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on Urban and Real Estate Economics |
| By: | Sandra Vieira Gomes; Costin Ciora; Ion Anghel |
| Abstract: | Transport plays a crucial role in urban development by providing access for people to education, markets, employment, recreation, health care and other key services. Cities which prioritize public transport and non-motorized modes are considered at the top of surveys measuring urban quality of life. Concerns over the quality of life have spread to the growing use of active transportation modes, and as so, proximity to the public transportation system is highly valued. The relationship between public transport accessibility and residential land value is the subject of many recent researches. A house located near public transports will tend to be sold at higher prices. This is due to the convenience that public transportation brings to its influence area, enabling quick access to the network and reduced travel times. However, some studies have found that this proximity can induce adverse effects on property values.The main concern of this paper is to address the importance of a public transport subway system in urban areas, and to analyse the effect of housing distance to stations has in real estate prices.A geocoded database integrated in a geographical information system was used, containing information on housing unit’s sales from Bucharest, Romania, between 2013 and 2017. This system allowed analysing and exploring all data characteristics. The effect of housing distance to stations has in real estate prices was obtained through statistical modelling procedures, developed within an R software environment. |
| Keywords: | Accessibility; Bucharest; Metro; Public Transport; Residential pricing |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_108&r=ure |
| By: | Ádám Banai (Magyar Nemzeti Bank); Nikolett Vágó (Magyar Nemzeti Bank) |
| Abstract: | Housing market is important from a macroprudential perspective because it has a strong effect on the banking sector. Changes in real estate prices may affect the level of bank risk through household mortgage lending, however, the literature has no clear conclusion on this impact mechanism. Using a bank-level database containing quarterly data from 1998 to 2016 we estimated dynamic fixed-effects panel models to examine how bank risk is influenced by housing prices via mortgage lending in the Hungarian banking system. According to the results (1) higher house prices lead to higher bank risk, (2) the higher the share of mortgage loans at a bank, the stronger the positive effect of house prices on bank risk. In the period following the onset of the crisis a much stronger positive relationship could be observed between house prices and bank risk than before the crisis. Using the house price gap which measures the deviation of house prices from their fundamental value we provide empirical evidence that the deviation hypothesis was stronger for Hungary. This suggests that both banks and households tend to undertake excessive risks during a housing market boom, which can be mitigated by macroprudential policy instruments. |
| Keywords: | bank risk, house price index, mortgage loan, real estate market |
| JEL: | G21 G28 G30 C23 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:nbp:nbpmis:289&r=ure |
| By: | Damian Damianov; Cheng Yan; Xiangdong Wang |
| Abstract: | Following the financial crisis, a voluminous literature has developed that aims to shed light on the endogenous relationship between mortgage default risk and house prices. In this paper we contribute to this literature by using measures of mortgage default risk reflecting different stages of the household default decision: from early online searches to actual default, to the resale of the foreclosed home. We use a Panel Vector Autoregressive (PVAR) model to examine the impact of these default risk measures on two segments of residential real estate markets (top and bottom price tiers) from 92 metropolitan areas in 25 US states. We find that the default risk derived from households’ Google searches has the strongest negative impact on high value homes while the percentage of home foreclosed and the foreclosure resales have the strongest negative impact on the prices of low value homes. These results hold for both judicial and non-judicial foreclosure states as well as ‘recourse’ states. In ‘non-recourse’ states the number of homes foreclosed has the strongest negative impact on high value homes, which we interpret as evidence in support of the ”double trigger hypothesis.” That is, households default not only because they are in financial distress but also because they end up with a negative equity in their homes considering current house prices. |
| Keywords: | Foreclosure; House Prices; Mortgage Default Risk |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_163&r=ure |
| By: | Jaclene Begley |
| Abstract: | Condominiums comprise about eight percent of the current occupied housing stock in the United States; and a larger share (11 percent) in cities. Since 2001, the share of the condominium stock in cities has grown by more than 80 percent. Yet, they are an understudied asset, partially due to a lack of comprehensive data, with only a small body of research exploring the unique opportunities and challenges they bring to households and policymakers. Demographically, the U.S. is experiencing increasing demand for cities, decreasing household sizes, and an increasing share of aging homeowners who are over-invested in housing. These factors, coupled with recently identified needs for energy-efficient housing, supply-side solutions to increase housing affordability, and mixed-use development, all suggest condominiums could be a viable alternative to traditional single-family homes for an increasing share of households.The paper is divided into three parts, the first documents condominium unit and dweller characteristics using the American Housing Survey. This section also explores the different types of costs associated with condominiums, and documents housing quality and mobility trends for these units. The second section documents housing affordability for condominium occupants. It looks at a number of factors, including: the probability of a unit being purchased by a first-time homebuyer or a downsizing older household, housing-cost-burdened-status of occupants, and housing conditions in any given year. The last section looks at condominium loan performance. It uses Fannie Mae data on loan performance to look at the mortgage default probabilities for condominium properties compared with single-family homes over time. These data allow for further analysis of the condominium investor market, and the paper subsequently explores diverse behavior across owners, secondary homes, and investors in these markets to look at disparate outcomes across groups. Finally, using both datasets, the paper compares projected wealth outcomes for different unit-types over the past decade. From a housing policy perspective, there is very little research on this sector of the housing market, and the unique nuances associated with condominiums are important to understand. As an increasing component of the urban housing stock, condominiums have the potential to influence housing affordability, fill a gap in supply to address a specific segment of unmet housing needs, and reduce |
| Keywords: | condominiums; Homeownership; Housing Affordability |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_102&r=ure |
| By: | Min-Sung Kim; Jinseok Kim; Boram Lee |
| Abstract: | Sharing economy has been growing and playing a significant role in the real world. For instance, guesthouses allow people to share their home and provide unique experiences to some travelers. However, it generates unexpected impacts on the neighborhoods.- residents as well as local shops in these cities are at risk of being forced out as property prices and rents rise due to the uncontrollable flow of tourists. This paper examines the impacts of tourism gentrification (touristification) on housing market, using a case study in Seoul. The result shows that guesthouses, including Airbnb, bring tourists, changes types of retails in the neighborhood, increases property values, and eventually kicks out residents. It has changed the land use, ultimately led displacement of local stores to new retail stores and franchises in the community. Analysis of stakeholders indicates that both residents and mom and pop shops are gentrified by new cafes and restaurants for tourists, but then these new stores also become gentrified and turn into franchise in the end. Moreover, it is found that as the real estate bubble bursts, the guesthouse is considered as profitable and the return on investment in guesthouse is higher than that of apartments and officetel in Seoul. The in-depth interviews with residents also reveal that it accelerates the relocation cycle of tenants due to the capital into the real estate market. This change of real estate investment trend demonstrates the importance of consumption-oriented activities in residential space and suggests the role of government and policy recommendations to ease rising rent in tourist areas. |
| Keywords: | Guesthouse; Housing Market; Sharing Economy; Touristification |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_87&r=ure |
| By: | Matthew Ridley; Camille Terrier |
| Abstract: | The fiscal and educational consequences of charter expansion for non-charter students are central issues in the debate over charter schools. Do charter schools drain resources and high-achieving peers from non-charter schools? This paper answers these questions using an empirical strategy that exploits a 2011 reform that lifted caps on charter schools for underperforming districts in Massachusetts. We use complementary synthetic control instrumental variables (IV-SC) and differences-in-differences instrumental variables (IV-DiD) estimators. The results suggest greater charter attendance increases per-pupil expenditures in traditional public schools and induces them to shift expenditure from support services to instruction and salaries. At the same time, charter expansion has a small positive effect on non-charter students’ achievement. |
| JEL: | C36 H23 H75 I21 I22 I28 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25070&r=ure |
| By: | Kathleen Kürschner; Michael Kvasnicka |
| Abstract: | This paper studies the impact at county level of the mass arrival of refugees in 2015 on residential housing rents in Germany. Using unique and novel data for 2014 and 2015 on end of year (EoY) county-level refugee populations and their type of accommodation as well as on monthly individual offers of flats for rent from Germany’s leading online property broker, we find strong evidence for a negative effect of refugee immigration on rental prices for residential housing in Germany. An increase in the county-level EoY refugee share by one percentage point is associated with a lower average rental price of 0.57% in the period October to December 2015, and a lower average rental price of 0.97% in January to March 2016. Additional evidence suggests that this negative price effect may have been facilitated by increases in the share of refugees in decentralized accommodation. IV regressions that exploit for identification variation in intra-state distances between counties that house refugee reception centers and surrounding counties produce even stronger negative price effects. Our finding of a negative price effect is at odds with the majority of studies which have investigated the consequences of immigration for local property markets at the county or city level. These diverging results may reflect differences in natives’ perceptions of potential adverse externalities associated with refugee migration, differences of seemingly sufficient magnitude to successfully counteract and outweigh any positive demand-side driven stimulus of immigration for higher rental prices. |
| Keywords: | Germany; refugees; Rents |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_156&r=ure |
| By: | Richard H. Rijnks (Univesity of Groningen); Stephen Sheppard (Williams College) |
| Abstract: | A difficulty in identifying the contribution of structure and neighborhood attributes to the market value of residential property is the lack of data on subjective characteristics of the neighborhood (friendliness of neighbors, proximity to friends and acquaintances) or difficult-to-observe subjective attributes of the structure itself (such as "curb appeal" or the presence of unpleasant odors). Concern may also arise from the understanding that the observed market price of most residential property is the result of a process of bargaining. A buyer who is optimistic by nature may assume that the quality of the neighborhood will be wonderful, or that the unusual odor will eventually go away, and therefore be willing to bid a higher price for the structure than a prospective buyer who is more nervous about all the ways that a house purchase can generate disappointment. Estimates of the value of structure or neighborhood attributes may tell us as much about the emotional affect of the buyer as they do about the actual costs or benefits of the attributes (or of cleaning or mitigating them). These observations suggest that incorporating data on the levels of subjective well being (SWB) and emotional affect of the buyers might be usefully applied to improve hedonic analysis of housing markets. The goal of this paper is to undertake such analysis and to explore the potential for improved analysis of the value of residential property. We make use of unique data collected as part of a multi-year analysis of health outcomes, matched with data on market transactions of residential property in three provinces of the Netherlands. We employ the spatial model developed by Kelejian and Prucha (2010) which allows us to incorporate a spatial error specification, as well explicitly control for possible endogeneity between the measure of SWB and the transaction price. By examining aggregate measures of SWB at different spatial scales, we obtain insights into whether these measurements are capturing subjective characteristics of the community, the neighborhood or the structure and the buyer who negotiateover the eventual price. |
| Keywords: | Housing markets, hedonic models, subjective well-being |
| JEL: | R31 I31 R32 R21 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:wil:wileco:2018-05&r=ure |
| By: | Stephan Heblich; Stephen J. Redding; Daniel M. Sturm |
