nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2014‒08‒28
33 papers chosen by
Steve Ross
University of Connecticut

  1. Welfare Benefits of Agglomeration and Worker Heterogeneity By Teulings, Coen; Ossokina, Ioulia V.; de Groot, Henri L.F.
  2. Urban Design Manual for Non-Motorized Transport-Friendly Neighborhoods By Ke Fang
  3. Housing market prices: capitalisation of efficiency in local public service provision. An application with data on Italian urban transport related expenditures By Bergantino, Angela Stefania; Porcelli, Francesco
  4. Atmospheric Pollution in Rapidly Growing Urban Centers: Spatial Policies and Land Use Patterns By Kyriakopoulou , Efthymia; Xepapadeas, Anastasios
  5. Neighbourhood Turnover and Teenage Attainment By Stephen Gibbons; Olmo Silva; Felix Weinhardt
  6. Cairo Traffic Congestion Study : Final Report By World Bank
  7. Parental Preferences for Primary School Characteristics By Borghans, Lex; Golsteyn, Bart H.H.; Zölitz, Ulf
  8. What old stagers could teach us: Examining age complementarities in regional innovation systems By Arntz, Melanie; Gregory, Terry
  9. The Effect of Local Crime on Well-Being: Evidence for Germany By Christian Krekel; Marie L. Poprawe
  10. Cairo Traffic Congestion Study : Executive Note By World Bank
  11. Self-employment Choices of Rural Migrants in China: Distance and Social Network By Zhou, Yexin; Chen, Mo; Ye, Jingyi
  12. "Phantom of the Opera" or "Sex and the City"? Historical Amenities as Sources of Exogenous Variation By Bauer, Thomas K.; Breidenbach, Philipp; Schmidt, Christoph M.
  13. Is China's Property Market Heading toward Collapse? By Li-Gang Liu
  14. Integration as a spatial institution: Implications for agglomeration and growth By Deeken, Tim; Ott, Ingrid
  15. Road for Cultural Heritage : Policy Note on Cultural Heritage and Infrastructure Development in Timor-Leste By World Bank
  16. Defining Clusters of Related Industries By Mercedes Delgado; Michael E. Porter; Scott Stern
  17. Diversity and Social Capital in the U.S: A Tale of Conflict, Contact or Total Mistrust? By Belton, Willie; Huq, Yameen; Uwaifo Oyelere, Ruth
  18. Liquidity Premia, Price-Rent Dynamics, and Business Cycles By Jianjun Miao; Pengfei Wang; Tao Zha
  19. Supply function equilibria in transportation networks By Pär Holmberg; Andy Philpott
  20. Robust Equilibria in Location Games By Berno Buechel; Nils Roehl
  21. Economic Centrality: How Much is Economics and How Much is Geography? By Crespo, Nuno; Fontoura, M. Paula; Simoes, Nadia
  22. Food prices, road infrastructure, and market integration in Central and Eastern Africa By Brenton, Paul; Portugal-Perez, Alberto; Regolo, Julie
  23. The Rebound Effect for Automobile Travel:Asymmetric Response to Price Changes and Novel Features of the 2000s By Kent M. Hymel; Kenneth Small
  24. Toward a Theory of the Entrepreneurial Process By Leyden, Dennis; Link, Albert
  25. Effiiciency in regional investments in R&D: implications for territorial growth. By Bergantino, Angela Stefania; Capozza, Claudia; De Carlo, Angela
  26. Principal-agent relationship in resource management, multiple principals and spatial dynamics By Philippe Delacote; Arnaud Dragicevic; Serge Garcia
  27. Higher bank capital requirements and mortgage pricing: evidence from the Counter-Cyclical Capital Buffer By Christoph Basten; Catherine Koch
  28. Empirical evidence on the use of the FLQ formula for regionalizing national input-output tables: The case of the Province of C¨®rdoba, Argentina By Anthony T. Flegg; Leonardo J. Mastronardi; Carlos A. Romero
  29. Market Accessibility and Regional Maps : Kyrgyz Republic By Brian Blankespoor
  30. Household Finance after a Natural Disaster: The Case of Hurricane Katrina By Hartley, Daniel; Gallagher, Justin
  31. South East Europe Municipal Finance Review : Local Government Finance in the Western Balkans By World Bank
  32. Commonality in liquidity and real estate securities By Martin Hoesli; Anjeza Kadilli; Kustrim Reka
  33. Strategic Behavior and Social Outcomes in a Bottleneck Queue: Experimental Evidence By Breinbjerg, Jesper; Sebald, Alexander; Østerdal, Lars Peter

  1. By: Teulings, Coen (University of Cambridge); Ossokina, Ioulia V. (CPB Netherlands Bureau for Economic Policy Analysis); de Groot, Henri L.F. (VU University Amsterdam)
    Abstract: The direct impact of local public goods on welfare is relatively easy to measure from land rents. However, the indirect effects on home and job location, on land use, and on agglomeration benefits are hard to pin down. We develop a spatial general equilibrium model for the valuation of these effects. The model is estimated using data on transport infrastructure, commuting behavior, wages, land use and land rents for 3000 ZIP-codes in the Netherlands and for three levels of education. Welfare benefits are shown to differ sharply by workers' educational attainment.
