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on Urban and Real Estate Economics |
| By: | Almeida,Rita Kullberg; Bresolin,Antonio; Pugialli Da Silva Borges,Bruna; Mendes,Karen; Menezes Filho,Naercio |
| Abstract: | To address the educational gap, many Latin American countries are focusing on extension of the school day and enrichment of the curriculum. In Brazil, a nationwide policy -- Mais Educação -- was implemented in 2008 with this objective. This paper explores the nationwide rollout of the program across the country and compares the performance of schools before and after implementation of the program. The paper quantifies the impacts of the program on student learning and dropout rates in urban areas, and investigates the heterogeneity of impacts by several characteristics of the program's implementation. Participating schools are compared with nonparticipating schools after controlling for school selection into the program based on observable characteristics using propensity score matching. The analysis finds that participation in Mais Educação has on average no impacts on school dropout rates and average negative impacts on mathematics test scores. The negative impacts on student achievement are stronger in the short term, which suggests that the negative effects may be reduced as the program improves its implementation. In addition, especially for fifth-grade schools, the level of student spending is associated with reduced dropout rates. Interestingly, in schools choosing the fields of Portuguese and/or sports in the added hours, the program is associated with lower test scores in Portuguese and mathematics. Finally, for the sample of fifth-grade schools, heterogeneous impacts are seen in the program according to the GDP per capita of the city where the school is located. The higher the GDP per capita, the greater the positive impact of the program on mathematics test scores and on dropout rates. |
| Keywords: | Cultural Policy,Education For All,Secondary Education,Tertiary Education,Primary Education |
| Date: | 2016–04–18 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7644&r=ure |
| By: | Christian A. L. Hilber |
| Abstract: | In this article I argue that the extent to which fiscal variables are capitalized into house prices has important economic implications. I synthesize an emerging literature that explores the conditions under which public and private investments and intergovernmental transfers are capitalized into local house prices and the broader implications of such capitalization. The main insights are: (i) House price capitalization is more pronounced in locations with strict regulatory and geographical supply constraints; (ii) capitalization can – under certain conditions – induce the provision of durable local public goods and club goods; and (iii) capitalization effects – which are habitually ignored by policy makers – have important adverse consequences for a wide range of policies such as intergovernmental aid or the mortgage interest deduction. |
| Keywords: | House price capitalization; homeownership; local public goods; club goods; land use regulation; land and housing supply; incentives to invest; redistribution |
| JEL: | D71 R21 R31 |
| Date: | 2015–05–18 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:62118&r=ure |
| By: | Dunn, Richard A. (University of Connecticut); Nayga, Rodolfo M., Jr. (Bates College); Thomsen, Michael (University of Arkansas); Heather L. Rouse (University of Arkansas for Medical Sciences) |
| Abstract: | This paper employs a novel identification strategy based on changes in the route students would use to commute between their home and their school as they transition to higher grades housed in different schools to investigate the effect of fast-food availability on childhood weight outcomes by gender, race and location. Using a longitudinal census of height and weight for public school students in Arkansas, we find no evidence that changes in fast-food exposure are associated with changes in BMI z-score. Our findings suggest that laws restricting fast-food restaurants from areas near schools are neither effective nor efficient means of improving public health. |
| Keywords: | Fast-food, childhood obesity |
| JEL: | I10 R12 R40 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:zwi:wpaper:34&r=ure |
| By: | J. Vernon Henderson; Tim L. Squires; Adam Storeygard; David N. Weil |
| Abstract: | We study the distribution of economic activity, as proxied by lights at night, across 250,000 grid cells of average area 560 square kilometers. We first document that nearly half of the variation can be explained by a parsimonious set of physical geography attributes. A full set of country indicators only explains a further 10%. When we divide geographic characteristics into two groups, those primarily important for agriculture and those primarily important for trade, we find that the agriculture variables have relatively more explanatory power in countries that developed early and the trade variables have relatively more in countries that developed late, despite the fact that the latter group of countries are far more dependent on agriculture today. We explain this apparent puzzle in a model in which two technological shocks occur, one increasing agricultural productivity and the other decreasing transportation costs, and in which agglomeration economies lead to persistence in urban locations. In countries that developed early, structural transformation due to rising agricultural productivity began at a time when transport costs were still relatively high, so urban agglomerations were localized in agricultural regions. When transport costs fell, these local agglomerations persisted. In late developing countries, transport costs fell well before structural transformation. To exploit urban scale economies, manufacturing agglomerated in relatively few, often coastal, locations. With structural transformation, these initial coastal locations grew, without formation of more cities in the agricultural interior. |
| JEL: | O13 O18 R12 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22145&r=ure |
| By: | West , Jens (KTH/Sweco); Börjesson , Maria (KTH); Engelson , Leonid (KTH) |
