nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2016‒10‒09
39 papers chosen by
Steve Ross
University of Connecticut

  1. Equilibrium and first-best city with endogenous exposure to local air pollution from traffic By Mirjam Schindler; Geoffrey Caruso; Pierre M. Picard
  2. Who Wants Affordable Housing in Their Backyard? An Equilibrium Analysis of Low Income Property Development By Diamond, Rebecca; McQuade, Tim
  3. Does Classroom Gender Composition Affect School Dropout? By Anil, Bulent; Guner, Duygu; Delibasi, Tuba Toru; Uysal, Gokce
  4. Trade Shocks and the Provision of Local Public Goods By Feler, Leo; Senses, Mine Zeynep
  5. Regional Redistribution through the U.S. Mortgage Market By Hurst, Erik; Keys, Benjamin J.; Seru, Amit; Vavra, Joseph
  6. Housing Supply Elasticity and Rent Extraction by State and Local Governments By Diamond, Rebecca
  7. How Inheritance Affects the Real Estate Market in an Aging Economy : Evidence from Transaction and Registry Data By Mizuta, Takeshi; Shimizu, Chihiro; Uesugi, Iichiro
  8. Policy Intervention in Debt Renegotiation: Evidence from the Home Affordable Modification Program By Agarwal, Sumit; Amromin, Gene; Ben-David, Itzhak; Chomsisengphat, Souphala; Piskorski, Tomas; Seru, Amit
  9. Changing FHA Mortgage Insurance Premiums and the Effects on Lending By Daniel R. Ringo; Neil Bhutta
  10. Credit Availability and the Decline in Mortgage Lending to Minorities after the Housing Boom By Neil Bhutta; Daniel R. Ringo
  11. Immigrant Crime and Legal Status: Evidence from Repeated Amnesty Programs By Fasani, Francesco
  12. The Decision to Carry: The Effect of Crime on Concealed-Carry Applications By Depew, Briggs; Swensen, Isaac D.
  13. Parents, schools and human capital differences across countries By Marta De Philippis; Federico Rossi
  14. Cognitive Ability and Games of School Choice By Christian Basteck; Marco Mantovani; ;
  15. The Socioeconomic Determinants of Crime in Ireland from 2003-2012 By Brosnan, Stephen
  16. Dis-integrating credit markets: diversification, securitization, and lending in a recovery By Chavaz, Matthieu
  17. Spatial structures of manufacturing clusters in Cambodia, Lao People's Democratic Republic, and Thailand By Gokan, Toshitaka; Kuroiwa, Ikuo; Laksanapanyakul, Nuttawut; Ueki, Yasushi
  18. Long-Term Orientation and Educational Performance By Figlio, David; Giuliano, Paola; Ozek, Umut; Sapienza, Paola
  19. Reputational spillovers: evidence from french architecture By Amélie Boutinot; Shahzad Ansari; Mustapha Belkhouja; Vincent Mangematin
  20. Spatial patterns of manufacturing clusters in Vietnam By Gokan, Toshitaka; Kuroiwa, Ikuo; Nakajima, Kentaro; Sakata, Shozo
  21. Can Student Test Scores Provide Useful Measures of School Principals' Performance? By Hanley Chiang; Moira McCullough; Stephen Lipscomb; Brian Gill
  22. Immigrant Birthcountry Networks and Unemployment Duration: Evidence around the Great Recession By Mundra, Kusum; Rios-Avila, Fernando
  23. Regulation versus Taxation By Hirte, Georg; Rhee, Hyok-Joo
  24. Wavelet Based Analysis Of Major Real Estate Markets By Yilmaz, Adil; Unal, Gazanfer; Karatasoglu, Cengiz
  25. Estimating demand schedules in hedonic analysis: The case of urban parks By Toke Emil Panduro; Cathrine Ulla Jensen; Thomas Hedemark Lundhede; Kathrine von Graevenitz; Bo Jellesmark Thorsen
  26. Innovative public-private partnership to support Smart City: the case of “Chaire REVES” By Laurent Dupont; Laure Morel; Claudine Guidat
  27. Dealing with student heterogeneity: curriculum implementation strategies and student achievement By Rosario Maria Ballatore; Paolo Sestito
  28. Being Poorer than the Rest of the Neighbourhood: Relative Deprivation and Problem Behaviour of Youth By Nieuwenhuis, Jaap; van Ham, Maarten; Yu, Rongqin; Branje, Susan; Meeus, Wim; Hooimeijer, Pieter
  29. The effect of economic crisis on regional income inequality in Italy By Chiara Mussida; Maria Laura Parisi
  30. Location Choices of Chinese Multinationals in Europe: The Role of Overseas Communities By Bas Karreman; Martijn J. Burger; Frank G. van Oort
  31. Entrepreneurial role models, fear of failure, and institutional approval of entrepreneurship: A tale of two regions By Wyrwich, Michael; Stuetzer, Michael; Sternberg, Rolf
  32. Unemployment spell and vertical skills mismatches: The case of Macedonia’s youth By Jorge Davalos; Viktorija Atanasovska; Tijana Angjelkovska
  33. Classifying Industries Into Types of Relative Concentration By Ludwig von Auer; Andranik Stepanyan; Mark Trede
  34. Innovation Policies and New Regional Growth Paths: A place-based system failure framework By Grillitsch, Markus; Trippl, Michaela
  35. Disentangling Social Capital: Lab-in-the-Field Evidence on Coordination, Networks, and Cooperation By Sandra Polania-Reyes
  36. Protecting Unsophisticated Applicants in School Choice through Information Disclosure By Christian Basteck; Marco Mantovani; ;
  37. Assessing and Quantifying Local Network Effects in an Online Dating Market By Gordon Burtch; Jui Ramaprasad
  38. Structural shift and increasing variety in Korea, 1960-2010: Empirical evidence of the economic development model by the creation of new sectors By Yeon, Jung-In; Pyka, Andreas; Kim, Tai-Yoo
  39. Culture, diffusion, and economic development By Ani Harutyunyan; Omer Ozak

  1. By: Mirjam Schindler (IPSE, Université du Luxembourg); Geoffrey Caruso (IPSE, Université du Luxembourg); Pierre M. Picard (CREA, Université du Luxembourg, CORE Université catholique de Louvain)
    Abstract: Exposure to urban traffic-induced air pollution is a major health concern of cities. This paper analyzes the urban structure when localized pollution exposure arises from commuting traffic and investigates the feedback effect of endogenous pollution on residential choices. The presence of stronger traffic-induced air pollution exposure reduces the geographical extent and the population of cities. Land rents fall with distance from the city center while population densities may be non-monotonic. Cleaner vehicle technolo- gies reduce pollution exposure everywhere, increase population and density everywhere and do not affect the spatial extent of the city. The paper com- pares the urban equilibrium with the first-best. The first-best structure is a less expanded city with higher densities at the center and lower densities at the fringe.
