nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2018‒04‒16
fifty papers chosen by
Steve Ross
University of Connecticut

  1. Where Do the Rich Live in a Big City? By TABUCHI Takatoshi
  2. Growth and the Geography of Knowledge By Marta Aloi; Joanna Poyago-Theotoky; Frederic Tournemaine
  3. A residential land price index for Luxembourg: Dealing with the spatial dimension By GLUMAC Brano; HERRERA-GOMEZ Marcos; LICHERON Julien
  4. Unpacking the Drivers of Racial Disparities in School Suspension and Expulsion By Jayanti Owens; Sara McLanahan
  5. Living Apart Together: The Economic Value of Ethnic Diversity in Cities By Jessie Bakens; Raymond Florax; Henri (H.L.F.) de Groot; Peter Mulder
  6. The impact on the population on the sustainable urban economic development By Inesa Pavlova; Maija Šenfelde
  7. Short-term renting of residential apartments. Effects of Airbnb in the Icelandic housing market By Lúðvík Elíasson; Önundur Páll Ragnarsson
  8. Continuous Workout Mortgages: Efficient Pricing and Systemic Implications By Robert J. Shiller; Rafal M. Wojakowski; M. Shahid Ebrahim; Mark B. Shackleton
  9. A woman's touch? Female migration and economic development in the United States By Viola von Berlepsch; Andrés Rodríguez-Pose; Neil Lee
  10. Commuting, Labor, and Housing Market Effects of Mass Transportation: Welfare and Identification By Severen, Christopher
  11. Accelerating housing production in London: main findings By Scanlon, Kath; Whitehead, Christine M E; Holman, Nancy
  12. Innovation and Geographical Spillovers: New Approaches and Empirical Evidence By Segarra Blasco, Agustí, 1958-; Arauzo Carod, Josep Maria; Teruel, Mercedes
  13. Cultural and Creative Industries (CCI) and sustainable development: China’s cultural industries clusters By Jianfei Yang; Jūratė Černevičiūtė
  14. Collaboration Networks and Innovation: How to Define Network Boundaries By Galaso, Pablo; Kovářík, Jaromír
  15. Bringing the Household Back in. Comparative Capitalism and the Politics of Housing Markets By Greg Fuller; Alison Johnston; Aidan Regan
  16. Here Lives a Wealthy Man: Price Rigidity and Predictability in Luxury Housing Markets By Levy, Daniel; Snir, Avichai
  17. Innovation, Productivity Dispersion, and Productivity Growth By Lucia Foster; Cheryl Grim; John C. Haltiwanger; Zoltan Wolf
  18. Urban renewal after the Berlin Wall: a place-based policy evaluation By Ahlfeldt, Gabriel M.; Maennig, Wolfgang; Richter, Felix J.
  19. Use of science to guide city planning policy and practice: how to achieve healthy and sustainable future cities By Sallis, James F; Bull, Fiona; Burdett, Ricky; Frank, Lawrence D.; Griffiths, Peter; Giles-Corti, Billie; Stevenson, Mark
  20. Regional Economic Development in Europe, 1900-2010: A Description of the Patterns By Joan R. Rosés; Nikolaus Wolf
  21. The Geography of Talent: Development Implications and Long-Run Prospects By Michal BURZYŃSKI; Christoph DEUSTER; Frédéric DOCQUIER
  22. Foreign multinationals, selection of local firms, and regional productivity in Indonesia By Saito, Hisamitsu
  23. Do Private Schools Manage Better? By Bryson, Alex; Green, Francis
  24. Where New Creative Industries Locate? Evidence from French Departments By Arauzo Carod, Josep Maria; Coll Martínez, Eva; Turcu, Camelia
  25. Spatial panel data models with structural change By Li, Kunpeng
  26. Internal Migration in the United States: A Comparative Assessment of the Utility of the Consumer Credit Panel By DeWaard, Jack; Johnson, Janna; Whitaker, Stephan
  27. 'Regional Spillovers in Financial Dollarization' By Kyriakos C. Neanidis; Christos S. Savva
  28. Just-In-Time Vehicle Routing for In-House Part Feeding to Assembly Lines By Emde, Simon; Schneider, Michael
  29. Local Competitiveness and Labour Market Returns in a Transition Economy: Evidence from Vietnam By Tinh Doan; Tran Quang Tuyen; Hien Nguyen
  30. Towards economically dynamic Special Economic Zones in emerging countries By Susanne A. Frick; Andrés Rodríguez-Pose; Michael Wong
  31. Innovation Networks and Clusters Dynamics By Desmarchelier, Benoît; Zhang, Linjia
  32. The option value of vacant land and the optimal timing of city extensions By Rutger-Jan Lange; Coen Teulings
  33. Measuring Sorting with Time-Varying Characteristics By Robert Shimer
  34. City Size, Pollution and Emission Policies By Pflüger, Michael P.
  35. Ethnic Favoritism: Winner Takes All or Power Sharing? Evidence from school constructions in Benin By Pierre André; Paul Maarek; Fatoumata Tapo
  36. Bartik Instruments: What, When, Why, and How By Paul Goldsmith-Pinkham; Isaac Sorkin; Henry Swift
  37. Wider Economic Benefits of Transport Corridors: A Policy Framework and Illustrative Application to the China-Pakistan Economic Corridor By Melecky, Martin; Roberts, Mark; Sharma, Siddharth
  38. Rising to the challenge: London's housing crisis By Scanlon, Kath; Whitehead, Christine M E; Holman, Nancy
  39. Does Scale Matter in Community Bank Performance? Evidence Obtained by Applying Several New Measures of Performance By Hughes, Joseph P.; Jagtiani, Julapa; Mester, Loretta J.; Moon, Choon-Geol
  40. Budgetary Rules at the Regional Level: Main Approaches and Recommendations By Alexeev, Michael; Arlashkin, Igor; Barbashiova, Natalya; Deryugin, Alexander; Komarnitskaya, Anna; Moguchev, Nikita; Tischenko, Tatiana; Filippova, Irina
  41. Userfocus - tool for criminality control of social networks at both the local and international level By Stanislav Šišulák
  42. DSGE Reno: Adding a Housing Block to a Small Open Economy Model By Christopher G Gibbs; Jonathan Hambur; Gabriela Nodari
  43. The US Opidemic: Prescription Opioids, Labour Market Conditions and Crime By Deiana, Claudio; Giua, Ludovica
  44. Public Infrastructure in the Western Balkans; Opportunities and Challenges By Ruben V Atoyan; Dora Benedek; Ezequiel Cabezon; Giuseppe Cipollone; Jacques A Miniane; Nhu Nguyen; Martin Petri; Jens Reinke; James Roaf
  45. The Aerospace Cluster in Washington State, Microeconomics of Competitiveness Study Case By Alana McKenzie; Raluca Nica; Andra Roman; Corina Ioana Petrea
  46. Congestion Pricing, Air Pollution and Children’s Health By Emilia Simeonova; Janet Currie; Peter Nilsson; Reed Walker
  47. Innovation Networks and Clusters Dynamics By He, Ming; Walheer, Barnabé
  48. Changes in the relationshp between interest rates and housing prices in South Africa around the 2007 financial crisis By Nwabisa Kolisi; Andrew Phiri

  1. By: TABUCHI Takatoshi
    Abstract: We reveal the spatial distribution of income classes in a big city by examining housing prices and rent microdata, which increase with income. Traditional urban economic theory of a monocentric city predicts that the suburbs tend to house high income households relative to the central cities, which is often observed in U.S. cities. However, we find that the rich and poor collocate and are sorted by income near the central cities while the middle class locates almost everywhere according to the microdata of detached house prices in the Tokyo metropolitan area. By introducing the time cost of commuting to the traditional urban economic theory, we show that this international difference in the spatial distribution is attributed to the pecuniary commuting cost and the income elasticity of demand for housing space. We then show that any condominium resident locates almost everywhere in the Tokyo metropolitan area. This is because the income elasticity of demand for condominium space is close to 1 and the pecuniary cost of commuting is zero in Japan.
