|
on Urban and Real Estate Economics |
| By: | Berck, Peter (Department of Agricultural and Resource Economics and Policy); Tano, Sofia (Department of Economics, Umeå School of Business and Economics); Westerlund, Olle (Department of Economics, Umeå School of Business and Economics) |
| Abstract: | Migration rates are highest among young adults, especially students, and their location choices affect the regional distribution of human capital, growth and local public sector budgets. Using Swedish register data on young adults, the choice of whether to enroll in education and the choice of location are estimated jointly. The results indicate a systematic selection into investment in further education based on school grades and associated preferences for locations with higher per capita tax bases. For students, the estimates indicate lower preferences for locations with higher shares of older people. The importance of family networks for the choice of location is confirmed. |
| Keywords: | Agglomeration; human capital; local public sector; location choice |
| JEL: | J24 J61 R23 |
| Date: | 2014–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0878&r=ure |
| By: | Huang, Haifang (University of Alberta, Department of Economics); Humphreys, Brad (West Virginia University); Zhou, Li (University of Alberta, Department of Economics) |
| Abstract: | Access to legal gambling has expanded in Canada. Casinos can generate both positive and negative local impacts. We analyze the effect of new urban Canadian casinos on nearby neighborhoods in terms of population growth and composition, and housing market outcomes based on more than 40 urban casinos opened in Canada between 1986 and 2007. We define neighborhoods based on spatial proximity, and analyze impacts on changes in census tract profiles. We find no evidence that casino openings affect population growth or population composition by age, gender and martial status, or home ownership rates, and evidence that casino openings reduced unemployment in surrounding areas, and are correlated with faster growth in household income. We also find evidence of negative effects on changes in housing values and rents despite the faster income growth. The findings suggest a double-edged nature to casino openings: positive for employment and income growth but negative for residential amenities. |
| Keywords: | casino; economic impact; amenities; employment |
| JEL: | L83 R23 R31 |
| Date: | 2014–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2014_002&r=ure |
| By: | Fabrizio Antonioli (Dipartimento di Economia Istituzioni Territorio, Facoltà di Economia, Università degli Studi di Ferrara.); Simone Borghesi (Università degli Studi di Siena, Facoltà di Scienze Politiche.); Massimiliano Mazzanti (Departiment of Economics, Università di Ferrara (italy).) |
| Abstract: | The adoption and diffusion of environmental innovations (EIs) is crucial to greening the economy and achieving win-win environmental – economic gains. A large and increasing literature has focused on the levers underlying EIs that are external to the firm, such as stakeholder’s pressure and policy pressure. Little attention, however, has been devoted so far to the possible role of local spatial spillovers. The latter can be very relevant since growth depends on strong idiosyncratic regional factors – such asagglomeration economies - that must be integrated with the challenges posed by global markets. To overcome this drawback of the existing literature, we analyse here a rich dataset that covers the innovative activities and economic performances of firms in the Emilia-Romagna Region in Italy, a manufacturing district-rich area. We analyse firms’ performances through a two-step procedure. First, we look at the relevance of spatial levers, namely whether the agglomeration of EIs induces EIs in a given firm. Second, we test whether EIs have significantly increased firms’ economic performances. As to the importance of spatial levers, the role of agglomeration turns out to be fairly local in nature:we find that spillovers are significantly inducing innovation within municipal boundaries, which is coherent with the district-based Marshallian economies of north- eastern Italy. Regarding economic performances, firms' productivity is positively related to EI adoption; in particular,firms that adopt EIs and organizational change show a better economic performance.Our findings suggest that EIscanbe a key source of growth for regional systems, particularly when spurred by local spillovers, and an important way outof the ongoing crisis. |
| Keywords: | environmental innovations, firm economic performances, local spillovers, manufacturing, agglomeration |
| JEL: | O38 Q55 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0414&r=ure |
| By: | Reid Ewing; Harry W. Richardson; Keith Bartholomew; Arthur C. Nelson; Chang-Hee Christine Bae |
