nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2014‒07‒28
33 papers chosen by
Steve Ross
University of Connecticut

  1. Is Housing Overvalued? By Ryan Fox; Peter Tulip
  2. The Gradients of Power: Evidence from the Chinese Housing Market By Hanming Fang; Quanlin Gu; Li-An Zhou
  3. House Prices and Retail Prices By Joe Vavra; Johannes Stroebel
  4. Taxonomic Measure of Development (TMD) with the inclusion of spatial dependence By Michal Bernard Pietrzak
  5. The application of spatial taxonomic measure of development (pTMD) in analysis of the labour market By Michal Bernard Pietrzak
  6. Are you on the right track? The effect of educational tracks on student achievement in upper-secondary education in Hungary By Zoltan Hermann
  7. On the test score gap between Roma and non-Roma students in Hungary and its potential causes By Gabor Kertesi; Gabor Kezdi
  8. Household Risk Management and Actual Mortgage Choice in the Euro Area By Ehrmann, Michael; Ziegelmeyer, Michael
  9. Expanding the School Breakfast Program: Impacts on Children's Consumption, Nutrition and Health By Diane Whitmore Schanzenbach; Mary Zaki
  10. Welfare Measures to Assess Urban Quality of Life By Francesco Andreoli; Alessandra Michelangeli
  11. Late Start with Extra Schooling: The Effect of School Entry-Age Increase and the Introduction of Preparatory Year* By Nikhil Jha
  12. CHIPRA Quality Demonstration States Help School-Based Health Centers Strengthen Their Medical Home Features. By Mynti Hossain; Rebecca Coughlin; Joseph Zickafoose
  13. Identification and Estimation of Outcome Response with Heterogeneous Treatment Externalities By Eleonora Patacchini; Tiziano Arduini; Edoardo Rainone
  14. Local Agglomeration, Entrepreneurship and the Great Recession: Evidence from Italian Industrial Districts By Brunello, Giorgio; Langella, Monica
  15. Mobility of Knowledge and Local Innovation Activity By Drivas, Kyriakos; Economidou, Claire; Karkalakos, Sotiris; Tsionas, Efthymios G.
  16. Cross-border commuting and consuming: An empirical investigation By Mathä, Thomas Y.; Porpiglia, Alessandro; Ziegelmeyer, Michael
  17. Does private tutoring increase students’ academic performance? Evidence from Turkey By Giray Berberoglu; Aysit Tansel
  18. Achieving Escape Velocity: Neighborhood and School Interventions to Reduce Persistent Inequality By Fryer, Roland Gerhard; Katz, Lawrence F.
  19. Using group method of teaching to address the problem of large class size: an action research. By Mintah, Emmanuel Kofi
  20. Made in China, Sold in Norway: Local Labor Market Effects of an Import Shock By Balsvik, Ragnhild; Jensen, Sissel; Salvanes, Kjell G.
  21. The Impact of Place-Based Employment Tax Credits on Local Labor: Evidence from Tax Data By Tong, Patricia; Zhou, Li
  22. gpsbound: Routine for importing and verifying geographical information from a user provided shapefile By Brophy, Tim; Daniels, Reza Che; Musundwa, Sibongile
  23. The modeling of the economic development on the basis of an extended Solow-Swan growth model with the inclusion of spatial aspect By Beata Bal-Domanska; Michal Bernard Pietrzak
  24. Household Finances and Social Interaction: Bayesian Analysis of Household Panel Data By Brown, Sarah; Ghosh, Pulak; Taylor, Karl
  25. Entrepreneurship Capital and Regional Productivity Revisited By Massón-Guerra, José Luis; Ortín-Angel, Pedro
  26. Redefining the Modifiable Areal Unit Problem within spatial econometrics, the case of the aggregation problem. By Michal Bernard Pietrzak
  27. Do Large Modern Retailers Pay Premium Wages? By Brianna Cardiff-Hicks; Francine Lafontaine; Kathryn Shaw
  28. Endogenous Network Production Functions with Selectivity By William C. Horrace; Xiaodong Liu; Eleonora Patacchini
  29. Carsharing peer-to-peer: propensione alla condivisione dei veicoli privati nella città di Milano By Beria, Paolo; Laurino, Antonio
  30. Does Residence in an Ethnic Community Help Immigrants in a Recession? By Pengyu Zhu; Cathy Yang Liu; Gary Painter
  31. The effect of decentralization on educational outcomes: real autonomy matters! By Paula Salinas
  33. A Dirty Look From The Neighbors. Does Living In A Religious Neighborhood Prevent Cohabitation? By Anna Baranowska-Rataj; Monika Mynarska; Daniele Vignoli

  1. By: Ryan Fox (Reserve Bank of Australia); Peter Tulip (Reserve Bank of Australia)
    Abstract: This paper examines whether it costs more to own a home or to rent. We argue this is a useful criterion for assessing housing overvaluation. We use a new Australian dataset, which includes prices and rents for matched properties, letting us value housing in levels. We find that if real house prices grow at their historical average pace, then owning a home is about as expensive as renting. If prices grow more slowly, as some forecasters predict, the framework used in this paper suggests that the average home buyer would be financially better off renting. We decompose house prices into contributions from rents, interest rates and expected capital gains, which may help policymakers in the detection of housing bubbles. Recent data do not show signs of a bubble.
