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on Urban and Real Estate Economics |
| By: | He, Ming (Division of Economics, Xi'an Jiaotong-Liverpool University); Chen, Yang (Division of Economics, Xi'an Jiaotong-Liverpool University); van Marrewijk, Charles (Division of Economics, Xi'an Jiaotong-Liverpool University) |
| Abstract: | We analyze the consequences of China's massive transformation of cities for firm-level productivity and technology spillovers at the detailed district/county level for the Electric Apparatus sector. We identify three types of regions (metro core, metro ring, and periphery) and three types of transformation variables (modernization, mobility, and economic regional disparity). Using a spatial autoregressive model which allows us to distinguish between spillovers within the region and between neighboring regions, and after controlling for the standard results found in the literature, we nd that: modernization and mobility contribute signifficantly to interregional technology spillovers with neighboring regions, while economic regional disparity signifficantly discourages such types of spillovers and instead encourages spillovers with firms within the region. Of the three transformation variables, disparity explains most of the variance in spillover e ects, followed by mobility and modernization. |
| Date: | 2017–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:xjt:rieiwp:2017-01&r=ure |
| By: | Tomasz Piskorski; Alexei Tchistyi |
| Abstract: | We develop a tractable general equilibrium framework of housing and mortgage markets with aggregate and idiosyncratic risks, costly liquidity and strategic defaults, empirically relevant informational asymmetries, and endogenous mortgage design. We show that adverse selection plays an important role in shaping the form of an equilibrium contract. If borrowers' homeownership values are known, aggregate wages and house prices determine the optimal state-contingent mortgage payments, which efficiently reduces the costs of liquidity default. However, when lenders are uncertain about homeownership values, the equilibrium contract only depends on house prices and takes the form of a home equity insurance mortgage (HEIM) that eliminates the strategic default option and insures the borrower's equity position. Interestingly, we show that widespread adoption of such loans has ambiguous effects on the homeownership rate and household welfare. In economies in which recessions are expected to be severe, the HEIM equilibrium Pareto dominates the equilibrium with fixed-rate mortgages. However, if economic downturns are not severe, HEIMs can lower the homeownership rate and make some marginal home buyers worse-off. We also note that adjustable-rate mortgages (ARMs) may share some benefits with HEIMs, which may help justify a high concentration of ARMs among riskier borrowers. Finally, we find that unrestricted competition between lenders may lead to a non-existence of equilibrium. This suggests that government-sponsored enterprises may stabilize mortgage markets by subsidizing certain mortgage contracts. |
| JEL: | D1 D5 E44 G01 G21 G28 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23452&r=ure |
| By: | Natalia Bartkowiak-Bakun (Poznan University of Life Sciences) |
| Abstract: | One of the major dilemmas of regional policy is the answer to the question whether the growth should be concentrated at the core or if there is growth and development potential in each territory (Barca, McCann, Rodríguez-Pose 2012, p. 149). The arguments which refer to the place-based policy stress the fact that making use of the unused potential of intermediate and poorly developed territories may actually influence the local and national level of development (Farole et al., 2011). Rural areas, especially peripheral areas, are undoubtedly the territories of unused potential. The aim of the research is to measure the socioeconomic development, including the spatial diversification leading to the development of rural peripheral areas. Development is a multidimensional phenomenon. Therefore, its level will be determined by means of the synthetic feature. The synthetic feature will be used as the starting point for identification of peripheral areas and their delimitation. The results of the analysis showed significant differences level of socioeconomic development of rural areas in the western borderland. The research findings did not show a simple dependence between rural development and the share of former state-owned farms in the communes. Areas with a high share of former state-owned farms could be found both in the group of best and least-developed communes. Due to the range of research it is illegitimate to make other than intuitive inferences. Thus, we can intuitively indicate that the following group of factors triggered the process of development and helped to break the barriers resulting from the liquidation of state-owned farms: location in an urban agglomeration, natural and tourist values as well as the activity of local authorities. The research should be continued in order to identify the factors and pathways of development in individual areas under analysis. |
| Keywords: | peripheral areas, rural areas, the western borderland, local development |
| JEL: | O21 Q15 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no10&r=ure |
| By: | Michael F. Lovenheim; Patrick Walsh |
| Abstract: | We examine whether changes in the local school choice environment affect the amount of information parents collect about local school quality, using data on over 100 million searches from greatschools.org. We link monthly data on search frequency in local “Search Units” to information on changes in open enrollment policies, tuition vouchers, charitable scholarship tax credits, tuition tax credits, local choice opportunities driven by No Child Left Behind sanctions and charter school penetration. Our results indicate that expansions in school choice rules and opportunities in a given area have large, positive effects on the frequency of searches done for schools in that area. These estimates suggest that the information parents have about local schools is endogenous to the choice environment they face, and that parental information depends not just on the availability of data, but also the incentive to seek and use it. |
| JEL: | H75 I20 I28 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23445&r=ure |
| By: | Aliprantis, Dionissi (Federal Reserve Bank of Cleveland) |
| Abstract: | This paper performs a subgroup analysis on the effect of receiving a Moving to Opportunity (MTO) housing voucher on test scores. I find evidence of heterogeneity by number of children in the household in Boston, gender in Chicago, and race/ethnicity in Los Angeles. To study the mechanisms driving voucher effect heterogeneity, I develop a generalized Rubin Causal Model and propose an estimator to identify transition-specific Local Average Treatment Effects (LATEs) of school and neighborhood quality. Although I cannot identify such LATEs with the MTO data, the analysis demonstrates that membership in a specific demographic group is more predictive of voucher effects than is the group’s average change in school or neighborhood quality. I discuss some possible explanations. |
| Keywords: | Two-Dimensional Treatment; Rubin Causal Model; School Effect; Neighborhood Effect; Local Average Treatment Effect; Education Production Function; EPF; Moving to Opportunity; |
| JEL: | C31 C36 C50 D04 I20 I38 R23 |
| Date: | 2017–05–12 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedcwp:1707&r=ure |
| By: | Juan Carlos Cuestas; Merike Kukk |
| Abstract: | This paper investigates the mutual dependence between housing prices and housing credit in Estonia, a country which experienced rapid debt accumulation during the 2000s and big swings in house prices during that period. We use Bayesian econometric methods on data spanning 2000–2015. The estimations show the interdependence between house prices and housing credit. More importantly, housing credit shocks had a stronger effect on house prices in the period of declining credit turnover. The asymmetry in the linkage between housing credit and house prices highlights important policy implications, in that if central banks increase capital buffers during good times, they can release credit conditions during hard times to alleviate the negative spillover into house prices and the real economy |
| Keywords: | house prices, housing credit, credit cycle, asymmetries, Bayesian |
| JEL: | E32 E44 E51 G21 R21 R31 |
| Date: | 2017–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:eea:boewps:wp2017-2&r=ure |
| By: | Erik O. Kimbrough; Andrew D. McGee; Hitoshi Shigeoka |
| Abstract: | Classroom peers are believed to influence learning by teaching each other, and the efficacy of this teaching likely depends on classroom composition in terms of peers’ ability. Unfortunately, little is known about peer-to-peer teaching because it is never observed in field studies. Furthermore, identifying how peer-to-peer teaching is affected by ability tracking—grouping students of similar ability—is complicated by the fact that tracking is typically accompanied by changes in curriculum and the instructional behavior of teachers. To fill this gap, we conduct a laboratory experiment in which subjects learn to solve logic problems and examine both the importance of peer-to-peer teaching and the interaction between peer-to-peer teaching and ability tracking. While peer-to-peer teaching improves learning among low-ability subjects, the positive effects are substantially offset by tracking. Tracking reduces the frequency of peer-to-peer teaching, suggesting that low-ability subjects suffer from the absence of high-ability peers to teach them. |