| Abstract: | This paper examines the relative merits of compact cities or urban sprawl (suburban settlement patterns) as a spatial solution to environmental problems (such as climate control), automobile dependence, economic development, infrastructure costs and the quality of urban life. |
| Keywords: | compact cities, sprawl, vehicle miles traveled, carbon emissions, infrastructure costs, residential preferences, commuting times |
| JEL: | R14 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_4571&r=ure |
| By: | Jon Marius Vaag Iversen; Hans Bonesrønning |
| Abstract: | While the current empirical literature on peer group effects in schools highlights that credible causal peer effects cannot be estimated unless parental sorting is taken into account, the present paper highlights that causal peer effects might be conditional on the learning environment in which they occur. This approach is motivated by the existing theoretical literature which indicates that peer effects cannot be estimated without taking into account the role of school decision makers. We present indicative empirical evidence that gender peer effects in the Norwegian elementary school are conditional upon the level of special education provided. |
| Keywords: | peer effects, conditional causal effects, special education |
| JEL: | I20 I28 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_4565&r=ure |
| By: | Luisa Alamá-Sabater (Department of Economics and IIDL, Universitat Jaume I, Castellón, Spain); Maite Alguacil (Department of Economics and IEI, Universitat Jaume I, Castellón, Spain); Joan Serafí Bernat-Martí (Department of Economics, Universitat Jaume I, Castellón, Spain) |
| Abstract: | Traditionally, Spain has been a destination for people coming from rich European countries. However, at the end of the last century, the pattern of these immigrant flows changed. The Spanish economic growth model, based on the construction industry, attracted large numbers of immigrants motivated by employment opportunities rather than by the climate conditions. In this article, we analyze the determinants that lead immigrants to move to a particular Spanish province, considering the economic and geographical differences across alternative destinations. We study this question empirically through the estimation of account models for panel data, covering the period 1998-2011. Our findings confirm the initial hypothesis that agglomeration and congestion economic forces play an important role in explaining the location decision of immigrant flows in Spanish provinces. They also reveal the importance of other regional factors, such as the productive structure of the territory, the labor market situation and the urban nature of the region. This result holds even after controlling for the specific, fixed or random, province factors. |
| Keywords: | migration flows, networks effects; migration flows, networks effects, account models |
| JEL: | R23 F22 C25 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:jau:wpaper:2014/07&r=ure |
| By: | Tano, Sofia (Department of Economics, Umeå School of Business and Economics) |
| Abstract: | The spatial distribution of human capital plays a fundamental role for regional differences in economic growth and welfare. This paper examines how individual ability indicated by the grade point average (GPA), from comprehensive school, affects the probability of migration among young university graduates in Sweden. Using detailed micro data available from the Swedish population registers, the study examines two cohorts of individuals who enrol in tertiary education. The results indicate that individual abilities reflected by the GPA are strongly influential when it comes to completing a university degree and for the migration decision after graduation. Moreover, there is a positive relationship between the GPA and the choice of migrating from regions with a relatively low tax base and a relatively small share of highly educated people in the population. Analogously, individuals with a high GPA tend to stay at a higher rate in more flourishing regions. |
| Keywords: | Bivariate probit; individual ability; migration; regional clustering; university graduates |
| JEL: | I23 J24 R23 |
| Date: | 2014–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0879&r=ure |
| By: | Tano, Sofia (Department of Economics, Umeå School of Business and Economics) |
| Abstract: | The present paper estimates the relationship between migration across labour-market regions and the subsequent changes in earnings in Sweden by using the individual’s grade point average (GPA) from the final year of comprehensive school as a proxy for ability. This measure aims to capture heterogeneity in the effects of mobility on earnings for individuals conditional on educational attainment and other observed traits. Register data from Sweden, including two whole cohorts of individuals, is used. A difference-in-difference propensity score matching estimator is applied to estimate the relationship between income and migration up to seven years after migrating. The results show variation between different ability groups with respect to the return to regional migration. There are indications of larger gains for individuals holding top grades, while the bottom half seems to benefit less, or have slightly negative returns. The difference in return to migration across GPA quartiles is larger for women than for men. |
