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on Urban and Real Estate Economics |
| By: | Votsis, Athanasios |
| Abstract: | This paper provides evidence for the spatial effects of ecosystems on value formation and differentiation in the urban residential property market. An amenity-based location theory is used in conjunction with hedonic function estimations from the Finnish cities of Helsinki, Espoo and Pori to distinguish between two different ways that ecosystems influence market value: a citywide spatial equilibrium and an additional layer of micro-scale fragmentation. The effect across spatial scales is complemented by two forms of distance decay: a logarithmic decay and a linear dependence on distance to the city centre. Lastly, the estimated marginal values exhibit noticeable temporal variation, even after using de-trended prices. The results highlight the structural role of the ecosystem in the housing market and suggest that the effect of ecosystem services is clearly conditional on the spatiotemporal context, with a visible degree of selectivity to specific services. It is also evident that a realistic understanding of the role of the ecosystem on property value must assess its effects as spatial bundles of services rather than singular flows of one service at a time. |
| Keywords: | urban ecosystems; spatial effects; residential property value |
| JEL: | C31 Q51 Q57 R31 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53742&r=ure |
| By: | Keren Mertens Horn |
| Keywords: | Residential Investment, School Performance, House Prices |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:mab:wpaper:24&r=ure |
| By: | Amy Ellen Schwartz; Ioan Voicu; Keren Mertens Horn |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:mab:wpaper:23&r=ure |
| By: | Remi Jedwab (Department of Economics/Institute for International Economic Policy, George Washington University); Edward Kerby (London School of Economics and Political Science); Alexander Moradi (University of Sussex) |
| Abstract: | Little is known about the extent and forces of urban path dependence in developing countries. Railroad construction incolonialKenyaprovidesanaturalexperimenttostudytheemer- gence and persistence of this spatial equilibrium. Using new data ataï¬nespatialleveloveronecenturyshowsthatcolonialrailroads causally determined the location of European settlers, which in turn decided the location of the main cities of the country at inde- pendence. Railroads declined and settlers left after independence, yet cities persisted. Their early emergence served as a mechanism to coordinate investments in the post-independence period, yield- ing evidence for how path dependence influences development. |
| Keywords: | Path Dependence; Urbanisation; Transportation; Colonialism |
| JEL: | R11 R12 R40 O18 O33 N97 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:gwi:wpaper:2014-02&r=ure |
| By: | Remi Jedwab (Department of Economics/Institute for International Economic Policy, George Washington University); Luc Christiaensen (Development Research Group, The World Bank); Marina Gindelsky (Department of Economics, George Washington University) |
| Abstract: | Standard models explain urbanization by rural-urban migration in response to an (expected) urban-rural wage gap. The Green Revolution and rural poverty constitute rural push factors of migration. The Indus- trial Revolution and the urban bias are urban pull factors. This paper offers an additional demographic mechanism, based on internal urban population growth, i.e. an urban push. Using newly compiled historical data on urban birth and death rates for 7 countries from Industrial Europe (1800-1910) and 33 developing countries (1960-2010), we show that many cities of to- day’s developing world are “mushroom cities†vs. the “killer cities†of In- dustrial Europe; fertility is high, while mortality is much lower. The high rates of urban natural increase have then accelerated urban growth and ur- banization in developing countries, with urban populations now doubling every 18 years (15 years in Africa), compared to every 35 years in Industrial Europe. This is further found to be associated with higher urban congestion, possibly mitigating the beneï¬ts from agglomeration and providing further insights into the phenomenon of urbanization without growth. Both migra- tion and urban demographics must be considered in debating urbanization. |
| Keywords: | Urbanization;DemographicTransition;Migration;Poverty;Slums |
| JEL: | O1 O18 R11 R23 J11 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:gwi:wpaper:2014-04&r=ure |
| By: | Andersson, Martin (CIRCLE, Lund University); Gråsjö, Urban (University West); Karlsson, Charlie (Jönköping International Business School, and Centre of Excellence for Science and Innovation Studies (CESIS)) |
