nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2015‒12‒20
thirty-two papers chosen by
Steve Ross
University of Connecticut

  1. Variation across price segments and locations: A comprehensive quantile regression analysis of the Sydney housing market By Sofie R. Waltl
  2. Migration and Housing Price Effects of Place-Based College Scholarships By Timothy J. Bartik; Nathan Sotherland
  3. Government quality and the economic returns of transport infrastructure investment in European regions By Riccardo Crescenzi; Marco Di Cataldo; Andrés Rodríguez-Pose
  4. Managing planned disruptions of mass transit systems By Zoi Christoforou; Etienne Corbille; Nadir Farhi; Fabien Leurent
  5. The Effect of Sharing a Mother Tongue with Peers: Evidence from North Carolina Middle Schools By Thomas Ahn; Christopher Jepsen
  6. Gender Gaps in Early Educational Achievement By Deborah A. Cobb-Clark; Julie Moschion
  7. Agglomeration and innovation By Carlino, Gerald; Kerr, William R.
  8. The electoral migration cycle. By Revelli, Federico
  9. Heterogenous Taxes and Limited Risk Sharing: Evidence from Municipal Bonds By Babina, Tania; Jotikasthira, Chotibhak; Lundblad, Christian T; Ramadorai, Tarun
  10. The Effect of Pre-School Education on Academic Achievement in Indonesia By Mohamad Fahmi; Putri Grace Ninibeth Jewelery
  11. Networks and the macroeconomy: an empirical exploration By Acemoglu, Daron; Akcigit , Ufuk; Kerr, William R
  12. Bad Company: Reconciling Negative Peer Effects in College Achievement By Brady, Ryan; Insler, Michael; Rahman, Ahmed
  13. Let's stay in touch - evidence on the role of social learning in local tax interactions By Blesse, Sebastian; Martin, Thorsten
  14. Ethnic diversity makes me sick! An examination of ethnic diversity’s effect on health outcomes By Awaworyi Churchill, Sefa; Ocloo, Janet Exornam; Siawor-Robertson, Diana
  15. Dynamic Connectedness of UK Regional Property Prices By Antonakakis, Nikolaos; Chatziantoniou, Ioannis; Floros, Christos
  16. Cantonal Convergence in Ecuador: A Spatial Econometric Perspective By Mendieta Muñoz, Rodrigo; Pontarollo, Nicola
  17. The Behavioral Impacts of Poverty Tax Relief: Salience or Framing? By John Yinger; Phuong Nguyen-Hoang
  18. The Impact of Extreme Weather Events on Education By Valeria Groppo; Kati Krähnert
  19. The Effect of Urban Empowerment Zones on Fertility and Health: A Case Study of Chicago, New York City, and Philadelphia By Daniel Grossman
  20. The Value of a Healthy Home: Lead Paint Remediation and Housing Values By Billings, Stephen B.; Schnepel, Kevin
  21. Evolution and Determinants of Rent Burdens in Germany By Teresa Backhaus; Kathrin Gebers; Carsten Schröder
  22. Mortgage risk and the yield curve By Aytek Malkhozov; Philippe Mueller; Andrea Vedolin; Gyuri Venter
  23. House prices and job losses By Pinter, Gabor
  24. Major infrastructure changes occurring in Polish host cities in connection with the staging of Euro 2012 By Ferrir, Richard
  25. Class Size: Does It Matter for Student Achievement? By Christopher Jepsen
  26. A Simulation Analysis of the Longer-Term Effects of Immigration on Per Capita Income in an Aging Population By Frank T. Denton; Byron G. Spencer
  27. Two-way models for gravity By Koen Jochmans
  28. Adolescents' Perceptions of Opportunities in the U.S. South: Postracial Mirage or Reality in the New Black Mecca? By Jerome E. Morris; Sara E. Woodruff
  29. Homeownership of immigrants in France: selection effects related to international migration flows By Gobillon, Laurent; Solignac, Matthieu
  30. Racial and Ethnic Disparities in Parent-Reported Diagnosis of ADHD: National Survey of Children’s Health (2003, 2007, and 2011) By Kevin P. Collins; Sean D. Cleary
  31. An Empirical Estimation of Asia's Untapped Regional Integration Potential Using Data Envelopment Analysis By Naeher, Dominik
  32. Economic Freedom, Race, and Health Disparities: Evidence from US States By Joshua C. Hall; Brad R. Humphreys; Jane E. Ruseski

  1. By: Sofie R. Waltl (University of Graz)
