|
on Urban and Real Estate Economics |
| By: | David Albouy; Bert Lue |
| Abstract: | In an equilibrium model of residential and workplace choice, we estimate local willingness-to-pay measures for 2071 areas covering the United States. These measures are based on how high residential housing and commuting costs are relative to workplace wages; they index quality of life when preferences are sufficiently homogeneous. Wage levels vary little within metropolitan areas relative to across them, while individual characteristics that predict wages vary more within, suggesting patterns about sorting. Quality of life varies as much within metros as across them, and is typically high in areas that are dense, suburban, mild, safe, entertaining, and have higher school-funding. |
| JEL: | H73 Q51 R21 R23 R41 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19922&r=ure |
| By: | Ioulia Ossokina; Gerard Verweij |
| Abstract: | This paper exploits a quasi-experiment to value the benefits of reducing urban traffic externalities. As a source of exogenous variation we use the opening of a new bypass in The Hague, the Netherlands, that reduced traffic on a number of local streets, leaving others unaffected. We calculate the effect of the change in traffic nuisance on housing prices and find that a reduction of 50% in traffic density induces a 1% increase in housing prices on average. Reductions in traffic nuisance are valued much more positively when the traffic density is already high. We do not find evidence of anticipation effects up to 3 years before the change. Furthermore, our results indicate that traffic nuisance effects are likely to be biased in cross-sectional studies. |
| JEL: | Q53 R2 R4 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:267&r=ure |
| By: | Jack Britton; Carol Propper |
| Abstract: | Teacher wages are commonly set in a manner that results in flat wages across heterogeneous labor markets. Consequently teacher wages will be relatively worse in areas where local labor market wages are high. The implication is that teacher output will be lower in high outside wage areas. This paper exploits the centralized wage regulation of teachers in England to examine the effect of wages on school performance. It uses data on over 3000 schools containing around 200,000 teachers who educate around half a million children per year. We find that teachers respond to pay and schools add less value to their pupils where the regulation bites harder. Our calculations suggest that the removal of regulation would have positive social benefits. |
| Keywords: | Teacher wages, Centralised Pay Regulation, School performance, School Value Added |
| JEL: | I2 J3 J4 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:bri:cmpowp:13/318&r=ure |
| By: | Jessica E. Schoner; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota) |
| Abstract: | Cities promote strong bicycle networks to support and encourage bicycle com- muting. However, the application of network science to bicycle facilities is not very well studied. Previous work has found relationships between the amount of bicycle infrastructure in a city and aggregate bicycle ridership, and between microscopic network structure and individual tripmaking patterns. This study fills the missing link between these two bodies of literature by developing a standard methodology for measuring bicycle facility network quality at the macroscopic level and testing its association with bicycle commuting. Bicycle infrastructure maps were collected for 74 United States cities and systematically analyzed to evaluate their network structure. Linear regression models revealed that connectivity and directness are important factors in predicting bicycle commuting after controlling for demographic variables and the size of the city. These findings provide a framework for transportation planners and policymakers to evaluate their local bicycle facility networks and set regional priorities that support nonmotorized travel behavior, and for continued research on the structure and quality of bicycle infrastructure and behavior. |
| Keywords: | Bicycling, Travel Behavior, Networks |
| JEL: | R40 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:nex:wpaper:missinglink&r=ure |
| By: | Goux, Dominique (CREST-INSEE); Gurgand, Marc (Paris School of Economics); Maurin, Eric (Paris School of Economics) |
| Abstract: | At the end of middle school, many low achieving students have to abandon hope of getting into selective high-school programs, which may be a source of disappointment and eventually lead them to dropout from high-school. Based on a randomized controlled trial, this paper shows that low-achieving students' aspirations can be made more realistic through a series of meetings facilitated by the school principals and that more realistic aspirations are followed by a significant reduction in grade repetition and high-school dropout. Building on detailed information on friendship networks within classes, we also find evidence that improved outcomes in treated classes encompass improved social interactions between low achieving students and their high achieving classmates. |
| Keywords: | school dropout, tack choices, school aspiration, social networks |