| JEL: | C91 I24 I28 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23439&r=ure |
| By: | Lamont K. Black; John Krainer; Joseph B. Nichols |
| Abstract: | When collateral is safe, there are less opportunities for things to go wrong. We examine matching between collateral and creditors in the commercial real estate mortgage market by comparing loans in commercial mortgage backed securities (CMBS) conduits and bank portfolios. We model CMBS financing as lower cost but less informed, such that only safe collateral is funded by CMBS. This prediction is tested using the 2007-2009 shutdown of the CMBS market as a natural experiment. The loans funded by banks that would have been securitized are less likely to default or be renegotiated, indicating that the securitization channel, when available, funds safe collateral. |
| Keywords: | Collateral ; Commercial banking ; Commercial real estate ; Securitization |
| JEL: | G21 G24 G33 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2017-56&r=ure |
| By: | Agnieszka Malkowska (Cracow University of Economics, Poland); Agnieszka Telega (Cracow University of Economics, Poland); Michal Gluszak (Cracow University of Economics, Poland); Bartlomiej Marona (Cracow University of Economics, Poland) |
| Abstract: | Research background: Real estate and urban economics literature is abundant in studies discussing various types of property taxes and their characteristics. Growing area of research focused on tax equity, tax competition, and tax mimicking. Recently, due to substantial developments in spatial and regional economics more attention was drawn to spatial effects. Empirical results are focused on spatial interaction and diffusion effects, hierarchies of place and spatial spillovers. Property tax system in Poland differs from those utilized in the majority of developed countries. As a consequence, property tax policy at local government level (including tax competition and tax mimicking effects) in Poland can differ substantially from those found in previous research in US and other European countries. There are few studies addressing the problem of tax competition and tax mimicking in Poland from empirical perspective. Purpose of the article: In the article we explore spatial dependences in property taxation. We identify clustering or dispersion of high and low values of the tax rates within major metropolitan areas in Poland. The effects can indicate presence of tax mimicking among municipalities in given metropolitan areas. Methodology/methods: We analyze the panel data from 304 municipalities in 10 metropolitan areas in Poland from year 2007 to 2016. The data covers four property tax rates: (1) on residential buildings (2) on buildings used for business purpose (3) on land used for business purpose (4) on land for other uses. To explore spatial distribution of rates we used global and local spatial autocorrelation indicators (Moran’s I statistic and LISA). Findings: The results suggest the presence of spatial correlation within metropolitan areas. We also found significant differences between metropolitan areas. The results of the study fill the gap in empirical research concerning property tax mimicking in Poland. |
| Keywords: | tax autonomy; property taxation; tax mimicking; spatial interdependence; Poland |
| JEL: | H2 H71 R5 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no69&r=ure |
| By: | Ivo Bischoff (University of Kassel); Julia Hauschildt (University of Kassel) |
| Abstract: | The German apprenticeship system is widely known throughout the world. We analyze expenditures on vocational schools on county level using data from 213 West-German counties between 2001 and 2006. We use spatial econometrics to test for spatial correlation in counties’ expenditure on vocational schools but find no evidence that vocational schools serve as instrument in inter-county competition. While the theoretical literature suggests that spending should be higher for apprentices from small firms, we find a negative relationship between the share of apprentices from small firms and the expenditures per pupil. Expenditures are found to increase in the share of Christian Democrats in the county council. |
| Keywords: | vocational schools, German apprenticeship system, local public finance, spatial econometrics |
| JEL: | H75 R51 R58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201722&r=ure |
| By: | Grant Jacobsen (University of Oregon) |
| Abstract: | This paper presents evidence on the distributional effects of energy extraction by examining the recent U.S. energy boom. The boom increased local wage rates in almost every major occupational category. The increase occurred regardless of whether the occupation experienced a corresponding change in employment, suggesting a more competitive labor market that benefited local workers. Local housing values and rental prices both increased, thereby benefiting landowners. For renters, the increase in prices was completely offset by a contemporaneous increase in income. The results indicate that bans on drilling have negative monetary consequences for a large share of local residents. |
| Keywords: | NAFTA, oil, natural gas, hydraulic fracturing, fracking, resource extraction, labor market effects, resource curse, Dutch disease, wage rates, housing values, rental prices |
| JEL: | J23 Q33 R31 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:upj:weupjo:17-271&r=ure |
| By: | Jaroslaw Czerski (Instytut Analiz Monitor Rynku Nieruchomosci); Michal Gluszak (Uniwersytet Ekonomiczny w Krakowie); Robert Zygmunt (Uniwersytet Rolniczy im. Hugona Kollataja w Krakowie) |
| Abstract: | Research background: There are several methods to construct a price index for infrequently traded real estate assets (mainly residential, but also office and land). The main concern to construct a valid and unbiased price index is to address the problem of heterogeneity of real estate, or put differently to control for both observable and unobservable quality attributes. Most frequently used is probably hedonic regression methodology (classic, but recently also spatial and quantile regression). An alternative approach to control for unobservable differences in assets’ quality is provided by repeat sales methodology, where price changes are tracked based on differences in prices of given asset sold twice (or multiple times) within the study period. The later approach is applied in famous S&P CoreLogic Case-Shiller house price indices. Purpose of the article: The goal of the paper is to assess the applicability of repeat sales methodology for a major housing market in Poland. Previous studies used hedonic methodology or mix adjustment techniques and applied for major metropolitan areas. Most known example is a set of quarterly house price indices constructed by NBP – especially for primary and secondary market. The repeat sales methodology has not been adopted with significant success to date – mainly because of concern regarding relative infrequency of transactions on housing market in most metropolitan areas (thus potentially small sample of repeated sales). Methodology/methods: The study uses data on repeat sales of residential transactions in Krakow from 2003 to 2015. We apply different specifications of repeat sales index construction and compare respective values to hedonic price index for Krakow estimated by NBP. Findings: Findings suggest that repeat sales house sales indices can be used to track price dynamics for major metropolitan areas in Poland. The study suggests problems that need to be addresses in order to get unbiased results – mainly data collection mechanism and estimation procedure. |
| Keywords: | repeat sales index, Poland, housing market, house price, real estate |
| JEL: | C18 C43 R31 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no29&r=ure |
| By: | Gabriela Kolvekova (Technical University of Kosice, Slovak Republic); Gabriela Kolvekova (Technical University of Kosice, Slovak Republic) |
| Abstract: | Urban areas are as important as rural ones for regional development. This paper observes especially the position of cities, urban areas in the context of global value chains – GVC. Global value chains reflect specialization and labour division of companies, mostly multinational enterprises – MNEs. MNEs can be considered for flagships of some industries. Such flagship influence suppliers and purchasers. MNEs are a part of networks or do have got an access to such networks that combine dispersion of the value chain the boundaries of the firm and across national borders and. The impetus of this humble work was to look at position of Slovak cities (Bratislava, Žilina) in order to look for sectors that can help to develop the city and its adjacent regions, particularly cross-border regions. The paper discussed how the attribute of the cross-border regions gives the cities more advantageous position in GVC. Applying method of location quotient allowed to shed a light on GVC, which cities participate in. Some cities were in a position to take advantage of participation in GVC. Examined cities are located in the western part of Slovak Republic. Discussion about the attribute of the cross-border regions can stimulate new ideas for finding causalities in city sprawl or in specialization patterns in industrial structure of the city. Discussion further fosters the comparison of two cities strengths and weakness of each of them that were summarized in terms of employment and industrial exploitation of GVC. It is the first finding and value added of the paper. Second one, method of location quotient is simple, but provides clear evidence on the regional development or decline in particular industries and time of observation. |
| Keywords: | employment, value chains, industry |