    Keywords: local public goods, agglomeration, spatial equilibrium, residential sorting, land rents
    JEL: H4 H54 R13 R23 R4
    Date: 2014–08
  2. By: Ke Fang
    Keywords: Urban Transport Urban Development - Transport in Urban Areas Housing and Human Habitats Roads and Highways Transport Economics Policy and Planning Communities and Human Settlements Transport
    Date: 2013–01
  3. By: Bergantino, Angela Stefania; Porcelli, Francesco
    Abstract: This paper investigates, from both a theoretical and an empirical point of view, the relationship between local government efficiency and the local housing market and, in particular, the possibility that councils’ performance is capitalised in the price of housing. The theoretical analysis is developed within a classical "Tiebout framework" using a simple model of urban political economy, showing the mechanism through which local government efficiency is capitalised in the value of houses. The empirical analysis, based on data from Italian municipalities, provides robust evidence in support of the hypothesis of positive capitalisation.
    Date: 2013
  4. By: Kyriakopoulou , Efthymia (Department of Economics, School of Business, Economics and Law, Göteborg University); Xepapadeas, Anastasios (Department of International and European Economic Studies, Athens University of Economics and Business and Beijer Fellow)
    Abstract: We study the optimal and equilibrium distribution of industrial and residential land in a given region. The trade-off between the agglomeration and dispersion forces, in the form of pollution from stationary forces, production externalities, and commuting costs, determines the emergence of industrial and residential clusters across space. In this context, we define two kinds of spatial policies that can be used in order to close the gap between optimal and market allocations. More specifically, we show that the joint implementation of a site-specific environmental tax and a site-specific labor subsidy can reproduce the optimum as an equilibrium outcome. The methodological approach followed in this paper allows for endogenous determination of land use patterns and is shown to provide more precise results compared to previous studies.
    Keywords: spatial policies; agglomeration; land use; atmospheric pollution; environmental tax; labor subsidy
    JEL: H23 R14 R38
    Date: 2014–08–12
  5. By: Stephen Gibbons; Olmo Silva; Felix Weinhardt
    Abstract: Theories about neighbours' influence on children based on social capital, cohesion and disorganisation stress the importance of neighbourhood stability. However, amongst the vast number of studies on the effect of neighbours on a child's education, none has tested whether neighbourhood stability matters. We fill this gap by estimating the causal effect of residential turnover on student test score gains. We show that high neighbourhood turnover reduces value added for students who stay in their neighbourhood, and this effect is more pronounced in more deprived neighbourhoods. Estimation is based on administrative data on four cohorts of secondary school children in England, allowing us to control for unobserved confounding individual effects, neighbourhood fixed effects and trends, plus school-by-cohort shocks. These main results, coupled with auxiliary findings based on survey data, suggest that neighbourhood turnover damages education through the disruption of local ties and social capital, highlighting a so-far undiscovered externality of mobility.
    Keywords: Education, neighbourhood, turnover, social capital
    JEL: C21 I20 R23
    Date: 2014–08
  6. By: World Bank
    Keywords: Urban Transport Urban Development - Transport in Urban Areas Roads and Highways Transport Economics Policy and Planning Transport and Environment Transport
    Date: 2013–05
  7. By: Borghans, Lex (Maastricht University); Golsteyn, Bart H.H. (Maastricht University); Zölitz, Ulf (Maastricht University)
    Abstract: Free school choice has often been argued to be a tide that lifts school quality through increased competition. This paper analyzes the underlying assumption that school quality is an important choice criterion for parents. Using a large and representative data set of over 15,000 Dutch primary school starters we estimate models of school demand that incorporate heterogeneity in school preferences. Our results show that traditional measures for school quality matter, but other characteristics, such as school denomination and educational philosophy, are more important predictors of choice. Preferences for these school characteristics are strongly heterogeneous across parents.
