the subset of households whose members drive on a given weekday, job and population densities have no statistical effect at all. Contrary to expectations, a household’s distance from the urban center is strongly correlated with a lower probability of driving, even after controlling for income. This effect, however, appears to be diminishing over time, and when members of a household drive, they drive significantly more if they live farther from the urban center. The combination of informal transit, public buses, and the Metro has provided sufficient transit service to constrain car use in the densely populated suburban environments of Mexico City. Once suburban residents drive, however, they tend to drive a lot regardless of transit or the features of the built environment. Second, how much are the recent trends of increased suburbanization, rising carownership, and the proliferation of massive commercially-built peripheral housing developments interrelated? To investigate this question, I first disentangle urban growth and car ownership trends by geographic area. The fastest-growing areas tend to be poorer and have had a much smaller impact on the size of the metropolitan car fleet than wealthier, more established neighborhoods in the center and western half of the metropolis. I then zoom in to examine several recent commercial housing developments. These developments, supported by publiclysubsidized mortgages, contain thousands of densely-packed, small, and modestly-priced housing units. Their residents remain highly reliant on public transportation, particularly informal transit, and the neighborhoods become less homogenous over time as homeowners convert units and parking spaces to shops and offices. Finally, I use the 2007 household travel survey to model households’ intertwined decisions of where to live and whether to own a car. As expected, wealthier and smaller households are more likely to purchase vehicles. However, they prefer to live in more central areas where households with cars tend to drive shorter distances. If housing policy and production cannot adapt to provide more centrally-located housing, growing incomes will tend to increase car ownership but concentrate more of it in areas where car-owning households drive much farther. Third, how has the Metro’s Line B, one of the first and only suburban high-capacity transit investments, influenced local and regional travel behavior and land use? To explore this question, I compare travel behavior and land use measures at six geographic scales, including the investment’s immediate catchment area, across two time periods: six years before and seven years after the investment opened. Line B, which opened in stages in 1999 and 2000, significantly expanded Metro coverage into the densely populated and fast-growing suburban municipality of Ecatepec. While the investment sparked a significant increase in local Metro use, most of this increase came from people relying on informal transit, rather than cars. While this shift reduced transit fares and increased transit speeds for local residents, it also increased government subsidies for the Metro and had no apparent effect on road speeds. Furthermore, the Metro remains highly dependent on informal transit to provide feeder service even within Ecatepec. In terms of land use, the investment increased density around the stations but appears to have had little to no effect on downtown commercial development, where it might have been expected to have a significant influence. In short, the effects of Line B demonstrate much of the promise and problem with expanding high capacity transit service into the suburbs. Ridership is likely to be high, but so too will be the costs and subsidies, while the effects on car ownership and urban form are likely to be modest. Individually, each chapter contributes to a specific body of transportation and planning literature drawn from the US as well as developing countries. Collectively, they point to connection between land use and transportation in Mexico City that is different from the connection in US and other rich-world cities. In particular, there is a physical disconnect between the generally suburban homes of transit users and the generally central location of high-capacity public transit. Addressing this disconnect by shifting housing production from the periphery to the center or by expanding high-capacity transit to the periphery would require significant amounts of time and public subsidy. Thus, contemporary policies to reduce car use or increase accessibility for the poor in the short and medium term would do well to focus on improving the flexible, medium-capacity informal transit around which the city’s dense and transit-dependent suburbs have grown and continue to grow.
    Keywords: Arts and Humanities, Architecture
    Date: 2013–05–01
  4. By: Teemu Lyytikäinen; Hilber; A. L. Christian
    Abstract: We estimate the effect of the UK Stamp Duty Land Tax on household mobility using micro data. Exploiting a discontinuity in the tax schedule as a quasiexperimental setting, we isolate the impact of the stamp duty from other determinants of mobility. We compare homeowners with self-assessed house values on either sides of a cut-off value where the tax rate increases from 1 to 3 percent and find that a higher stamp duty strongly negatively affects their propensity to move. The 2 percentage-point increase in the stamp duty reduces the annual rate of mobility by between 2 and 3 percentage-points or about 30 percent. This adverse effect is confined to short-distance and non-job related moves, suggesting a distortion in the housing rather than the labour market. As a cross-validation check, we also analyse the distribution of actual transaction prices and find that the tax rate increase reduces the volume of sales by roughly 30 percent.
