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on Urban and Real Estate Economics |
| By: | Furlong, Frederick T. (Federal Reserve Bank of San Francisco); Takhtamanova, Yelena (Federal Reserve Bank of San Francisco); Lang, David (Federal Reserve Bank of San Francisco) |
| Abstract: | The U.S. housing boom during the first part of the past decade was marked by rapid house price appreciation and greater access to mortgage credit for lower credit-rated borrowers. The subsequent collapse of the housing market and the high default rates on residential mortgages raise the issue of whether the pace of house price appreciation and the mix of borrowers may have affected the influence of fundamentals in housing and mortgage markets. This paper examines that issue in connection with one aspect of mortgage financing, the choice among fixed-rate and adjustable-rate mortgages. This analysis is motivated in part by the increased use of adjustable-rate mortgage financing, notably among lower credit-rated borrowers, during the peak of the housing boom. Based on analysis of a large sample of loan level data, we find strong evidence that house price appreciation dampened the influence of a number of fundamentals (mortgage pricing terms and other interest rate related metrics) that previous research finds to be important determinants of mortgage financing choices. With regard to the mix of borrowers, the evidence indicates that, while low risk-rated borrowers were affected on the margin more by house price appreciation, on balance those borrowers tended be at least as responsive to fundamentals as high risk-rated borrowers. The higher propensity of low credit-rated borrowers to choose adjustable-rate financing compared with high credit-rated borrowers in the housing boom appears to have been related to borrower credit risk metrics. Given the evidence related to loan pricing terms, other interest rate metrics and fixed effects, the relation of credit risk to mortgage financing choice seems more consistent with considerations such as credit constraints, risk preferences, and mortgage tenor than just a systematic lack of financial sophistication among higher credit risk borrowers. |
| Keywords: | mortgage choice; mortgage contracts; household finance; fixed-rate; adjustable-rate |
| JEL: | D1 G11 G21 R2 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedfwp:2014-05&r=ure |
| By: | Dai, Danielle; Weinzimmer, David |
| Abstract: | Employer-provided private shuttles have become a prominent part of the transportation network between San Francisco and Silicon Valley. As the Bay Area plans for transportation investments to meet sustainability goals and accommodate future population and employment growth, an understanding of the role of regional commuter shuttles becomes increasingly important. This study investigates the impacts of private shuttles on commute mode and residential location choice by conducting a travel time comparison and surveying shuttle riders. The authors find that the provision of shuttles and knowledge of shuttle stops influences both commute mode and residential location choice. Shuttles are an attractive option due to their time and cost savings compared to other modes. However, shuttles exacerbate the jobs-housing imbalance by enabling individuals to live farther from work. The extent to which location of shuttle stops influences residential location choice varies from person to person, though the vast majority of shuttle riders live within a short walk from the nearest shuttle stop. Policies should strike a balance between improved sustainability with existing land use patterns and better long-term regional transportation and land use planning. |
| Keywords: | Engineering, Social and Behavioral Sciences, Commuting, Land use planning, Mode choice, Residential location, San Francisco Bay Area, Shuttle buses, Silicon Valley |
| Date: | 2014–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt2jr7z01q&r=ure |
| By: | McCarthy, Yvonne (Central Bank of Ireland); McQuinn, Kieran (Central Bank of Ireland) |
| Abstract: | The life-cycle theory of consumption draws a well-established distinction between the implications for consumption of changes in wealth perceived to be of a "transitory" as opposed to a "permanent" nature. In this paper, using a unique combination of regulatory and survey micro-data, we examine the importance of the life-cycle theory, in estimating housing wealth effects for the Irish mortgage market. In the aftermath of the recent financial crisis, this market has experienced substantial levels of house price declines and negative equity. Thus, house price expectations are likely to be of major importance in influencing housing wealth effects. Our results suggest that mortgaged Irish households exhibit a relatively large wealth effect out of housing when compared with other countries and, in accordance with the life-cycle theory, households' price expectations are influencial in determining the consumption repsonse to shocks. |