| Abstract: | This paper performs an ex-post evaluation of the transport model forecast of the effects of the Gothenburg congestion charges, implemented in 2013. We find that the predicted traffic reductions across the cordon and travel time gains were close to those observed in the peak. However, the reduction in traffic across the cordon was under-predicted in off-peak. The design of the charging system implies that the path disutility cannot be computed as a sum of link attributes. The route choice model is therefore implemented as a hierarchical algorithm, including a continuous value of travel time (VTT) distribution. The VTT distribution was estimated from stated choice (SC) data, but had to be adjusted to be consistent with observed outcome. One reason for the discrepancy may be that VTT inferred from SC data does not reveal travellers’ long-term preferences. Another reason may be that apart from distance, travel time and charge there are other factors that determine drivers’ route choice. |
| Keywords: | Congestion charges; Transport model; Validation; Value of time; Volume delay function; Decision support |
| JEL: | R41 R42 R48 |
| Date: | 2016–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2016_009&r=ure |
| By: | Christoph Basten; Catherine Koch |
| Abstract: | We identify the causal effect of house prices on mortgage demand and supply in Switzerland by exploiting exogenous shocks to immigration and thereby to house prices. Detailed micro data on individual requests and offers allow to close down possible other channels. We find that within the same interest rate environment 1% higher house prices imply 0.52% higher mortgage amounts. The full partial correlation of 0.78% suggests also positive feedback from mortgage volumes to house prices. While we find higher house prices to increase mortgage demand, banks respond if anything with fewer offers and higher rates, especially later in the boom and for highly leveraged households. |
| Keywords: | House prices, mortgage demand, mortgage supply, IV |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:555&r=ure |
| By: | Andrzej Toroj |
| Abstract: | We propose a novel method of constructing multisector-multiregion input-output tables, based on the standard multisector tables and the tools of spatial econometrics. Voivodship-level (NUTS-2) and subregion-level data (NUTS-3) on sectoral value added is used to fit a spatial model, based on a modication of the Durbin model. The structural coefficients are calibrated, based on I-O multipliers, while the spatial weight matrices are estimated as parsimoniously parametrised functions of physical distance and limited supply in certain regions. We incorporate additional restrictions to derive proportions in which every cross-sectoral ow should be interpolated into cross-regional ow matrix. All calculations are based on publicly available data. The method is illustrated with an example of regional economic impact assessment for a generic construction company located in Eastern Poland. |
| Keywords: | input-output model, spatial econometrics, Durbin model, multiregion analysis, regional economic impact assessment |
| JEL: | C21 C31 C67 D57 R12 R15 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:sgh:kaewps:2016004&r=ure |
| By: | Fredrik Andersson; John C. Haltiwanger; Mark J. Kutzbach; Giordano Palloni; Henry O. Pollakowski; Daniel H. Weinberg |
| Abstract: | To date, research on the long-term effects of childhood participation in voucher-assisted and public housing has been limited by the lack of appropriate data and suitable identification strategies. We create a new, national-level longitudinal data set on housing assistance and labor market earnings to explore how children’s housing affects their later earnings. While naïve estimates suggest there are substantial negative long-term consequences to childhood participation in voucher-assisted and public housing, these relationships appear to be driven largely by negative selection into housing assistance programs. To mitigate this source of bias, we employ household fixed-effects specifications that use only within-household (across-sibling) variation for identification. Compared to naïve specifications, household fixed-effects estimates are more positive for all demographic groups and, for some groups, positive and statistically significant. Black non-Hispanic females, in particular, benefit from time spent in both voucher-assisted and public housing. Exploiting the between sibling variation accounts for unobserved time-invariant family attributes that may influence outcomes but does not address time varying within household factors that may be at work. We use a number of strategies to address these issues and find our results are results are largely robust to these concerns. |
| JEL: | H43 I31 I38 J38 J62 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:13-48r&r=ure |
| By: | Pascal Towbin; Sebastian Weber |
| Abstract: | As it has proved difficult to explain the recent US house price boom on the basis of fundamentals, many observers have emphasised the role of speculation. This kind of argument is, however, indirect, as speculation is treated as a deviation from a benchmark. Our paper identifies house price expectation shocks directly, using a VAR with sign restrictions. House price expectation shocks are the most important driver of the US house price boom. We also show that a model-based measure of changes in price expectations leads a survey-based measure. Our baseline specification leaves the question of whether expectation shifts are realistic or unrealistic unanswered. In alternative specifications, we provide evidence that expectation shifts during the boom were largely unrealistic. |
| Keywords: | Housing Market, House Price Expectations, Speculation, Housing Boom, VAR |
| JEL: | E3 E4 R3 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:snb:snbwpa:2016-06&r=ure |
| By: | Henderson, J Vernon; Regan, Tanner; Venables, Anthony J |
| Abstract: | This paper models a growing city, and focuses on investment decisions and consequent patterns of land use and urban density. We distinguish between formal and informal sector construction. The former can be built tall (at a cost), but structures once built are durable and cannot be modified. Investments are based on expectations about future growth of the city. In contrast, informal structures are malleable and do not involve sunk costs. As the city grows areas will initially be developed informally, and then formally; formal areas are redeveloped periodically. This process can be hindered by land right issues which raise the costs of converting informal to formal sector development. The size and shape of the city are sensitive to the expected returns to durable investments and to the costs of converting informal to formal sector usage. We take the model to data on the built environment for Nairobi, to study urban growth and change between 2004 and 2015 in a context where population is growing at about 4% a year. We study the evolution of building footprints and heights, development at the fringe, infilling, and redevelopment of the formal sector. |