    Keywords: residential choice, traffic-induced air pollution, localized pollution exposure, urban structure
    JEL: R11 R14 R41
    Date: 2016
  2. By: Diamond, Rebecca (Stanford University); McQuade, Tim (Stanford University)
    Abstract: We estimate the spillovers of properties financed by the Low Income Housing Tax Credit (LIHTC) onto surrounding neighborhood residents. We nonparametrically estimate the impact of LIHTC development on nearby house prices by developing a new difference-in-differences style estimator which exploits smoothness in housing prices across geographic distance and time. We find LIHTC development helps revitalize low income neighborhoods, driving up house prices 6.5%, lowering crime rates, and attracting a more racially and income diverse population. LIHTC development in higher income, low minority areas leads to local house price declines of 2.5% and attracts lower income households. We link these housing price effects to homeowner and renter preferences by developing a generalized hedonic model. Our estimates indicate that an affordable housing development in a low-income area improves welfare by $23,000 per local homeowner and $6500 per local renter, with aggregate welfare benefits to society of $115 million. When viewed as a place-based policy, affordable housing appears to be a desirable way to invest in and revitalize low-income communities.
    Date: 2015–07
  3. By: Anil, Bulent (Bahcesehir University); Guner, Duygu (KU Leuven); Delibasi, Tuba Toru (Bahcesehir University); Uysal, Gokce (Bahcesehir University)
    Abstract: Measuring the gender peer effects on student achievement has recently attracted a lot of attention in the literature. Yet, the results are inconclusive. A substantial amount of research shows that having relatively more girls in a division increases the academic achievement of all students. Nevertheless, the identification of pure gender effects remains a challenge due to the fact that girls outperform boys in overall academic performance. Our study overcomes this identification problem in a setting where girls are not academically better. Using 2009-2010 school year data on 8th graders in Turkey, this paper disentangles pure "academic" peer effects and "gender" peer effects. Our estimations reveal that the higher the share of females in a division, the lower the likelihood that a student drops out. One standard deviation increase in the share of females in the division decreases the likelihood of dropout by 0.3 percentage points. This result holds even though females are 9.32 percentage points more likely to drop out. These findings are robust to the inclusion of various control variables e.g. parental and academic background of the student, school and regional characteristics. We also find that the gender peer effects are prevalent in both females and males.
    Keywords: gender, peer effects, dropout
    JEL: J16 I20
    Date: 2016–09
  4. By: Feler, Leo (Johns Hopkins University); Senses, Mine Zeynep (Johns Hopkins University)
    Abstract: We analyze the impact of trade-induced income shocks on the size of local government, and the provision of public services. Areas in the US with declining labor demand and incomes due to increasing import competition from China experience relative declines in housing prices and business activity. Since local governments are disproportionately funded through property and sales taxation, declining property values and a decrease in economic activity translate into less revenue, which constrains the ability of local governments to provide public services. State and federal governments have limited ability to smooth local shocks, and the impact on the provision of public services is compounded when local income shocks are highly correlated with shocks in the rest of the state. The outcome is greater inequality not only in incomes but also in the quality of public services and amenities across US jurisdictions.
    Keywords: trade shocks, housing prices, intergovernmental transfers, public finance, public goods
    JEL: F14 F16 H41 H70 R12 R23
    Date: 2016–09
  5. By: Hurst, Erik (University of Chicago); Keys, Benjamin J. (University of Chicago); Seru, Amit (University of Chicago); Vavra, Joseph (University of Chicago)
    Abstract: Regional shocks are an important feature of the U.S. economy. Households' ability to self-insure against these shocks depends on how they affect local interest rates. In the U.S., most borrowing occurs through the mortgage market and is influenced by the presence of government-sponsored enterprises (GSEs). We establish that despite large regional variation in predictable default risk, GSE mortgage rates for otherwise identical loans do not vary spatially. In contrast, the private market does set interest rates which vary with local risk, and we postulate that the lack of regional variation in GSE mortgage rates is likely driven by political pressure. We use a spatial model of collateralized borrowing to show that the national interest rate policy substantially affects welfare by redistributing resources across regions.