    Abstract: Standard house price indexes measure average movements of average houses in average locations belonging to an average price segment. Such procedures obscure a huge variety of price development patterns in housing markets across price segments and geographical areas. Unfavourable price developments may be offset by opposing movements in other sub-markets creating a false sense of security. This paper uses quantile regression techniques to reveal this kind of variation. Two novel hedonic approaches based on the time-dummy and imputation method respectively are developed to compute quality-adjusted price segment- and location-specific house price indexes. The proposed methods are applied to house sales in Sydney, Australia, between 2001 and 2014. The analysis finds a rich set of variation across sub-markets over time. Whereas the price peak in 2004 was driven by sharply increasing prices of suburban, low-priced houses, the peak in 2010 can be mainly attributed to rising prices in the inner city. From 2012 onwards, the entire market experiences large increases which are strongest in the lowest price segment. The findings clearly suggest that standard house price indexes are not enough to assess the state of a housing market and actually obscure a lot of variation within a market. The joint analysis of movements in price segments and geographical areas allows deep insights which are likewise of interest for policy makers, home owners, urban planners and investors.
    Keywords: House price indexes; Hedonic indexes; Time-dummy method; Imputation method; Quantile regression
    JEL: C14 C21 C43 R31
    Date: 2015–12
  2. By: Timothy J. Bartik (W.E. Upjohn Institute for Employment Research); Nathan Sotherland (W.E. Upjohn Institute for Employment Research)
    Abstract: Place-based college scholarships, such as the Kalamazoo Promise, provide students who live in a particular place, and/or who attend a particular school district, with generous college scholarships. An important potential benefit from such "Promise programs" is their short-term effects on local economic development. Generous Promise scholarships provide an incentive for families to locate in a particular place, which may change migration patterns, and potentially boost local employment and housing prices. Using data from the American Community Survey, this paper estimates the average effects of eight relatively generous Promise programs on migration rates and housing prices in their local labor market. The paper finds evidence that Promise programs lead to significantly reduced out-migration rates for at least three years after a Promise program is announced. These reductions in out-migration rates are larger for households with children, and are also larger when we focus on smaller areas around the Promise-eligible zone rather than the entire local labor market. These out-migration effects are large, implying that Promise programs lead to a 1.7 percent increase in overall population of the local labor market.
    Keywords: College scholarships, Kalamazoo Promise, local economic development, migration
    JEL: I22 I25 I28 J61 R23
    Date: 2015–11
  3. By: Riccardo Crescenzi; Marco Di Cataldo; Andrés Rodríguez-Pose
    Abstract: Transport infrastructure investment is a cornerstone of growth-promoting strategies. However, in the case of Europe the relevant literature is increasingly failing to find a clear link between infrastructure investment and economic performance. This may be a consequence of overlooking the role of government institutions. This paper assesses the connection between regional quality of government and the returns of different types of road infrastructure in EU regions during the period between 1995 and 2009. The results unveil a strong influence of regional quality of government on the economic returns of transport infrastructure. In weak institutional contexts, investments in motorways – the preferred option by local governments – yield significantly lower returns than the more humble but possibly more efficient secondary road. Government institutions also affect the returns of transport maintenance investment.