    Keywords: school choice, school quality, school competition
    JEL: I2 I24 J24
    Date: 2014–08
  8. By: Arntz, Melanie; Gregory, Terry
    Abstract: Concerns have been raised that demographic ageing may weaken the competitiveness of knowledge-based economies and increase regional disparities. The age-creativity link is however far from clear at the aggregate level. Contributing to this debate, we estimate the causal effect of the workforce age structure on patenting activities for local labour markets in Germany using a flexible knowledge production function and accounting for potential endogeneity of the regional workforce structure. Overall, our results suggest that younger workers boost regional innovations, but this effect partly hinges on the presence of older workers as younger and older workers turn out to be complements in the production of knowledge. With demographic aging mainly increasing the older workforce and shrinking the younger one, our results imply that innovation levels in ageing societies may drop in the future. Moreover, differences in the regional age structure currently explain around a sixth of the innovation gap across German regions. --
    Keywords: regional innovation system,demographic ageing,knowledge production function,regional disparities,age complementarities
    JEL: R12 R23 J11
    Date: 2014
  9. By: Christian Krekel; Marie L. Poprawe
    Abstract: This paper investigates the effect of local crime on well-being in Germany, using data from the German Socio-Economic Panel (SOEP) and a novel data set constructed from official police crime statistics, covering both counties and urban districts for the time period between 1994 and 2012. We find that local area crime has a significantly negative impact on life satisfaction, makes residents worry more frequently, and worry more about crime in Germany. In particular, a 1% increase in the crime frequency ratio results in a 0.043 standard deviation decrease in life satisfaction. This effect is driven almost exclusively by violent crimes, while property crimes and other crimes have no significant impact on well-being.
    Keywords: Crime, well-being, Germany
    Date: 2014
  10. By: World Bank
    Keywords: Urban Transport Urban Development - Transport in Urban Areas Roads and Highways Transport Economics Policy and Planning Banks and Banking Reform Finance and Financial Sector Development Transport
    Date: 2014–05
  11. By: Zhou, Yexin (Stockholm China Economic Research Institute); Chen, Mo; Ye, Jingyi
    Abstract: In Chinese cities, rural migrants on average are less educated and poorer than the urban locals. Migration is costly, especially for those who choose to move to provinces faraway from their hometowns. A larger fraction of the rural migrants are self-employed than that of the urban locals. The social contacts of migrants in the host cities often help them to find jobs or to start businesses. We studied the choice of self-employment of rural migrants in Beijing, using a migrant dataset collected from 2007 to 2012. The result shows that the self-employed rural migrants in Beijing tend to be females, migrating from faraway provinces, with more social contacts, and either having the highest education or the lowest. Education and social capital are positively correlated with earning for both wage-earners and self-employed, with different magnitudes. We use a search model to explain this.
    Keywords: Self-employmen; Rural Migrants; Social Network
    JEL: J61 R23 Z13
    Date: 2014–08–20
  12. By: Bauer, Thomas K. (RWI); Breidenbach, Philipp (RWI); Schmidt, Christoph M. (RWI)
    Abstract: Using the location of baroque opera houses as a natural experiment, Falck et al. (2011) claim to document a positive causal effect of the supply of cultural goods on today's regional distribution of talents. This paper raises serious doubts on the validity of the identification strategy underlying these estimates, though. While we are able to replicate the original results, we proceed to show that the same empirical strategy also assigns positive causal effects to the location of historical brothels and breweries. These estimated effects are similar in size and significance to those of historical opera houses. We document that all these estimates reflect the importance of institutions for long-run economic growth, and that the effect of historical amenities on the contemporary local share of high skilled workers disappears upon controlling for regions' historical importance.