| JEL: | J21 Q01 R12 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no45&r=ure |
| By: | Marcin Niemiec (University of Agriculture in Krakow); Anna Szelag-Sikora (University of Agriculture in Krakow); Jakub Sikora (University of Agriculture in Krakow); Michal Cupial (University of Agriculture in Krakow); Joanna Rorat (University of Agriculture in Krakow) |
| Abstract: | Research background: Local development is a harmonized and systematic activity of the local community, local authorities and other entities operating in a municipality, aimed at creating and improving the usability of existing municipalities. The primary factor in the local development is investments undertaken by the municipality. The financial reflection of these activities is the amount of investment expenditure. The amount of a municipality's income, its development strategy and the expectations of the local communities influence both the level of investment expenditure and structure, which is diversified both in terms of time and space. Purpose of the article: The aim of the study was to determine the spatial distribution of total funds allocated for investment, and investments in transport and communications in the municipalities of Slaskie Voivodship. Spatial relationship was also determined with the Moran's I statistic. The scope of work included creating a spatial database of the examined region at the level of basic local government units, i.e. 167 municipalities. The data were obtained from the studies of official statistics for the years 2008, 2011 and 2014. Methodology/methods: Based on information contained in attribute data sheets, along with the postal codes of municipalities, a spatial database was created in the program ArcView. The analyzed maps were prepared in the GIS program ArcView. For better illustration and reading of detailed data from the prepared maps, the attribute variables were divided into groups using the Jenks method. With it, classes could be determined by comparing the sum of the squares of the differences. The developed classes can also be called a natural border of the division. Based on the prepared spatial database, an analysis was performed with the program R-cran, using Moran's I statistics. Moran's I statistic determines the differences and similarities between the two objects, and allows analyzing the researched area.Findings: With relation to the analysis of the total funds allocated for investment, the least among the investment periods studied was the year 2008. Noticeable in this period is the largest number of municipalities included in class I (142 municipalities), with the investment range 0 - 6,510,016.26 zloty. The developed spatial distribution shows that municipalities concentrated in the central part of the voivodship make up an island of high investment funds. These communes are located in the Upper Silesia Agglomeration, with a high population density. High values are also noticeable in large urban centers such as Czestochowa in the north of the voivodship, and Bielsko-Biala in the south. |
| Keywords: | investment funds, municipality, spatial autocorrelation, GIS, Moran's I statistics |
| JEL: | C19 H76 R12 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no157&r=ure |
| By: | Tom Broekel Author-X-Name-First: Tom; Wladimir Mueller Author-X-Name-First: Wladimir |
| Keywords: | proximities, knowledge networks, gatekeeper, R&D subsidies, critical links |
| JEL: | D85 L14 O33 R10 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1711&r=ure |
| By: | Funke, Michael; Kirkby, Robert; Mihaylovski, Petar |
| Abstract: | We analyse the effects of macroprudential and monetary policies and their interactions using an estimated dynamic stochastic general equilibrium (DSGE) model tailored to New Zealand. We find that the main historical drivers of house prices are shocks specific to the housing sector. While our estimates show that monetary policy has large spillover effects on house prices, it does not appear to have been a major driver of house prices in New Zealand. We consider macroprudential policies, including the loan-to-value restrictions that have been implemented in New Zealand. We find that loan-to-value restrictions reduce house prices with negligible effects on consumer prices, suggesting that they can be used without derailing monetary policy. We estimate that the loan-to-value restrictions imposed in New Zealand in 2013 reduced house prices by 3.8 per cent and that greater forward guidance on their duration would have made them more effective. |
| Keywords: | Macroprudential policies, Housing, DSGE, Bayesian estimation, New Zealand, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:vuw:vuwecf:6354&r=ure |
| By: | Avraamova, Elena (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Klyachko, Tatiana (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Loginov, Dmitriy (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Tokareva, Galina (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | The material presents the results of a questionnaire survey of teachers of general education organizations (schools, gymnasiums, lyceums) in the framework of monitoring the effectiveness of school education conducted by the Center for Continuing Education Economics of Institute of Applied Economic Research RANEPA in 2016. 2206 school teachers located in urban settlements and rural areas of the Chelyabinsk region, Altai and Stavropol territories. The positions of teachers on a wide range of issues related to the general education problem are considered: the personnel situation in schools, the quality of teaching, the professional development of the teacher's corps, the requirements for the modern teacher, the material position and social positioning of teachers, and the satisfaction of teachers with their professional activities. Particular attention is paid to the question of what qualitative changes have occurred in school education as a result of organizational and economic transformations in this area, namely, whether the level of teachers' professionalism has increased in the face of increasing wages. |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:031707&r=ure |
| By: | Amy Ellen Schwartz (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244); Michah W. Rothbart (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244) |
| Abstract: | This paper investigates the impact of extending free school lunch to all students, regardless of income, on academic performance in New York City middle schools. Using a difference-in-difference design and unique longitudinal, student level data, we derive credibly causal estimates of the impacts of “Universal Free Meals” (UFM) on test scores in English Language Arts (ELA) and mathematics, and participation in school lunch. We find UFM increases academic performance by as much as 0.059 standard deviations in math and 0.083 in ELA for non-poor students, with smaller, statistically significant effects of 0.032 and 0.027 standard deviations in math and ELA for poor students. Further, UFM increases participation in school lunch by roughly 11.0 percentage points for non-poor students and 5.4 percentage points for poor students. We then investigate the academic effects of school lunch participation per se, using UFM as an instrumental variable. Results indicate that increases in school lunch participation improve academic performance for both poor and non-poor students; an additional lunch every two weeks increases test scores by roughly 0.08 standard deviations in math and 0.07 standard deviations in ELA. Finally, we explore potential unintended consequences for student weight outcomes, finding no evidence that UFM increases probability of obesity or overweight, or BMI. Results are robust to an array of alternative assumptions about sample and specifications. |
| Keywords: | School Food, Academic Performance, Free Lunch, Childhood Obesity |
| JEL: | I24 I38 H52 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:max:cprwps:203&r=ure |
| By: | Slawomira Hajduk (Bialystok University of Technology) |
| Abstract: | Research background: An efficient and effectively functioning transport in the city is of great importance both for the people residing in its territory, as well as companies doing business there. However, apart from a positive impact, transport also carries many social costs including congestion, traffic accidentsand a negative influence on the natural environment. Consequently, urban transport is an increasingly important area of city management. Purpose of the article:The aim of this study is to analyze and to assess the transport technological effectivenessin selected Polish cities.The author received a ranking of cities and identified ways to improve the efficiency. Methodology:The test procedure used non-parametric method of Data Envelopment Analysis. Data for analysis were draw from the Local Data Bank of the Central Statistical Office defining expenses in the transport section as well as data on the condition and use of transport infrastructure. The calculations have been made using Frontier Analyst Application software. The performance results were determined using the BCC model. Findings& Value added:The main result is the author’s rankingof transport effectivenessin Polish cities. The analysis showed that urban transport characterized by a rather low technological effectiveness. |
| Keywords: | technological effectiveness, urban transport, city management. |
| JEL: | O18 R58 C10 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no35&r=ure |
| By: | Andrés Alegría,; Rodrigo Alfaro; Felipe Córdova |