    Keywords: Transport infrastructure, Public capital investment, Economic growth, Institutions, Government quality, Regions, Europe
    JEL: R11 R40 R58
    Date: 2015–11
  4. By: Zoi Christoforou (LVMT - Laboratoire Ville, Mobilité, Transport - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - UPEM - Université Paris-Est Marne-la-Vallée - École des Ponts ParisTech (ENPC) - PRES Université Paris-Est); Etienne Corbille (ENPC - Ecole des Ponts ParisTech - École des Ponts ParisTech (ENPC)); Nadir Farhi (IFSTTAR/COSYS/GRETTIA - Génie des Réseaux de Transport Terrestres et Informatique Avancée - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - PRES Université Paris-Est); Fabien Leurent (LVMT - Laboratoire Ville, Mobilité, Transport - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - UPEM - Université Paris-Est Marne-la-Vallée - École des Ponts ParisTech (ENPC) - PRES Université Paris-Est)
    Abstract: Unplanned disruptions of rail transit networks have been extensively studied. Planned disruptions for works are essentially different mainly due to their longer duration that allows passengers to build alternative route choice strategies. The literature on this topic remains scarce. We propose a novel methodology that enables operators to evaluate different disruption management schemes and to obtain explicit estimations of travel times, passenger comfort flows, and levels of service. Statistical tools are used for the evaluation of the different strategies. We illustrate the methodology through a large-scale application to a real line disruption in Paris, France. The disruption took place in July 2015 and was due to network maintenance works. It affected the major suburban railway line RER-A which counts over 1,000,000 trips on a typical working day. Results indicate that the disruption would have significantly increased the generalized cost (GC) of passengers if no action was taken. The operator's disruption management scheme included bus bridging and frequency increase on alternative routes. The evaluation of this plan shows that it restored the average GC over the whole network. Passengers initially using the disrupted line experienced increased GC by using alternative longer routes. Passengers initially using those alternative routes experienced lower GC thanks to the frequency increase. Finally, capacity problems are observed on the buses assuring the bridge of the disrupted link.
    Date: 2016–01–10
  5. By: Thomas Ahn; Christopher Jepsen
    Abstract: This paper provides the first analysis of the relationship between the language mix of Limited English Proficient (LEP) peers and student achievement, using detailed panel data from 2006 to 2012. Percent LEP has a negative association with mathematics and reading test scores, more so for non-LEP students than for LEP students. The overall language mix of LEP students has little if any discernable relationship with achievement. For LEP students, having more LEP peers speak their mother tongue is positively associated with reading achievement and negatively associated with mathematics achievement.
    Keywords: Limited English proficiency; Peer effects; Student achievement
    JEL: I21 I28 J15
    Date: 2015
  6. By: Deborah A. Cobb-Clark (Melbourne Institute of Applied Economic and Social Research, University of Melbourne); Julie Moschion (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne; and Brotherhood of St Laurence)
    Abstract: This paper analyzes the source of the gender gap in third grade numeracy and reading. We adopt an Oaxaca-Blinder approach and decompose the gender gap in educational achievement into endowment and response components. Our estimation relies on unusually rich panel data from the Longitudinal Survey of Australian Children in which information on child development reported by parents and teachers is linked to each child’s results on a national, standardized achievement test. We find that girls in low- and middle-SES families have an advantage in reading, while boys in highSES families have an advantage in numeracy. Girls score higher on their third grade reading tests in large part because they were more ready for school at age four and had better teacher-assessed literacy skills in kindergarten. Boys’ advantage in numeracy occurs because they achieve higher numeracy test scores than girls with the same education-related characteristics. Classification-J16, I21, I24
    Keywords: Gender gaps, educational achievement, education, Australia
    Date: 2015–11
  7. By: Carlino, Gerald (Federal Reserve Bank of Philadelphia); Kerr, William R. (Harvard University, Bank of Finland, and NBER)
    Abstract: This paper reviews academic research on the connections between agglomeration and innovation. We first describe the conceptual distinctions between invention and innovation. We then discuss how these factors are frequently measured in the data and note some resulting empirical regularities. Innovative activity tends to be more concentrated than industrial activity, and we discuss important findings from the literature about why this is so. We highlight the traits of cities (e.g., size, industrial diversity) that theoretical and empirical work link to innovation, and we discuss factors that help sustain these features (e.g., the localization of entrepreneurial finance).
