nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2013‒10‒25
fifty-one papers chosen by
Steve Ross
University of Connecticut

  1. Peer Effects in the Demand for Housing Quality By Eleonora Patacchini; Giuseppe Venanzoni;
  2. Open Enrolment and Student Achievement By Friesen, Jane; Harris, Benjamin Cerf; Woodcock, Simon D.
  3. Measuring Teacher Value Added in DC, 2012-2013 School Year. By Eric Isenberg; Elias Walsh
  4. Labour market externalities and regional growth in Sweden: The importance of labour mobility between skill-related industries By Ron Boschma; Rikard Eriksson; Urban Lindgren
  5. Urbanization in China and how urban housing demand can be met By Gottschalch, Sören
  6. Transitional Shelter By Yoshimitsu Shiozaki; Yasuo Tanaka; Akihiko Hokugo; Sofia Bettencourt
  7. Housing Market Dynamics and the GFC: The Complex Dynamics of a Credit Shock By Arthur Grimes; Sean Hyland
  8. Predatory Lending and the Subprime Crisis By Sumit Agarwal; Gene Amromin; Itzhak Ben-David; Souphala Chomsisengphet; Douglas D. Evanoff
  9. Building Performance By Tatsuo Narafu; Mikio Ishiwatari
  10. Administrative boundaries and homogeneus areas with respect to demographic features of resident population in Tuscany By Alessia Naccarato; Benassi Federico
  11. Recent Reforms in Spanish Housing Markets: An Evaluation using a DSGE Model By Juan S Mora-Sanguinetti; Margarita Rubio
  12. “Mobility, networks and innovation: The role of regions’ absorptive capacity” By Ernest Miguélez; Rosina Moreno
  13. Tribe or title? Ethnic enclaves and the demand for formal land tenure in a Tanzanian slum By Matthew Collin
  14. Road Connectivity and the Border Effect: Evidence from Europe By Mauro Pisu; Henrik Braconier
  15. Policies for Inclusive Urbanisation in China By Vincent Koen; Richard Herd; Xiao Wang; Thomas Chalaux
  16. School Structure, School Autonomy and the Tail By Stephen Machin; Olmo Silva
  17. Who acquires whom? The role of geographical proximity and industrial relatedness in Dutch domestic M&As between 2002 and 2008 By Nils Ellwanger; Ron Boschma
  18. Estimating the impact of language of instruction in South African primary schools: A fixed effects approach By Stephen Taylor; Marisa Coetzee
  19. The Local Determinants of Victimization By Camille Hémet
  20. Inventory of public land in Ahmedabad, Gujarat, India By Ballaney, Shirley; Bertaud, Marie-Agnes; Annez, Patricia Clarke; Koshy, C.K.; Nair, Bindu; Patel, Bimal; Phatak, Vidyadhar; Thawakar, Vasudha
  21. The Role of Knowledge Variety and Intensity for Regional Innovative Capability - Swedish evidence By Mohammad Tavassoli; Nunzia Carbonara
  22. Foreign Direct Investment across China: what should we learn from spatial dependences? By C�cile BATISSE; Mary-Fran�oise RENARD; Nasser ARY TANIMOUNE
  23. Measuring and Valuing Convenience and Service Quality: A Review of Global Practices and Challenges from Mass Transit Operators and Railway Industries By Richard Anderson; Benjamin Condry; Nicholas Findlay; Ruben Brage-Ardao; Haojie Li
  24. Capturing the value of public land for urban infrastructure : centrally controlled landholdings By Peterson, George E.; Thawakar, Vasudha
  25. Comparative advantages: creating synergy in community development By Robert Zdenek
  26. Incentives, Selection, and Teacher Performance: Evidence from IMPACT By Thomas Dee; James Wyckoff
  27. Childhood Sporting Activities and Adult Labour-Market Outcomes By Cabane, Charlotte; Clark, Andrew E.
  28. Real estate and financial markets in England and the Low Countries, 1300–1800 By Christiaan van Bochove; Heidi Deneweth; Jaco Zuijderduijn
  29. Quantifying the Effects of Sustainable Urban Mobility Plans By Hector G. LOPEZ-RUIZ; Panayotis CHRISTIDIS; Hande DEMIREL; Mert KOMPIL
  30. The Effects of School Desegregation on Teenage Fertility By Robert Bifulco; Leonard M. Lopoo; Sun Jung Oh
  31. Regional Variations in Attitudes Towards Refugees: Evidence from Great Britain By Crawley, Heaven; Drinkwater, Stephen; Kauser, Rukhsana
  32. Institutions and Firm Formation: an Empirical Analysis of Portuguese Municipalities By Simão Arouca
  33. On the Value of Crowding in Public Tansport for Ile-de-France By Eric Kroes; Marco Kouwenhoven; Laurence Debrincat; Nicolas Pauget
  34. The Wider Economic Impacts of High-Skilled Migrants: A Survey of the Literature By Nathan, Max
  35. Determinants of Foreign Technological Activity in German Regions – A Count Model Analysis of Transnational Patents (1996-2009) By Eva Dettmann; Iciar Dominguez Lacasa; Jutta Günther; Björn Jindra
  36. “A gravity model of migration between ENC and EU” By Raul Ramos; Jordi Suriñach
  37. Macroprudential Measures, Housing Markets and Monetary Policy By José A Carrasco-Gallego; Margarita Rubio
  38. Creative Ageing Policy in Regional Development By Klimczuk, Andrzej
  39. Urbanization and Expenditure Inequality in Indonesia: Testing the Kuznets Hypothesis with Provincial Panel Data By Perdamen Sagala; Takahiro Akita; Arief Anshori Yusuf
  40. Appraising transport strategies that induce land use changes By Parker, Chris
  41. The Federal Reserve in times of economic crisis: Paths and choices since 2007 By Rüdiger, Sina
  42. Do the Poorest Ethnic Minorities Benefit from a Large-Scale Poverty Reduction Program? Evidence from Vietnam By Nguyen, Cuong; Phung, Tung; Westbrook, Daniel
  43. Tax Me If You Can! Optimal Nonlinear Income Tax between Competing Governments By Lehmann, Etienne; Simula, Laurent; Trannoy, Alain
  44. Banking Deregulation and The Rise in House Price Comovement By Landier, Augustin; Sraer, David; Thesmar, David
  45. The Consequences of Urban Air Pollution for Child Health: What does Self Reporting Data in the Jakarta Metropolitan Area Reveal? By Mia Amalia; Budy P. Resosudarmo; Jeff Bennett
  46. Educational mismatches and skills: New empirical tests of old hypotheses By Allen J.P.; Velden R.K.W. van der; Levels M.