| Keywords: | Human capital; income; internal migration; propensity score matching |
| JEL: | J24 J31 J61 R23 |
| Date: | 2014–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0880&r=ure |
| By: | Stepan Jurajda; Daniel Munich |
| Abstract: | If school admission committees use alphabetically sorted lists of applicants in their evaluations, one's position in the alphabet according to last name initial may be important in determining access to selective schools. In Jurajda and Münich (2010) we provided evidence consistent with this hypothesis based on graduation exams taken in grade 13 in the Czech Republic: 'Z' students in selective schools had higher exam scores than 'A'.students. In this paper, we use the TIMSS&PIRLS test scores of 4th graders and the PISA test scores of 8th and 9th graders in the Czech Republic to provide evidence on how the alphabetical sorting outcome we uncovered earlier arises during early tracking into selective schools. Using the PISA data, we also provide similar evidence for Denmark. |
| Keywords: | admissions; alphabetical order; order effects; early tracking; |
| JEL: | H49 J78 I29 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp509&r=ure |
| By: | Marco Paccagnella (Bank of Italy); Paolo Sestito (Bank of Italy) |
| Abstract: | In this paper we propose and validate cheating in standardized tests as a new indirect measure of social capital. Given the low-stakes nature of most of the tests examined here, we interpret the widespread presence of cheating as a signal of limited trustin central education authorities. Cheating is negatively correlated with several social capital proxies in the local environment where a school is located (the municipality or the province), even controlling for area-wide differences in social capital and for a number of features of the local environment. When distinguishing between different kinds of social capital – contrasting universalistic and particularistic social values (along the lines of de Blasio, Scalise and Sestito, forthcoming) – cheating appears to be negatively correlated only with measures of universalistic social values (while the correlation of cheating with particularistic social values, if any, is positive). We also document a number of empirical regularities in cheating behavior: (i) within classes student homogeneity is associated with higher cheating (Lucifora and Tonello, 2012); (ii) the presence of external inspectors greatly reduces cheating (Bertoni, Brunello and Rocco, 2013), and to a greater extent in low social capital environments; (iii) in primary schools, cheating is more pervasive in smaller classes; (iv) and a larger share of “local” teachers, or of teachers with a permanent contract, is generally associated with higher levels of cheating. |
| Keywords: | cheating, social capital |
| JEL: | I28 D73 Z10 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_952_14&r=ure |
| By: | Gundi Knies; Alita Nandi; Lucinda Platt |
| 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 wellbeing; UKHLS |
| JEL: | I31 J15 O15 R23 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:55669&r=ure |
| By: | Mariana Pereira-López (Postdoctoral Fellow Universidad Iberoamericana) |
| Abstract: | This paper analyzes the effects of localized labor demand shocks in the tradable sector, such as the establishment of a large tradable firm in a municipality, over nontradable formal and informal jobs in the case of Mexico. Results indicate that locations that experienced this shock have between 8 and 13 thousand more jobs than other municipalities over a ten--year period. Indirect job creation is similar in both the formal and the informal sectors, but informality appears to be more vulnerable to negative shocks. Furthermore, the effects of shocks are symmetric in the formal sector but not in the informal, where negative shocks have greater effects over nontradable employment. |
| JEL: | J23 R11 R12 R23 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:dls:wpaper:0153&r=ure |
| By: | Krüger, Niclas A. (VTI); Vierth, Inge (VTI) |
| Abstract: | There is limited knowledge about the valuation of reduced transport time variability for freight transports. This paper analyses a Swedish grocery company’s transports by shuttle train, as a case study. The distribution of the train arrival time is analyzed; it is shown that the 10 per cent worst delays contribute to more than half of the total train delays. Type and amount of the firm’s precautionary and operative costs are identified and calculated. It is shown that it is possible to get estimates for the cargo component of the VTTV (Value of Transport Time Variability) valid for the specific company based on the precautionary costs, the operative costs for delays and for the costs for cancellations separately or in combination. Further case studies are advocated in order to cover the whole freight transport market and study the differences between different segments of the market. |