    Keywords: Stamp duty, housing transfer taxes, transaction costs, homeownership, household mobility
    JEL: R31 R21 J61 H27 H21 R38 D23
    Date: 2013–08–09
  5. By: Soumya Dharmavaram
    Keywords: Banks and Banking Reform Public Sector Economics Urban Development - Municipal Financial Management Public Sector Management and Reform Urban Development - Urban Housing Finance and Financial Sector Development Public Sector Development
    Date: 2013–07
  6. By: Sara Santos Cruz (CEF.UP, Faculdade de Economia, Universidade do Porto); Aurora A.C. Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC Porto; OBEGEF)
    Abstract: Empirical literature on the geographic location of creative activities is mostly based on the spatial analysis of industries, disregarding the creative employment that lies outside the necessarily limited boundaries of creative industries. In this paper, we analyse agglomeration and co-location patterns of core creative activities by considering both ‘embedded’ (creative professionals working outside the creative sectors) and ‘specialized’ (creative professionals working in the creative sectors) creative employment. Using location quotients and principal component factor and cluster analyses, applied to all 308 Portuguese municipalities, for ten core creative groups, we found that the geographical agglomeration and co-location patterns of these core creative groups differ substantially. The typical arguments sustained by literature - the tendency of creative industries/ employment to agglomerate and co-locate in large metropolises - are only supported in the case of knowledge-intensive activities subjected to Intellectual Property Rights, most notably ‘Advertising/ Marketing’, ‘Publishing’, ‘TV/ Radio’, and ‘Software/ Digital Media’, densely concentrated and co-located in highly developed, large urban centres, with high levels of human capital. These arguments do not hold for the traditional creative activities of ‘Architecture’, ‘Design/ Visual Arts’ and ‘Crafts’, which, although co-located, appear mostly dispersed with small concentrations around intermediate urban centres. ‘Teaching/ training/ research’ present quite dispersed geographical patterns with some clusterization around municipalities with tertiary education institutions. ‘Film/ video/ photography’ and ‘Music/ Performing arts’ show some dispersion throughout the Portuguese territory with concentration around small urban centres and in rural areas. It is evident that, from agglomeration to co-location patterns, creative employment reveals heterogeneous characteristics across creative groups. Indeed, the results obtained show that the differentiated (co)location patterns of creative activities are mainly a regional phenomenon distinguishing regions within the same country, and not only an aspect differentiating countries in international comparisons.
    Keywords: Spatial economics; industrial location; creative industries
    JEL: C01 R12 R30
    Date: 2013–10
  7. By: SOHN Christophe; CHRISTOPOULOS Dimitris; KOSKINEN Johan
    Abstract: The present paper examines the importance of integrating geographic contextual effects into the analysis of social networks. By considering spatial structures as both produced by and productive of social relations, geographic space seems to be more than the extent on which places, actors or events are located and separated by distance. Territoriality, bordering processes, the sense of place, spatial inequalities, scalar relations and spatial connectivity are among the socio-spatial arrangements and practices that are likely to affect social action. The present empirical analysis thus focuses on policy interactions within the cross-border region of Lille because the spatial dimension particularly influences relations in this area. Specifically, we examine three spatial effects, namely, distance, territorial borders and cross-border territoriality, and we use exponential random graph models to model how these contextual variables influence policy interactions. By addressing multiple spatial effects, we develop a specific approach to control for the interactions that occur between these variables in order to elaborate on the complex processes that lead to the formation of social networks. We also explicitly examine how the spatial interaction function is affected by including in the analysis endogenous network effects, exogenous covariates and border factors. In this regard, we use a novel Monte Carlo-based goodness-of-fit summary in order to demonstrate that the predicted spatial interaction function of our model ? net of other effects ? matches the empirical spatial interaction function.
    Keywords: Policy networks; spatial effects; distance; border; territoriality; exponential random graph model
    Date: 2013–10
  8. By: Wondratschek, Verena (Centre for European Economic Research (ZEW)); Edmark, Karin (Research Institute of Industrial Economics); Frölich, Markus (University of Mannheim)
    Abstract: This paper evaluates the effects of a major Swedish school choice reform. The reform in 1992 increased school choice and competition among public schools as well as through a large-scale introduction of private schools. We estimate the effects of school choice and competition, using precise geographical information on the locations of school buildings and children’s homes for the entire Swedish population for several cohorts affected at different stages in their educational career. We can measure the long-term effects up to age 25. We find that increased school choice had very small, but positive, effects on marks at the end of compulsory schooling, but virtually zero effects on longer term outcomes such as university education, employment, criminal activity and health.
    Keywords: School choice; school competition; treatment evaluation; cognitive and non-cognitive skills
    JEL: C21 I20
    Date: 2013–09–25
  9. By: Glaeser, Ed (Harvard University); Poftak, Steve (Harvard University); Tobio, Kristina (Harvard University)
    Abstract: This working paper seeks to determine the preferences of Boston parents for certain school attributes. It analyzes data provided by the Boston Public Schools and the Massachusetts School Building Authority to determine what factors are most closely correlated with popular schools in Boston's public school lottery. The report finds that parents favor closer schools and schools with higher levels of academic achievement (as measured by the MCAS test). It also finds that certain school structures--K1 (over K2 only) schools and K-8 (over K-5) schools--are preferred. The working paper found that other school offerings, both structural and programs, did not matter. Overall school size, computer facilities, and gyms did not have a significant impact. Art, music, and science lab facilities had minimal or no impact. The working paper also provides detailed information on how neighborhood, racial composition, and socio-economic conditions impact school preferences.