  47. Infrastructure Rehabilitation By Junko Sagara; Mikio Ishiwatari
  48. Indirect Tax Reform and Fiscal Federalism in India By Raghbendra Jha
  49. Rewiring the network. What helps an innovation to diffuse? By Katarzyna Sznajd-Weron; Janusz Szwabinski; Rafal Weron; Tomasz Weron
  50. The Role of Medialabs in Regional Cultural and Innovative Policy By Andrzej, Klimczuk
  51. Urbanization with and without Industrialization By Douglas Gollin; Remi Jedwab; Dietrich Vollrath

  1. By: Eleonora Patacchini (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244-1020); Giuseppe Venanzoni (Sapienza University of Rome, Italy);
    Abstract: Using detailed data on friendship networks within neighborhoods, we investigate the importance of social interactions in one's own residential neighborhood in the demand for housing quality. We find evidence consistent with the presence of peer effects, especially for households living in urban areas. Our findings are in line with the prediction of a model where conformity preferences are the key element underlying economic outcomes that involve interactions with peers. Key Words: Social Networks; Linear-In-Means Model; Spatial Autoregression Model; Social Norms JEL No. A14, C21, D85, R21, Z13
    Date: 2013–09
  2. By: Friesen, Jane (Simon Fraser University); Harris, Benjamin Cerf (U.S. Census Bureau); Woodcock, Simon D. (Simon Fraser University)
    Abstract: We investigate the effects of public school open enrolment, which allows students to enroll in any public school with available space, on fourth grade test scores. We find a small, positive effect on the average student; this benefit appears to stem from increased competition among schools, rather than directly through expanded choice opportunities. Among students whose catchment school is locally top-ranked according to test scores, greater choice is of no direct benefit; however, students whose catchment school is locally lowest-ranked earn higher scores when they have access to better local schools. Students in both groups benefit from increased school competition.
    Keywords: open enrolment, school choice, school competition
    JEL: I21 I28
    Date: 2013–09
  3. By: Eric Isenberg; Elias Walsh
    Keywords: Value Added, DC Schools, Education, Measuring Teacher
    JEL: I
    Date: 2013–09–11
  4. By: Ron Boschma; Rikard Eriksson; Urban Lindgren
    Abstract: This study investigates the relationship between labour market externalities and regional growth based on real labour flows. In particular, we test for the importance of labour mobility across so-called skill-related industries. We make use of a sophisticated indicator that measures the degree of skill-relatedness between all industries, and we employ actual labour flows between 435 4-digit industries within 72 Swedish functional labour market regions to estimate how labour market externalities are related to regional growth in the period 1998-2002. Both our fixed effect models and GMM-estimates demonstrate that a strong intensity of intra-regional labour flows between skill-related industries impacts positively on regional productivity growth, but less so on regional employment growth. Labour mobility between unrelated industries tends to dampen regional unemployment growth while a high degree of intra-industry labour flows is only found to be associated with rising regional unemployment.
    Keywords: agglomeration externalities, related variety, regional growth, labour mobility, related labour market externalities, skill-relatedness
    JEL: R11 R12 O18
    Date: 2013–10
  5. By: Gottschalch, Sören
    Abstract: As it has rightfully been recognized by China's central government, successful urbanization will be decisive for the nation's future development. Key challenges will be to realize urbanization economies, improve production and innovation capabilities, direct urban and suburban growth and improve a more equal distribution of benefits of economic growth to the population. This paper contributes to the discussion with illuminating the main drivers of urbanization: (i) migration and (ii) in situ urbanization, and the housing necessities for migrants that evolve from them. It attempts to support the establishment of an integrated and sustainable urbanization path by considering migrants urban housing demand in China's socio economic transitional environment and indicating proper match. Migrant's housing choices are driven by underlying priorities determined by their characteristics and their exposure to the immediate socio economic environment. Therefore, both, migrant's characteristics as well as their immediate socio economic environment are put in relation to urban growth and its spatial features. The result is a set of housing supply forms and a set of distinctive migrant housing demands. Urban housing outcome and the match of housing supply and demand reveals housing preferences and housing market constraints. Based on these findings further housing recommendations can be given. --
    Keywords: Urbanization,Migration,Urban Housing Situation,Migrant Groups,Housing Demand,Housing Program
    JEL: D03 D14 D40 D52 D63 H53 J61
    Date: 2013
  6. By: Yoshimitsu Shiozaki; Yasuo Tanaka; Akihiko Hokugo; Sofia Bettencourt
    Keywords: Industry - Construction Industry Public Sector Management and Reform Urban Development - Urban Governance and Management Housing and Human Habitats Governance - Regional Governance Communities and Human Settlements Public Sector Development
    Date: 2013–01
  7. By: Arthur Grimes (Motu Economic and Public Policy Research and the University of Auckland); Sean Hyland (Motu Economic and Public Policy Research)
    Abstract: We analyse the multiple channels of influence that GFC-induced credit restrictions had on New Zealand’s subnational housing markets. Our model isolates dynamics caused by impacts on the supply and the demand sides of the market. These dynamics are compared to those caused by a migration shock, a more common form of housing shock in New Zealand. We focus on the impacts on two outcome variables: house prices and housing supply; both shocks cause substantial cyclical adjustments in each variable. Similar cyclical dynamics could complicate the conduct of macro-prudential policies which are designed to affect bank credit allocation.
    Keywords: House prices, housing supply, credit restrictions, GFC, migration
    JEL: E51 R21 R31
    Date: 2013–10
  8. By: Sumit Agarwal; Gene Amromin; Itzhak Ben-David; Souphala Chomsisengphet; Douglas D. Evanoff
    Abstract: We measure the effect of an anti-predatory pilot program (Chicago, 2006) on mortgage default rates to test whether predatory lending was a key element in fueling the subprime crisis. Under the program, risky borrowers and/or risky mortgage contracts triggered review sessions by housing counselors who shared their findings with the state regulator. The pilot cut market activity in half, largely through the exit of lenders specializing in risky loans and through decline in the share of subprime borrowers. Our results suggest that predatory lending practices contributed to high mortgage default rates among subprime borrowers, raising them by about a third.
    JEL: D14 D18
    Date: 2013–10
  9. By: Tatsuo Narafu; Mikio Ishiwatari
    Keywords: Industry - Construction Industry Urban Development - Urban Housing Science and Technology Development - Engineering Transport Economics Policy and Planning Urban Development - Hazard Risk Management Transport
    Date: 2013–01
  10. By: Alessia Naccarato; Benassi Federico
    Abstract: The paper is based on the idea that the organization of services by local authorities should take into account both the demographic features of the resident population and the spatial dimension of the territory involved. As regards the former, it seeks to identify homogeneous and spatially contiguous areas between the municipal and regional levels in Tuscany, the region analysed in this study. Demographic indicators of usually resident population plus the spatial attributes of each tuscan municipality have been used as the input of a spatial clustering and regionalization model in order to obtain n areas that minimize the inner heterogeneity of the demographic structure under the constraint of spatial contiguity.
