nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2019‒04‒22
fifty-five papers chosen by
Steve Ross
University of Connecticut

  1. The Marginal Effect of Government Mortgage Guarantees on Homeownership By Serafin J. Grundl; You Suk Kim
  2. Accessibility, local pollution and housing prices. Evidence from Nantes Métropole, France By Dorothée Brécard; Rémy Le Boennec; Frédéric Salladarré
  3. The Geography Channel of House Price Appreciation By Howard, Greg; Liebersohn, Jack
  4. Estimating Peer Effects on Career Choice: A Spatial Multinomial Logit Approach By Li, Bolun; Sickles, Robin C.; Williams, Jenny
  5. Businesses and Health in Border Cities By OECD
  6. The effect of house prices on fertility: Evidence from Canada By Clark, Jeremy; Ferrer, Ana M.
  7. The Welfare Effects of Greenbelt Policy: Evidence from England By Hans Koster; Mohammad Saeed Zabihidan
  8. Affordability, Financial Innovation, and the Start of the Housing Boom By Campbell, Jeffrey R.; Ferroni, Filippo; Fisher, Jonas D. M.; Melosi, Leonardo
  9. Accessibility and Infrastructure in Border Cities By OECD
  10. Firm Performance and Agglomeration Effects: Evidence from Tunisian Firm-level Data By Mohamed Amara
  11. The Long-Run Effects of Neighborhood Change on Incumbent Families By Baum-Snow, Nathaniel; Hartley, Daniel; Kwan Ok , Lee
  12. Refugees and 'Native Flight' from Public to Private Schools By Tumen, Semih
  13. Expectations During the U.S. Housing Boom: Inferring Beliefs from Actions By Ben-David, Itzhak; Towbin, Pascal; Weber, Sebastian
  14. Regional Integration in Border Cities By OECD
  15. Effects of Four-Day School Weeks on Student Achievement: Evidence from Oregon By Thompson, Paul N.
  16. Fulfilling our economic potential: remarks at the Association for Neighborhood & Housing Development 2019 Annual Conference, New York City By Williams, John C.
  17. Goals and Gaps: Educational Careers of Immigrant Children By Carlana, Michela; La Ferrara, Eliana; Pinotti, Paolo
  18. Population and Morphology of Border Cities By OECD
  19. Automation and Irish Towns: Who's Most at Risk? By Crowley, Frank; Doran, Justin
  20. How teachers and schools innovate: New measures in TALIS 2018 By OECD
  21. The trade-off between absorptive capacity and appropriability of the returns to innovation effort By Crowley, Frank; Jordan, Declan
  22. Go east: On the impact of the Transiberian Railway on economic development in Eastern Russia By Seiffert, Sebastian
  23. Residential parking costs and car ownership: Implications for parking policy and automated vehicles By Francis Ostermeijer; Hans Koster; Jos van Ommeren
  24. Eliciting Preferences of Ridehailing Users and Drivers: Evidence from the United States By Prateek Bansal; Akanksha Sinha; Rubal Dua; Ricardo Daziano
  25. Take Two! SAT Retaking and College Enrollment Gaps By Goodman, Joshua; Gurantz, Oded; Smith, Jonathan
  26. Georgia's Equalization Grant By Nicholas Warner
  27. Revealing Stereotypes: Evidence from Immigrants in Schools By Alesina, Alberto; Carlana, Michela; La Ferrara, Eliana; Pinotti, Paolo
  28. Decentralization with porous borders: Public production in a federation with tax competition and spillovers By Hintermann, Beat; Armbruster, Stephanie
  29. Welfare Benefits in Highly Decentralized Fiscal Systems: Evidence on Interterritorial Mimicking By Luis Ayala; Ana Herrero; Jorge Martinez-Vazquez
  30. Georgia's Special Purpose Local Option Sales Tax for Education: Review of Trends and Policy Implications By Ross Rubenstein; Nicholas Warner
  31. Immigrant Artists: Enrichment or Displacement? By Karol J. Borowiecki; Kathryn Graddy
  32. Electrical Bus Mobility in the EU and China: Technological, Ecological and Economic Policy Perspectives By Paul J.J. Welfens; Nan Yu; David Hanrahan; Benedikt Schmuelling; Heiko Fechtner
  33. Decentralisation and teacher accountability: How the political settlement shapes governance in the education sector at sub-national levels in Ghana By Edward Ampratwum; Mohammed Awal; Franklin Oduro
  34. Changing how literacy is taught: evidence on synthetic phonics By Machin, Stephen; McNally, Sandra; Viarengo, Martina
  35. The Impact of Interstate Mobility on the Effectiveness of Property Tax Reduction in Georgia By Andrew Feltenstein; Mark Rider; David L. Sjoquist; John V. Winters
  36. Taxation and Migration: Evidence and Policy Implications By Henrik Kleven; Camille Landais; Mathilde Muñoz; Stefanie Stantcheva
  37. Regional Output Growth in the United Kingdom: More Timely and Higher Frequency Estimates, 1970-2017 By Koop, Gary; McIntyre, Stuart; Mitchell, James; Poon, Aubrey
  38. Knowledge networks in the German bioeconomy: Network structure of publicly funded R&D networks By Bogner, Kristina
  39. Spatial Drivers of Firm Entry in Iran By Iman Cheratian; Saleh Goltabar; Carla Daniela Calá
  40. Brain Drain and Brain Gain in Italy and Ireland in the Age of Mass Migration By Matteo Gomellini; Cormac Ó Gráda
  41. Preparing Local Tax Expenditure Reports: A Practical Guide for Local Governments By Laura Wheeler; Per Johnson
  42. Universal Access to Free School Meals and Student Achievement: Evidence from the Community Eligibility Provision By Ruffini, Krista
  43. Long-Term Gains from Longer School Days By Dominguez, Patricio; Ruffini, Krista
  44. The Returns to Early-life Interventions for Very Low Birth Weight Children By Eric Chyn; Samantha Gold; Justine S. Hastings
  45. An Assessment of the Social Costs and Benefits of Vehicle Tax Reform in Ireland By L. (Lisa B.) Ryan; Andrew J. Kelly; Ivan Petrov; Yulu Guo; Sarah La Monaca
  46. Opening the Floodgates: Industry and Occupation Adjustments to Labor Immigration By Bratsberg, Bernt; Moxnes, Andreas; Raaum, Oddbjørn; Ulltveit-Moe, Karen-Helene
  47. Understanding the contribution of the BSUP (JNNURM) to inclusive cities in India By Sundar Burra; Diana Mitlin; Gayatri Menon; Indu Agarwal; Preeti Banarse; Sharmila Gimonkar; Maria Lobo; Sheela Patel; Vinodkumar Rao; Monali Waghmare
  48. Estimation of Industry-level Productivity with Cross-sectional Dependence by Using Spatial Analysis By Han, Jaepil; Sickles, Robin C.