    Keywords: agglomeration; clusters; innovation; invention; entrepreneurship
    JEL: J20 J60 L10 L20 L60 O30 R10 R30
    Date: 2015–12–10
  8. By: Revelli, Federico (University of Turin)
    Abstract: This paper puts forward a new test of Tiebout sorting that relies on the exogenous time structure of recurrent local elections. The test is based on the idea that the policy uncertainty that is associated with periodic competitive elections should be expected to induce delay of migration, thus generating an electoral migration cycle of relatively low rates of migration before the elections, followed by relatively high rates of migration when electoral uncertainty is resolved. Conversely, interjurisdictional migration flows that are unrelated to local public service provision motives ought to be orthogonal to the timing of local elections. Empirically, I study sorting patterns across several thousands of peninsular Italy's municipalities through the increasingly turbulent 2002-2013 decade. I find evidence of an electoral migration cycle in the sense that the timing of internal migration flows is systematically influenced by the schedule of recurrent mayoral elections.
    Date: 2015–12
  9. By: Babina, Tania; Jotikasthira, Chotibhak; Lundblad, Christian T; Ramadorai, Tarun
    Abstract: Heterogeneity in the taxation of asset returns can create ownership clienteles. Using a simple model, we demonstrate that an important consequence of tax-policy-induced ownership segmentation is to limit risk-sharing, creating regions of the aggregate demand curve for the asset that are "downward-sloping.'' As a result, the constraints of the ownership clientele impact the asset price response to variations in asset supply and demand, and make the asset's price more sensitive to movements in idiosyncratic risk. We test these predictions on U.S. municipal bonds, where cross-state variation in state tax privilege policies results in different levels of home-state-biased ownership of local municipal bonds. In states with high tax-induced ownership segmentation, we find greater susceptibility of municipal bond yields to demand and supply variation, heightened sensitivity of muni yields to local political uncertainty, and greater difficulties in raising capital for public projects.
    Keywords: clientele effects; fire sales; government debt; municipal bonds; ownership segmentation; public finance; Taxes
    JEL: F30 G12 G15 H63
    Date: 2015–12
  10. By: Mohamad Fahmi (Department of Economics, Padjadjaran University); Putri Grace Ninibeth Jewelery (Department of Economics, Padjadjaran University)
    Abstract: This study analyzed the effect of Early Childhood Education on Academic Achievement in Indonesia. This study used kindergarten education and National Test Score of Indonesian Language and Math as the main subject of research. This study obtained the sample from Indonesian Family Life Survey (IFLS) 2007. The econometric method, that this study used, was Ordinary Least Square (OLS). This study presented the estimation based on school level, primary and secondary. This study founded that kindergarten education (formal Early Childhood Education) affected National Test Score of Indonesian Language and Math significantly if other factors did not add in the regression. This finding caused the effect of kindergarten education to National Test Score became not valid or biased. The problems like high cost of early childhood education and lack of teacher could be the reason why the effect of early childhood education was not maximal. This problems can be the the next subject of research about early childhood education.
    Keywords: Early Childhood Education, Academic Achievement, Indonesia, IFLS
    JEL: I21 O15
    Date: 2015–12
  11. By: Acemoglu, Daron (Massachusetts Institute of Technology); Akcigit , Ufuk (University of Chicago); Kerr, William R (Harvard University)
    Abstract: The propagation of macroeconomic shocks through input-output and geographic networks can be a powerful driver of macroeconomic fluctuations. We first exposit that in the presence of Cobb-Douglas production functions and consumer preferences, there is a specific pattern of economic transmission whereby demand-side shocks propagate upstream (to input-supplying industries) and supply-side shocks propagate downstream (to customer industries) and that there is a tight relationship between the direct impact of a shock and the magnitudes of the downstream and the upstream indirect effects. We then investigate the short-run propagation of four different types of industry-level shocks: two demand-side ones (the exogenous component of the variation in industry imports from China and changes in federal spending) and two supply-side ones (TFP shocks and variation in knowledge/ideas coming from foreign patenting). In each case, we find substantial propagation of these shocks through the input-output network, with a pattern broadly consistent with theory. Quantitatively, the network-based propagation is larger than the direct effects of the shocks. We also show quantitatively large effects from the geographic network, capturing the fact that the local propagation of a shock to an industry will fall more heavily on other industries that tend to collocate with it across local markets. Our results suggest that the transmission of various different types of shocks through economic networks and industry interlinkages could have first-order implications for the macroeconomy.