    Keywords: Spatial clustering, Regionalization, Spatial demography, Regional planning.
    JEL: R58 R14 R15
    Date: 2013–10
  11. By: Juan S Mora-Sanguinetti; Margarita Rubio
    Abstract: After a long academic debate, Spain finally repealed in 2012 the deduction for home purchase. The abrogation took effect in 2013. In parallel, the VAT for the purchase of new housing was increased after a short period in which it had a reduced rate. The aim of this paper is to assess the macroeconomic effects of these two relevant housing market reforms. In order to do that, we use a dynamic stochastic general equilibrium (DSGE) model calibrated to capture the key ratios of the Spanish economy. The model includes a housing market, covering both the rental market side and the property market side and credit-constrained agents. We find that these measures drive down housing prices and have a negative impact on output and employment in the construction sector. However, in the long run, this last effect is offset by the benefits of a reduction in distortionary taxes.
    Keywords: Housing Market Reforms, Rental Market, House Prices, Home Purchase Deduction, VAT on New Home Purchase
  12. By: Ernest Miguélez (Economics and Statistics Division, World Intellectual Property Organization & AQR-IREA & CReAM); Rosina Moreno (Faculty of Economics, University of Barcelona)
    Abstract: The purpose of this paper is to assess the extent to which regions’ absorptive capacity determines knowledge flows’ impact on regional innovation intensity. In particular, it looks at the role of the cross-regional co-patenting and mobility of inventors in fostering innovation, and how regions with large absorptive capacity make the most of these two phenomena. The paper uses a panel of 274 regions over 8 years to estimate a regional knowledge production function with fixed-effects. Network and mobility variables, and interactions with regions’ absorptive capacity, are included among the r.h.s. variables to test the hypotheses. We find evidence of the role of both mobility and networks. However, inflows of inventors are critical for wealthier regions, while have more nuanced effects for less developed areas. It also shows that regions’ absorptive capacity critically adds an innovation premium to the benefits to tap into external knowledge pools. Indeed, the present study corroborates earlier work on the role of mobility and networks for spatial knowledge diffusion and subsequent innovation. However, it clearly illustrates that a certain level of technological development is critical to take advantage of these phenomena, and therefore “one-size-fits-all” innovation policies need to be reconsidered.
    Keywords: absorptive capacity, inventor mobility, spatial networks, patents, regional innovation. JEL classification:
    Date: 2013–10
  13. By: Matthew Collin
    Abstract: This paper examines the relationship between ethnic heterogeneity and the demand for formal land tenure in urban Tanzania. Using a unique census of two highly-fractionalized unplanned settlements in Dar es Salaam, I show that households located near coethnics are significantly less likely to purchase a limited form of land tenure recently offered by the government. I attempt to address one of the chief concerns - endogenous sorting of households - by conditioning on a household’s choice of coethnics neighbors upon arrival in the neighborhood. I also find that coethnic residence predicts lower levels of perceived expropriation risk, but not perceived access to credit nor contribution to local public goods. These results suggest that close-knit ethnic groups may be less likely to accept state-provided goods due to their ability to generate reasonable substitutes, in this case protection from expropriation. The results are robust to different definitions of coethnicity and spatial cut-offs, controls for family ties and religious similarity as well as spatial fixed effects. Finally, the main result is confirmed using a large-scale administrative data-set covering over 20,000 land parcels in the city, exploiting ethnically-unique last names to predict tribal affiliation.
    Keywords: Ethnicity, Land tenure, Tanzania, Unplanned settlements
    JEL: J15 Q15 R23
    Date: 2013
  14. By: Mauro Pisu; Henrik Braconier
    Abstract: Several studies have reported a large negative effect of national borders on the volume of trade. We provide new estimates of the border effect for continental Europe using road rather than great circle – or “as-crows-fly” – distance. Road distances for 48 180 European city pairs have been extracted from Bing Maps Routing Services. As our dataset also has information on travel time, we are able to consider costs related to time in addition to those depending on distance. We find that for the same great circle distance and the same city size, the road distance between two cities located in the same country is around 10% shorter than that between cities located in different ones. Travel speed is also higher between cities in the same country. We find that by using measures based on the actual road distance rather than the great circle distance, the negative effect of international borders on goods trade in a standard gravity equation is lowered by around 15%. Time-related trade costs account for an additional 10% reduction in the border effect. Overall these results point to the importance of road networks – and road transport policy in general – to enhance market integration.
    Date: 2013–06
  15. By: Vincent Koen; Richard Herd; Xiao Wang; Thomas Chalaux
    Abstract: Urbanisation in China has long been held back by various restrictions on land and internal migration but has taken off since the 1990s, as these impediments started to be gradually relaxed. People have moved in large numbers to richer cities, where productivity is higher and has increased further thanks to agglomeration effects. In the process, the rural-urban income differential has narrowed. Urbanisation also entails costs, however, notably in the form of congestion, all the more so as public transport provision has not kept up. Demand for living space is set to continue to increase as living standards improve, putting pressure on land prices. This can be offset by relaxing the very stringent restrictions on the use of agricultural land for building. For migrants to better integrate in the cities where they work, their access and that of their families to education, health and other social services must continue to improve, in particular via further changes to the registration system, coupled with more market-based rules on land ownership and use. Comment favoriser une urbanisation plus inclusive en Chine Alors que l’urbanisation était depuis longtemps freinée en Chine par diverses restrictions appliquées au marché foncier et aux migrations internes, elle s’intensifie depuis que ces obstacles ont commencé à être progressivement levés dans les années 90. Les villes plus riches, caractérisées par une productivité élevée et en constante progression du fait des économies d’échelle générées par l’urbanisation, enregistrent un afflux massif de migrants. Parallèlement, l’écart de revenus entre zones rurales et urbaines s’est resserré. Néanmoins, l’urbanisation a aussi un coût, notamment illustré par les problèmes de congestion, aggravés par le développement insuffisant de l’offre de transports publics. La demande de surface habitable devrait rester orientée à la hausse sous l’effet de l’amélioration du niveau de vie, ce qui exercera une pression sur les prix des terrains. Cette pression peut être atténuée en assouplissant les restrictions très sévères appliquées à l’usage des terres agricoles à des fins de construction. Pour veiller à une meilleure intégration des migrants dans les villes où ils travaillent, il faut continuer à améliorer leur accès et celui de leurs familles à l’éducation, aux soins de santé et aux autres types de services sociaux, notamment en poursuivant la réforme du système d’enregistrement et en adoptant une réglementation plus axée sur le marché en ce qui concerne la propriété et l’utilisation des terres.