| Keywords: | Consumption, House Prices, Income, Wealth |
| JEL: | E21 R30 D12 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:cbi:wpaper:06/rt/13&r=ure |
| By: | Guy Michaels; Ferdinand Rauch |
| Abstract: | After the fall of the Roman Empire, urban life in France became a shadow of its former self, but in Britain it completely disappeared. Guy Michaels and Ferdinand Rauch use these contrasting experiences as a natural experiment to explore the impact of history on economic geography - and what leads cities to get stuck in undesirable locations. |
| Keywords: | Economic Geography, Economic History, Path Dependence, Transportation |
| JEL: | R11 N93 O18 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:408&r=ure |
| By: | Timothy J. Bartik (W.E. Upjohn Institute for Employment Research); Marta Lachowska (W.E. Upjohn Institute for Employment Research) |
| Abstract: | We use a regression-discontinuity design to study the effects of double blocking sixth-grade students in reading and mathematics on their achievement across three years of middle school. To identify the effect of the intervention, we use sharp cutoffs in the test scores used to assign students to double blocking. We find large, positive, and persistent effects of double blocking in reading, but, unlike previous research, we find no statistically significant effects of double blocking in mathematics either in the short run or medium run. |
| Keywords: | Regression discontinuity, Double blocking, Middle school |
| JEL: | I21 C21 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:upj:weupjo:14-205&r=ure |
| By: | Pasquale Commendatore (University of Naples Federico II); Ingrid Kubin (Department of Economics, Vienna University of Economics and Business); Carmelo Petraglia (University of Basilicata); Iryna Sushko (Institute of Mathematics, National Academy of Sciences of Ukraine) |
| Abstract: | This paper presents a 3-Region footloose-entrepreneur new economic geography model. Two symmetric regions are part of an economically integrated area (the Union), while the third region represents an outside trade partner. We explore how the spatial allocation of industrial production and employment within the Union is affected by changes in two aspects of trade liberalisation: regional integration and globalisation. Our main contribution pertains to the analysis of the local and global dynamics of the specified factor mobility process. We show that significant parameter ranges exist for which asymmetric distribution of economic activities is one of the possible long-run outcomes. This is a remarkable result within the NEG literature. We then analyse the impact of international trade liberalisation on the dynamics of agglomeration conditional on the endowments of skilled and unskilled labour of the outside region. |
| Keywords: | Industrial agglomeration, New Economic Geography, footloose entrepreneurs, local and global dynamics, bifurcation scenarios |
| JEL: | C62 F12 F2 R12 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp164&r=ure |
| By: | Timothy J. Bartik (W.E. Upjohn Institute for Employment Research) |
| Abstract: | This paper estimates how effects of shocks to local labor demand on local labor market outcomes vary with initial local economic conditions. The data are on U.S. metro areas from 1979 to 2011. The paper finds that demand shocks to local job growth have greater effects in reducing local unemployment rates if the local economy is initially depressed than if the local economy is booming. Demand shocks have greater effects on local wage rates if the local unemployment rate is initially low, but lesser effects if local job growth is initially high. These different effects of local demand shocks imply that social benefits of adding jobs are two to three times greater per job in more depressed local labor markets, compared to more booming local labor markets. |
| Keywords: | Local labor markets, labor demand, social benefits of job creation |
| JEL: | R23 H43 J64 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:upj:weupjo:14-202&r=ure |
| By: | Thomas Coisnon (GRANEM, Agrocampus Ouest, Université d’Angers, 2 rue André Le Nôtre 49000 Angers, France); Walid Oueslati (Centre for Rural Economy, University of Newcastle, Newcastle NE1 7RU, UK); Julien Salanié (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France, Université Jean Monnet, Saint-Etienne, F-42000, France) |
