|
on Urban and Real Estate Economics |
| By: | Atif Mian; Amir Sufi |
| Abstract: | Credit supply expansion fuels housing speculation, generating a boom and bust in house prices. U.S. zip codes more exposed to the 2003 acceleration of the private label mortgage securitization (PLS) market witnessed a sudden and large increase in mortgage originations and house prices from 2003 to 2006, followed by a collapse in house prices from 2006 to 2010. During the boom, cities with higher PLS-market exposure were more likely to see a large increase in house prices despite substantial new construction; these cities experienced a severe bust after 2006. Most of the marginal home-buyers brought into the housing market by the acceleration of the PLS market were short-term buyers or ``flippers.'' These marginal buyers had lower credit scores and higher ex post default rates. Speculation by such home-buyers contributed to a large rise in transaction volume from 2003 to 2006, and helped trigger the mortgage default crisis in 2007. |
| JEL: | E44 G01 G12 G2 R21 R31 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24823&r=ure |
| By: | John Muellbauer |
| Abstract: | In housing affordability levels and volatility, there could hardly be a greater contrast than between the UK and Germany. Differences in history, institutions and policies are explored in this paper. Residential housing supply has been far more expansionary in Germany and mortgage credit more tightly regulated. A sensibly regulated rental market and stable German house prices have combined to leave the rental sector with over half of tenures. Policy failures in the UK have resulted in widening intergenerational inequality, increased social exclusion, adversely affected productivity and growth and raised the risk of financial instability. Policy lessons are drawn for the UK, which go far beyond the remit of the immediately responsible Ministry of Housing, Communities and Local Government. |
| Keywords: | Housing markets in the UK and Germany; housing affordability; property taxation; land value tax; land-use regulations; rent regulation; mortgage markets; house price volatility; residential mobility |
| JEL: | R31 R21 H20 H24 G21 R38 R23 |
| Date: | 2018–07–24 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:wpaper:855&r=ure |
| By: | Elias Oikarinen (University of Turku); Steven C. Bourassa (Florida Atlantic University); Martin Hoesli (University of Geneva, Swiss Finance Institute, and University of Aberdeen); Janne Engblom (University of Turku) |
| Abstract: | Using data for 70 U.S. metropolitan areas, this study explores spatial heterogeneity in house price dynamics. We use recent advances in panel econometrics that allow for spatial heterogeneity, cross-sectional dependence, and non-stationary but cointegrated data. We test for spatial differences and analyze the relationship between the price elasticity of housing supply and the income elasticity of prices, as well as bubble size and duration. The long-term elasticity of house prices with respect to aggregate personal income averages 0.81, but varies considerably across metropolitan areas. The long-term income elasticity generally is greater in the more supply-inelastic metropolitan areas, and we show that bubble size and duration are inversely related to supply elasticity. Also short-term momentum and reversion dynamics show substantial spatial heterogeneity. |
| Keywords: | house prices, dynamics, panel data, spatial heterogeneity, spatial dependence, bubbles |
| JEL: | C33 R15 R31 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp1772&r=ure |
| By: | Kelly, Morgan; Ó Gráda, Cormac |
| Abstract: | Abstract Although urban growth historically depended on large inflows of migrants, little is known of the process of migration in the era before railways. Here we use detailed data for Paris on women arrested for prostitution in the 1760s, or registered as prostitutes in the 1830s and 1850s; and of men holding identity cards or joining the army in the 1790s, to examine patterns of female and male migration. We supplement these with data on all women and men buried in 1833. We find that distance was a stronger deterrent to female migration than to male (consistent with more limited employment opportunities for women) that falls with the appearance of railways. Migration was highest from areas of high living standards, measured by literacy rates, with the largest impact again for women, especially those from higher social classes. |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13046&r=ure |
| By: | Pellegrini, Guido; Tarola, Ornella; Cerqua, Augusto; Ceccantoni, Giulia |
| Abstract: | We consider how two groups of regions, which differ in productivity and public good endowments, compete in tax and public goods to attract or reject migrants. In our framework the less productive regions receive public transfers which increase their panoply of public goods. We find that, whenever public transfers are sufficiently high, migration to the less productive regions is observed only in the case when the productivity gap between regions is not extremely wide. We then employ a regression discontinuity design to empirically assess the causal relationship between the reception of large amounts of public funds and migration flows in the EU-15 regions. The theoretical predictions are broadly confirmed as we find a wide expansion in the share of foreign citizens in the highlysubsidized regions, when compared to low-subsidized regions with similar pre-treatment characteristics. |
| Keywords: | migration, fiscal competition, EU Cohesion Policy, regression discontinuity design |
| JEL: | C21 F22 H20 R11 |
| Date: | 2018–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87874&r=ure |
| By: | Annika B. Bergbauer; Eric A. Hanushek; Ludger Woessmann |
| Abstract: | School systems regularly use student assessments for accountability purposes. But, as highlighted by our conceptual model, different configurations of assessment usage generate performance-conducive incentives of different strengths for different stakeholders in different school environments. We build a dataset of over 2 million students in 59 countries observed over 6 waves in the international PISA student achievement test 2000-2015. Our empirical model exploits the country panel dimension to investigate reforms in assessment systems over time, where identification comes from taking out country and year fixed effects along with a rich set of student, school, and country measures. We find that the expansion of standardized external comparisons, both school-based and student-based, is associated with improvements in student achievement. The effect of school-based comparison is stronger in countries with initially low performance. Similarly, standardized monitoring without external comparison has a positive effect in initially poorly performing countries. By contrast, the introduction of solely internal testing and internal teacher monitoring including inspectorates does not affect student achievement. Our findings point out the pitfalls of overly broad generalizations from specific country testing systems. |
| JEL: | H0 I20 J24 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24836&r=ure |
| By: | Bahar Öztürk; Dorinth van Dijk; Frank van Hoenselaar; Sander Burgers |