    Keywords: migration, housing, China, agriculture, scale economies, cities, urbanisation, land, public transport, pollution, hukou, agglomeration effects, social services, congestion, urban-rural divide, logement, congestion, hukou, économies d'échelle, transport public, urbanisation, clivage urbain-rural, effets d’agglomération, villes, pollution, Chine, migration, agriculture, services sociaux
    JEL: D63 H23 H41 H52 H53 H54 H55 H77 I39 J11 J21 J61 K11 K39 N35 O18 O53 P21 P25 P26 P27 P28 Q15 Q18 Q53 R11 R12 R14 R21 R23 R28 R31 R38 R41 R48 R52 R58
    Date: 2013–10–10
  16. By: Stephen Machin; Olmo Silva
    Abstract: In this paper, we survey the UK-based literature on school structures and school autonomy to identify settings in which alternative and more autonomous school arrangements can improve the educational attainments of pupils in the bottom tail of the achievement distribution. We also present new evidence on the effect of school academies on the age-16 GCSE attainment of students of different abilities up to 2009, before the Coalition Government changed the nature of the Labour academy programme. Within the UK education system, academies enjoy substantial autonomy in terms of management of their staff, taught curriculum, length of the school day and other aspects of their day-to-day functioning. Our results show that schools that converted to academies between 2002 and 2007 improved their overall age-16 GCSEs results by further raising the attainments of students in the top half of the ability distribution, and in particular pupils in the top 20% tail. Conversely, we find little evidence that academies helped pupils in the bottom 10% and 20% of the ability distribution. Finally, we find little evidence that late converters (2008 and 2009) had any beneficial effects on pupils of any ability. We conclude our research by comparing the experience of UK academies to that of US charter schools and Swedish free schools, and by providing some insights into the reasons why UK academies did not serve 'the tail' as is the case for some US charter schools.
    Date: 2013–03
  17. By: Nils Ellwanger; Ron Boschma
    Abstract: In economic geography, geographical proximity has been identified as a key driver of M&A activity. In this context, little attention has yet been drawn to the effect of industrial relatedness, which refers to the similarity and complementarity of business activities. We examine 1,855 domestic M&A deals announced between 2002 and 2008 in the Netherlands, and we assess the extent to which geographical proximity and industrial relatedness affect M&A partnering. Our study shows that geographical proximity drives domestic M&A deals, even at very detailed spatial scales like the municipality level. We also found evidence that companies that share the same or complementary industries are more likely to engage in an M&A deal. Logistic regressions show that the effect of industrial relatedness is stronger than the effect of geographical proximity.
    Keywords: mergers and acquisitions, Netherlands, geographical proximity, home bias, industrial relatedness
    JEL: O18 R00 R11
    Date: 2013–10
  18. By: Stephen Taylor (Department of Basic Education); Marisa Coetzee (Departement Ekonomie, Universiteit van Stellenbosch)
    Abstract: For many children around the world, access to higher education and the labour market depends on becoming fluent in a second language. This presents a challenge to education policy: when and how in the school programme should a transition to the second language occur? While a large theoretical literature exists, empirical evidence is limited by the difficulties inherent to measuring the causal effect of language of instruction. In South Africa, the majority of children do not speak English as their first language but are required to undertake their final school-leaving examinations in English. Most schools offer mother-tongue instruction in the first three grades of school and then transition to English as the language of instruction in the fourth grade. Some schools use English as the language of instruction from the first grade. In recent years a number of schools have changed their policy, thus creating within-school, cross-grade variation in the language of instruction received in the early grades. We use longitudinal data on school characteristics including language of instruction by grade, and student test score data for the population of South African primary schools. Simple OLS estimates suggest a positive correlation between English instruction in the first three grades and English performance in grades 4, 5 and 6. After including school fixed effects, which removes the confounding effects of selection into schools with different language policies, we find that mother tongue instruction in the early grades significantly improves English acquisition, as measured in grades 4, 5 and 6. The significance of this study is twofold. Firstly, it illustrates the power of school-fixed effects to estimate causal impacts of educational interventions. Secondly, it is the first South African study (and one of a very few international studies) to bring robust empirical evidence to the policy debate around language of instruction.
    Keywords: Education, language of learning and teaching, South Africa, fixed effects
    JEL: I24 I25 I28
    Date: 2013
  19. By: Camille Hémet (Department of Economics, Sciences Po - Sciences Po, AMSE - Aix-Marseille School of Economics - Aix-Marseille Univ. - Centre national de la recherche scientifique (CNRS) - École des Hautes Études en Sciences Sociales [EHESS] - Ecole Centrale Marseille (ECM))
    Abstract: This paper explores the determinants of victimization at the neighborhood level, using data from the French victimization survey. Its contribution to the economics of crime literature is threefold. First, I provide evidence that neighborhood characteristics explain victimization better than individual characteristics. Second, I find that local unemployment rate is one of the most important factor explaining victimization, with a particularly large effect on small crimes such as motorbike theft or vandalism. I then tackle the endogenous location selection issue, by adopting the strategy developed by Bayer et al. (2008), based on the fact that the study is conducted at a very low geographic level. Third, I take advantage of the precise localization of the data to adopt a spatial approach, comparing the effect of unemployment rate in the reference neighborhood and in adjacent neighborhoods. The results support the idea that criminals are mobile across neighborhoods for more serious economic crimes, in line with the Beckerian theory of crime, but that petty crimes and vandalism do not involve any mobility, relating to the social disorganization theory.
    Keywords: victimization; neighborhood effects; unemployment; geography
    Date: 2013–10
  20. By: Ballaney, Shirley; Bertaud, Marie-Agnes; Annez, Patricia Clarke; Koshy, C.K.; Nair, Bindu; Patel, Bimal; Phatak, Vidyadhar; Thawakar, Vasudha
    Abstract: This paper pilots an approach to identifying, categorizing, and mapping public land owned by the central, state, and local government in urban developed areas of Ahmedabad, Gujarat, India. The methodology uses information on plot sizes, location, and ownership that is publicly available for all areas covered by town planning schemes. The study examines the extent of unutilized and underutilized public land, which excludes all cemeteries, parks and gardens, heritage buildings, slums, utilities, infrastructure land, and industrial estates. Unused land already earmarked for public purposes were also excluded from the valuation exercise. The potentially marketable land so identified was valued at both official rates and estimated market rates. The value of potentially marketable excess land is significant -- in per capita terms, the high-value scenario substantially exceeds the estimate of total infrastructure investment needs for the next 20 years prepared by an expert committee of the Ministry of Urban Development of the Government of India.
    Keywords: Public Sector Economics,Public Sector Management and Reform,Municipal Housing and Land,Rural Land Policies for Poverty Reduction,Land Use and Policies
    Date: 2013–10–01
  21. By: Mohammad Tavassoli; Nunzia Carbonara
    Abstract: This paper analyses the effect of variety and intensity of knowledge on the innovative capability of regions. Employing data for Swedish functional regions, the paper tests the role of the variety (related and unrelated) and intensity of (i) internal knowledge generated within the region and also (ii) external knowledge networks flowing into the region in explaining regional innovative capability, as measured by patent applications. The empirical analysis provides robust evidence that both the variety and intensity of internal and external knowledge matter for regions’ innovative capability. When it comes to variety, related knowledge variety plays a superior role.