| Abstract: | Widespread public support exists for the provision of natural amenities, such as lakes, rivers or wetlands, and for efforts to preserve these from agricultural pollution. Agri-environmental policies contribute to these efforts by encouraging farmers to adopt environmentally friendly practices within the vicinity of these ecosystems. A spatially targeted agri-environmental policy promotes natural amenities and may thereby affect household location decisions. The purpose of this paper is to investigate the extent of these impacts on the spatial urban structure. We extend a monocentric city model to include farmers’ responses to an agri-environmental policy. Our main findings are that the implementation of a spatially targeted agrienvironmental policy may lead to some additional urban development, which could conflict with the aim of the policy. |
| Keywords: | Land development, Urban sprawl, Leapfrog, Land rent, Monocentric model, Farming, Agri-environmental policy, Spatial targeting, Agricultural pollution |
| JEL: | R14 R21 Q18 Q24 Q25 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1401&r=ure |
| By: | Clark, Damon; Del Bono, Emilia |
| Abstract: | This paper estimates the impact of elite school attendance on long- run outcomes including completed education, income and fertility. Our data consists of individuals born in the 1950s and educated in a UK dis- trict that assigned students to either elite or non-elite secondary schools. Using instrumental variables methods that exploit the school assign- ment formula, we find that elite school attendance had large impacts on completed education. For women, we find that elite school attendance generated large improvements in labor market outcomes and significant decreases in fertility; for men, we find no elite school impacts on any of these later-life outcomes. |
| Date: | 2014–02–11 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2014-05&r=ure |
| By: | James Bugden (School Economics, La Trobe University) |
| Abstract: | In the standard repeat-sales method, the maintained assumption is that the quality does not change between a house?s two sale dates. This assumption has been called into question. In particular quality changes from renovations carried out between a house?s two sales are not accounted for in the repeat- sales method. In this paper, I consider four simple adjustments to the standard repeat- sales method that attempt to control for quality changes between sales: in- cluding an intercept term; including a set of neighbourhood indicators as independent variables; de?ating the dependent variable appreciation rates by an estimate of renovations between sales; and dropping short-hold repeat- sales. I fi?nd that the neighbourhood and renovations methods work best and that the standard repeat-sales house price index signi?cantly over-estimates housing in?ation by over twenty percentage points over a a decade |
| Keywords: | Price Indices, Repeat-Sales, Renovations, Housing |
| JEL: | R31 C43 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:trb:wpaper:2014.01&r=ure |
| By: | Giulia Faggio |
| Abstract: | This paper assesses the local labour market impact of a UK public sector relocation initiative labeled the Lyons Review. The review resulted in the dispersal of more than 25,000 civil servants out of London and the South East towards other UK destinations. The objective of the paper is to detect whether inflows of public sector jobs have crowded out private sector activity or stimulated the local provision of additional jobs in the private sector. By applying a difference-in-difference approach, I evaluate the policy impact comparing areas in close proximity to a relocation site with areas further away. I find that the dispersal of public sector workers that followed the implementation of the Lyons Review had a positive impact on local services with a negative, but weaker, impact on manufacturing. |
| Keywords: | Economic development, regional labour markets, regional government policy, job displacement |
| JEL: | O1 R23 R58 J61 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0155&r=ure |
| By: | Steve Gibbons; Olmo Silva; Felix Weinhardt |
| Abstract: | There are large disparities between the achievements, behaviour and aspirations of children in different neighbourhoods - but does this mean that the place where you grow up determines your later life outcomes? Steve Gibbons, Olmo Silva and Felix Weinhardt outline the findings of a series of CEP studies of 'neighbourhood effects'. |
| Keywords: | Education, behaviour, attainment, neighbourhood effects, cognitive and non-cognitive outcomes, schools |
| JEL: | C21 I20 H75 R23 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:cep415&r=ure |
| By: | Tanja Sinozic; Tanja Sinozic; Tanja Sinozic; Franz Tödtling; Franz Tödtling; Franz Tödtling |