| Abstract: | We analyze the effect of supply constraints on the dynamics of house prices in the Netherlands. In particular, we look at whether income shocks lead to stronger house price increases in regions characterized with higher supply constraints. We use a panel dataset that contains 316 municipalities over the years 1987-2016. Municipalities are divided in three equally sized groups according to the extent of supply constraints present in each municipality. Our results suggest that income shocks lead to significantly larger increases in house prices in municipalities that are relatively more supply constrained. This holds both in the short- and the long-term. The degree of mean reversion and persistence, however, do not seem to significantly differ between the three groups of municipalities. |
| Keywords: | house prices, income shocks, supply constraints |
| JEL: | G12 R31 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:601&r=ure |
| By: | Karol Jan Borowiecki (University of Southern Denmark); Kathryn Graddy (Brandeis University) |
| Abstract: | In order to investigate the role of immigrant artists on the development of artistic clusters in U.S. cities, we use the US Census and American Community Survey, collected every 10 years since 1850. We identify artists and art teachers, authors, musicians and music teachers, actors and actresses, architects, and journalists, their geographical location and their status as a native or an immigrant. We look at the relative growth rate of the immigrant population in these occupations over a ten year period and how it affects the relative growth rate of native-born individuals in these artistic occupations. We find that cities that experienced immigrant artistic inflows also see a greater inflow of native artists. |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:brd:wpaper:122&r=ure |
| By: | Rangan Gupta (Department of Economics, University of Pretoria, Pretoria, South Africa); Chi Keung Marco Lau (Huddersfield Business School, University of Huddersfield, Huddersfield, United Kingdom); Vasilios Plakandaras (Department of Economics, Democritus University of Thrace, Komotini, Greece); Wing-Keung Wong (Department of Finance, Fintech Center, and Big Data Research Center, Asia University; Department of Medical Research, China Medical University Hospital, Taiwan; Department of Economics and Finance, Hang Seng Management College, Hong Kong, China; Department of Economics, Lingnan University, Hong Kong, China) |
| Abstract: | Accurate forecasts of home sales can provide valuable information for not only policymakers, but also financial institutions and real estate professionals. Against this backdrop, the objective of our paper is to analyze the role of consumers’ home buying attitudes in forecasting quarterly US home sales growth. Our results show that the home sentiment index in standard classical and Minnesota prior-based Bayesian VARs fail to add to the forecasting accuracy of the growth of home sales derived from standard economic variables already included in the models. However, when shrinkage is achieved by compressing the data using a Bayesian compressed VAR (instead of the parameters as in the BVAR), growth of US home sales can be forecasted more accurately, with the housing market sentiment improving the accuracy of the forecasts relative to the information contained in economic variables only. |
| Keywords: | Home Sales, Housing Sentiment, Classical and Bayesian Vector Autoregressive Models |
| JEL: | C32 R31 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:201842&r=ure |
| By: | Gabriel Felbermayr; Jasmin Katrin Gröschl; Mark Sanders; Vincent Schippers; Thomas Steinwachs |
| Abstract: | Climate research suggests that global warming will lead to more frequent and more extreme natural disasters. Most disasters are local events with effects on local economic activity. Hence, assessing their economic impacts with the help of econometric country-level analysis may lead to biased results. Moreover, correct identification is further complicated by the possibility that local shocks shift production and consumption to neighboring locations. In this paper, annual night-time light emission data covering about 24,000 grid cells for the years 1992-2013 are matched to geocoded information on meteorological and geological events. Spatial econometric panel methods are applied to account for interdependencies between locations. Interpreting variation in light emissions as reflecting changes in economic activity, findings convey evidence for pronounced local average treatment effects and strong spatial spillovers, particularly for weather shocks. Moreover, substantial heterogeneity across income groups and regions is identified. |
| Keywords: | natural disaster and weather shocks, night-time light emission, spatial spillovers, grid cell analysis |
| JEL: | F15 O18 O44 Q54 R12 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7146&r=ure |
| By: | Grote, Ulrike; Waibel, Hermann |
| Abstract: | This paper compares empirical findings on the motivation and welfare impacts of rural-urban migration from two comprehensive case studies conducted in Thailand and Vietnam. Panel data of around 4,000 rural households and tracking surveys of close to 1,000 migrants are used from the two countries. The studies find that outcomes depend to a large extent on the development status of the country. Rural households consider outmigration mostly as a livelihood support strategy. Given the scarcity of employment opportunities in the rural areas, migrants see themselves forced to look for jobs in the cities. Interestingly, most migrants perceive themselves to be better off in the cities. The rural households left behind benefit from migration as the remittances tend to have positive income growth effects. The research confirms the calls for improved social protection for migrants in urban areas and for quality schooling in the rural areas. |
| Keywords: | Migration, Poverty, Livelihoods, Employment quality, Vietnam, Thailand |
| JEL: | O15 Q56 R23 |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:tvs:wpaper:wp-001&r=ure |
| By: | Frisvold, David (University of Iowa); Pitts, M. Melinda (Federal Reserve Bank of Atlanta) |
| Abstract: | This paper examines the impact of state merit-aid programs on the labor market attachment of high school-aged youths. The labor force participation rate of teenagers has fallen substantially in recent decades, coinciding with the introduction of merit-aid programs. These programs reduce the price of attending an in-state public college or university for high-achieving students and have the potential to influence students' allocation of time and effort between labor market activities, human capital development, and other forms of leisure. We examine the influence of these programs based on their generosity, both in the amount of aid provided to a recipient and the percent of students who are recipients of aid, and in their selectivity. Our results suggest that programs that are more selective reduce labor force participation, but are not a significant cause in the decline in teenage labor force participation in recent decades. |
| Keywords: | merit aid; labor force participation; education; financial aid |
| JEL: | I2 J2 |
| Date: | 2018–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedawp:2018-04&r=ure |
| By: | Riccardo Pozzi (Department of Economics, Society & Politics, Università di Urbino Carlo Bo); Rosalba Rombaldoni (Department of Economics, Society & Politics, Università di Urbino Carlo Bo); Edgard Sanchez Carrera (Department of Economics, Society & Politics, Università di Urbino Carlo Bo) |