    Keywords: economic fluctuations; geographic collocation; input-output linkages; networks; propagation; shocks
    JEL: E32
    Date: 2015–12–09
  12. By: Brady, Ryan; Insler, Michael; Rahman, Ahmed
    Abstract: Existing peer effects studies produce contradictory findings, including positive, negative, large, and small effects, despite similar contexts. We reconcile these results using U.S. Naval Academy data covering a 22-year history of the random assignment of students to peer groups. Coupled with students' limited discretion over freshman-year courses, our setting affords an opportunity to better understand peer effects in different social networks. We find negative effects at the broader "company" level (students' social and residential group) and positive effects at the narrower course-company level. We suggest that peer spillovers change direction because of differences in the underlying mechanism of peer influence.
    Keywords: Peer effects, social network formation, academic achievement, homophily
    JEL: D85 I21 I23 J24
    Date: 2015–11
  13. By: Blesse, Sebastian; Martin, Thorsten
    Abstract: This paper exploits detailed information on local political and socioeconomic networks and a reform of local fiscal equalization in North Rhine-Westphalia (NRW) to identify the role of learning in local tax rate interactions. Using this policy change in spatial lag IV regressions, we find that institutions like counties and jointly used administrations yield significant positive tax interactions whereas geographical neighbors do not react to each other. Common local media trigger tax policy interactions as well. Short-lived reform effects support our findings that social learning within certain networks intensifies tax rate interactions via coordination of local decision makers.
    Keywords: Tax mimicking,Local business tax,Social learning,Institutions,Tax competition,Fiscal equalization schemes
    JEL: H20 H71 H77
    Date: 2015
  14. By: Awaworyi Churchill, Sefa; Ocloo, Janet Exornam; Siawor-Robertson, Diana
    Abstract: This study hypothesizes a relationship between ethnic diversity and health outcomes. We explore the effects of ethnic and linguistic heterogeneity (measured by indices of ethnic and linguistic fractionalization) on 30 health outcome variables in a cross-section of 87 countries. We explore outcomes related to four major categories of health: 1) immunization rates, 2) prevalence of diseases, 3) life expectancy and mortality rates, and 4) health related infrastructure and staff. Across all dimensions examined, evidence suggests that higher heterogeneity is bad for health. We explore several potential mechanisms which could explain the observed negative effects of ethnic and linguistic diversity on health.
    Keywords: health,Fractionalization,linguistic diversity,ethnic diversity
    Date: 2015–12–07
  15. By: Antonakakis, Nikolaos; Chatziantoniou, Ioannis; Floros, Christos
    Abstract: In this study we examine the network topology of UK regional property prices using a dynamic measure of connectedness developed by Diebold and Yilmaz (2014) over the period 1973Q4-2014Q4. Our findings suggest that the transmission of inter-regional property returns shocks is an important source of regional property return fluctuations in the UK. The UK regions of South West, Outer South East, East Midlands and Northern Ireland seem to be the dominant transmitters of property returns shocks throughout our sample period. Moreover, the results indicate that regional housing markets in the UK are highly interconnected and extreme-economic-event dependent. In addition, the dynamic framework of our analysis provides further insights regarding the ripple effect, while, emphasis is also placed on the fact that London may also act as a net recipient of shocks from other regions. Findings are important for policy makers purporting to alleviate regional imbalances and achieve balanced growth, as well as, investors who formulate portfolio diversification strategies. Our results exhibit robustness to a series of tests.
    Keywords: UK Housing Market Connectedness Vector Autoregression Variance Decomposition Ripple Effect
    JEL: C32 G10 G20
    Date: 2015–12–17
  16. By: Mendieta Muñoz, Rodrigo; Pontarollo, Nicola
    Abstract: The paper analyses the convergence process of Ecuadorian cantons during the period 2007-2012 accounting for the role of spatial spillovers through spatial econometric tool. The advantage of this technique is to provide a reliable estimation because it takes into account the spatial interaction in the territory. In addition, it allows identifying clusters of cantons characterised by similar spatial patterns that can be interpreted as convergence clubs because they represent areas with similar initial conditions in the “basin of attraction” that, according to economic theory, converge to a common steady state equilibrium. The results highlight that a convergence process is present, but it involves the cluster of most developed cantons. This opens various policy implications related to i) the capacity of cantons to take advantage from the positive dynamics of neighbours, ii) the persistence of development in some circumscribed areas, and iii) the spatial unbalanced development.