| Abstract: | This paper shows how central bank communications can play a role in macroprudential supervision. We document how specific warnings about real estate markets, published in the Central Bank of Chile’s Financial Stability Reports of 2012, affected bank lending policies. We provide empirical evidence of a rebalancing in the characteristics of mortgage loans granted, with a reduction in the number of mortgage loans with high loan-to-value ratios (LTV), along with an increase in loans with lower LTV ratios. |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:chb:bcchwp:798&r=ure |
| By: | Park , Young Ho (Korea Institute for International Economic Policy); Bang , Ho-Kyung (Korea Institute for International Economic Policy); Cheong , Jae Wan (Korea Institute for International Economic Policy); Lee , Boyan (Korea Institute for International Economic Policy); Kim , Yejin (Korea Institute for International Economic Policy) |
| Abstract: | Cities and urban areas function as engines for economic growth as they mobilize labor and capital to create economies of scale through the agglomeration of production factors and increase productivity. They also create a consumer base through whose consumption of manufactured products encourages economic growth. Consequently, cities generate economic value that amount up to 80 percent of the global GDP. They also expand as rural labor is pushed out as a result of green innovation and technological development. Interestingly, Africa's cities have expanded neither through industrialization nor technological innovation. Africa's urban population is relatively small compared to other regions of the world but its growth is expected to accelerate in the near future. However, this rate of expansion and attention is unaccompanied by an improvement in physical and institutional infrastructure. As a result, Africa's urban areas are sprawled by the expansion of slums while social infrastructure such as road, power, water and sanitation, and industrial production facilities is far from sufficient. As Africa's urbanization comes with many side effects triggered by the infrastructure deficit, the development of economic and social infrastructure could aid its economic transformation. Using the various methods of pooled OLS, fixed effects model and system GMM, estimations on the future demand for infrastructure in the road, water and sanitation, and power sectors were conducted. Results indicate that demand is highest in the power sector followed by road and then by water and sanitation. Based on Korea's experience and expertise and in consideration of the calculated estimations, Korea can cooperate with Africa by developing policies for urban planning (soft infrastructure), building physical infrastructure (hard infrastructure), and providing assistance in the establishment of industrial complexes. Detailed examples include reforming land regulation systems, establishing the Intelligent Transport System (ITS) and utilizing co-financing capital for infrastructure development. |
| Keywords: | Africa; Urbanization; Infrastructure |
| Date: | 2017–05–18 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2017_011&r=ure |
| By: | Zhu, Xiwei (School of Economics, Zhejiang University); Liu, Ye (School of Economics, Zhejiang University); He, Ming (Division of Economics, Xi'an Jiaotong-Liverpool University); Luo, Deming (School of Economics, Zhejiang University); Wu, Yiyun (School of Economics, Zhejiang University) |
| Abstract: | This article studies the synergy effect of entrepreneurship on China’s industrial clusters. We propose an extension to Duranton and Overman’s (2005) method which enables us to delimit industrial clusters in space. The empirical model is identified with historical measures of local entrepreneur potential in the spirit of Chinitz (1961). We find that measures of entrepreneurship contribute significantly to cluster formation, cluster size, and cluster strength. Access to sea ports stimulates industrial concentration but agricultural legacy has the opposite effect. Light industries have more clusters which are also larger and stronger. Clusters also benefit from historical measures of market potential, localization/urbanization economies, and urban population density. Most of the results are robust to alternative instrumental strategies. Finally, we find evidence that the synergy effect is stronger where the local conditions are favorable to clusters. |
| Date: | 2017–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:xjt:rieiwp:2017-05&r=ure |
| By: | Juan Jung (AQR-IREA, University of Barcelona); Enrique López-Bazo (AQR-IREA, University of Barcelona) |
| Abstract: | This paper analyses the incidence of broadband on regional productivity in Brazil, intending to find out if the economic impact is uniform across all territories of the country. The possibility of performing a regional approach, instead of the usual country-level analysis, means an opportunity to disentangle the economic impact of broadband at territories which share a common institutional and regulatory framework as are the regions inside a country. Results suggest that the impact of broadband on productivity is positive although not uniform across regions. On the one hand, it seems to depend on connection quality and network effects. Faster download speed and critical-mass accounting for network externalities in the region enhance the economic impact of broadband. On the other hand, higher productivity gains are estimated for the less developed regions. The fact that the less productive regions in Brazil seem to be benefiting more from broadband may suggest that it can constitute a factor favoring regional convergence in the country. |
| Keywords: | Broadband, Information and Communication Technologies, Regional Productivity JEL classification: O33, O47, R11 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:aqr:wpaper:201704&r=ure |
| By: | Michal Bitner (Warsaw University, Warsaw); Jacek Sierak (Warsaw University, Warsaw) |
| Abstract: | Research background: Development policy in Poland is based on various strategic documents, and it utilizes both the national resources and the European funds. Managing development at the local level is an important element of this policy. Many facets of this management are of incessant interest to the theory and practice of public finance. One of undisputed findings is the relationship between development and increase in competitiveness. However there are no studies showing the relationship between the shape of local government expenditure policy and increase of competitiveness at the local level. Purpose of the article: The paper is focused on demonstrating the importance of specific groups of public expenditure implemented by local government units for development processes at the local level. The authors try to answer the question whether the implementation of certain local budget expenditure positively impacts the level of local government tax revenue, which determine the ability to provide public services, while creating a boost to the growth of competitiveness. Methodology/methods: On the basis of international consensus on the impact of individual factors on the competitiveness measured at the regional level, the authors propose the concept of public developmental expenditure and they adjust it to current standards of budget reporting. In turn, the indicator of tax revenue per capita was chosen to measure the achievement of the objectives of development policy at the local level. The study covers all major cities in Poland (poviat-cities). The authors calculate the volume of the developmental expenditure over the reference period in each city covered by the study as well as the average dynamics of tax revenue per capita. Regression analysis constitutes the essential part of the study. Findings: The observations that had been made, allowed to draw some conclusions regarding both the usefulness of proposed classification of developmental expenditure for the processes of planning, monitoring and evaluation of development strategies and the importance of developmental expenditure for the growth of competitiveness. The proper allocation of budgetary resources in developmental projects should lead in the long run to the growth of local economy and thus also to increase in local budget revenue. |
| Keywords: | development policy; local government budgets; developmental expenditure; competitiveness; tax revenue |
| JEL: | H72 H76 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no111&r=ure |
| By: | Mkrtchyan, Nikita (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Florinskaya, Yulia (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | It is believed that the existing level of spatial mobility in Russia is low, which negatively affects the country's socio-economic development. At different levels - federal and regional - measures are being taken to help citizens move to other areas, but are they effective? During the focus groups, interviews with managers and migrants, we tried to study the widespread practices of in-country migration, identify the main barriers to it, and formulate measures that would enhance the possibility of free movement of citizens for a better realization of individual human capital. |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:031714&r=ure |
| By: | Jan Polcyn (Stanislaw Staszic University of Applied Sciences in Pila, Poland) |