| Abstract: | European Union defines economic and social cohesion as one of the main priorities, however some theoretical and empirical evidence of regional inequalities in Europe, indicates that a process of convergence has been taking place between countries but not within regions inside countries. The first aim of the paper is that of giving an assessment of the existing spatial inequalities and of their recent evolution in the last 15 years for regions of 22 EU members. Our empirical evidence confirms wider disparities at regional level than at country level,and a growing disconnection between the geography of production, that becomes more unequal, and the geography of incomes (so that we might have regional convergence but not regional cohesion). Alsoin the case of Italy this seems to be proved. The second objective of the present work is twofold: on the one hand it investigates how the process of spatial economic concentration is affecting growth and disparities among European regions. On the other hand, the paper takes the opportunity to verify the impact of spatial inequalities to social inequalities. Our results suggest that interpersonal inequalities are affected by spatial disparities and agglomeration of economic activity has a defined role in this process. Other determinants, such as social expenditure and the level of wealth,mitigate but do not cancelthe effect of spatial inequalities.Moreover, the positive relationship between growth of regional disparities and GDP could suggest a possible trade-off between spatial equity and growth with the implication that on policy ground EU has to make a choice whether reversing or not the process of economic concentration. In addition to this the recent changes in inter-regional inequalitiesadvices a reconsideration of the usual framework underlying policy,especially the people-versus-place division in policy formulation. |
| Keywords: | dynamic panel, economic geography, European Union, regional inequality, spatial agglomeration |
| JEL: | R11 R12 R58 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:urb:wpaper:18_05&r=ure |
| By: | Estetiono, Andi; Badaruddin, Badaruddin; Asmirza, Moh. Sofian; Rujiman, Rujiman |
| Abstract: | The paper aims is to investigate the mediation effect of regional development on the relationship between community participation to sustainable transportation in the city of Medan, North Sumatra Indonesia. This research was conducted by an explanatory approach using primary data with purposive sampling technique method based on criteria of 300 respondents. Data analysis techniques used was SEM (Structural Equation Modeling). The results of this study indicate that community participation has positive influence on regional development in the city of Medan, regional development has positive direct effect on sustainable transportation in the city of Medan, community participation has positive direct effect on sustainable transportation in the city of Medan, and community participation has positive indirect effect on sustainable transportation in the city of Medan. Regional development has positive mediation effect between community participation to sustainable transportation in the city of Medan, North Sumatra Indonesia. |
| Keywords: | SEM; Regional Development; Community Participation; Sustainable Transportation |
| JEL: | H63 L91 R48 R58 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87763&r=ure |
| By: | Chichaibelu, Bezawit Beyene; Waibel, Hermann |
| Abstract: | This paper compares empirical findings on the motivation and welfare impacts of rural-urban migration from two comprehensive case studies conducted in Thailand and Vietnam. Panel data of around 4,000 rural households and tracking surveys of close to 1,000 migrants are used from the two countries. The studies find that outcomes depend to a large extent on the development status of the country. Rural households consider outmigration mostly as a livelihood support strategy. Given the scarcity of employment opportunities in the rural areas, migrants see themselves forced to look for jobs in the cities. Interestingly, most migrants perceive themselves to be better off in the cities. The rural households left behind benefit from migration as the remittances tend to have positive income growth effects. The research confirms the calls for improved social protection for migrants in urban areas and for quality schooling in the rural areas. |
| Keywords: | Rural households, Microcredit, Household debt, Household Indebtedness, Decomposition Analysis, Thailand, Vietnam |
| JEL: | D14 G11 R11 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:tvs:wpaper:wp-002&r=ure |
| By: | Alberto Martín (Crei, universitat pompeu fabra and Barcelona GSE); Enrique Moral-Benito (Banco de España); Tom Schmitz (Bocconi university and IGIER) |
| Abstract: | What are the effects of a housing bubble on the rest of the economy? We show that if firms and banks face collateral constraints, a housing bubble initially raises credit demand by housing firms while leaving credit supply unaffected. It therefore crowds out credit to non-housing firms. If time passes and the bubble lasts, however, housing firms eventually pay back their higher loans. This leads to an increase in banks’ net worth and thus to an expansion in their supply of credit to all firms: crowding-out gives way to crowding-in. These predictions are confirmed by empirical evidence from the recent Spanish housing bubble. In the early years of the bubble, non-housing firms reduced their credit from banks that were more exposed to the bubble, and firms that were more exposed to these banks had lower credit and output growth. In its last years, these effects were reversed. |
| Keywords: | housing bubble, credit, investment, financial frictions, financial transmission, Spain |
| JEL: | E32 E44 G21 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:1823&r=ure |
| By: | Ka C. Chan; Ruth F. G. Williams; Christopher T. Lenard; Terence M. Mills |
| Abstract: | This paper applies economic concepts from measuring income inequality to an exercise in assessing spatial inequality in cancer service access in regional areas. We propose a mathematical model for accessing chemotherapy among local government areas (LGAs). Our model incorporates a distance factor. With a simulation we report results for a single inequality measure: the Lorenz curve is depicted for our illustrative data. We develop this approach in order to move incrementally towards its application to actual data and real-world health service regions. We seek to develop the exercises that can lead policy makers to relevant policy information on the most useful data collections to be collected and modeling for cancer service access in regional areas. |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1807.03048&r=ure |
| By: | Rickman, Dan S.; Wang, Hongbo |
| Abstract: | The recent boom and bust in the oil and natural gas sector provide a unique opportunity to assess whether the employment impacts of energy development are symmetric across the differing phases of the energy cycle. This study uses the synthetic control method to examine the boom and bust effects for three key oil and natural gas producing states: Louisiana, North Dakota, and Oklahoma. The three states are chosen as case studies because of their relative intensity in oil production in addition to their production of natural gas. Because of Hurricane Katrina, we examine Louisiana sans New Orleans. The three states also most closely match each other in cyclic movements relative to other energy producing states. The results reveal differing employment impacts across the three states in both the short and long run, with the differences at least in part suggested to be connected to state and local government education expenditure responses to the boom and bust, particularly in terms of their effects on public school teacher salaries. |