| Abstract: | This paper explores cluster change using the case example of New Media in Vienna. It addresses the question of how cluster elements (such as firms and institutions) interact to shape and transform the thematic and spatial boundaries of clusters as they shift along their developmental stages. Clusters go through different phases underpinned by technical change, renewing and destroying previous cluster specialisations. Creativity is a key feature in modern economies underlying competitiveness in a range of sectors which cluster in urban areas. Sectors such as software and computer services, advertising and market research, printing and reproduction of recorded media, motion pictures, creative arts and entertainment are supported by regional conditions that enable creative processes in local interacting firms, and the translation of ideas into innovative products and services. These perspectives are used to explore the New Media cluster in Vienna based on 25 semi-structured interviews with firms specialising in New Media technology areas. When analysed using a life cycle perspective of clusters, the findings in this paper suggest that cluster thematic boundaries are shaped by change in technological variety via complex processes such as inter-disciplinary problem-solving in projects, re-activation of latent local and global networks, and firm capabilities to respond to rapidly changing client needs in devices, communication and design. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwsre:sre-disc-2014_01&r=ure |
| By: | Alm, James; Hodge, Timothy R.; Sands, Gary; Skidmore, Mark |
| Abstract: | In this paper we develop a theoretical model of the individual decision to become delinquent on one’s property tax payments. We then apply the model to the City of Detroit, Michigan, USA, where the city is in the midst of bankruptcy proceedings, and a rate of property tax delinquency of 48 percent, resulting in uncollected tax revenues of about 20 percent. We use detailed parcellevel data for Detroit to evaluate the factors that affect both the probability that a property owner is tax delinquent and, conditional upon delinquency, the magnitude of the delinquency. Our estimates show that properties that have lower value, longer police response times, are nonhomestead (non-owner occupied residential properties), have a higher statutory tax rate, have a higher assessed value relative to sales price, are owned by a financial institution or by a Detroit resident, are delinquent on water bills, and for which the probability of enforcement is low are more likely to be tax delinquent These findings can be used to inform policies targeted at improving tax compliance within the City. |
| Keywords: | Property tax, Delinquency, Tax compliance, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:vuw:vuwcpf:3149&r=ure |
| By: | George Papageorgiou; George Halkos |
| Abstract: | This paper computes and analyses for the first time environmental efficiencies in waste generation of 160 European regions in NUTS 2 level in seven European countries. For this reason different Data Envelopment Analysis (DEA) model formulations are used modeling the pollutant in the form of waste generation as a regular output and as a regular input. In the latter case we also use the notion of ecoefficiency. The empirical findings reveal environmental inefficiencies among the regions indicating the lack of a uniform regional environmental policy among the European countries. This finding is observed not only between countries but also between regions in the same country, implying the need for implementation of appropriate municipal environmental policies in waste management. |
| Keywords: | Environmental efficiency, Waste generation, European regions, Data Envelopment Analysis |
| JEL: | C6 O13 O52 Q50 Q53 Q56 R11 |
| Date: | 2014–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:1401&r=ure |
| By: | Lucinda Platt (Department of Social Policy, London School of Economics and Political Science); Gundi Knies (Institute for Social and Economic Research, University of Essex); Alita Nandi (Institute for Social and Economic Research, University of Essex) |
| Abstract: | Using a rich, nationally representative data set with a large sample of minorities and matched small area characteristics, we explore differences in life satisfaction for ethnic groups living in UK. We test the hypothesis that minorities will be less satisfied, which will in part be explained by less favourable individual and area contexts, but that living in areas with a larger proportion of own ethnic group promotes well-being. We find that satisfaction is lower among minorities, ceteris paribus, but area concentration is associated with higher life satisfaction for certain groups. We discuss the implications of our findings. |
| Keywords: | Life Satisfaction, Happiness, Ethnic group, Neighbourhood, Subjective well-being, UKHLS |
| JEL: | I31 J15 R23 O15 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1407&r=ure |
| By: | Loayza, Norman V. (The World Bank); Rigolini , Jamele (The World Bank); Calvo-Gonzlez, Oscar (The World Bank) |