| JEL: | I21 I24 J18 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7948&r=ure |
| By: | Walid Oueslati (Granem - Groupe de Recherche ANgevin en Economie et Management - Agrocampus Ouest - Institut national de la recherche agronomique (INRA) : UMR49); Seraphim Alvanides (Geography and Built Environment - University of Northumbira); Guy Garrod (CRE - Centre for Rural Economy - University of Newcastle, Newcastle upon Tyne, UK) |
| Abstract: | This paper provides empirical evidence that helps to answer several key questions relating to the extent and causes of urban sprawl in Europe. Building on the monocentric city model, this study uses existing data sources to derive a set of panel data for 282 European cities at three time points (1990, 2000 and 2006). Two indices of urban sprawl are calculated and respectively reflect changes in artificial area and the levels of urban fragementation for each city. These are supplemented by a set of data on various economic and geographical variables that might explain the variation of these indices. Estimating using a Hausman Taylor and random regressors to control the possible correlation between explanatory variables and unobservable city-level effects, we find that the fundamental conclusions of the standard monocentric model are valid in the European context for both indices. Although the variables generated by the monocentric model explain a large part of variation of artificial area, their explanatory power for the fragmentation is relatively low. |
| Keywords: | Urban sprawl, European cities, spatial scale, monocentric city model, urban scattering. |
| Date: | 2014–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00943319&r=ure |
| By: | Christoph Basten; Cathérine Koch |
| Abstract: | We identify the causal effect of house prices on mortgage demand and supply in Switzerland by exploiting exogenous shocks to immigration and thereby to house prices. Detailed micro data allow us to observe multiple offers for each mortgage request. We find a 1% increase in house prices to raise the requested mortgage amount by 0.52%. Due to positive feedback effects, the entire partial correlation is 0.78%. While we find higher house prices to increase mortgage demand, they induce banks to make fewer offers and charge higher rates, especially later in the boom and especially for highly leveraged households. |
| Keywords: | House prices, mortgage demand, mortgage supply, instrumental variables |
| JEL: | D14 G21 J61 R21 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:zur:econwp:140&r=ure |
| By: | Guarino, Cassandra (Indiana University); Reckase, Mark D. (Michigan State University); Stacy, Brian (Michigan State University); Wooldridge, Jeffrey M. (Michigan State University) |
| Abstract: | School districts and state departments of education frequently must choose between a variety of methods to estimating teacher quality. This paper examines under what circumstances the decision between estimators of teacher quality is important. We examine estimates derived from growth percentile measures and estimates derived from commonly used value-added estimators. Using simulated data, we examine how well the estimators can rank teachers and avoid misclassification errors under a variety of assignment scenarios of teachers to students. We find that growth percentile measures perform worse than value-added measures that control for prior year student test scores and control for teacher fixed effects when assignment of students to teachers is nonrandom. In addition, using actual data from a large diverse anonymous state, we find evidence that growth percentile measures are less correlated with value-added measures with teacher fixed effects when there is evidence of nonrandom grouping of students in schools. This evidence suggests that the choice between estimators is most consequential under nonrandom assignment of teachers to students, and that value-added measures controlling for teacher fixed effects may be better suited to estimating teacher quality in this case. |
| Keywords: | teacher labor markets, teacher value-added, teacher quality |
| JEL: | I20 J08 J24 J45 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7973&r=ure |
| By: | Ron Zimmer; Brian Gill; Jonathon Attridge; Kaitlin Obenauf |
| Abstract: | This article uses data from Ohio, a state that allows a wide range of organizations to authorize charter schools, to examine the relationship between type of authorizer and charter-school effectiveness. |
| Keywords: | Charter School Authorizers, Student Achievement, Education |
| JEL: | I |
| Date: | 2014–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:8003&r=ure |
| By: | Kevin Booker; Brian Gill; Tim Sass; Ron Zimmer |
| Abstract: | This issue brief discusses a new analysis, using data from Florida and Chicago, suggesting that charter high schools are not only increasing postsecondary educational attainment but may also boost students' long-run earnings. |
| Keywords: | Charter High Schools, Educational Attainment, Earnings, Student Achievement, Education |
| JEL: | I |
| Date: | 2014–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:8004&r=ure |