    Keywords: Knowledge intensity, Knowledge variety, Related variety, Unrelated variety, Internal knowledge, External knowledge, Patent applications, Functional regions
    JEL: O32 F14 R12
    Date: 2013–10
  22. By: C�cile BATISSE; Mary-Fran�oise RENARD; Nasser ARY TANIMOUNE (Universit� Ottawa)
    Abstract: The paper investigates the importance of spatial dependences on Foreign Direct Investment (FDI) localization across Chinese provinces over the 1992-2009. Based on exploratory spatial data analysis, spatial sigma-convergence and spatial Durbin specifications, we present a much clearer picture of FDI dispersion and spatial convergence across China by highlighting the spillover effects of FDI localization in Chinese provinces and regions. Our results are threefold. First, FDI convergence is more pronounced compared to the Central region, whereas the dispersion is greater when the Coastal and the Western regions are taken as reference points. Second, at the province level, FDI localization seems to present a substitutable configuration. Third, when controlling for the spatial distribution of FDI at the level of regions, it seems, conversely, that the FDI localization presents a complementary configuration. The finding resulting from the opposing configurations of the FDI localizations observed at the region and province levels seems to argue in favor of promoting FDI attractiveness policies based on regional complementarities.
    Keywords: China, Convergence, FDI, spatial panel data, spatial Durbin model
    JEL: R12 O53 C33
    Date: 2013
  23. By: Richard Anderson; Benjamin Condry; Nicholas Findlay; Ruben Brage-Ardao; Haojie Li
    Abstract: Origin-destination demand, trip patterns, pricing and transport networks alone cannot explain passenger demand for public transport modes. Other factors of convenience and service quality play a key role in influencing demand and mode choice but they are often more complex and harder to define, measure and value. This paper argues that the good measurement of public transport convenience and service quality is a pre-requisite to its valuation and ensuring more optimal policy and management actions to minimise passengers’ generalised time. The paper focusses necessarily on the urban public transport operator and its measurement of service quality. We review the practical experience gained from over 20 years of international benchmarking with more than 50 metro, bus and suburban rail operators in large cities around the world. Specifically, we review the current standards and practices from the urban railway industry in measuring service quality and provide examples of how such performance in metro operations varies globally. It is demonstrated that current practice in many cities remains too operationally based, despite there being an opportunity for much more customer focused measures of service quality using the greatly increased data availability from new technologies. The experience of the UK railway industry in valuing convenience and service quality is discussed. Here, a common framework for demand forecasting has been developed combining service quality and convenience measures with other service attributes to effectively measure the “attractiveness” of the service to customers. The paper concludes by considering the implications and opportunities for public transport operators, authorities and regulators worldwide in better measuring, valuing and managing public transport convenience in order to better meet mobility needs.
    Date: 2013–09–18
  24. By: Peterson, George E.; Thawakar, Vasudha
    Abstract: Government entities in India hold large amounts of public land. Their landholdings include some of the most valuable property in the country. Parts of this patrimony lie vacant or underutilized. Public sector bodies also own large blocs of land that sometimes stand in the way of efficient completion of urban infrastructure networks. At the same time, urban India is deficient in basic infrastructure -- both network infrastructure needed to support economic growth and urban service infrastructure needed to meet basic household needs like water supply, waste removal, and transportation. This condition raises fundamental questions. Are some of government landholdings"surplus"or not needed for service provision? If so, can their economic value be captured to help finance infrastructure investment? This report aims to document evolving government policies toward pubic land management. It examines how active public entities are in identifying"surplus"lands and attempting to monetize them. Public bodies in India have proved reluctant to surrender landholdings. The report therefore considers practical alternatives that have emerged, such as land trading among public institutions. Land exchange can clear the way for completion of important urban infrastructure projects, without requiring public landowners to declare their property"surplus"and suitable for market disposition.
    Keywords: Public Sector Economics,Municipal Housing and Land,Land and Real Estate Development,Real Estate Development,Public Sector Management and Reform
    Date: 2013–10–01
  25. By: Robert Zdenek
    Abstract: The goal of this paper is to provide insights and tools to help community development practitioners, policymakers, funders, and other stakeholders better understand how to maximize the effectiveness and impact of different types of organizations at the local and regional level. Understanding your comparative advantages is critical to addressing complex community development initiatives from foreclosure prevention, to sustainable energy, to urban education, to job creation.
    Keywords: Community development
    Date: 2013
  26. By: Thomas Dee; James Wyckoff
    Abstract: Teachers in the United States are compensated largely on the basis of fixed schedules that reward experience and credentials. However, there is a growing interest in whether performance-based incentives based on rigorous teacher evaluations can improve teacher retention and performance. The evidence available to date has been mixed at best. This study presents novel evidence on this topic based on IMPACT, the controversial teacher-evaluation system introduced in the District of Columbia Public Schools by then-Chancellor Michelle Rhee. IMPACT implemented uniquely high-powered incentives linked to multiple measures of teacher performance (i.e., several structured observational measures as well as test performance). We present regression-discontinuity (RD) estimates that compare the retention and performance outcomes among low-performing teachers whose ratings placed them near the threshold that implied a strong dismissal threat. We also compare outcomes among high-performing teachers whose rating placed them near a threshold that implied an unusually large financial incentive. Our RD results indicate that dismissal threats increased the voluntary attrition of low-performing teachers by 11 percentage points (i.e., more than 50 percent) and improved the performance of teachers who remained by 0.27 of a teacher-level standard deviation. We also find evidence that financial incentives further improved the performance of high-performing teachers (effect size = 0.24).
    JEL: I2 J45
    Date: 2013–10
  27. By: Cabane, Charlotte; Clark, Andrew E.
    Abstract: We here ask whether sports participation at school is positively correlated with adult labour-market outcomes. There are many potential channels for this effect, although, as usual, identifying a causal relationship is difficult. We appeal to two widely-separated waves of Add Health data to map out the correlation between school sports and adult labourmarket outcomes. We show that different types of school sports are associated with different types of jobs and labour-market insertion when adult. We take the issue of the endogeneity of sport seriously and use data on siblings in order to obtain estimates that are as close to unbiased as possible. Last, we compare the effect of sporting activities to that of other leisure activities.