| Keywords: | Energy Boom; Resource Curse; Synthetic Control Method |
| JEL: | Q33 R12 R23 |
| Date: | 2018–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87252&r=ure |
| By: | Jacques Melitz (CREST; ENSAE; CEPII); Farid Toubal (CREST; ENS de Paris-Saclay; CEPII) |
| Abstract: | Somatic distance, or differences in physical appearance, proves to be extremely important in the gravity model of bilateral trade in conformity with results in other areas of economics and outside of it in the social sciences. This is also true quite independently of survey evidence about bilateral trust. These findings are obtained in a sample of the 15 members of the European Economic Association in 1996. Robustness tests also show that somatic distance has a more reliable influence on bilateral trade than the other cultural variables. The article finally discusses the interpretation and the breadth of application of these results. |
| Keywords: | Somatic distance, Cultural interactions, Trust, Language, Bilateral Trade |
| JEL: | F10 F40 Z10 |
| Date: | 2018–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:crs:wpaper:2018-05&r=ure |
| By: | Philippe Jehiel (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics); Laurent Lamy (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - AgroParisTech - EHESS - École des hautes études en sciences sociales - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement) |
| Abstract: | We revisit the Tiebout hypothesis in a world in which agents may learn extra information as to how they value the various local public goods once located, and jurisdictions are free to commit to whatever mechanism to attract citizens. It is shown in quasi-linear environments that efficiency can be achieved as a competitive equilibrium when jurisdictions seek to maximize local revenues but not necessarily when they seek to maximize local welfare. Interpretations and limitations of the result are discussed. |
| Keywords: | mechanism design,competing mechanisms,endogenous entry,Tiebout hypothesis,local public goods |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01557585&r=ure |
| By: | Scott Callahan |
| Abstract: | This essay contains a reduced form analysis of campaign contributions made by subsidy receiving farmers, in order to better understand if contribution strategies for campaigns in the House of Representatives by individual farmers differ based on whether or not the candidate represents their local congressional district, a non-local congressional district within the donor?s state, or an out of state congressional district. This is accomplished by applying a Tobit model to a panel of contributions, recording zero values of farmers in a given congressional district contribute nothing to a given legislator. Results indicate that farmers appear to contribute heavily to local campaigns regardless of the power of the legislator to influence agricultural legislation, while the ability of legislators to influence agricultural legislation becomes a more important driver of campaign contributions in more distant elections. Key Words: Agricultural Policy, Lobbying, Rent Seeking, Campaign Finance |
| JEL: | Q18 D72 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:18-11&r=ure |
| By: | Stacey Schreft (Office of Financial Research); Simpson Zhang (Office of Financial Research) |
| Abstract: | The financial system operates through complex networks that operational failures can disrupt. Some network structures are more resilient to random failures, for example, from natural disasters. Others are more resilient to targeted incidents, such as hacks. This brief illustrates how network analysis can be used to better understand possible risks to financial stability from such disruptions, and possible defenses. |
| Keywords: | Network analysis, network modeling, cybersecurity, financial stability, CP-star |
| Date: | 2018–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:ofr:briefs:18-02&r=ure |
| By: | Gravelle, H; Liu, D; Propper, C; Santos, R |
| Abstract: | We examine whether family doctor firms in England respond to local competition by increasing their quality. We measure quality in terms of clinical performance and patient-reported satisfaction to capture its multi-dimensional nature. We use a panel covering 8 years for over 8000 English general practices, allowing us to control for unobserved local area effects. We measure competition by the number of rival doctors within a small distance. We find that increases in local competition are associated with increases in clinical quality and patient satisfaction, particularly for firms with lower quality. However, the magnitude of the effect is small. |
| Date: | 2018–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:imp:wpaper:60680&r=ure |
| By: | Corrigan, Eoin; Foley, Daniel; McQuinn, Kieran; O'Toole, Conor; Slaymaker, Rachel |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp593&r=ure |
| By: | Kathryn Baragwanath Vogel; Ran Goldblatt; Gordon H. Hanson; Amit K. Khandelwal |
| Abstract: | This paper proposes a methodology for defining urban markets based on economic activity detected by satellite imagery. We use nighttime lights data, whose use in economics is increasingly common, to define urban markets based on contiguous pixels that have a minimum threshold of light intensity. The coarseness of the nightlight data and the blooming effect of lights, however, create markets whose boundaries are too expansive and too smooth relative to the visual inspection of actual cities. We compare nightlight-based markets to those formed using high-resolution daytime satellite imagery, whose use in economics is less common, to detect the presence of builtup landcover. We identify an order of magnitude more markets with daytime imagery; these markets are realistically jagged in shape and reveal much more within and across-market variation in the density of economic activity. The size of landcover-based markets displays a sharp sensitivity to the proximity of paved roads that is not present in the case of nightlight-based markets. Our results suggest that daytime satellite imagery is a promising source of data for economists to study the spatial extent and distribution of economic activity. |
| JEL: | O1 O18 R1 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24796&r=ure |
| By: | Corrigan, Eoin; Watson, Dorothy |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp594&r=ure |
| By: | Fujii, Hidemichi; Iwata, Kazuyuki; Chapman, Andrew; Kagawa, Shigemi; Managi, Shunsuke |