    Date: 2013–07
  10. By: Andrew Haughwout; Sarah Sutherland; Joseph Tracy
    Abstract: Housing is a depreciating asset. The rate of depreciation depends on the degree to which households engage in housing investments. Housing investment expenditures economy-wide are sizable, averaging 45 percent of the value of new home construction over the past twenty years. The housing bust and recession coincided with a significant decline in housing investment. Using Consumer Expenditure Survey data from 2007 to 2012, we find that negative equity households reduce their housing investments by roughly 75 percent. The large increase in negative equity due to declining housing prices during the housing bust resulted in a cumulative decline of housing investment expenditures from 2006 to 2010 of $51.2 billion.
    Keywords: Assets (Accounting) ; Depreciation ; Investments ; Housing - Finance ; Equity
    Date: 2013
  11. By: Moez KILANI; Stefan PROOST; Saskia VAN DER LOO
    Abstract: This paper explores reforms of pricing of private and public transport in Paris. Paris has used a policy of very low public transport prices and no road pricing. The Paris transport network is represented as a stylized concentric city with the choice between car, rapid rail, metro and busses as well as two income classes and different transport motives. The model is used to test what are the efficiency gains of introducing road pricing and of increasing public transit prices in the peak. Are both reforms re-enforcing each other or are they largely substitutes? We find that a zonal pricing scheme for the center of Paris combined with higher public transport fares in the peak perform best. The benefits of an overall capacity extension of public transport supply are much lower than the benefits of pricing reforms and could very well not pass the cost benefit test.
    Date: 2013–10
  12. By: Blanchflower, David G. (Dartmouth College); Oswald, Andrew J. (University of Warwick)
    Abstract: This study explores the hypothesis that high home-ownership damages the labor market. We show that rises in the home-ownership rate in a U.S. state are a precursor to eventual sharp rises in unemployment in that state. The elasticity exceeds unity: a doubling of the rate of home-ownership in a U.S. state is followed in the long-run by more than a doubling of the later unemployment rate. What mechanisms might explain this? We provide evidence that rises in home-ownership are associated with three potential concerns: (i) lower levels of labor mobility, (ii) greater commuting times, and (iii) fewer new businesses. Our argument is not that owners are disproportionately unemployed, nor that the observed patterns are due to Keynesian effects. The evidence implies, instead, that the housing market may produce negative 'externalities' upon the labor market. The time lags are long. That gradualness may explain why these patterns remain little-known.
    Keywords: natural rate of unemployment, labor market, housing market, structural, business cycles, mobility
    JEL: I1 I3
    Date: 2013–09
  13. By: Coria, Jessica (Department of Economics, School of Business, Economics and Law, Göteborg University); Bonilla, Jorge (Department of Economics, School of Business, Economics and Law, Göteborg University); Grundström, Maria (Dept of Biological and Environmental Sciences); Pleijel, Håkan (Dept of Biological and Environmental Sciences)
    Abstract: In this paper we investigate the effects of the temporal variation of pollution dispersion, traffic flows and vehicular emissions on pollution concentration and illustrate the need for temporally differentiated road pricing through an application to the case of the congestion charge in Stockholm, Sweden. By accounting explicitly for the role of pollution dispersion on optimal road pricing, we allow for a more comprehensive view of the economy-ecology interactions at stake, showing that price differentiation is an optimal response to the physical environment. Most congestion charges in place incorporate price bans to mitigate congestion. Our analysis indicates that, to ensure compliance with air quality standards, such price variations should also be a response to limited pollution dispersion.
    Keywords: air pollution; road transportation; road pricing; assimilative capacity
    JEL: L91 Q53 R48
    Date: 2013–10–09
  14. By: Emilio Colombo; Luca Stanca
    Abstract: This paper presents an application of the hedonic approach to measure the monetary price of social relations. We use individual-level data for housing and labor markets in 103 Italian cities to estimate the price of relational amenities and construct monetary indexes of quality of relational life. We focus on time spent with friends, active participation in associations and frequency of going out for leisure activities, while controlling for standard amenities such as weather, environment, services, and socio-demographic characteristics. We find that individuals are willing to pay a positive and significant monetary price to live in cities where people spend more time with their friends. A one standard deviation increase in the share of those who meet their friends most frequently is worth an extra \euro 1,150 per year in terms of higher housing costs and foregone wages.