  49. Easy Come, Easy Go? Economic Shocks, Labor Migration and the Family Left Behind By André Gröger
  50. Social Connections and the Sorting of Workers to Firms By Eliason, Marcus; Hensvik, Lena; Kramarz, Francis; Nordstrom Skans, Oskar
  51. Tax Competition and the Efficiency of “Benefit-Related†Business Taxes By Gugl, Elisabeth; Zodrow, George R.
  52. Determining the Differences that Matter: Development and Divergence in US States over 1850-2010 By Mealy, Penny; Farmer, J. Doyne; Hausmann, Ricardo
  53. Chinese aid and local ethnic identification By Isaksson, Ann-Sofie
  54. Should I stay or should I go? Migration and job-skills mismatch among Italian doctoral recipients By Alfano, Vincenzo; D'Uva, Marcella; De Simone, Elina; Gaeta, Giuseppe Lucio
  55. Entrepreneurial finance, home equity, and monetary policy By Paul Jackson; Florian Madison

  1. By: Serafin J. Grundl; You Suk Kim
    Abstract: The U.S. government guarantees a majority of residential mortgages, which is often justified as a means to promote homeownership. In this paper we use property-level data to estimate the effect of government mortgage guarantees on homeownership, by exploiting variation of the conforming loan limits (CLLs) along county borders. We find substantial effects on government guarantees, but find no robust effect on homeownership. This finding suggests that government guarantees could be considerably reduced with modest effects on homeownership, which is relevant for housing finance reform plans that propose to reduce the government’s involvement in the mortgage market by reducing the CLLs.
    Keywords: Federal Housing Administration ; Government mortgage guarantees ; Government-sponsored enterprises ; Homeownership
    JEL: G21 R31 R38
    Date: 2019–04–16
  2. By: Dorothée Brécard (LEAD - Laboratoire d'Économie Appliquée au Développement - UTLN - Université de Toulon); Rémy Le Boennec (Institut VEDECOM, LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec); Frédéric Salladarré (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes - IUML - FR 3473 Institut universitaire Mer et Littoral - UM - Le Mans Université - UA - Université d'Angers - UN - Université de Nantes - ECN - École Centrale de Nantes - UBS - Université de Bretagne Sud - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - CNRS - Centre National de la Recherche Scientifique)
    Abstract: In this empirical article, we analyze the extent to which accessibility and environmental variables are capitalized in apartment prices in Nantes Métropole, France. Using a sample of 5,590 transactions in 2002, 2006, 2008 from the Perval database, we estimate a spatial hedonic price model that takes into account spatial autocorrelation and spatial heterogeneity. Special attention is also paid to the construction of environmental quality variables (noise exposure , air pollution). We find that apartment prices depend positively on proximity to Nantes city centre but that the public transport network (urban or non-urban) has no significant influence. Noise reduction is valued, but only at low or marginal levels of significance. Last, air quality does not significantly influence apartment prices. These results can be related to good accessibility and environmental quality in Nantes Métropole which probably makes households less sensitive to these issues than in other geographical contexts. This seems to provide little support for sustainable urban mobility plans favoring better accessibility, unless public authorities also target the greater awareness of the use of virtuous modes of transport.
    Keywords: spatial econometrics,hedonic price model,accessibility,air quality,noise exposure
    Date: 2018
  3. By: Howard, Greg (University of Illinois at Urbana-Champaign); Liebersohn, Jack (Ohio State University (OSU) - Fisher College of Business)
    Abstract: We develop a theory whereby increased demand for living in housing-supply-inelastic regions raises aggregate house prices, and we show that this channel contributed significantly to the U.S. house price boom from 2000 to 2006. As an example of our framework, we show that a decline in manufacturing, an industry concentrated in elastic areas, raises national house prices. Our framework also predicts that changes in the price-rent ratio, from interest rates or other changes in the mortgage market, increase relative locational demand for high-rent areas, which are typically inelastic. Changes in locational demand therefore fill in a missing link between changes in aggregate credit conditions and aggregate house prices. We show evidence of this in the data.
    JEL: E31 R23 R31
    Date: 2018–08
  4. By: Li, Bolun (Rice U); Sickles, Robin C. (Rice U); Williams, Jenny (U of Melbourne)
    Abstract: Peers and friends are among the most influential social forces affecting adolescent behavior. In this paper we investigate peer effects on post-high school career decisions and on school choice. We define peers as students who are in the same classes and social clubs and measure peer effects as spatial dependence among them. Utilizing recent development in spatial econometrics, we formalize a spatial multinomial choice model in which individuals are spatially dependent in their preferences. We estimate the model with data from the Texas Higher Education Opportunity Project. We do find that individuals are positively correlated in their career and college preferences and examine how such dependencies impact decisions directly and indirectly as peer effects are allowed to reverberate through the social network in which students reside.
    JEL: C31 C35
    Date: 2019–01
  5. By: OECD
    Abstract: This report, part of the “Cities” collection, analyses the spatial distribution of formal enter¬prises and health infrastructure in West Africa. The analysis shows that sectors crucial for regional integration are concentrated in economic capitals rather than in border areas. These results illustrate the difficulty that many West African countries have in distributing the potential for economic development throughout the country. The mapping of health infrastructure shows that border towns have a surplus of medical centres and a deficit of hospitals and maternity wards relative to their urban populations. The report identifies several regions in which closer co-operation could favour the establishment of cross-border health facilities.Also in this Collection: “Regional Integration in Border Cities”, No. 20 “Population and Morphology of Border Cities”, No. 21 “Accessibility and Infrastructure in Border Cities”, No. 23
    Keywords: businesses, cross-border co-operation, health, national cohesion, regional integration
    JEL: O18 O21 I15 F15 F10
    Date: 2019–04–18
  6. By: Clark, Jeremy; Ferrer, Ana M.
    Abstract: Persistent house price increases are a likely candidate for consideration in fertility decisions. Theoretically, higher housing prices will cause renters to desire fewer additional children, but home owners to desire more children if they already have sufficient housing and low substitution between children and other "goods", and fewer children otherwise. In this paper, the authors combine longitudinal data from the Canadian Survey of Labour Income and Dynamics (SLID) and averaged housing price data from the Canadian Real Estate Association to estimate the effect of housing price on fertility in a housing market that has historically been less volatile and more conservative than its American counterpart. The authors ask whether changes in lagged housing price affect the marginal fertility of homeowner and renter women aged 18-45. They present results both excluding and including those who move outside their initial real estate board area, using initial area housing prices as an instrument in the latter case. For homeowners, they find evidence that lagged housing prices have a positive effect on marginal fertility and possibly on completed fertility, while for renters they find no significant effects.
    Keywords: economic determinants of fertility,housing prices,wealth effects,home ownership
    JEL: D13 J13 J18 R21
    Date: 2019
  7. By: Hans Koster (Vrije Universiteit Amsterdam); Mohammad Saeed Zabihidan (Razi University)
    Abstract: We measure the economic effects of urban growth boundaries or greenbelts that prohibit new construction beyond a predefined urban fringe. We focus on England, where 13% of the land area is designated as greenbelt land. Using spatial differencing, we show that the external effects of these regulations are substantial (about 15-20%) but very local. In contrast to the previous literature, we find no evidence for internal or 'own-lot' effects. We further show that supply effects are important: greenbelt policy reduces housing construction in greenbelts by about 80%, thereby increasing prices throughout the housing market by about 4%. We show that greenbelt policy implies a negative welfare cost of about £ 7.5 billion a year (0.5% of England's GDP). We further find evidence that greenbelts are no popular recreational destinations (proxied by geocoded pictures), and do not imply longer commutes or more housing CO2 emissions.