| By: | Dhuey, Elizabeth (University of Toronto); Smith, Justin (Wilfrid Laurier University) |
| Abstract: | Many studies examine the importance of teachers in students' learning, but few exist on the contribution of principals. We measure the effect of principals on gains in primary test scores in North Carolina and estimate the standard deviation of principals' value added to be 0.12 -0.17. We find that the match between principals and schools accounts for a significant amount of principals' value added and also find that replacing the current principal has little effect on non-test score school inputs and outcomes regardless of the new principal's value added, but that brand new principals have a detrimental effect. |
| Keywords: | economics of education, principals, school leadership |
| JEL: | I21 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7949&r=ure |
| By: | Philip M. Gleason; Christina Clark Tuttle; Brian Gill; Ira Nichols-Barrer; Bing-ru Teh |
| Abstract: | This article measures the achievement impacts of 41 Knowledge Is Power Program (KIPP) charter middle schools nationwide and found consistently positive and statistically significant test-score effects in reading, math, science, and social studies. |
| Keywords: | KIPP, Student Achievement, Charter Schools, Education |
| JEL: | I |
| Date: | 2014–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:8002&r=ure |
| By: | Kevin Booker; Brian Gill; Tim Sass; Ron Zimmer |
| Abstract: | This working paper discusses a new analysis, using data from Florida and Chicago, suggesting that charter high schools are not only increasing postsecondary educational attainment but may also boost students' long-run earnings. |
| Keywords: | Charter High Schools, Educational Attainment, Earnings, Student Achievement, Education |
| JEL: | I |
| Date: | 2014–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:8005&r=ure |
| By: | David Albouy; Bryan Stuart |
| Abstract: | We use a neoclassical general-equilibrium model to explain cross-metro variation in population density based on three broad amenity types: quality of life, productivity in tradables, and productivity in non-tradables. Analytically, we demonstrate the dependence of quantities on amenities through substitution possibilities in consumption and production. Our model clarifies the nature of commonly estimated elasticities of local labor supply and demand. From only differences in wages and housing costs, we explain half of the observed variation in density, especially through quality of life. We show that density information can provide or refine measures of land value and local productivity. |
| JEL: | H20 R12 R23 R31 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19919&r=ure |
| By: | Jeffrey Max; Steven Glazerman |
| Keywords: | Disadvantaged Students, Effective Teaching, Student Achievement, Teacher Evaluation Systems |
| JEL: | I |
| Date: | 2014–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:8000&r=ure |
| By: | Bet, German (Northwestern University); Cristia, Julián P. (Inter-American Development Bank); Ibarrarán, Pablo (Inter-American Development Bank) |
| Abstract: | This paper analyzes the effects of increased shared computer access in secondary schools in Peru. Administrative data are used to identify, through propensity-score matching, two groups of schools with similar observable educational inputs but different intensity in computer access. Extensive primary data collected from the 202 matched schools are used to determine whether increased shared computer access at schools affects digital skills and academic achievement. Results suggest that small increases in shared computer access, one more computer per 40 students, can produce large increases in digital skills (0.3 standard deviations). No effects are found on test scores in Math and Language. |
| Keywords: | technology, education, digital skills, impact evaluation |
| JEL: | I21 I28 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7954&r=ure |
| By: | Hugh Macartney |
| Abstract: | This paper provides the first evidence that value-added education accountability schemes induce dynamic distortions. Extending earlier dynamic moral hazard models, I propose a new test for ratchet effects, showing that classroom inputs are distorted less when schools face a shorter horizon over which they can influence student performance. I then exploit grade span variation using rich educational data to credibly identify the extent of dynamic gaming, finding compelling evidence of ratchet effects based on a triple-differences approach. Further analysis indicates that these effects are driven primarily by effort distortions, with teacher reallocations playing a secondary role. |
| JEL: | D82 I21 J33 M52 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19915&r=ure |
| By: | Schäffler, Johannes (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Hecht, Veronika (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Moritz, Michael (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]) |