    Date: 2018–03
  2. By: Marta Aloi; Joanna Poyago-Theotoky; Frederic Tournemaine
    Abstract: We analyse how spatial disparities in innovation activities, coupled with migration costs, affect economic geography, growth and regional inequality. We provide conditions for existence and uniqueness of a spatial equilibrium, and for the endogenous emergence of industry clusters. Spatial variations in knowledge spillovers lead to spatial concentration of more innovative firms. Migration costs, however, limit the concentration of economic activities in the most productive region. Narrowing the gap in knowledge spillovers across regions raises growth, and reduces regional inequality by making firms more sensitive to wage differentials. The associated change in the spatial concentration of industries has positive welfare effects.
    Keywords: growth, economic geography, geographic labour mobility, innovation, knowledge spillovers, regional economics
    JEL: O41 O31 L13 J61 R32
    Date: 2018
  3. By: GLUMAC Brano; HERRERA-GOMEZ Marcos; LICHERON Julien
    Abstract: Urban development projects have many effects on society, such as improving mobility, health, education, and sustainability. For policy-relevant measures, it is important that policymakers are able to foresee how quality improvements influence the price of land. Therefore, our objective is to collect a set of variables able to account for the effects of a multitude of land quality improvements. In addition, surrounding plots and the natural and built environment might also influence urban land prices. However, most house price and land price indices do not control for any potentially related spatial effects. The urban land price index detailed here is based on land transaction prices for Luxembourg between 2010 and 2014 recorded in notarial deeds and cadastral data, together with geo-spatial characteristics. The proposed index includes many aspects in an initial hedonic model specification, the index also operates on a spatial model.
    Keywords: land value; hedonic regression; spatial Durbin error model; Luxembourg
    JEL: C23 E31 R31 R32
    Date: 2018–04
  4. By: Jayanti Owens (Brown University); Sara McLanahan (Princeton University)
    Abstract: School suspension and expulsion are important forms of punishment that disproportionately affect Black students. Punishment early in schooling has consequences for long term achievement, criminal justice interaction, and well being. Prior research identifies three mechanisms that help account for racial disparities in suspension and expulsion: between-school sorting, differences in student behaviors, and differential treatment of students with the same behaviors. We build upon and extend prior research in four ways: (1) by comparing the relative importance of the three mechanisms in a single study, (2) by focusing on students early in elementary school, (3) by measuring students' behavior at the time they enter school, before they have been exposed to school disciplinary practices, and (4) by using both teacher and parent reports of student behaviors. Using data from the Fragile Families Study and decomposition techniques, we find that between-school sorting accounts for 13% of the Black/White gap in suspension/expulsion, differences in behavior account for 9% of the gap, and differential treatment accounts for 39% of the gap. Behavior differences measured at age 9, which are likely to be endogenous to suspension and expulsion, reinforce the importance of differential punishment. Theoretically, our findings highlight differential treatment as a mechanism of early criminalization.
    JEL: I24
    Date: 2018–02
  5. By: Jessie Bakens (Maastricht University, The Netherlands); Raymond Florax (Purdue University, USA; Vrije Universiteit Amsterdam, The Netherlands); Henri (H.L.F.) de Groot (Vrije Universiteit Amsterdam, The Netherlands); Peter Mulder (Vrije Universiteit Amsterdam, The Netherlands)
    Abstract: In consumer cities, the presence and location of immigrants impacts house prices through two channels, which both can be valued positively as well as negatively: (i) their presence and contribution to population diversity and (ii) the creation of immigrant-induced consumer amenities like those associated with ethnic restaurants in terms of both quantity as well as diversity. We hypothesize that these two mechanisms create a trade-off in which city dwellers want to live apart yet consume together. We derive a simple intra-city residential location model in which distance to immigrant amenities and the immigrant population in neighborhoods contribute to the explanation of differences in house prices. We use unique micro data of house prices and ethnic restaurants in the city of Amsterdam over the 1996-2011 period to estimate the trade-off between consumers' love for ethnic goods and its variety on the one hand, and ethnic residential composition on the other hand. Our results show the existence of a trade-off in which access to ethnic restaurants compensates for the negative effect of the presence of immigrants on house prices. Diversity of immigrant-induced amenities has an additional positive effect on house prices.
    Keywords: amenities; diversity; immigrants; hedonic pricing; propensity score matching
    JEL: D12 D62 J15 R10
    Date: 2018–03–23
  6. By: Inesa Pavlova (Riga Technical University); Maija Šenfelde (Riga Technical University)
    Abstract: Today, attention is paid to urban sustainable development and a resident as of a sustainable urban economic development in the core and foundation and most problem is the migration of them. It's important to remember that the city is the socioeconomic development and improvement of local promoter based resident. Given that both in Riga and in the whole country's population is shrinking, which is based on the migration problem. Riga is the largest and one of the economically richest municipalities and the capital of country in same time, it should serve as a model as a prop adjacent municipalities. It is important to remember and to follow Riga's sustainable development strategy according 2030 guidelines, which states that every neighborhood has equal opportunities to grow, develop and live, but is not currently being met. Given that the average active economically population is 62% of the employed population and 46% of the total population, which is critical in the city and surrounding sustainable development. Therefore, within the framework of the article it will be considered as a resident of the city affects urban sustainable economic development and will highlight the city of Riga overall economic performance and each residential area separately. The article is to determine what the impact of urban resident urban sustainable economic development is, and what the stumbling block of the population migration and low participation in urban development is, which is considered as one of the most important promoters of sustainability.