    Date: 2015–09
  6. By: Diamond, Rebecca (Stanford University)
    Abstract: Governments may extract rent from private citizens by inflating taxes and spending on projects which benefit special interests. Using a spatial equilibrium model, I show that less elastic housing supplies increase governments' abilities to extract rents. Inelastic housing supply elasticity, driven by exogenous variation in local topography, raises local governments' tax revenue. I find that public sector workers, one of the largest government special interests, capture a share of these rents either through increased compensation when formal collective bargaining is legal or by increased corruption when collective bargaining is outlawed.
    Date: 2015–07
  7. By: Mizuta, Takeshi; Shimizu, Chihiro; Uesugi, Iichiro
    Abstract: The impact of population aging on real estate prices has been closely scrutinized by Mankiw and Weil (1989) and others. This paper sheds new light on the literature on asset meltdown by examining the mechanism how the death of property owners and subsequent inheritances affect the realty market. By combining the unpredictable nature of death and inheritance and the unique characteristics of the Japanese tax system, which provides an incentive to heirs to sell inherited properties shortly after inheriting them, we use the incidence of inheritance to instrument for the supply of real estate and examine the causal relationship between supply and realty prices to find the following. First, a higher incidence of inheritance results in a larger number of properties for sale. Second, a larger number of properties for sale as a result of inheritances decreases transaction prices in the real estate market. And third, there exists a substantial difference in the demand elasticity of real estate property depending on whether land use regulations were relaxed or tightened.
    Keywords: Real estate market, Realty prices, Inheritance tax, Instruments
    JEL: R31 R38 H24
    Date: 2016–10
  8. By: Agarwal, Sumit (?); Amromin, Gene (?); Ben-David, Itzhak (?); Chomsisengphat, Souphala (?); Piskorski, Tomas (?); Seru, Amit (Stanford University)
    Abstract: We evaluate the effects of the 2009 Home Affordable Modification Program (HAMP) that provided intermediaries with sizeable financial incentives to renegotiate mortgages. HAMP increased intensity of renegotiations and prevented substantial number of foreclosures but reached just one-third of its targeted indebted households. This shortfall was in large part due to low renegotiation intensity of a few large intermediaries and was driven by intermediary-specific factors. Exploiting regional variation in the intensity of program implementation by intermediaries suggests that the program was associated with lower rate of foreclosures, consumer debt delinquencies, house price declines, and an increase in durable spending.
    Date: 2016–02
  9. By: Daniel R. Ringo; Neil Bhutta
    Abstract: This note explores the effect of changes in Federal Housing Administration (FHA) mortgage insurance premiums (MIP) on mortgage borrowing activity. Reacting to changing conditions in the mortgage market as well as the state of its own balance sheet, the FHA has adjusted its pricing rules a number of times in the wake of the financial crisis.
    Date: 2016–09–29
  10. By: Neil Bhutta; Daniel R. Ringo
    Abstract: This note sheds light on the factors contributing to the disproportionate decline in lending to minorities since 2006.
    Date: 2016–09–29
  11. By: Fasani, Francesco (Queen Mary, University of London)
    Abstract: Do general amnesty programs lead to reductions in the crime rate among immigrants? We answer this question by exploiting both cross-sectional and time variation in the number of immigrants legalized generated by the enactment of repeated amnesty programs between 1990 and 2005 in Italy. We address the potential endogeneity of the "legalization treatment" by instrumenting the actual number of legalized immigrants with alternative predicted measures based on past amnesty applications patterns and residential choices of documented and undocumented immigrants. We find that, in the year following an amnesty, regions in which a higher share of immigrants obtained legal status experienced a greater decline in non-EU immigrant crime rates, relative to other regions. The effect is statistically significant but relatively small and not persistent. In further results, we fail to find any evidence of substitution in the criminal market from other population groups - namely, EU immigrants and Italian citizens - and we observe a small and not persistent reduction in total offenses.
    Keywords: illegal migration, legalization, migration policy
    JEL: F22 J61 K37
    Date: 2016–09
  12. By: Depew, Briggs (Louisiana State University); Swensen, Isaac D. (Montana State University)
    Abstract: Despite contentious debate on the role of concealed-carry legislation in the U.S., little is known about individual decisions to legally carry concealed handguns in public. Using data on concealed-carry permit applications from 1998 to 2012, we explore the degree to which individuals respond to crime by applying for permits to legally carry concealed firearms. We find that recent homicide incidents increase concealed-carry applications in areas relatively near to the event. Our main results suggest that an additional homicide in relatively small cities increases applications by 26 percent over the following two months. We also find effects in larger cities when using neighborhood-level data. Our data allow us to explore specific circumstances of crime incidents and the characteristics of responsive applicants. Our results show that gun-related homicides are particularly relevant and that whites and males are most responsive to homicide incidents. We also find evidence that individuals are more responsive to homicide incidents when they share a common characteristic with the victim, particularly for female applicants.