    Keywords: housing, supply constraints, greenbelts, urban growth boundary, open space
  8. By: Campbell, Jeffrey R. (Federal Reserve Bank of Chicago); Ferroni, Filippo (Federal Reserve Bank of Chicago); Fisher, Jonas D. M. (Federal Reserve Bank of Chicago); Melosi, Leonardo (Federal Reserve Bank of Chicago)
    Abstract: At their peak in 2005, roughly 60 percent of all purchase mortgage loans originated in the United States contained at least one non-traditional feature. These features, which allowed borrowers easier access to credit through teaser interest rates, interest-only or negative amortization periods, and extended payment terms, have been the subject of much regulatory and popular criticism. In this paper, we construct a novel county-level dataset to analyze the relationship between rising house prices and non-traditional features of mortgage contracts. We apply a break-point methodology and find that in housing markets with breaks in the mid-2000s, a strong rise in the use of non-traditional mortgages preceded the start of the housing boom. Furthermore, their rise was coupled with declining denial rates and a shift from FHA to subprime mortgages. Our findings support the view that a change in mortgage contract availability and a shift toward subprime borrowers helped to fuel the rise of house prices during the last decade.
    Keywords: monetary policy; forward guidance puzzle; central bank communication; business cycles; risk management
    JEL: E0 E52 F44
    Date: 2019–03–20
  9. By: OECD
    Abstract: This report, part of the “Cities” collection, analyses road accessibility, transport corridors and checkpoints set up in border towns in West Africa. An innovative model shows that the population base of border towns could be 14% greater if there were no delays at border crossings. The existence of roadside checks decreases the size of this population base from 12 to 50%. A study of 59 jointly planned or operated border posts in sub-Saharan Africa shows that trade facilitation runs up against the special interests of public servants and private-sector actors making a living from regional integration frictions.Also in this Collection: “Regional Integration in Border Cities”, No. 20 “Population and Morphology of Border Cities”, No. 21 “Businesses and Health in Border Cities”, No. 22
    Keywords: border posts, infrastructure, regional trade, road accessibility, transport corridors, urban networks
    JEL: O18 O21 R41 R42
    Date: 2019–04–18
  10. By: Mohamed Amara (University of Tunis)
    Abstract: Using Tunisian manufacturing data between 1998 and 2004 and by referring to multilevel approach, this paper investigates the impact of agglomeration and individual characteristics on firm’s performance. The empirical results show the importance of considering both regional and firm characteristics when examining firm performance. They also support the validity of self selection and learning-by-exporting hypotheses. Urbanization and localization effects are significant and positive for firm’s export behavior, but only localization economies have a positive effect of firm productivity. However, the results of the quantile approach show that selection, rather than agglomeration economies in larger cities, better explain spatial productivity differences
    Date: 2019
  11. By: Baum-Snow, Nathaniel (University of Toronto); Hartley, Daniel (Federal Reserve Bank of Chicago); Kwan Ok , Lee (National University of Singapore)
    Abstract: A number of prominent studies examine the long-run effects of neighborhood attributes on children by leveraging variation in neighborhood exposure through household moves. However, much neighborhood change comes in place rather than through moving. Using an urban economic geography model as a basis, this paper estimates the causal effects of changes in neighborhood attributes on long-run outcomes for incumbent children and households. For identification, we make use of quasi-random variation in 1990-2000 and 2000-2005 skill specific labor demand shocks hitting each residential metro area census tract in the U.S. Our results indicate that children in suburban neighborhoods with a one standard deviation greater increase in the share of resident adults with a college degree experienced a 0.4 to 0.7 standard deviation improvement in credit outcomes 12-17 years later. Since parental outcomes are not affected, we interpret these results as operating through neighborhood effects. Finally, we provide evidence that most of the estimated effects operate through public schools.
    Keywords: Employment; Neighborhoods; Human capital; Households; Population
    JEL: D1 E24 R3
    Date: 2019–03–18
  12. By: Tumen, Semih (TED University)
    Abstract: Native children switch from public to private primary schools in response to increased refugee concentration in the Turkish public education system. 10 percentage-point increase in refugee-to-population ratio generates, on average, 0.16 percentage-point increase in private primary school enrollment. This roughly corresponds to 1 native child switching to private education for every 31.6 refugee children enrolled in public schools — weaker than the typical estimates in the literature.
    Keywords: public vs private primary education, school choice, immigration, refugees
    JEL: I21 I24 H52
    Date: 2019–03
  13. By: Ben-David, Itzhak (Ohio State University (OSU) - Department of Finance; National Bureau of Economic Research (NBER)); Towbin, Pascal (Swiss National Bank); Weber, Sebastian (International Monetary Fund (IMF))
    Abstract: We assess the role of price expectations in forming the U.S. housing boom in the mid-2000s by studying the dynamics of vacant properties. When agents anticipate price increases, they amass excess capacity. Thus, housing vacancy discriminates between price movements related to shocks to demand for housing services (low vacancy) and expectation shocks (high vacancy). We implement this idea using a structural vector autoregression with sign restrictions. In the aggregate, expectation shocks are the most important factor explaining the boom, immediately followed by mortgage rate shocks. In the cross-section, expectation shocks are the major factor explaining price movements in the Sand States, which experienced unprecedented booms.
    JEL: E23 G12 R31
    Date: 2019–03
  14. By: OECD
    Abstract: This report, part of the “Cities” collection, highlights the contribution of border towns to the process of regional integration in West Africa. For 18 countries, six indicators are used to identify the specificities of border towns at the local, national and international levels: demography, urban morphology, formal enterprises, health infrastructure, road accessibility, border control posts. These indicators are analysed from the perspective of three geographical scales of regional integration (density, distance and division). The report details the economic and institutional obstacles facing border towns. It concludes with place-based political options to facilitate the economic and political development of West African border towns.Also in this Collection:“Population and Morphology of Border Cities”, No. 21“Businesses and Health in Border Cities”, No. 22“Accessibility and Infrastructure in Border Cities”, No. 23
    Keywords: border cities, multidimensional analyses, placed-based policies, regional integration, West Africa
    JEL: O18 O21 F15 F10
    Date: 2019–04–18
  15. By: Thompson, Paul N. (Oregon State University)
    Abstract: Due to increased financial pressures following the Great Recession, a growing number of school districts have switched from a traditional five-day school week to a four-day week schedule. While these shorter school weeks potentially help reduce costs, this study considers the implications these school schedules have on student achievement. This study uses a difference-in-differences analysis using a panel data set of student-level test scores to examine the effects of the adoption of these four-day school weeks on student achievement in the State of Oregon from 2007-2015. I find that these school schedules have detrimental impacts on student achievement, with declines of between 0.044 and 0.053 standard deviations in math scores and declines of 0.033 and 0.038 standard deviations in reading scores. The results suggest that four-day school weeks are more detrimental for the math and reading achievement of boys and the reading achievement of low-income students. Earlier school start times and lost instructional time of nearly three and a half hours a week appear to be the primary mechanisms underlying these achievement losses.
    Keywords: four-day school weeks, student achievement, instructional time
    JEL: I21
    Date: 2019–03
  16. By: Williams, John C. (Federal Reserve Bank of New York)
    Abstract: Remarks at the Association for Neighborhood & Housing Development 2019 Annual Conference, New York City.