| Abstract: | The attractiveness for the location of multinational firms is seen as a crucial issue for the development and prosperity of regions. This article focuses on a two-country relationship and deals with the regional distribution of German multinational firms and their affiliates in the Czech Republic. A new dataset established by the IAB covers information on the basic population of cross-border foreign direct investment (FDI) projects, thereby exceeding the number of observations in previously used databases by far. On the basis of 3,894 FDI projects the regional determinants of German cross-border investments in the Czech Republic are analysed for both the home and the host country. Alternative specifications of the gravity model are used in order to investigate the regional distribution of common investment projects that are calculated as a combination of a headquarters in a German spatial planning region and an affiliate in a Czech NUTS 3 region. Concerning the explanatory variables a distinction is made between three groups of factors: first, market size and agglomeration features of the regions; second, attributes representing the distance between the headquarters in Germany and the affiliates in the Czech Republic; and third, regional labour market characteristics. While the findings are generally in line with theoretical expectations, differences emerge between manufacturing FDI and services FDI. |
| JEL: | F23 R12 F15 |
| Date: | 2014–02–24 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:201403&r=ure |
| By: | José da Silva Costa (School of Economics and Management, University of Porto.); Ruben Fernandes (CITTA - School of Engineering, University of Porto); Ana Natálio (CEAUP, University of Porto) |
| Abstract: | Sorting and heterogeneity of households at metropolitan level has been a subject of many empirical studies. Interest in the subject goes beyond the knowledge of household mobility because it also has importance for the debate on the Tiebout’s hypothesis that households “vote with the feet” by choosing the best bundle of local public goods and local taxes. A result of households “voting with the feet” is a more heterogeneous public provision of local public goods by municipalities and, at the same time, a smaller distance between household preferences and public provision of local public goods. Household movements are determined not only by the bundle of public goods-local taxes in each jurisdiction but also by restrictions to mobility such as real estate market and availability of jobs. Several authors argue that aggregate empirical studies are not sufficient to test empirically the Tiebout’s hypothesis because sorting and heterogeneity may be a consequence of those restrictions. So they defend instead the implementation of micro studies where we observe the motivations of household movements. In our study we analyze sorting and heterogeneity using an aggregated approach, but we provide empirical evidence for two different periods: a first period in which there is no role for local politics in the sorting and heterogeneity process; a second period where there is an increasing role of local politics on the decision of households to locate. The empirical evidence on sorting and heterogeneity in those two periods gives us a hint about the importance of local politics on household decisions to locate in a metropolitan area, and therefore provides empirical evidence on the importance of the Tiebout’s hypothesis compared with other determinants of household mobility. The empirical study is conducted for the Metropolitan Area of Porto for a long period in order to include non-elected local governments and elected local governments. The empirical evidence we gather covers a wide period that goes from 1920 till 2011 using census data. |
| Keywords: | Household mobility; Sorting; Tiebout´s hypothesis; Local Governments; Portugal. |
| JEL: | J11 H41 H73 R23 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:525&r=ure |
| By: | Erlend Berg; Maitreesh Ghatak; R Manjula; D Rajasekhar; Sanchari Roy |
| Abstract: | This paper studies the interaction of incentive pay and social distance in the dissemination of information. We analyse theoretically as well as empirically the effect of incentive pay when agents have pro-social objectives, but also preferences over dealing with one social group relative to another. In a randomised field experiment undertaken across 151 villages in South India, local agents were hired to spread information about a public health insurance programme. Relative to at pay, incentive pay improves knowledge transmission to households that are socially distant from the agent, but not to households similar to the agent. |
| Keywords: | public services, information constraints, incentive pay, social proximity, knowledge transmission |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:bri:cmpowp:13/316&r=ure |
| By: | Rohlf, Alexander; Römer, Daniel; von Graevenitz, Kathrine |