    Keywords: concealed carry, right to carry, crime, precautionary behavior, gun control, demand for guns
    JEL: K42 I18
    Date: 2016–09
  13. By: Marta De Philippis (Banca d'Italia); Federico Rossi (London School of Economics)
    Abstract: Results from international standardized tests show large cross-country differences in students' performances. Where do these gaps come from? This paper argues that differences in cultural environments and parental inputs may be of great importance. We show that the school performance of second-generation immigrants is similar to that of native students in their parents' countries of origin. This holds true even after accounting for different family background characteristics, schools attended and selection into immigration. We quantify the overall contribution of various parental inputs to the observed cross-country differences in PISA test performance and show that they account for between 12% and 30% of the total variation and for most of the gap between East Asia and other regions. This pattern calls into questions whether PISA scores should be interpreted only as a quality measure for a country's educational system, since they actually contain an important intergenerational and cultural component.
    Keywords: parental inputs, school quality
    JEL: I25 O43 F22 Z1 J61
    Date: 2016–09
  14. By: Christian Basteck; Marco Mantovani; ;
    Abstract: We take school admission mechanisms to the lab to test whether the widely-used manipulable Boston-mechanism disadvantages students of lower cognitive ability and whether this leads to ability segregation across schools. Results show this is the case: lower ability participants receive lower payoffs and are over-represented at the worst school. Under the strategy-proof Deferred Acceptance mechanism, payoff differences are reduced, and ability distributions across schools harmonized. Hence, we find support for the argument that a strategy-proof mechanisms “levels the playing-field”. Finally, we document a trade-off between equity and efficiency in that average payoffs are larger under Boston than under Deferred Acceptance.
    JEL: C78 C91 D82 I24
    Date: 2016–10
  15. By: Brosnan, Stephen
    Abstract: This paper analyses the socioeconomic determinants of property crime and violent crime in Ireland between 2003 and 2012. The aim of the study is to determine whether individuals respond to incentives when deciding to engage in crime and whether this decision is dependent on the type of crime an individual engages in. The results of the paper support the economic theory of crime which indicates that criminals respond to incentives, particularly for property crimes. Higher rates of crime detection are associated with a fall in crime rates across all property crimes. Higher detection rates have been found to reduce crime rates for property crimes while the impact on violent crimes is found to be insignificant. The socioeconomic determinants of crime tend to be more ambiguous.
    Keywords: crime, crime rates, deterrence, unemployment, GMM
    JEL: Z00
    Date: 2016–05–07
  16. By: Chavaz, Matthieu (Bank of England)
    Abstract: Using exogenous variation in exposure to hurricanes, this article explores how differently diversified US banks lend during the protracted recovery from a major downturn. Compared to diversified banks, local banks (i) originate a higher share of new mortgage and small business loans in affected areas, but (ii) sell a higher share of the new mortgages into the secondary market. These results suggest a pattern of specialization, whereby loans in affected areas are increasingly originated by banks with special abilities or incentives to seize opportunities in a distressed market, but increasingly transferred to agents which can better support the associated risk.
    Keywords: Bank lending; recovery; diversification; securitization; mortgage lending; Home Mortgage Disclosure Act (HMDA).
    JEL: G18 G21
    Date: 2016–09–23
  17. By: Gokan, Toshitaka; Kuroiwa, Ikuo; Laksanapanyakul, Nuttawut; Ueki, Yasushi
    Abstract: Examining the spatial structure of clusters is essential for deriving regional development policy implications. In this study, we identify the manufacturing clusters in Cambodia, the Lao People's Democratic Republic, and Thailand, using two indices—global extent (GE) and local density (LD)—as proposed by Mori and Smith (2013). We also analyze four different combinations of these indices to highlight the spatial structures of industrial agglomerations. Since industrial clusters often spread over administrative boundaries, the GE and LD indices—along with cluster mapping—display how the detected clusters fit into specific spatial structures.
    Keywords: Manufacturing industries, Industrial structure, Industrial agglomeration, Cluster analysis, Cambodia, Lao PDR, Thailand
    JEL: L60 R12 R14
    Date: 2016–09
  18. By: Figlio, David; Giuliano, Paola; Ozek, Umut; Sapienza, Paola
    Abstract: We use remarkable population-level administrative education and birth records from Florida to study the role of Long-Term Orientation on the educational attainment of immigrant students living in the US. Controlling for the quality of schools and individual characteristics, students from countries with long term oriented attitudes perform better than students from cultures that do not emphasize the importance of delayed gratification. These students perform better in third grade reading and math tests, have larger test score gains over time, have fewer absences and disciplinary incidents, are less likely to repeat grades, and are more likely to graduate from high school in four years. Also, they are more likely to enroll in advanced high school courses, especially in scientific subjects. Parents from long term oriented cultures are more likely to secure better educational opportunities for their children. A larger fraction of immigrants speaking the same language in the school amplifies the effect of Long-Term Orientation on educational performance. We validate these results using a sample of immigrant students living in 37 different countries.