| Abstract: | This paper builds on a comprehensive dataset for Peru that merges municipal fiscal accounts with information about municipalities’ characteristics such as population, poverty, education and local politics to analyze the leading factors affecting the ability of municipalities to execute the allocated budget. According to the existing literature and the Peruvian context, we divide these factors into four categories: the budget size and allocation process; local capacity; local needs; and political economy constraints. While we do find that all four factors affect decentralization, the largest determinant of spending ability is the adequacy of the budget with respect to local capacity. The results confirm the need for decentralization to be implemented gradually over time in parallel with strong capacity building efforts. |
| Keywords: | Decentralization, Spending, Capacity, Governance |
| JEL: | H7 H83 O11 O23 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:apc:wpaper:2014-004&r=ure |
| By: | William R. Kerr (University, NBER, and Bank of Finland.) |
| Abstract: | High-skilled immigrants are a very important component of U.S. innovation and entrepreneurship. Immigrants account for roughly a quarter of U.S. workers in these fields, and they have a similar contribution in terms of output measures like patents or firm starts. This contribution has been rapidly growing over the last three decades. In terms of quality, the average skilled immigrant appears to be better trained to work in these fields, but conditional on educational attainment of comparable quality to natives. The exception to this is that immigrants have a disproportionate impact among the very highest achievers (e.g., Nobel Prize winners). Studies regarding the impact of immigrants on natives tend to find limited consequences in the short-run, while the results in the long-run are more varied and much less certain. Immigrants in the United States aid business and technology exchanges with their home countries, but the overall effect that the migration has on the home country remains unclear. We know very little about return migration of workers engaged in innovation and entrepreneurship, except that it is rapidly growing in importance. |
| Keywords: | Immigration, innovation, entrepreneurship, diaspora |
| JEL: | F15 F22 J15 J31 J44 L14 L26 O31 O32 O33 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:16&r=ure |
| By: | Arief Anshory Yusuf (Department of Economics, Padjadjaran University); Mark Horridge (Monash University); Edimon Ginting (Asian Development Bank); Priasto Aji (Asian Development Bank) |
| Abstract: | For the last 10 years, Indonesian economy suffers from a triple setback. First, it experiences a slowing-down in economic growth. Second, the rate of poverty reduction is also slowed down, and third, there has been no improvement in the inter-regional economic disparity. In 2011, Indonesian government set a new strategy by launching a master plan for the acceleration and expansion of economic development (MP3EI) in response to these challenges. The strategy divides Indonesia into 6 economic corridors with two aims: (1) to accelerate investment in each corridor focusing on sectors with high comparative advantage; (2) to accelerate infrastructure investment in each corridor. Using a multi-sectors and multi-regions computable general equilibrium model of the Indonesian economy, this paper evaluates the extent to which these strategies can reduce Indonesia's inter-regional disparity. The result of the analysis suggests that the direction of the MP3EI strategy is in line with its mission to reduce regional disparity as it can accelerate the growth of regions outside Java and Sumatera, particularly eastern regions (Maluku and Papua). However, it can be made more progressive by broadening the sectoral base of the investment target. The current strategy relies on sectors with high comparative advantage particularly capital-intensive resource-based sectors. A broad-based sectoral approach can generate more employment particularly in the least-developed regions and ensuring more progressive acceleration in the poverty reduction. |
| Keywords: | Regional development, MP3EI, Indonesia, Computable General Equilibrium |
| JEL: | R10 R11 R13 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:unp:wpaper:201402&r=ure |
| By: | Michael Ehrmann; Michael Ziegelmeyer |