    Keywords: dual mandate; economic growth; communities; gentrification; maximum employment; stable inflation; Community Reinvestment Act (CRA); Community Development Financial Institutions (CDFI)
    Date: 2019–04–11
  17. By: Carlana, Michela (Harvard Kennedy School); La Ferrara, Eliana (Bocconi University); Pinotti, Paolo (Bocconi University)
    Abstract: We study the educational choices of children of immigrants in a tracked school system. We first show that immigrants in Italy enroll disproportionately into vocational high schools, as opposed to technical and academically-oriented high schools, compared to natives of similar ability. The gap is greater for male students and it mirrors an analogous differential in grade retention. We then estimate the impact of a large-scale, randomized intervention providing tutoring and career counseling to high-ability immigrant students. Male treated students increase their probability of enrolling into the high track to the same level of natives, also closing the gap in terms of grade retention. There are no significant effects on immigrant girls, who exhibit similar choices and performance as native ones in absence of the intervention. Increases in academic motivation and changes in teachers' recommendation regarding high school choice explain a sizable portion of the effect, while the effect of increases in cognitive skills is negligible. Finally, we find positive spillovers on immigrant classmates of treated students, while there is no effect on native classmates.
    Date: 2018–08
  18. By: OECD
    Abstract: This report, part of the “Cities” collection, provides an analysis of the demographic and morphological changes in West African border cities since the mid-20th century. Using the Africapolis harmonised database makes it possible to show that since 1950 border cities have experienced higher rates of growth than other cities in the region. While the average size of cities increases with distance from a border, the opposite is true for urban density; it decreases as distance from a border increases. This suggests that border cities form urban centres that differ from other such centres due to the fact that they specialise in the commercial activities that stimulate growth and foster higher densities. The report identifies the 27 main cross-border agglomerations in the region and discusses their specificcharacteristics.Also in this Collection:“Regional Integration in Border Cities”, No. 20“Businesses and Health in Border Cities”, No. 22“Accessibility and Infrastructure in Border Cities”, No. 23
    Keywords: Africapolis, cross-border agglomerations, demography, morphology, urban density
    JEL: O18 O21 F15 F10
    Date: 2019–04–18
  19. By: Crowley, Frank; Doran, Justin
    Abstract: Future automation and artificial intelligence technologies are expected to have a major impact on the labour market. Despite the growing literature in the area of automation and the risk it poses to employment, there is very little analysis which considers the sub-national geographical implications of automation risk. This paper makes a number of significant contributions to the existing nascent field of regional differences in the spatial distribution of the job risk of automation. Firstly, we deploy the automation risk methodology developed by Frey and Osborne (2017) at a national level using occupational and sector data and apply a novel regionalisation disaggregation method to identify the proportion of jobs at risk of automation across the 200 towns of Ireland, which have a population of 1,500 or more using data from the 2016 census. This provides imputed values of automation risk across Irish towns. Secondly, we employ an economic geography framework to examine what types of local place characteristics are most likely to be associated with high risk towns while also considering whether the automation risk of towns has a spatial pattern across the Irish urban landscape. We find that the automation risk of towns is mainly explained by population differences, education levels, age demographics, the proportion of creative occupations in the town, town size and differences in the types of industries across towns. The impact of automation in Ireland is going to be felt far and wide, with two out of every five jobs at high risk of automation. The analysis found that many at high risk towns have at low risk nearby towns and many at low risk towns have at high risk neighbours. The analysis also found that there are also some concentrations of at lower risk towns and separately, concentrations of at higher risk towns. Our results suggest that the pattern of job risk from automation across Ireland demands policy that is not one size fits all, rather a localised, place-based, bottom up approach to policy intervention.
    Date: 2019
  20. By: OECD
    Abstract: TALIS aims to measure two points of interest: the degree to which innovation is implemented in learning environments, and the conditions for innovation in schools and classrooms. The former is examined through teachers’ self-reports of how often they use specific practices in their teaching to help students build cross-curricular skills and think critically. Conditions for innovation are examined through indicators on how open teachers and schools are to innovation, as well as the need and participation in professional development activities that enable teachers to use innovative practices in their work. Information on both of these areas will be valuable to feed into evidence-based policy making for building teacher capacity to meet the demands of 21st century learning.
    Date: 2019–04–17
  21. By: Crowley, Frank; Jordan, Declan
    Abstract: A key concept in the economics of innovation is the 'public good' nature of knowledge. This generates a tension between incentivizing knowledge production by allowing knowledge creators appropriate the economic benefits and encouraging its diffusion to enhance the social return to knowledge creation. Where firms operate in localities that are characterized by greater entrepreneurship, there may be lower incentives to engage in research and development. This would result from a higher risk of knowledge spillovers to local start-ups and/or that employees may exploit new knowledge in spin-out firms. It has also been suggested in the literature that greater local entrepreneurial activity may lower profits for incumbent firms, through greater competition and/or the leakage of commercially valuable new knowledge. This paper presents a novel conceptual perspective on this tension and empirically tests it. Using Swedish firmlevel data and county-level data on new start-ups, this paper estimates the effect on R&D activity of local rates of business start-ups. It finds that greater numbers of new start-ups in a metropolitan area reduces firm-level R&D expenditure. However, this relationship is not linear, so that at higher levels of new firm formation in a region, firm-level R&D expenditure falls at a diminishing rate. This suggests that the effect of local entrepreneurship on a business' R&D decisions is conditioned by the extent of that entrepreneurship.
    Keywords: Innovation,entrepreneurship,absorptive capacity,knowledge spillovers
    JEL: R11 O33 O31
    Date: 2018
  22. By: Seiffert, Sebastian
    Abstract: This paper addresses the question whether or not large-scale infrastructure investments have a causal effect of local economic development. By using a novel instrumental variable approach based on historical trade and travel routes across the Russian East, I am able to identify a causal and negative effect of remoteness to the Transsiberian Railway on local economic activity as measured by nocturnal lights emission.
    Keywords: Transport Costs,Railway,Russia,Nightlights,Regional Economics,Development
    JEL: O11 O18 R11 R40
    Date: 2019
  23. By: Francis Ostermeijer (Vrije Universiteit Amsterdam); Hans Koster (Vrije Universiteit Amsterdam, National Research University); Jos van Ommeren (Vrije Universiteit Amsterdam)
    Abstract: Residents are often offered on-street parking at a fraction of the market price which may cause excess car ownership. However, residential parking costs are difficult to observe, so we propose an approach to estimate implicit residential parking costs and then examine the effect of these costs on household car ownership. We apply our approach to the four largest metropolitan areas of the Netherlands. Our results indicate that for city centres, annual residential parking costs are around €1000, or roughly 17 percent of car ownership costs. Households facing a one standard deviation (€503) increase in annual parking costs own 0.085 fewer cars on average, corresponding to a price elasticity of car demand of about -0.7. We apply these estimates to gauge the impact of raising residential parking costs and the potential implications of automated vehicles.
    Keywords: Residential parking cost, car ownership, semi-parametric regression
    JEL: H23 R41 R48
  24. By: Prateek Bansal; Akanksha Sinha; Rubal Dua; Ricardo Daziano
    Abstract: Transportation Network Companies (TNCs) are changing the transportation ecosystem, but micro-decisions of drivers and users need to be better understood to assess the system-level impacts of TNCs. In this regard, we contribute to the literature by estimating a) individuals' preferences of being a rider, a driver, or a non-user of TNC services; b) preferences of ridehailing users for ridepooling; c) TNC drivers' choice to switch to vehicles with better fuel economy, and also d) the drivers' decision to buy, rent or lease new vehicles with driving for TNCs being a major consideration. Elicitation of drivers' preferences using a unique sample (N=11,902) of the U.S. population residing in TNC-served areas is the key feature of this study. The statistical analysis indicates that ridehailing services are mainly attracting personal vehicle users as riders, without substantially affecting demand for transit. Moreover, around 10% of ridehailing users reported postponing the purchase of a new car due to the availability of TNC services. The model estimation results indicate that the likelihood of being a TNC user increases with the increase in age for someone younger than 44 years, but the pattern is reversed post 44 years. This change in direction of the marginal effect of age is insightful as the previous studies have reported a negative association. We also find that postgraduate drivers who live in metropolitan regions are more likely to switch to fuel-efficient vehicles. These findings would inform transportation planners and TNCs in developing policies to improve the fuel economy of the fleet.