    Keywords: resident,Riga,urban environment,sustainable development,economic development
    Date: 2017–12–29
  7. By: Lúðvík Elíasson; Önundur Páll Ragnarsson
    Abstract: This paper looks at the effects of recent growth in private renting to tourists on the net supply of housing and house prices in Iceland. The growth in private renting to tourists is documented and used to adjust estimates of housing supply. Data on actual bookings of apartments in the capital region of Iceland on Airbnb is used as an indicator for supply of housing to short term tourism rentals. This information is used to estimate the effects of short-term lodging on real house prices in Iceland as well as for making a suggestion for the measure of the residential housing stock. The contribution of the growth in the Airbnb market on real house prices is estimated at 2% per year over the last three years, or about 15% of the total increase in real house prices during that period.
    Date: 2018–02
  8. By: Robert J. Shiller (Cowles Foundation, Yale University); Rafal M. Wojakowski (Surrey Business School, University of Surrey); M. Shahid Ebrahim (Durham University Business School); Mark B. Shackleton (Lancaster University Management School)
    Abstract: This paper studies the Continuous Workout Mortgage (CWM), a two in one product: a fixed rate home loan coupled with negative equity insurance, to advocate its viability in mitigating financial fragility. In order to tackle the many issues that CWMs embrace, we perform a range of tasks. We optimally price CWMs and take a systemic market-based approach, stipulating that mortgage values and payments should be linked to housing prices and adjusted downward to prevent negative equity. We illustrate that amortizing CWMs can be the efficient home financing choice for many households. We price CWMs as American option style, defaulting debt in conjunction with prepayment within a continuous time, analytic framework. We introduce random prepayments via the intensity approach of Jarrow and Turnbull (1995). We also model the optimal embedded option to default whose exercise is motivated by decreasing random house prices. We adapt the Barone-Adesi and Whaley (1987) (BAW) approach to work within amortizing mortgage context. We derive new closed-form and new analytical approximation methodologies which apply both for pricing CWMs, as well as for pricing the standard US 30-year Fixed Rate Mortgage (FRM).
    Keywords: Negative equity, House price index indexation, Repayment mortgage, Insurance, Embedded option to default, Prepayment intensity
    JEL: C63 D11 D14 D92 G13 G21 R31
    Date: 2017–12
  9. By: Viola von Berlepsch; Andrés Rodríguez-Pose; Neil Lee
    Abstract: Does the economic effect of immigrant women differ from that of immigrants in general? This paper examines if gender has influenced the short- and long-term economic impact of mass migration to the US, using Census microdata from 1880 and 1910. By means of ordinary least squares and instrumental variable estimations, the analysis shows that a greater concentration of immigrant women is significantly associated with lower levels of economic development in US counties. However, immigrant women also shaped economic development positively, albeit indirectly via their children. Communities with more children born to foreign mothers and that successfully managed to integrate female immigrants experienced greater economic growth than those dominated by children of foreign-born fathers or American-born parents.
    Keywords: Gender, migration, economic growth, development, counties, US
    JEL: F22 J16 J61 O15 R23
    Date: 2018–04
  10. By: Severen, Christopher (Federal Reserve Bank of Philadelphia)
    Abstract: This paper studies the effects of Los Angeles Metro Rail on the spatial distribution of people and prices. Using a panel of bilateral commuting flows, I estimate a quantitative spatial general equilibrium model to quantify the welfare benefits of urban rail transit and distinguish the benefits of reduced commuting frictions from other channels. The subway causes a 7%-13% increase in commuting between pairs of connected tracts; I select plausible control pairs using proposed subway and historical streetcar lines to identify this effect. The structural parameters of the model are also estimated and are identified using a novel strategy that interacts tract-specific labor demand shocks with the spatial configuration of the city. These parameters indicate people are relatively unresponsive to changes in local prices and characteristics, implying that the commuting response corresponds to a large utility gain. The welfare benefits by 2000 are significant: LA Metro Rail increases aggregate welfare by $246 million annually. However, these benefits are only about one-third of annualized costs. While benefits did not outweigh costs by 2000, I employ more recent data to show that there are dynamic effects: Commuting continues to increase between connected locations.
    Keywords: Subways; Public transit; Commuting; Gravity; Spatial equilibrium
    JEL: J61 L91 R13 R40
    Date: 2018–03–28
  11. By: Scanlon, Kath; Whitehead, Christine M E; Holman, Nancy
    Abstract: Over the last year LSE London organised a series of seminars, round tables and site visits around this the question of how to accelerate new housing development in the capital. Together with practitioners we have analysed barriers to increasing the pace of development in London and explored possible solutions. Participants at our events have included architects, developers and academics, as well as representatives of central government, boroughs, the GLA and housing advocacy groups. More detailed reports can be found at
    JEL: Q15
    Date: 2016–06
  12. By: Segarra Blasco, Agustí, 1958-; Arauzo Carod, Josep Maria; Teruel, Mercedes
    Abstract: This special issue concerns the generation of knowledge and geographical spillovers, and it includes a selection of papers that cover existent research gaps with respect to the role of space in the promotion of knowledge spillovers and innovation. These papers analyse different typologies of innovation processes carried out in several geographical areas and highlight heterogeneities of these processes, after focusing on several determinants in innovation. Empirical results indicate the positive role of geographical spillovers and the importance of accurate matching among firms, in industry and with regard to regional characteristics, in order to ensure the generation of knowledge and innovation. Keywords: innovation, geography, spillovers. JEL Codes: O30, R10
    Keywords: Innovacions tecnològiques -- Direcció i administració, Economia regional, 332 - Economia regional i territorial. Economia del sòl i de la vivenda,
    Date: 2018
  13. By: Jianfei Yang (Communication University of China); Jūratė Černevičiūtė (Vilnius Academy of Arts)
    Abstract: The cultural and creative industries link the traditional knowledge to the ultimate consumer in their capacity to serve both cultural and economic objectives. In this regard, the cultural and creative industries can be seen as consistent with the sustainable development paradigm. Cultural industries cluster is playing an increasingly important role in the development of Chinese cultural industries. This article looks at the Cluster Development Strategy of Chinese Cultural Industries and tries to draw a map of cultural industries clusters in Beijing according to the data gathered from 19 cultural industries clusters in Beijing. With the clusters as a case study, we argue that in the course of development clusters are weak in production research and innovation, combined effect and public service although there is much achievement .At last, the suggestions to promote the sustainable development of cultural industries clusters will be discussed.