    Keywords: human capital, historical amenities, regional competiveness
    JEL: R11 H42 J24
    Date: 2014–08
  13. By: Li-Gang Liu (Peterson Institute for International Economics)
    Abstract: China's property market has slowed more than expected since the first half of 2014, leading many commentators to believe this could trigger a hard landing of the Chinese economy, even a financial crisis. However, China's nascent property market is experiencing another cyclical turn. The authorities can still use many policy instruments to avoid a major market downturn or collapse. In the short run, the government could simply phase out property curb policies imposed on some 46 largest cities in China and accelerate hukou reform. In the medium term, the government could reintroduce a public housing scheme to take care of low-income household needs. The public housing program could be funded partially by levying a property tax. Meanwhile, the maturity mismatch of the mortgage portfolio in the banking system could also be better managed by allowing banks to issue covered bonds. The authorities could encourage the development of real estate investment trusts to diversify funding sources of developers. This financial instrument will not only reduce the banking industry's exposure to the real estate market but also reduce funding costs for developers to ensure adequate supply of both commercial and residential properties. Therefore, it is premature to compare the Chinese property market now with the Japanese property bubble collapse in the early 1990s or the US housing market collapse in 2008. China's continuing urbanization, available policy options, and the stage of its property market development all suggest that China's property market is experiencing simply another cyclical adjustment. Indeed, the current slowdown could catalyze the phase-out of outdated and irrelevant policies and accelerate necessary institutional developments in China's property market.
    Date: 2014–08
  14. By: Deeken, Tim; Ott, Ingrid
    Abstract: In this article we analyze the interdependent issues of urbanization, growth, and globalization by presenting key empirical facts and relevant underlying economic theories on each. We look more closely, but without providing a detailed formal analysis, at a model by Baldwin and Forslid (2000) that combines a seminal model from the endogenous growth literature (Romer 1990) with one from the new economic geography literature (Krugman 1991). In the analysis the significance of a sophisticated consideration of the concept of integration is pointed out. We investigate the issue of scale, scale economies, and density and the important role integration plays in these considerations as well. We especially argue that future research should more precisely focus on integration as a dynamic concept that does not only affect agglomeration and growth, but which is itself the endogenous outcome of various interdependencies and which complements the institutional settings of the territories that are linked to each other. --
    Keywords: integration,spatial institution,agglomeration,growth
    JEL: O4 R5
    Date: 2014
  15. By: World Bank
    Keywords: Culture and Development - Cultural Policy Urban Development - City Development Strategies Culture and Development - Culture in Sustainable Development Accommodation and Tourism Industry Cultural Heritage and Preservation Industry
    Date: 2013–07
  16. By: Mercedes Delgado; Michael E. Porter; Scott Stern
    Abstract: Clusters are geographic concentrations of industries related by knowledge, skills, inputs, demand, and/or other linkages. A growing body of empirical literature has shown the positive impact of clusters on regional and industry performance, including job creation, patenting, and new business formation. There is an increasing need for cluster-based data to support research, facilitate comparisons of clusters across regions, and support policymakers and practitioners in defining regional strategies. This paper develops a novel clustering algorithm that systematically generates and assesses sets of cluster definitions (i.e., groups of closely related industries). We implement the algorithm using 2009 data for U.S. industries (6-digit NAICS), and propose a new set of benchmark cluster definitions that incorporates measures of inter-industry linkages based on co-location patterns, input-output links, and similarities in labor occupations. We also illustrate the algorithm’s ability to compare alternative sets of cluster definitions by evaluating our new set against existing sets in the literature. We find that our proposed set outperforms other methods in capturing a wide range of inter-industry linkages, including grouping industries within the same 3-digit NAICS.
    JEL: R0 R1
    Date: 2014–08
  17. By: Belton, Willie (Georgia Institute of Technology); Huq, Yameen (Georgia Institute of Technology); Uwaifo Oyelere, Ruth (Emory University)
    Abstract: In this paper we explore the relationship between ethnic fractionalization and social capital. First, we test for time differences in the impact of ethnic fractionalization on social capital using U.S. data from 1990, 1997 and 2005. Subsequently we examine the data for evidence of the conflict, contact and hunker-down theories espoused by Putman in explaining what happens over time when individuals interact with those of differing ethnicities. We find no evidence of heterogeneity in the impact of ethnic fractionalization on social capital over time. In addition we find evidence of the conflict theory and no evidence of hunker-down or contact theories. Our results suggest that as communities become more diverse, there is a tendency for social capital to decline.