    Date: 2019–04
  25. By: Goodman, Joshua (Harvard Kennedy School); Gurantz, Oded (University of Missouri); Smith, Jonathan (Georgia State University)
    Abstract: Data on millions of SAT-takers show only half retake the exam, with even lower retake rates among low income and underrepresented minority students. Scoring below multiples of 100 increases retaking, implying some students have round number target scores. Regression discontinuity evidence finds retaking once improves admissions-relevant SAT scores by 0.3 standard deviations on average. Likely by strengthening college applications, retaking substantially increases four-year college enrollment, particularly for low income and underrepresented minority students. Eliminating disparities in retake rates could close up to 20 percent of the income gap and 10 percent of the racial gap in four-year college enrollment.
    JEL: I2 I20 I23 I24 J24
    Date: 2018–09
  26. By: Nicholas Warner (The Center for State and Local Finance, Georgia State University, USA)
    Abstract: Georgia’s equalization grant is intended to reduce the funding gap between high and low property wealth districts. Equalization accounts for a significant portion of Georgia’s appropriation for K-12 education for many low property wealth school systems, representing as much as 15 percent of their operating revenues. In general, the equalization grant has been successful in reducing wealth disparities, but in the wake of the Great Recession its efficacy has diminished. The first section of this report describes the basics of the grant calculation and summarizes policy changes that have affected it. The next section discusses the grant’s ability to close the funding gap between low and high property wealth districts. The third section analyzes how reliant districts have been on the equalization grant, measured as a share of total revenue. Next, legislative changes to the equalization grant calculation and their effect on funding levels are outlined, and the final section concludes the report.
    Date: 2019–04
  27. By: Alesina, Alberto (Harvard University); Carlana, Michela (Harvard Kennedy School); La Ferrara, Eliana (Bocconi University); Pinotti, Paolo (Bocconi University)
    Abstract: If individuals become aware of their stereotypes, do they change their behavior? We study this question in the context of teachers' bias in grading immigrants and native children in middle schools. Teachers give lower grades to immigrant students compared to natives who have the same performance on standardized, blindly-graded tests. We then relate differences in grading to teachers' stereotypes, elicited through an Implicit Association Test (IAT). We find that math teachers with stronger stereotypes give lower grades to immigrants compared to natives with the same performance. Literature teachers do not differentially grade immigrants based on their own stereotypes. Finally, we share teachers' own IAT score with them, randomizing the timing of disclosure around the date on which they assign term grades. All teachers informed of their stereotypes before term grading increase grades assigned to immigrants. Revealing stereotypes may be a powerful intervention to decrease discrimination, but it may also induce a reaction from individuals who were not acting in a biased way.
    JEL: I24 J15
    Date: 2018–11
  28. By: Hintermann, Beat (University of Basel); Armbruster, Stephanie (University of Basel)
    Abstract: We analyze the strategic interaction of regional and federal governments using a model that includes fiscal externalities in the form of inter-regional capital tax competition and technical externalities in the form of inter-regional spillovers. The federal government aims to correct for these inefficiencies using a transfer system. If the regional governments are policy leaders (such that federal policy is set conditional on regional choices), they will internalize both fiscal and technical externalities but free-ride on the transfer system. Efficiency can be achieved by introducing a second transfer scheme that is independent of regional public production. If the federal government sets its policy first and can commit itself to it, the outcome is efficient only if matching grants are used that are financed outside of the transfer system.
    Keywords: Fiscal federalism; tax competition; externalities; spillovers; commitment; centralized leader- ship; decentralized leadership
    JEL: H21 H40 H77 Q58
    Date: 2019–01–23
  29. By: Luis Ayala (Facultad de Ciencias Jurídicas y Sociales, Universidad Rey Juan Carlos, Spain); Ana Herrero (Facultad de Derecho, UNED, Spain); Jorge Martinez-Vazquez (International Center for Public Policy, Georgia State University, USA)
    Abstract: This paper analyzes the determinants of welfare benefit levels within a highly fiscally decentralized context. More specifically, we analyze the role of mimicking as a driver of the institutional design of subnational government policies in the absence of federal co-ordination and financing. Empirically we focus on the welfare benefit programs of Spanish regional governments during the period 1996-2015. Our results strongly support the significant role played by mimicking: regional public agents observe what their peers are doing and act accordingly, and this takes place even in a context of low mobility of households. Moreover, we find evidence of vertical externalities: even in a completely decentralized framework, regions consider the benefits set by the central government as a benchmark when determining their own welfare benefit levels.
    Date: 2019–04
  30. By: Ross Rubenstein (The Center for State and Local Finance, Georgia State University, USA); Nicholas Warner (The Center for State and Local Finance, Georgia State University, USA)
    Abstract: This paper examines a range of policy issues related to Georgia's special purpose local option sales tax for education (ESPLOST), including the distribution of revenues, and the relationship between the ESPLOST and school district debt and capital outlay needs. It begins by reviewing previous research on the Georgia ESPLOST specifically and alternative revenue sources for capital outlay more generally. It then examines the ESPLOST’s effect on school finance equity in Georgia over time. Next, the report discusses the relationship between school district debt and ESPLOST revenue. Analysis of changes in capital outlay over time follows, and a final section provides a summary and policy recommendations. An appendix describes the data sources for each analysis and the methods used to calculate the inequality measures.
    Date: 2019–04
  31. By: Karol J. Borowiecki (Department of Business and Economics, University of Southern Denmark, Odense, Denmark); Kathryn Graddy (Department of Economics, International Business School, Brandeis University)
    Abstract: In order to investigate the role of immigrant artists on the development of artistic clusters in U.S. cities, we use the U.S. Census and American Community Survey, collected every 10 years since 1850. We identify artists and art teachers, authors, musicians, and music teachers, actors and actresses, architects, and journalists, their geographical location and their status as a native or an immigrant. We look at the relative growth rate of the immigrant population in these occupations over a ten year period and how it affects the relative growth rate of native-born individuals in these artistic occupations. We find that cities that experienced immigrant artist inflows, also see a greater inflow of native artists by about 40%.
    Date: 2019–03
  32. By: Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); Nan Yu (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); David Hanrahan (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); Benedikt Schmuelling (Lehrstuhl für Elektromobilität und Energiespeichersysteme (EES), Bergische Universität Wuppertal); Heiko Fechtner (Lehrstuhl für Elektromobilität und Energiespeichersysteme (EES), Bergische Universität Wuppertal)
    Abstract: The analysis provides a hybrid techno-economic perspective on EU and China e-bus development dynamics. China is a leading global electric bus user – particularly in certain provinces. In Europe, the European Commission has started an electric bus initiative and several EU member countries have tried to achieve progress with regard to their own municipal e-bus fleets. While the economic analysis shows that e-bus innovation and diffusion dynamics can be influenced by government procurement policy, it is also obvious that certain pricing schemes in e-bus (mixed) municipal mobility networks are not successfully promoting clean e-bus expansion. A key issue is that various grant schemes depress the prices for used e-buses which in turn creates additional risk for e-bus leasing arrangements. Industrial policy aspects as well innovation policy face challenges in the e-bus context. China’s regional e-bus approaches have shown considerable success and part of China’s patent dynamics supports e-bus expansion perspectives. From a technological perspective, there are several alternative modes of e-bus mobility whose technological and economic advantages have to be explored in the context of the characteristics of local and regional bus routes. A very important technological element of e-mobility concerns technical aspects of battery charging – for example, cycle lifetime, power density, charging time and safety. The price dynamics of battery packs is rather high and should stimulate the expansion of e-bus mobility in Europe and China. One key problem faced by Europe and Asia is the challenge of common technical standards. As regards Germany’s and the UK’s position as a potential lead markets for e-bus mobility – or a similar positioning of a network of EU cities – much depends on adequate new policy initiatives. The emissions reductions which could be achieved by transitioning to 100% e-bus mobility in the EU would amount to an estimated 1.3% cut in terms of emissions of the transport sector (without aviation).