    Keywords: cultural system reform,cultural clusters,cultural and creative industries,sustainable development
    Date: 2017–12–29
  14. By: Galaso, Pablo; Kovářík, Jaromír
    Abstract: Numerous studies in management, sociology, and economics have documented that the architecture of collaboration networks affects the innovation performance of individuals, firms, and regions. Little is known though about whether the association between collaboration patterns and innovation outcomes depends on the network geographical boundaries chosen by the researcher. This issue is crucial for both policy-makers and firms that rely on innovation. This article compares the association between collaboration networks and future patenting between regional and country-level collaboration networks. If we relate future innovation to the global, country-wide network our statistical analysis reproduces the findings of the previous literature. However, we find systematically less important effects of regional innovation patterns on subsequent patenting of innovators. Hence, managers and policy makers should choose the boundaries of the innovation networks that they look at carefully, aiming for integration into larger-scale collaboration communities.
    Keywords: innovation, networks, patents, network boundary, boundary specification problem
    JEL: O31 O32 O34 R11
    Date: 2018–03–08
  15. By: Greg Fuller (University of Groningen); Alison Johnston (Oregon State University); Aidan Regan (University College Dublin)
    Abstract: Households consume an increasing share of credit in developed economies; however, past and current comparative capitalism research has had very little to say on housing markets. This is an important blind spot. House prices have crucial implications for national economies. Unsustainable housing prices can cause significant macroeconomic instability, drive wealth inequality, and accelerate households’ accumulation of debt. Moreover, housing markets across the developed world fail to conform to traditional comparative political economy “typologies.” While the liberal economies of the UK and Ireland experienced rapid housing price growth between 1995 and 2008, the “egalitarian” Nordic countries were close behind. We argue that the study of comparative capitalism needs to bring the household back in, through an analysis of the largest financial liability they own - mortgages. To understand heterogeneity in housing inflation, it is vital to understand dynamics in two markets that determine homeownership. First, the labor market, which shapes households’ incomes (on which comparative capitalism and comparative political economy more broadly have a lot to say), and; second, the market for mortgages, which shapes households’ access to financial resources (on which comparative capitalism and comparative political economy have very little to say). We argue that the impact of labor market institutions on housing inflation is conditional on national regulatory frameworks that govern mortgage credit access. Using a panel analysis of 17 OECD economies from 1990 to 2007, we find that in permissive mortgage credit regimes, countries with coordinated labour market institutions that restrain income growth have lower housing inflation than countries with uncoordinated wage-setting. This is what the comparative capitalism literature would predict. However, in restrictive mortgage credit regimes (those which undermine households’ capacity to assume mortgage debt), the structure of labour market institutions have no effect on housing inflation.
    Date: 2018–03–28
  16. By: Levy, Daniel; Snir, Avichai
    Abstract: We use novel and unique data to study the effect of price changes in the market for luxury and middle class homes. We find that luxury home sales respond less to price changes than the middle-class home sales; in the market for luxury homes, past prices affect current prices; luxury home prices persist; and prices of luxury homes are stickier than prices of middle-class homes. Recent macroeconomic models predict that housing markets can have counter-cyclical effect, if home prices are flexible. Our findings imply that home prices, especially luxury home prices, may not be flexible enough to generate such effect.
    Keywords: Housing market, luxury housing, housing demand, price rigidity, sticky prices, predictability, Veblen effect
    JEL: D12 E21 E31 E32 E52 G14 R21 R31
    Date: 2018–02–20
  17. By: Lucia Foster; Cheryl Grim; John C. Haltiwanger; Zoltan Wolf
    Abstract: We examine whether underlying industry innovation dynamics are an important driver of the large dispersion in productivity across firms within narrowly defined sectors. Our hypothesis is that periods of rapid innovation are accompanied by high rates of entry, significant experimentation and, in turn, a high degree of productivity dispersion. Following this experimentation phase, successful innovators and adopters grow while unsuccessful innovators contract and exit yielding productivity growth. We examine the dynamic relationship between entry, productivity dispersion, and productivity growth using a new comprehensive firm-level dataset for the U.S. We find a surge of entry within an industry yields initially an increase in productivity dispersion and then after a significant lag an increase in productivity growth. These patterns are more pronounced for the High Tech sector where we expect there to be more innovative activities. These patterns change over time suggesting other forces are at work during the post-2000 slowdown in aggregate productivity.
    JEL: E24 L26 M13 O31
    Date: 2018–03
  18. By: Ahlfeldt, Gabriel M.; Maennig, Wolfgang; Richter, Felix J.
    Abstract: We use a quasi-experimental research design to study the effects of a spatially targeted renewal policy implemented in Berlin, Germany, in the aftermath of the city’s division during the Cold War period. Our results suggest that over the course of 20 years the policy helped to reduce (increase) the propensity of build-ings being in poor (good) condition within the targeted areas by, on average, 1.2–3% (0.6–2.5%) per year. The estimated effects on property prices range from 0.1–2% per year. In each case, the lower-bound estimate is not statistically significant. We find little evidence of positive housing externalities or positive welfare ef-fects.
    Keywords: urban; renewal; revitalization; redevelopment; quasi-experiment; placed-based policy evaluation; real estate; Berlin
    JEL: D62 H23 R21 R31
    Date: 2017–01–01
  19. By: Sallis, James F; Bull, Fiona; Burdett, Ricky; Frank, Lawrence D.; Griffiths, Peter; Giles-Corti, Billie; Stevenson, Mark
    Abstract: Land-use and transport policies contribute to worldwide epidemics of injuries and non-communicable diseases through traffic exposure, noise, air pollution, social isolation, low physical activity, and sedentary behaviours. Motorised transport is a major cause of the greenhouse gas emissions that are threatening human health. Urban and transport planning and urban design policies in many cities do not reflect the accumulating evidence that, if policies would take health effects into account, they could benefit a wide range of common health problems. Enhanced research translation to increase the influence of health research on urban and transport planning decisions could address many global health problems. This paper illustrates the potential for such change by presenting conceptual models and case studies of research translation applied to urban and transport planning and urban design. The primary recommendation of this paper is for cities to actively pursue compact and mixed-use urban designs that encourage a transport modal shift away from private motor vehicles towards walking, cycling, and public transport. This Series concludes by urging a systematic approach to city design to enhance health and sustainability through active transport and a move towards new urban mobility. Such an approach promises to be a powerful strategy for improvements in population health on a permanent basis.