| Abstract: | Modern metropolitan areas involve large concentrations of economic activity and the transport of millions of people each day between their residence and workplace. We use the revolution in transport technology from the invention of steam railways, newly-constructed spatially-disaggregated data for London from 1801-1921, and a quantitative urban model to provide evidence on the role of these commuting flows in supporting such concentrations of economic activity. Steam railways dramatically reduced travel times and permitted the first large-scale separation of workplace and residence. We show that our model is able to account for the observed changes in the organization of economic activity, both qualitatively and quantitatively. In counterfactuals, we find that removing the entire railway network reduces the population and the value of land and buildings in Greater London by 20 percent or more, and brings down commuting into the City of London from more than 370,000 to less than 60,000 workers. |
| JEL: | O18 R12 R40 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25047&r=ure |
| By: | Kerem Yavuz Arslani; Christopher Hannum; Wendy Usrey; Laurie Dufloth |
| Abstract: | This project will build a theoretical model of real estate brokerage using assumptions based upon findings from the extensive brokerage literature. In this model differentiation in services and quality between brokerage firms combined with differentiation in preferences between sellers lead to measurable ranges of operation for brokerage firms. These ranges overlap, leading to the competitive nature of the industry. This theoretical model can be simulated in order to predict when ranges will grow or shrink and when competition within them will increase or decrease.Using MLS data for Northern Colorado we will measure the range of operation in ArcGIS for each brokerage firm and each agent in the sample by using actual geocoded data for listings and transactions. These ranges of operation will be used to calculate a market share of listings or transactions for the agent or brokerage firm within their own range of operation. For example, while a county might have 1200 listings a certain brokerage firm within that county may compete only within a smaller area of that county in which there are 120 listings. If the brokerage firm has 40 total listings our methodology would give them a market share of 33% within their operating range rather than 3% within the county.Using panel data techniques we will test whether higher values for our market concentration measure are correlated with higher or lower sales prices. We will examine whether market shares and the size of operating ranges for individual agents and brokerage firms vary predictably with local market conditions. These tests will help to determine what value better measures of brokerage firm market share and market concentration will have to policy makers and real estate practitioners, potentially in identifying desirable locations for new entrants and in predicting future trends. |
| Keywords: | Brokerage; Competition; Housing Markets |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_164&r=ure |
| By: | Manuel Adelino; Antoinette Schoar; Felipe Severino |
| Abstract: | This paper analyzes the importance of household perceptions of house price risk in explaining homeownership choice. While a majority of US households (71%) believes that housing is a “safe” investment, renters are much more likely to perceive housing as risky. Risk perceptions vary across demographic groups, but significant differences persist after controlling for observables, such as income, savings, or location. Current housing decisions and future intentions to buy versus rent are strongly correlated with perceptions of house price risk. Households’ exposure to housing risk due to financial constraints, expected mobility or labor income risk affect the decision to buy versus rent but do not mitigate the impact of risk perceptions on housing choices. Finally, we show that all households update their beliefs about the riskiness of housing in response to past (local) house price changes, but renters are much slower to update than owners. Since renters’ decisions to buy are especially sensitive to their perception of house price risk, it might explain their delayed entry into home ownership during a house price run-up and even prolong the housing cycle. |
| JEL: | G01 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25090&r=ure |
| By: | Sabal Sharma; David Levinson (TransportLab, School of Civil Engineering, University of Sydney) |
| Abstract: | The study relates the association between travel time to the lower secondary and secondary public schools of Nepal and the dropout grade before leaving secondary school using an ordered logit model. It is shown that as the travel time to the school increases, students are more likely to dropout from the school system in earlier grades. The results from this study will be useful to policymakers, especially from developing countries, as it places transport in the context of education. |
| Keywords: | Education, Transport, Nepal, Dropout, Travel Behaviour |
| JEL: | R40 O18 O20 R20 I24 I25 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:nex:wpaper:nepal&r=ure |
| By: | Miroslav Gabrovski (University of Hawaii at Maona); Victor Ortego-Marti (University of California, Riverside) |
| Abstract: | This paper develops a model of the housing market with search and credit frictions. The interaction between the two frictions gives rise to a novel channel through which the financial sector affects prices and liquidity in the housing market. Furthermore, an interesting feature of the model is that both frictions combined lead to multiple equilibria. A numerical exercise suggests that credit shocks have a relatively larger impact on mortgage debt and liquidity than on prices. |
| Keywords: | Housing market, Credit Frictions, Search and Matching, Multiple Equilibria, Mortgages |
| JEL: | E2 E32 R21 R31 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:201811&r=ure |
| By: | Börjesson, Maria (CTS - Centre for Transport Studies Stockholm (KTH and VTI)); Eliasson, Jonas (Stockholm City Transport Administration); Rubensson, Isak (KTH and Stockholm Public Transport Agency) |
| Abstract: | We analyse the distribution of transit subsidies across population groups in Stockholm. We develop a novel methodology that takes into account that the subsidy per passenger varies across transit links, since production costs and load factors vary. With this, we calculate the subsidy per trip in the transit network and analyse the distribution of subsidies across population groups. The average subsidy rate in Stockholm is 44%, but the variation across trips turns out to be large: while 34% of the trips are not subsidized at all but generates a profit, 16% of the trips have a subsidy rate higher than 2/3. We calculate the concentration index to explore the distribution of subsidies across income groups. The average subsidy per person is similar for all income groups, except for the top income quintile. This holds not only for the current flat-fare system, but also for distance-based fares and fares with a constant subsidy rate. Transit subsidies is hence not effective as a redistribution policy in Stockholm. The largest systematic variation we find is across residential areas: the average subsidy per person is five times higher in the peripheral areas of the region compared to the regional core, and the subsidy per trip is ten times higher. |
| Keywords: | Public Transport; Subsidies; Equity; Progressive; Distribution effect; Concentration index |
| JEL: | R12 R41 R42 |
| Date: | 2018–10–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2018_017&r=ure |
| By: | Emmanuel Kofi Gavu |
| Abstract: | Purpose – Determinants of Residential Rental Values (RRVs) are analysed differently by researchers. Correctly identifying variables that are significantly relevant in Ghana’s rental market has not been realised because of data paucity and asymmetries. The purpose of this research is to identify key market variables that can be utilized in modelling Ghana’s residential rental submarket based on stakeholder perceptions of rental value determinants.Methodology – We analyse 38 different RRV determinants based on literature review in 3 broad groupings; structural, locational and neighbourhood characteristics. Experts and stakeholders rank these explanatory variables that determine RRVs based their knowledge of Accra’s residential rental market. Their responses are interpreted using the Relative Importance Index (RII).Findings – Respondents agree that electricity connection, piped water connection, type of house, property condition and number of bedrooms ranked among the top 5 determinants of RRVs. Not all rental properties have basic services, which are critical in rental value determination. Moreover, storeroom availability, near recreational facilities, near place of worship, quality of landscaping and number of storeys ranked among the bottom 5 variables. This could be because these variables may be seen in the local context as luxuries. Principal implications – The findings provides rental market stakeholders (especially researchers and valuers) useful insights to dynamics in housing market modelling. Originality – This research is the first attempt to comprehensively develop RRV determinants based on the perceptions of market stakeholders in Ghana. This will serve as a guide in understanding rental market dynamics in a developing country context. |
| Keywords: | Ghana; Modelling; Rental submarket; Rental value; Stakeholder perceptions |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_334&r=ure |
| By: | Raffaella Santolini (Dipartimento di Scienze Economiche e Sociali - UNIVPM) |
| Abstract: | Little attention has been paid to the spatial pattern in local governments' efficiency. This paper intends to fill this gap by conducting an empirical analysis on a sample of 246 Italian municipalities over the decade 1998-2008. The efficiency of the municipal government is measured in terms of the speed of payments for different categories of public spending. Estimation results reveal the presence of spatial interdependence in the speed of payments among the geographically close municipalities, with a greater magnitude for the speed of current outlays. Thus, municipalities mimic the speed with which public spending is carried out by their neighbors. |
| Keywords: | the speed of payments, neighborhood effects, spatial econometrics, Italian municipalities |
| JEL: | C23 H72 H73 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wpaper:432&r=ure |
| By: | Matthew P. Steinberg; Johanna Lacoe |
| Abstract: | States and districts are revising discipline policies to reduce out-of-school suspensions (OSSs), but the consequences of these reforms are largely unknown. |
| Keywords: | school suspensions, reforming school discipline, education |
| JEL: | I |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:2c47f6b694dd4d48b2292962f279eda2&r=ure |
| By: | Stephen Calabrese; Dennis Epple; Richard Romano |
| Abstract: | We provide a model with a federal government and multiple local governments, the former with power to levy an income tax for redistribution, and the latter choosing a local income tax, property tax, lump-sum tax or subsidy, and a local public good. Policy is set by majority choice at each tier of government by households that differ by income and ability to move across communities. We provide sufficient conditions for existence of equilibrium and examine its properties. Central findings are federal income distribution, little local redistribution, and local preference for property taxation over income taxation to fund local public goods. |
| JEL: | H2 H7 H71 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25099&r=ure |
| By: | Mohey-ud-din, Ghulam |
| Abstract: | This study examines the disparities in wealth inequality across districts in Punjab, Pakistan. The paper documents Gini coefficients of wealth inequality using disaggregate household data to assess disparities at the district level as well as disaggregated by urban and rural areas for each district. Furthermore, the paper deploys spatial statistical tools to explore the spatial disparities in wealth inequality in Punjab. This study finds the existence of spatial clustering in wealth inequality in districts at aggregate, urban, and rural area levels. The study emphasizes the need to allocate resources for eradication of disparities among regions and districts. Furthermore, policies and decision-making aimed at reducing regional disparities and in enhancing equity are needed. Given the spatial clustering in economic depravity, the remedial policies must be spatially aware and sensitive to spatial interdependencies discovered in this paper |
| Keywords: | Wealth Disparity, Wealth Inequality, Spatial Patterns, Spatial Clustering, Spatial Auto-Correlation, LISA, Moran’s I, MICS, Punjab, Pakistan |
| JEL: | O18 R20 R58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89095&r=ure |
| By: | Deborah Levy; Raewyn Hills; Harvey Perkins; Mike Mackay; Malcolm Campbell |
| Abstract: | This paper reports part of a study funded by New Zealand’s National Science Challenge 11: Building Better Homes, Towns and Cities. Unlike the UK and other European settings, in New Zealand there has been very little policy emphasis placed on the development of peripheral regions. Uneven economic development has been a fact of life with very significant growth in Auckland, the country’s largest city, and far less growth in other localities. In the face of this, public, private and third-sector agencies in regional settlements have initiated a range of urban regeneration activities. Our study, focusing on three South Island settlements, Oamaru – Timaru – Ashburton (with a population range of 14,000 to 29,000), has attempted to understand the situation they face and the nature of the initiatives they are pursuing. One set of these initiatives is very much property-related with local government and the private sector both engaging. These include retail facilities, business parks, heritage precincts and service facilities such as hospitality, recreation and accommodation for locals and tourists. At times local government and private sector developers work in harmony, but in others there are elements of antagonism and frustration evident. We use our understanding gained from interviews with local government, property professionals and the development sector to outline to identify a number of cases studies. Each of these emphasising the important roles played by locally based developers in regional settlements and the need to find ways of harnessing their energy and commitment more effectively. |
| Keywords: | case studies; Developers; regional policy; regional settlements; Urban Regeneration |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_316&r=ure |
| By: | Börjesson, Maria (CTS - Centre for Transport Studies Stockholm (KTH and VTI)); Isacsson, Gunnar (Swedish Transport Administraton); Andersson, Matts (WSP); Anderstig, Christer (WSP) |