| Keywords: | Value of Transport Time Variability (VTTV); Rail freight transports; Freight train delays; Monetary valuation; Precautionary costs; Operative costs; Cost-benefit analysis; Case study |
| JEL: | R41 R42 R48 |
| Date: | 2014–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2014_003&r=ure |
| By: | Hou, Feng |
| Abstract: | An emerging area of subjective well-being (SWB) research is centered on the differences in the levels of SWB both across countries and among geographic regions within a country. The consideration of geographic differences would extend our knowledge about the determinants of SWB from "internal" factors of personality traits and individuals' socio-demographic characteristics to "external factors" embedded in individuals' environments. An issue with important theoretical and policy implications is whether the income of others in the same geographic area is associated with individuals' SWB. The association could be positive if people benefit from the improved resources, amenities, and social capital in high-income areas. The association could also be negative if people tend to emulate the lifestyles of their more affluent neighbours. Related empirical studies so far have not come to a consensus on this question. The present study attempts to contribute to this issue in two significant ways. First, this study examines whether the effect of the average income in a geographic area (locality income) on SWB is sensitive to the scale of geographic units. With a very large sample of survey respondents nested within three hierarchical levels of geographic areas, this study provides reliable estimates of the association of SWB with average incomes in immediate neighbourhoods (defined as "census dissemination areas"), local communities ("census tracts"), and municipalities ("census subdivisions"). Second, this study examines how the choice of control variables influences the estimated effect of locality income. By considering the effects of individual demographic and socioeconomic characteristics, self-evaluated general health, and area-level attributes in a sequential manner, it is possible to discuss the likely mechanisms through which locality income is related to individuals' SWB. |
| Keywords: | Health, Income, pensions, spending and wealth, Mental health and well-being, Household, family and personal income |
| Date: | 2014–02–20 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp3e:2014357e&r=ure |
| By: | Neil Lee; Paul Sissons; Ceri Hughes; Anne Green; Gaby Atfield; Duncan Adam; Andrés Rodríguez-Pose |
| Abstract: | Cities are drivers of economic growth, but how does growth affect poverty? This report explores the connection between growth and poverty in UK cities, and examines how strategies for economic growth and poverty reduction can be aligned. The report finds that: - There is no guarantee that economic growth will reduce poverty – in some economically expanding cities poverty has stayed the same or increased; - Employment growth has the greatest impact on poverty, but if jobs are low-paid or go to workers living outside the area, the impact is minimal; - Increased output risks worsening poverty because it can lead to increases in the cost of living; - Some cities are tackling this by promoting employment in expanding sectors or providing training for disadvantaged groups so they can access opportunities associated with major infrastructure projects. |
| JEL: | N0 R14 J01 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:55799&r=ure |
| By: | Ilhom Abdulloev; Gil S. Epstein (Bar-Ilan University); Ira N. Gang (Rutgers University) |
| Abstract: | Some immigrants try to keep their ethnicity hidden while others become ever deeply more mired in their home culture. We argue that among immigrants this struggle manifests itself in the ethnic goods they choose to consume. Different types of ethnic goods have vastly different effects on immigrant assimilation. We develop a simple theoretical model useful for capturing the consequences of this struggle, illustrating it with examples of Central Asian assimilation into the Muscovite economy. |
| Keywords: | assimilation, migrants, culture, ethnic goods |
| JEL: | J15 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1409&r=ure |
| By: | Françoise Lemoine; Grégoire Mayo; Sandra Poncet; Deniz Ünal |