    Keywords: social relations, social capital, hedonic prices, quality of life, well-being
    JEL: A13 C4 D6 I31 R2 Z13
    Date: 2013–10
  15. By: Yoshitsugu Kanemoto (National Graduate Institute for Policy Studies)
    Abstract: The Department for Transport in the United Kingdom has been a pioneer in including indirect benefits in the cost–benefit analysis of a transport project. They identify three types of wider impacts, i.e., (1) agglomeration, (2) increased or decreased output in imperfectly competitive markets, and (3) labor market impacts, and provide detailed guidelines on how to estimate them. Extending a differentiated product model that provides the microfoundations of urban agglomeration economies to include all three types of the wider impacts, this paper examines whether the British methodology of estimating the wider benefits can be justified theoretically.
    Date: 2013–10
  16. By: Satyajit Chatterjee; Burcu Eyigungor
    Abstract: Restriction on the supply of new urban land is commonly thought to raise the value of existing urban land. Our paper questions this view. We develop a tractable production-externality-based circular city model in which firms and workers choose locations and intensity of land use. Consistent with evidence, the model implies exponentially decaying density and price gradients. For plausible parameter values, an increase in the demand for urban land can lead to a smaller increase in urban rents in cities that cannot expand physically because they are less able to exploit the positive external effect of greater employment density. ; Supersedes Working Paper 12-25.
    Keywords: Land use
    Date: 2013
  17. By: Rajashri Chakrabarti; Max Livingston
    Abstract: Schools play a crucial role in human capital development, and were one of the many elements of government adversely affected by the Great Recession. Using a rich panel data set of New York State school districts and a trend-shift analysis, we examine how the funding and expenditure dynamics of districts have changed in the four years since the recession hit. We find that although the stimulus prevented major cuts to expenditures while it was in place, once the stimulus funding was used up districts faced strong budget constraints and made deep cuts to their expenditures. While state and local funding continue to be below trend, the role of funding schools has shifted more to local governments because of a cutback in state and federal aid. Breaking up expenditure into its primary categories, we see that instructional spending was preserved with the help of the stimulus money in 2010, but by 2012 instructional expenditure experienced a statistically and economically significant downward shift. We also examine heterogeneities in the effects by metropolitan area, looking at the major MSAs of New York. We find that Nassau sustained the largest cuts, while Buffalo sustained the smallest. These findings are instructive in that they shed light on how recessions and fiscal policy can affect school finance dynamics, and provide important lessons/insight for future policy and experiences of schools in financial distress.
    Keywords: Government spending policy ; Education - Economic aspects ; Recessions ; New York (State)
    Date: 2013
  18. By: Rajashri Chakrabarti; Max Livingston
    Abstract: Schools are essential in forming human capital and in improving the long-term health of the economy. They are also heavily reliant on state and local funds, which were severely depleted during the Great Recession. To alleviate some of the strain on local budgets, the federal government passed and implemented a large stimulus package, which included funds for school districts. However, the stimulus funds were drawn down beginning in 2011, at a time when state and local revenues were still under pressure. In this paper, we use a detailed panel data set of all school districts in New Jersey for the period 1999 through 2012 and analyze the impact of this series of events on New Jersey school finances using a trend-shift analysis. We find that the recession led to cuts in funding and expenditure. While the stimulus served as an effective stopgap against major cuts, the picture was very different once the stimulus funds were depleted, with significantly deeper cuts in both funding and spending. With cutbacks in state aid and the withdrawal of the stimulus funding, local funding played a larger role, despite the fact that local funding was also decreasing relative to trend. Examining the components of expenditure, we find that instructional categories were prioritized over noninstructional, so instructional expenditure only sustained small cuts in the initial years after recession. But when the stimulus dried up and the economy was still stagnating, instructional expenditure received severe cuts. We analyze variations by metropolitan area, and find that Camden experienced the largest cuts while Wayne experienced the smallest (although the declines in funding and expenditure were still significant). Our findings are an important step in understanding how recessions and fiscal policy affect school finances and inform future policy decisions relating to school finances during fiscal crises.
    Keywords: Government spending policy ; Education - Economic aspects ; Public schools ; New Jersey ; Fiscal policy
    Date: 2013
  19. By: Douglas H. Clements; Roberto Agodini; Barbara Harris
    Keywords: Correlational study, elementary school, instructional practices, student math achievement
    JEL: I
    Date: 2013–09–30
  20. By: António Afonso; Ana Venâncio
    Abstract: We use Data Envelopment Analysis (DEA) efficiency scores to show that clustering municipalities into encompassing regional clusters improves spending efficiency of single stand- alone municipalities. We propose a new geographic aggregation based on municipalities-to- municipalities commuting flows, defined using hierarchical cluster analysis. Our example for Portugal shows that from an output oriented perspective, between 85 and 95 percent of municipalities would increase their efficiency scores, while from an input oriented perspective, between 81 and 97 percent of municipalities would also be better off in terms of efficiency. Our strategy and results are naturally quite relevant in a context of public spending control.
    Keywords: public spending efficiency, local government, data envelopment analyis (DEA), commuting.