| Abstract: | Mortgages constitute the largest part of household debt. An essential choice when taking out a mortgage is between fixed-interest-rate mortgages (FRMs) and adjustable-interest-rate mortgages (ARMs). However, so far, no comprehensive cross-country study has analyzed what determines household demand for mortgage types, a task that this paper takes up using new data for the euro area. Our results support the hypothesis of Campbell and Cocco (2003) that the decision is best described as one of household risk management: income volatility reduces the take-out of ARMs, while increasing duration and relative size of the mortgages increase it. Controlling for other supply factors through country fixed effects, loan pricing also matters, as expected, with ARMs becoming more attractive when yield spreads rise. The paper also conducts a simulation exercise to identify how the easing of monetary policy during the financial crisis affected mortgage holders. It shows that the resulting reduction in mortgage rates produced a substantial decline in debt burdens among mortgage-holding households, especially in countries where households have higher debt burdens and a larger share of ARMs, as well as for some disadvantaged groups of households, such as those with low income. |
| Keywords: | Length: 39 pages |
| JEL: | D12 E43 E52 G21 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:bcl:bclwop:bclwp084&r=ure |
| By: | Bertay, A.C. (Tilburg University, Center for Economic Research) |
| Abstract: | Abstract: This paper investigates the credit supply of banks in response to domestic and foreign real estate price changes. Using a large international dataset of multinational banks, we find evidence of a significant transmission of domestic real estate shocks into lending abroad. A 1% decrease in real estate prices in home country, in particular, leads to a 0.2-0.3% decrease in credit growth in the foreign subsidiary. This response, however, is asymmetric: only negative house price changes are transmitted. Stricter regulation of activities of parent banks can reduce this effect, indicating a role for regulation in alleviating the transmission of real estate shocks. Further, the analysis of the impact of real estate shocks on foreign subsidiary funding indicates that shocks are transmitted through changes in long-term debt funding and equity. |
| Keywords: | Internal capital markets;multinational banking;transmission of real estate shocks |
| JEL: | F23 F36 G21 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubcen:2014011&r=ure |
| By: | Arco, Joaquim (University of Algarve); Fragoso, António (University of Algarve) |
| Abstract: | This paper intends to reflect the ways in which eight primary school teachers constructed their learning identities in different contexts of their life courses. Different forms of learning suggest that educators faced hard transitions in their learning identities and careers. The biography of each interviewee was a dynamic process in which each used all their skills to build their own life’s trajectory. These educators had no fixed identities; they changed and became different persons. In each new situation their identities are (re) built, updated and modified. In each situation new experiences are encountered, which are integrated by the subjects in the process of biographical (re) construction. Each educator used their knowledge, their motivations and their experiences to build her/his biographical learning in a dialogue within the various contexts. The biography of each educator was being progressively constructed over the course of life, through the transition of multiple learning identities. This study is an example of teachers who did not follow a linear life course; they preferred to change, to face challenges, to take risks and to live the profession as a succession of learning identities. |
| Keywords: | Learning Identity; Biographical Knowledge; Biographycity; Educator Development |
| JEL: | I21 |
| Date: | 2014–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:ris:cieodp:2014_001&r=ure |
| By: | Bertoli, Simone; Rapoport, Hillel |
| Abstract: | A growing number of OECD countries are leaning toward adopting quality-selective immigration policies. The underlying assumption behind such policies is that more skill-selection should raise immigrants’ average quality (or education level). This view tends to neglect two important dynamic effects: the role of migration networks, which could reduce immigrants’ quality, and the responsiveness of education decisions to the prospects of migration. Our model shows that migration networks and immigrants’ quality can be positively associated under a set of sufficient conditions regarding the degree of selectivity of immigration policies, the initial pattern of migrants’ self-selection on education, and the way time-equivalent migration costs by education level relate to networks. The results imply that the relationship between networks and immigrants’ quality should vary with the degree of selectivity of immigration policies at destination. Empirical evidence presented as background motivation for this paper suggests that this is indeed the case. |
| Keywords: | migration; self-selection; brain drain; immigration policy; discrete choice models |
| JEL: | F22 O15 J61 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpm:docweb:1405&r=ure |
| By: | Frigant, Vincent; Miollan, Stéphane |