| Keywords: | capital durability; city; housing investment; slum development; urban; urban form; urban growth; urban structure |
| JEL: | O14 O18 R1 R3 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11211&r=ure |
| By: | KITAMI Tomitaro |
| Abstract: | This paper empirically examines the effects caused by a sharp decline in the number of local officials in recent years on the regional public service supply system, the regional employment, and the business environment of non-profit organizations. Especially, from the viewpoint of the Regional Revitalization Policies, this paper analyzes the kinds of municipalities and types of public services where the employment reductions occurred, and whether they are functionally absorbed in cooperation with the regional third sectors through office consignment and subsidizing, etc. From the results of the analysis, first, when viewed in the most recent five years, the number of skilled labor related staff members, such as cooks, largely declined in municipalities, and the rate of decline is higher in municipalities with distressed local economies and government finances, as well as with available capacity for further administrative reform. Second, the employment rate of change in the municipalities has a significant positive correlation with that of non-company offices, such as unincorporated and third sector offices. In addition, the employment of skilled labor related staff by municipalities suggests that this is functioning as an unemployment measure. Third, savings in "labor costs" through employment reductions in municipal finances do not lead to an increase in "office consignment," as they are substituted by an increase in "subsidy" and "part-time job wages" alternatively. Fourth, in the finance of social welfare corporations, office consignment revenue from the government administrative sector shows a significant positive correlation with the change in the "office consignment" budget of the location municipality, but no significant correlation is observed with the change in the number of paid staff members in the third sector. |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:16037&r=ure |
| By: | Thomas S. Dee; Will Dobbie; Brian A. Jacob; Jonah Rockoff |
| Abstract: | In this paper, we show that the design and decentralized, school-based scoring of New York’s high school exit exams – the Regents Examinations – led to the systematic manipulation of test sores just below important proficiency cutoffs. Our estimates suggest that teachers inflate approximately 40 percent of test scores near the proficiency cutoffs. Teachers are more likely to inflate the scores of high-achieving students on the margin, but low-achieving students benefit more from manipulation in aggregate due to the greater density of these students near the proficiency cutoffs. Exploiting a series of reforms that eliminated score manipulation, we find that inflating a student’s score to fall just above a cutoff increases his or her probability of graduating from high school by 27 percent. These results have important implications for educational attainment of marginal high school graduates. For example, we estimate that the black-white graduation gap is about 5 percent larger in the absence of test score manipulation. |
| JEL: | I20 I21 I24 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22165&r=ure |
| By: | Anastasia Girshina (Department of Economics, University Of Venice Cà Foscari) |
| Abstract: | Many of the world's wealthy countries provide fiscal incentives to homeowners. Yet, the impact of such tax breaks on housing tenure decision is unclear. Using difference-in-differences approach, this study estimates the effect of mortgage interest deduction on homeownership in the United States. The identification relies on the large changes in income tax rates and standard deduction. The largest of these changes increased income tax rate by as much as 23,9% and decreased standard deduction by 7,2% between 2002 and 2004. The baseline estimates suggest that increase in income tax rate in a state that allows mortgage interest deduction is associated to 3 percentage points increase in homeownership relative to states that didn't change their fiscal policy and to 5 percentage points -relative to states that do not allow mortgage interest deduction but had a comparable increase in tax rates. The results are robust to a range of alternative specifications. |
| Keywords: | fiscal policy, tenure choice, mortgage interest deduction, income tax, homeownership |
| JEL: | E62 G11 H24 H31 K34 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2016:11&r=ure |
| By: | Lee, Chin |
| Abstract: | This study examines whether there are significant differences in prices across four regions in Peninsular Malaysia, namely Northern, Central, Southern, and Eastern Peninsular Malaysia. Disaggregate monthly consumer price indices for twelve types of goods and services from July 2010 to February 2013 were analyzed. Based on the Levin and Lin (1993) panel unit root test, this study found statistical evidence of price convergence among the four zones for two-thirds of the price groups. Most importantly, price convergence exists for three major consumers’ expenditures items: Food and Non-Alcoholic Beverages; Housing, Water, Electricity, Gas and Other Fuels; and Transport. Indeed, these eight price groups that converged comprised 83.6% of total consumer expenditures. Evidence of price convergence among these price groups suggests that Peninsular Malaysia markets are highly integrated. In addition, this study found that the half-life for the tradable goods is roughly 2-3 months and for nontradable goods about 5-10 months. These findings indicate that tradable goods prices adjust more rapidly than nontradable goods do. |
| Keywords: | regional price disparity, price convergence, half-life, speed of adjustment, panel unit root test |
| JEL: | D12 E31 E64 R11 R12 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70592&r=ure |
| By: | Andrew B. BERNARD; Andreas MOXNES; SAITO Yukiko |