| Abstract: | In this paper, we study the effect of the release of emission information on housing prices. The main event under study is the release of the first wave of data from the European Pollutant Release and Transfer Register (E-PRTR) publishing emission quantities for the reporting year 2007. We base our analysis on quarterly house prices at the German postal code level for the years 2004-2011 and provide, to the best of our knowledge, the first analysis outside the US on this research question. We estimate a differences-in-differences model and find no significant effect of the release of emission information on the value of houses in affected postal code areas when controlling for observable differences in land use, prevalence of housing types, tax revenues and other postal code area characteristics by means of propensity score matching. This result survives several robustness checks. We conclude that disclosing the first wave of E-PRTR emissions had no robust impact on housing prices. |
| Date: | 2014–02–19 |
| URL: | http://d.repec.org/n?u=RePEc:awi:wpaper:0554&r=ure |
| By: | Colin Davis (The Institute for Liberal Arts, Doshisha University); Ken-ichi Hashimoto (Graduate School of Economics, Kobe University) |
| Abstract: | This paper develops a two region model of trade to study the relationship between geographic patterns of industry and economic growth without scale effects. With transport costs, imperfect knowledge diffusion, and perfect capital mobility, firms locate production, process innovation, and product development independently in their lowest cost regions, leading to the partial concentration of production and the full agglomeration of innovation in the region with the largest market. A rise in industry concentration increases knowledge spillovers from production to innovation, resulting in a fall or a rise in the level of market entry depending on whether productivity increases more for process innovation or for product development. As a result, the rate of economic growth may rise or fall, depending on the effects of industry concentration on market entry. |
| Keywords: | Industry Concentration, Industry Share, Knowledge Diffusion, Productivity Growth, Scale Effect |
| JEL: | F43 O30 O40 R12 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1408&r=ure |
| By: | Shaikh, Salman |
| Abstract: | Markets fail in the provision of public goods. Public goods are non-rival and non-exclusive. It creates the problem of free riding. Hence, public goods and infrastructure is often provided by the governments. As discussed in endogenous growth models, the public infrastructure and capital goods can enable the private sector’s production processes to experience increasing returns to scale. This can result in permanent source of economic growth in an economy. Given that public infrastructure is important for economic growth, the issue is how the government of Pakistan can mobilize enough resources to improve the public infrastructure and expand it. We argue that by way of tax increment financing, it can achieve sufficient funds through which the public infrastructure can be provided in urban centers. The rationale for tax increment financing rests on the fact that public infrastructure development leads to positive externalities. If Government owns the unused land which can potentially be used for commercial and residential use, it can lease it on long term basis and generate sufficient lease income. By issuing public securities, it can generate the seed capital and which can be serviced via these lease payments. The seed capital can also come from tax increment financing. This new proposal can help in reducing i) urban congestion, ii) urban crimes, iii) reduce prices of real estate, iv) widen the urban centers, v) generate employment in new urban centers, vi) facilitate closer migration to wide choice of urban centers, vii) create new growth nodes and production zones and viii) reduce ethnical conflicts that arise from ethnical diversity in congested urban centers. |
| Keywords: | Public Goods, Tax Increment Financing, Property Tax, Public Infrastructure |
| JEL: | Q42 Q43 Q48 |
| Date: | 2014–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53801&r=ure |
| By: | Steven Craig (University of Houston); Janet Kohlhase (University of Houston); Adam Perdue (University of Houston) |
| Abstract: | This paper empirically finds that employment subcenters have the expected connections with the central business district, but additionally have important relationships with each other. Using data from Houston, Texas, USA, we use a new proximity measure to estimate a polycentric density function, and show that the estimated gradient using the total derivative, allowing for the relationship between all subcenters, is much different than the gradient using only the own center coefficients. Further, we model asymmetry in the density function by limiting the employment center influence using commuting data, and testing the influence of over-lapping areas for both population and employment. We find significant asymmetry both within, and even outside of the commuting areas. We conclude that subcenters have important linkages to each other in addition to the CBD, and that therefore the polycentric city is more complex than additional centers mimicking the CBD. |
| Keywords: | Polycentric City; Employment Subcenters, population density; employment density |
| JEL: | R11 R14 R30 |
| Date: | 2014–02–24 |
| URL: | http://d.repec.org/n?u=RePEc:hou:wpaper:2014-055-59&r=ure |
| By: | Comola, Margherita (Paris School of Economics); Mendola, Mariapia (University of Milan Bicocca) |