    Keywords: Cultural Transmission; education; Long-Term Orientation
    JEL: I20 I24 J15 Z1
    Date: 2016–09
  19. By: Amélie Boutinot (ISG - Institut Supérieur de Gestion - Institut Supérieur de Gestion); Shahzad Ansari (Judge Business School - University of Cambridge (UK)); Mustapha Belkhouja (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Vincent Mangematin (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM))
    Abstract: While the notion of reputation has attracted much scholarly interest, few studies have addressed the strategic issue of reputational multiplicity and managing the interactions among different types of reputations. We suggest that an organization can have several stakeholderspecific reputations – peer, market, and expert – and that reputational spillover effects (the continued influence of one reputation on another) matter at the organizational level. We test reputational spillovers on 42 French architecture companies over a period of 30 years. Our results show that over time, the three reputations interact with each other, generating positive spillovers, with the exception of market and expert reputations. We contribute by explaining how interconnected organizational reputations among different stakeholders can interact over time, how companies can strategically manage reputational spillovers, and how such spillovers influence organizations in creative and professional industries.
    Keywords: Reputation,Spillover effects,Selection-system theory,Creative industries,Architecture
    Date: 2015
  20. By: Gokan, Toshitaka; Kuroiwa, Ikuo; Nakajima, Kentaro; Sakata, Shozo
    Abstract: The formation of industrial clusters is critical for sustained economic growth. We identify the manufacturing clusters in Vietnam, using the Mori and Smith (2013) method, which indicates the spatial pattern of industrial agglomerations using the global extent (GE) and local density (LD) indices. Spatial pattern identification is extremely helpful because industrial clusters are often spread over a wide geographical area and the GE and LD indices—along with cluster mapping—display how the respective clusters fit into specific spatial patterns.
    Keywords: Manufacturing industries, Industrial structure, Industrial agglomeration, Cluster analysis, Vietnam
    JEL: L60 R12 R14
    Date: 2016–08
  21. By: Hanley Chiang; Moira McCullough; Stephen Lipscomb; Brian Gill
    Abstract: This report describes findings from a study examining the accuracy of four test-based measures of principal performance for predicting principals’ contributions to student achievement in future years.
    Keywords: Administrator Effectiveness, Administrator Evaluation, Principals, Student Achievement, Academic Achievement, Student Achievement Growth
    JEL: I
  22. By: Mundra, Kusum (Rutgers University); Rios-Avila, Fernando (Levy Economics Institute)
    Abstract: Using data from the CPS this paper examines the role of birth-country networks on immigrants' unemployment duration from 2001 to 2013. We find that networks significantly lower unemployment duration for all immigrants. Varying the effect of networks over duration categories we find that networks are more effective in lowering duration for immigrants unemployed for 1-2 months than immigrants who are unemployed for longer periods and this effect is further strengthened during the post recession period. This supports the Calvo-Armengol and Jackson hypothesis which posits that longer the agent is unemployed, less effective are her social networks in job search. Our findings are robust to different specifications.
    Keywords: social networks, immigrants, unemployment duration, Great Recession
    JEL: J61 J64 D10
    Date: 2016–09
  23. By: Hirte, Georg; Rhee, Hyok-Joo
    Abstract: We examine the working mechanisms and efficiencies of zoning (regulation of floor area ratios and land-use types) and fiscal instruments (tolls, property taxes, and income transfer), and extend the instrument choice theory to include the congestion of road and nonroad infrastructure. We show that in the spatial model with heterogeneous households the standard first-best instruments do not work because they trigger distortion of spatial allocations. In addition, because of the household heterogeneity and real estate market distortions, zoning could be less efficient than, as efficient as, or more efficient than pricing instruments. However, when the zoning enacted deviates from the optimum, zoning not only becomes inferior to congestion charges but is also likely to reduce welfare. In addition, we provide a global platform that extends the instrument choice theory of pollution control to include various types of externalities and a wide range of discrete policy deviations for any reasons beyond cost–benefit uncertainties.
    Keywords: infrastructure congestion,zoning,road tolls,property tax,instrument choice,heterogeneity,Infrastruktur,Verkehrsstau,Zoning,Maut,Grundsteuer,Heterogenität
    JEL: H21 R52
    Date: 2016
  24. By: Yilmaz, Adil; Unal, Gazanfer; Karatasoglu, Cengiz
    Abstract: Wavelet coherence of time series provide valuable information about dynamic correlation and its impact on time scales. Here, we analyze the wavelet coherence of major real estate markets data. Our paper is the first to link co-movement in terms of wavelet coherence. Here we consider USA, Canada, Japan, China and Developed Europe real estate market prices as time series.Wavelet coherence results reveal interconnected relationships between these markets and how these relationships vary in the time-frequency space. These relationships allow us to build VARMA models of real estate data which yield forecast results with small errors.
    Keywords: Real Estate Markets, REIT, Co-movement, Wavelet Coherence, Varma
    JEL: C60 F21 G11 G15
    Date: 2016–07–05
  25. By: Toke Emil Panduro (Department of Food and Resource Economics, University of Copenhagen); Cathrine Ulla Jensen (Department of Food and Resource Economics, University of Copenhagen); Thomas Hedemark Lundhede (Department of Food and Resource Economics, University of Copenhagen; Center for Macroecology, Evolution and Climate, University of Copenhagen); Kathrine von Graevenitz (Department of Environmental and Resource Economics, Centre for European Economic Research (ZEW)); Bo Jellesmark Thorsen (Department of Food and Resource Economics, University of Copenhagen; Center for Macroecology, Evolution and Climate, University of Copenhagen)
    Abstract: The hedonic pricing method has been used extensively to obtain implicit prices for availability of urban green space, but few hedonic studies have obtained households’ preference parameters. We estimate willingness to pay functions for park availability in Copenhagen using an approach that places identifying restrictions on the utility function. We do this for two different measures of park availability. We apply our results to a policy scenario and show how estimates of aggregate welfare changes are highly sensitive to the measure of park availability applied. Thus, the approach in this study applies an alternative path for estimation of demand schedules for public goods using hedonic data. The findings also stress the importance of paying attention to how public goods are defined when undertaking welfare economic policy analyses.