| Abstract: | Multinational firms (MNFs) have been shown to have a set of defining characteristics. Compared to domestic firms, they have a larger fraction of skilled workers, higher R&D to sales ratios and established networks to knowledge sources in several different countries. As illustrated by the so-called ‘anchor-tenant’ hypothesis, they can be described as “knowledge spillover agents”. MNF affiliates, as defined in this paper, are firms that are part of large domestic and foreign MNFs. In this paper we test whether the local presence of MNF affiliates generate spillover effects on the local industry. The empirical analysis focuses on as¬sessing whether the productivity of the regional manufacturing industry of non-affiliated firms is higher in regions with a large fraction of MNF affiliates. The analysis uses data on Swedish firms and is conducted on regional level as well as on firm level. The regressions show that local presence of MNFs in a region has a positive effect on Gross Regional Product (GRP) from non-MNFs. The paper also shows that regions where the low-productive non-MNFs are located appear to benefit the most from local presence of MNFs. The MNFs have, on the other hand, no effect on non-MNF productivity in regions where the high-productive non-MNFs are located. |
| Keywords: | Multinational firms; affiliates; productivity; R&D; knowledge; spillovers; skilled workers; region |
| JEL: | F23 J24 O33 R11 |
| Date: | 2014–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0343&r=ure |
| By: | Olga A. Demidova (National Research University Higher School of Economics) |
| Abstract: | The purpose of this study is to identify the spatial effects of the main macroeconomic indicators of the eastern and western regions of Russia. These regions differ significantly in population density and the distances between cities. The main research question we are interested in is the following: how are events occurring in one of the western regions, such as economic growth or a decrease in the unemployment rate, effecting similar indicators in other western and eastern regions. The spatial effects of the western and eastern regions, when considered separately, may differ both qualitatively and with of the ‘flow on effect’. The determinants of the same macro-economic indicators in the eastern and western regions may also differ. In order to test the hypothesis of a possible difference in the spatial effects and determinants for these regions, we have developed a special class of model with four spatial matrices (west-west, east-east, west-east, and east-west) and a double set of control variables (one for each type of region). As the macroeconomic indicators monitor the rate of unemployment in the region, the real regional wage and GRP growth for the year were chosen for our models. We controlled the variables describing the socio-demographic situation in the region, migration processes, economic development, and export-import activity in the region. The models were estimated by the Arellano-Bond method on panel data for Russian regions over 2000-2010. Our analysis revealed, 1) a positive spatial correlation of the main macroeconomic indicators for the western regions, 2) both positive and negative externalities for the eastern regions and 3) the asymmetric influence of eastern and western regions on each other. Usually “impulses” from the western regions have a positive effect on the eastern regions, but the “impulses” from the eastern regions usually do not affect the western regions. |
| Keywords: | Russian regions, spatial effects, spatial econometric models |
| JEL: | R1 C21 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:50/ec/2014&r=ure |
| By: | Elena Vakulenko (National Research University Higher School of Economics) |
| Abstract: | We analyze the impact of migration on wages, income and the unemployment rate. Using the official Russian statistical database from 1995 to 2010, we calculate a dynamic panel data model with spatial effects. There is a positive spatial effect for wages and unemployment. There is no significant impact of migration on the unemployment rate. We find a negative relationship between net internal migration and both wages and income, which is explained by the positive effect of emigration. However, the migration benefits are not big enough to make a difference on the Gini index across regions. We conclude that migration does not affect the regional convergence of economic indicators. |
| Keywords: | convergence, migration, wage, income, unemployment rate, spatial dynamic panel data models. |
| JEL: | R23 C23 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:53/ec/2014&r=ure |
| By: | S. Chandrasekhar (Indira Gandhi Institute of Development Research); Ajay Sharma (Indira Gandhi Institute of Development Research) |
| Abstract: | This paper seeks to understand what kind of economic activities are concentrated in which regions of India. Spatial concentration of jobs is measured by calculating the location quotient using information on the industry of work of the individuals in a region. The paper uses data from NSSO 2011-12 survey of employment and unemployment. |
| Keywords: | Location Quotient, Spatial Concentration, Jobs |
| JEL: | R10 R12 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2014-002&r=ure |
| By: | Liang, Lin; Lin, Shanglang; Li, Yong |