| Abstract: | This study analyzed the relationship between urban CO2 emissions and economic growth applying the environmental Kuznets curve hypothesis. The objective of this study is to investigate how urban CO2 emissions and their composition have changed with urban economic growth, depending on city characteristics, using a dataset of metropolitan areas. We obtained data for 276 cities in 26 countries for the years 2000, 2005, and 2008. The dataset includes urban CO2 emissions, GDP, and population. Additionally, data regarding compact city variables are applied to determinants analysis using an econometric approach. The results demonstrate an inverted U-shape relationship between urban CO2 emissions and urban economic growth. Additionally, an inverted U-shape relationship is observed for the transport and residential & industry sectors. However, the turning points of each inverted U-shape curve varies. This result implies that we can better understand urban policies for reducing urban CO2 emissions by considering the characteristics of each sector. |
| Keywords: | urban CO2 emissions, environmental Kuznets curve, compact city, metropolitan area |
| JEL: | O18 Q54 Q56 R00 |
| Date: | 2018–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87859&r=ure |
| By: | Stephen Gibbons; Daniel J. Graham |
| Abstract: | This paper is concerned with the Wider Economic Impacts (WEIs) of transport improvements that arise via scale economies of agglomeration. It reviews the background theory and empirical evidence on agglomeration, explains the link between transport and agglomeration, and describes a three step procedure to appraise agglomeration impacts for transport schemes within Cost Benefit Analysis (CBA). The paper concludes with a set of recommendations for future empirical work on agglomeration and transport appraisal. |
| Keywords: | agglomeration, transport, cost benefit analysis |
| JEL: | R1 R4 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1561&r=ure |
| By: | Christian Krekel (LSE - London School of Economics and Political Science, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics) |
| Abstract: | We study whether raising instructional time can crowd out student pro-social behaviour. To this end, we exploit a large educational reform in Germany that has raised weekly instructional hours for high school students by 12.5% as a quasi-natural experiment. Using a difference-in-differences design, we find that this rise has a negative and sizeable effect on volunteering, both at the intensive and at the extensive margin. It also affects political interest. There is no similar crowding out of scholastic involvement, but no substitution either. Impacts seem to be driven by a reduction in available leisure time as opposed to a rise in intensity of instruction, and to be temporary only. Robustness checks, including placebo tests and triple differencing, confirm our results. |
| Keywords: | Instructional Time, Student Pro-Social Behaviour, Volunteering,Scholastic Involvement, Political Interest, Quasi-Natural Experiment,G8 Reform, SOEP |
| Date: | 2017–08–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01578364&r=ure |
| By: | Flögel, Franz; Gärtner, Stefan |
| Abstract: | As expected, this comparison of the German and the UK banking systems shows substantial differences between the countries. In the UK, savings banks disappeared long ago and other regional banks have never become important in lending to business. Instead, the five large commercial banks dominate business lending. Hardly any short-distance lenders still currently exist in the UK according to our qualitative distance classification of banks and other financial providers for small firms. The closure of the very last local savings bank in 2017 marks the preliminary end of traditional regional banking in the UK and indicates that the financial crisis indirectly challenges small and regional banks disproportionally. This is because the low interest rate environment and more complex banking regulations affect small and regional banks more, making it almost impossible for small standalone banks to survive. Problems in small firm finance have been discussed in the UK at least since the 1990s and government support has been given to community development financial institutions and credit unions in order to close the financial gap for small firms. Due to the financial crisis, access to finance has become increasingly difficult for small businesses, especially in remote regions, so the debate on how to reinvent local banking (and hence how to improve access to finance) has gathered momentum. Three options are under discussion. The first is to create in one stroke a regional and public banking group with a substantial market share by restructuring the Royal Bank of Scotland into a network of local and public banks. The second is to recreate regional banks on an entirely new basis with the help of a new association that would provide economies of scale and knowledge in order to enable local people to create their local banks. The third is to establish local banking by upscaling other financial providers, such as credit unions and responsible finance providers. Whether any of these options are realistic is difficult to say right now. One additional option that could improve SME finance are the so-called challenger banks, a type of bank unknown in Germany. These banks differ in terms of ownership, business model and regional market orientation, yet our findings suggest that they tend to operate on a more decentralised (short-distance) business model than large commercial banks. |
| Keywords: | comparing banking systems,SME finance in the UK,decentralised vs. centralised banking |
| JEL: | D43 E21 G01 G21 G38 R12 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iatdps:1803&r=ure |
| By: | Joshua M. Congdon-Hohman (Department of Economics and Accounting, College of the Holy Cross) |
| Abstract: | Past literature has established that individuals who have been incarcerated face difculties reentering the work force following their release, while finding and keeping a job can significantly reduce recidivism amongst individuals with prior criminal convictions. In attempt to improve employment outcomes, many local and state governments in the United States have initiated "Ban the Box" regulations. These initiatives delay inquiries regarding criminal history on job applications. Versions of ban the box regulations covering public sector employment have been enacted in 31 states and more than 150 local governments. Ban the box laws have included private employers in eleven states and over 30 metropolitan areas including New York, Los Angeles, Chicago, Washington D.C, Philadelphia, San Francisco, and Seattle. This study uses biennial data from November CPS reports from 2004 through 2016 to estimate the impact of ban the box laws on labor market outcomes using a unique proxy to identify individuals with a criminal record. With a few exceptions, the results do not show the intended improvements in employment and other labor market measures for those with a criminal history. |
| Keywords: | Labor Demand, Labor Market Discrimination, Consequences of Incarceration |
| JEL: | J18 J78 K31 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:hcx:wpaper:1808&r=ure |
| By: | Stephen Gibbons; Stephan Heblich; Ted Pinchbeck |