    JEL: R14 J01 Q15
    Date: 2016–12–10
  20. By: Joan R. Rosés; Nikolaus Wolf
    Abstract: We provide the first long-run dataset of regional employment structures and regional GDP and GDP per capita in 1990 international dollars, stretching over more than 100 years. These data allow us to compare regions over time, among each other, and to other parts of the world. After some brief notes on methodology we describe the basic patterns in the data in terms of some key dimensions: variation in the density of population and economic activity, the spread of industry and services and the declining role of agriculture, and changes in the levels of GDP and GDP per capita. We next discuss patterns of convergence and divergence over time and their explanations in terms of short-run adjustment and long-run fundamentals. Also, we document for the first time a secular decrease in spatial coherence from 1900 to 2010. We find a U-shaped development in geographic concentration and regional income inequality, similar to the finding of a U-shaped pattern of personal income inequality.
    Keywords: regional inequality, Europe, long-run
    JEL: D31 N10 N90 R10
    Date: 2018
  21. By: Michal BURZYŃSKI (CREA - University of Luxembourg); Christoph DEUSTER (IRES - Université Catholique de Louvain); Frédéric DOCQUIER (Université Catholique de Louvain)
    Abstract: This paper characterizes the recent evolution of the geographic distribution of talent, and studies its implications for development inequality. Assuming the continuation of recent educational and immigration policies, it produces integrated projections of income, population, urbanization and human capital for the 21st century. To do so, we develop and parameterize a two-sector, two-class, world economy model that endogenizes education decisions, population growth, labor mobility, and income disparities across countries and across regions/sectors (agriculture vs. nonagriculture). We find that the geography of talent matters for global inequality, whatever the size of technological externalities. Low access to education and the sectoral allocation of talent have substantial impacts on inequality, while the effect of international migration is small. We conclude that policies targeting access to all levels of education and sustainable urban development are vitalto reduce demographic pressures and global inequality in the long term.
    Keywords: human capital, migration, Urbanization, growth, inequality.
    JEL: E24 J24 O15
    Date: 2018–03
  22. By: Saito, Hisamitsu
    Abstract: We examine whether the entry of multinational firms into a region induces the exit of low-productivity local firms from the market and the extent to which this improves regional productivity. For this purpose, we employ establishment-level data on the food manufacturing industry in Indonesia. After controlling for spillover effects, we find a greater left truncation in productivity distribution of local firms in regions with larger number of multinational firms. In addition, we find that this effect has greater impacts on regional productivity than spillover effects. Therefore, in order to maximize the regional benefits of foreign direct investment, governments should facilitate the entry and exit of local firms.
    Keywords: Firm selection; Regional productivity; Spillovers
    JEL: F23 L11 R12
    Date: 2018–03–07
  23. By: Bryson, Alex (University College London); Green, Francis (Institute of Education, University of London)
    Abstract: There is a perception among some commentators and policy analysts that leadership and managerial practices in private schools are superior to those in state schools. Analysing a survey of workplaces in Britain, we find little evidence to support this contention when examining the prevalence of modern human resource management (HRM) practices in schools. Rather, the evidence points to greater use of such practices in state schools. Those practices are correlated with improved school performance in the state sector, but not in the private sector. We discuss the implications of these findings for the policy of encouraging managers of private schools to sponsor state schools.
    Keywords: school performance, human resource management
    JEL: I21
    Date: 2018–02
  24. By: Arauzo Carod, Josep Maria; Coll Martínez, Eva; Turcu, Camelia
    Abstract: This paper focuses on the creative industries and the role played by the existing spatial distribution and agglomeration economies of these activities in relation to their entry decisions. Our main statistical source is the Répertoire des entreprises et des établissements (REE) provided by INSEE, which has plant-level microdata on the location of new establishments between 2006 and 2013. We use Count Data Models to show that location determinants are quite similar in creative and non-creative industries and that specialisation in creative industries positively influences entry of all industries. Keywords: creative industries, firm location, industrial organisation, France
    Keywords: Localització industrial -- França, Organització industrial -- França, Indústries culturals -- França, Indústria del lleure -- França, 332 - Economia regional i territorial. Economia del sòl i de la vivenda,
    Date: 2018
  25. By: Li, Kunpeng
    Abstract: Spatial panel data models are widely used in empirical studies. The existing theories of spatial models so far have largely confine the analysis under the assumption of parameters stabilities. This is unduely restrictive, since a large number of studies have well documented the presence of structural changes in the relationship of economic variables. This paper proposes and studies spatial panel data models with structural change. We consider using the quasi maximum likelihood method to estimate the model. Static and dynamic models are both considered. Large-$T$ and fixed-$T$ setups are both considered. We provide a relatively complete asymptotic theory for the maximum likelihood estimators, including consistency, convergence rates and limiting distributions of the regression coefficients, the timing of structural change and variance of errors. We study the hypothesis testing for the presence of structural change. The three super-type statistics are proposed. The Monte Carlo simulation results are consistent with our theoretical results and show that the maximum likelihood estimators have good finite sample performance.
    Keywords: Spatial panel data models, structural changes, hypothesis testing, asymptotic theory.
    JEL: C31 C33
    Date: 2018–03–21
  26. By: DeWaard, Jack (University of Minnesota); Johnson, Janna (University of Minnesota); Whitaker, Stephan (Federal Reserve Bank of Cleveland)
    Abstract: This paper demonstrates that credit bureau data, such as the Federal Reserve Bank of New York Consumer Credit Panel/Equifax (CCP), can be used to study internal migration in the United States. It is comparable to, and in some ways superior to, the standard data used to study migration, including the American Community Survey (ACS), the Current Population Survey (CPS), and the Internal Revenue Service (IRS) county-to-county migration data. CCP-based estimates of migration intensity, connectivity, and spatial focusing are similar to estimates derived from the ACS, CPS, and IRS data. The CCP can measure block-to-block migration and it is available at quarterly rather than annual frequencies. Migrants’ precise origins are not available in public versions of the ACS, CPS, or IRS data. We report measures of migration from the CCP data at finer geographies and time intervals. Finally, we disaggregate migration flows into first-, second-, and higher-order moves. Individual-level panels in the CCP make this possible, giving the CCP an additional advantage over the ACS, CPS, or publicly available IRS data.