| Abstract: | Since the mid-2000s, the center of gravity of China's economic growth has shifted from the coastline to the inland and the gap in GDP per capita between the two areas has narrowed. This macroeconomic catch-up reflects, with a time lag, the convergence process which has been at work in manufacturing industry since the end of the 1990s and suggests that China is becoming increasingly integrated in terms of technological level. This pattern is in line with a process whereby the inland catches up the labor productivity level of the coast thanks to the transfer of technology and capital from these most advanced regions. |
| Keywords: | China;Regional inequality;Manufacturing industry;Convergence;Growth |
| JEL: | O14 O25 O53 R12 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2014-04&r=ure |
| By: | Bet Caeyers |
| Abstract: | A pre-condition for grassroots participation, key for community-based development success, is widespread programme knowledge among the eligible population. The current literature on local participatory institutions mainly focuses on village meetings and media campaigns as a means to strengthen community awareness. The role played by social interactions in this process has received little attention to date. In this paper I use Manski’s (1993) standard linear-in-means model to estimate endogenous peer effects on the awareness of vulnerable groups on Tanzania Social Action Fund II (TASAF II), i.e. Tanzania’s flagship community-driven development programme. I employ a popular 2SLS estimation strategy developed by Bramouille et al. (2009) and De Giorgi et al. (2010) on a unique spatial household dataset from Tanzania to eliminate both the ‘reflection bias’ (Manski, 1993) and the ‘exclusion bias’ (Caeyers, 2014). Denoting the geographically nearest neighbours set as the relevant peer group in this context, I identify significant average and heterogeneous endogenous social interaction effects in the diffusion of information about TASAF II. The findings of this paper inform the design of effective sensitisation campaigns. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2014-11&r=ure |
| By: | Yahya F. Anouti (Division of Economics and Business, Colorado School of Mines); Carol A. Dahl (Division of Economics and Business, Colorado School of Mines) |
| Abstract: | Today, a confluence of factors, such as growing concerns about associated consumption externalities and socioeconomic pressures, is building the momentum towards reducing fossil fuel consumption for road transport and rationalizing prices to reflect direct, indirect and externality costs. While limited country specific work has been done, considering optimal transport fuel prices, (e.g. Parry 2012), we have found no attempts to do so with the breadth and scope of our analysis. Thus in this paper, we make three main contributions. First, we survey policies aimed at reducing transport fuel consumption. Out of these policies, we chose fiscal instruments for our extensive quantitative analysis carried out in a supply and demand framework for 123 countries. Second, we quantify the rationalized cost of transport fuels to reflect the direct costs (production), indirect costs (road maintenance), and negative externalities (climate change, local pollutants, traffic accidents and congestion). Finally, we measure the change in demand, environmental emissions, government revenues and welfare induced by successively phasing in our three cost categories. By rationalizing prices, we estimate that total demand for gasoline could be reduced by 8.5 percent and that of diesel by 5.7 percent. This would lead to not only reduction in associated negative externalities, but also generate an estimated $400 billion in revenues to governments. |
| Keywords: | transport policy, energy demand, subsidy, externalities, gasoline, diesel |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:mns:wpaper:wp201401&r=ure |
| By: | Sotiris Georganas; Mirco Tonin; Michael Vlassopoulos |
| Abstract: | Peer effects arise in situations where workers observe each others’ work activity. In this paper we disentangle the effect of observing a peer from that of being observed by a peer, by setting up a real effort experiment in which we manipulate the observability of performance. In particular, we randomize subjects into three groups: in the first one subjects are observed by another subject, but do not observe anybody; in the second one subjects observe somebody else’s performance, but are not observed by anybody; in the last group subjects work in isolation, neither observing, nor being observed. We consider both a piece rate compensation scheme, where pay depends solely on own performance, and a team compensation scheme, where pay also depends on the performance of other team members. Overall, we find some evidence that subjects who are observed increase productivity at least initially when compensation is team based, while we find that subjects observing react to what they see when compensation is based only on own performance. |
| Keywords: | peer effects, piece rate, team incentives, real-effort experiment |
| JEL: | D03 J24 M52 M59 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_4572&r=ure |