    Keywords: dwelling prices; housing market; overvaluation; tenure choice; user cost
    JEL: R00 R21
    Date: 2014–07
  2. By: Hanming Fang; Quanlin Gu; Li-An Zhou
    Abstract: Using a large, unique dataset on the Chinese housing market, we propose to measure corruption using the price differences paid by bureaucrat buyers and non-bureaucrat buyers in the housing market. We find that the housing price paid by bureaucrat buyers is on average 1.05 percentage points lower than non-bureaucrat buyers, after controlling for a full set of characteristics of buyers, houses and mortgage loans. More interestingly, we find that the bureaucrat price discounts exhibit interesting gradients with respect to their hierarchical ranks, the criticality of their government agencies to real estate developers, and geography. We argue that the bureaucrat price discounts and the gradients of these discounts are unlikely to be driven by alternative explanations, thus they are evidence of corruption and measures of the market value of government power.
    JEL: D73 H1 O18
    Date: 2014–07
  3. By: Joe Vavra (University of Chicago); Johannes Stroebel (New York University)
    Abstract: Do increases in wealth driven by house price growth lead to changes in customer shopping and firms' price-setting behavior? We link disaggregated microdata from various sources to construct zip-code level measures of retail prices, house prices, and customer shopping. We find that there is a strong positive relationship between retail prices and house prices. To argue that this relationship is evidence of wealth-effects, we show that increases in house prices increase retail prices only in regions with high owner occupancy rates. House price increases are negative wealth effects for renters, and we find that in regions with low owner occupancy rates, house price growth lowers retail prices. In addition, consumer shopping behavior also changes with house price growth in a way that depends on owner occupancy rates.
    Date: 2014
  4. By: Michal Bernard Pietrzak (Nicolaus Copernicus University, Poland)
    Abstract: The subject of the article concerns the question of the use of a taxonomic measure of development (TMR) in spatial economic analyses under the conditions of spatial dependence. Positive spatial dependence is observed for the majority of economic phenomena. This forces the inclusion of this dependence in the construction of the measure, thus providing a spatial taxonomic measure of development (pTRM). Therefore, the aim of this article is to develop a proposal for the construction of a spatial taxonomic measure of development. Spatial dependence will be taken into account in the design of the meter by using the potential strength of the interaction between the regions. As a result, a spatial taxonomic measure of development will allow the trend in the analyzed phenomena to be determined. The construction of the spatial taxonomic measure of development (pTMR) proposed in the article was applied in the study of the spatial economic development level of Polish subregions (NUTS 3) in 2011. The analysis allowed us to assess the economic situation in Poland and to identify trends in the economic development of subregions.
    Keywords: regional development, numeric taxonomy, Taxonomic Measure of Development, spatial econometrics, spatial dependence
    JEL: C21 O11 R11
    Date: 2014–03
  5. By: Michal Bernard Pietrzak (Nicolaus Copernicus University, Poland)
    Abstract: The theme of the paper is focused on the application of spatial taxonomic measure of development (pTMR) while analysing the labour market in Poland. The need for the use of a spatial taxonomic measure of development is related to the fact that most economic phenomena are characterized by positive spatial dependence. This necessitates the inclusion of this dependence in spatial economic analyses. The article analyses the labour market in 66 subregions (NUTS 3) in 2012. The study allowed us to assess the situation on the labour market and identify the trends in its development.