    Keywords: Migration measurement; Credit history; Credit report; Gini index; Crude migration probability; Index of migration connectivity; Migration progression ratio;
    JEL: C81 J61 O15 R23
    Date: 2018–03–23
  27. By: Kyriakos C. Neanidis; Christos S. Savva
    Abstract: This paper examines the presence of cross-country or regional spillovers in financial dollarization. Using spatial econometric techniques and a unique monthly dataset of deposit and loan dollarization extending over two decades for 23 transition countries that belong in the same geographical region, we find strong evidence of regional spillovers in both types of dollarization. Spillovers are channelled by trade and banking linkages, and pass through to all countries independently of their level of financial dollarization. Policy interventions that reduce dollarization in one country can, therefore, affect neighboring countries.
    Date: 2018
  28. By: Emde, Simon; Schneider, Michael
    Date: 2018
  29. By: Tinh Doan (University of Economics and Business, Vietnam); Tran Quang Tuyen (University of Economics and Business, Vietnam); Hien Nguyen (International Labour Organization)
    Abstract: This paper examines the relationship between the quality of provincial governance and labour market returns in Vietnam. We find that better provincial governance has a positive effect on labour market wages for wage-earning workers. The finding is consistent across estimators, even after controlling for worker characteristics, geographic regions, urban context, economic sector and industry type. A better competitive environment for business attracts more firms to enter the market, which in turn creates greater demand for labour. Subsequently, higher demand for labour pushes up wages. Our unique contribution is that we considered the influence of provincial governance on the business environment and labour market returns.
    Keywords: economic transition; institutional competitiveness; labour market returns;Vietnam
    JEL: J21 J24 J31 L19 P23
    Date: 2018–04–10
  30. By: Susanne A. Frick; Andrés Rodríguez-Pose; Michael Wong
    Abstract: Despite a massive recent proliferation of Special Economic Zones (SEZs), there is virtually no quantitative research on what drives their dynamism. The aim of this paper is to address this gap and analyse the factors influencing SEZ performance ? proxied by economic growth ? in emerging countries. The paper relies on two novel datasets, using night-lights data to proxy for SEZ performance and containing a wide range of SEZ policy variables and characteristics across a large number of countries. The main results of the analysis indicate that a) zone growth is difficult to sustain over time; that b) trying to upgrade the technological component or value-added of the economy through SEZ policies is often challenging; and that c) zone size matters: larger zones have an advantage in terms of growth potential. Furthermore, country context significantly determines SEZ performance. Firms look for low cost locations, but in close proximity to large cities. Proximity to large markets as well as pre-existing industrialization also increase SEZ performance. In contrast, incentives and other program specific variables are highly context-specific and not structurally correlated with SEZ performance.
    Keywords: Special Economic Zones, Developing Countries, Industrial Policy, Economic Growth
    JEL: O14 O24 L52
    Date: 2018–04
  31. By: Desmarchelier, Benoît (Lille 1 University); Zhang, Linjia (Division of Economics, Xi'an Jiaotong-Liverpool University)
    Abstract: Contributions in terms of clusters life cycle indicate that intense interactions between a variety of agents within the cluster are essential to its success. Despite being accepted by the literature, this view has not yet been confirmed by analyses of large temporal networks of interactions within industrial clusters. This paper proposes to fill this gap by building and studying the innovation networks of three clusters over a 10 years period. We find that clusters’ growth is all but smooth and that low assortativity and preferential attachment among agents can constitute safeguards against clusters decline. Also, we bring evidence that clusters’ innovation networks are resilient to decline. This observation supports contributions advocating for non-deterministic lifecycles in which clusters can still grow, even after a period of pronounced decline.
    Keywords: Industrial Clusters, Network Science, Dynamics
    Date: 2018–04–01
  32. By: Rutger-Jan Lange (Erasmus University Rotterdam); Coen Teulings (University of Cambridge)
    Abstract: Classic real options theory rests on two debatable assumptions: projects require a fixed investment and generate cash flows that follow a random walk. Relaxing both assumptions leads to radically different conclusions regarding the optimal timing of investment. We model investment using a Stone-Geary production function (Leontief and Cobb-Douglas are special cases) and growth as a mean-reverting Brownian motion. The solution method for this option valuation problem is non-trivial because the state space is two dimensional (level of the cash flow and its growth). For Leontief, the optimal policy is intuitive; the moment of investment involves a trade-off between the level of the cash flow and its growth. For Cobb-Douglas, in contrast, the optimal moment of investment depends only on the growth. More surprisingly, investment should be delayed when growth is high. This conclusion persists in the general Stone-Geary case. Applied to urban real estate, this suggests that up to 20% of cities should delay new construction because of high growth. The option value of vacant land may represent 60% of the value of new construction. High prices of vacant land may thus result from rational investor behavior rather than regulatory inefficiency. Our analysis should be widely applicable, for example to investment in high-growth companies.
    Keywords: real options; mean-reverting growth; real estate construction
    JEL: D81 E22 R11 R30
    Date: 2018–03–30
  33. By: Robert Shimer (University of Chicago)
    Abstract: This paper uses a simple assignment model with time-varying characteristics as a labo- ratory for exploring methods for uncovering evidence of sorting between workers and jobs using matched worker-firm data sets.
    Date: 2017
  34. By: Pflüger, Michael P. (University of Würzburg)
    Abstract: This paper develops a micro-founded city systems model with an endogenous number of cities to explore whether local governments establish the optimal city size when production processes involve environmental pollution. Our analysis delivers two key insights. First, if an optimal scheme to regulate environmental pollution is implemented, cities chosen by local governments are never too large. They are too small if pollution is purely global, but at the optimal size, if pollution is purely local. Second, if no emission scheme is implemented or if emission policies are too lax, then cities steered by local governments, become too large, however.
    Keywords: city systems, environmental pollution, emission policies
    JEL: H73 R12 Q50
    Date: 2018–02
  35. By: Pierre André; Paul Maarek; Fatoumata Tapo (Université de Cergy-Pontoise, THEMA)
    Abstract: Ethnic favoritism often distorts public policies in fractionalized countries, especially in Subsaharan Africa. We estimate the impact of a change in the ethnic group of the education minister and of the president on school construction in Benin. We estimate difference in differences and regression discontinuities based on the dates of the changes, and we find that school constructions are more frequent when the district is coethnic with a new education minister, but less frequent when the district is coethnic with a new president. The effects are very large in magnitude: a coethnic education minister approximately doubles the number of school constructions, a coethnic president approximately divides this number by two. These results suggest that the president does not systematically favor his own ethnic group but has to share power in order to survive. By appointing politicians from other ethnic groups in the government, she redistributes power to these groups, as ministers have the discretionary power to favor their own group. This specific pattern of ethnic favoritism vanishes after the democratization of Benin, in 1991. The checks and balances created by democracy seemingly prevented ethnically targeted public policies.