| Abstract: | We explore how the transport improvements impact agglomeration and thereby productivity in mid-Sweden including Stockholm 1995-2006. We measure agglomeration, and changes in agglomeration in response to transport improvements, based on travel times. This is a more accurate measure of agglomeration than previously used and also necessary for understanding how governments can impact agglomeration, and thereby productivity, by transport investments. We regress temporal changes in wages on temporal changes in agglomeration applying a FE estimator. We deal with the potential endogeneity using a novel instrument variable. Our best estimates of the agglomeration elasticity on productivity lie within the interval 0.028-0.035. |
| Keywords: | Agglomeration; wage; productivity; Transport investments; Wider Economic Impacts; Appraisal |
| JEL: | R12 R41 R42 |
| Date: | 2018–10–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2018_016&r=ure |
| By: | Hannah Hall; Eric Nielsen; Kamila Sommer |
| Abstract: | This note introduces a new method for measuring the aggregate value of own-use residential real estate in the United States from 2001 to present. |
| Date: | 2018–09–28 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfn:2018-09-28-2&r=ure |
| By: | Rafal Wolski |
| Abstract: | The beta coefficient is widely used in company valuation. According to the assumptions of the CAPM, thanks to the beta, you can set the cost of equity and thus the discount rate in income valuation models. Similarly, in the real estate market, if you want to valuate the property by income method, a discount rate should be known. This rate can be estimated by knowing the beta coefficient for property market. Unfortunately, the estimation of this coefficient is difficult, since there is no known index of such a broad market that would contain both industrial investments and all others, such as real estate investment. Therefore, the author decided to develop a method for calculating the beta in the housing market. This is the first step towards the development of the beta calculation methodology in the commercial real estate market.The aim the article is to estimate the beta coefficient for the residential property market in Poland. The author has set the hypothesis that the mean values of the beta coefficients calculated on the hedonic index on the secondary housing market are statistically significant equal to the average values of the beta coefficient for the WIG index, the broad Stock market Index on the Polish stock market. To verify the hypothesis and consequently achieve the goal of the work, the author used the data analysis followed by the use of one-way ANOVA.The development of a beta counting methodology is the original contributor's contribution to science. In the Polish market there is no adequate method and asset appraisers apply the beta directly taken from the stock market. In addition, this work is the first phase of research that will lead to the development of a methodology to calculate the beta coefficient in the commercial real estate market. |
| Keywords: | Beta Coefficient; Discount Rate; Valuation |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_16&r=ure |
| By: | Thomas Dee; Mark Murphy |
| Abstract: | Immigration and Customs Enforcement (ICE) is the federal law-enforcement agency with primary responsibility for enforcing immigration laws within the U.S. However, for over a decade, ICE has formed partnerships that also allow local police to enforce immigration law (i.e., identifying and arresting undocumented residents). Prior studies, using survey data with self-reported immigrant and citizenship status, provide mixed evidence on the demographic impact of these controversial partnerships. This study presents new evidence based on the public-school enrollment of Hispanic students. We find that local ICE partnerships reduce the number of Hispanic students by nearly 10 percent within 2 years. We estimate that the local ICE partnerships enacted before 2012 displaced over 300,000 Hispanic students. These effects appear to be concentrated among elementary-school students. We find no corresponding effects on the enrollment of non-Hispanic students. We also find no evidence that ICE partnerships reduced pupil-teacher ratios or the percent of students eligible for the National School Lunch Program (NSLP). |
| JEL: | I2 J15 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25080&r=ure |
| By: | PROSKUROVSKA Anetta; DÖRRY Sabine |
| Abstract: | This paper investigates the social and economic mechanisms of a blockchain technology in the area of land administration. In particular, it focuses, first, on an emerging blockchain-based solution in Sweden to change and improve its land administration system (LAS), and, second, on the 'upgraded' LAS' potential impacts to create more complex financial derivatives based on land and the built environment. We investigate how these changes influence housing markets at the interface with financial markets and how these changes impact on the economic organisation of the different stakeholders involved in these processes. The argument is developed using the case of Sweden, where Lantmäteriet, a government agency, is pioneering the use of blockchain technology for real-estate conveyance. |
| Keywords: | Blockchain; land administration systems; conveyance workflow; housing; financialisation |
| JEL: | G28 I30 K11 L14 O43 O52 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2018-17&r=ure |
| By: | Luca Verginer (IMT School for advanced studies); Massimo Riccaboni (IMT School for advanced studies) |
| Abstract: | Global mobility and migration of scientists is an important modern phenomenon with economic and political implications. As scientists become ever more footloose it is important to identify general patterns and regularities at a global scale. At the same time cities, and especially global cities, have become impor- tant loci of economic and scientific activity. Limiting research to international migration, would disregard the importance of local innovation systems. The analysis of the mobility and brain circulation patterns at global scale remains challenging, due to difficulties in obtaining individual level mobility data. In this work we propose a methodology to trace intercity and international mobility through bibliographic records. We reconstruct the intercity and international mobility network of 3.7 Million Life Scientists moving between 9,745 cities. We present several features of the extracted network, offer evidence that the international innovation system is marked by national borders and linguistic similarity and show that international mo- bility largely contributes to the scientific output of national research systems. Moreover we find evidence to suggest that global cities attract highly productive scientist early in their careers. |
| Keywords: | Network Analysis; Scientist Mobility; Brain Circulation; Global Cities; National Innovation Systems |
| JEL: | F22 J61 L65 O18 O15 O30 R12 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:ial:wpaper:4/2018&r=ure |
| By: | Bismark Aha; David.M Higgins; Timothy Lee |
| Abstract: | Over the last two decades, many developed countries have experienced notable changes in house prices. This exploratory study considers if house price movements in the UK can be linked to the political cycle as governments realise homeowners represent a large portion of the voter base and their voting decisions could be influenced by the magnitude and direction of house price changes. Specifically, the study investigates whether house prices behave differently before and after elections and under different political regimes. To examine this relationship, the study analyzed quarterly UK national house price data since 1960, along with data on the results of UK parliamentary elections during the same period. Over this period, real UK house prices increased by an average of 2.83% per annum. While there is no evidence that house prices in the UK behave significantly differently under different political parties, it is evident that house prices perform much better in the last year before an election, compared to the first year after an election. House prices increased by 5.2% per annum, on the average, in the last year before an election compared to 1.0% per annum in the first year following an election. As this research clearly identifies major variations in house price performance around election times, residential property investment decisions should take into consideration the political cycle. |
| Keywords: | Housing Market; Political Studies; Property Cycles; Residential house prices; United Kingdom |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_60&r=ure |
| By: | Theresa Kotulla |
| Abstract: | The United Nations define in ‘Human Rights. The Right to Adequate Housing (Fact Sheet No. 21)’ an adequate housing standards as a fundamental human right. Although this doesn’t mean governments are forced to provide their residents with accommodations, nations have a certain responsibility in terms of providing affordable housing. In Europe, the requirement of residential construction increased in recent years. In almost every European country the demand exceeds the supply of subsidized residential properties. Especially, in agglomeration areas it is becoming difficult to provide affordable housing to households with low incomes. Although there is a high demand for housing with rent control, this housing stock has declined in recent years.All over Europe, a variety exist in the political systems concerning housing provision. Each system has to be regarded in the context of the respective country and region. Within this investigation, the social housing systems of Germany and Switzerland are analyzed and compared. The paper is designed as a binational comparative study. The aim is to examine the relationship between the regional conditions and the political aims and offers. Thus, political objectives, strengths, weaknesses and potentials of the specific systems of the countries are emphasized. The investigation is dedicated to the political instruments and their respective impact in Germany and in Switzerland. The main focus of this investigation is on the alignment and the realization of the German and Swiss social housing system.First, the specific laws, conditions and offers in each country are analyzed. Subsequently, these results are compared and relevant, efficient components are identified. This examination is supplemented by interviews with actors of the regional housing market as well as by case studies. |
| Keywords: | Affordable Housing; Housing Policy; housing shortage; Housing Supply; social rental housing |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_35&r=ure |
| By: | David Albouy; Peter Christensen; Ignacio Sarmiento-Barbieri |
| Abstract: | Our results indicate that improving safety near parks can turn them from public bads to goods. Ignoring complementarities may lead to i) undervaluing the potential value of public goods; ii) overestimating heterogeneity in preferences; and iii) understating the value of public goods to low income households. Recent reductions in crime have “unlocked” $3 billion in property value in these three cities. Still over half of the potential value of park proximity (approximately $9 billion) remains locked in. |
| JEL: | H41 Q51 Q56 R23 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25107&r=ure |
| By: | Tho V. Le; Junyi Zhang; Makoto Chikaraishi; Akimasa Fujiwara |
| Abstract: | It is one of hottest topics in Vietnam whether to construct a High Speed Rail (HSR) system or not in near future. To analyze the impacts of introducing the HSR on the intercity travel behavior, this research develops an integrated intercity demand forecasting model to represent trip generation and frequency, destination choice and travel mode choice behavior. For this purpose, a comprehensive questionnaire survey with both Revealed Preference (RP) information (an inter-city trip diary) and Stated Preference (SP) information was conducted in Hanoi in 2011. In the SP part, not only HSR, but also Low Cost Carrier is included in the choice set, together with other existing inter-city travel modes. To make full use of the advantages of each type of data and to overcome their disadvantages, RP and SP data are combined to describe the destination choice and mode choice behavior, while trip generation and frequency are represented by using the RP data. The model estimation results show the inter-relationship between trip generation and frequency, destination choice and travel mode choice, and confirm that those components should not dealt with separately. |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1810.00155&r=ure |
| By: | Josep Lluís Raymond (Departament d'Economia i d'Història Econòmica, Universitat Autònoma de Barcelona); Dolors Cotrina (Departament d’Anàlisi - Gabinet Tècnic de Programació Oficina Municipal de Dades, Ajuntament de Barcelona); Àlex Costa (Departament d’Anàlisi - Gabinet Tècnic de Programació Oficina Municipal de Dades, Ajuntament de Barcelona); Enric Puig (Departament d’Anàlisi - Gabinet Tècnic de Programació Oficina Municipal de Dades, Ajuntament de Barcelona); Vittorio Galletto (Institut d'Estudis Regionals i Metropolitans de Barcelona); Sandra Aguilera (Institut d'Estudis Regionals i Metropolitans de Barcelona); Marc Fíguls (Institut d'Estudis Regionals i Metropolitans de Barcelona) |
| Abstract: | The Gross Domestic Product (GDP) is the most important macroeconomic magnitude of the economic accounting of a territory. In spite of its known limitations, it is a basic magnitude in knowing the sectoral structure of an economy; furthermore, its evolution is the indicator that best measures economic dynamics. The relevance of GDP is not limited to the knowledge of country or regional economies, but it is also key to the knowledge of local and metropolitan economies. In the case of Barcelona, the estimates made by the Technical Planning Office (GTP) of the Barcelona City Council available up to now start from the calculation for the base year 2011, calculating the values of the following years assuming that the effect of the agglomeration economies (characteristics of urban areas) does not vary from year to year. The availability of wages data from Barcelona, the Barcelona Metropolitan Area (AMB) and Catalonia from the Continuous Sample of Labour Lives (MCVL) allows us to relax this assumption, opening up the possibility of a methodological improvement in which the effect of agglomeration is picked up by the wage differentials between sectors and territorial areas registered every year. The aim of this paper is, therefore, to methodologically improve the calculation of the GDP of Barcelona and the AMB with the introduction of information on wage levels as indicators of productivity. The results achieved with this methodological improvement show a high correlation with the data so far prepared by the GTP, both for Barcelona and for the AMB, so that the methodology used here is validated. The implication of these results is quite significant: the wage differentials between territorial areas would be reflecting differences in the levels of productivity. To our understanding, these are very relevant results that may be of considerable interest for urban economic statistics, as they allow a more up-to-date estimate of municipal GDP (with an annual frequency) and with a significant degree of reliability. |