    Keywords: ethnic fractionalization, social capital, trust, diversity, social networks
    JEL: D71 Z10 J10 J19
    Date: 2014–08
  18. By: Jianjun Miao; Pengfei Wang; Tao Zha
    Abstract: In the U.S. economy over the past twenty five years, house prices exhibit fluctuations considerably larger than house rents and these large fluctuations tend to move together with business cycles. We build a simple theoretical model to characterize these observations by showing the tight connection between price-rent fluctuation and the liquidity constraint faced by productive firms. After developing economic intuition for this result, we estimate a medium-scale dynamic general equilibrium model to assess the empirical importance of the role the price-rent fluctuation plays in the business cycle. According to our estimation, a shock that drives most of the price-rent fluctuation explains $30% of output fluctuation over a six-year horizon.
    JEL: E22 E32 E44
    Date: 2014–08
  19. By: Pär Holmberg; Andy Philpott
    Abstract: Transport constraints limit competition and arbitrageurs' possibilities of exploiting price differences between commodities in neighbouring markets. We analyze a transportation network where oligopoly producers compete with supply functions under uncertain demand, as in wholesale electricity markets. For symmetric networks with a radial structure, we show that existence of symmetric supply function equilibria (SFE) is ensured if demand shocks are sufficiently evenly distributed. We can explicitly solve for them for uniform multi-dimensional nodal demand shocks.
    Keywords: Spatial competition, Multi-unit auction, Supply Function Equilibrium, Trading network, Transmission network, Wholesale electricity markets
    JEL: D43 D44 C72 L91
    Date: 2014–08–04
  20. By: Berno Buechel (University of Hamburg); Nils Roehl (University of Paderborn)
    Abstract: In the framework of spatial competition, two or more players strategically choose a location in order to attract consumers. It is assumed standardly that consumers with the same favorite location fully agree on the ranking of all possible locations. To investigate the necessity of this questionable and restrictive assumption, we model heterogeneity in consumers' distance perceptions by individual edge lengths of a given graph. A profile of location choices is called a ``robust equilibrium'' if it is a Nash equilibrium in several games which differ only by the consumers' perceptions of distances. For a finite number of players and any distribution of consumers, we provide a full characterization of all robust equilibria and derive structural conditions for their existence. Furthermore, we discuss whether the classical observations of minimal differentiation and inefficiency are robust phenomena. Thereby, we find strong support for an old conjecture that in equilibrium firms form local clusters.
    Keywords: spatial competition, Hotelling-Downs, networks, graphs, Nash equilibrium, median, minimal differentiation
    JEL: C72 D49 P16 D43
    Date: 2013–02
  21. By: Crespo, Nuno; Fontoura, M. Paula; Simoes, Nadia
    Abstract: Proximity to the markets is a key determinant of the location of firms because distance still matters, as recently reported in the literature. Based on an adapted version of the most standard centrality index we propose a decomposition method that allows isolating the influence of: (i) internal and external factors; (ii) economic and geographical aspects. In order to illustrate our methodology we consider data for 171 countries. This empirical work leads to the conclusion that the centrality level of the countries derives from different sources, therefore requiring different policy interventions in order to improve it.
    Keywords: centrality, peripherality, economic geography, distance
    JEL: F14 R30
    Date: 2014–08
  22. By: Brenton, Paul; Portugal-Perez, Alberto; Regolo, Julie
    Abstract: Market integration is key to ensuring sufficient and stable food supplies. This paper assesses the impediments to market integration in Central and Eastern Africa for three food staples: maize, rice, and sorghum. The paper uses a large database on monthly consumer prices for 150 towns in 13 African countries and detailed data on the length and quality of roads linking the towns. The analysis finds a substantial effect of distance and share of paved road on the level of market integration, as measured by relative prices. Furthermore, the paper evaluates the additional domestic and cross-border impediments to market integration in the region and represents them on a regional map. The analysis finds heterogeneous levels of domestic market integration across countries and significant"border effects"for the majority of contiguous countries in the sample, which reveal that markets are more integrated within than between countries. Countries that are members of the same regional trade agreement have substantially"thinner"borders with other members. Finally, the analysis shows that countries with less integrated domestic markets and"thicker"borders with their neighbors also have a higher prevalence of food insufficiency. These findings support policy efforts in tackling domestic and border impediments to transactions such as reforming customs, simplifying nontariff measures, addressing corruption, improving the quality of roads, and deepening regional trade agreements.