    JEL: C14 H72 R50
    Date: 2013–09
  21. By: Wang, Lili (UNU-MERIT/MGSoG); Meijers, Huub (School of Business and Economics, Maastricht University); Szirmai, Eddy (UNU-MERIT/MGSoG)
    Abstract: This paper focuses on the role of interregional technology spillovers in the process of industrial growth in Chinese regions in the period 1990-2005. Inflows of FDI increased rapidly from 1990 till 1998, slowing down thereafter. Domestic R&D investment accelerated after 1998. Regional industrial growth benefits from both interregional R&D spillovers and after 1998 from international FDI spillovers. However, in contrast to R&D spillovers, FDI spillovers contribute conditionally, mainly in areas where local R&D stocks are high enough. Interestingly, indirect interregional FDI spillover effects are negative. Foreign investment in one region attracts resources from regions with less FDI, thus having a negative influence on growth of industrial output in neighbouring regions.
    Keywords: Technological spillovers, Interregional spillovers, R&D, Foreign direct investment, Industrial growth, Regional growth, Chinese industry
    JEL: F43 O14 O33 R11 R12
    Date: 2013
  22. By: Stephan, Andreas (Ratio & JIBBS)
    Abstract: The main purpose of this paper is to analyse whether research spin-offs, that is, spinoffs from either public research institutes or universities, have greater innovation capabilities than comparable knowledge-intensive firms created in other ways. Using a sample of about 2,800 firms from highly innovative sectors, propensity score matching is used to create a sample group of control firms that is comparable to the group of spin-offs. The paper provides evidence that the 121 research spin-offs investigated have more patent applications and more radical product innovations, on average, compared to similar firms. The results also show that research spin-offs’ superior innovation performance can be explained by their high level of research cooperation and by location factors. An urban region location and proximity to the parent institution are found to be conducive to innovation productivity. The paper also finds evidence that research spin-offs are more successful in attracting support from public innovation support programs in comparison to their peers.
    Keywords: Spin-Offs; Innovation Performance; Propensity Score Matching; Location Factors; Cooperation; Public R&D Subsidies
    JEL: M13 O18
    Date: 2013–10–08
  23. By: Hyun Shin (Princeton University); Se-Jik Kim (Seoul National University)
    Abstract: Imperfect financial intermediation is a key bottleneck in economic development. Korea's unique Jeonse or housing repo contract channels funds directly from tenant/lenders to landlord/entrepreneurs, by-passing the banking system. In a housing repo, the landlord/entrepreneur puts up the house as collateral when borrowing from the tenant/lender. The lender's loan is secured by living in the collateral asset, lowering the cost of capital and increasing credit. Jeonse has been the dominant form of rental contract in Korea, and has served as a mode of direct debt financing that by-passes the banking sector.
    Date: 2013
  24. By: Roberto Agodini; Barbara Harris; Neil Seftor; Janine Remillard; Melissa Thomas
    Keywords: Evaluation, randomized controlled trial, math curricula, elementary school
    JEL: I
    Date: 2013–09–30
  25. By: Guoying Deng; Li Gan; Manuel A. Hernandez
    Abstract: This paper uses the 2008 Wenchuan earthquake in China as a natural experiment to examine how the housing market reacted to this unforeseen, extreme event. We use a unique transaction dataset for new (under construction) apartment units to analyze the pricing behavior of units in lower versus upper floors before and after the earthquake. We observe that average housing prices decreased after the tremor. However, the relative price of low to high floor units, particularly units located in the first and second floor, considerably increased for several months after the earthquake. This relative pricing pattern is in line with a higher risk perception and fear, triggered after the tremor, of living in upper floors. Additional robustness checks support the apparent overreaction of individuals to a dramatic event.
    JEL: Q54 R21 R31
    Date: 2013–10
  26. By: Rafik Abdesselam (COACTIS, Université Lumière Lyon 2); Jean Bonnet (CREM-UMR CNRS 6211, Université de Caen Basse-Normandie, UFR SEG (Sciences Economiques et Gestion), Normandie Université, France); Patricia Renou-Maissant (CREM-UMR CNRS 6211, Université de Caen Basse-Normandie, UFR SEG (Sciences Economiques et Gestion), Normandie Université, France)
    Abstract: We study the relationships between unemployment rate and new-firm startups rate in France using a quarterly data basis over the 1993-2011 period. At the national level we identify that the refugee effect explains the dynamics of entrepreneurship in France over the period 2000-2011. New French firms are mostly set up for necessity motives. At the regional level data analysis methods allow to obtain different classes of regions that represent different type of developments. For each of these classes we are able to identify the existence of refugee/Schumpeter effects both in the short-run and in the long-run.