    Keywords: Job characteristics, Education, Sport, School
    JEL: J24 J13 L83 I2
    Date: 2013–10
  28. By: Christiaan van Bochove; Heidi Deneweth; Jaco Zuijderduijn
    Abstract: Mortgage markets in developing economies are often confined to private networks. Inadequate registration of property rights has been blamed for this, but it is questionable whether registration provides a simple and complete solution. This paper addresses this issue by analysing the Low Countries, where registration was organised well, and England, where registration was organised poorly, between 1300 and 1800. These historical cases show that registration was important but did neither provide a simple nor a complete solution for the emergence of broad mortgage markets. Successful historical markets took considerable time to appear and also addressed mortgage law and financial intermediation.
    Keywords: mortgages, Europe, pre-industrial period
    Date: 2013–10
  29. By: Hector G. LOPEZ-RUIZ (European Commission – JRC - IPTS); Panayotis CHRISTIDIS (European Commission – JRC - IPTS); Hande DEMIREL (European Commission – JRC - IPTS); Mert KOMPIL (European Commission – JRC - IPTS)
    Abstract: In an effort to counteract negative effects stemming from urban transport activities, many cities in Europe have engaged in planning for the sustainability of urban mobility. As with any change concerning the transport sector, uneasiness about the prospect of having to change the way cities are currently organized -in order to cut down on transport-linked nuisances- has generated a great number of questions on the best way to achieve sustainability in urban transport. The European Commission is considering a European support framework for the implementation of Sustainable Urban Mobility Plans in EU Member States. This consideration is consistent with the 2011 White Paper proposal to increase coordination between transport authorities and transport policy deciders. Consequently, an interest on how different urban measures can be used in order to render transport activities more sustainable has given way to research concerning the impacts and effects that policy measures might have on socio-ecological systems. These studies rely, mainly, on experts' opinions and past experiences in order to develop a common scorecard on how a transport system might react to different measures. This technical note uses the expert scoring information available in current scientific literature in order to explore the impacts and effects that different urban measures may have in planning for sustainability on a European wide level.
    Keywords: Sustainable, Urban, Mobility, Plans, SUMP, policy
    Date: 2013–07
  30. By: Robert Bifulco (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244-1020); Leonard M. Lopoo (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244-1020); Sun Jung Oh (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244-1020)
    Abstract: The school desegregation efforts following the historic Supreme Court ruling in Brown v. Board of Education (1954) represent one of the most important social policy initiatives of the 20th century. Despite a large research literature on desegregation and educational outcomes, its effects on the lives of individuals are still not fully understood. In this paper we examine the effects of desegregation on the fertility of teenagers. Our findings suggest that desegregation increased the fertility of African American teens and is unrelated to the fertility of white teens. Key Words: Desegregation; Teenage Fertility JEL No. I24, J13, J15, J18
    Date: 2013–09
  31. By: Crawley, Heaven (Swansea University); Drinkwater, Stephen (Swansea University); Kauser, Rukhsana (University of Westminster)
    Abstract: This paper examines changes in public attitudes towards refugees across Britain over almost three decades using data from British Social Attitudes Surveys. It therefore covers the period when immigration as a whole has increased and the number of asylum applications reached their highest levels. The data are examined in periods before and after the rise in asylum applications and from a sub-national perspective because of possible differences in attitudes between areas, as well as in levels and types of inward migration. Overall, the British public appear to have become less tolerant towards refugees. This suggests that rising levels of immigration and asylum, a political discourse which positioned asylum as a particular problem in terms of the management of migration flows and accompanying press coverage have resulted in a hardening of opinions. These changes have occurred despite increased educational attainment amongst the British population, which might be expected to result in more liberal attitudes. The sub-national analysis indicates that people living in London and Scotland display the most tolerant views both before and after the increase in immigration and asylum. However, characteristics such as belonging to an ethnic minority group or possessing a degree, which are higher in London, account for a large portion of the regional variations. Controlling for such factors in regression analysis reduces the differentials relative to London, especially in more recent years.
    Keywords: public attitudes, regional variations, immigration, refugees
    JEL: F22 J15 R23
    Date: 2013–09
  32. By: Simão Arouca (Nova School of Business and Economics. Office for Strategy and Studies (GEE), Portuguese Ministry of Economy and Employment.)
    Abstract: The uneven spatial distribution of start-ups observed for Portugal from 2003 to 2009 suggests that local attributes, among which the quality of municipal institutions and their respective governance, impact the entrepreneurial process. Through the usage of a fixed effects negative binomial model, this thesis examines the role of municipalities in stimulating firm births, finding both the development of business-related infrastructures and the signals stemming from sound financial management to be the most relevant determinants. While some significance, although conditional, can be assigned to fast-paced licensing and EU structural funding, political right-left preferences appear to exert a negligible influence.
    Keywords: Firm Formation; Municipalities; Institutions.
    JEL: M13 R32
    Date: 2013–10
  33. By: Eric Kroes; Marco Kouwenhoven; Laurence Debrincat; Nicolas Pauget
    Abstract: Since the mid 90’s, public transport patronage in Île-de-France (the Paris region) has increased substantially: over the last decade alone a 20% growth was observed. This growth, even though it was an aim of the Sustainable Urban Mobility plan adopted in 2000, was not completely anticipated. Consequently, the capacity is no longer sufficient to meet the demand during the peak hours, particularly on several parts of the network in the dense central area of the region. This results in over-crowded vehicles and long waiting times for passengers at rail platforms and bus stops. The lack of maintenance and modernisation of the transport system causes additional operational difficulties.
    Date: 2013–09–19
  34. By: Nathan, Max (London School of Economics)
    Abstract: In recent years, the economics of migration literature has shown a substantial growth in papers exploring host country impacts beyond the labour market. Specifically, researchers have begun to shift their attention from labour market and fiscal changes, towards exploring what we might call ‘the wider effects of migration' on the production and consumption sides of the economy – and the role of high-skilled migrants in these processes. This paper surveys the emerging ‘wider impacts' literature, including studies from the US, European and other countries. It sets out some simple, non-technical frameworks, discusses the main empirical findings and identifies avenues for future research.
    Keywords: immigration, high-skill migrants, innovation, entrepreneurship, investment, productivity, cities
    JEL: G23 G24 J15 J61 L5 L26 M12 M13 O31 O32 R11
    Date: 2013–09
  35. By: Eva Dettmann; Iciar Dominguez Lacasa; Jutta Günther; Björn Jindra
    Abstract: This paper analyses the determinants of spatial distribution of foreign technological activity across 96 German regions (1996-2009). We identify foreign inventive activity by applying the ‘cross-border-ownership concept’ to transnational patent applications. The descriptive analysis shows that foreign technological activity more than doubled during the observation period with persistent spatial heterogeneity in Germany. Using a pooled count data model, we estimate the effect of various sources for externalities on the extent of foreign technological activity across regions. Our results show that foreign technological activity is attracted by technologically specialised sectors of regions. In contrast to existing findings this effect applies both to foreign as well as domestic sources of specialisation. We show that the relation between specialisation and foreign technological activity is non-linear and that it is influenced by sectoral heterogeneity. Externalities related to technological diversification attract foreign R&D only into ‘higher order’ regions.