    Keywords: Sustainability, municipal transportation, e-bus, technology, EU, China
    JEL: N74 N75 Q55 Q56 R4
    Date: 2018–12
  33. By: Edward Ampratwum; Mohammed Awal; Franklin Oduro
    Abstract: Despite a series of reforms designed to improve the education system in Ghana, the quality of education remains low. This paper uses a political settlements analysis to explore why this is the case. Focusing on the issue of teacher accountability and performance, we argue that a key reform – decentralisation – remains a highly contested process. The current system generates insufficient incentives, from either a top-down or bottom-up direction, for effective forms of policy implementation and accountability to emerge at scale. In practice, educational quality differs significantly between districts. An explanation for the variation observed is the significant negative impact that intense party political competition can have in reducing the capacity of local actors to cooperate and to facilitate difficult reforms. The evidence suggests that improving educational quality depends on reform-minded coalitions made up of state and non-state actors at both district and school levels, and a stable political settlement at the district level. We conclude that where good practice is observed, it is as a result of efforts by these coalitions to devise and enforce local-level solutions to local problems.
    Date: 2018
  34. By: Machin, Stephen; McNally, Sandra; Viarengo, Martina
    Abstract: A significant number of people have very low levels of literacy in many OECD countries. This paper studies a national change in policy and practice in England that refocused the teaching of reading around "synthetic phonics." This was a low-cost intervention that targeted the pedagogy of existing teachers. We evaluate the pilot and first phase of the national rollout. While strong initial effects tend to fade out on average, they persist for those with children with a higher initial propensity to struggle with reading. As a result, this program helped narrow the gap between disadvantaged pupils and other groups.
    JEL: I21 I28
    Date: 2018–05–01
  35. By: Andrew Feltenstein (The Center for State and Local Finance, Georgia State University, USA); Mark Rider (The Center for State and Local Finance, Georgia State University, USA); David L. Sjoquist (The Center for State and Local Finance, Georgia State University, USA); John V. Winters (Iowa State University, USA)
    Abstract: This paper develop a computable general equilibrium (CGE) model and a microsimulation model (MSM) to analyze the economic and welfare effects of a Georgia propoerty tax proposal, which would have effectively eliminated school property taxes on homesteaded properties and replaced the lost revenue with a revenue-neutral increase in the state sales tax. Our CGE model, which is a modification of that used in Condon et al. (2015), explores the effects of significantly reducing or eliminating Georgia’s income tax and implementing a revenue-neutral increase in the state sales tax. This paper is set up as follows. We describe the Georgia proposal to reduce property taxes. Following that is a description of the CGE model, and a discussion of the outcomes of that model. The next section presents the MSM and its results. The last section concludes.
    Date: 2019–04
  36. By: Henrik Kleven; Camille Landais; Mathilde Muñoz; Stefanie Stantcheva
    Abstract: In this article, we review a growing empirical literature on the effects of personal taxation on the geographic mobility of people and discuss its policy implications. We start by laying out the empirical challenges that prevented progress in this area until recently, and then discuss how recent work have made use of new data sources and quasi-experimental approaches to credibly estimate migration responses. This body of work has shown that certain segments of the labor market, especially high-income workers and professions with little location-specific human capital, may be quite responsive to taxes in their location decisions. When considering the implications for tax policy design, we distinguish between uncoordinated and coordinated tax policy. We highlight the importance of recognizing that mobility elasticities are not exogenous, structural parameters. They can vary greatly depending on the population being analyzed, the size of the tax jurisdiction, the extent of tax policy coordination, and a range of non-tax policies. While migration responses add to the efficiency costs of redistributing income, we caution against over-using the recent evidence of (sizeable) mobility responses to taxes as an argument for less redistribution in a globalized world.
    JEL: H2 H21 H24 H26 H71
    Date: 2019–04
  37. By: Koop, Gary (University of Strathclyde); McIntyre, Stuart (University of Strathclyde); Mitchell, James (University of Warwick); Poon, Aubrey (University of Strathclyde)
    Abstract: Output growth estimates for the regions of the UK are currently published at the annual frequency only, released with a long delay and offer limited historical coverage. To improve the regional database this paper develops a mixed-frequency multivariate model and uses it to produce consistent estimates of quarterly regional output growth dating back to 1970. We describe how these estimates are updated and evaluated on an ongoing, quarterly basis to publish online (at more timely regional growth estimates. We illustrate how the new quarterly data can contribute to our historical understanding of business cycle dynamics and connectedness between regions.
    Keywords: Regional data; Mixed frequency; Temporal disaggregation; Nowcasting; Bayesian methods; Real-time data; Vector autoregressions; JEL Classification Numbers: C32 ; C51 ; C53; E37 ;
    Date: 2019
  38. By: Bogner, Kristina
    Abstract: Aiming at fostering the transition towards a sustainable knowledge-based Bioeconomy (SKBBE), the German Federal Government funds joint and single research projects in predefined socially desirable fields as, for instance, in the Bioeconomy. To analyse whether this policy intervention actually fosters cooperation and knowledge transfer as intended, researchers have to evaluate the network structure of the resulting R&D network on a regular basis. Using both descriptive statistics and social network analysis, I investigate how the publicly funded R&D network in the German Bioeconomy has developed over the last 30 years and how this development can be assessed from a knowledge diffusion point of view. This study shows that the R&D network in the German Bioeconomy has grown tremendously over time and thereby completely changed its initial structure. While from a traditional perspective the development of the network characteristics in isolation seems harmful to knowledge diffusion, taking into account the reasons for these changes shows a different picture. However, this might only hold for the diffusion of mere techno-economic knowledge. It is questionable whether the artificially generated network structure also is favourable for the diffusion of other types of knowledge, e.g. dedicated knowledge necessary for the transformation towards an SKBBE.
    Keywords: knowledge,dedicated knowledge,knowledge diffusion,social networks,R&D networks,Förderkatalog,sustainable knowledge-based Bioeconomy (SKBBE)
    Date: 2019
  39. By: Iman Cheratian (Tarbiat Modares University); Saleh Goltabar; Carla Daniela Calá
    Abstract: Given the importance of entry promotion to prompt economic growth and promote structural transformation, this paper investigates the regional determinants of firm entry in the 30 Iranian regions, considering four different sizes -micro, small, medium and large-over 2000-2015. Using a new and unique database, we estimate panel non-spatial and spatial lag and error dependence models. We find that regional factors explain firm entry, but the impact is not homogeneous across firms of different size. We also find that most types of firms are influenced by the negative effect of economic sanctions during the sample period.