    Keywords: regional development, numeric taxonomy, Taxonomic Measure of Development, spatial econometrics, labour market
    JEL: C21 J11 J64 O11 R11 R23
    Date: 2014–03
  6. By: Zoltan Hermann (Institute of Economics, Center for Economic and Regional Studies, Hungarian Academy of Sciences)
    Abstract: The paper attempts to identify causal effects of being enrolled in different educational tracks on student achievement in upper-secondary education in Hungary. Rejected and admitted students are compared who applied to the same school and performed similarly in the previous grade. Average treatment effects on the treated are estimated with a matching method. Results indicate that higher track significantly raises student achievement. Beside the effect of tracks, the schools preferred by students within the tracks also provide better educational quality. Comparing the effects of tracks and differences within the tracks reveals that the advantage of the academic track does not differ from that of better schools in general. At the same time, the vocational track incurs substantial losses that are in part specific to that track.
    Keywords: education, tracking, matching, equality of opportunity
    JEL: I20 I21 I24
    Date: 2013–11
  7. By: Gabor Kertesi (Institute of Economics, Center for Economic and Regional Studies, Hungarian Academy of Sciences); Gabor Kezdi (Central European University and Institute of Economics, Center for Economic and Regional Studies, Hungarian Academy of Sciences)
    Abstract: Using unique data from Hungary, we assess the gap in standardized test scores between Roma and non-Roma students and show that this gap is comparable to the size of the Black-White test score gap in the United States in the 1980s. The ethnic test score gap in Hungary is nearly entirely explained by social differences in income, wealth and parental education, while ethnic factors do not play an important role. Using reduced-form regressions, we identify two major mediating mechanisms: first, the home environment of Roma children is less favorable for their cognitive development; second, Roma children face a lower quality educational environment. Comparing children with similar home environments from the same school and class, we find that the ethnic gap in test scores is insignificant. Ethnic differences in the home environment are explained by social differences, and ethnicity seems to play no additional role. While their disadvantage in accessing high-quality education is also strongly related to social differences, Roma students seem to face additional disadvantages as subjects of ethnic segregation. The results suggest that in addition to policies designed to alleviate poverty, well-designed interventions influencing these mechanisms can also improve the skill development of Roma and other disadvantaged children.
    Keywords: test score gap, Roma minority, Hungary
    JEL: I20 J15
    Date: 2014–01
  8. By: Ehrmann, Michael; Ziegelmeyer, Michael (Munich Center for the Economics of Aging (MEA))
    Abstract: Mortgages constitute the largest part of household debt. An essential choice when taking out a mortgage is between fixed-interest-rate mortgages (FRMs) and adjustable-interest-rate mortgages (ARMs). However, so far, no comprehensive cross-country study has analyzed what determines household demand for mortgage types, a task that this paper takes up using new data for the euro area. Our results support the hypothesis of Campbell and Cocco (2003) that the decision is best described as one of household risk management: income volatlity reduces the take-out of ARMs, while increasing duration and relative size of the mortgages increase it. Controlling for other supply factors through country fixed effects, loan pricing also matters, as expected, with ARMs becoming more attractive when yield spreads rise. The paper also conducts a simulation exercise to identify how the easing of monetary policy during the financial crisis affected mortgage holders. It shows that the resulting reduction in mortgage rates produced a substantial decline in debt burdens among mortgage-holding households, especially in countries where households have higher debt burdens and a larger share of ARMs, as well as for some disadvantaged groups of households, such as those with low income.
    JEL: D12 E43 E52 G21
    Date: 2014–04–14
  9. By: Diane Whitmore Schanzenbach; Mary Zaki
    Abstract: School meals programs are the front line of defense against childhood hunger, and while the school lunch program is nearly universally available in U.S. public schools, the school breakfast program has lagged behind in terms of availability and participation. In this paper we use experimental data collected by the USDA to measure the impact of two popular policy innovations aimed at increasing access to the school breakfast program. The first, universal free school breakfast, provides a hot breakfast before school (typically served in the school’s cafeteria) to all students regardless of their income eligibility for free or reduced-price meals. The second is the Breakfast in the Classroom (BIC) program that provides free school breakfast to all children to be eaten in the classroom during the first few minutes of the school day. We find both policies increase the take-up rate of school breakfast, though much of this reflects shifting breakfast consumption from home to school or consumption of multiple breakfasts and relatively little of the increase is from students gaining access to breakfast. We find little evidence of overall improvements in child 24-hour nutritional intake, health, behavior or achievement, with some evidence of health and behavior improvements among specific subpopulations.