| Keywords: | Metropolitan GDP, Wages and productivity, Regional economic accounts |
| JEL: | R11 R12 C53 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:esg:wpierm:1801&r=ure |
| By: | Kounetas, Kostas; Napolitano, Oreste; Stavropoulos, Spyridon; Burger, Martijn |
| Abstract: | Assessing regional convergence is an important issue both at the national and at the supranational level, such as the level of European regions. Regional convergence and productivity growth are also principles of the European regional policy. This paper studies regional productivity convergence among 232 NUTS-2 European regions for the period 2003-2011. Despite the European regional policies implemented in the last two decades, the technology gap between European regions has only increased. The objective of this paper is to provide new evidence on production efficiency and the technology gap in European regions. We present a two-stage model of regional productive performance using a meta-frontier framework and a PVAR analysis. The main conclusion is that there exist significant differences in productive performance that confirm the North-South division in Europe. Finally, the results from the PVAR model provide robust evidence for the role played by human capital and innovation activity through patent realization in the technology gaps at the regional level in Europe. |
| Keywords: | Metafrontier, DEA bootstrap, PVAR, Spillovers, European Regions. |
| JEL: | C15 D24 O47 R11 |
| Date: | 2018–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:88957&r=ure |
| By: | Hammarstedt, Mats (Linnaeus University Centre for Discrimination and Integration Studies); Miao, Chizheng (Linnaeus University Centre for Discrimination and Integration Studies) |
| Abstract: | We present a study of immigrant self-employment in Sweden using the recent matched employer-employee data from 2014. We find large variations in self-employment rates among immigrant groups as well as between immigrants with different points for their time immigration to Sweden. High self-employment rates are found for male immigrants from the Middle East. Immigrants are less likely than natives to have employees in their firms but after controlling for firm characteristics we find that self-employed immigrants are more likely than self-employed natives to have employees. Especially non-European immigrants are more likely than natives to employ other immigrants, and even non-European and recently arrived immigrants, in their firms. Immigrants are more likely than natives to hire their spouses as employees. We conclude that self-employed immigrants play a role in the labour market integration of other immigrants. We also conclude that the family plays a central role for self-employment activities among immigrants and that more knowledge regarding the explanations behind the results is needed. |
| Keywords: | Self-employment; Immigrants; Employment; Employees; Sweden |
| JEL: | F22 J21 J61 L26 |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1235&r=ure |
| By: | Tomoya Mori; Jens Wrona |
| Abstract: | We propose and apply a new theory-consistent algorithm, which uses disaggregated inter-city trade data to identify a pyramidic city system with central places and associated hinterlands. Because central places possess more industries than the cities in their hinterlands, and because industries, which are exclusive to central places, are more likely to export to the small, peripheral cities in the central place’s hinterland, we find that aggregate exports from central places to their hinterlands are two to five times larger than predicted by gravity forces. Using a simple decomposition approach, we show that this upward bias results from aggregation along the extensive industry margin, which is why the bias is much smaller and only marginally significant if estimation is conducted in a theory-consistent way at the disaggregated industry level. |
| Keywords: | Inter-city trade, central place theory, gravity equation, aggregation bias |
| JEL: | F14 F12 R12 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7233&r=ure |
| By: | Gouranga Gopal Das; Sugata Marjit |
| Abstract: | With the ensuing immigration reform in the US, the paper shows that targeted skilled immigration into the R&D sector that helps low-skilled labor is conducive for controlling inequality and raising wage. Skilled talent-led innovation could have spillover benefits for the unskilled sector while immigration into the production sector will always reduce wage, aggravating wage inequality. In essence, we infer: (i) if R&D inputs contributes only to skilled sector, wage inequality increases in general; (ii) for wage gap to decrease, R&D sector must produce inputs that goes into unskilled manufacturing sector; (iii) even with two types of specific R&D inputs entering into the skilled and unskilled sectors separately, unskilled labor is not always benefited by high skilled migrants into R&D-sector. Rather, it depends on the importance of migrants’ skill in R&D activities and intensity of inputs. Inclusive immigration policy requires inter-sectoral diffusion of ideas embedded in talented immigrants targeted for innovation. |
| Keywords: | H1B, Immigration, Innovation, Wage gap, Skill, R&D, Policy, RAISE Act. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:not:notgep:18/09&r=ure |
| By: | Tim Dixon; Martin Sexton; Jorn Van De Wetering |
| Abstract: | We live in an increasingly urbanised world. Currently more than 50 per cent of the world’s population lives in cities, and this is set to grow to 70% by 2050. Recently we have seen an increasing focus on information and communications technology (ICT) to argue the case for ‘smart cities’. This places a strong emphasis on an ICT-led and a ‘data-driven’ future, which also positions the development of new products, processes, organisational methods and markets at the heart of the continued ambition for urban economic growth. The interconnected agendas of smart cities and big data and open data, on the face of it, provide bold and exciting opportunities for the built environment professions. But, what in reality will those opportunities be, and what are the challenges? This research, conducted from 2015-2016, seeks to address those questions and focuses on the city level.The research focuses on a technocratic approach to use of data in smart cities, and how we can make this accessible to built environment stakeholders. We explore the extent to which the built environment sector is engaging with the smart city at ‘programme’ scale (i.e. city-wide) and ‘project’ scale (i.e. urban data platform and other applications). To do this we compare four smart city programmes to pose three primary research questions:How have smart city programmes and projects evolved in these cities? What has shaped this evolution? What is the nature and extent of the built environment sector’s role in such programmes and projects?The research consisted of interviews in four case studies in Bristol, Milton Keynes, Amsterdam and Taipei and a UK expert workshop." |
| Keywords: | Big data; New Technology; Open Data; Smart City; Urban Studies |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_332&r=ure |
| By: | So Jung Hwang (Department of Economics, Inha University); Hyunduk Suh (Department of Economics, Inha University) |
| Abstract: | Connectedness in housing markets can bea source of macro-financial systemicrisk. This study investigates regional housing market connectedness among 16 first-tier administrative divisionsin Koreaand 25 districtsin Seoul, the capital city. Connectedness is defined as in Diebold and Yilmaz (2014) and the time-varying parameter vector autoregressive model is used to capture its time-varying nature. The estimation results show that rapid increases in connectedness during the sample period are mostly associated with housing booms rather than downturns. Moreover, connectedness cycles for the whole country and for Seoul seem to diverge after the global financial crisis, just as their housing price cycles do. Cross-sectionally, as expected, Seoul and the surrounding Gyeonggi province have a strong influence on the connectedness network, especially during the 2006 connectedness surge episode. The influence of Gangnam-3 districts is not significantly high in either the 2006 or the 2017 connectedness surge episodes, but tends to lead the total connectedness index by a few months. |
| Keywords: | Korean housing market, Diebold-Yilmaz connectedness index, time-varying parameter vector autoregression |
| JEL: | E44 E58 R31 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:inh:wpaper:2018-4&r=ure |
| By: | Raj Chetty; John N. Friedman; Nathaniel Hendren; Maggie R. Jones; Sonya R. Porter |
| Abstract: | We construct a publicly available atlas of children's outcomes in adulthood by Census tract using anonymized longitudinal data covering nearly the entire U.S. population. For each tract, we estimate children's earnings distributions, incarceration rates, and other outcomes in adulthood by parental income, race, and gender. These estimates allow us to trace the roots of outcomes such as poverty and incarceration back to the neighborhoods in which children grew up. We find that children's outcomes vary sharply across nearby tracts: for children of parents at the 25th percentile of the income distribution, the standard deviation of mean household income at age 35 is $4,200 across tracts within counties. We illustrate how these tract-level data can provide insight into how neighborhoods shape the development of human capital and support local economic policy using two applications. First, we show that the estimates permit precise targeting of policies to improve economic opportunity by uncovering specific neighborhoods where certain subgroups of children grow up to have poor outcomes. Neighborhoods matter at a very granular level: conditional on characteristics such as poverty rates in a child's own Census tract, characteristics of tracts that are one mile away have little predictive power for a child's outcomes. Our historical estimates are informative predictors of outcomes even for children growing up today because neighborhood conditions are relatively stable over time. Second, we show that the observational estimates are highly predictive of neighborhoods' causal effects, based on a comparison to data from the Moving to Opportunity experiment and a quasi-experimental research design analyzing movers' outcomes. We then identify high-opportunity neighborhoods that are affordable to low-income families, providing an input into the design of affordable housing policies. Our measures of children's long-term outcomes are only weakly correlated with traditional proxies for local economic success such as rates of job growth, showing that the conditions that create greater upward mobility are not necessarily the same as those that lead to productive labor markets. |
| Keywords: | intergenerational social mobility, data tool |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:18-42&r=ure |
| By: | Link, Albert (University of North Carolina at Greensboro, Department of Economics); Hobbs, Kelsi (University of North Carolina at Greensboro, Department of Economics); Shelton, Terri (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | This paper focuses on the regional economic impacts of U.S. university research and science parks. Motivating this focus is the fact that the landscape for private-sector research is changing, and future research might well emphasize America’s “new geography of innovation.” Thus, university research and science parks might face, if they are not already doing so, pressure to retain current tenants and competition for future tenants. We find that only 11 of 146 research and science parks in the United States have, in the spirit of public accountability, conducted an economic impact study. One reason for the paucity of such studies is that universities are unfamiliar about how to conduct as well as how to interpret the findings from such a study. We offer an economic impact method for park administrators to follow if they proceed to document the regional economic impact of their park. |
| Keywords: | University research and science park; Public accountability; Economic impact |
| JEL: | H43 H54 O32 |
| Date: | 2018–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2018_007&r=ure |
| By: | Banerjee, Ryan N. (Bank for International Settlements); Blickle, Kristian S. (Federal Reserve Bank of New York) |
| Abstract: | We observe significant heterogeneity in the correlation between changes in house prices and the growth of small firms across certain countries in Europe. We find that, overall, the correlation is far greater in Southern Europe than in Northern Europe. Using a simple model, we show that this heterogeneity may relate to financial frictions in a country. We confirm the model’s propositions in a number of empirical analyses for the following countries in Northern and Southern Europe: the United Kingdom, Norway, France, Italy, Spain, and Portugal. Small firms in countries with higher financial frictions (for example, places where bankruptcy resolution is more difficult and/or takes longer) see a greater dependence on “stable” real estate collateral. This is most pronounced for opaque (for example, very young) firms. Through an extension to our model and our choice of specification, we show that our findings are most consistent with a collateral-value-based credit supply channel and rule out a consumer-driven demand effect. |
| Keywords: | firm financing; real estate collateral; credit supply; bankruptcy laws; financial frictions |
| JEL: | G30 G33 K11 O47 R30 |
| Date: | 2018–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsr:868&r=ure |
| By: | Batista, Catia (Universidade Nova de Lisboa); Seither, Julia (Universidade Nova de Lisboa); Vicente, Pedro C. (Universidade Nova de Lisboa) |
| Abstract: | What is the role of international migrants and, specifically, migrant networks in shaping political attitudes and behavior in migrant sending countries? Our theoretical framework proposes that migration might change individual social identities and thus stimulate intrinsic motivation for political participation, while it may also improve knowledge about better quality political institutions. Hence, international migration might increase political awareness and participation both by migrants and by other individuals in their networks. To test this hypothesis, we use detailed data on different migrant networks (geographic, kinship, and chatting networks), as well as several different measures of political participation and electoral knowledge (self-reports, behavioral, and actual voting measures). These data were purposely collected around the time of the 2009 elections in Mozambique, a country with substantial emigration to neighboring countries – especially South Africa - and with one of the lowest political participation rates in the region. The empirical results show that the number of migrants an individual is in close contact with via regular chatting significantly increases political participation of residents in that village – more so than family links to migrants. Our findings are consistent with both improved knowledge about political processes and increased intrinsic motivation for political participation being transmitted through migrant networks. These results are robust to controlling for self-selection into migration as well as endogenous network formation. Our work is relevant for the many contexts of South-South migration where both countries of origin and destination are recent democracies. It shows that even in this context there may be domestic gains arising from international emigration. |