    Keywords: Subnational convergence, Spatial Econometrics, Convergence Clubs.
    JEL: C21 O47 R11
    Date: 2015–12–16
  17. By: John Yinger (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244); Phuong Nguyen-Hoang (School of Urban and Regional Planning, University of Iowa, Iowa City, IA 52242)
    Abstract: New York State’s School Tax Relief Program, STAR, provides state-funded exemptions from school property taxes. From 2006-07 to 2008-09, these exemptions were supplemented with rebates, which arrived as a check in the mail. The purpose of this paper is to determine whether these two algebraically equivalent but administratively distinct policies of tax relief led to different behavioral responses. Drawing on behavioral economics, we explore the impact of STAR on the price elasticity of demand for school quality based on the concepts of salience and framing. Our main results are that the behavioral impact of the STAR provisions are larger (1) when they are most salient and (2) when they are framed as a property tax reduction instead of as unlabeled income. We also show that salience and framing can help to explain flypaper effects linked to state educational aid and to the resources that are freed up by a decline in the price of education.
    Keywords: Property Tax Relief; Demand for Education; Salience; Framing; Flypaper Effect
    JEL: H31 H71 H75
    Date: 2015–12
  18. By: Valeria Groppo; Kati Krähnert
    Abstract: This paper analyzes the short- and long-term impact of extreme weather events on educational outcomes in Mongolia. Our focus is on two extremely severe winters that caused mass livestock mortality. We use household panel data with comprehensive retrospective information on households’ historic experience with weather shocks. Exposure to the weather shock significantly reduces the likelihood of being enrolled in mandatory school two to three years after the shock. Similarly, it significantly reduces the probability of completing basic education ten to eleven years after the shock. Both effects are driven by children from herding households. Results are robust to measuring shock intensity with district-level livestock mortality and climate data as well as household-level livestock losses. Exposure to weather shocks during preschool age (as opposed to exposure during primary and secondary school age) yields the worst consequences for educational attainment. Overall, the evidence points toward income effects as the channel through which the shock impacts education.
    Keywords: human capital accumulation, weather shocks, Mongolia
    JEL: I25 Q54 O12
    Date: 2015
  19. By: Daniel Grossman (West Virginia University, Department of Economics)
    Abstract: I estimate the health impacts of the Empowerment Zone (EZ) program - a federal program that gave sizeable grants and tax breaks to certain high-poverty census tracts in selected cities. Using difference-in-differences methods, I find that the EZ program decreased fertility rates by 11 percent and improved birth outcomes. This increase in infant health was not driven by changes in the composition of births. Synthetic control methods and estimates using an alternate control group support these findings. Recent research on the later-life impacts of low birth weight suggest that the health impacts of this program may have substantial long-term benefits.
    Keywords: urban empowerment zones, fertility, health, chicago, new york, philadelphia
    Date: 2015–10
  20. By: Billings, Stephen B.; Schnepel, Kevin
    Abstract: The presence of lead paint significantly impairs cognitive and behavioral development, yet little is known about how this residence-specific environmental health risk affects property values. In this paper, we estimate the benefits of lead-paint remediation on housing prices. Using data on all homes that applied to a HUD-funded program in Charlotte, North Carolina, we adopt a difference-in-differences estimator that compares values among remediated properties with those for which an inspection does not identify a lead paint hazard. Results indicate that remediation has large benefits—a typical investment of $7,291 is associated with a capitalized benefit of $20,323 as well as a reduction in residential turnover.