| Abstract: | This paper empirically tests the effect of financial knowledge spillovers on agglomeration in China's financial services industry and examines the external effects on cities' economies. The authors apply hierarchical linear modeling to examine a data set that comprises 276 Chinese cities and draw the following conclusions. Firstly, they find that agglomeration in the financial services industry and the Jacobs spillovers of industry diversification both promote financial knowledge spillovers in terms of industry specialization. Secondly, agglomeration in this studied industry has a significant positive influence on a city's economic growth, while financial knowledge spillovers have a significant but negative effect on a city's economic growth. Thirdly, the tendency towards agglomeration in the financial services industry in a few major cities is clear and the clustering significantly influences cities' boundaries. Finally, China's financial services industry is limited by a serious degree of regulation and is dominated by the main banking institutions. -- |
| Keywords: | financial services industry agglomeration,industry specialization,knowledge spillovers,city economies,hierarchical linear modeling |
| JEL: | G20 O4 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:20146&r=ure |
| By: | Hiroshi Goto (Graduate School of Economics, Kobe University); Keiya Minamimura (Graduate School of Economics, Kobe University) |
| Abstract: | To explain the links between population distribution and economic integration, we construct a spatial economics model with endogenous fertility. A higher population concentration increases real wages and child-raising costs, thus lowering the fertility rate. However, people migrate to more populated regions to obtain higher real wages. We show that mobility across regions results in more people flowing into highly populated regions, but lowers fertility rates there. The population growth path resembles a logistic curve in the early phase, but population decreases in the last phase. Additionally, economic integration leads to population concentration and decreases population size in the whole economy. |
| Keywords: | Population Change, Migration, Agglomeration, Trade freeness |
| JEL: | F15 J13 R12 R23 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1405&r=ure |
| By: | Thomas Coisnon (Granem - Groupe de Recherche ANgevin en Economie et Management - Agrocampus Ouest - Institut national de la recherche agronomique (INRA) : UMR49); Walid Oueslati (Granem - Groupe de Recherche ANgevin en Economie et Management - Agrocampus Ouest - Institut national de la recherche agronomique (INRA) : UMR49); Julien Salanié (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure (ENS) - Lyon - PRES Université de Lyon - Université Jean Monnet - Saint-Etienne - Université Claude Bernard - Lyon I) |
| 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 |
| Date: | 2014–02–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00944683&r=ure |
| By: | Buechel, Berno; Mechtenberg, Lydia; Petersen, Julia |
| Abstract: | We conducted a multi-wave field experiment to study the interaction of peer effects and self-control among undergraduate students. We use a behavioral measure of self-control based on whether students achieve study related goals they have set for themselves. We find that both self-control and the number of talented friends increase students’ performance. We then set out to test the theoretical prediction of Battaglini, Bénabou and Tirole (2005) that (only) sufficiently self-controlled individuals profit from interactions with peers. We find that peers with high self-control are more likely to connect to others, have a higher overall number of friends and have a higher number of talented friends. Moreover, positive news about self-controlled behavior of their peers increases students’ own perseverance. Hence, our findings are consistent with the model of Battaglini, Bénabou and Tirole. In addition, we find that female students are more likely to have high self-control, but do not outperform male students. One reason for this is that female students have a lower number of talented friends than their male counterparts, thereby profiting less from positive peer effects. |
| Keywords: | Self-control; Peer Influence; Social Networks; Goals; Time preferences; Procrastination; Willpower; School Performance; Experiment |
| JEL: | C93 D85 I21 J24 |
| Date: | 2014–01–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53658&r=ure |
| By: | Katja Bringmann; Ann Verhetsel; Thomas Vanoutrive; Jo Reynaerts |
| Abstract: | The existing literature on cluster embeddedness largely neglects the impact of finance on the development of firm?s network linkages. This is striking in so far that particularly venture capital is often referred to as ?smart money? providing firms not only with funds but also with network contacts. Thus, in this paper, we intend to quantitatively assess the impact of venture capitalists on start-ups? embeddedness. Embeddedness generally occurs along three dimensions namely the societal, the network and the territorial one. Societal embeddedness refers to the cultural environment economic actions take place in. Network embeddedness representing the structure and nature of relations an organization is maintaining and territorial embeddedness implying the degree of spatial anchoring of a firm in a specific geographical area. It is assumed that for firms and regions there are several advantages arising from deep network and, respectively, territorial embeddedness: Among others, they include local knowledge spillovers which promote innovative thinking and, subsequently, strengthen firms? global competitiveness and thereby fueling regional economic growth. In addition, particularly territorial