| Abstract: | The paper seeks to provide a quantitative and macroeconomic picture of the new geography of the automotive industry in Europe. Since ten new members joined the European Union in 2004, automakers and suppliers have changed their location strategies and now view the whole of Europe as a single fully integrated space. Using data on employment, production, trade and foreign control of affiliated firms, the paper measures the East-West relocation process. The first section studies the motor vehicle sector, highlighting a sharp rise in the activity levels of Central and Eastern European countries (CEEC), as well as the specific role that Germany plays. It is crucial to remember that motor vehicle manufacturing remains a key traditional economic activity for some of the larger Western European countries. The second section looks at the automotive parts sector. The CEECs’ growth is particularly impressive when consideration is given to employment, a variable largely driven by foreign firms’ decision to export much of their local production. At the same time, the offshoring process remains more or less selective even if it often revolves around labour-intensive activities – explaining in turn the creation today of embedded East-West networks. |
| Keywords: | automobile; Europe; deindustrialisation; relocation; offshoring; industry geography; auto parts industry |
| JEL: | F23 L23 L62 R12 |
| Date: | 2014–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53509&r=ure |
| By: | Hayashi, Fumiko (Federal Reserve Bank of Kansas City); Cuddy, Emily (Federal Reserve Bank of Kansas City) |
| Abstract: | Prepaid cards are the most rapidly growing payment instrument. General purpose reloadable (GPR) prepaid cards, in particular, have gained considerable traction especially among the unbanked and underbanked. How these cards are used is now of acute interest to both policymakers, seeking to ensure broad access to electronic payment methods, consumer protection for prepaid cards, and payments system security, and to payment card industry participants, desiring to advance their product offerings and business models. This study examines the end-user experience of using a GPR card. It investigates which factors, if any, affect the intensity and duration of GPR card use, estimates the fee burden associated with various card usage patterns, and calculates fraud rates by transaction and merchant type. Because we lack cardholder information other than zip code, we supplement our card data with local demographic and socioeconomic data to test whether these factors are correlated with the observed variation in card use and incurred fees. Our results suggest that both account and local socio-demographic characteristics significantly influence the life span, the load and debit activities, the shares of purchase and cash withdrawals, and the average number and value of fees incurred per month, and that transaction and merchant types influence the rate of fraudulent transactions. |
| Keywords: | Prepaid cards; Unbanked; Fraud risks; Payment card fees; General Purpose Reloadable; Electronic payments |
| Date: | 2014–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedkrw:rwp14-01&r=ure |
| By: | Rud, I.; Van Klaveren, C.; Groot, W., and Maassen van den Brink, H. |
| Keywords: | Restorative Justice, Education, Juvenile Crime, Field Experiment |
| JEL: | I2 K4 C93 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:tir:wpaper:49&r=ure |
| By: | David W. Johnston; Grace Lordan |
| Abstract: | This paper assesses whether racial prejudice and labour market discrimination is counter-cyclical. This may occur if prejudice and discrimination are partly driven by competition over scarce resources, which intensifies during periods of economic downturn. Using British Attitudes Data spanning three decades, we find that prejudice does increase with unemployment rates. We find greater counter-cyclical effects for highly-educated, middle-aged, full-time employed men. For this group, a 1%-point increase in unemployment raises self-reported racial prejudice by 4.1%-points. This result suggests that non-White workers are more likely to encounter racially prejudiced employers and managers in times of higher unemployment. Consistent with the estimated attitude changes, we find using the British Labour Force Survey that racial employment and wage gaps increase with unemployment. The effects for both employment and wages are largest for high-skill Black workers. For example, a 1%-point increase in unemployment increases Black-White employment and wage gaps for the highly educated by 1.3%-points and 2.5%. Together, the attitude and labour market results imply that non-Whites disproportionately suffer during recessions. It follows that recessions exacerbate existing racial inequalities. |
| Keywords: | Prejudice, Attitudes, Recessions, Racism, Discrimination |
| JEL: | J7 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1257&r=ure |