| Abstract: | There may be a significant correlation between the number of pupils in a school and their learning performance. Some studies point to the negative impact of schools with a large number of pupils on the educational results achieved. At the same time, the demographic crisis that has been deepening steadily for several years now represents an important motivation forrationalising the existing network of schools. The aim of the study was to determine the optimum size of schools based on the criterion of examination results expressed through educational value added. The analysis covered all comprehensive secondary schools in Poland over the2013 to 2015 period (a total of 1,943 schools). It determined the correlation between the size of a school expressed through the average number of graduates, and the results of thematura examination (the secondary schoolleaving exam in Poland) expressed through educational value added. Data for the analysis was obtained from the Section of Educational Value Added of the Educational Research Institute in Warsaw. The comprehensive secondary schools under study were divided into 5 classes, according to the criterion of the average annual number of graduates. The following analytical classes were distinguished: class A - up to 50 graduates, class B - 51-100 graduates, class C - 101-150 graduates, class D - 151 -200 graduates, class E - above 201 graduates. The analyses conducted in this study showed that the comprehensive secondary schools with over 600 pupils had the highest learning outcomes as expressed through educational value added. The lowest educational effectiveness was found in schools with less than 150 pupils. A dependency was discovered whereby the effectiveness of education increases as the number of pupils grows. Due to the lack of data concerning examination results in schools with more than 1,000 pupils (value indicated in American studies as the threshold value for positive learning outcomes), it was not possible to determine the maximum number of pupils that guarantees satisfactory learning outcomes. |
| Keywords: | number of pupils in a school, educational value added (EVA); comprehensive secondary school, socio-cultural capital |
| JEL: | A20 A21 A29 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no93&r=ure |
| By: | ITF |
| Abstract: | This report examines how different people and groups experience accessibility in cities. It reviews the latest research findings, methodologies and data sources on urban accessibility and discusses how better data and computing power can enhance accessibility analysis and mapping. The findings provide policy makers with guidance on how to make it easier for citizens to physically reach services and opportunities that matter to them, and to help build more equitable and sustainable and economically viable cities. The work for this report was carried out in the context of a project initiated and funded by the International Transport Forum's Corporate Partnership Board (CPB). CPB projects are designed to enrich policy discussion with a business perspective. Led by the ITF, work is carried out in a collaborative fashion in working groups consisting of CPB member companies, external experts and ITF staff. |
| Date: | 2017–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaac:35-en&r=ure |
| By: | Monika Banaszewska (Poznan University of Economics and Business) |
| Abstract: | Local public investments satisfy basic local communities’ needs and are crucial from the perspective of regional convergence. Against this background, investments by Polish local government pose as an interesting research subject. It is because, due to its size and dynamics, local public investments exert a considerably significant influence on the Polish economy. Self-government entities with primary responsibility for conducting local public investments in Poland are municipalities. The paper aims to identify fiscal, demographic and infrastructural determinants of municipal investment spending in Poland. I use panel data for 2412 Polish municipalities over the period 2007–2014. For institutional reasons, the sample excludes cities with county rights. The baseline specification employs two-way fixed-effects (FE) estimation that controls both for municipality and year fixed effects. To test for robustness, the sample is restricted to municipalities with up to 20,000; 10,000 and 5,000 inhabitants. For each considered sample there are four regression specifications implemented. Investment spending increases both in own revenues and grants. On the contrary, I document the negative impact of indebtedness level and the coverage of water supply and sewage systems. The coefficients on population size and the share of old inhabitants cease to be negative and statistically significant for municipalities with fewer than 10,000 inhabitants. The results indicate that, apart from fiscal capacity, the investment policies of Polish municipalities are affected by economies of scale, local communities’ preferences and infrastructural endowment. The study also shows that incurring debt should be of particular concern for supervisory and control bodies. |
| Keywords: | investment activity; municipal government; fiscal federalism |
| JEL: | D78 H72 R53 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no8&r=ure |
| By: | Beata Zatwarnicka-Madura (Cracow University of Economics, Poland) |
| Abstract: | The real estate market has attracted a lot of public interest due to its significant economic role. Changes are, however, going to abound in the nearest future as a result difficulties in accessing housing loans and amendments to the building construction laws, amongst others. This will call for even greater involvements of tenderers in the marketing communication process. Gender-related differences in the purchasing decision making process is growing in significance and should be reflected in marketing communications. The aim of the article is identify contemporary activities undertaken in marketing communications in the real estate market. The specific objective is to analyse the use of one of the most significant tools of marketing communications namely, the internet in the real estate market. The specific objective also includes seeking answers to the question if the sex of recipients of marketing messages concerning the real estate market is taken into consideration by their broadcasters. The study involved the use of literature analysis and criticism, analysis of web contents provided by tenderers of real estate as well as telephone interviews with representatives of both property developers and real estate agencies. Online marketing communications are the most important in real estate markets. Websites of real estate agencies and property developers vary a lot. Real estate tenderers, very often, make use of social media in marketing communications undertaken by them. One of the most common trend is to the use of images and not texts in marketing communications, thus creating new possibilities for communication. Very few property developers and real estate agencies exploit the knowledge of gender-related differences in the reception of marketing messages. Only few communication activities take cognisance of sex. The need for marketing communications in real estate to be directed at young customers has necessitated the engagement of new media sources in such activities. |
| Keywords: | marketing communications, real estate market, gender roles |
| JEL: | M21 M31 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no145&r=ure |
| By: | Fan, Ying; Yavas, Abdullah |
| Abstract: | The high growth rate of mortgage debt in various emerging and developed economies has captured headlines following the financial crisis. In this paper, we investigate how mortgage debt impacts household consumption behavior and various components of household consumption. Utilizing a comprehensive household survey data from China, we show that households with a mortgage consume a higher portion of their income than households without a mortgage. This is in line with the argument that having a mortgage reduces the uncertainty that the household faces regarding how much to save each month in order to be able to own a house, and this reduced uncertainty leads to lower monthly savings for the purpose of buying a house. We also find that among households with a mortgage, those who spend a larger share of their income on mortgage payments spend less of their income on consumption, reflecting the crowding out effect of mortgage payments on household consumption. Furthermore, we show that a government policy of decreasing the maximum loan-to-value ratio has a significant impact on the consumption behavior of households. The current paper offers the first evidence of the impact of growing mortgage debt on the consumption behavior of households. Our results will have implications for government policies that encourage mortgage borrowing. |
| Keywords: | Consumption, Mortgage Debt |
| JEL: | D14 E21 G21 |
| Date: | 2017–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:79306&r=ure |
| By: | Roland G. Fryer, Jr |
| Abstract: | This study examines the impact on student achievement of implementing management training for principals in traditional public schools in Houston, Texas, using a school-level randomized field experiment. Across two years, principals were provided 300 hours of training on lesson planning, data-driven instruction, and teacher observation and coaching. The findings show that offering management training to principals significantly increases student achievement in all subjects in year one and has an insignificant effect in year two. We argue that the results in year two are driven by principal turnover, coupled with the cumulative nature of the training. Schools with principals who are predicted to remain in their positions for both years of the experiment demonstrate large treatment effects in both years – particularly those with principals who are also predicted to implement the training with high fidelity – while those with principals that are predicted to leave have statistically insignificant effects in each year of treatment. |
| JEL: | I20 J0 M10 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23437&r=ure |