    Keywords: School constructions, clientelism, ethnic favoritism, power sharing, Benin, Africa
    JEL: H41 H52 O10 O12
    Date: 2018
  36. By: Paul Goldsmith-Pinkham; Isaac Sorkin; Henry Swift
    Abstract: The Bartik instrument is formed by interacting local industry shares and national industry growth rates. We show that the Bartik instrument is numerically equivalent to using local industry shares as instruments. Hence, the identifying assumption is best stated in terms of these shares, with the national industry growth rates only affecting instrument relevance. We then show how to decompose the Bartik instrument into the weighted sum of the just-identified instrumental variables estimators, where the weights sum to one, can be negative and are easy to compute. These weights measure how sensitive the parameter estimate is to each instrument. We illustrate our results through three applications: estimating the inverse elasticity of labor supply, estimating local labor market effects of Chinese imports, and using simulated instruments to study the effects of Medicaid expansions.
    JEL: C1 C18 C2 J0 J2
    Date: 2018–03
  37. By: Melecky, Martin; Roberts, Mark; Sharma, Siddharth
    Abstract: This paper discusses a new policy framework to appraise proposals of large transport infrastructure investments—transport corridors—and applies it to the China-Pakistan Economic Corridor (CPEC). The framework emphasizes the need to focus the appraisal of transport corridor investments on outcomes that go beyond savings in travel time and reductions in vehicle operating costs, and even beyond intermediate outcomes such as trade and agglomeration. The focus should be on the ultimate benefits that households along a corridor, and, more generally, society, can attain—such as increased consumption, better jobs, and greater equity. It also emphasizes the need to identify and manage trade-offs. For example, household income could increase at the expense of environmental degradation. Or alongside winners, a corridor, may also create many losers. The appraisal framework is applied to Pakistan’s portion of the CPEC, using reduced-form econometrics and allowing the impacts of transport corridors to depend on initial market conditions and institutions. The simulations suggest important heterogeneous impacts of CPEC among districts in Pakistan stemming from the variations in restrictions on land use and in secondary education across connected districts.
    Keywords: Infrastructure; Transport Corridors; Economic Corridors, Wider Economic Benefits; Consumption; Poverty; Jobs; Gender; Air Pollution; Pakistan; China.
    JEL: F15 H54 R12 R40
    Date: 2018–03–08
  38. By: Scanlon, Kath; Whitehead, Christine M E; Holman, Nancy
    Abstract: The capital’s most pressing problem is how to accelerate the production of new housing, which has been stubbornly unresponsive to market and demographic pressures. Over the past two years LSE London has been conducting a wide-ranging academic and practical inquiry into the issues and the possible solutions. Over the course of the project we held discussions in council chambers, architects’ studios and City offices, donned hard hats to tour construction sites and pored over financial models. This document presents our findings and recommendations. In the boxes five key players on the London development scene speak frankly (and anonymously) about the challenges they face.
    JEL: Q15
    Date: 2016–12
  39. By: Hughes, Joseph P. (Rutgers University); Jagtiani, Julapa (Federal Reserve Bank of Philadelphia); Mester, Loretta J. (Federal Reserve Bank of Cleveland); Moon, Choon-Geol (Hanyang University)
    Abstract: We consider how size matters for banks in three size groups: banks with assets of less than $1 billion (small community banks), banks with assets between $1 billion and $10 billion (large community banks), and banks with assets between $10 billion and $50 billion (midsize banks). Community banks have potential advantages in relationship lending compared with large banks. However, increases in regulatory compliance and technological burdens may have disproportionately increased community banks’ costs, raising concerns about small businesses’ access to credit. Our evidence suggests that (1) the average costs related to regulatory compliance and technology decrease with size; (2) while small community banks exhibit relatively more valuable investment opportunities, larger community banks and midsize banks exploit theirs more efficiently and achieve better financial performance; (3) unlike small community banks, large community banks have financial incentives to increase lending to small businesses; and (4) for business lending and commercial real estate lending, large community banks and midsize banks assume higher inherent credit risk and exhibit more efficient lending. Thus, concern that small business lending would be adversely affected if small community banks find it beneficial to increase their scale is not supported by our results.
    Keywords: community banking; scale; financial performance; small business lending
    JEL: G21 L25
    Date: 2018–03–13
  40. By: Alexeev, Michael (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Arlashkin, Igor (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Barbashiova, Natalya (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Deryugin, Alexander (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Komarnitskaya, Anna (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Moguchev, Nikita (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Tischenko, Tatiana (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Filippova, Irina (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: The paper presents the results of the analysis of the Russian system of regional fiscal rules, including the comparison of the Russian and the foreign systems of regional fiscal rules. Based on the results of the analysis, recommendations are given to alter regional fiscal rules, established both in federal and in the regional legislation.
    Date: 2018–03
  41. By: Stanislav Šišulák (Academy of Police Force in Bratislava)
    Abstract: There are many benefits, but also risks related to using the social networks. Among the benefits of social networking belong an easy way to be kept in touch, sharing news, photos, videos and statuses with friends, colleagues, but also meeting new people with similar interests. The risks include, in particular, loss of privacy, misuse of shared records, abuse of personal data, unknown real identity of social network members, and even addiction on social networking.The paper focuses the need to invent a complex tool of prevention in the field of controling the criminality in particular the users of social networks. In the papers is introduced a proposals how to develop a specific prevention tool called "Userfocus". Further, there are described techniques to implement this tool into the social networks. The work comprises a research (questionnaire survey) aimed at users of social networks and their understanding of prevention in social networks. The results showed that the communication (interaction) among social network users is a main reason to actively use those services, loss of privacy is the most negative aspect of social networking, the perceiving of users related to the fight against antisocial networks is mostly negative, they strongly agree with the necessity to apply preventive methods focusing the user of social networks and consider the developing the preventive techniques and their application by competent authorities in prevention of crime on social network.
    Keywords: security,anonymity,social network infiltration,userfocus,profile,intervention
    Date: 2017–12–29
  42. By: Christopher G Gibbs (UNSW Sydney); Jonathan Hambur (Reserve Bank of Australia); Gabriela Nodari (Reserve Bank of Australia)
    Abstract: We propose a straightforward approach to adding a housing sector to a large-scale open economy dynamic stochastic general equilibrium model. The model has four intermediate sectors: non-traded, housing, traded, and resources. Households are assumed to consume housing services as part of their consumption bundle and gain utility from holding housing stock. The utility specification increases households' willingness to hold housing stock and implies a relatively high sensitivity of housing investment to monetary policy. We estimate the model on Australian data and find that our model is better able to match a number of empirical regularities compared to a model without housing. These regularities include the sensitivity of housing investment to interest rates and the persistence of aggregate output's response to monetary policy shocks. We then use the model to explore the role of the housing sector in the rebalancing of the Australian economy following the end of the mining boom. First, we find that most of the recent increase in housing investment has been an endogenous response to the large fall in commodity prices and associated declines in interest rates. Second, the pick-up in housing investment has significantly supported the economy over the past five years, ading a ½ percentage point to GDP growth and a ¼ percentage point to inflation, in year-ended terms.