| Abstract: | This paper provides the first direct evidence on the determinants of link formation among immigrants in the host society. We use a purposely-designed survey on a representative sample of Sri Lankan immigrants living in Milan to study how migrants form social links among them and the extent to which this network provides them with material support along three different dimensions: accommodation, credit, job-finding. Our results show that both weak and strong ties are more likely to exist between immigrants who are born in close-by localities at origin. The time of arrival has a U-shaped effect: links are more frequent between immigrants arrived at the same time, and between long-established immigrants and newcomers. Once the link is formed, material support is provided mainly to relatives while early migrant fellows are helpful for job finding. |
| Keywords: | Sri Lanka, networks, migration, Milan |
| JEL: | J15 D85 C45 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7981&r=ure |
| By: | Lanot, Gauthier (Department of Economics, Umeå School of Business and Economics,); Leece, David (Keele Management School) |
| Abstract: | The research estimates a competing risk model of mortgage terminations on samples of UK securitised subprime mortgages. Given the argued role of these types of loan in the recent financial crisis then it is important to better understand their performance and supposed idiosyncratic behaviour. The methodological and empirical advance is the use of a general, flexible modelling of unobserved heterogeneity over several dimensions, controlling for both selection issues involving initial mortgage choices and dynamic selection over time. Moreover, we estimate specific coefficients for this unobserved heterogeneity and determine the correlation between the unobserved components of default and prepayment. The paper demonstrates the need for researchers and practitioners to jointly estimate household choices whiles controlling for selectivity through unobserved heterogeneity. |
| Keywords: | Subprime mortgages; unobserved heterogeneity; household behaviour; loan performance |
| JEL: | C13 C25 C51 D10 D14 E44 G21 |
| Date: | 2014–02–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0876&r=ure |
| By: | Wolfgang Karl Härdle; Helmut Thome; ; |
| Abstract: | Principal component analysis denotes a popular algorithmic technique to dimension reduction and factor extraction. Spatial variants have been proposed to account for the particularities of spatial data, namely spatial heterogeneity and spatial autocorrelation, and we present a novel approach which transfers principal component analysis into the spatio-temporal realm. Our approach, named stPCA, allows for dimension reduction in the attribute space while striving to preserve much of the data's variance and maintaining the data's original structure in the spatio-temporal domain. Additionally to spatial autocorrelation stPCA exploits any serial correlation present in the data and consequently takes advantage of all particular features of spatial-temporal data. A simulation study underlines the superior performance of stPCA if compared to the original PCA or its spatial variants and an application on indicators of economic deprivation and urbanism demonstrates its suitability for practical use. |
| Keywords: | PCA, spatio-temporal analysis, dimension reduction, factor extraction, economic deprivation, urbanism |
| JEL: | C31 C33 R11 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:hum:wpaper:sfb649dp2014-016&r=ure |
| By: | Shaikh, Salman |
| Abstract: | In this paper, we present an alternate proposal for house finance. In our proposal, the Islamic bank buys the house paying the house owner the full amount of the house and becomes the owner. Then, the bank gives the house on rent to the client and the Islamic bank also enters into an options contract as the call option writer. If the call buyer does not exercise the option, the options contract expires and the Islamic bank is in a position to give the house on rent again. We present numerical examples of computing rents in two separate structures. In structure I, call option is used with the lease contract. In structure II, house is resold at market price with stated price floor. We show that the proposal is robust in different scenarios. Furthermore, it is substantially and meaningfully different from conventional finance in form and substance. |
| Keywords: | Mortgages, House Finance, Personal Finance, Islamic Banking, Options, Diminishing Musharakah, Lease |
| JEL: | G21 G28 |
| Date: | 2014–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53804&r=ure |
| By: | Sumit Agarwal; Gene Amromin; Itzhak Ben-David; Souphala Chomsisengphet; Douglas Evanoff |
| Abstract: | We explore the effects of mandatory third-party review of mortgage contracts on consumer choice—including the terms and demand for mortgage credit. Our study is based on a legislative pilot carried out by the State of Illinois in a selected set of zip codes in 2006. Mortgage applicants with low FICO scores were required to attend loan reviews by financial counselors. Applicants with high FICO scores had to attend counseling only if they chose “risky mortgages.” We find that low-FICO applicants for whom counselor review was mandatory did not materially change their contract choice. Conversely, applicants who could avoid counseling by choosing less risky mortgages did so. Ironically, the ultimate goals of the legislation (e.g., better loan terms for borrowers) were only achieved among the population that was not counseled. We also find significant adjustments in lender behavior as a result of the counseling program. |