| By: | Alexeev, Michael (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Mamedov, Arseny (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Fomina, Evgenia (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Deryugin, Alexander (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | The paper considers methodological approaches to assessing the impact of interbudgetary regulation instruments on the economic development of regions, the impact of the main characteristics of interbudgetary relations at the national level and the regional level on the indicators of the economic development of regions. |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:031717&r=ure |
| By: | Monika Paradowska (University of Opole, Poland) |
| Abstract: | Research background: Cycling is considered one of the most required ways of commuting, because it generates multiple benefits and low levels of external costs of transport. Many cities try to increase the share of cycling in the modal split by the way of various interventions. Effects of these efforts are different, depending on levels of rivalry and excludability of goods provided, what is influencing the attractiveness of cycling. Purpose of the article: The main aim of the paper is (i) to describe key elements of and some solutions for cycling systems in urban areas with focus on two characteristics of goods: rivalry and exclusion, and (ii) to examine, how different levels of rivalry and exclusion influence the attractiveness of cycling and contribute to required effects of cycling policy. Methodology/methods: The paper is based on the theory of private and public goods, as well as on some elements of the New Institutional Economics. The author uses secondary data and research results presented in scientific papers available in the Web of Science Database and Google Scholar, and other information available in online documents. Findings & Value added: A change in levels of rivalry and excludability can lead to an increased attractiveness of cycling. Further research on levels of rivalry and excludability in terms of the complexity of transport systems can contribute to a better understanding of transport behaviour, creating adequate solutions and predicting future effects. |
| Keywords: | rivalry, excludability, cycling, transport demands, urban transport systems |
| JEL: | Q01 R41 R48 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no87&r=ure |
| By: | Arkadiusz Œwiadek (University of Zielona Gora, Poland) |
| Abstract: | In the literature, there is a discussion on the importance of the spatial distans to the user in the context innovation activity. Although, most of this kind of studies concentrate on exporting enterprises and compare them to domestic ones. Exporting activity is very important for catching-up countries, because of technology transfer in its background. The aim of this paper is to determine whether the innovative activity in Poland’s industrial system is a consequence of close interactions (local and regional), or perhaps conditioned by the imperative of functioning on the national and international market? Main hypothesis was to claim that on the current development level of Poland, the relationship between the range of sales and innovation activities are different from those in the more developed countries. Empirical studies was created in 2006-2012 as a result of the systematic collection of questionnaires filled by industry enterprises in Poland from all regions (5209 correct fulfilled questionnaires). Methodical analysis was based on the theory of probability - probit modeling, because dependent variables were binary (0 or 1). Local and regional environment is not conducive to stimulating innovation activity, but national spatial is a sufficient space, but high intensity observed only when the company has been working on the international market. It means, that the industry maturity level in Poland is good enough for creating a domestic innovation environment. This kind of an aggregation level should be stimulating by the government innovation policy. |
| Keywords: | innovation, industry, system, country, sale range |
| JEL: | L52 O25 P51 O31 O32 O33 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no129&r=ure |
| By: | Chen, Yang (Division of Economics, Xi'an Jiaotong-Liverpool University); He, Ming (Division of Economics, Xi'an Jiaotong-Liverpool University); Rudkin, Simon (SHU-UTS SILC Business School, University of Shanghai) |
| Abstract: | Economists talk of agglomeration bene ting rms but little work has sought to understand the impact various consequences of close location of rms has on productivity. Using unconditional quantile regression for the rst time in productivity we revisit the Chinese Industry Survey, from 1999 to 2007, to ask (a) how does spatial competition, local diversity, population density and regional specialisation impact across the productivity distribution, and (b) how have these effects changed through China's opening up to foreign direct investment. High productivity firms bene t more from specialist agglomerations, monopoly and can take larger advantage of market size compared to those which are less productive. |
| Keywords: | Unconditional Quantile Regression, Manufacturing Productivity, China, Agglomeration. |
| Date: | 2017–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:xjt:rieiwp:2017-04&r=ure |
| By: | David Arnold; Will Dobbie; Crystal S. Yang |
| Abstract: | This paper develops a new test for identifying racial bias in the context of bail decisions – a high-stakes setting with large disparities between white and black defendants. We motivate our analysis using Becker's (1957) model of racial bias, which predicts that rates of pre-trial misconduct will be identical for marginal white and marginal black defendants if bail judges are racially unbiased. In contrast, marginal white defendants will have a higher probability of misconduct than marginal black defendants if bail judges are racially biased against blacks. To test the model, we develop a new estimator that uses the release tendencies of quasi-randomly assigned bail judges to identify the relevant race-specific misconduct rates. Estimates from Miami and Philadelphia show that bail judges are racially biased against black defendants, with substantially more racial bias among both inexperienced and part-time judges. We also find that both black and white judges are biased against black defendants. We argue that these results are consistent with bail judges making racially biased prediction errors, rather than being racially prejudiced per se. |
| JEL: | J15 J71 K14 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23421&r=ure |
| By: | Olav Sorenson |
| Abstract: | Social relationships channel information, influence, and access to scarce resources. As a consequence, social networks – the patterns of these relationships across the members of a community – influence who comes up with important innovations, whether and how rapidly those innovations get adopted, and who has the ability to commercialize them. They therefore also affect the overall rate at which innovation occurs in the economy. This essay provides an introduction to and review of the research on social networks most relevant to innovation, with a particular focus on the earliest stages of the innovation process. It then discusses the likely consequences of a variety of policy interventions that could either reduce the importance of social relationships to innovation or alter the patterns of relationships in ways that might promote innovation. |
| JEL: | O31 O32 Z13 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23431&r=ure |
| By: | Kristof Gyod (University of Warsaw) |
| Abstract: | Research background: Consumption habits and the provision of services have undergone significant changes in the recent years. Platforms made way for new business models, which are often referred to as sharing economy or collaborative economy. Among the most valuable firms of the sharing economy is Airbnb, a platform for short-term accommodation rentals. Purpose of the article:The aim of the article is to analyse the characteristics of the Airbnb network in Warsaw, Poland. The paper investigates to what extent Airbnb may generate value from underused assets and whether it brings tourism todistricts previously less popular among visitors. Methodology/methods:The analysis is based on a unique dataset, which contains all Airbnb listings of Warsaw. The dataset has been constructed by the author using web-scraping technology. Descriptive statistics and kernel density estimation are implemented for the empirical analysis. Findings & Value added: The vast majority of the Airbnb network is focused on the short-term rental of entire homes and apartments in the city centre. Furthermore, the majority of listings belong to hosts, who offer more than one accommodation. The characteristics of the network suggest that the potential of Airbnb to generate value from underused assets is restricted: the primary activity of Airbnb decreases the number of properties on the long-term housing market. Comparing to traditional hotels, Airbnb is not significantly facilitating tourism in the outer districts of the city. The main contribution of the paper to the literature is the analysis of the entire population of Airbnb in a major city and the comparison with the traditional services sector. This is also the empirical analysis on the sharing economy and Airbnb in Poland. |
| Keywords: | sharing economy, two-sided markets, digital economy, tourism |
| JEL: | R12 D23 C81 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no33&r=ure |
| By: | Justyna Zygmunt (Opole University of Technology, Poland) |