    JEL: I12 I21
    Date: 2014–07
  10. By: Francesco Andreoli; Alessandra Michelangeli
    Abstract: The standard index of urban quality of life provides an approximated value of the quality of life, since it associates the bundles of amenities observed in urban areas with their implicit marginal prices, and not with the prices of infra-marginal units. In this paper, we adjust the standard measure to determine the monetary value of any bundle, which might substantially differ from the bundle of the marginal quantities of amenities. Our methodology relies on a welfare measure that represents the individual willingness to give up (accept) to insure (forego) a change in the current distribution of amenities across areas will take place, keeping the level of utility unchanged. We obtain a new measure, the value-adjusted quality of life index, that can be identified from parametric models of consumer preferences. We use this index to measure the quality of life in the city of Milan.
    Keywords: Hedonic Models, Quality of Life, Structural models
    JEL: D6 H4 R1 R2
    Date: 2014–06
  11. By: Nikhil Jha (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
    Abstract: This paper analyzes the combined effect of school entry-age increase and the introduction of preparatory year (pre-school) on educational achievement using a difference-in-difference specification. Achievement is assessed using the score on national standardized tests across a range of subjects. The analysis uses the change in state policy across two states in Australia to estimate the effect. Policies were enacted in different years and affect different cohorts. I find positive effects for several subjects across different grades. Results are robust to falsification tests. However, cohorts starting school during the policy implementation period seem to have been adversely affected.
    Keywords: Educational achievement, human capital
    JEL: I28 J24
    Date: 2014–04
  12. By: Mynti Hossain; Rebecca Coughlin; Joseph Zickafoose
    Keywords: CHIPRA, School-Based Health Centers, Medical Home, Health
    JEL: I
    Date: 2014–05–30
  13. By: Eleonora Patacchini (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244); Tiziano Arduini (University of Rome "Tor Vergata"); Edoardo Rainone (LaSapienza University)
    Abstract: This paper studies the identification and estimation of treatment response with heterogeneous spillovers in a network model. We generalize the standard linear-in-means model to allow for multiple groups with between and within-group interactions. We provide a set of identification conditions of peer effects and consider a 2SLS estimation approach. Large sample properties of the proposed estimators are derived. Simulation experiments show that the estimators perform well in finite samples. The model is used to study the effectiveness of policies where peer effects are seen as a mechanism through which the treatments could propagate through the network. When interactions among groups are at work, a shock on a treated group has effects on the non-treated. Our framework allows for quantifying how much of the indirect treatment effect is due to variations in the characteristics of treated peers (treatment contextual effects) and how much is because of variations in peer outcomes (peer effects).
    Keywords: Networks, Heterogeneous Peer Effects, Spatial Autoregressive Model, Two-Stage Least Squares, Efficiency, Policy Evaluation, Treatment Response, Indirect Treatment Effect
    JEL: C13 C21 D62
    Date: 2014–04
  14. By: Brunello, Giorgio (University of Padova); Langella, Monica (University of Verona)
    Abstract: We ask whether local agglomeration affects how recessions impact on entrepreneurship by comparing the probability of being an entrepreneur before and after the Great 2008 Recession in local labour markets where industrial districts are present and in comparable areas. Using Italian Labour Force quarterly data from 2006 to 2011 and a "difference-in-differences" approach, we find that for males aged 40 to 55, who are more likely to be entrepreneurs, the negative effect of the recession on entrepreneurship has been sharper in areas with industrial districts. After examining alternative explanations – ranging from specialization to access to credit, from propensity to export to the industrial sector – we conclude that our findings are consistent with the view that intense social interaction in industrial districts acts as a multiplier that amplifies the response to shocks.
    Keywords: entrepreneurship, recession, Italy, industrial districts
    JEL: J21 J24
    Date: 2014–07
  15. By: Drivas, Kyriakos; Economidou, Claire; Karkalakos, Sotiris; Tsionas, Efthymios G.
    Abstract: This paper studies the diffusion of knowledge and its consequences for local innovation production. In a common framework, we analyze the geographic reach of different channels of knowledge flows that thus far have been studied separately in the literature. To jointly estimate these flows, we develop and apply novel econometric techniques appropriate to the nature of the data. We find that geographic along with technological proximity to be more essential to the operation of market than to non-market channels of knowledge flows. External accessible disembodied knowledge has a strong positive effect on local innovation production as large as that of homegrown knowledge.