| Abstract: | This paper examines the importance of buyer-supplier relationships, geography, and the structure of the production network in firm performance. We develop a simple model where firms can outsource tasks and search for suppliers in different locations. Low search and outsourcing costs lead firms to search more and find better suppliers. This in turn drives down firms' marginal production costs. We test the theory by exploiting the opening of a high-speed train line (shinkansen) in Japan which lowered the cost of passenger travel but left shipping costs unchanged. Using an exhaustive dataset on firms' buyer-seller linkages, we find significant improvements in firm performance as well as creation of new buyer-seller links, which are consistent with the model. |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:16055&r=ure |
| By: | Valentina Michelangeli; Enrico Sette |
| Abstract: | We study the effect of bank capital on the supply of mortgages. We fully control for endogenous matching between borrowers, loan contracts, and banks by submitting randomized mortgage applications to the major online mortgage broker in Italy. We find that higher bank capital is associated with a higher likelihood of application acceptance and lower offered interest rates; banks with lower capital reject applications by riskier borrowers and offer lower rates to safer ones. Finally, nonparametric estimates of the probability of acceptance and of the offered rate show that the effect of bank capital is stronger when capital is low. |
| Keywords: | Mortgages, banks, household finance, randomized experiment |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:557&r=ure |
| By: | Federico Belotti (CEIS,University of Rome "Tor Vergata"); Edoardo Di Porto (University of Naples Federico II, CSEF and UCFS Uppsala University); Gianluca Santoni (CEPII) |
| Abstract: | This paper investigates the impact of business property taxation on firms' performance using a panel of italian manufacturing firms. To account for endogeneity in local taxation, we exploit a pairwise spatial differenced generalized method of moments estimator. As well as providing robust inference, we also improve on existing work by exploiting the exogenous variation in local taxes generated by the political alignment of each local government with the central one. We find that property taxation exerts a negative impact on firms' employment, capital and sales to such an extent as to significantly affect total factor productivity. |
| Keywords: | Local taxation, endogeneity, spatial differencing, two-way clustering. |
| JEL: | H22 H71 R38 |
| Date: | 2016–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:rtv:ceisrp:377&r=ure |
| By: | Sarkar, Anindo; Dhavalikar, Udayan; Agrawal, Vikram; Morris, Sebastian |
| Abstract: | In this paper we critique the Government of India's programmes for affordable housing in India, namely the Rajiv Awas Yojana and Housing for All 2022. We analyse the efficacy of these policies in being able to provide thee sections of the population who are unable to avail housing from the formal market, both through direct support and most importantly in addressing the many distortions that have made the housing unnecessarily expensive, while taking away much of the value to consumers. We argue that while these programmes and policies are a major advancement over the previous approaches, they do not fully exploit the potential that is there in increased FSI, sensitivity of low cost housing development to exploiting locational value appropriately, to use of government land judiciously, to the reform of titles and squatter rights, and to more efficient land use changes. They are also constrained by an inability to distinguish between what the markets can be coaxed to deliver and where state intervention becomes necessary. |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:14476&r=ure |
| By: | joana stocker (Zayed University) |
| Abstract: | Although self-concept is a construct widely studied in the West, little is known about its features in Arab countries, especially considering high school students. Based on Marsh and Shavelson’s multidimensional and hierarchical self-concept model, this study aims to uncover individual differences amongst self-concept dimensions within Emirati high school graders. Schools were selected with support from the Dubai Knowledge and Human Development Authority and each school selected respective classes. All the ethical approvals were ensured. A social-demographic questionnaire was built (22 items) and an adaptation of the Self-Description Questionnaire was used, with 75 items in a 6-points Likert agreement scale, distributed through seven self-concept dimensions (Verbal, Mathematics, Problem Solving, Academic, Arabic, English, Peers, and Parent Relations). Most students were females (53.7%), with ages between 13 and 20 years old (M=15.66; SD=1.03), and evenly distributed across the three high school grades: 31.8% from 10th grade, 33.4% from 11th grade, and 34.7% from 12th grade. SPSS was used to perform ANOVA and T-test analyses. Considering gender, male students present higher levels of Maths, Peers and Parents Relations self-concept than the female students. However, girls got significantly higher grades in all achievement domains (Maths, English, Arabic, GPA). They also perceive themselves as significantly studying more hours a week, actively participating more in group works, studying harder for tests, wishing to pursue higher educational levels, and feeling less anxious at school than boys. Considering school grades (10th, 11th, 12th), generally students from higher grades present higher academic achievement, being the differences in self-concept dimensions inconsistent. Some of these results corroborate Western and previous Arab researches, while others need additional studies. Further discussions will be presented. |
| Keywords: | self-concept; high school; individual differences; academic achievement; gender; Emirati |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:3505507&r=ure |
| By: | Ernest Miguélez (GREThA, University of Bordeaux & AQR-IREA, University of Barcelona.); Rosina Moreno (AQR-IREA, University of Barcelona.) |
| Abstract: | This paper has two main objectives. First, it estimates the impact of related and unrelated variety of European regions’ knowledge structure on their patenting activity. Second, it looks at the role of technological relatedness and extra-local knowledge acquisitions for local innovative activity. Specifically, it assesses how external technological relatedness affects regional innovation performance. Results confirm the strong relevance of related variety for regional innovation; whereas the impact of unrelated variety seems relevant only for the generation of breakthrough innovations. The study also shows that external knowledge flows have a higher impact, the higher the similarity between these flows and the extant local knowledge base. |