    Keywords: lead exposure; lead paint; lead hazard control, environmental quality; urban environmental health; difference-in-differences
    Date: 2015–12
  21. By: Teresa Backhaus; Kathrin Gebers; Carsten Schröder
    Abstract: The affordability of housing has become a major topic of discussion in Germany among both social scientists and the public at large. Using data from the German Socio-Economic Panel (SOEP), we provide rent-income ratios over more than two decades and show how they change with households’ disposable needs-adjusted income. We find a substantial increase in the ratios over the 1990s. In the decade that followed, they remained relatively constant. Moreover we find that rent-income ratios decrease in income at a decreasing rate, suggesting that rising square-meter prices put particular financial pressure on low-income households. Our analysis also indicates economies of scale from shared living space for multi-member households.
    Keywords: home, amenities, and contributions of private households; income, taxes, and social security
    JEL: D1 D3 D6 I3 O18
    Date: 2015
  22. By: Aytek Malkhozov; Philippe Mueller; Andrea Vedolin; Gyuri Venter
    Abstract: We study the feedback from the risk of outstanding mortgage-backed securities (MBS) on the level and volatility of interest rates. We incorporate the supply shocks resulting from changes in MBS duration into a parsimonious equilibrium dynamic term structure model and derive three predictions that are strongly supported in the data: (i) MBS duration positively predicts nominal and real excess bond returns, especially for longer maturities; (ii) the predictive power of MBS duration is transitory in nature; and (iii) MBS convexity increases interest rate volatility, and this effect has a hump-shaped term structure.
    Keywords: Term structure of interest rates, MBS, supply factor
    Date: 2015–12
  23. By: Pinter, Gabor (Bank of England)
    Abstract: What explains the strong comovement between house prices and job losses over the UK business cycle? To study this question, I build a general equilibrium model with collateral constraints, endogenous job separation and housing shocks, and confront it with macroeconomic data via Bayesian methods. The results suggest that shocks to house prices (i) explain about 10-20% of output fluctuations and about 20%–30% of fluctuations in unemployment and job separation rates via the collateral channel, and (ii) were a major cause in triggering the 1990 and 2008 recessions in the United Kingdom.
    Keywords: Business cycle; house prices; financial frictions; labour market frictions.
    JEL: E21 E27 E32 E44
    Date: 2015–12–11
  24. By: Ferrir, Richard
    Abstract: In this study, an attempt was made to estimate the impact of the organisation of UEFA European Championships on the host cities: Gdańsk, Poznań, Warsaw and Wrocław. The adopted list of infrastructural undertakings executed as part of Euro 2012 preparations included 219 projects divided according to the urgency criterion into key, important and other projects. Analysis of project completion revealed that not all tasks had been executed as planned before the beginning of the event. Predictably, the key projects were found to have been completed in the greatest percentage of the cases (76%), while other projects were characterised by the lowest percentage of completion (51%). The degree of completion also varied between the individual cities. Gdańsk turned out to be the most efficient city with 74% of all projects completed, while Warsaw was at the bottom of the ranking with 63% of completed projects.
    Keywords: Euro 2012
    JEL: H00
    Date: 2015–12–05
  25. By: Christopher Jepsen
    Abstract: Reducing class size is a popular education policy measure with parents, teachers, and policymakers. However, research shows that reducing class size leads to, in most cases, only modest improvements in student achievement. Also, students in early grades appear to gain more from smaller classes than older students. Despite extensive research on class size, much about this relationship is still unknown. Policymakers should be aware that reducing class sizes can be costly, is no guarantee of improved achievement, and is only one of many possible reforms.
    Keywords: Education; Class size; Student achievement
    Date: 2015
  26. By: Frank T. Denton; Byron G. Spencer
    Abstract: Immigration is a possible instrument for offsetting longer-run adverse effects of population aging on per capita income. Our “laboratory” is a fictional country Alpha to which we assign demographic characteristics typical of a country experiencing population aging. Simulations indicate that a very high immigration rate with heavy concentration in younger working ages might be required to keep per capita income from declining. More rapid productivity growth would also offset population aging as would higher rates of labour participation of older people. Longer life expectancy, taken alone, would lower per capita real income, as would higher fertility rates.