    Keywords: knowledge flows, patents, citations, inventor mobility, trade, non-linear regression systems
    JEL: C11 C33 O30 O51
    Date: 2014–07–21
  16. By: Mathä, Thomas Y.; Porpiglia, Alessandro; Ziegelmeyer, Michael (Munich Center for the Economics of Aging (MEA))
    Abstract: This paper analyses empirically how cross-border consumption varies across product and services categories and across household characteristics. It focuses on the part of crossborder sales that arise due to work-related cross-border crossings; it analyses the crossborder consumption behaviour of cross-border commuter households residing in Belgium, France and Germany and working in Luxembourg. In total, it is estimated that these households spend €925 million per annum in Luxembourg, reflecting about 17% of their gross annual income from Luxembourg and contributing about 10% to total household final consumption expenditure in Luxembourg. Cross-border consumption expenditure is shown to depend on individual and household characteristics, such as total household income, the number of cross-border commuters in the household, distance between home and work, as well as price level (index) differences between Luxembourg and its neighbouring countries. Cross-border commuters take advantage of existing arbitrage opportunities.
    JEL: F15 R12 R23 J61
    Date: 2014–04–14
  17. By: Giray Berberoglu (Department of Secondary Mathematics and Science Education, METU); Aysit Tansel (Department of Economics, METU; Institute for the Study of Labor (IZA) Bonn, Germany; Economic Research Forum (ERF) Cairo, Egypt)
    Abstract: This paper investigates the effectiveness of private tutoring in Turkey. The authors introduce their study by providing some background information on the two major national examinations and three different kinds of tutoring. They then describe how they aimed to analyse whether attending private tutoring centres (PTCs) enhances Turkish students’ academic performance. By way of multiple linear regression analysis, their study sought to evaluate whether the impact of private tutoring varies in different subject areas, taking into account several student-related characteristics such as family and academic backgrounds as well as interest in and perception of academic success. In terms of subject areas, the results indicate that while private tutoring does have a positive impact on academic performance in mathematics and Turkish language, this is not the case in natural sciences. However, as evidenced by the effect sizes, these impacts are rather small compared to the impacts of other variables such as interest in and perception of academic success, high school graduation fields of study, high school cumulative grade point average (CGPA), parental education and students’ sociocultural background. While the authors point out that more research on the impact of further important variables needs to be done, their view is that school seems to be an important factor for determining students’ academic performance.
    Keywords: Private tutoring, Academic Performance, Regression analysis, Turkey.
    JEL: I20 I21 I22
    Date: 2014–07
  18. By: Fryer, Roland Gerhard; Katz, Lawrence F.
    Abstract: This paper reviews the evidence on the efficacy of neighborhood and school interventions in improving the long-run outcomes of children growing up in poor families. We focus on studies exploiting exogenous sources of variation in neighborhoods and schools and which examine at least medium-term outcomes. Higher-quality neighborhoods improve family safety, adult subjective well-being and health, and girls' mental health. But they have no detectable impact on youth human capital, labor market outcomes, or risky behaviors. In contrast, higher-quality schools can improve children's academic achievement and can have longer-term positive impacts of increasing educational attainment and earnings and reducing incarceration and teen pregnancy.
    Date: 2013
  19. By: Mintah, Emmanuel Kofi
    Abstract: Large class sizes in Ghanaians schools with its attendants problems are major factors for the dwindling academic performance of students in Ghana. To solve this, means reducing the number of students which implies depriving some children from their right to education or building more schools and employing more staff which will bloat government expenditure. This paper brings to light the best and innovative method of addressing the problem of large class sizes. Test, interview, observation and questionnaires were the main data collection instruments used. The study revealed that Ghanaian schools have large class sizes. The following were identified to be problems of large classes: inappropriate methods of teaching; inappropriate mode of assessment; stifled students’ creativity; inattention to students’ problems. The research further showed that group method of teaching Financial Accounting is the best way of addressing the problem of large class size. It is recommended that teachers use appropriate method of teaching to motivate, arouse and sustain students’ interest in their subjects. Again, school administrators must organize regular in-service training to teachers and also monitor closely the work of teachers and students. Stakeholders of education must institute reward and incentive schemes to motivate teachers to give of their best.
    Keywords: Group method of teaching, Large class size, Action research
    JEL: I2
    Date: 2014–03–31
  20. By: Balsvik, Ragnhild (Norwegian School of Economics); Jensen, Sissel (Norwegian School of Economics); Salvanes, Kjell G. (Norwegian School of Economics)
    Abstract: We analyze whether regional labor markets are affected by expo- sure to import competition from China. We find negative employment effects for low-skilled workers, and observe that low-skilled workers tend to be pushed into unemployment or leave the labor force altogether. We find no evidence of wage effects. We partly expect this in a Nordic welfare state where firms are flexible at the employment margin, while centralized wage bargaining provides less flexibility at the wage margin. Our estimates suggest that import competition from China explains almost 10% of the reduction in the manufacturing employment share from 1996 to 2007 which is half of the effect found by Autor, Dorn and Hanson (2013) for the US.