| Keywords: | variety, patents, patent citations, relatedness, knowledge production function JEL classification: O18, O31, O33, R11 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:aqr:wpaper:201603&r=ure |
| By: | Umut Dur; Parag A. Pathak; Tayfun Sönmez |
| Abstract: | Affirmative action schemes must confront the tension between admitting the highest scoring applicants and ensuring diversity. In Chicago's affirmative action system for exam schools, applicants are divided into one of four socioeconomic tiers based on the characteristics of their neighborhood. Applicants can be admitted to a school either through a slot reserved for their tier or through a merit slot. Equity considerations motivate equal percentage reserves for each tier, but there is a large debate on the total size of these reserve slots relative to merit slots. An issue that has received much less attention is the order in which slots are processed. Since the competition for merit slots is influenced directly by the allocation to tier slots, equal size reserves are not sufficient to eliminate explicit preferential treatment. We characterize processing rules that are tier-blind. While explicit preferential treatment is ruled out under tier-blind rules, it is still possible to favor certain tiers, by exploiting the distribution of scores across tiers, a phenomenon we call statistical preferential treatment. We characterize the processing order that is optimal for the most disadvantaged tier assuming that these applicants systematically have lower scores. This policy processes merit slots prior to any slots reserved for tiers. Our main result implies that Chicago has been providing an additional boost to the disadvantaged tier beyond their reserved slots. Using data from Chicago, we show that the bias due to processing order for the disadvantaged tier is comparable to that from the 2012 decrease in the size of the merit reserve. |
| JEL: | C78 I21 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22109&r=ure |
| By: | E. Monnet; C. Wolf |
| Abstract: | We study residential investment over GDP in 20 OECD countries since 1980, and show that it is closely associated with the growth dynamics of population aged 20-49. We develop a new method to uncover the causal effect of the growth of the 20-49 age group. Using past demographic data as an instrument to avoid potential endogeneity between migration and the housing cycle, we find that a 1% increase in the population aged 20-49 increases the residential investment rate by 1.3 pp. Demographic changes are a better predictor of the residential investment rate than any macroeconomic or financial variable we control for. |
| Keywords: | business cycle, housing, demography, migration. |
| JEL: | E32 J11 R21 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:591&r=ure |
| By: | José Aguilar Retureta (Universitat de Barcelona, Spain) |
| Abstract: | Economic Historians have paid close attention to the long term evolution of regional inequality. Nevertheless, so far research has largely focused on industrialised economies, neglecting to a large extent the experience of low- and middle-income countries. This paper aims to provide, using a new regional labour productivity database, evidence on the determinants of regional income inequality changes in Mexico from 1900 to the present. Different forces have driven regional inequality in each historical period. During the primary-export led-growth period of the first globalization (1900-1930) differences across regions in the intensity of structural change caused an increasing divergence. From 1930 to 1980, during the State-led Industrialisation, internal migrations contributed to a strong process of regional convergence in productivity, both in the within and the between-sector components of regional inequality. Finally, the increasing regional divergence that has taken place from 1980 onwards has been mainly an effect of the operation of labour productivity differentials within each sector. |
| Keywords: | Economic History, Economic Growth, Regional Income Inequality, Mexico. |
| JEL: | N16 N96 R11 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:ahe:dtaehe:1608&r=ure |
| By: | Fujii, Daisuke; Nakajima, Kentaro; Saito, Yukiko Umeno |
| Abstract: | This paper investigates the relationships between determinants of industrial coagglomeration and establishment-level productivity. For each pair of industries, we first construct degree of coagglomeration and indices for three factors of coagglomeration: inter-firm transactions, knowledge spillover, and labor market pooling. We then examine correlation between these three factors and degree of coagglomeration. Overall, inter-firm transactions and labor market pooling are positively correlated with the degree of coagglomeration whereas knowledge spillover has no significant relationship with coagglomeration. We also find that determinants of coagglomeration are quite different across industries. Further, we examine relationships between these factors and establishment-level productivity. In the results, we find that determinants of coagglomeration are not necessarily positively associated with productivity of establishments. |
| Keywords: | coagglomeration, transaction costs, knowledge spillover, labor pooling |
| JEL: | R11 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:remfce:57&r=ure |
| By: | Robert DEKLE; Eunpyo HONG; Wei XIE |
| Abstract: | In this paper, we trace out how a decline in industrial production in one region can be propagated throughout a country. We use the model to measure how a shock to industrial production in Tohoku—owing to the earthquake and tsunami from 2011—can be propagated throughout Japan. In our econometric model, regions and industries within regions are linked by specific structures, and these structures discipline how the shocks are spatially propagated. |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:16049&r=ure |
| By: | Nicolás Grau |