    Keywords: immigration, per capita income, population aging, age structure, simulation
    JEL: J10 J11 J18
    Date: 2015–12
  27. By: Koen Jochmans (Département d'économie)
    Abstract: Empirical models for dyadic interactions between n agents often feature agent-specific parameters. Fixed-effect estimators of such models generally have bias of order n−1,which is non-negligible relative to their standard error. Therefore, confidence sets based on the asymptotic distribution have incorrect coverage. This paper looks at models with multiplicative unobservables and fixed effects. We first derive moment conditions that are free of fixed effects. We next use these moment conditions to set up estimators that are n-consistent, asymptotically normally-distributed, and asymptotically unbiased. We provide Monte Carlo evidence for a range of models and we estimate a gravity equation with multilateral resistance terms as an empirical illustration.
    Date: 2015–12
  28. By: Jerome E. Morris; Sara E. Woodruff
    Abstract: The scholarly community has eagerly assessed adults' perspectives on race and opportunity in the “postracial†era. Noticeably absent are studies that probe youths' perceptions of social and educational opportunity within this era, given the relationship between education and upward mobility, and the symbolism embodied in Obama's 2008 election as the first African-American president of the United States.
    Date: 2015–05–30
  29. By: Gobillon, Laurent; Solignac, Matthieu
    Abstract: We investigate the difference in homeownership rates between natives and first-generation immigrants in France, and how this difference evolves over the 1975-1999 period, by using a large longitudinal dataset. We find that the homeownership gap is large and has increased. Entries into the territory have a large negative effect on the evolution of homeownership rates for immigrants. Although entrants have on average better education than people staying in the territory for the entire period (i.e. stayers), they are younger and thus at an earlier stage in the wealth accumulation process. They are also located in large cities, where the homeownership rate is lower, and the returns to their characteristics are lower than those for stayers. Leavers have a positive effect on the evolution of homeownership rates for immigrants because they have a low access to homeownership and they exit the country. But this effect is only one-third that of entrants. For stayers, we show that returns to characteristics change in favor of immigrants, which is consistent with assimilation theories. However, among stayers who access homeownership, immigrants end up in owned dwellings that are of lesser quality than natives.
    Keywords: homeownership; immigrants; longitudinal data
    JEL: J15 R21
    Date: 2015–12
  30. By: Kevin P. Collins; Sean D. Cleary
    Abstract: Economics, family status, non-English language in the home, and neighborhood safety factors differentially impacted diagnosed ADHD across racial/ethnic groups.
    Keywords: Racial Ethnic Disparities, ADHD, Survey , Children's Health
    JEL: I
    Date: 2015–11–30
  31. By: Naeher, Dominik (Goethe University Frankfurt)
    Abstract: This paper uses directed bilateral flow data on multiple dimensions of economic integration to construct a composite index of regional integration outcomes covering 19 regions in various parts of the world. As a first step, the multidimensional indicator is used to rank regions according to their current degree of regional integration, which allows for a direct comparison of Asia’s regional integration performance with those of other regions of the world. As a second step, the constructed indicator of regional integration outcomes is used as the output variable in a data envelopment analysis (DEA) to estimate Asia’s untapped regional integration potential.
    Keywords: Asia; composite index; data envelopment analysis; integration potential; regional integration
    JEL: F02 F10 F13 F15
    Date: 2015–08–21
  32. By: Joshua C. Hall (West Virginia University, Department of Economics); Brad R. Humphreys (West Virginia University, Department of Economics); Jane E. Ruseski (West Virginia University, Department of Economics)
    Abstract: The social determinants of health include the communities in which people reside. Associated with geographic areas are public policies that influence a variety of economic and social outcomes. The group of public policies associated with economic freedom have been found to be positively related to a number of economic and social outcomes. In this paper, we investigate the impact of economic freedom on self-reported health and racial health disparities. We use propensity score matching to construct a control group of whites who can be compared to blacks in the 2011 BRFSS. After accounting for confounding variables and possible selection, we find evidence that economic freedom is associated with lower levels of self reported health for the population overall. After allowing for the effects of economic freedom to differ by race, we find that higher levels of economic freedom mitigate the observed gap in health status.
    Keywords: economic freedom, health disparities
    JEL: I12 I18 J22 R5
    Date: 2015–10

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