    Keywords: import competition, local labor markets, Norway
    JEL: F16 H53 J23 J31
    Date: 2014–07
  21. By: Tong, Patricia (US Department of the Treasury); Zhou, Li (University of Alberta, Department of Economics)
    Abstract: Using administrative tax data that contain information on firm credit take-up and employee residence, we examine the impact of the Empowerment Zone and Renewal Community employment tax credits on local labor. We find modest evidence that zone designation improves labor market outcomes among residents. However, when we specifically estimate the impact of the place-based employment tax credit and disentangle the impact based on where workers live and work, we find strong evidence that the employment tax credits have significant and positive impacts on both zone and non-zone residents employed at firms that claim these credits. We determine that firms claiming the employment tax credit represent a small share of the overall labor demand of zone residents. As a result, utilizing data that include information on which firms receive place-based tax incentives is crucial to evaluate how these policies impact local labor, and evaluations looking at outcomes of broader populations may not be able to identify significant improvements in outcomes if a limited fraction of the population is directly affected.
    Keywords: employment tax credits; place-based programs; business incentives; empowerment zones; renewal communities
    JEL: H25 J38 R23 R58
    Date: 2014–07–01
  22. By: Brophy, Tim (SALDRU, School of Economics, University of Cape Town); Daniels, Reza Che (School of Economics, University of Cape Town); Musundwa, Sibongile (SALDRU, School of Economics, University of Cape Town)
    Abstract: Geographical coordinates such as Global Positioning System (GPS) latitude and longitude estimates form the foundation of many spatial statistical methods. gpsbound allows users to (1) import geographical information from the attribute table of a polygon shapefile based on the identified location of GPS coordinates in a Stata dataset, and (2) check that the GPS coordinates lie within the bounds of a polygon demarcated in the shapefile (e.g. enumerator areas, primary sampling units, suburb, city, country). One of the contributions of gpsbound is to allow users to work with spatial data in Stata without ever needing Geographical Information System (GIS) software.
    Keywords: Stata ado, GPS coordinates, Bounding box, Point in polygon algorithm
    JEL: C63
    Date: 2014
  23. By: Beata Bal-Domanska (Wroc³aw University of Economics, Poland); Michal Bernard Pietrzak (Nicolaus Copernicus University, Poland)
    Abstract: The objective of the article is to identify and evaluate spatial relations in terms of economic determinants for the regions of Central and Eastern European countries (in accordance with Eurostat methodology NUTS-2 stands for the corresponding level) having applied the construction of an augmented, neoclassical Mankiw-Romer-Weil growth model. The study covered the period of three years: 2000, 2005 and 2010. The obtained results confirmed the significance of spatial relations, in the evaluation of relations combining growth factors, for the level of economic growth. The statistically significant impact, however, was observed only in case of the factor illustrating human capital.
    Keywords: augmented Mankiw-Romer-Weil growth model, spatial econometrics, Central and Eastern European regions
    JEL: C21 O11 R11
    Date: 2014–03
  24. By: Brown, Sarah (University of Sheffield); Ghosh, Pulak (Indian Institute of Management); Taylor, Karl (University of Sheffield)
    Abstract: We investigate the relationship between social interaction and household finances using data from the British Household Panel Survey. We contribute to the existing literature by exploring the relationship between a wide range of aspects of household finances and social interaction, rather than focusing one particular facet of household finances, such as the holding of stocks and shares. To be specific, we develop a Bayesian statistical framework to simultaneously explore both sides of the household balance sheet, i.e. liabilities and assets. Additionally, we allow the influence of social interaction on household finances to be time dependent, which enables us to model the effects of social interaction from a dynamic perspective. We also develop a two-part model to jointly investigate the influence of social interaction on the amount of different types of debt and financial assets held conditional on holding the different types of debt and assets. The analysis suggests that the effect of social interaction is not just restricted to share ownership, with positive effects found for both assets and liabilities. Our analysis also suggests that social interaction is associated with households holding larger amounts of both debt (unsecured and secured) and assets (property and non-housing), even after conditioning on the probability of possessing liabilities and/or assets.