| Abstract: | Transport investment is a popular policy instrument and many recent studies have investigated whether new infrastructure generates economic benefits and has spatial economic impacts. Our work approaches the question differently and looks at what happens when a substantial part of a national railway network is dismantled, as happened during the 1950s, 60s and 70s in Britain. Part of this disinvestment occurred following controversial reports on railway profitability and structure in the early 1960s - a course of action known colloquially as 'the Beeching Axe' after the author of the reports. The removal of railways is often blamed for the decline of rural areas and peripheral towns in post-war Britain. This rail disinvestment program was targeted at removal of underused and unprofitable lines and not specifically targeted at local economic performance. Even so, we find that there is a relationship between pre-war population decline and the depth of the rail cuts in the post 1950 period. Conditional on these pre-trends, we show that loss of access by rail did cause relative population decline, decline in the proportion of skilled workers, and decline in the proportion of young people in affected areas. The elasticity of population with respect to changes in centrality (or market access) is around 0.3 in our main estimates. Instrumental variables estimates based on the network structure of the cuts yield higher elasticities. An implication of these findings is that rail transport infrastructure plays an important role in shaping the spatial structure of the economy. |
| Keywords: | rail, infrastructure, Beeching |
| JEL: | H54 R1 R4 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1563&r=ure |
| By: | Filippo Elba; Fiammetta Cosci; Anna Pettini; Federico M. Stefanini |
| Abstract: | The 2016 report of the European Transport Safety Council claims that EU safety progress has come to a standstill. This study aims at deepening the knowledge of factors that influence adolescents’ risky behavior on the road. Bayesian Networks offer a promising new way to looking at the issue. In the analysis of a dataset collected in Tuscany, Italy, called EDIT, we found evidence that the use of alcohol and illegal substances explain only part of the probability of having an accident, and that other observable variables, like the level of distress or the type of school attended are significantly related to the probability of incurring in a road crash. New and close attention should be given to a systemic approach and to a plethora of environmental and individual variables that may rise the probability of road accidents for very young drivers. |
| Keywords: | Bayesian Networks, structural learning, road accidents, distress factors, risky behavior, adolescence, youth, novice drivers |
| JEL: | C11 D91 I11 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7144&r=ure |
| By: | Drydakis, Nick |
| Abstract: | Using a data set that contains information on retrospective school-age bullying, as well as on workplace bullying in the respondents’ present job, the outcomes of this study suggest that bullying, when it is experienced by sexual orientation minorities tends to persist over time. According to the estimations, it seems that school-age bullying of LGB people is associated with victims’ lower educational level and occupational sorting into non-white-collar jobs, especially for gay/bisexual men. In addition, the outputs suggest that for both gay/bisexual men and lesbian/bisexual women, school-age bullying is positively associated with workplace bullying and negatively associated with job satisfaction. Additional results suggest a negative association between workplace bullying and job satisfaction. However, the outcomes show a positive association between the existence of an LGBT group in the workplace and job satisfaction. |
| Keywords: | School-age bullying,workplace bullying,job satisfaction,sexual orientation |
| JEL: | J16 J28 J70 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:237&r=ure |
| By: | Atuhurra, Julius; Alinda, Violet |
| Abstract: | For most school-going children in many developing countries of Sub-Saharan Africa today for whom schooling is not translating into actual learning, the question regarding the true value of education remains unanswered. Can the use of descriptive curriculum analytics impact teachers’ in-class instructional decisions as to lead to improved opportunities for children’s learning? Recent evidence from citizen-led annual learning assessments conducted in the three East African countries of Kenya, Tanzania and Uganda reveal extremely low learning gains as children progress through school, starting in the very early grades where they are expected to acquire foundational competences. Whereas several factors have been studied, there is shockingly very little evidence on basic education curricula effectiveness in East Africa. Twaweza East Africa has adapted the ‘Surveys of Enacted Curriculum’ SEC framework to analyze basic education curricula effectiveness in the region. In this study, we developed a subject taxonomy for primary-level Mathematics in Uganda – one of four core learning areas – and analyzed the distribution of relative emphases in the standards, classroom instruction, and assessments. We conclude that the lack of nationally-agreed well-thought subject-specific comprehensive taxonomies likely translates into content coverage inconsistencies that might deter achievement of planned progressive learning across grades. We find no clear evidence of a systematic emphasis structure on developing learner performance expectations as they progress across grades. Our analyses also reveal low alignment indices between standards and national assessments, and between standards and classroom instruction. Finally, we find evidence of content delivery disparities between lower primary teachers in rural versus urban school settings, which disparities likely disadvantage rural children from early on thus making it hard for them to master the basic competences required for progress to higher grades |
| Keywords: | Primary mathematics; Curriculum Standards; Classroom instruction; Standardized assessments; Opportunity to learn |
| JEL: | I20 I21 I24 I25 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87583&r=ure |
| By: | Alison Cathles; Dongshu Ou; Simone Sasso; Mary Setrana; Tom van Veen |
| Abstract: | This paper analyzes numeracy and literacy skills of migrants, using PISA and PIAAC data from twelve OECD countries. Our results first show some convergence of the skills gap between the second generation immigrants and the natives over time. Second, the gap in literacy skills among the first-generation and natives and among first-generation and second-generation immigrants has increased over time. Third, demographics and family background contribute to the achievement gaps between different groups. Fourth, school input variables do contribute to skills gaps of young adults with different immigrant backgrounds. Fifth, an immigrant background does not appear to affect the chances of studying in a STEM field. |
| JEL: | I24 I25 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7157&r=ure |
| By: | Adrian Peralta-Alva; Marina Mendes Tavares; Xuan S. Tam; Xin Tang |
| Abstract: | We quantitatively investigate the macroeconomic and distributional impacts of fiscal consolidations in low-income countries (LICs) through value added tax (VAT), personal income tax (PIT), and corporate income tax (CIT). We extend the standard heterogeneous agents incomplete markets model by including multiple sectors and rural-urban distinction to capture salient features of LICs. We find that overall, VAT has the least efficiency costs but is highly regressive, while PIT impacts the economy in the opposite way with CIT staying in between. Cash transfers targeting rural households mitigate the negative distributional impacts of VAT most effectively, while public investment leads to little redistribution. |
| Date: | 2018–06–13 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:18/146&r=ure |
| By: | Margit Kirs; Veiko Lember; Erkki Karo |