    Keywords: hedonic house price model, green space, preference heterogeneity, identification
    JEL: R21 Q51
    Date: 2016–09
  26. By: Laurent Dupont (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Laure Morel (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Claudine Guidat (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine)
    Abstract: Purpose-French universities can play a key role in generating Smart City approach through an innovative Public-Private Partnership dedicated to urban transformation. Methodology-We led an action-research study for five years with several research and pedagogic projects including users or citizens. Findings-The paper points out main factors of Smart City development. It also presents shared demonstrators’ characteristics including industrial scale, sustainability and citizens’ participation. Practical implications-University of Lorraine diversification strategy through the “Chaire REVES” supported by public and private partners. Social implications-At regional level, industrial-university-territorial partnerships could tackle both societal and economical issues “with”, “for”, and “by” citizens. Originality/value-Based on the Living Lab concept our case study shows a concrete regional university strategy involving: user-centric design, collaborative processes, citizens’ workshops and new financial and organizational answers enabling collaboration between private companies and public institutions. Our paper also argues that innovative public and private partnership involving users are necessary for developing smart cities.
    Keywords: Collaborative innovation, Public-Private Partnership, sustainable urban transformation, diversification strategy, shared demonstrator,Smart City, Living Lab
    Date: 2015
  27. By: Rosario Maria Ballatore (Banca d'Italia); Paolo Sestito (Banca d'Itaia)
    Abstract: In this study we investigate the relationship between student achievement and a crucial aspect of teaching: curriculum implementation strategies. More specifically, we consider three strategies representing teachers' approach in dealing with heterogeneous classes: i) spending time on the same topic until everyone understands, ii) moving on to another topic even if part of the class does not understand the previous one, and iii) spending time to revise concepts and topics already studied in the previous year. We exploit the within-student between-subjects variation in the frequency with which different teachers adopt each of the three strategies to control for constant student and class traits and for the possibility that teachers may adapt their strategies to class composition. Our findings show that spending time on the same topic until everyone understands is not associated with a better performance of less able students. On the contrary, it produces substantial achievement losses for the most able ones. Spending time revising topics studied in the previous year increases the achievement of less able students without lowering the performance of the most able ones.
    Keywords: student heterogeneity, curriculum implementation strategies
    JEL: I21 I24 C33
    Date: 2016–09
  28. By: Nieuwenhuis, Jaap (Delft University of Technology); van Ham, Maarten (Delft University of Technology); Yu, Rongqin (University of Oxford); Branje, Susan (Utrecht University); Meeus, Wim (Utrecht University); Hooimeijer, Pieter (Utrecht University)
    Abstract: According to the neighbourhood effects hypothesis, there is a negative relation between neighbourhood wealth and youths' problem behaviour. It is often assumed that there are more problems in deprived neighbourhoods, but there are also reports of higher rates of behavioural problems in more affluent neighbourhoods. Much of this literature does not take into account relative wealth. Our central question was whether the economic position of adolescents' families relative to the neighbourhood in which they lived, was related to adolescents' internalising and externalising problem behaviour. We used longitudinal data for youths between 12-21 years of age, combined with population register data. We employ between-within models to account for time-invariant confounders, including parental background characteristics. Our findings show that for adolescents, moving to a more affluent neighbourhood was related to increased levels of depression, social phobia, aggression, and conflict with father and mother. This could be indirect evidence for the relative deprivation mechanism, but we could not confirm this, and we did not find any gender differences. The results do suggest that future research should further investigate the role of individuals' relative position in their neighbourhood in order not to overgeneralise neighbourhood effects and to find out for whom neighbourhoods matter.
    Keywords: neighbourhood effects, externalising problems, internalising problems, relative deprivation, adolescents, residential mobility
    JEL: I30 R23
    Date: 2016–09
  29. By: Chiara Mussida (DISCE, Università Cattolica); Maria Laura Parisi (Dipartimento di Economia e Management, Università degli Studi di Brescia)
    Abstract: This paper analyzes the determinants of unequal income distribution across macro-regions in Italy, and whether the latest economic crisis has had an effect on income inequality within or between regions. Inequality between individuals and between families appears greatest in the south, and the crisis has exacerbated this phenomenon. Econometric analyses by population groups and by nationality suggest that high educational attainment levels and larger households contribute to increasing the household income, whereas being female and foreign tend to reduce household income. The income distribution of foreign-born individuals tends to be more asymmetric, with heavier tails, compared to that of nationals.