| Abstract: | This paper builds and estimates a dynamic model of elementary school choice using detailed Chilean administrative data. In the model, parents care about different features of primary schools: school’s socioeconomic composition, quality (measured as the school’s contribution to standardized test scores), religiosity, location, type of administration, tuition fee and GPA standard. Parents are heterogeneous in two dimensions: whether they have the skills needed to understand public information about quality (standardized tests), and their involvement in their child’s school. The results suggest that: (1) Parents care about school quality, but to a moderate degree. (2) Parents have an important misperception about school quality, which results in a less favorable opinion about the quality of public schools, relative to private schools. (3) If parents were only concerned about quality, they would choose public schools more often. (4) Admission restrictions play a relevant role; otherwise, parents would choose private school more frequently. |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:udc:wpaper:wp417&r=ure |
| By: | Sánchez-Barrioluengo, Mabel; Consoli, Davide |
| Abstract: | This paper explores the relationship between regional human capital (HC) and the processes of knowledge creation and mobilization due to Higher Education Institutions (HEIs). Although the nexus between these dimensions emerges frequently in both the scholarly and policy discourses, no study has so far investigated explicitly how their connection works. Using occupations as a proxy for the skill content of jobs, we analyse individual (gender, schooling and age) and regional (university orientation) factors that influence HC employment structure in Spanish regions over the period 2003-2010. The main finding is that teaching university mission is a robust predictor of high-skill employment, while the impact of engagement (research and knowledge transfer) activities is more sensitive to structural characteristics of the regional socio-economic context. |
| Keywords: | Human Capital, University Orientation, Skills, Region |
| JEL: | J24 |
| Date: | 2016–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:ing:wpaper:201601&r=ure |
| By: | Sambit Bhattacharyya; Louis Conradie; Rabah Arezki |
| Abstract: | If the central government is a revenue maximizing Leviathan then resource discovery and democratization should have a discernible impact on the degree of fiscal decentralization. We systematically explore this effect by exploiting exogenous variation in giant oil and mineral discoveries and permanent democratization. Using a global dataset of 77 countries over the period 1970 to 2012 we find that resource discovery has very little effect on revenue decentralization but induces expenditure centralization. Oil discovery appears to be the main driver of centralization and not minerals. Resource discovery leads to centralization in locations which have not experienced permanent democratization. Tax and intergovernmental transfers respond most to resource discovery shocks and democratization whereas own source revenue, property tax, educational expenditure, and health expenditure do not seem to be affected. Higher resource rent leads to more centralization and the effect is moderated by democratization. |
| Keywords: | Resource discovery; Resource rent; Democratization; Fiscal decentralization |
| JEL: | H41 H70 O11 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2016-05&r=ure |
| By: | Isabelle Laplace (ENAC - Ecole Nationale de l'Aviation Civile - ENAC); Chantal Latgé-Roucolle (LEEA - ENAC - Laboratoire d'Economie et d'Econométrie de l'Aérien - PRES Université de Toulouse - Ecole Nationale de l'Aviation Civile); Ion Buzdugan (UT1 - Université Toulouse 1 Capitole) |
| Abstract: | The objective of this empirical paper is to analyze the impact of an innovation in air transport system on airlines competitive behavior. We consider as innovation, the use of an aircraft with a significant higher capacity: the Airbus 380. Does the use of the A380 by an airline on a particular route give incentives to competitors to introduce as well this type on aircraft on the same route? To answer this question we use some econometric methods to estimate the impact of the introduction of the A380 by an airline, on the probability that airline’s competitors will follow up the innovation. Controlling for others factors which might impact the choice of innovation, we show that the use of the A380 by an airline on a route gives incentives to competitors to introduce it as well |
| Keywords: | Air transport,aircraft innovation,aircraft size,airlines,competitive strategies |
| Date: | 2016–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01301020&r=ure |
| By: | Jagtiani, Julapa (Federal Reserve Bank of Philadelphia); Lemieux, Catharine (Federal Reserve Bank of Chicago) |
| Abstract: | The recent decline in small business lending (SBL) among U.S. community banks has spurred a growing debate about the future role of small banks in providing credit to U.S. small businesses. This paper adds to that discussion in three key ways. First, this research builds on existing evidence, suggesting that the decline in SBL by community banks is a trend that began at least a decade before the financial crisis. Second, the authors show that in the years preceding the crisis, small businesses increasingly turned to mortgage credit to fund their operations. Finally, this paper illustrates how community banks face an increasingly dynamic competitive landscape, including the entry of deep-pocketed alternative nonbank lenders using technology to find borrowers and to underwrite loans, often using unconventional lending practices. Although these lenders may pose a competitive threat to community banks, the authors explore emerging examples of partnerships and alliances among community banks and nonbank lenders. |
| Keywords: | Small business lending; Online lending; Lending technology; Shadow banking; Community banks; Large and small banks |
| JEL: | G21 G23 |
| Date: | 2016–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:16-8&r=ure |
| By: | Hoyer, Jackie (Federal Reserve Bank of Dallas) |
| Date: | 2014–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddpp:0011&r=ure |
| By: | Laura Barbieri (Dipartimento di Scienze Economiche e Sociali, Università Cattolica); Daniela Bragoli (Dipartimento di Discipline matematiche, Finanza matematica ed Econometria, Università Cattolica); Flavia Cortelezzi (Dipartimento di Diritto, Economia e Culture, Università degli Studi dell’Insubria); Giovanni Marseguerra (Dipartimento di Discipline matematiche, Finanza matematica ed Econometria, Università Cattolica) |