embeddedness is reckoned as shielding to some extent against firm relocation that is widely regarded as hampering regional development. Due to the riskiness of their business, insufficient hard assets, and an unforeseeable rate of return, innovative startups are generally unable to get capitalized by more conventional sources of money i.e. bank lending and therefore often return to venture capital. Besides providing incumbent innovative firms with funds, venture capitalists, reverting to their vast sectoral knowledge and personal contacts, are frequently facilitating the entry of startups into existing personal and industry networks. Generally, it is anticipated that those network contacts are densest in the immediate neighbourhood of the investor. Summing up, given its ?social? character, it is hypothesized that venture capital is an important driver of start-ups? embeddedness that is nevertheless spatially constraint. In order to answer to what extent venture capital impacts portfolio firms? territorial and network embeddedness and whether the geographical location of the venture capitalist has an effect on start-ups? local anchoring, we conduct an empirical analysis using data on venture capital flows. By reviewing cluster embeddedness from a financial geographic perspective, this analysis complements the literature that hitherto has largely neglected the role of venture capital in this respect. |
| Keywords: | Venture capital; Industrial Cluster; Embeddedness; Social Networks |
| JEL: | R12 G24 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa13p298&r=ure |
| By: | Herbst, Chris M. (Arizona State University); Lucio, Joanna (Arizona State University) |
| Abstract: | Previous research consistently finds that racially-based residential segregation is associated with poor economic, health, and social outcomes. The purpose of this paper is to explore the relationship between residential segregation and self-reported happiness. Using panel data from the National Survey of Families and Households (NSFH), we begin by estimating ordinary least squares (OLS) regressions of happiness on a measure of MSA-level segregation, controlling for a rich set of individual, neighborhood, and state characteristics. The OLS results suggest that increased segregation is associated with a reduction in happiness among blacks. To deal more appropriately with the potential endogeneity of location choice, we extend the methodology to fully exploit the panel structure of the NSFH and incorporate individual fixed effects into the happiness equation. Contrary to the OLS results, our fixed effects estimates imply that blacks are happier in more segregated metropolitan areas. The paper discusses the implications of these results within the context of current integration policies. |
| Keywords: | happiness, residential segregation, neighborhood preferences |
| JEL: | J10 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7944&r=ure |
| By: | A. Kerem Cosar (University of Chicago, Booth School of Business); Banu Demir (Bilkent University, Department of Economics) |
| Abstract: | Poor domestic transportation infrastructure in developing countries is often cited as an important impediment for accessing international markets. Yet, evidence on how transportation infrastructure improvements affect the volume and composition of exports is scarce. Drawing on the large-scale public investment in expressways undertaken in Turkey during the 2000s, this paper contributes to our understanding of how internal trade costs affect regional exports and specialization. Two results emerge. First, we estimate that this road infrastructure project accounts for 15 percent of the export increase from interior regions, generating a 10-year discounted stream of additional export revenues that amount to between 9 and 14 percent of the value of the investment. Second, while the exports of all industries within a given region increase in response to improvements in connectivity to the international gateways of the country, the magnitude of this increase is larger the more time sensitive an industry is. Accordingly, we also observe an increase in the regional employment and revenue shares of such industries. Our results support the hypothesis that internal trade costs can be a determinant of international specialization and comparative advantage. |
| Keywords: | international trade, infrastructure, transportation costs, time-sensitive industries. |
| JEL: | F14 R11 R41 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:koc:wpaper:1406&r=ure |
| By: | Eric Wong (Hong Kong Monetary Authority); Andrew Tsang (Hong Kong Monetary Authority); Steven Kong (Hong Kong Monetary Authority) |
| Abstract: | This paper sheds light on the transmission mechanism of loan-to-value (LTV) policy to financial stability by providing three findings from Hong Kong. First, there is evidence that LTV cap tightening since 2009 has dampened both borrowers' leverage and credit growth, and that lower leverage has played a major role in strengthening banks' resilience to property price shocks. Second, the effect on loan growth is found to be state-dependent due to loan market disequilibrium, with a much stronger impact on loan supply than on demand, suggesting that calibrating this tool to curb loan growth needs an accurate estimate of both loan demand and supply. Operationally, this could pose challenges for policymakers. Finally, we find evidence of low responsiveness of housing demand to caps on LTV ratios, which is suggestive of a weak direct pass-through of LTV policy to the property market. These findings together support the view that operationally it would be optimal for LTV policy to primarily target household leverage, and that there are limitations in using this instrument to stabilise credit growth and property prices. |