| Keywords: | international migration, social networks, political participation, information, diffusion of political norms, governance |
| JEL: | D72 D83 F22 O15 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11777&r=ure |
| By: | Andri Chassamboulli; Giovanni Peri |
| Abstract: | In this paper we analyze the economic effects of changing immigration policies in a realistic institutional set-up, using a search model calibrated to the migrant flows between the US and the rest of the world. We explicitly differentiate among the most relevant channels of entry of immigrants to the US: family-based, employment-based and undocumented. Moreover we explicitly account for earning incentives to migrate and for the role of immigrant networks in generating job-related and family-related immigration opportunities. Hence, we can analyze the effect of policy changes in each channel, accounting for the response of immigrants in general equilibrium. We find that all types of immigrants generate higher surplus for US firms relative to natives, hence restricting their entry has a depressing effect on job creation and, in turn, on native labor markets. We also show that substituting a family-based entry with an employment-based entry system, and maintaining the total inflow of immigrants unchanged, job creation and natives' income increase. |
| JEL: | E24 F22 J64 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25074&r=ure |
| By: | Cooper, Daniel H. (Federal Reserve Bank of Boston); Peek, Joe (Federal Reserve Bank of Boston) |
| Abstract: | Focusing on localized measures of bank health and economic activity, and renters as well as homeowners, this paper uses an innovative approach to identifying households likely in need of credit to investigate the effect on household spending of a deterioration in local-bank health. The analysis shows that local-bank health tends to impact the expenditures of renters more than homeowners, with the strongest effects for households that likely need credit—those experiencing a negative income shock and having limited liquid wealth. These findings contribute to the discussion of the linkages between the financial sector and real economic activity. |
| Keywords: | consumption; local-bank health; credit constraints |
| JEL: | E21 G21 |
| Date: | 2018–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbwp:18-5&r=ure |
| By: | Christopher F. Baum (Boston College; DIW Berlin; CESIS, KTH Royal Institute of Technology); Hans Lööf (CESIS, KTH Royal Institute of Technology); Andreas Stephan (Jönköping International Business School; DIW Berlin) |
| Abstract: | This paper analyzes wage income differences between native born workers and refugee immigrants in Sweden within occupations delineated in accordance with the augmented canonical model of occupational assignment. The identification strategy is based on a control group of matched native born persons with similar characteristics as the refugees and by using panel data methods capturing unobserved heterogeneity. The econometric results from a Swedish employer-employee panel data set document a narrowed wage gap over time, showing that the remaining difference can be explained to a large extent by the sorting into different types of occupations. Based on an Blinder–Oaxaca decomposition, we find a persistent wage gap in cognitive non-routine occupations but also, surprisingly, task categories where refugees have higher earning than natives. |
| Keywords: | refugee immigration, income gap, employer-employee data, Blinder–Oaxaca decomposition |
| JEL: | C23 F22 J24 J6 O15 |
| Date: | 2018–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:963&r=ure |
| By: | Baum, Christopher F (Boston College, DIW Berlin, and Centre of Excellence for Science and Innovation Studies (CESIS)); Lööf, Hans (Centre of Excellence for Science and Innovation Studies (CESIS), Royal Institute of Technology); Stephan, Andreas (Jönköping University, DIW Berlin, and Centre of Excellence for Science and Innovation Studies (CESIS)) |
| Abstract: | This paper analyzes wage income differences between native born workers and refugee immigrants in Sweden within occupations delineated in accordance with the augmented canonical model of occupational assignment. The identification strategy is based on a control group of matched native born persons with similar characteristics as the refugees and by using panel data methods capturing unobserved heterogeneity. The econometric results from a Swedish employer-employee panel data set document a narrowed wage gap over time, showing that the remaining difference can be explained to a large extent by the sorting into different types of occupations. Based on an Blinder–Oaxaca decomposition, we find a persistent wage gap in cognitive non-routine occupations but also, surprisingly, task categories where refugees have higher earning than natives. |
| Keywords: | refugee immigration; income gap; employer-employee data; Blinder–Oaxaca decomposition |
| JEL: | C23 F22 J24 J60 O15 |
| Date: | 2018–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0473&r=ure |
| By: | Jan Veuger |
| Abstract: | In 2007, the Ministry of Housing and Spatial Planning took the initiative to issue the building blocks for social: real estate for facilities. This has been the first attempt to deal with social real estate professionally as an asset. In 2008 the professorship of public real estate started with its first Barometer Social Real Estate. In 2009, I advocated in Real Estate Magazine that research into social real estate is necessary from the perspective of Corporate Real Estate Management (CREM) through new development models and more (PhD) research.In anticipation of the municipal elections of 2010, research from the research group Municipal Real Estate showed that social real estate was not a matter for the election programs of the political parties. This was a prelude to the funded RAAK subsidy application towards a marketed municipal real estate for carrying out practice-oriented research. This research in 2011-2012 led to the completely externally funded research group Social Real Estate in 2012. After that, the Social Real Estate professorship profiled itself in different areas. Especially the attention of minister Stef Blok in 2014 when he received the first copy of the book Barometer Maatschappelijk Vastgoed (Social Real Estate): Corporate Social Responsibility at our annual congress, the round table meeting with State Secretary for Health, Welfare and Sport Martin van Rijn in 2015 and the informal conversation with the Minister of Education, Culture and Science Jet Bussemaker in 2015 have given extra publicity in the media alongside the many publications of the lectorate. The debate in 2016 with civil society with the Prime Minister Mark Rutte with the handing over of the book Barometer Maatschappelijk Vastgoed (Social Real Estate) 2016, a round table meeting in 2017 with Minister of Home Affairs and Kingdom Relations Stef Blok, aldermen and directors Real Estate of Municipalities in The Netherlands, have contributed to social and economic knowledge utilization for future and existing real estate professionals. At the PROVADA 2017 we co-organized the Shrink: Emptiness and Space for Innovation and Change session, where the Minister of the Interior and Kingdom Relations Ronald Plasterk gave his vision on this subject. |
| Keywords: | benchmark; Economic; future tasks; Management; public real estate |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_68&r=ure |
| By: | Hermann Pythagore Pierre Donfouet (African Population Health Research Centre, Nairobi, Kenya ; Univ Rennes, CNRS, CREM - UMR 6211, F-35000 Rennes, France); Moses Ngware (African Population Health Research Centre, Nairobi, Kenya); Njora Hungi (African Population Health Research Centre, Nairobi, Kenya); Patricia Kitsao-Wekulo (African Population Health Research Centre, Nairobi, Kenya) |
| Abstract: | We analyze the cost and cost-effectiveness of an early childhood development and education (ECDE) program in Kenya which aimed at preparing pre-primary children for primary school. A cluster randomized controlled trial design was used. Enrolled schools were provided with three different treatment packages that aimed at improving the instructional quality of ECDE centres complemented with a health component. We find that for every additional US$ 1 spent on the second treatment package, the intervention yields 0.16 extra percentage points in public ECDE centres over two years of participation. This translates to a cost of US$ 14.83 per child. Similarly, in private ECDE centres, results suggest that the yield of extra learning score per US$ 1 spent on the second treatment package is 0.36 percentage points, which translates to a cost of US$ 17.01 per child. Our findings indicate that combining the training of teachers, supervision staff, teacher support, books and teachers’ guides may be cost-effective. Hence, this pre-primary program could be scaled-up in different counties of Kenya. |
| Keywords: | Theory of fundamental causes, tobacco consumption, socioeconomic inequalities, concentration index |
| JEL: | D C2 L66 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:2018-09&r=ure |
| By: | Baum, Christopher F (Boston College, DIW Berlin, and Centre of Excellence for Science and Innovation Studies (CESIS)); Lööf, Hans (Centre of Excellence for Science and Innovation Studies (CESIS), Royal Institute of Technology); Stephan, Andreas (Jönköping University, DIW Berlin, and Centre of Excellence for Science and Innovation Studies (CESIS)) |
| Abstract: | STEM-focused industries are critical to the innovation-driven economy. As many firms are running short of STEM workers, international immigrants are increasingly recognized as a potential for high-tech job recruitment. This paper studies STEM occupations in Sweden 2011–2015 and tests hypotheses on new recruitment and the economic impact of foreign STEM workers. The empirical analysis shows that the probability that a new employee is a STEM immigrant increases with the share of STEM immigrants already employed, while the marginal effect on average firm wages is positively associated with the share of immigrant STEM workers. We also document heterogeneity in the results, suggesting that European migrants are more attractive for new recruitment, but non-EU migrants have the largest impact on wage determination. |
| Keywords: | STEM; migration; employment; wages; correlated random effects |
| JEL: | C23 J24 J61 O14 O15 |
| Date: | 2018–10–04 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0472&r=ure |
| By: | Nicola Mastrorocco (Trinity College Dublin) |
| Abstract: | What is the impact of organised crime on the allocation of public resources and on tax collection? This paper studies the consequences of collusion between members of criminal organisations and politicians in Italian local governments. In order to capture the presence of organised crime, we exploit the staggered enforcement of a national law allowing for dissolution of a municipal government upon evidence of collusion between elected officials and the mafia. We measure the consequences of this collusion by using newly collected data on public spending, local taxes and elected politicians at the local level. Differences-in-differences estimates reveal that infiltrated local governments not only spend more on average on construction and waste management and less on police enforcement, but also collect fewer fiscal revenues. In addition, we uncover key elements of local elections associated with mafia-government collusion. In particular, Regression Discontinuity estimates show that infiltration is more likely to occur when right-wing parties win local elections. |
| Keywords: | Organized crime, Elections, Collusions, Public Spending, Italy. |
| JEL: | K42 H72 D72 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:tcd:tcduee:tep1018&r=ure |
| By: | Han, Kwideok; Whitacre, Brian E. |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2018–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea18:266597&r=ure |
| By: | Alexandra López Cermeño (Lund University) |
| Abstract: | "This paper explores the impact of new universities established in the United States between 1930-2010. Differences in differences analysis on a sample of counties selected through propensity score matching enables the assessment of the impact of these universities on GDP, population, and different scales of market size. Evidence suggests that hosts of new universities grew around 20 per cent more, and the effect expanded to the nearby areas. Controlling for research quality and infrastructures shows that new cultural amenities generate growth that expands to nearby areas through the agglomeration of population but only during the short run." |
| Keywords: | "Economic Geography, Spillovers, Universities, United States" |
| JEL: | L8 N72 R12 I23 |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:ehs:wpaper:17016&r=ure |
| By: | Esteban Rossi-Hansberg; Pierre-Daniel Sarte; Nicholas Trachter |
| Abstract: | The views expressed herein are those of the authors and do not necessarily represent the views of the Federal Reserve Bank of Richmond or the Federal Reserve System. We thank Eric LaRose and Sara Ho for outstanding research assistance.Using U.S. NETS data, we present evidence that the positive trend observed in national product-market concentration between 1990 and 2014 becomes a negative trend when we focus on measures of local concentration. We document diverging trends for several geographic definitions of local markets. SIC 8 industries with diverging trends are pervasive across sectors. In these industries, top firms have contributed to the amplification of both trends. When a top firm opens a plant, local concentration declines and remains lower for at least 7 years. Our findings, therefore, reconcile the increasing national role of large firms with falling local concentration, and a likely more competitive local environment. |
| JEL: | E23 L11 R12 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25066&r=ure |
| By: | Angelina Hackmann; Torben Klarl |