    Keywords: foreign direct investment, technology, Europe, patent data
    JEL: O32 O33 R12
    Date: 2013–10
  36. By: Raul Ramos (Faculty of Economics, University of Barcelona); Jordi Suriñach (Faculty of Economics, University of Barcelona)
    Abstract: Due to ageing population and low birth rates, the European Union (EU) will need to import foreign labour in the next decades. In this context, the EU neighbouring countries (ENC) are the main countries of origin and transit of legal and illegal migration towards Europe. Their economic, cultural and historical links also make them an important potential source of labour force. The objective of this paper is to analyse past and future trends in ENC-EU bilateral migration relationships. With this aim, two different empirical analyses are carried out. First, we specify and estimate a gravity model for nearly 200 countries between 1960 and 2010; and, second, we focus on within EU-27 migration flows before and after the enlargement of the EU. Our results show a clear increase in migratory pressures from ENC to the EU in the near future, but South-South migration will also become more relevant.
    Keywords: absorptive capacity, inventor mobility, spatial networks, patents, regional innovation. JEL classification:
    Date: 2013–10
  37. By: José A Carrasco-Gallego; Margarita Rubio
    Abstract: The recent financial crisis has raised the discussion among policy makers and researchers on the need of macroprudential policies to avoid systemic risks in financial markets. However, these new measures need to be combined with the traditional ones, namely monetary policy. The aim of this paper is to study how the interaction of macroprudential and monetary policies affect the economy. We take as a baseline a dynamic stochastic general equilibrium (DSGE) model which features a housing market in order to evaluate the performance of a rule on the loan-to-value ratio (LTV) interacting with the traditional monetary policy conducted by central banks. We find that, introducing the macroprudential rule mitigates the effects of booms on the economy by restricting credit. From a normative perspective, results show that the combination of monetary policy and the macroprudential rule is unambiguously welfare enhancing, especially when monetary policy does not respond to output and house prices and only to inflation.
    Keywords: Macroprudential, monetary policy, collateral constraint, credit,loan-to-value
  38. By: Klimczuk, Andrzej
    Abstract: The shaping of creative economy is particularly important for development of cities and regions. This process can be analyzed in conjunction with changes in work and leisure time and their place in the human life cycle. This article aims to approximate the main features of: contemporary position of elderly people, creative ageing policy, benefits from seniors creativity and controversies linked to this concept. This essay also indicates the patterns of recommendations and activities in development of services for older people which may be the subject of further in-depth research. These examples exist in: (1) documents and strategic programs, (2) the activities of network organizations and (3) the activities of urban cultural and artistic institutions.
    Keywords: creative capital, creative economy, silver economy, arts and ageing, cultural and artistic institutions, creative ageing policy, intergenerational policy
    JEL: J14 Z13 Z18
    Date: 2013
  39. By: Perdamen Sagala (International University of University); Takahiro Akita (International University of University); Arief Anshori Yusuf (University of Padjadjaran, Indonesia)
    Abstract: Focusing on Indonesia, this study analyzes the relationship between inequality and the process of urbanization. It performs a panel data regression analysis to test the Kuznets inverted-U hypothesis for urbanization based on a provincial panel data set of 33 provinces over the period 2000-2009, constructed by using the core National Socio-economic Survey (core Susenas). Our results support the Kuznets inverted-U hypothesis, whether the Gini coefficient or the Theil indices are used as a measure of inequality. According to our estimates, expenditure inequality would reach the peak at an urbanization rate of around 46-50%. Since the 2010 urbanization rate is 50%, this indicates that expenditure inequality has already attained the peak value. Thus, further urbanization would decrease expenditure inequality, but all other things being equal.
    Keywords: urbanization, expenditure inequality, Kuznets hypothesis, panel data regression, Indonesia
    JEL: O18 R11
    Date: 2013–09
  40. By: Parker, Chris (New Zealand Institute of Economic Research)
    Abstract: This paper develops formulations for estimating the economic welfare impacts of transport strategies that change land use. The formulations seek to use outputs of transport modelling typically used for transport appraisal.
    Keywords: transport; cost benefit analysis; land use; New Zealand
    JEL: D61 R14 R40
    Date: 2013–06–05
  41. By: Rüdiger, Sina
    Abstract: This paper studies the actions of the U.S. Federal Reserve Bank during the financial crisis from 2007-2012. Whereas the first two parts concentrate on asset bubble theory and the development of the housing bubble, the third part rates the performance of the Federal Reserve during the crisis. The chosen scoring model approach shows that the average performance of five specific measures taken by the Federal Reserve only ranks between fair and good. Comparing Stiglitz (2010) viewpoints with those of the Federal Reserve, this paper analyzes the federal funds rate, the bailout of AIG, the lending to Bear Stearns, the Term Auction Facility and the failure of Lehman Brothers. This paper argues that the resulting decisions were well intentioned but that the outcome was different from expectations because of missing regulations and restrictions. Furthermore, the structure of the Federal Reserve is examined and criticized. --
    Keywords: Federal Reserve,financial crisis,housing bubble,monetary policy
    JEL: E52 E58
    Date: 2013
  42. By: Nguyen, Cuong; Phung, Tung; Westbrook, Daniel
    Abstract: To increase the opportunities for poor ethnic minorities to benefit from economic growth the government of Vietnam implemented one of the biggest poverty reduction programs entitled ‘Socio-economic Development for the Communes Facing Greatest Hardships in the Ethnic Minority and Mountainous Areas’ during 2006 - 2010. This paper estimates the program’s impacts on households in the project areas. We find that the program had positive impacts on several important outcomes of the ethnic minority households, including productive asset ownership, household durables ownership, and rice productivity. Positive impacts were also recorded for agricultural income, household total income, and household per-capita income. A particularly important result is that poverty among minority households in treatment communes declined significantly more than it declined in comparison communes. Finally, ethnic minority households enjoyed a reduction in travel time to health facilities, relative to households in control communes.
    Keywords: Poverty reduction, ethnic minority, household survey, Vietnam.
    JEL: H43 I3 O1 O10
    Date: 2013–06–22
  43. By: Lehmann, Etienne (CRED, Université Panthéon Assas Paris 2); Simula, Laurent (Uppsala University); Trannoy, Alain (EHESS, Paris)
    Abstract: We investigate how potential tax-driven migrations modify the Mirrlees income tax schedule when two countries play Nash. The social objective is the maximin and preferences are quasilinear in income. Individuals differ both in skills and migration costs, which are continuously distributed. We derive the optimal marginal income tax rates at the equilibrium, extending the Diamond-Saez formula. The theory and numerical simulations on the US case show that the level and the slope of the semi-elasticity of migration on which we lack empirical evidence are crucial to derive the shape of optimal marginal income tax. Our simulations show that potential migrations result in a welfare drop between 0.4% and 5.3% for the worst-off and an average gain between 18.9% and 29.3% for the top 1%.