    Date: 2019
  40. By: Matteo Gomellini; Cormac Ó Gráda
    Abstract: Emigrants from Italy and Ireland contributed disproportionately to the Age of Mass Migration. That their departure improved the living standards of those they left behind is hardly in doubt. Nevertheless, a voluminous literature on the selectivity of migrant flows— both from sending and receiving country perspectives—has given rise to claims that migration generates both ‘brain drains’ and ‘brain gains’. On the one hand, positive or negative selection among emigrants may affect the level of human capital in sending countries. On the other hand, the prospect of emigration and return migration may both spur investment in schooling in source countries. This essay describes the history of emigration from Italy and Ireland during the Age of Mass Migration from these perspectives.
    Keywords: Migration; Brain Drain; Brain Gain; Human Capital; Italy; Ireland
    JEL: F22 J61 N33 O15
    Date: 2019–03
  41. By: Laura Wheeler (The Center for State and Local Finance, Georgia State University, USA); Per Johnson (The Center for State and Local Finance, Georgia State University, USA)
    Abstract: Tax expenditures are provisions in the tax code that allow for special treatment of some properties or a certain type of expense when computing the tax liability. Policymakers use tax expenditures as incentives for economic development or to provide tax relief to taxpayers, among many other reasons. A local tax expenditure report improves fiscal transparency by allowing local governments and policymakers to better understand the localized revenue effects of these tax provisions and to consider them during the budget-making process. The aim of this “how to” document is to assist local governments who choose to prepare a tax expenditure report themselves by providing them the practical resources and example methods to begin the process. Therefore, this document gives a general overview and theoretical background for preparing a local tax expenditure report with specific and practical examples drawn from the preparation of a local tax expenditure report for Fulton County, Georgia.
    Date: 2019–02
  42. By: Ruffini, Krista
    Keywords: Education, Social and Behavioral Sciences, School meals, student achievement
    Date: 2018–10–25
  43. By: Dominguez, Patricio; Ruffini, Krista
    Abstract: This paper examines whether additional time in school affects labor market outcomes and educational attainment in adulthood. We leverage within and across city and cohort variation covering a large-scale reform that increased the Chilean elementary and secondary school day by 30 percent between 1997 and 2010. Exposure to full-day school increases educational attainment and earnings when students are in their 20s and 30s. In addition, we find evidence of delayed childbearing among women, and some occupational upskilling. These labor market effects are not concentrated in any particular subgroup, but are widespread throughout the population. JEL classification: I26; I25; J24; H52
    Keywords: Education, Social and Behavioral Sciences
    Date: 2018–10–25
  44. By: Eric Chyn; Samantha Gold; Justine S. Hastings
    Abstract: We use comprehensive administrative data from Rhode Island to measure the impact of early-life interventions for low birth weight newborns on later-life outcomes. We use a regression discontinuity design based on the 1,500-gram threshold for Very Low Birth Weight (VLBW) status. We show that threshold crossing causes more intense in-hospital care, in line with prior studies. Threshold crossing also causes a 0.34 standard deviation increase in test scores in elementary and middle school, a 17.1 percentage point increase in the probability of college enrollment, and $66,997 decrease in social program expenditures by age 14. We explore potential mechanisms driving these impacts.
    JEL: H53 I1 I12 I14 I18 I21 I24 J13
    Date: 2019–04
  45. By: L. (Lisa B.) Ryan; Andrew J. Kelly; Ivan Petrov; Yulu Guo; Sarah La Monaca
    Abstract: Building on COM/ENV/EPOC/CTPA/CFA/RD(2018)1, this document presents a social cost-benefit analysis of reforms in the motor vehicle taxes in Ireland since 2008.
    Keywords: Social cost-benefit analysis; Reforms in motor vehicle taxes; Ireland
    Date: 2018–11
  46. By: Bratsberg, Bernt; Moxnes, Andreas; Raaum, Oddbjørn; Ulltveit-Moe, Karen-Helene
    Abstract: This paper investigates the impact of a large shock to labor supply from immigration on occupational wages, labor costs and industry growth. We develop a simple factor-proportions theory where individuals sort into occupations, and industries use occupations with different factor intensities. The model delivers an empirical framework and testable hypotheses that we confront with a rich data set on industry performance, occupational characteristics and immigration. We apply the methodology to one of the largest labor immigration shocks of the 21th century: The immigration wave to Norway after the Eastern enlargement of the European Union. We introduce a novel instrument that exploits the fact that the language requirements are significant barriers for foreign workers and these requirements vary across occupations. The results point to labor migration leading to large adjustments in relative industry employment, labor costs and wages, and these effects are particularly strong in industries that are initially intensive in the use of immigrant occupations. Finally, a quantification of the general equilibrium of our model shows that the welfare effect of immigration was close to zero for natives, but negative for the existing population of immigrants.
    Keywords: Eastern enlargement; Immigration; Industry Adjustments
    JEL: F22 J61
    Date: 2019–04
  47. By: Sundar Burra; Diana Mitlin; Gayatri Menon; Indu Agarwal; Preeti Banarse; Sharmila Gimonkar; Maria Lobo; Sheela Patel; Vinodkumar Rao; Monali Waghmare
    Abstract: The Basic Services for the Urban Poor (BSUP) sub-Mission of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) sought to address the needs of some of the lowest-income and most vulnerable urban dwellers in Indian cities. The promise was that these residents would receive ‘a garland of 7 entitlements’ – security of tenure, affordable housing, water, sanitation, health, education and social security in low-income settlements in the 63 Mission cities. We researched the outcomes of the BSUP in five Indian cities (Bhopal, Bhubaneswar, Patna, Pune and Visakhapatnam), which were selected because of their diversity. They presented a wide range of socio-economic contexts and economic development and also differed in the nature and extent of civil society involvement in BSUP programming. The research findings analysed outcomes of the BSUP interventions and addressed the significance of State capacities, commitments and vision for urban development for these outcomes. The analysis then considered the ‘drivers of capacity, commitment and vision’. The vision (or idea) of urban development emerged as a significant indicator of outcomes. In practice, the BSUP became a housing programme. The extent to which informal settlement upgrading was preferred over resettlement and site redevelopment with the construction of medium-rise apartments made a significant difference to the satisfaction of residents. Also important, and particularly exemplified by experiences in Pune, was willingness to work with civil society organisations, incorporating their expertise and skills. However, these were not present in all cities. Residents in Bhopal and Visakhapatnam may face particular affordability challenges due to high levels of debt incurred through participation in the BSUP. In summary, BSUP experiences and outcomes provide evidence of the significance of vision capacity and commitment. While in part these are determined by levels of economic and institutional development, they are also influenced by government willingness to collaborate with civil society agencies with appropriate experiences and skills.
    Date: 2018
  48. By: Han, Jaepil (Korea Development Institute); Sickles, Robin C. (Rice U)
    Abstract: We examine aggregate productivity in the presence of inter-sectoral linkages. Cross-sectional dependence is inevitable among industries, in which each sector serves as a supplier to the other sectors. However, the chains of such interconnections cause indirect relationship among industries. Spatial analysis is one of the approaches to address cross-sectional dependence by using a priori a specified spatial weights matrix. We exploit the linkage patterns from the input-output tables and use them to assign spatial weights to describe the economic interdependencies. By using the spatial weights matrix, we can estimate the industry-level production functions and productivity of the U.S. from 1947 to 2010. Cross-sectional dependencies are the consequences of indirect effects, and they reflect the interactions among industries linked via their supply chain networks result in larger output elasticities as well as scale effects for the networked production processes. However, productivity growth estimates are reportedly comparable across various spatial and non-spatial model specications.