    Keywords: New firm formation, Business cycle, Schumpeter effect, refugee effect, data analysis methods, panel data
    JEL: L26 E32 R11 C23 C38
    Date: 2013–10
  27. By: Debra Shepherd (Department of Economics, University of Stellenbosch)
    Abstract: The "bimodal" pattern of performance observed in South Africa illustrates the persistence with which learners of former Black schools continue to lag behind their "advantaged" counterparts. It is posited that the poor functioning of former Black schools accounts for this result. A nationally representative dataset of grade 5 learners and counterfactual distribution and decomposition techniques are adopted to identify the part of the performance gap that may be explained by differences in (i) the returns structure and (ii) school characteristics composition. The former is found to be 18.9 percent of the average gap and increases significantly over the outcome distribution.
    Keywords: bimodal performance, effectiveness, decomposition, South Africa
    JEL: C31 I21 I25
    Date: 2013
  28. By: Irineu de Carvalho Filho; Stephan Litschig
    Abstract: This paper provides regression discontinuity evidence on long-run and intergenerational education impacts of a temporary increase in federal transfers to local governments in Brazil. Revenues and expenditures of the communities benefiting from extra transfers temporarily increased by about 20% during the 4 year period from 1982 to the end of 1985. Schooling and literacy gains for directly exposed cohorts established in previous work that used the 1991 census are attenuated but persist in the 2000 and 2010 censuses. Children and adolescents of the next generation --born after the extra funding had disappeared-- show gains of about 0.08 standard deviation across the entire score distribution of two nationwide exams at the end of the 2000s. While we find no evidence of persistent improvements in school resources, we document discontinuities in education levels, literacy rates and incomes of test takers' parents that are consistent with intergenerational human capital spillovers.
    Keywords: intergovernmental grants, human capital, test scores, regression discontinuity
    JEL: H40 H72 I21 O15
    Date: 2013–09
  29. By: Erin Graves; Elizabeth Shuey
    Abstract: While economists and others have studied the impact of abandoned foreclosed homes on nearby home prices and crime, very few scholars have attempted to understand the impact of abandonment and rehabilitation on neighborhood social conditions. The foreclosure crisis of 2005-2010 led to a concentration of abandoned foreclosed homes in disadvantaged neighborhoods and these neighborhoods became the targets of a policy intervention, the Neighborhood Stabilization Program. This study employs a mixed-method longitudinal approach to investigate the impact of this foreclosed home rehabilitation policy on neighborhood social conditions and physical conditions in a highly disadvantaged neighborhood. We compared this to a quasi-control group of similar abandoned, foreclosed neighborhood homes not selected for the program. Results indicated that the rehabilitation of a foreclosed home had marginally significant negative impact on social conditions and no impact on the physical conditions of nearby homes. There were no differences between the program properties and the control properties, except that the control properties were rehabilitated more quickly. To further explore the quantitative findings, we divide the qualitative results into four major themes emerging from the data: indifference to foreclosures, threats to the neighborhood, call for community cohesion, and the importance of homeownership. These results indicate that the affected residents believe that neighborhood stabilization efforts would have benefitted more from programs that aimed to improve homeownership opportunities and increase neighborhood levels of social cohesion and social capital.
    Keywords: Foreclosure ; Home ownership
    Date: 2013
  30. By: Richard A. Ashley; Guo Li
    Abstract: Case, Quigley and Shiller (2013) quantified stock versus housing wealth e¤ects on quarterly state-level consumption, measured by retail sales. We investigate the variation of these wealth effects with the persistence of each kind of wealth fluctuation. Using the Case et. al. data, we estimate a dynamic fixed-effects model, allowing for cointegration and for endogeneity. Consumption responds most strongly to housing wealth fluctuations which persist for one to four years, whereas the consumption response to stock wealth fluctuations is smaller and is concentrated on fluctuations with a persistence of either less than a year or more than four years.
    Keywords: Taylor rule, frequency dependence, spectral regression, real-time data
    Date: 2013
  31. By: Ariun Ishdorj; Mary Kay Crepinsek; Helen H. Jensen
    Keywords: Censoring, Endogeneity, Food Assistance, Fruits and Vegetables, National School Lunch Program
    JEL: I0 I1
    Date: 2013–06–30
  32. By: Ilan Lobel (New York University Stern School of Business); Evan Sadler (New York University Stern School of Business)
    Abstract: We study a model of social learning in networks where agents have heterogeneous preferences, and neighbors tend to have similar preferences---a phenomenon known as homophily. Using this model, we resolve a puzzle in the literature: theoretical models predict that preference diversity helps learning, and homophily slows learning, while empirical work suggests the opposite. We find that the density of network connections determines the impact of preference diversity and homophily on learning. When connections are sparse, diverse preferences are harmful to learning, and homophily may lead to substantial improvements. In a dense network, preference diversity is beneficial. The conflicting findings in prior work result from a focus on networks with different densities; theory has focused on dense networks, while empirical papers have studied sparse networks. Our results suggest that in complex networks containing both sparse and dense components, diverse preferences and homophily play complementary, beneficial roles.