| Keywords: | Banking, Disequilibrium, Hong Kong, Loan-To-Value, Macroprudential Policy |
| JEL: | E58 G21 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:hkm:wpaper:032014&r=ure |
| By: | Mario Genco; Emanuela Sirtori; Silvia Vignetti |
| Abstract: | This paper illustrates the story of the Port of Gioia Tauro, a major infrastructure investment co-financed by the European Regional Development Fund in the period 1994-1998, but whose origin dates back to the beginning of the 1970s. It draws from a recent ex-post evaluation carried out for the European Commission aimed at assessing the long term effects produced by a sample of ten major infrastructures in the Transport and Environment sectors and interpreting the key determinants of the observed performance. The analysis shows an emblematic story of great business success and unexploited potential for local development: the overall assessment of the economic impact of the project is mixed, stressing the multi-faceted dimensions of development plans. Although a significant effect in terms of job creation, the expected long term development effects, in particular in terms of industrial development in the surrounding area, did not materialise despite much effort (and money) being spent to that end. Wider effects of efficiency on the Italian and Mediterranean port system are additional benefits of the project, but they did not materialise at the local level and did not affect the living conditions of the local population. A key determinant of the past, present and even future performance of the port is the governance structure of the port and the broader area of Gioia Tauro (including in particular two industrial zones located close to the port area), which has been always characterised by fragmented actions and lack of coordination and clear political will. The number of actors, poor strategic direction, vested interests at national, regional and local level and, finally, conflicts between local public authorities are responsible for the current state of play and are the main difficulty to be resolved going forward. In addition, the weakness of the overall transport (and more specifically port) strategy at national level has exacerbated the existing governance problems. The paper discusses to what extent factors such as governance, managerial response and social acceptability can be key determinants of long term effects of a large infrastructure project, more than forecasting capacity or project technical design. It also offers a pilot case testing an innovative evaluation exercise combining cost-benefit analysis with qualitative assessment and adopting a long-run perspective (30 years), which extends into both the past and the future, and requires a mix of retrospective and prospective analysis. |
| Keywords: | Cost-benefit analysis; Infrastructures; Cohesion Policy; Regional Development |
| JEL: | D61 H54 R58 O12 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa13p1003&r=ure |
| By: | Delia Furtado (University of Connecticut); Nikolaos Theodoropoulos (University of Cyprus) |
| Abstract: | This paper examines the role of ethnic networks in disability program take-up among workingage immigrants in the United States. We find that even when controlling for country of origin and area of residence fixed effects, immigrants residing amidst a large number of co-ethnics are more likely to receive disability payments when their ethnic groups have higher take-up rates. Although this pattern can be partially explained by cross-group differences in satisfying the work history or income and asset requirements of the disability programs, we also present evidence suggesting that social norms play an important role. |
| Keywords: | Social Security Disability Insurance, Supplementary Security Income, Networks, Social norms, Immigrants |
| JEL: | C31 H55 I18 J61 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:uct:uconnp:2014-03&r=ure |
| By: | Eliane El Badaoui; Eric Strobl; Frank Walsh |
| Abstract: | We estimate the impact of internal migration on local labour markets in Thailand. Using an instrumental variable approach based on weather and distance we estimate an exogenous measure of the net migration inflow into each region. Our results show that instrumenting for the possible endogeneity of net inward migration is crucial to the analysis. The results suggest that wages of low skill male workers are highly flexible with substantial adjustments in hours worked and weekly wages in response to short term changes in labour supply. We find no effect on high skilled workers. |
| Keywords: | Internal migration, Labour markets, Thailand |
| JEL: | O15 J10 |
| Date: | 2014–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-071&r=ure |
| By: | Fu, Shihe; Viard, Brian |