    Keywords: assets, debt, household finances, social interaction
    JEL: D12 D14 C11
    Date: 2014–07
  25. By: Massón-Guerra, José Luis; Ortín-Angel, Pedro
    Abstract: Entrepreneurship capital has been considered in the literature to be a public good, so it will positively affect a region’s total factor productivity. There is evidence confirming a positive relationship between entrepreneurship capital measures and regional production. This paper argues that the number of firms in a region will be positively related with the regional production in the presence of decreasing returns to scale in firms’ production technology. So if we do not control for the number of firms (and entrepreneurship capital is positively related with the stock of firms) we may be mixing both effects, returns to scale and public goods. This paper provides a methodological benchmark for distinguishing between both effects. The analysis conducted using a sample of 52 Spanish provinces for eleven years suggests major differences and conclusions between methodologies. In our data, previous methods overestimate the effect of regional entrepreneurship capital on the economy.
    Keywords: Entrepreneurship Capital, Regional Productivity, Scale Economies
    JEL: L26 O4 R11
    Date: 2014
  26. By: Michal Bernard Pietrzak (Nicolaus Copernicus University, Poland)
    Abstract: The paper focuses on the issue of the aggregation problem which is frequently discussed within spatial econometrics. Aggregation problem is one of two aspects of the modifiable areal unit problem (MAUP). The aggregation problem is connected with the volatility of the obtained results occurred when various compositions of territorial units for the same aggregation scale were applied. The objective of the present paper is considering the redefinition of aggregation problem and showing positive solution of the aggregation problem based on the empirical example of determining agricultural macroregions. In the article the aggregation problem was defined as a problem of establishment a particular composition of territorial units at a selected aggregation scale in a such a way that is remains in the quasi composition of regions within the undertaken research problem. The paper also presented the procedure for determining agricultural macroregions where the analysis of the spatial volatility of the agrarian structure and the current knowledge on the agriculture in Poland were applied. In addition, the paper considered the final areal interpretation problem connected with the incorrect determination of the area in relation to which final conclusions are drawn. The problem was presented based on the example of the establishment of the average concentration of the area of agricultural land in Poland with the use of the Gini index calculated for districts. The paper emphasised that ignoring the final areal interpretation problem in spatial analyses may lead to an apparent identification of the modifiable areal unit problem.
    Keywords: spatial econometrics, modifiable areal unit problem, scale problem, aggregation problem
    JEL: C01 C15 C21
    Date: 2014–01
  27. By: Brianna Cardiff-Hicks; Francine Lafontaine; Kathryn Shaw
    Abstract: With malls, franchise strips and big-box retailers increasingly dotting the landscape, there is concern that middle-class jobs in manufacturing in the U.S. are being replaced by minimum wage jobs in retail. Retail jobs have spread, while manufacturing jobs have shrunk in number. In this paper, we characterize the wages that have accompanied the growth in retail. We show that wage rates in the retail sector rise markedly with firm size and with establishment size. These increases are halved when we control for worker fixed effects, suggesting that there is sorting of better workers into larger firms. Also, higher ability workers get promoted to the position of manager, which is associated with higher pay. We conclude that the growth in modern retail, characterized by larger chains of larger establishments with more levels of hierarchy, is raising wage rates relative to traditional mom-and-pop retail stores.
    JEL: J00 J24 J3 L25 L81
    Date: 2014–07
  28. By: William C. Horrace (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244-1020); Xiaodong Liu (University of Colorado Boulder); Eleonora Patacchini (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244-1020)
    Abstract: We consider a production function model that transforms worker inputs into outputs through peer effect networks. The distinguishing features of this production model are that the network is formal and observable through worker scheduling, and selection into the network is done by a manager. We discuss identification and suggest a variety of estimation techniques. In particular, we tackle endogeneity issues arising from selection into groups and exposure to common group factors by employing a polychotomous Heckman-type selection correction. We illustrate our method using data from the Syracuse University Men’s Basketball team, where at any point in time the coach selects a lineup and the players interact strategically to win games.