    Keywords: Markets and Market Access,Transport Economics Policy&Planning,Access to Markets,Food&Beverage Industry,Debt Markets
    Date: 2014–08–01
  23. By: Kent M. Hymel (Department of Economics, California State University at Northridge); Kenneth Small (Department of Economics, University of California-Irvine)
    Abstract: Previous research suggests that the elasticity of light-duty motor vehicle travel with respect to fuel cost, known as the “rebound effect,†is modest in size and probably declined in magnitude between the 1960s and the late 1990s. However, turmoil in energy markets during the early 2000s has raised new questions about the stability of this elasticity. Using panel data on U.S. states, we revisit the simultaneous-equations methodology of Small and Van Dender (2007) and Hymel et al. (2010) to see whether structural parameters have changed. Using data through 2009, we confirm the earlier finding of a rebound effect that declines in magnitude with income, but we also find an upward shift in its magnitude of about 0.025 during the years 2003-2009. In addition, we find that the rebound effect is much greater in magnitude in years when gasoline prices are rising than when they are falling. It is also greater during times of media attention and price volatility, which explains about half the upward shift just mentioned.
    Keywords: Rebound effect; VMT elasticity; Gasoline demand; Asymmetric response
    JEL: Q41 R41 L91
    Date: 2014–08
  24. By: Leyden, Dennis (University of North Carolina at Greensboro, Department of Economics); Link, Albert (University of North Carolina at Greensboro, Department of Economics)
    Abstract: This paper models the entrepreneurial process as both creation and discovery composed of an iterative two-step process where entrepreneurs create social networks based on subjective expectations about the future effectiveness of those networks, and then choose the innovation to pursue and map a search process to discover how to bring the innovation to fruition. Critical to this process is the mix of strong ties and weak ties that make up social networks and the ability to carry forward the social capital embodied in such networks. The tendency of long-existing entrepreneurs to be less innovative can be explained using this model.
    Keywords: entrepreneurship; social networks; innovation; technology
    JEL: L26 M13 O31 O33
    Date: 2014–08–14
  25. By: Bergantino, Angela Stefania; Capozza, Claudia; De Carlo, Angela
    Date: 2013
  26. By: Philippe Delacote (Laboratoire d'Economie Forestière, INRA - AgroParisTech; Climate Economic Chair); Arnaud Dragicevic (Laboratoire d'Economie Forestière, INRA - AgroParisTech; Chaire Forêts pour Demain, Agro ParisTech–Office National des Forêts); Serge Garcia (Laboratoire d'Economie Forestière, INRA - AgroParisTech)
    Abstract: Public authorities (often local) frequently mandate public or private agencies to manage their natural resources. Contrary to the agency, which is an expert in resource management, public authorities usually do not know the sustainable harvest level. In this paper, we model the contractual relationship between a principal, who owns the resource, and an agent, who holds private information on its sustainable harvest level, and look for the Pareto-optimal allocations. The agent can strategically use his private information to harvest outside the sustainability interval. We consider the case where the agent simultaneously interacts with several principals. From a simple dynamic spatial game, we show how the existence of multiple interacting principals with diverse qualities on information can help the least wellinformed principals to reduce the information rent and lead to the Pareto-optimal allocation.
    Keywords: Resource management, Sustainable harvesting, Principal-agent model, Spatial dynamics
    JEL: D82 Q20
    Date: 2014–10
  27. By: Christoph Basten; Catherine Koch
    Abstract: We examine mortgage pricing before and after Switzerland was the first country to activate the Counter-Cyclical Capital Buffer of Basel III. Observing multiple mortgage offers per request, we obtain three core findings. First, capitalconstrained and mortgage-specialized banks raise their rates relatively more. Second, risk-weighting schemes supposed to discriminate against more risky borrowers do not amplify the effect of higher capital requirements. Third, CCB-subjected banks and CCB-exempt insurers raise mortgage rates, but insurers raise rates by on average 8.8 bp more. To conclude, lenders welcome the opportunity to increase mortgage rates, but stricter capital requirements do not discourage banks from risky mortgage lending.