| Abstract: | Whether, and how much, increased commute costs decrease labor supply is important for transport policy, city growth, and business strategies. Yet empirical estimates are limited and biased downward due to endogenous choices of residences, workplaces, commute modes, and wages. We use the transition of undergraduate teaching from a Chinese university’s urban to suburban campus and ten years of complete course schedule data to test how teachers’ labor supply responds to a longer commute. Exogeneity is ensured because few faculty change residences, nearly all faculty ride a free shuttle bus, and we control for wage changes. Employing a regression discontinuity design, the 1.0 to 1.5-hour (40-kilometer) increase in round-trip commute time reduces annual undergraduate teaching by 56 hours or 23%. Consistent with higher per-day commute costs annual teaching days decrease by 27 while daily teaching hours increase by 0.49. Difference-in-difference estimates using faculty-specific changes in commute time corroborate these results ruling out aggregate confounders. Faculty substitute toward graduate teaching but decrease research output. The university accommodated the reduced teaching time primarily by increasing class sizes implying that education quality declined. |
| Keywords: | commuting; commute costs; labor supply; satellite campus |
| JEL: | I23 I25 J22 R23 R41 |
| Date: | 2014–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53740&r=ure |
| By: | Minas, Renate; Bäckman, Olof (Swedish Institute for Social Research, Stockholm University); Jakobsen, Vibeke; Korpi, Tomas (Swedish Institute for Social Research, Stockholm University); Lorentzen, Thomas; Kauppinen, Timo |
| Abstract: | - |
| Keywords: | - |
| Date: | 2014–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sofiwp:2014_001&r=ure |
| By: | KAWASHIMA, Toshiki; NAKABAYASHI, Masaki (Institute of Social Science, The University of Tokyo) |
| Abstract: | Japan experienced falling asset prices, a financial market reform, and non-performing loan reduction from the late 1990s. This paper examines whether it was efficient to guide the banking sector to aggressively write off non-performing loans in the early 2000s under the shadow of regulatory reform and structural transition of corporate financing. Our results indicate that non-performing loans could have been cyclically reduced only by further extension of mortgage loan, as the deregulated corporate sector cut reliance on the banking and increased bond issuance. If another bubble of housing market to be avoided, the structural disposal is justified. |
| Keywords: | Non-performing loan reduction; structural transition; regulatory reform;mortgage loan; Japan |
| JEL: | G18 G28 K23 |
| Date: | 2014–02–11 |
| URL: | http://d.repec.org/n?u=RePEc:itk:issdps:f167&r=ure |
| By: | Leung, Charles Ka Yui; Leung, Tommy Tin Cheuk; Tsang, Byron Kwok Ping |
| Abstract: | We study the implications of property market transaction tax. As property buyers are obligated to pay a transaction tax (“stamp duty”, or SD) where the rate increases with the value of the transaction, there are incentives to trade at or just below the cutoff points of the tax schedule. Thus, both “bunching in transactions” and “underpricing” should be observed near those cutoffs. Furthermore, the bunching points should change with the tax schedule. We confirm these conjectures with a rich dataset from the Hong Kong housing market and provide a measure of the tax avoidance. |
| Keywords: | bunching, change in nonlinear tax schedule, housing market, tax avoidance and tax evasion, underpricing |
| JEL: | H20 H26 R21 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53729&r=ure |
| By: | Remi Jedwab (Department of Economics/Institute for International Economic Policy, George Washington University); Douglas Gollin (University of Oxford); Dietrich Vollrath (University of Houston) |
| Abstract: | Many theories link urbanization with industrialization; in partic- ular, with the production of tradable (and typically manufactured) goods. We document that the expected relationship between urbanization and the levelofindustrializationisnotpresentinasampleofdevelopingeconomies. The breakdown occurs due to a large sub-sample of resource exporters that have urbanized without increasing output in either manufacturing or in- dustrial services such as ï¬nance. To account for these stylized facts, we construct a model of structural change that accommodates two different paths to high urbanization rates. The ï¬rst 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 pri- marily 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 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:gwi:wpaper:2014-01&r=ure |
| By: | Yasumasa Matsuda |
| Abstract: | This paper aims to provide a wavelet analysis for spatio-temporal data which are observed on irregularly spaced stations at discrete time points, where the spatial covariances show serious non-stationarity caused by local dependency. A specific example that is used for the demonstration is US precipitation data observed on about ten thousand stations in every month. By a reinterpretation of Whittle likelihood function for stationary time series, we propose a kind of Bayesian regression model for spatial data whose regressors are given by modified Haar wavelets and try a spatio-temporal extension by a state space approach. We also propose an empirical Bayes estimation for the parameters, which is regarded as a spatio-temporal extension of Whittle likelihood estimation originally defined for stationary time series. We conduct the extended Whittle estimate and compare mean square errors of the forecasts with those of some benchmarks to evaluate its goodness for the US precipitation data in August from 1987-1997. |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:toh:tergaa:311&r=ure |