| Abstract: | Based on the case studies from the Estonian biotechnology sector, we explore the development trajectories of academic business ventures in a country where the formal and linear model of technology transfer and commercialization have been at the core of the innovation policy, but the exploitation and diffusion of knowledge generated through formal university-industry linkages has remained limited. We show that even in the area of biotechnology, where one could expect this model of technology transfer to be most visible, the model is not functioning in practice and the policy has had limited impact. The more systemic evolutionary approach to innovation and knowledge diffusion seems to better grasp the contextual aspects of technology transfer in catching-up context, while also providing more informative input for policy-making. |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:tth:wpaper:79&r=ure |
| By: | Stefano Breschi; Francesco Lissoni; Ernest Miguelez |
| Abstract: | Based on an original dataset linking patent data and biographical information for a large sample of US immigrant inventors with Indian names and surnames, specialized in ICT technologies, we investigate the rate and determinants of return migration. For each individual in the dataset, we both estimate the year of entry in the United States, the likely entry channel (work or education), and the permanence spell up to either the return to India or right truncation. By means of survival analysis, we then provide exploratory estimates of the probability of return migration as a function of the conditions at migration (age, education, patenting record, migration motives, and migration cohort) as well as of some activities undertaken while abroad (education and patenting). We find both evidence of negative self-selection with respect to educational achievements in the US and of positive self-selection with respect to patenting propensity. Based on the analysis of time-dependence of the return hazard ratios, return work migrants appear to be negatively self-selected with respect to unobservable skills acquired abroad, while evidence for education migrants is less conclusive. |
| JEL: | F22 O15 O31 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24809&r=ure |
| By: | Andres Gomez-Lievano; Vladislav Vysotsky; Jose Lobo |
| Abstract: | We show that the phenomenon of Increasing Returns to Scale (IRS) can artificially emerge in the absence of any type of sorting or agglomeration effects, in a systematic, predictable and measurable way. This is in contradiction to the convention where the null hypothesis is the absence of IRS. We show the null hypothesis should instead be the presence of IRS when the variance of log-productivity is of the same order of magnitude than the log-size of the smallest observation in the sample. Our analytical results are validated through simulations and through their application to real data of wages across municipalities in Colombia. This effect can obscure the real size productivity premium, and we provide a methodology to statistically test it. |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1807.09424&r=ure |
| By: | Stéphanie Combes (CREST; INSEE); Pauline Givord (CREST; INSEE) |
| Abstract: | This paper explores how the academic network extends and its consequences on research outcomes. Using a large academic bibliographic database in research in economics (RePEc), we model first the probability that two researchers collaborate, and secondly the impact of network indicators on the citation rate of research articles. Our results show the existence of a gender-based bias in the researcher matching process. Researchers are more likely to coauthor together when they are of the same gender, even when we control for productivity and proximity in the academic network before they match, as well as unobservable fixed effects of the pair of researcher. This effect is observed mostly at the beginning of the career and fades with the seniority. We also observe that network indicators have a positive impact on the citation index of research articles, suggesting that these selective matching mechanisms may have cumulative effects. |
| Keywords: | network analysis, selective matching, gender gap, Probit regression with fixed effects, quantile regression |
| JEL: | J24 O31 J45 |
| Date: | 2018–06–16 |
| URL: | http://d.repec.org/n?u=RePEc:crs:wpaper:2018-07&r=ure |
| By: | Gabrielle Fack (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine, PSL - PSL Research University, PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); Julien Grenet (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); Yinghua He (TSE - Toulouse School of Economics - Toulouse School of Economics, Rice University [Houston]) |
| Abstract: | We propose novel approaches and tests for estimating student preferences with data from centralized matching mechanisms, like the Gale-Shapley Deferred Acceptance, when students are strictly ranked by, e.g., test scores. Without requiring truthtelling to be the unique equilibrium, we show that the matching is (asymptotically) stable, or justified-envy-free, implying that every student is matched with her favorite school/college among those she is qualified for ex post. Having illustrated the approaches in simulations, we apply them to school choice data from Paris and demonstrate evidence supporting stability but not truth-telling. We discuss when each approach is more appropriate in real-life settings. |
| Keywords: | Gale-Shapley Deferred Acceptance Mechanism,School Choice,Stable Matching,Student Preferences,Admission Criteria,College Admissions |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01215998&r=ure |
| By: | Shusen Qi (Xiamen University); Ralph De Haas (European Bank for Reconstruction and Development and Tilburg University); Steven Ongena (University of Zurich, Swiss Finance Institute, KU Leuven, and Centre for Economic Policy Research (CEPR)); Stefan Straetmans (Maastricht University and University of Antwerp) |
| Abstract: | We study how information sharing between banks influences the geographical clustering of branches. We construct a spatial oligopoly model with price competition that explains why bank branches cluster and how the introduction of information sharing impacts clustering. Dynamic data on 59,333 branches operated by 676 banks in 22 countries between 1995 and 2012 allow us to test the hypotheses derived from this model. Consistent with our model, we find that information sharing spurs banks to open branches in localities that are new to them but that are already relatively well served by other banks. Information sharing also allows firms to borrow from more distant banks. |
| Keywords: | Information Sharing, Branch Clustering |
| JEL: | D43 G21 G28 L13 R51 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp1774&r=ure |
| By: | Iammarino, Simona; McCann, Philip; Ortega-Argilés, Raquel |
| JEL: | R14 J01 L81 |
| Date: | 2018–06–18 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:86626&r=ure |
| By: | Ali, Amjad; Zulfiqar, Kalsoom |