| JEL: | D14 D18 L85 R21 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19920&r=ure |
| By: | Mohamed Mouloud Haddak (IFSTTAR/UMRESTTE - Unité Mixte de Recherche Epidémiologique et de Surveillance Transport Travail Environnement - Université Claude Bernard - Lyon I - IFSTTAR); Nathalie Havet (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); Marie Lefèvre (IFSTTAR/UMRESTTE - Unité Mixte de Recherche Epidémiologique et de Surveillance Transport Travail Environnement - Université Claude Bernard - Lyon I - IFSTTAR) |
| Abstract: | Few studies have explored, to date, the issue of the monetary valuation of non-fatal injuries caused by road traffic accidents. The present paper arises interest in this question and aims to estimate, by means of the contingent valuation, the willingness to pay (WTP) of French households to improve their road safety level and reduce their risk of non-fatal injuries following a road accident. More precisely, Logit and Tobit models will be estimated to identify the factors influencing the individual will to pay. The results highlight the significant and positive influence of the injury severity on the WTP of the participants. The direct or indirect experience of road traffic accidents seems to play an important role and positively influences the valuation of the non-fatal injuries. |
| Keywords: | Road safety; Willingness to pay; Contingent valuation; Value of risk reduction; serious injuries |
| Date: | 2014–02–20 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00950017&r=ure |
| By: | Frederic Blaeschke (University of Kassel) |
| Abstract: | This contribution studies the determinants of intermunicipal cooperation for small Hessian municipalities. Existing contributions have highlighted the role of cooperation demand factors, for example scal stress or demographic factors, on the one hand, and transaction cost issues on the other. This study asks how the spatial neighbourhood aects cooperation decision making taking characteristics of neighbouring municipalities into account (cooperation supply). The study focuses on intermunicipal cooperations in the eld of labor intensive public administration services, for example, management and accounting tasks, personnel administration or civil registry oces. We nd that the main driving forces are scal stress, population growth and size heterogeneity. Neighbourhood-related supply factors areonly weakly signicant. Cooperation is more likely for municipalities that are part of a set of neighbouring municipalities which are heterogeneous with respect to size. |
| Keywords: | Intermunicipal cooperation, neighbourhood structures, cooperation demand, cooperation supply, heterogeneity |
| JEL: | H11 H77 H83 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201414&r=ure |
| By: | Irena Guidikova |
| Abstract: | Research has convincingly demonstrated that diversity of cultural backgrounds and associated differences in skills, education and abilities can be a rich resource for companies and creative teams but also for the social and economic development of societies. The challenge is to conceive and implement public policies and institutions that make it possible to realise the positive potential of diversity. The Intercultural integration policy paradigm which takes up this challenge has been developed and tested by the Council of Europe in a range of cities across the continent. The article introduces this paradigm as well as a series of examples of how it translates into different policy areas. |
| Keywords: | diversity/homogeneity |
| Date: | 2014–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:erp:euirsc:p0372&r=ure |
| By: | Matthew E. Kahn; Nils Kok |
| Abstract: | The commercial real estate sector is responsible for a large share of a city’s overall carbon footprint. An ongoing trend in this sector has been the entry of big-box stores such as Wal-Mart. Using a unique monthly panel data set for every Wal-Mart store in California from 2006 through 2011, we document three main findings about the environmental performance of big-box retailers. First, Wal-Mart’s stores exhibit very little store-to-store variation in electricity consumption relative to a control group of similar size and vintage retail stores. Second, Wal-Mart’s store’s electricity consumption is lower in higher priced utilities and is independent of the store’s ownership versus leased status. Third, unlike other commercial businesses, Wal-Mart’s newer buildings consume less electricity. Together, these results highlight the key roles that corporate size and centralization of management play in determining a key indicator of a firm’s overall environmental performance. |
| JEL: | Q41 Q54 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19912&r=ure |