    Keywords: regional income inequality, household income inequality, economic crisis
    JEL: D31 F22 O15 R23
    Date: 2016–07
  30. By: Bas Karreman (Erasmus School of Economics, Erasmus University Rotterdam, The Netherlands); Martijn J. Burger (Erasmus School of Economics, Erasmus University Rotterdam, The Netherlands); Frank G. van Oort (Erasmus School of Economics, Erasmus University Rotterdam, The Netherlands)
    Abstract: Overseas Chinese communities are an important determinant in the location choice of greenfield investments made by mainland Chinese multinational enterprises across European regions. Conceptually embedded in a relational approach, this effect is shown through an empirical analysis of an exhaustive set of investment projects across NUTS-1 regions in 26 European countries for the period 2003-2010. When controlling for endogeneity bias and the embeddedness of existing Chinese economic activity, we find that the importance of overseas communities in the location choices of Chinese firms is based on increased access to strategic information. Our results confirm that the relationship between the size of an overseas Chinese community and the probability of Chinese investment is stronger for communities hosting newer generations of Chinese migrants; in addition, they partially corroborate that this relationship is stronger when the education level of the community’s Chinese migrants is higher. Our findings are particularly robust in the context of knowledge-intensive sectors and high value-added functions.
    Keywords: Overseas Chinese communities; China; Europe; greenfield FDI; relational view
    JEL: F20 L20 R30
    Date: 2016–09–30
  31. By: Wyrwich, Michael; Stuetzer, Michael; Sternberg, Rolf
    Abstract: Studies on the influence of entrepreneurial role models (peers) on the decision to start a firm ar-gue that entrepreneurial role models in the local environment (1) provide opportunities to learn about entrepreneurial tasks and capabilities, and (2) signal that entrepreneurship is a favorable career option thereby reducing uncertainty that potential entrepreneurs face. However, these studies remain silent about the role of institutional context for these mechanisms. Applying an ex-tended sender-receiver model, we hypothesize that observing entrepreneurs reduces fear of fail-ure in others in environments where approval of entrepreneurship is high while this effect is signif-icantly weaker in low approval environments. Taking advantage of the natural experiment from recent German history and using data from the Global Entrepreneurship Monitor Project (GEM), we find considerable support for our hypotheses.
    Keywords: Fear of failure, role models, peer effect, entrepreneurial intentions, Global Entrepreneurship Mon-itor, East Germany
    JEL: D1 L26 M13 P20 R23 Z13
    Date: 2016
  32. By: Jorge Davalos; Viktorija Atanasovska; Tijana Angjelkovska
    Abstract: The past two decades were characterized by high and persistent youth unemployment rates in Macedonia; this is despite the many active workfare policies addressed to the youth population. Thus, this paper contributes to the literature by investigating the impact that a longer unemployment spell has had on the labour market mismatch of young Macedonian job-seekers. The empirical analysis builds on different econometric model approaches based on the Schoolto-Work Transition Survey (SWTS) conducted by the ILO in 2012. Our results clearly suggest that longer unemployment spells lead to higher mismatches, but that such effects are heterogeneous across educational attainment groups of low, middle and highly educated young job seekers
    Keywords: Youth, unemployment, mismatch, job search duration, Macedonia.
    JEL: J24 J21 J31 J62
    Date: 2016
  33. By: Ludwig von Auer; Andranik Stepanyan; Mark Trede
    Abstract: When some industries are overrepresented in urban areas (urban concentration), some other industries must be overrepresented in rural areas (rural concentration). Existing measures of concentration do not distinguish between these different types of concentration. Instead, they rank industries according to their degree of concentration. However, knowing the concentration type is important, when investigating the forces of agglomeration that shape the geographical distribution of an industry. Therefore, the present paper proposes a new statistical approach that classifies each industry into one of seven different geographical patterns, five of which represent different types of concentration. The statistical identification of each industry’s geographical pattern is based on two Goodman-Kruskal rank correlation coefficients. The power of our approach is illustrated by German employment data on 613 different industries in 412 regions.
    Keywords: Geographical Concentration, Archetypes, Confidence Region, Goodman-Kruskal Coefficient
    JEL: R10 R12
    Date: 2016–09
  34. By: Grillitsch, Markus (CIRCLE, Lund University); Trippl, Michaela (Department of Geography and Regional Research, University of Vienna)
    Abstract: Regional economies are increasingly facing the challenge to renew their economic structures and generate innovations that break existing development paths. This calls for new innovation policy approaches that are well equipped to foster the modernisation of existing industries and nurture the development of new ones. The aim of this chapter is to provide a comprehensive place-based system failure framework for an innovation policy design that is suitable to initiate and support economic renewal processes in different region-specific contexts. Our framework rests on three pillars. The first one draws a distinction between barriers that relate to rigidities of the current industrial, knowledge and institutional structures on the one hand and impediments that hinder the emergence of new development paths on the other hand. The second conceptual cornerstone differentiates between various forms of new path development, namely path upgrading, modernization, branching, importation and new path creation. Third, to capture varying regional characteristics, we distinguish between thin, thick and specialised and thick and diversified regions. Our conceptual discussion demonstrates that each region type suffers from particular combinations of barriers to structural change. This offers a sound basis for assessing which types of new path development are most likely to occur in thin, thick and specialised and thick and diversified regions and for identifying promising policy approaches to fashion regional structural change in various regional contexts.