| Abstract: | While a large literature exists linking entrepreneurship with its drivers in developed economies, entrepreneurship issues in the transition economies are still no entirely recognised. The Visegrad countries represent a unique scope for examining drivers affecting entrepreneurial activity in the transition economies, since they faced similarities at the beginning of the transformation. The findings may be supportive in identifying threats and opportunities of the economic development of Central and Eastern Europe regions.This paper contributes to the literature on entrepreneurship by focusing on drivers of entrepreneurial activity in the transition economies. The aim of the paper is to analyse how entrepreneurial activity in respective Visegrad countries is influenced by various drivers.Entrepreneurship activity and its drivers in the Visegrad countries were considered for the 2004-2014 period. Hypotheses were tested with the usage of an Ordinary Least Squared regression. F-test was employed to test estimated regressions. Goodness-of-fit of the regressions was controlled with the coefficient of determination. To check for the collinearity, Pearson’s correlation coefficient was used.In this paper the approach for improving the understanding of issues related to entrepreneurship in the transition economies is made. This paper contributes to the understanding of how entrepreneurship activity in the Visegrad countries is influenced by various drivers. The main finding is that although entrepreneurial activity in the Visegrad countries seems to be influenced by similar drivers that have been identified for developed economies, the way in which respective drivers matters for entrepreneurship is, in certain cases, distinct. The findings may attract attention of policymakers and may be useful in the processes of policy pursuing. |
| Keywords: | entrepreneurship, transition economies, the Visegrad countries |
| JEL: | L26 P25 R11 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no151&r=ure |
| By: | Eichhorst, Werner (IZA); Rinne, Ulf (IZA) |
| Abstract: | This paper assesses the current situation of youth unemployment in the European Union. In this context, the main questions are whether the European Youth Guarantee has had any effects and how the school-to-work transitions of young individuals in Europe could be improved. |
| Keywords: | labor policy, labor market institutions, vocational education and training |
| JEL: | J08 J13 J21 J24 J38 J61 J68 J88 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izapps:pp128&r=ure |
| By: | Jorge Luis García; James J. Heckman; Anna L. Ziff |
| Abstract: | This paper estimates gender differences in life-cycle impacts across multiple domains of an influential enriched early childhood program targeted toward disadvantaged children that was evaluated by the method of random assignment. We assess the impacts of the program on promoting or alleviating population differences in outcomes by gender. For many outcomes, boys benefit relatively more from high-quality center childcare programs compared to low-quality programs. For them, home care, even in disadvantaged environments, is more beneficial than lower-quality center childcare for many outcomes. This phenomenon is not found for girls. We investigate the sources of the gender differentials in impacts. |
| JEL: | C93 I28 J13 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23412&r=ure |
| By: | MIYAUCHI Yuhei; MIYAKAWA Daisuke |
| Abstract: | Existing literature documents strong empirical relationships between input-output linkages and geographic concentration of industries. This paper empirically assesses one micro-foundation of this phenomenon: geographic concentration of firms reduces the matching friction of firm-to-firm trade (i.e., thick-market externality). Using a panel of over one million firms in Japan with dynamic supply-chain linkage information, we find that (1) firms have more suppliers and customers in denser areas on average, and (2) when a supplier exits the market for unexpected reasons (identified by the reported reasons of bankruptcy), firms recover alternative suppliers more in thicker supplier markets. These two pieces of evidence suggest the importance of thick-market externality of firm-to-firm trade as a mechanism of agglomeration. |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:17072&r=ure |
| By: | Francis Bloch (Université Paris 1 and Paris School of Economics); David Cantala (El Colegio de México); Damián Gibaja (Universidad Popular Autónoma del Estado de Puebla) |
| Abstract: | We model a matching market with institutions -inspired by the assignment of social housing in Paris- as a three-sided market. Institutions own objects and have agents attached to them. Agents have preferences over objects. Objects have priorities over institutions. We show that fair assignments satisfying distributional constraints may fail to exist, and propose a sufficient condition -the over-demand condition- under which we prove existence. Existence derives from the construction of a new algorithm, the Nested Deferred Acceptance (NDA) algorithm, which combines a one-to-one matching between agents and objects and a one-to-many matching between objects and institutions. If interrupters are eliminated from the preference list, as in Kesten (2010), the NDA algorithm produces an assignment which is fair, Pareto optimal among fair assignments and strategy-proof for agents. |
| Keywords: | matching, institutions, deferred acceptance algorithm, social housing |
| JEL: | C78 D47 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:emx:ceedoc:2017-03&r=ure |
| By: | Fang, Zheng (School of Business, SIM University, Singapore); Chen, Yang (Division of Economics, Xi'an Jiaotong-Liverpool University) |
| Abstract: | We examine the city-level cointegrating and Granger causal relationships between economic growth, electricity consumption and human capital during a period of 2003-2012 in China. Applying the Continuously-updated fully modified OLS panel estimation, we find that for China as a whole physical and human capital have similar positive impacts on local economic growth, which are slightly larger than the effect of electricity consumption. A 1% rise in either physical or human capital investment boosts economic growth by 0.07% and the output elasticity of electricity consumption is 0.06. Comparatively, electricity consumption plays a dominant role to boost economic growth in the Center, human capital contributes most to growth in the East, and growth in the West benefits most from physical capital investments. Using a Granger causality test that is suitable for heterogeneous panels, we find a uni-directional causal relationship running from economic growth to electricity consumption in central and western China and a feedback effect in eastern China. In terms of the causal relationship between electricity consumption and education expenditure, electricity Granger causes education expenditure in some eastern Chinese cities and a reverse relationship is observed for cities in Middle China, while for western cities a bi-directional causal link is found. Local policies should therefore vary and be coordinated across government agencies. |
| Keywords: | Electricity consumption, education expenditure, heterogeneous panel causality, Chinese cities |
| Date: | 2017–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:xjt:rieiwp:2017-02&r=ure |
| By: | Jurgita Bruneckiene (Kaunas University of Technology, Lithuania); Jolita Sinkiene (Kaunas University of Technology, Lithuania); Egle Gaule (Kaunas University of Technology, Lithuania); Ineta Zykiene (Kaunas University of Technology, Lithuania) |
| Abstract: | Economic vitality of community is one of the main factors and conditions for successful urban development. The article present the theoretical and empirical analysis of the concept of economic vitality of urban community in the country of small economy. The objective of the paper is to identify the challenges and factors of improving the economic vitality of community in cities of a country with a small economy and to develop the strategic recommendations and measures for strengthening the economic vitality of the community. Methods used: literature studies, document analysis, statistical data analysis, expert interview, survey, case analysis, Space Syntax analysis. The research showed that the communities in the country of small economy are still not entrepreneur and economically vital; there’s a lack of cooperation cultural and experience among of communities and businesses; there are favorable conditions to promote community (economic) vitality. Strategies to encourage and facilitate business and community cooperation at the local government level are necessary. Communities and companies are ready to cooperate together, but the cooperation based on shared value is not grown up yet. The article concludes with recommendations for promotion the vitality of communities and cooperation with business. |
| Keywords: | economic vitality, community, cities, urban economic development |
| JEL: | R11 P32 P35 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no113&r=ure |
| By: | Marcin Sitek (Czestochowa University of Technology) |