    JEL: C21 C23 C51 O47 R15
    Date: 2019–01
  49. By: André Gröger
    Abstract: This article investigates the impact of negative income shocks in migrant destination countries around the world on the domestic and international labor migration decisions of their family members left behind at origin. Exploiting differences in labor market shocks across and within destinations during the Great Recession, I find large and heterogeneous effects on both types of migration decisions. High remittance-dependent households reduced domestic and increased international labor migration in response to the shock. Low dependence ones remained largely unaffected. I provide a theoretical framework, which rationalizes this heterogeneity by the relative magnitudes of income and substitution effects caused by the shock. The results imply a deterioration in the skill selection of aggregate international migrant flows as high dependence households had below average skill levels. New international migrants targeted the same destinations as established ones from the same household, providing evidence of strong kinship migration networks. The results show that domestic and foreign migration decisions are interrelated and jointly determine aggregate migration flows.
    Keywords: international migration, domestic migration, migration selection, unemployment, Vietnam
    JEL: F22 J61 O15 R23
    Date: 2019–04
  50. By: Eliason, Marcus; Hensvik, Lena; Kramarz, Francis; Nordstrom Skans, Oskar
    Abstract: The literature on social networks often presumes that job search through (strong) social ties leads to increased inequality by providing privileged individuals with access to more attractive labor market opportunities. We assess this presumption in the context of sorting between AKM-style person and establishment fixed effects. Our rich Swedish register data allow us to measure connections between agents - workers to workers and workers to firms - through parents, children, siblings, spouses, former co-workers and classmates from high school/college, and current neighbors. In clear contrast with the above presumption, there is less sorting inequality among the workers hired through social networks. This outcome results from opposing factors. On the one hand, reinforcing positive sorting, high wage job seekers are shown to have social connections to high-wage workers, and therefore to high-wage firms (because of sorting of workers over firms). Furthermore, connections have a causal impact on the allocation of workers across workplaces â?? employers are much more likely to hire displaced workers to whom they are connected through their employees, in particular if their social ties are strong. On the other hand, attenuating positive sorting, the (causal) impact is much stronger for low-wage firms than it is for high-wage firms, irrespective of the type of worker involved, even conditional on worker fixed effects. The lower degree of sorting among connected hires thus arises because low-wage firms use their (relatively few) connections to high-wage workers to hire workers of a type that they are unable to attract through market channels.
    Keywords: Hiring; Job Displacement; job search; networks
    JEL: J23 J30 J60
    Date: 2019–04
  51. By: Gugl, Elisabeth (U of Victoria); Zodrow, George R. (Rice U and Centre for Business Taxation, Oxford U)
    Abstract: We construct a tax competition model in which local governments finance business public services with either a source-based tax on mobile capital, such as a property tax, or a tax on production, such as an origin-based Value Added Tax, and then assess which of the two tax instruments is more efficient. Many taxes on business apply to mobile inputs or outputs, such as property taxes, retail sales taxes, and destination-based VATs, and their inefficiency has been examined in the literature; however, proposals from several prominent tax experts to utilize a local origin-based VAT have not been analyzed theoretically. Our primary finding is that the production tax is less inefficient than the capital tax under many--but not all--conditions. The intuition underlying this result is that the efficiency of a user fee on the public business input is roughly approximated by a production tax, which applies to both the public input and immobile labor (in addition to mobile capital). In marked contrast, the capital tax applies only to mobile capital and is thus likely to be relatively inefficient.
    Date: 2019
  52. By: Mealy, Penny (Oxford University); Farmer, J. Doyne (Oxford University); Hausmann, Ricardo (Harvard Kennedy School)
    Abstract: Understanding the differences between rich and poor places is complicated by the fact that places differ from each other in numerous ways. In this paper, we show how a dimension reduction algorithm can unveil hidden patterns in US census data and consistently yield useful insights into the type of economic activities that separate rich and poor states over 160 years of development history. Moreover, we find this approach has a unique ability to shed light on the dynamics of evolving landscapes and changes in relevance of particular types of activities, such as the shift from manufacturing to high skill services that occurred in the US over the last 40 years. Our results have important implications for the decline of the rustbelt and the reversal of US regional income convergence from 1980 onwards.
    Date: 2018–09
  53. By: Isaksson, Ann-Sofie (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: Recent empirical evidence suggests that Chinese development finance may be particularly prone to elite capture and patronage spending. If aid ends up in the pockets of political elites and their ethno-regional networks, this may exacerbate grievances based in horizontal inequalities. Against this background, the present study investigates whether the implementation of Chinese development projects fuels local ethnic identities. A new geo-referenced dataset on the subnational allocation of Chinese development finance projects to Africa over the 2000-2014 period is geographically matched with survey data for 94,954 respondents from 18 African countries. The identification strategy consists in comparing sites where a Chinese project was under implementation at the time of the interview, to sites where a Chinese project will appear subsequently but where implementation had not yet started at the time of the survey. While suggesting substantial country variation, the empirical results indeed suggest that, on average, living near an ongoing Chinese project fuels ethnic identification. I consider two mechanisms possibly underlying this result. First, competition for the inflow of resources that aid constitutes could mobilize ethnic identities across the board. Second, perceptions of ethnically biased aid may fuel ethnic identities in groups perceiving themselves as disadvantaged. Two observations speak in favour of the latter mechanism. First, the estimated effect is not uniform across groups, but driven by people belonging to the out-group. Second, there is no indication of an equivalent pattern when considering development projects of other donors. Replicating the key analysis for World Bank projects as well as for other bilateral donors, the results in fact indicate the reverse, i.e. that living near an ongoing as opposed to a future project comes with weaker ethnic identification.
    Keywords: China; aid; ethnic identities; Africa
    JEL: F35 O19 O55
    Date: 2019–04
  54. By: Alfano, Vincenzo; D'Uva, Marcella; De Simone, Elina; Gaeta, Giuseppe Lucio
    Abstract: Finding a non-academic job in line with both doctoral graduates’ degree and acquired know-how can be difficult because of insufficient demand for R&D skills in public administration and private enterprise and/or because of the lack of matching between the existing demand and the Ph.D. holders’ specialization. The aim of this paper is to test whether migrating from some regions may improve job-education matching in Italy. The econometric strategy takes into account Ph.D. holders’ selfselection into non-academic employment as well as the endogeneity of the migration choice. Results demonstrate that migration seems to facilitate the possibility of finding better job opportunities. More specifically, only migration within the regions of the centre and north of Italy seems to improve jobeducation matching.
    Keywords: Ph.D. holders,job-education mismatch,migration
    JEL: J61 J24
    Date: 2019
  55. By: Paul Jackson; Florian Madison
    Abstract: We model entrepreneurial finance using a combination of fiat money, traditional bank loans, and home equity loans. The banking sector is over-the- counter, where bargaining determines the pass-through from the nominal interest rate to the bank lending rate, characterizing the transmission channel of monetary policy. The results show that the strength of this channel depends on the combination of nominal and real assets used to finance investments, and thus declines in the extent to which housing is accepted as collateral. A calibration to the U.S. economy supports the theoretical results and provides novel insights on entrepreneurial finance between 2000 and 2016.
    Keywords: Entrepreneurial finance, money, housing, collateral, monetary policy
    JEL: E22 E40 E52 G31 R31
    Date: 2019–04

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