    Keywords: regional innovation policy; place-based system failures; regional structural change; new regional industrial path development
    JEL: O33 O38 R11 R58
    Date: 2016–10–04
  35. By: Sandra Polania-Reyes
    Abstract: Although social capital has been considered of the utmost importance for development it remains a complex and elusive concept. Different dimensions of social capital form part of the puzzle: cooperation is an individual other-regarding preference; social norms stem from beliefs about others' behavior; and the formation of such beliefs is mediated by attributes of the social network. To disentangle social capital we conduct an artefactual field experiment with 714 households at the inset of a Conditional Cash Transfer program in an urban context. To our knowledge this is the first paper that disentangles cooperation from coordination by conducting a minimum effort coordination game with Pareto ranked equilibria. Willingness to cooperate is teased out using a public goods game. By controlling for the density of network information we capture the role of connections, which is the third element of the mixture. We also look at the relation between our experimental data and traditional survey measures of social capital. Our identification strategy allows us to assess whether exposure to the program could be helping individuals overcome strategic uncertainty and select the most efficient equilibrium in the coordination game. The regressions suggest that the program helps overcome the coordination failure through different channels. In particular, the evidence suggests there is a spillover effect of the monetary incentive as it facilitates a social norm, which itself allows individuals to overcome the coordination failure. We rule out confounding factors such as individual socio-economic characteristics, social capital accumulation, willingness to cooperate and connectivity.
    Date: 2016
  36. By: Christian Basteck; Marco Mantovani; ;
    Abstract: Unsophisticated applicants can be at a disadvantage under manipulable and hence strategically demanding school choice mechanisms. Disclosing information on applications in previous admission periods makes it easier to asses the chances of being admitted at a particular school, and hence may level the playing field between applicants who differ in their cognitive ability. We test this conjecture experimentally for the widely used Boston mechanism. Results show that, absent this information, there exist a substantial gap between subjects of higher and lower cognitive ability, resulting in significant differences in payoffs, and ability segregation across schools. The treatment is effective in improving applicants’ strategic performance. However, because both lower and higher ability subjects improve when they have information about past demands, the gap between the two groups shrinks only marginally, and the instrument fails at levelling the playing field.
    JEL: C78 C91 D82 I24
    Date: 2016–09
  37. By: Gordon Burtch (University of Minnesota, Carlson School of Management, Information & Decision Sciences Department, 321 19th Ave. S., Minneapolis, MN 55408, USA); Jui Ramaprasad (McGill University, Desautels Faculty of Management, 1001 Rue Sherbrooke O, Montréal, QC H3A 1G5, Canada)
    Abstract: We empirically examine and quantify network effects on a large online dating platform in Brazil. We consider the effects of a seeding intervention by the platform operator, wherein it acquired its primary competitor and subsequently imported the competitor’s 150,000 user accounts over a 3-day period. The acquisition thus constitutes a large exogenous shock the composition of the acquiring platform’s user base. We estimate the effect of the shock on the rate of subsequent enrollments and exits amongst heterosexual users across 120 cities. Bearing in mind that the purchased users were exclusively heterosexual, we employ a difference-in-differences specification in which homosexual enrollment and exit rates serve as plausible controls. Our estimates indicate that the treatment increased the rates of both enrollment and exit, for both genders, with a net positive effect that translated to a 22% increase in short-term revenue for the platform. Further, we find that the response amongst male users was significantly stronger. When we consider that female participation was being fully subsidized by the acquiring platform, this result is consistent with the idea that subsidies and seeding strategies are substitutes, rather than complements. Finally, we explore nuances of the observed effects, quantifying local features. In particular, we show that the treatment effect varied significantly, depending on age differences and the degree of co-location between new and existing users.
    Keywords: online dating, network effects, natural experiment, differences in differences,
    JEL: L14
    Date: 2016–08
  38. By: Yeon, Jung-In; Pyka, Andreas; Kim, Tai-Yoo
    Abstract: In this paper, we examine the experiences of the Korean economy alongside theoretical knowledge of economic development and structural change. To demonstrate the generalized hypotheses on structural change, input-output tables of Korea, from 1960 to 2010, were analyzed. Our interest in taking time series of input-output tables originates from the following two issues. Firstly, we raise the question of whether Korean industrial structure changes have followed a certain pattern of structural shifts as well as increasing variety. Secondly, if so, it is questioned how the meso-level conditions for economic development could be explained from such a pattern. To search for answers, we adopt a model of the economic development by the creation of new sectors, named TEVECON, as our theoretical framework. Using this growth model, we derive hypotheses about how the structural change could affect economic development, and then we determine how the empirical analysis of the Korean economy verifies and deepens our understanding of structural change and economic development. This paper contributes to the empirical validation of the theoretical knowledge of economic development by the emergence of key sectors and the creation of new industries.
    Keywords: Structural change,Increasing variety,Unrelated variety,Input-output table,Korean economy,TEVECON model,Economic development,Economic growth
    JEL: D31 D62 O10 O30
    Date: 2016
  39. By: Ani Harutyunyan; Omer Ozak
    Abstract: This research explores the effects of culture on technological diffusion and economic development. It shows that culture's direct effects on development and barrier effects to technological diffusion are, in general, observationally equivalent. In particular, using a large set of measures of cultural values, it establishes empirically that pairwise differences in contemporary development are associated with pairwise cultural differences relative to the technological frontier, only in cases where observational equivalence holds. Additionally, it establishes that differences in cultural traits that are correlated with genetic and linguistic distances are statistically and economically significantly correlated with differences in economic development. These results highlight the difficulty of disentangling the direct and barrier effects of culture, while lending credence to the idea that common ancestry generates persistence and plays a central role in economic development.
    Keywords: Comparative economic development, Economic growth, Culture, Barriers to technological diffusion, Genetic distances, Linguistic distances
    Date: 2016

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