    Keywords: Stochastic Frontier Model, Spatial Autoregressive Model, Peer Effects, Endogenous Network Formation, Selectivity
    JEL: C31 C44 D24
    Date: 2014–05
  29. By: Beria, Paolo; Laurino, Antonio
    Abstract: In recent years, several peer-to-peer carsharing systems have developed worldwide. They allow car owners to share their vehicles in exchange of a monetary compensation. The paper, starting from an online survey carried out in Milan in 2012, analyzes the potentiality of a possible peer-to-peer carsharing service. It investigates the propensity of users to share their vehicles, as well as the moments of the day in which they are willing to make the car available for sharing and the thresholds of minimum income required to take part to the scheme. The survey shows a moderate interest towards the scheme in general, evidencing also a good attitude towards the sharing of private vehicles, especially if made among a small group of trusted users. The supply function has been built starting from the amount of money requested by car owners and the stated windows of weekly availability to share their cars. The analysis of the supply function allows to discriminate between different types of users and highlights how some moments of the day (early morning) have greater potential in terms of available shared vehicles while others are characterized by higher monetary compensations desired by car owners to share their cars (evening).
    Keywords: carsharing, peer-to-peer, sustainable mobility
    JEL: L91 R41
    Date: 2014–07
  30. By: Pengyu Zhu; Cathy Yang Liu; Gary Painter
    Abstract: Research on how the residential segregation of immigrant populations has impacted their labor market outcomes presents many challenges because of the fact that immigrants often choose to locate near co-ethnics to share re sources and cultural amenities. Because not all immigrants choose to live in these ethnic communities, identification of a causal effect on living in an ethnic community is difficult. The estimation of an effect of living in these ethnic communities is also difficult because it is ambiguous whether such residence will help or harm the labor market outcomes of immigrants. This study implements a number of approaches to help identify a causal effect, including using sample of adults whose residential location is plausibly exogenous with respect to their labor market outcomes and using the current recession as a source of exogenous variation. Results suggest that residence in an ethnic community after the recession increases the likelihood of working, albeit with longer commutes.
    Date: 2013
  31. By: Paula Salinas (Universitat de Barcelona & IEB)
    Abstract: This paper uses cross-national data to examine the effects of different dimensions of decentralization on the efficiency of educational policies in OECD countries. The results show that the autonomy of subnational governments, both on the expenditure and revenue sides of their activities, is what really matters in determining the effect of decentralization on educational outcomes. The decision-making autonomy of subnational governments with regard to the regulation and management of the educational system has a significant and positive effect on educational attainment, though this varies with the degree to which subnational governments are held accountable for their taxing decisions. These results are robust to the different analyses conducted, thus corroborating that they are not driven by the potential endogeneity of decentralization policies.
    Keywords: Fiscal federalism, decentralization, education, OECD, PISA
    JEL: H11 H52 H75 H77 I28
    Date: 2014
  32. By: Swenson, David A.
    Abstract: This is a how-to manual for utilizing the IMPLAN impact analysis program when measuring the worth of public universities to regional economies. �This paper describes four approaches to measuring university economic values ranging from simple modification to the elements of value added to producing highly itemized "bill of goods" types of specifications. �It compares the four methods to one another as well as to a formal RIMS II analysis of the same institution by the U.S. BEA. �
    Date: 2014–06–05
  33. By: Anna Baranowska-Rataj (Institute of Statistics and Demography, Warsaw School of Economics, Sociology Department, Umea University); Monika Mynarska (Cardinal Stefan Wyszyñski University in Warsaw, Institute of Psychology); Daniele Vignoli (University of Florence, Department of Statistics “G. Parenti”)
    Abstract: The aim of the paper is to provide insights into how religion influences the family formation process. In particular, we analyze the impact of a neighborhood context religiosity on an individual decision to enter cohabitation. We use the data on two European societies where secularization and individualization have not yet reached momentum: Italy and Poland. We combine the empirical evidence from both qualitative and quantitative research. The qualitative research provides an in-depth understanding of the mechanisms through which the neighborhood may affect the individual decisions on union formation. By means of quantitative multilevel analyses we test how strong these mechanisms are in the general population. The qualitative analysis identified several mechanisms related, among others, to a lack of social recognition for cohabiting couples and to ostracism in the neighborhood. The quantitative outcomes confirmed that individuals living in social environment where people are very religious tend to make life choices consistent with the norms and beliefs supported by the dominating religion, even if they are not very religious themselves. Importantly, after controlling for territorial characteristics, the role of neighborhood-specific religiosity weakened in the magnitude in Poland and lost its statistical power in Italy. This may indicate that the impact of religion on observed union formation behaviors is indirect: It does seem to influence observed family behaviors through the social pressure to get married and traditions, rather than through the force of Catholic dogmas.
    Keywords: cohabitation, union formation, religiosity, social pressure
    JEL: J12 Z12 Z13
    Date: 2014

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