| Abstract: | Mostly economists believe that due to nonexistence of agglomeration economies, there are less chances of employment spatial distribution in an economy. Following the strands of previous literature about agglomeration special impacts, this study has uplifted the curtain from some interesting realities. This study has examined the association unemployment between natural resources agglomeration in Pakistan from 1980 to 2016. For measuring natural resources agglomeration, an index has been constructed based on coal production, oil production, forest area and agricultural land as percentage of total land area. The study has utilized autoregressive distributed lag (ARDL) method of co-integration. The results show that natural resources agglomeration, secondary school enrollment, foreign direct investment and inflation has negative and significant impact on unemployment in Pakistan. The results reveal that population is putting positive impact on unemployment in Pakistan. The study finds that natural resources agglomeration is an important factor for reducing unemployment in Pakistan. There are some other factors for agglomeration economies, i.e. local economic policies, natural resources availability and amount of manpower for employment spatial distribution in Pakistan. So efforts are needed on mega scale for exploration, proper usage and functioning of natural resources in Pakistan. |
| Keywords: | unemployment, natural resources, inflation, foreign direct investment |
| JEL: | E24 N50 P24 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87968&r=ure |
| By: | Lars Hornuf; Sabrina Jeworrek |
| Abstract: | In this study, we investigate whether and to what extent community managers in online collaborative communities can stimulate crowd activities through their engagement. Using a novel data set of 22 large online idea crowdsourcing campaigns, we find that active engagement of community managers positively affects crowd activities in an inverted Ushaped manner. Moreover, we evidence that intellectual stimulation by managers increases community participation, while individual consideration of users has no impact on user activities. Finally, the data reveal that community manager activities that require more effort, such as media file uploads instead of simple written comments, have a larger effect on crowd participation. |
| Keywords: | crowdsourcing, open innovation, crowdsourced innovation, crowdworking, ideation, managerial attention |
| JEL: | J21 J22 L86 M21 M54 O31 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7153&r=ure |
| By: | Mihai, Florin-Constantin; Iatu, Corneliu; Grozavu, Adrian |
| Abstract: | The paper examines the waste management issues in the villages annexed to administrative-territorial units of the Romanian cities which have been frequently neglected by urban waste operators. The lack of waste collection services in such peri-urban communities favored the illegal waste disposal practices particularly prior to EU accession. The extension of waste collection services from main cities to such areas is compulsory in order to mitigate the environmental risks and the public health threats. The paper estimates the amounts of household waste susceptible to be uncontrolled disposed of by peri-urban villages in different geographical areas of North-East region with a particular focus on Neamt county. The paper points out that these rural settlements should receive the same attention concerning the municipal waste management services as the main urban areas. Traditional recovery of waste fractions at the household level (e.g., home composting) should be further promoted in such areas in order to avoid illegal dumping issue and to prevent the landfill of biodegradable waste as requested by EU regulations. |
| Keywords: | waste management, illegal waste dumping, peri-urban areas, pollution |
| JEL: | H76 Q53 Q56 R11 R52 R58 |
| Date: | 2018–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87955&r=ure |
| By: | Ludovic Dibiaggio (SKEMA Business School; Université Côte d’Azur; GREDEG CNRS); Benjamin Montmartin (SKEMA Business School; Université Côte d’Azur; OFCE Sciences.Po; GREDEG CNRS); Lionel Nesta (Université Côte d’Azur; GREDEG CNRS; OFCE Sciences.Po) |
| Abstract: | Recent studies highlight an increasing within-country divergence in regional performance. This paper develops the concept of regional alignment to suggest that synergistic relations among the scientific expertise, technological specialization and industry composition of regions affect regional productivity growth. In this paper, we test an extended conditional beta-convergence model using data on 94 French departments (NUTS3) for the period 2001-2011. Our results indicate that a conditional beta-convergence is associated with a sigma-divergence process in the total factor productivity (TFP) growth of French regions. This process is strongly affected by the level of regional alignment. Indeed, we find evidence that regional alignment both directly and indirectly influences regional productivity growth. The indirect effect of regional alignment materializes through its leverage on R&D investment, which is one of the most important drivers of productivity growth. Moreover, using a heterogeneous coefficients model, we show that the positive effect of regional alignment on TFP growth increases with the industrial and technological diversity of regions, which suggests that regional alignment increases the value of Jacobs externalities more than Marshall-Arrow-Romer (MAR) externalities. |
| Keywords: | Regional Alignment, beta-convergence, productivity growth, multi-regional model |
| JEL: | R11 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2018-18&r=ure |
| By: | Riccardo Cappelli; Fabio Montobbio; Andrea Morrison |
| Abstract: | We investigate the impact of the 2008 crisis to study the relationship between economic and technological resilience in 248 European Union regions. For economic resilience we measure the difference between the level of unemployment rate before crisis and the level of unemployment rate at its peak after the crisis - i.e., the unemployment resistance. Using European Patent Office patents, we look at all technological crises in each region since 1978 and build a variable of technological resilience measuring the historical ability of a region to maintain its level of knowledge creation in face of adverse shocks - i.e., the technological resistance. We find that technological resistance is a good predictor of economic resistance. In particular, our results show that (1) important interaction effects exist between technological resistance and human capital, (2) technological resistance and the level of human capital are less effective in protecting female and elder adult workers in an economic crisis and (3) important country level effects are present. |
| Keywords: | Economic resilience, technological resilience, unemployment, recession, human capital |
| JEL: | R11 J64 J24 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1831&r=ure |
| By: | Benjamin Hilgenstock; Zsoka Koczan |
| Abstract: | The paper examines the potential effects of international migration on labor force participation in advanced economies in Europe. It documents that migration played a significant role in alleviating aging pressures on labor supply by affecting the age composition of receiving countries’ populations. However, micro-level analysis also points to differences in average educational levels, as well as differences in the effects of any given level of education on participation across migrants and natives. Difficulties related to the recognition of educational qualifications appear to be associated with smaller effects of education on the odds of participation for migrants, especially women. |
| Date: | 2018–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:18/148&r=ure |