    Keywords: Social Networks, Learning, Homophily
    Date: 2013–09
  33. By: Banerjee, Anurag N. (Durham University Business School); Chevillon, Guillaume (ESSEC Business School); Kratz, Marie (ESSEC Business School et Mathématiques appliquées Paris 5 (MAP5))
    Abstract: This paper proposes a Near Explosive Random-Coefficient autoregressive model for asset pricing which accommodates both the fundamental asset value and the recurrent presence of autonomous deviations or bubbles. Such a process can be stationary with or without fat tails, unit-root nonstationary or exhibit temporary exponential growth. We develop the asymptotic theory to analyze ordinary least-squares (OLS) estimation. One important theoretical observation is that the estimator distribution in the random coefficient model is qualitatively different from its distribution in the equivalent fixed coefficient model. We conduct recursive and full-sample inference by inverting the asymptotic distribution of the OLS test statistic, a common procedure in the presence of localizing parameters. This methodology allows to detect the presence of bubbles and establish probability statements on their apparition and devolution. We apply our methods to the study of the dynamics of the Case-Shiller index of U.S. house prices. Focusing in particular on the change in the price level, we provide an early detection device for turning points of booms and bust of the housing market.
    Keywords: Bubbles; Random Coefficient Autoregressive Model; Local Asymptotics; Asset Prices
    JEL: C22 C53 C58 G12
    Date: 2013–09
  34. By: Gabor Kertesi (Institute of Economics, Center for Economic and Regional Studies, Hungarian Academy of Sciences); Gabor Kezdi (Central European University and Institute of Economics, Center for Economic and Regional Studies, Hungarian Academy of Sciences)
    Abstract: This paper evaluates the kindergarten attendance allowance program in Hungary, a conditional cash transfer (CTT) program introduced in 2009 that aimed to increase kindergarten enrollment of disadvantaged children aged 3 and 4. Administration of the program was decentralized, and we make use of the substantial regional variation in program take-up across municipalities to estimate the program's effect on enrollment rates. We show modest but non-negligible effects, despite problems related to the manner of the program's implementation. We also show that the effects were significantly stronger in areas characterized by an excess supply of kindergarten slots. The results testify to the potential of CCT programs to create demand for child-care services among disadvantaged families; however, the results also highlight the importance of creating an adequate supply of kindergarten facilities where needed.
    Keywords: kindergarten, conditional cash transfer (CTT) program, Hungary
    JEL: I20 I38
    Date: 2013–09
  35. By: Francisco Parejo; Amélia Branco; João Carlos Lopes; José Rangel Preciado
    Abstract: The cork sector is a relevant case study given the economic importance of this industry for some regions (value added, employment and rural development). This industry is also important because of its contribution to environmental sustainability as it uses a natural renewable raw material. Portugal and Spain are the most important producers of cork and exporters of manufactured cork products (stoppers and agglomerates). The main purpose of this paper is to study the economic integration and the historical changes of cork business location choices in the Iberian Peninsula. We start by studying the historical roots, motivations and economic consequences of the delocalization of Catalonian firms to Portugal during the first quarter of the 20th century. Then a comparison is made with the recent process of delocalization of an anchor firm of Aveiro industrial district (Corticeira Amorim) to Spain. The theoretical framework of this study is the industry and cluster life cycles as well as the recent insights from the evolutionary economic geography.
    Keywords: Regional integration; firm location choices; cork industry; Iberian Peninsula.
    JEL: R32 F23
    Date: 2013–09
  36. By: Sebastian Klüsener (Max Planck Institute for Demographic Research, Rostock, Germany); Emilio Zagheni (Max Planck Institute for Demographic Research, Rostock, Germany)
    Abstract: Since the unification of Germany in 1990, the former communist eastern part of the country has experienced substantial levels of population decline and outmigration. These trends are largely attributable to East-West differences in economic development (Mai 2007). In this article, we explore the question of whether the recent decline in population is a temporary phenomenon related to the period of transition, or whether long-term geographical factors also affect spatial population trends in Germany. In particular, we investigate to what extent East-West differences are related to the fact that parts of western Germany belong to the European dorsal (or Blue Banana arc), which has long been the most important area of economic activity in Europe (Brunet 1989). Our findings show that an East-West gradient in spatial population trends has existed since the late 19th century. This suggests that long-term geographical factors are relevant for understanding trends in Germany’s spatial population development.
    Keywords: Germany, population change, spatial analysis
    JEL: J1 Z0
    Date: 2013–10
  37. By: Elizabeth Bodine-Baron; Sarah Nowak; Raffaello Varadavas; Neeraj Sood
    Abstract: Traditional economic models of vaccination assume that agents free-ride on the vaccination decision of others. These models show that private vaccination rates are always below the social optimal and even large subsidies cannot achieve disease eradication. In this paper, we build a model where in addition to the desire to free-ride, agents have a desire to conform to the vaccination decisions of their peers. In this model privately optimal vaccination rates can be higher or lower than the social optimal and thus subsidies for vaccination are not always optimal. However, in certain cases, even small subsidies can achieve disease eradication.