| Abstract: | This study investigates whether the receipt of public R&D funding determines firm's R&D strategy election. Using the Community Innovation Survey (CIS) dataset including more than 3000 Italian manufacturing companies, we adopt a multinomial logit model after controlling for sample selection and endogeneity issues which arise when dealing with CIS data. The main finding is that public R&D funding in uences whether firms select the make, the buy or the make&buy strategy and in particular firms, after receiving public support, prefer the composite strategy rather than the single strategies. This result turns out to be good news given that government support, correcting for the market failures which characterize the combined strategy, favors the strategy which seems to enhance a positive synergy between in house R&D and external sourcing. |
| Keywords: | Public Funding, R&D strategies, CIS Survey |
| JEL: | G32 O31 D21 |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:ctc:serie2:dises1509&r=ure |
| By: | Javier Vázquez-Grenno (Universitat de Barcelona, IEB); Jordi Jofre-Monseny (Universitat de Barcelona, IEB); José I. Silva (Universitat de Girona) |
| Abstract: | This paper quantifies the impact of public employment on local labor markets in the long-run. We adopt two quantitative approaches and apply them to the case of Spanish cities. In the first, we develop a 3-sector (public, tradable and non-tradable) search and matching model embedded within a spatial equilibrium model. We characterize the steady state of the model, which we calibrate to match the labor market characteristics of the average Spanish city. The model is then used to simulate the local labor market effects of expanding public sector employment. In the second empirical approach, we use regression analysis to estimate the effects of public sector job expansions on decadal changes (1980-1990 and 1990-2001) in the employment and population of Spanish cities. This analysis exploits the dramatic expansion of public employment that followed the advent of democracy in the period 1980 to 2001. The instrumental variables’ approach that we adopt uses the capital status of cities to instrument for changes in public sector employment. The two empirical approaches yield qualitatively similar results and, thus, cross-check each other. One additional public sector job creates about 1.3 jobs in the private sector. However, these new jobs do not translate into a substantial reduction in the local unemployment rate as better labor market conditions attract new workers to the city. Increasing public employment by 50% only reduces unemployment from 0.156 to 0.150. |
| Keywords: | Public employment, search, local multipliers, unemployment |
| JEL: | J45 J64 H70 R12 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:doc2016-11&r=ure |
| By: | Klaus S. Friesenbichler (WIFO); Michael Peneder (WIFO) |
| Abstract: | We investigate the drivers of firm level productivity in catching-up economies by jointly estimating its relationship to innovation and competition using data from the EBRD-WB Business Environment and Enterprise Performance Survey (BEEPS) in Eastern Europe and Central Asia. The findings confirm an inverted-U shaped impact of competition on R&D. Both competition and innovation have a simultaneous positive effect on labour productivity in terms of either sales or value added per employee, as does a high share of university graduates and foreign ownership. Further positive impacts come from firm size, exports, or population density. Innovation and foreign ownership appear to be the strongest drivers of multifactor productivity. |
| Keywords: | innovation, competition, productivity, development, transition economies, simultaneous system |
| Date: | 2016–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2016:i:516&r=ure |
| By: | Coughlin, Cletus C.; Novy, Dennis |
| Abstract: | Trade data are typically reported at the level of regions or countries and are therefore aggregates across space. In this paper, we investigate the sensitivity of standard gravity estimation to spatial aggregation. We build a model in which initially symmetric micro regions are combined to form aggregated macro regions. We then apply the model to the large literature on border effects in domestic and international trade. Our theory shows that larger countries are systematically associated with smaller border effects. The reason is that due to spatial frictions, aggregation across space increases the relative cost of trading within borders. The cost of trading across borders therefore appears relatively smaller. This mechanism leads to border effect heterogeneity and is independent of multilateral resistance effects in general equilibrium. Even if no border frictions exist at the micro level, gravity estimation on aggregate data can still produce large border effects. We test our theory on domestic and international trade flows at the level of U.S. states. Our results confirm the model's predictions, with quantitatively large effects. |
| Keywords: | Borders; Geography; Gravity; Heterogeneity; Home Bias; Modifiable Areal Unit Problem (MAUP); Spatial Attenuation; Trade Costs |
| JEL: | F10 F15 R12 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11226&r=ure |
| By: | Rabovic, Renata (Tilburg University, Center For Economic Research); Cizek, Pavel (Tilburg University, Center For Economic Research) |
| Abstract: | To analyze data obtained by non-random sampling in the presence of cross-sectional dependence, estimation of a sample selection model with a spatial lag of a latent dependent variable or a spatial error in both the selection and outcome equations is considered. Since there is no estimation framework for the spatial lag model and the existing estimators for the spatial error model are either computationally demanding or have poor small sample properties, we suggest to estimate these models by the partial maximum likelihood estimator, following Wang et al. (2013)'s framework for a spatial error probit model. We show that the estimator is consistent and asymptotically normally distributed. To facilitate easy and precise estimation of the variance matrix without requiring the spatial stationarity of errors, we propose the parametric bootstrap method. Monte Carlo simulations demonstrate the advantages of the estimators. |
| Keywords: | Asymptotic distribution; Maximum likelihood; near epoch dependence; sample selection model; Spatial Autoregressive Models |
| JEL: | C13 C31 C34 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:8a4b2e5d-6787-4685-8b9e-128d0e6d4e47&r=ure |
| By: | Thiemo Fetzer (Department of Economics, University of Warwick); Samuel Marden (Department of Economics, University of Sussex) |