| By: | Camilla Jensen; Marcin winiarczyk |
| Abstract: | In this paper we undertake an ex-post evaluation of whether the special economic zones (SEZs) introduced in Poland in 994 have been successful in meeting regional development objectives. We evaluate the policy on as many of its objectives as possible: employment creation, business creation (which includes attracting foreign direct investment), income or wage effects, and environmental sustainability. We use different panel data methods to investigate this question at the powiat (nuts4 or something similar to a commune) and gmina (nuts5 or something similar to a village) levels in Poland during the 995-20 period. It is also possible to include numerous controls to reduce the problem of the omitted variables bias such as education level, dependency rates, state ownership, general subsidies and whether the area is urban or rural. Our results indicate that SEZs in Poland have been successful in a number of their objectives such as private business creation. The positive effect of the policy however mainly comes through foreign direct investment (FDI), whereas the effects on e.g. investment and employment are small or insignificant. In other areas, such as securing higher income levels and locking firms into the sustainability agenda through the adoption of green technologies and reduced air pollution, we find only a small positively moderating effect of the policy on what are traditionally economically disadvantaged areas in Poland that used to be dependent on the socialist production model. Hence, despite high levels of FDI, the zones policy has not managed to overcome the legacy of backwardness or lagging regions. The main policy implication of the paper is that SEZs may be successful in stimulating activity in the short run but the policy must be seen as one of necessary temporality and can therefore not stand alone. Before launching SEZs, policymakers must have plans in place for follow up measures to ensure the longer term competitiveness and sustainability implications of such an initiative. There is a need to understand the connection between the specific incentive schemes used (in this particular case tax incentives were used) and the kinds of firms and activities they attract, including the behavioral models that those incentives promote. |
| Keywords: | Special Economic Zones, Panel Data, Policy Evaluation, Regional Development, Reindustrialization, Competitiveness |
| JEL: | F13 F23 C23 R11 P25 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:sec:cnstan:0467&r=ure |
| By: | Peter Daniels (UoB-SERU - Services and Enterprise Research Unit - University of Birmingham); Pengfei Ni (CASS-IFTE - Institute of Finance and Trade Economics - Chinese Academy of Social Sciences) |
| Abstract: | There are many dimensions to the evolving economic development model in China and the role for urbanization within it. One key component is a requirement to incorporate a wider range of service industries, especially in the nation's fast-growing cities where there is demand for knowledge and related advanced services that will support, for example, the necessary shift to more 'modern' manufacturing. This paper summarizes progress towards servicification and the rationale for undertaking more research that will deepen understanding of the actual and potential contribution of producer services. Some recent empirical evidence on the growth trends for producer service in selected cities, including the four case study cities of Shanghai, Huangshan, Chongqing and Kunming, is presented. It is shown that in majority of cities the manufacturing-services gap remains a significant. |
| Keywords: | urbanisation ; China ; service industry |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00943972&r=ure |
| By: | Hopfensitz, Astrid; Miquel-Florensa, Pepita |
| Abstract: | Due to its long-lasting internal armed conflict, Colombia has witnessed a rupture in social networks. The network composition was altered for municipalities with high in- or out-flows of displaced individuals, in addition to the individual impact on the displaced. We use a controlled laboratory experiment and questionnaires to measure the impact of displacement on public good contributions at the Colombian ‘Eje Cafetero’. Abstract public good contributions are related to actual community involvement and observed to be significantly higher in regions with a history of high pressure or intensity of displacement. Contributions are particularly high by vulnerable individuals in high out-flow areas (e.g. women). A local control institution can further increase contributions, independent of the individuals’ personal preference for such control. |
| Keywords: | Colombia, conflict, displacement, public good games |
| Date: | 2014–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:27881&r=ure |