    JEL: H2 H21 I1 I28
    Date: 2013–10
  38. By: Daniel Cooper
    Abstract: This paper uses panel data through 2011 to examine evidence of shifts in household balance sheet behavior following the financial crisis and Great Recession. The paper considers evidence of balance sheet repair through debt repayment as well as changes in the composition of households’ balance sheets and/or saving decisions to determine whether households’ desire for holding or investing in riskier versus safer assets has changed. The data show relatively small and limited balance sheet adjustment—especially for those households considered the most likely to have been impacted by the economic collapse. The adjustment that did occur typically raised households’ liquid asset holdings and/or saving and reduced their risky asset positions (stocks). There is also some evidence of increased nonhousing debt repayment and slower takeup of new nonhousing debt. Overall, the findings are inconsistent with major adjustments occurring in households’ balance sheet behavior—especially to the extent where these shifts would have contributed substantially to the sluggish economic recovery
    Keywords: Households - Economic aspects ; Saving and investment
    Date: 2013
  39. By: Ageli, Mohammed Moosa
    Abstract: The present paper examine the nexus between road traffic accident (RTA) and some relevant variables in Saudi Arabia over the period 1971- 2012, using the autoregressive distributed lag ARDL model (Pesaran and Shin, 1999) for co-integration in Saudi Arabia, with the co-integration test. Results show that the variables are co-integrated in Saudi Arabia, moreover, the overall Granger causality results present that road traffic accidents, population and GDP, road mails, registered vehicles, and the number of driver license are Granger-causes each other in Saudi Arabia. With these findings, we affirm that there is a strong relationship and effect between road traffic accidents and its population, GDP, road mails, registered vehicles, and the number of driver license. The findings suggest that the ECTt-1 coefficients are negative signed and statistically significant in all VECMs, implying that there is bi-directional causality between the variables of interest in the long run.
    Keywords: Road Traffic Accident, Granger Causality, (ARDL) Model, Co-integration Test, Saudi Arabia
    JEL: O11 R4
    Date: 2013–04–24
  40. By: World Bank
    Keywords: Social Protections and Labor - Disability Education - Education For All Tertiary Education Teaching and Learning Education - Primary Education
    Date: 2013–06
  41. By: Alex Kaufman
    Abstract: To date the debate over payday lending has focused on whether access to such lending is on net beneficial or harmful to consumer welfare. However, payday loans are not one product but many, and different forms of lending may have different welfare implications. The current diversity in payday lending stems from the diverse ways in which states have regulated the industry. This paper attempts to quantify the effects that various regulatory approaches have had on lending terms and usage. Using a novel institutional dataset of over 56 million payday loans, covering 26 states for nearly 6 years, I find that price caps tend to be strictly binding, size caps tend to be less binding, and prohibitions on simultaneous borrowing appear to have little effect on the total amount borrowed. Minimum loan terms affect loan length while maximum loan terms do not. Repeat borrowing appears to be negatively related to rollover prohibitions and cooling-off periods, as well as to higher price caps. Several states have used law changes to sharply cut their rate of repeat borrowing. However, this process has been disruptive, leading to lower lending volumes and, in at least one case, higher delinquency.
    Date: 2013
  42. By: Gianmarco León; Edward Miguel
    Abstract: This paper exploits an unusual transportation setting to estimate the value of a statistical life (VSL). We estimate the trade-offs individuals are willing to make between mortality risk and cost as they travel to and from the international airport in Sierra Leone (which is separated from the capital Freetown by a body of water). Travelers choose from among multiple transport options – namely, ferry, helicopter, hovercraft, and water taxi. The setting and original dataset allow us to address some typical omitted variable concerns in order to generate some of the first revealed preference VSL estimates from Africa. The data also allows us to compare VSL estimates for travelers from 56 countries, including 20 African and 36 non-African countries, all facing the same choice situation. The average VSL estimate for African travelers in the sample is US$577,000 compared to US$924,000 for non-Africans. Individual characteristics, particularly job earnings, can largely account for the difference between Africans and non-Africans; Africans in the sample typically earn somewhat less. There is little evidence that individual VSL estimates are driven by a lack of information, predicted life expectancy, or cultural norms around risktaking or fatalism. The data implies an income elasticity of the VSL of 1.77. These revealed preference VSL estimates from a developing country fill an important gap in the existing literature, and can be used for a variety of public policy purposes, including in current debates within Sierra Leone regarding the desirability of constructing new transportation infrastructure.
    Keywords: Value of statistical life; risk taking behavior; Africa; Sierra Leone
    JEL: J17 O18
    Date: 2013–09

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