| Abstract: | Exploiting the cascade structure of cities and based on a dataset for U.S. cities between 1840 and 2016, the aim of this short paper is to answer three important questions: First, do we observe that the U.S. city size distribution exhibits a smooth transition to Zipf's law from the beginning or are there periods showing a pronounced departure from Zipf's law? Second, if we observe periods of departure, which alternative laws instead should be used to accurately describe the city size distribution? Third, employing information from the cascade structure of cities, do we always find evidence for primate cities for a specific period of time? Inter alia, we find that the exact Zipf's law has evolved over time from the more general, so-called three-parameter Zipf's law which can be traced back to Mandelbrot (1982). |
| Keywords: | city size distributions, Zipf’s law, hierachical scaling law, urban systems |
| JEL: | R11 R12 R15 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7232&r=ure |
| By: | Neil Crosby |
| Abstract: | Development Viability Assessment is now a central plank in UK national planning policy and the residual property valuation model is used by landowners, developers and the local authorities to determine the level of planning obligations that can be sought from the developers/landowners in exchange for the grant of permission to develop. The Government requires that local planning authorities do not ask for contributions that will stifle development and that LPAs should ensure that developers and landowners get a “competitive return”.There is now a body of academic and other comment that the viability assessment regime has acted to ensure that not only do landowners and developers get a competitive return, the system allows them to receive more than that at the expense of the LPA. This paper briefly reviews this literature and constructs a hypothetical case study to examine the process; specifically the impact of Planning Practice Guidance (PPG) on two specific inputs into the development appraisal/viability model.The paper illustrates that the two aspects – ignoring changes in values and costs over the development period coupled with instructions that comparable evidence is proof of policy compliant land prices – are fundamentally flawed and a major cause of the reduction in the delivery of planning obligations. At the time of writing the abstract, the UK Government is currently consulting on the need to change the wording of its PPG to remove these and any other flaws. By the time of the conference any proposed changes will have been proposed and the paper will critique any proposals. |
| Keywords: | Development Viability Assessment; Planning Practice Guidance; Real Estate Development; Threshold Land Value.; UK Government Planning Policy |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_97&r=ure |
| By: | David Bogataj; Alenka Temeljotov Salaj; Rogelj Valerija; Marija Bogataj |
| Abstract: | The objective of this paper is to introduce the model and to present a structure of the proper database for planning the social infrastructure for older population, including home-care, based on a multiple decrement/multi-state transition model, where a higher standard can be achieved by implementing flexible Equity Release Scheme (ERS) products. ERSs influence the purchasing power of seniors and therefore the probability of transitions in the decrement models is changing. (a) As the central objective, the multiple decrements approach is developed and applied in the program of housing and accompanying services needed for older citizens as a new tool for better forecasting housing needs of senior citizens with decreasing functional capacities, and therefore the changing services and housing needs over their lifetime horizon. (b) To discuss new urban management model that generate shared values for community, users and commercial actors. (c) The Flexible Equity Release Scheme is developed tied with the person and not with his/her housing unit, as a novelty in the scientific and professional literature. The schemes are embedded in the directed graph of multiple decrements. The impact of higher purchasing power in case of using reverse mortgage benefits is evaluated, especially the impact on the probability of transitions in optimal adjustments to the needs of seniors when their functional capacities are reduced. The model can be used for policy makers on national or community level as well as to banks and insurance companies which are willing to develop such programs in Central and Eastern Europe, where such products are not developed yet. The case study for Slovenian state of the art and the policy development is presented. |
| Keywords: | facilities for elderly persons; Housing; housing equity withdrawal; multistate transition model |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_256&r=ure |
| By: | Benjamin Wagner; Andreas Pfnür |
| Abstract: | Real estate industry in general and its business models in particular are standing at the beginning of a transformation process, caused by fundamental and multidimensional change in technology, economy and society. The drivers of this change can be classified into three dimensions: social development, change of economic structure and digitalization. Although these transformation processes' effects are already visible, immediate consequences for market participants of the real estate industry remain largely uncertain. They are without a doubt going to affect the value system of the real estate industry, because the market environment and therefore business models of relevant participants are changing and will continue to do so. As a result, the demarcation line of the value system is going to become blurred, and a reform of the internal structure will take place. Many organizations struggle to grasp the full extent of this process, which can be seen by a predominant, exclusive focus on digitalization.The goal of this research is to determine and systemize the drivers of change affecting the real estate industry. Thereby, the author delineates variations of business models and points out which drivers of change have an impact on which business model.Based on a systematic literature review, a theoretical framework will be developed, in order to determine and systemize drivers of change in the real estate industry. This framework will be tested empirically by a quantitative survey of German real estate market participants. The appraisals are enquired using multivariate analyses and multidimensional scaling (MDS).An exhaustive systematization of all essential drivers of change cannot be found in the existing body of literature. Only if the effects of the drivers and the consequential impacts on business models in the real estate industry are anticipated correctly, management approaches dealing with future challenges and actively shaping the transformation processes can be developed properly. The research results will help to characterize the need for adjustment in real estate industry. Furthermore, it could reveal approaches for developing new and innovative business models. |
| Keywords: | Business Models; Digitalization; Industry Transformation; Real Estate Trends; Value System |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_185&r=ure |
| By: | Dubravka Jurlina Alibegovic (The Institute of Economics, Zagreb); Zeljka Kordej-De Villa (The Institute of Economics, Zagreb); Mislav Sagovac (University of Zagreb, Faculty of Economics and Business) |
| Abstract: | The focus of this research is to implement the smart city methodology and develop smart city indicators for twenty-five large Croatian cities in order to develop a reference model for monitoring the success of Croatian large cities. Starting from the fact that only two Croatian cities have prepared a smart management strategy and that only thirty cities have developed smart projects in various sectors, the purpose of this research is to show the development of smart city indicators for the large cities through six dimensions of the smart city model: smart economy, smart people, smart governance, smart mobility, smart environment and smart living. The smart city indicators are based on publicly accessible data and easily available sources. In addition, web scraping techniques were used to obtain data that are not available from public sources. After data collection, all variables were standardized, allowing the comparison of indicators of different measuring units. Twenty-nine indicators were identified and used to compare the twenty-five large Croatian cities and evaluate their comparative advantages. The main results of the research include an assessment of the smart urban development index and ranking of cities according to the degree of urban development. The smart city indicator is above average in only eleven large cities. Measures for promoting smart development have been proposed to city policy-makers. The research results have implications for increasing rationality in the use of local public resources. |
| Keywords: | smart city, indicators, smart urban development index, smart governance, large cities, Croatia |
| JEL: | H70 O20 C38 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:iez:wpaper:1805&r=ure |
| By: | Nadine Wills; Judith Ponnewitz; Kay Smarsly |
| Abstract: | In the past decades, technological advancements have disrupted classical real estate research, stimulating a technology-driven real estate sector strongly affected by computer-aided facility management. One of the major challenges in real estate research is to precisely model the distributed-collaborative efforts of project stakeholders relevant to facility management (FM). Supporting the collaboration, building information modeling (BIM), widely used in the architecture, engineering, and construction (AEC) industry, has the potential to advance facility management activities and to distributedly allocate FM activities to different stakeholders based on BIM standards. A building information model is a digital representation of geometric and functional characteristics of a facility that may serve as a shared knowledge source for FM. Furthermore, during the life-cycle of a facility, a building information model may form a reliable basis for decision making in facility management relevant to the real estate sector. Despite the apparent interrelation between facility management and building information modeling, BIM applications have not been incorporated into sustainable facility management guidelines. This contribution presents a survey of BIM applications and the potential to be deployed for sustainable facility management. Interfaces between BIM applications and sustainable facility management guidelines are investigated, with strong emphasis on the German GEFMA 160 sustainable facility management guideline. Serving as an illustrative example, GEFMA 160 is compared with real estate-relevant BIM applications commonly used in the AEC industry, showcasing the practicability of BIM applications for implementing sustainable facility management criteria in the real estate sector. |
| Keywords: | Building Information Modeling; Facility information management; Sustainable facility management guidelines; Sustainable Real Estate |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_154&r=ure |
| By: | Ida Qvenild Nesset; Are Oust |
| Abstract: | Dwellings of historic value offer qualities that benefits the owner or user, or the society in general. Historic preservation involve use of different policies including push and pull strategies to help protect and manage historic valuable dwellings for present and future generations. The majority of previous studies aiming to assess the impact of historic preservation on housing values employ hedonic pricing models to control for the heterogeneous nature of dwellings. These studies show deviant results and cannot, however conclude whether the observed historic preservation premium are due to a policy effect because it is likely to include a heritage effect due to unobserved characteristics that got the dwelling historic preserved in the first place. This study expands upon previous studies by introducing a unique dataset, which combines data of historic preserved dwellings in Oslo, Norway, and data from the housing market from 1990 to 2017, allowing us to study sales prices for the same dwellings both before and after the action of historic preservation. We further address the omitted variable bias by estimating a two-way fixed effects model including a differences-in-differences estimator. Our results suggest a policy premium of about 4%. Moreover, results suggest that the dwellings subject to the strictest policy hold a lower policy premium than the dwellings subject to the less strict policy, what implies quite clear policy recommendations. |
| Keywords: | differences-in-differences; fixed effects; Historic Preservation Policies; housing values |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_196&r=ure |
| By: | Simone Moriconi; Giovanni Peri; Riccardo Turati |
| Abstract: | In this paper we document the impact of immigration at the regional level on Europeans’ political preferences as expressed by voting behavior in parliamentary or presidential elections between 2007 and 2016. We combine individual data on party voting with a classification of each party's political agenda on a scale of their "nationalistic" attitudes over 28 elections across 126 parties in 12 countries. To reduce immigrant selection and omitted variable bias, we use immigrant settlements in 2005 and the skill composition of recent immigrant flows as instruments. OLS and IV estimates show that larger inflows of highly educated immigrants were associated with a change in the vote of citizens away from nationalism. However the inflow of less educated immigrants was positively associated with a vote shift towards nationalist positions. These effects were stronger for non-tertiary educated voters and in response to non-European immigrants. We also show that they are consistent with the impact of immigration on individual political preferences, which we estimate using longitudinal data, and on opinions about immigrants. Conversely, immigration did not affect electoral turnout. Simulations based on the estimated coefficients show that immigration policies balancing the number of high-skilled and low-skilled immigrants from outside the EU would be associated with a shift in votes away from nationalist parties in almost all European regions. |
| JEL: | D72 I28 J61 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25077&r=ure |
| By: | Astghik Grigoryan |