| Abstract: | Weak property rights are strongly associated with underdevelopment, low state capacity and civil conflict. In economic models of conflict, outbreaks of violence require two things: the prize must be both valuable and contestable. This paper exploits spatial and temporal variation in contestability of land title to explore the relation between (in)secure property rights and conflict in the Brazilian Amazon. Our estimates suggest that, at the local level, assignment of secure property rights eliminates substantively all land related conflict, even without changes in enforcement. Changes in land use are also consistent with reductions in land related conflict. |
| Keywords: | property rights, land titling, conflict, deforestation |
| JEL: | O12 Q15 D74 Q23 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:9216&r=ure |
| By: | André Kallåk Anundsen (Norges Bank (Central Bank of Norway)); Erling Røed Larsen (Eiendomsverdi and BI Norwegian Business School) |
| Abstract: | While aggregate house price indices display time persistence, less is known about micro persistence. This article proposes that absence of micro persistence implies that an excessively high or low sell price in one transaction is not repeated in the next transaction. We exploit a unique Norwegian data set of publically registered housing transactions between 2002 and 2014 and follow housing units over time to see if excessive prices persist or revert. In a regression with time and unit-fixed effects of sell-price-to-predicted-price ratios on previous sell-price-to-predicted-price ratios, we reject persistence and find substantial reversion. We also test for possible arbitrage opportunities in the form of excess returns. Once we control for price increases that are due to home improvements, we document that there is little scope for profitable arbitrage in excess of the market return. The overall impression is that the Norwegian housing market is relatively micro efficient. |
| Keywords: | Arbitrage, Housing Market, Micro Efficiency, Persistence, Repeat Sales |
| JEL: | R31 D12 D44 C21 |
| Date: | 2016–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:bno:worpap:2016_06&r=ure |
| By: | Nistor, Filip; Popa, Catalin C. |
| Abstract: | The important relationship between prices and economies of scale has pointed out the importance of transport leading to the introduction of transport activity in economic policy debates. Early years of 20th century reveal a new type of economic analysis of the transport market based on the principle of sustainable development. Transition of transport sector to another level of development has being pursued specific transport market developments by investigating concomitant of economic, environmental and social influences. In the presented paperwork the authors identify role of transport in developing a sustainable economy that will provide, in the near future, new services, ensuring better management and real-time traffic capabilities in order to protect the environment and offer safety. |
| Keywords: | sustainable development, shipping, economic growth |
| JEL: | O10 O18 R40 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70586&r=ure |
| By: | Raúl A. Ponce-Rodríguez; Charles R. Hankla; Jorge Martinez-Vazquez; Eunice Heredia-Ortiz |
| Abstract: | As more and more of the world’s states devolve power and resources to sub-national governments, decentralization has emerged as one of the most important global trends of the new century. Yet there is still no consensus concerning the benefits of decentralization and how to design institutions that can realize these benefits. In this paper, we investigate the political conditions under which the decentralization of authority will improve the delivery of public goods. Building off Oates’ “decentralization theorem” to include inter-jurisdictional spillovers, we develop a new theory suggesting that the interaction of democratic decentralization (the popular election of sub-national governments) and party centralization (the power of national party leaders over sub-national office-seekers) will produce the best service delivery outcomes. To test this argument empirically, we develop a new dataset of sub-national political institutions. Our analyses, which examine educational and health service delivery in 135 countries across 30 years, provide support for our theoretical expectations. |
| Keywords: | decentralization |
| JEL: | H70 H71 H72 H73 H74 H77 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:gov:wpaper:1603&r=ure |
| By: | Herr, Hansjörg; Rüdiger, Sina; Pédussel Wu, Jennifer |
| Abstract: | This paper studies the actions of the U.S. Federal Reserve Bank (FRB) during the financial crisis from 2007-2012 rating the performance of the Federal Reserve during the crisis. The chosen scoring model approach shows that the average performance of five specific measures taken by the FRB only ranks between fair and good. Comparing Stiglitz (2010) viewpoints with those of the FRB, this paper analyses several policies and events and argues that the resulting decisions were well intentioned but that the outcome was different from expectations because of missing regulations and restrictions. Furthermore, the structure of the FRB is examined and criticized. |
| JEL: | E42 E58 G18 E65 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ipewps:652016&r=ure |
| By: | FUKUGAWA Nobuya |
| Abstract: | Local public technology centers (LPTCs) in Japan help small- and medium-sized enterprises (SMEs) improve productivity through technology transfer. Using a comprehensive patent database and based on frameworks of regional and sector innovation systems, this study quantitatively evaluates LPTCs' technology transfer activities. The key findings can be summarized as follows. First, local SMEs' technological portfolios (the distribution of patents across technological fields) indicate a better fit with the technological portfolios of LPTCs than with those of local universities. This tendency is salient for manufacturing LPTCs. Second, LPTCs collaborate more intensively on research with local SMEs compared to the local universities. This tendency is also salient for manufacturing LPTCs. Third, in regions where SMEs' technological portfolios are concentrated in biotechnology, LPTCs engage more in licensing. In regions where SMEs' technological portfolios are concentrated in mechanical engineering, LPTCs engage more in technical consultation. |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:16061&r=ure |