    Keywords: Bank lending, mortgage market
    JEL: G21 E51
    Date: 2014–07
  28. By: Anthony T. Flegg (University of the West of England, Bristol); Leonardo J. Mastronardi (Universidad Argentina de la Empresa, Buenos Aires, Argentina); Carlos A. Romero (Universidad Argentina de la Empresa, Buenos Aires, Argentina)
    Abstract: This paper uses survey-based data for the Argentinian province of C¨®rdoba to carry out an empirical test of the performance of the FLQ formula for regionalizing national inputoutput tables. Particular attention is paid to the problem of choosing a value for the unknown parameter ¦Ä in this formula. Two alternative approaches suggested in the literature are evaluated. A statistical test is also performed of differences between regional and national technology, and Round¡¯s ¡®fabrication¡¯ formula is applied in an effort to make suitable adjustments for such differences. However, the FLQ formula, without any fabrication adjustments, is found to give the best overall results of the non-survey methods considered in the paper.
    Keywords: Regional inputoutput tables; Argentina; Location quotients; FLQ; Fabrication effects
    Date: 2014–01–06
  29. By: Brian Blankespoor
    Keywords: Macroeconomics and Economic Growth - Markets and Market Access Transport Economics Policy and Planning Macroeconomics and Economic Growth - Regional Economic Development Finance and Financial Sector Development - Debt Markets Health, Nutrition and Population - Population Policies Transport
    Date: 2013–04
  30. By: Hartley, Daniel (Federal Reserve Bank of Cleveland); Gallagher, Justin (Federal Reserve Bank of Cleveland)
    Abstract: Little is known about how affected residents are able to cope with the fi nancial shock of a natural disaster. We investigate the impact that flooding from a major US hurricane had on household finance. Spikes in credit card borrowing and overall delinquency rates for the most flooded residents are modest in size and short-lived. Greater flooding results in larger reductions in total debt. Lower debt levels appear to be driven by homeowners using flood insurance to repay their mortgages rather than to rebuild. Debt reductions are larger in census tracts where mortgages were likely to be originated by nonlocal lenders.
    Keywords: Household Finance; Insurance; Natural Disaster.
    JEL: D14 G21 H84 Q54
    Date: 2014–08–12
  31. By: World Bank
    Keywords: Macroeconomics and Economic Growth - Subnational Economic Development Public Sector Economics Urban Development - Municipal Financial Management Public Sector Management and Reform Public and Municipal Finance Finance and Financial Sector Development Public Sector Development
    Date: 2013–09
  32. By: Martin Hoesli; Anjeza Kadilli; Kustrim Reka
    Abstract: We conduct an empirical investigation of the pricing and economic sources of commonality in liquidity in the U.S. REIT market. Taking advantage of the specific characteristics of REITs, we analyze three types of commonality in liquidity: within-asset commonality, cross-asset commonality (with the stock market), and commonality with the underlying property market. We find evidence that the three types of commonality in liquidity are priced in REIT returns but only during bad market conditions. We also find that using a linear approach, rather than a conditional, would have underestimated the role of commonality in liquidity risk. This explains (at least partly) the small impact of commonality on asset prices documented in the extant literature. Finally, our analysis of the determinants of commonality in liquidity favors a demand-side explanation.
    Keywords: Real Estate Securities; REITs; Commonality in Liquidity; Liquidity Risk; Asset Pricing; Threshold Regression; Panel Data
    Date: 2014–05
  33. By: Breinbjerg, Jesper (Department of Business and Economics); Sebald, Alexander (Department of Economics); Østerdal, Lars Peter (Department of Business and Economics)
    Abstract: We consider a class of three-player queuing games where players independently choose when to arrive at a bottleneck facility that serves only one at a time. Players are impatient for service but cannot arrive before the facility opens and they dislike time spent in queue. We derive the equilibrium arrivals under the first-in-first-out (FIFO), last-in-first-out (LIFO), and service-in-random-order (SIRO) queue disciplines and compare these equilibrium predictions to outcomes from a laboratory experiment. LIFO provides higher equilibrium welfare than FIFO and SIRO since the players arrive such that lower congestion is induced. Experimental evidence confirms that employing different queue disciplines indeed affects the strategic behavior of players and thereby the level of congestion. The experimental participants do not, however, behave as prescribed by the equilibrium predictions. They obtain significantly higher welfare than prescribed by equilibrium under all queue disciplines. Our results moreover suggest that people perceive LIFO as the most unfair of the three disciplines although the theoretical results suggest that it is welfare optimal.
    Keywords: Queue disciplines; congestion; equilibrium; experiments; fairness
    JEL: C72 D62 D63 R41
    Date: 2014–08–13

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