    Keywords: optimal income tax, income tax competition, migration, labor mobility, Nash-equilibrium tax schedules
    JEL: D82 H21 H87
    Date: 2013–09
  44. By: Landier, Augustin; Sraer, David; Thesmar, David
    Abstract: This paper documents a steady increase in the average correlation of house price growth across US states over the 1976-2006 period and shows that this phenomenon can be explained in large part by the geographic integration of the banking market over this period. We theoretically derive an appropriate measure of banking integration across state pairs and document that the cross section of state pair correlations is strongly related to this measure of nancial integration. We then use bilateral cross state banking deregulations to instrument banking integration of a state pair. Using our IV estimates, we nd that nancial integration of the US banking market explains about 25% of the rise of the average home price correlation over the period.
    Date: 2013–03
  45. By: Mia Amalia; Budy P. Resosudarmo; Jeff Bennett
    Abstract: Since the early 1990s, the air pollution level in the Jakarta Metropolitan Area (JMA) has arguably been one of the highest among mega cities in developing countries. This paper utilises the self-reporting data on illnesses available in the 2004 National Socio-Economic Household Survey (Survei Sosial Ekonomi Nasional, or SUSENAS) to test the hypothesis that air pollution impacts human health, particularly among children, in JMA. Test results confirm that air pollution, represented by the PM10 level in a sub-district, does significantly correlate with the level of human health problems, represented by the number of restricted activity days (RAD) in the previous month. The results also show that a given level of PM10 concentration is more hazardous for children.
    Keywords: Air pollution, environmental economics, health economics and exposure response model
    JEL: Q53 Q51 I18
    Date: 2013
  46. By: Allen J.P.; Velden R.K.W. van der; Levels M. (GSBE)
    Abstract: In this paper, we empirically explore how the often reported relationship between overeducation and wages can best be understood. Exploiting the newly published Programme for International Assessment of Adult Competencies PIAAC data OECD 2013, we are able to achieve a better estimation of the classical ORU-model Duncan and Hoffman, 1981, by controlling for heterogeneity of observable skills. Our findings suggest that 1 a considerable part of the effect of educational mismatches can be attributed to skills heterogeneity, and 2 that the extent to which skills explain educational mismatches varies by institutional contexts. These observations suggest that skills matter for explaining wage effects of education and educational mismatches, but the extent to which this is the case also depends on institutional contexts.
    Keywords: Analysis of Education; Education and Economic Development; Labor Demand; Human Capital; Skills; Occupational Choice; Labor Productivity;
    JEL: I21 I25 J23 J24
    Date: 2013
  47. By: Junko Sagara; Mikio Ishiwatari
    Keywords: Water Supply and Sanitation - Town Water Supply and Sanitation Communities and Human Settlements - Urban Slums Upgrading Environment - Natural Disasters Urban Development - Hazard Risk Management Transport Economics Policy and Planning Transport
    Date: 2013–01
  48. By: Raghbendra Jha
    Abstract: This paper underscores the substantial spatial disparities across India and evaluates the case for putting together (various versions) of the Goods and Service Tax (GST) and also indicates the risks involved in the process. This paper argues that, on balance, there is a case for an appropriately constituted GST but that the federal transfer formula must be sensitive to any fallout from such a move. The paper also argues that there is an urgent need to review the totality of transfers from the central to state governments and local bodies. This review would include transfers through Finance Commission, Planning Commission and Centrally Sponsored Schemes. There is a compelling necessity to review and recalibrate the entire gamut (and not piecemeal) of federal relations – tax, expenditure and transfers. This is critical to ensure the stability and predictability needed to ensure that India’s state driven growth blossoms and attains full fruition.
    Keywords: Fiscal Federalism, GST, federal transfers, India
    JEL: H2 H5 H6 H7 O5
    Date: 2013
  49. By: Katarzyna Sznajd-Weron; Janusz Szwabinski; Rafal Weron; Tomasz Weron
    Abstract: A fundamental question related to innovation diffusion is how the social network structure influences the process. Empirical evidence regarding real-world influence networks is very limited. On the other hand, agent-based modeling literature reports different and at times seemingly contradictory results. In this paper we study innovation diffusion processes for a range of Watts-Strogatz networks in an attempt to shed more light on this problem. Using the so-called Sznajd model as the backbone of opinion dynamics, we find that the published results are in fact consistent and allow to predict the role of network topology in various situations. In particular, the diffusion of innovation is easier on more regular graphs, i.e. with a higher clustering coefficient. Moreover, in the case of uncertainty – which is particularly high for innovations connected to public health programs or ecological campaigns – a more clustered network will help the diffusion. On the other hand, when social influence is less important (i.e. in the case of perfect information), a shorter path will help the innovation to spread in the society and – as a result – the diffusion will be easiest on a random graph.
    Keywords: Diffusion of innovation; Opinion dynamics; Network structure; Watts-Strogatz network;
    JEL: C63 D70 O33
    Date: 2013–10–20
  50. By: Andrzej, Klimczuk
    Abstract: Purpose of this article is to introduce the concept of a new cultural institution, "medialab". Media laboratory is an interdisciplinary institution that combines the tasks of scientific, educational, cultural and artistic institutions. They are spaces in which technology and digital media are designed. Article introduces the main features of medialabs and possible public tasks in the field of regional cultural policy and innovation policy. It also draws attention to the challenges and barriers in the organization and management of these centers.
    Keywords: creative industries, cultural policy, innovation policy, interdisciplinary institutions, technology transfer
    JEL: O31 O32 Z11 Z13
    Date: 2013
  51. By: Douglas Gollin (Oxford University); Remi Jedwab (George Washington University); Dietrich Vollrath (University of Houston)
    Abstract: Many theories link urbanization with industrialization; in particular, with the production of tradable (and typically manufactured) goods. We document that the expected relationship between urbanization and the level of industrialization is not present in a sample of developing economies. The breakdown occurs due to a large sub-sample of resource exporters that have urbanized without increasing output in either manufacturing or industrial services such as finance. To account for these stylized facts, we construct a model of structural change that accommodates two different paths to high urbanization rates. The first involves the typical movement of labor from agriculture into industry, as in many models of structural change; this stylized pattern leads to what we term "production cities" that produce tradable goods. The second path is driven by the income effect of natural resource endowments: resource rents are spent on urban goods and services, which gives rise to "consumption cities" that are made up primarily of workers in non-tradable services. We document empirically that there is such a distinction in the employment composition of cities between developing countries that rely on natural resource exports and those that do not. Our model and the supporting data suggest that urbanization is not a homogenous event, and this has possible implications for long-run growth.
    Keywords: Structural Change; Urbanization; Industrialization
    JEL: L16 N10 N90 O18 O41 R10

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