| Abstract: | Research background: In this paper a short overview of the types of innovations and their innovative forms of investing in the real estate market, such as reverse mortgage, flipping, building for rent, system condo and crowdfunding was presented. Purpose of the article: The aim of the paper is to present risk factors in innovative activities in the real estate market and evaluation of their activity in this market. The study proposed the hypothesis that a specific level of development in the real estate market corresponds to a certain level of investment risk reflected by the rate of return. Methodology/methods: The questionnaire survey in the local real estate market participants (investors, employees in enterprises that provide services for the real estate market, external appraisers, real estate brokers and counsellors) was conducted for the purposes of evaluation of risk factors in the investment innovative activities. Findings: Analysis of the results of questionnaire survey supported the following thesis: (1) as an effect of a strong inflow of capital and disturbed balance between demand and supply, return rates represent the reaction to the previous market behaviours, (2)decline in the rates of return points to the increase in the investment risk in the real estate market. It was found that the particularly high contribution to the risk level is from market risk, which is little transparent in Poland and is characterized by high variability of the conditions of operation. |
| Keywords: | risk; investment risk; innovations; risk management |
| JEL: | E32 E44 F63 O12 O31 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no159&r=ure |
| By: | Andrea Albanese; Lorenzo Cappellari (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore); Marco Leonardi |
| Abstract: | This paper estimates the causal effects of the 2003 reform of the Italian apprenticeship contract which aimed at introducing the “dual system” in Italy by allowing on-the-job training. The reform also increased the age eligibility of the apprenticeship contract and introduced a minimum floor to apprentices’ wages. Using administrative data and balancing techniques we find that five years after hiring, the new contract improves the chances of moving to a permanent job in the same firm, yet this happens mostly in large firms. There are also sizeable long-run wage effects of the reform, well beyond the legal duration of apprenticeships, compatible with increased human capital accumulation probably due to the training provisions of the reform. |
| Keywords: | Apprenticeship, Permanent Work, Youth Employment, Covariate Balancing, Propensity Score . |
| JEL: | J24 J41 C21 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:ctc:serie1:def057&r=ure |
| By: | Kiesel, F.; Kolaric, S. |
| Abstract: | This paper analyzes the importance of distinguishing between watch-preceded and direct rating changes for the credit default swap (CDS) market by examining a total of 2991 rating change announcements, 1526 watchlist placement announcements, and 430 rating affirmations following watchlist placements. The results show that watch-preceded downgrades do not lead to significant CDS market reactions, while direct downgrades are associated with a significant increase in CDS spread levels. Likewise, we document that watchlist placements for downgrade lead to increases in firms’ CDS spreads. CDS markets do not react to rating upgrades but watchlist placements for upgrade result in an immediate decrease in CDS spreads. Rating affirmations following watchlist placements for downgrade lead to slight reductions in CDS spreads, while affirmations following watchlist placements for upgrade have no effect on CDS spreads. These findings demonstrate the importance for empirical research on the interaction between credit markets and rating announcements to differentiate between watch-preceded and direct rating changes, particularly for rating downgrades. |
| Date: | 2017–05–18 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:87386&r=ure |
| By: | Michael A. Clemens; Jennifer Hunt |
| Abstract: | An influential strand of research has tested for the effects of immigration on natives’ wages and employment using exogenous refugee supply shocks as natural experiments. Several studies have reached conflicting conclusions about the effects of noted refugee waves such as the Mariel Boatlift in Miami and post-Soviet refugees to Israel. We show that conflicting findings on the effects of the Mariel Boatlift can be explained by a sudden change in the race composition of the Current Population Survey extracts in 1980, specific to Miami but unrelated to the Boatlift. We also show that conflicting findings on the labor-market effects of other important refugee waves can be produced by spurious correlation between the instrument and the endogenous variable introduced by applying a common divisor to both. As a whole, the evidence from refugee waves reinforces the existing consensus that the impact of immigration on average native-born workers is small, and fails to substantiate claims of large detrimental impacts on workers with less than high school. |
| JEL: | C36 J61 R23 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23433&r=ure |
| By: | Sauveur Giannoni (Laboratoire Lieux, Identités, eSpaces et Activités (LISA)); Olivier Beaumais (Laboratoire Lieux, Identités, eSpaces et Activités (LISA)); Caroline Tafani (Laboratoire Lieux, Identités, eSpaces et Activités (LISA)) |
| Abstract: | The presence of foreign buyers in land and housing markets has become a major concern for many regions in the world, sometimes seen as leading to the eviction of local (domestic) buyers from the market. We argue that the existence of the non-local buyer premium is a driving force behind the local buyer eviction phenomenon. To account for this phenomenon, we built a stylized static search and bargaining model with one type of seller and two types of buyers, local and non-local. We show that the market is in general characterized by the coexistence of two different selling prices, a high price paid by non-local buyers and a low price paid by local ones. Yet, if the price premium exceeds a given threshold, which we call the maximum sustainable price dispersion cut-point, no seller will be willing to deal with a local buyer at a low price anymore. To illustrate our theoretical results, we use a data set of more than 4,800 observations on the seaside farmland market of Corsica between 1998-2008. Controlling for land characteristics and potential endogeneity issues, a huge non-local premium of roughly e16 per square meter is found. |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:lia:wpaper:005&r=ure |
| By: | Wojciech Kisiala (Poznan University of Economics and Business); Katarzyna Suszynska (Poznan University of Economics and Business, Poland) |
| Abstract: | The processes of economic convergence observed in many developing countries are characterized by reduction of economic differences on the between-country level, which are accompanied by growing internal economic inequalities. This may stem from the fact that in catching-up countries, a more dynamic growth is observed in the economically strongest regions, which is initially reflected in spatial polarization and increasing regional inequalities. However, just as the countries reach higher levels of development, the diffusion of growth-inducing impulses to the remaining areas should lead to the spatial equalizing of the development levels and reducing regional inequalities. The aim of the paper is to determine the relations between the level of economic growth in Central and Eastern European (CEE) countries and observed economic inequalities. The theoretical frame adopted to describe and explain those relations was the so-called Williamson hypothesis in which the relation between the scale of regional inequalities and economic growth is illustrated by a curve shaped like an inverted U. The research procedure was intended to verify Williamson hypothesis by estimating parabolic econometric models. Indicators of economic growth along with measure of regional inequalities (Williamson’s coefficient of variation) were used in the regression modeling. The research period spans over the years 1995-2014. In the light of the conducted study of CEE countries, it was possible to observe both convergence symptoms as well as divergence tendencies. It can be thus stated that the analyzed CEE countries followed a similar path to the one observed earlier by Williamson in other developing countries. However, the analyses conducted by the authors on the national and regional levels of CEE countries were equivocal and did not fully support the theoretical assumptions of Williamson's hypothesis. |
| Keywords: | regional inequalities; economic growth; Williamson hypothesis; econometric modeling; Central and Eastern Europe |
| JEL: | C51 O11 O47 R11 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2017:no122&r=ure |
| By: | Matthew R. Graham; Mark J. Kutzbach; Danielle H. Sandler |
| Abstract: | This paper describes the Longitudinal Employer-Household Dynamics (LEHD) program’s ongoing efforts to use administrative records in a predictive model that describes residence locations for workers. This project was motivated by the discontinuation of a residence file produced elsewhere at the U.S. Census Bureau. The goal of the Residence Candidate File (RCF) process is to provide the LEHD Infrastructure Files with residence information that maintains currency with the changing state of administrative sources and represents uncertainty in location as a probability distribution. The discontinued file provided only a single residence per person/year, even when contributing administrative data may have contained multiple residences. This paper describes the motivation for the project, our methodology, the administrative data sources, the model estimation and validation results, and the file specifications. We find that the best prediction of the person-place model provides similar, but superior, accuracy compared with previous methods and performs well for workers in the LEHD jobs frame. We outline possibilities for further improvement in sources and modeling as well as recommendations on how to use the preference weights in downstream processing. |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:17-40&r=ure |