| Abstract: | It is difficult to avoid the impact of economic restructuring on the landscape and social and economic life of many cities which were used to grow within certain economic structure and also supported by the state (Healey, 1997). In many post-socialist countries the collapse of the socialist system was followed by a number of economic, social and legal reforms, due to which the land and property ownership in most of the countries has been transferred from public to private sector. However, in most cases the state transferred to private hands not only the ownership to the property but also the problems related to the quality of that property. The issue has a specific importance with regard to multi-unit housing since the latter occupies the largest share of urban fabric worldwide.While having scarce public resources the promotion of private property-based investment projects becomes a sound solution in qualifying urban residential spaces and overcoming urban decay. Such projects will be successful if applying collaborative approaches and enhancing the value added by the project.The aim of this study is to discuss the possibilities and constraints for application of certain models of collaborative approach to property-based urban management in post-socialist planning practice. Armenia (Yerevan) shall be considered as a particular case of post-socialist transitional society. The discussion shall be based on surveys conducted within the scope of research project.The results show that even in societies where the private property rights and respective regulations are relatively recent the collaboration in urban regeneration projects is more successful when the allocation of the global project value added to each participant is evidenced and rationalized, whereas supportive institutional framework and participation of financial institution as a project stakeholder are considered essential preconditions. |
| Keywords: | collaborative management; post-socialist society; property-based investment project; Urban Space Quality |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_326&r=ure |
| By: | Gaetano Basso; Francesco D'Amuri; Giovanni Peri |
| Abstract: | We analyze the role of labor mobility in cushioning labor demand shocks in the Euro Area. We find that foreign born workers’ mobility is strongly cyclical, while this is not the case for natives. Foreigners’ higher population to employment elasticity reduces the variation of overall employment rates over the business cycle: thanks to them, the impact of a one standard deviation change in employment on employment rates decreases by 6 per cent at the country level and by 7 per cent at the regional level. Additionally, we compare Euro Area mobility to that of another currency union, the US. We find that the population to employment elasticity estimated for foreign-born persons is similar in the Euro Area and the US, while EA natives are definitely less mobile across countries than US natives are across states in response to labor demand shocks. This last result confirms that in the Euro Area there is room for improving country specific shocks absorption through higher labor mobility. It also suggests that immigration helped labor market adjustments. |
| JEL: | E32 F22 J6 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25091&r=ure |
| By: | Daniel MIRZA; Francesco MAGRIS; Rémi BAZILLIER |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:leo:wpaper:2610&r=ure |
| By: | Andrzejczyk, Angelika; Florkowski, Wojciech J. |
| Keywords: | Teaching, Communication, and Extension, Rural/Community Development, Agribusiness Economics and Management |
| Date: | 2018–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea18:274506&r=ure |
| By: | Boram Lee; Kyung-Min Kim; Seulki Yu |
| Abstract: | As countries worldwide promote the human rights of LGBT (Lesbian, Gay, Bisexual and Transgender), the support for LGBT community is steadily grown, reflecting societal shift on views on LGBT. Moreover, the purchasing power of LGBT has continuously increased, and even considered as a “dream market.” However, public attitude toward LGBT remains not welcome in South Korea. Itaewon, where embraces the gay district, has experienced a growing number of bars, restaurants, and clubs. The major objectives of the research is: 1) What is the role of gay and gay space, influencing the nearby business and the neighborhood as a whole? 2) Is gay community losing its space (gay-led gentrification)? Through literature review, archives of historical and current newspapers and publications, visual analysis through GIS, in-depth interviews, and ethnographical observations, it is found that gay bring commercial activities with “hip” atmosphere and inevitably lead local gentrification. In other words, when the gay expand commercial activities, the rent as well as land price rise, but the gay community is displaced, evidencing the gay-led gentrification. This research is meaningful as the study on the role of gay community in commercialized urban area and the gay-led gentrification has not been conducted in South Korea. As the society begins to accept its identity and its economy power increases, it is crucial to acknowledge their influence in the space. |
| Keywords: | Gaytrification; Itaewon |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_84&r=ure |
| By: | Hera Antoniades; Dulani Halvitigala; Chris Eves |
| Abstract: | CoWorking space is commonly a collaborative space in an office-like environment. The space can be in the form of very short office leases which range anywhere between a day to a week and longer; and the space can be used independently, collaboratively or in nominated teams. The intent of coworking spaces is numerous, which includes a sense of community environment, encouraging greater productivity, provide access for mobile and freelance workers and an affordable solution to start-ups who are on a restricted budget and unable to enter into long term rental commitments. Many landlords are being challenged by this growing demand for flexible, scalable, collaborative spaces with short term leases. A desktop analysis of eighteen (18) coworking locations in Sydney is undertaken. The findings identified three main opportunities for landlords to capture the coworking space – firstly, leasing space to coworking operators, secondly developing their own coworking platforms and thirdly partnering with coworking operators to develop coworking spaces; coupled with two main challenges associated with the implementation of coworking hubs – the reliance on coworking operators and their survival with changing market conditions, and secondly, transforming traditional office spaces into engaging coworking vibrant hubs. |
| Keywords: | challanges; collaborative spaces; Coworking spaces; office landlords; Opportunities |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_294&r=ure |
| By: | Haoyuan Liu (McCombs School of Business, University of Texas at Austin, 2110 Speedway Stop B6500, Austin, TX 78712); Wen Wen (McCombs School of Business, University of Texas at Austin, 2110 Speedway Stop B6500, Austin, TX 78712); Andrew B. Whinston (McCombs School of Business, University of Texas at Austin, 2110 Speedway Stop B6500, Austin, TX 78712) |
| Abstract: | We study how the broadcasting of peer success on an enterprise digital platform affects worker productivity. Using sales workers in an IT service company as our research context, we leverage the unexpected resignation of several HR staff members as an exogenous shock to the sharing of peer success and implement a difference-in-differences estimation. The empirical evidence shows that sales workers exert less effort when peer success messages are absent. We next investigate how the framing of peer success messages may generate different forms of peer influence, and particularly explore two ways of framing—messages that highlight peer’s ability (i.e., ability-based messages) and messages that highlight peer’s effort (i.e., effort-based messages). We find that although both types of peer success messages have a positive influence on worker productivity, there exists important heterogeneity. For ability-based messages, workers respond most strongly if their peers are socially close or have worse historical performance. By contrast, the effect of effort-based messages does not vary by peer characteristics. |
| Keywords: | peer success, work effort, productivity, peer influence, online organizational communication, peer pressure, difference-in-differences |
| JEL: | J24 L86 M54 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:1808&r=ure |
| By: | Xenia Scimone; Umberto Filotto; Claudio Giannotti |
| Abstract: | Aim: The aim of the paper is to evaluate the influence of macro-economic and demographic variables on residential mortgage growth in Italy. This study will expand the indicator of macroeconomic variables considered in the analysis of mortgage trends and will also include demographic variables. The objective is to identify if and what is the relationship between the following variables and the provision of loans in the Italian market. The sample consider all banks presents in Italy for which residential mortgage data are available in the balance sheet. The data are yearly and the time period analysed from 2002-2016. Bank control variable are collected from Bank of Italy database while macro-economic variables are from ISTAT and Eurostat database.The methodology adopted is the multiple regression analysis. We have as dependent variable the outstanding residential mortgage and as independent variable:Average Yearly Inflation Rate Average Yearly GDP growth Rate Average Yearly Exchange Rate Percentage Informal Sector Employment Treasury bill rate National Saving Rate House Price Index Structural Dependency Index Index of resident foreigners Number of leasesFor each variable, in order to evaluate the relations within each other, we will run the following tests:Test of Normality Correlation test Multicollinearity TestExpected results: We will expected that GDP per capita, House Price Index, informal sector employment and inflation have the highest influence on mortgage growth in Italy, while, demographic factors should show a negative impact on residential mortgage but not relevant for Italian market. |
| Keywords: | demographic factor; Macro-economic factor; Percentage Informal Sector Employment; Relationship; Residential Mortgage |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_262&r=ure |
| By: | Samuel Bazzi; Sarah Burns; Gordon Hanson; Bryan Roberts; John Whitley |
| Abstract: | In this paper, we use administrative records from the U.S. Border Patrol to examine how penalizing illegal border crossing affects recidivism in the apprehension of undocumented migrants at the U.S.-Mexico border. Over 2008 to 2012, the Border Patrol rolled out a Consequence Delivery System, which increased the fraction of apprehended border crossers subject to administrative or criminal sanctions from 15% to 85% percent. By matching fingerprints across apprehension records, we detect if a migrant apprehended by the Border Patrol is subject to penalties and if he is re-apprehended at a later date. Exploiting day-to-day variation in the capacity of the Border Patrol to levy sanctions during the rollout phase, we estimate strong effects of penalties on the likelihood that an apprehended migrant re-attempts illegal entry and is recaptured. Exposure to (milder) administrative penalties reduces the 3-month and 18-month re-apprehension rates for male Mexican nationals by 6.6 and 4.6 percentage points, off of baseline rates of 22.6% and 24.2%; exposure to the full set of penalties reduces these re-apprehension rates by 8.1 and 6.1 percentage points. The estimated magnitudes imply that the rollout of the CDS can account for 28 to 44 percent of the reduction in re-apprehension rates over 2008 to 2012. Further results suggest that our estimated impacts of sanctions on recidivism in apprehensions may understate the impact of sanctions on recidivism in attempted illegal entry. |
| JEL: | F22 J61 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25100&r=ure |
| By: | Eliza Starr; Chris Starr; Elaine Worzala |
| Abstract: | Software technology companies seek to follow the lead of Google, Facebook, Pandora and other successful technology companies with amenities and an open-office design that reflect the company culture. Efforts to attract the millennial generation, retain employees, decrease overall office space size, and increase employee performance may be driving this trend. However, there may be an alternative explanation driving the commercial real estate decision that is tied to the chosen daily business processes of a given company in technology sector.This research explores the connection between the software development processes, agile and waterfall, used by the software technology companies and their corporate real estate (CRE) needs. A questionnaire is used to gather real estate demands from fifteen randomly selected technology companies in Charleston, South Carolina, at three stages of growth – small, medium and large. The survey was developed by interviewing local brokers, architects, and interior designers in order to identify questions that would provide a meaningful dataset on the CRE demands in question. These demands include both quantitative and qualitative measures including square footage per employee, furniture design, additional amenities offered to the employees and office layout. Our primary question is does the business process chosen by the technology companies matter? We expect to find that technology companies using primarily agile processes, which require regular collaboration between employees, would use less square footage per employee due to a shared, flexible, and open office design. Whereas, companies mainly using waterfall processes, which require more heads-down work and less frequent collaboration, would have a higher square foot per employee ratio because of a more private, permanent, and closed office design. Results from this study will be useful for many real estate stakeholders including the tenants/corporate users, brokers, architects, interior designer and the real estate investment community. |
| Keywords: | agile or waterfall business process; Corporate real estate; Facilities Management; office space; softare development companies |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_155&r=ure |
| By: | Xie, Yang; Zilberman, David |
| Keywords: | Resource and Environmental Policy Analysis, Natural Resource Economics, Risk and Uncertainty |
| Date: | 2018–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea18:274445&r=ure |
| By: | Luis Armona; Rajashri Chakrabarti; Michael F. Lovenheim |