    Keywords: housing; DSGE; open economy; monetary policy; residential investment
    JEL: E23 E32 R31
    Date: 2018–04
  43. By: Deiana, Claudio; Giua, Ludovica
    Abstract: In response to the recent opioid crisis, US states have implemented several policies to reduce the dispensing of opioids and contain drug mortality. We analyse the effectiveness of these laws and their unintended fallouts on labour participation and crime at the local level. Using multiple data sources and a difference-in-difference set-up, we show that the laws targeting the supply for opioids yield larger reductions in prescribed drugs compared to the demand-side policies, particularly in the absence of cross-bordering effects. We observe an improvement in labour market participation and higher crime rates following the enforcement of some of the policies considered.
    Keywords: Prescription Opioids, Drugs, Labour Market, Crime.
    JEL: E24 I18 K14
    Date: 2018–03
  44. By: Ruben V Atoyan; Dora Benedek; Ezequiel Cabezon; Giuseppe Cipollone; Jacques A Miniane; Nhu Nguyen; Martin Petri; Jens Reinke; James Roaf
    Abstract: An assessment of public infrastructure development in the Western Balkans. The paper quantifies the large gaps across various sectors/dimensions, evaluates current infrastructure plans, and discusses funding options available to countries in the region. The paper also identifies important bottlenecks for increased infrastructure investment. Finally, the paper quantifies potential growth benefits from addressing infrastructure gaps, concluding that boosting the quantity and quality of infrastructure is vital for raising economic growth and accelerating income convergence with the EU. The paper concludes with country-specific policy recommendations.
    Keywords: Infrastructure;Europe;Output growth;Growth acceleration;Infrastructure policies;
    Date: 2018–02–07
  45. By: Alana McKenzie; Raluca Nica (Department of International Economics and Business, Bucharest University of Economic Studies); Andra Roman (Department of International Economics and Business, Bucharest University of Economic Studies); Corina Ioana Petrea (Department of International Economics and Business, Bucharest University of Economic Studies)
    Abstract: The paper analyzes the development of the Washington cluster in the aeronautics industry and the factors that contributed to this continuous and substantial growth. In the first section of the text it is described the profile of the country as well as the region and the city, in order to understand the exogenous factors that made possible the enrichment of the aerospace cluster in that particular area. Moving further with the analysis, the paper identifies the main competition from rival clusters, emphasizing the strengths of each rival cluster in comparison with the aeronautics cluster from Washington. A cluster map is provided later in the study, for explaining the intertwined relation between many supporting industries that help sustain the aerospace cluster. Additionally, the text explores the performance of the cluster and the overall competitiveness in the business environment. In the end, the paper seeks to answer the question: What are the key issues that the cluster is facing?
    Keywords: cluster, aerospace industry, Washington, competitiveness
    JEL: L93
    Date: 2017–09
  46. By: Emilia Simeonova; Janet Currie; Peter Nilsson; Reed Walker
    Abstract: This study examines the effects of implementing a congestion tax in central Stockholm on both ambient air pollution and the population health of local children. We demonstrate that the tax reduced ambient air pollution by 5 to 15 percent, and that this reduction in air pollution was associated with a significant decrease in the rate of acute asthma attacks among young children. The change in health was more gradual than the change in pollution suggesting that it may take time for the full health effects of changes in pollution to be felt. Given the sluggish adjustment of health to pollution changes, short-run estimates of the pollution reduction programs may understate the long-run health benefits.
    JEL: H23 I18
    Date: 2018–03
  47. By: He, Ming (Division of Economics, Xi'an Jiaotong-Liverpool); Walheer, Barnabé (Division of Economics, Xi'an Jiaotong-Liverpool University)
    Abstract: CFor several decades, the manufacturing industry has been the pillar industry in terms of economic growth in China. The importance of the manufacturing industry is also highlighted by the numerous policy interventions in favour of this industry. In this paper, we identify the key industrial sectors in terms of technical performances and technological advancements for the period 1999-2007. This represents particular valuable information in the context of policy implementations. The distinguishing features of our study are five-fold. One, we make used of a tailored firm-level database. Two, we distinguish between four types of firm ownership. Three, we consider 30 manufacturing sectors. Four, we extend a well-established methodology to answer our questions. Five, we rely on a robust nonparametric estimation method. Our results confirm that firm ownership is important in explaining technical efficiency and technology gap. We also show that foreign firms set the standard for technical efficiency, and are the leaders in terms of technology advancement; that private firms show technology advancements accompanied by eciency losses; and that China has successfully revitalized state-owned firms, although there is still room for improvement. Finally, we find evidence that China's industrial development plans have been successful in stimulating technology progress in many key sectors; but that the current policy of (re)nationalization may undermine technical efficiency and slow down technology progress.
    Keywords: technology gap; technical eciency; manufacturing industry; China; metafrontier; DEA.
    Date: 2018–04–01
  48. By: Nwabisa Kolisi (Department of Economics, Nelson Mandela University); Andrew Phiri (Department of Economics, Nelson Mandela University)
    Abstract: In this study we investigate the cointegration relationship between interest rates and housing prices in South Africa using the autoregressive distributive (ARDL) model applied to quarterly data covering the post inflation targeting period of 2002:Q1 and 2016:Q4. Our empirical consists of splitting the empirical data into two sub-periods, one corresponding to the pre-crisis period (i.e. 2002:Q1 – 2008:Q2) and the other corresponding to the post-crisis periods (i.e. 2008:Q3 – 2016:Q4). Indeed, our empirical results confirm changing dynamics of the interest rate-housing price relationship in light of the financial crisis with the Reserve Bank appearing to respond to changes in the housing price growth in the post-crisis period. This results reflect the strong macropudential stance which the Reserve Bank has recently assumed after the sub-prime crisis and such policy stance critically depends on monitoring asset prices such as housing and property prices as a means of assessing market conditions.
    Keywords: Interest rates, Housing prices, Monetary policy, Cointegration, ARDL model, South Africa, Emerging economy.
    JEL: C22 C51 E31 E52
    Date: 2017–07
    Date: 2018
    Date: 2018

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