| Abstract: | For-profit providers are becoming an increasingly important fixture of US higher education markets. Students who attend for-profit institutions take on more educational debt, have worse labor market outcomes, and are more likely to default than students attending similarly-selective public schools. Because for-profits tend to serve students from more disadvantaged backgrounds, it is important to isolate the causal effect of for-profit enrollment on educational and labor market outcomes. We approach this problem using a novel instrument combined with more comprehensive data on student outcomes than has been employed in prior research. Our instrument leverages the interaction between changes in the demand for college due to labor demand shocks and the local supply of for-profit schools. We compare enrollment and postsecondary outcome changes across areas that experience similar labor demand shocks but that have different latent supply of for-profit institutions. The first-stage estimates show that students are much more likely to enroll in a for-profit institution for a given labor demand change when there is a higher supply of such schools in the base period. Among four-year students, for-profit enrollment leads to more loans, higher loan amounts, an increased likelihood of borrowing, an increased risk of default and worse labor market outcomes. Two-year for-profit students also take out more loans, have higher default rates and lower earnings. But, they are more likely to graduate and to earn over $25,000 per year (the median earnings of high school graduates). Finally, we show that for-profit entry and exit decisions are at most weakly responsive to labor demand shocks. Our results point to low returns to for-profit enrollment that have important implications for public investments in higher education as well as how students make postsecondary choices. |
| JEL: | I23 J24 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25042&r=ure |
| By: | Amrit Amirapu; M Niaz Asadullah; Zaki Wahhaj |
| Abstract: | Traditional gender norms can restrict independent migration by women, thus preventing them from taking advantage of economic opportunities in urban non-agricultural industries. However, women may be able to circumvent such restrictions by using marriage to engage in long-distance migration - if they are wealthy enough to match with the desirable migrating grooms. Guided by a model in which women make marriage and migration decisions jointly, we hypothesize that marriage and labour markets will be inextricably linked by the possibility of marital migration. To test our hypotheses, we use the event of the construction of a major bridge in Bangladesh - which dramatically reduced travel time between the economically deprived north-western region and the industrial belt located around the capital city Dhaka - as a source of plausibly exogenous variation in migration costs. In accordance with our model's predictions, we find that the bridge construction induced marriage-related migration (not economic migration) among rural women, but only for those women coming from families above a poverty threshold. |
| Keywords: | migration; marriage markets; female labour force participation; gender norms |
| JEL: | J12 J16 J61 O18 R23 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:ukc:ukcedp:1810&r=ure |
| By: | Chen, Qihui; Liu, Xiaoyue; Zhao, Qiran |
| Keywords: | Food Safety and Nutrition, Household and Labor Economics, Experimental Economics |
| Date: | 2018–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea18:273907&r=ure |
| By: | Ewelina Nawrocka |
| Abstract: | Market economy has existed in Poland for almost thirty years. While a new economy was being formed, new laws were established. However, the issue of collecting data on real property has not been properly solved, as there is no nationwide database referring to real property. Information on real property in Poland is collected in the Residential Property Price Register in county offices. Different computer programs are used to create regional databases, however these databases are not compatible and the information gathered in the databases is incomplete.The obstacles in access to full information on real property hamper the work of valuers, particularly in defining trends in property price changes. For the purpose of a comparative approach to property valuation, the Real Estate Management Act requires that time changes in the price of similar property should be taken into account. For the last 20 years, the President of the Central Statistical Office of Poland has had to publish the real property price change index, however the lack of real property information was the reason why the work on defining the index has not been fully completed. For three years, there have been published the GUS President’s announcements concerning the change in market prices of properties purchased by household in a quarter of a year under research compared to their prices in the preceding quarter according to the Regions. For these reasons valuers in Poland use transaction prices and property description from notarial acts and they determine the price change rate themselves.Purpose: The purpose is to present the practices of price change factor determination followed by valuers in Poland, especially the degree to which they are known to valuers and applied.Design/methodology/approach:Results of a survey among property valuers in order to recognise their knowledge of identified methods and their application in practice; The appraisal of possible utilisation of the methods of stipulating price change rates, illustrated with an example of the local real property market (quantitative methods).FindingsMethods of stipulating the property price change ate identified so far are subdivided into simple methods (e.g. average, median, method of tracing representative price of the property) and methods which also include its characteristics (e.g. repeat-sales regression method, hedonic methods, mixed methods). Appraisers in Poland usually use simple methods." |
| Keywords: | methods; Price index; Property; Valuation; Valuers |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_63&r=ure |
| By: | Niaz Asadullah (University of Malaya, Malaysia); Alain Trannoy (Aix-Marseille University (AMSE), CNRS and EHESS, France); Sandy Tubeuf (Université Catholique de Louvain, Belgium); Gaston Yalonetzky (University of Leeds, UK) |
| Abstract: | Inequality of opportunity builds upon the distinction between fair inequality related to responsibility variables and unfair inequality related to circumstances. This distinction is meaningful as long as responsibility variables are not fully determined by circumstances. We attempt to check the magnitude of the correlation between child effort and family background when measuring inequalities of opportunity in education using a purposefully designed survey on secondary-school education in rural Bangladesh. The analysis comprises decomposition exercises of the predicted variance of school performance in mathematics and English by source and subgroup based on parametric estimates of educational production functions. Pupils’ effort, preferences, and talents contribute between a third and 40\% of the total predicted variances in performance scores. The correlation between overall effort and circumstances does not matter much since the contribution of overall effort only falls by 10\% when the correlation is taken into account. All in all, these results cast doubt on the common practice of reducing education to a circumstance when estimating inequality of opportunity in income attainment. |
| Keywords: | inequality of opportunity, education, effort, decomposition, school. |
| JEL: | C01 I24 O12 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2018-474&r=ure |
| By: | Al-Abri, Ibtisam H.; Grogan, Kelly A. |
| Keywords: | Resource and Environmental Policy Analysis, Natural Resource Economics, Risk and Uncertainty |
| Date: | 2018–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea18:274415&r=ure |
| By: | Francesco Andreoli (LISER); Eugenio Peluso (University of Verona) |
| Abstract: | This paper contributes to the literature on neighborhood inequality along both theoretical and empirical lines. We introduce a new neighborhood inequality index (NI) to measure income inequality within individual neighborhoods of varying sizes, and study its normative and statistical properties. The NI index is used in combination with a large database of income distributions defined on a fine-grained geographic scale to study neighborhood inequality in American cities over the last 35 years. Inequality within small individual neighborhoods is found to grow steadily over the period, albeit heterogeneously across cities. We investigate the intergenerational consequences of a rising NI index, exploiting labor market responses to minimum wage regulation as a source of identification. We find that lower neighborhood inequality during childhood makes income mobility for children with a disadvantaged parental background more likely. |
| Keywords: | income inequality, individual neighborhood, geostatistics, census, ACS, intergenerational mobility, divided city, mixed city. |
| JEL: | D31 D63 C21 R23 J62 I14 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2018-477&r=ure |
| By: | Han, Yicheol; Goetz, Stephan J. |
| Keywords: | Rural/Community Development, Production Economics, Industrial Org./Supply Chain Management |
| Date: | 2018–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea18:274497&r=ure |
| By: | Sariye Akcay |
| Abstract: | Recorded in history the 2007-2008 crisis is accepted to be the most serious crisis experienced after the 1929 Great Depression. This crisis began in the US. subprime mortgage markets and impacted not only the financial and real sectors in the US, but quickly became a global crisis, especially because of financial liberalization. The financial liberalization lead that the economies are increasingly integrated into international markets. Although it has presented some advantages for the economy (eg. reducing the cost of capital, raising, increasing in credit availability), it has had the role in happening some problems. Starting with the 1990s, many countries experienced an unprecedented increase in current account imbalances. Some countries appear to have current account deficits (eg. Greece, and Portugal), others have current account surplus (eg. Germany and Netherland).On the other hand, there has been an increase in asset prices, especially in housing prices within the same time period. From 2000 to 2006, house prices rose 50% in real terms in the advanced economy while they went up by almost 30% in the developing country. Again around the same time, the ‘housing boom’ has turned into a ‘bust’ in many countries and most of them have experienced deep crisis. The cost of experiencing both housing price boom-bust cycles and high current deficits concurrently has been more severe for some of them. Consequently, it can be suggested that the current account imbalances and housing price boom-bust cycles have become the defining characteristics of the period of pre-global crisis. In addition, it is seen that although the developments in the markets show similar trends in many countries, they have had the distinct characteristics. The institutional features of the economy have potential to contribute to this differentiation. However, based on literature review, there is no study on the role of institutional features in the relationship between house price dynamics and current account imbalances. The aim of the study is to examine the relationship between housing price cycles and current account imbalances as well as the role of the institutional characteristics in this relationship. For this aim, we use a simulataneous equation model. The findings show that there is a positive association between both dynamics and that the institutions affect this relationship. |
| Keywords: | Current Account Imbalances; European Union; Housing Prices; Institutional Characteristics |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_91&r=ure |
| By: | McKennie, Caitlin (University of Stirling); Argys, Laura M. (University of Colorado Denver); Friedson, Andrew I. (University of Colorado Denver) |
| Abstract: | Increasing trends in obesity have driven policymakers around the US to examine factors associated with lower Body Mass Index (BMI) and improved health. Our research examines the relationship between an individual's health and their environment. Specifically, we examine whether moving to a state with a different statewide average BMI than the state of origin leads to changes in individual BMI. Combining individual data from the 1997 cohort of the National Longitudinal Survey of Youth with state-level data on average BMI from the Centers for Disease Control, we find that individuals experience changes in BMI that move their individual BMI based on the BMI of their destination state relative to their state of origin. The effect is largely due to female moving to states with much higher BMI than their state of origin. These individuals see an increase in their average BMI of approximately 2.5 percent and an increase in the likelihood of being overweight of approximately 9.8 percentage points. |
| Keywords: | Body Mass Index, peer effects, migration, obesity |
| JEL: | I1 I12 J61 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11770&r=ure |
| By: | Sharon Vosters; Rianne Appel-Meulenbroek; Astrid Kemperman |
| Abstract: | Organisations value their employees as one of their key assets and continuously seek for the best potential talent among the declining workforce. In order to attract and retain talented millennials, the office environment also has to support the needs of this generation. The aim of this study was therefore to provide Corporate Real Estate Managers (CREM) with insight in how to support millennials in order to attract and retain them. It identified which physical workplace aspects can support the 3 most important workplace needs of millennials: sociability with colleagues, opportunity to grow and work-life balance. Hypotheses were developed on differences between generations on these needs and the possible support of relevant physical workplace aspects.Data was collected through a survey of 302 Dutch office employees belonging to the baby boomers, generation X or millennials generation. The hypotheses were tested with Pearson correlation coefficients and ANOVA. Results showed that millennials attach more value to the need for coaching and professional growth than generation x, and less value to the balance between leisure and work. Regarding physical workplace aspects, in total thirteen unique physical workplace aspects have the potential to support the three workplace needs of millennials. They find accessibility of colleagues and informal work areas/break-out zones more important in support of their sociability with colleagues than generation X. For supporting the same need, baby boomers find IT-services for social networking more important than millennials. Regarding the opportunity to grow, baby boomers perceive audio-visual equipment to be more important than millennials. In order to support their need for work-life balance, millennials find the ability to personalise their workstation more important than others. Future studies should further clarify support of needs of different generations and how CREM can create an office environment that accommodates and supports all. |
| Keywords: | generations; millennials; user needs; workplace management |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_36&r=ure |