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on Urban and Real Estate Economics |
| By: | Charles Ka Yui Leung |
| Abstract: | Since K-12 education is provided locally in the U.S., housing policy and education policy are inevitably tied together. To deepen our understanding of this institution, we build a spatial equilibrium model where the peer group effect and local public finance play essential roles. Our model is calibrated to matches several stylized facts of the labor market and housing market. Also, our counter-factual policy analyses yield new results. First, the location of public housing units (PHU) is crucial to the welfare implications of the policy. Second, even when public housing policy (PHP) and housing voucher (VC) program deliver similar results at the household level, PHP tends to benefit the offspring more, while VC is the reverse. Third, combining school finance consolidation (SFC) policy with PHP can outperform single-policy regimes, even lead to a Pareto improvement. Welfare results in the short and long run can differ significantly. |
| Keywords: | endogenous sorting mechanism; housing voucher; Public Housing; school finance consolidation; short-run rigidity versus long-run flexibility |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_21&r=all |
| By: | Franz Fuerst; Georgia Warren-Myers |
| Abstract: | This study examines the economic effects of voluntary commitments to a more sustainable individual lifestyle. In particular, it investigates the crucial nexus between environmental factors and health and well-being outcomes. It promises to generate important insights into this multi-faceted relationship by focussing on a hitherto understudied topic, i.e. whether the housing market and particularly the spatial variation in house prices may play a decisive mediating role for the quality of the surrounding built and natural environment. This project seeks to enhance our understanding of the relationship between individual environmental attitudes and economic outcomes but also to inform policies in the public health, urban planning and local economic development arenas. |
| Keywords: | House Prices; Panel Data Analysis; Public Health; sustainable lifestyles |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_328&r=all |
| By: | Elliot Anenberg; Daniel Ringo |
| Abstract: | The presence of incumbent homeowners creates a friction in housing markets, as incumbents may wait to match with a buyer for their current home before buying their next home. Exploiting a shock to housing demand caused by the 2015 surprise cut in Federal Housing Administration mortgage insurance premiums, we find that homeowners buy their next home sooner when the probability of their current home selling increases. This effect is especially pronounced in cold housing markets, in which homes take a long time to sell. We build and calibrate a model of the joint buyer-seller decision that explains these findings as a result of homeowners avoiding the cost of owning two homes simultaneously. Simulations of the model demonstrate that stimulus to home buying generates a substantial multiplier effect in cold housing markets by freeing up owners attempting to sell their current home, allowing them to re-enter the market as buyers. |
| Keywords: | homeowners; Housing demand; Multipliers; Search frictions; Stimulus |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_143&r=all |
| By: | Andrés Barrios Fernandez |
| Abstract: | This paper investigates whether the decision to attend university depends on university enrollment of close neighbors. I create a unique dataset combining detailed geographic information and educational records from different public agencies in Chile, and exploit the quasi-random variation generated by the rules that determine eligibility for student loans. I find that close neighbors have a large and significant impact on university enrollment of younger applicants. Potential applicants are around 11 percentage points more likely to attend university if a close neighbor enrolled the year before. This effect is particularly strong in areas with low exposure to university and among individuals who are more likely to interact; the effect decreases both with geographic and social distance and is weaker for individuals who have spent less time in the neighborhood. I also show that the increase in university attendance translates into retention and university completion. These effects are mediated by an increase in applications rather than by an improvement on applicants' academic performance. This set of results suggests that policies that expand access to university generate positive spillovers on close peers of the direct beneficiaries. |
| Keywords: | Neighbors’ effects, university access, spatial spillovers |
| JEL: | I21 I24 R23 R28 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1653&r=all |
| By: | Hans Vrensen; Irene Fosse |
| Abstract: | Loan margins should reflect the risks lenders are willing to accept on the commercial real estate loans they make. Also, having a large scale, stable and low cost funding channel through covered bond issuance or syndication should benefit commercial real estate lenders in providing lower margin lending to borrowers and compete for a larger market share. This study addresses what drives lenders’ loan margins offered on a range of different European commercial real estate loans. Using internal commercial mortgage loan data over the 2012-2018 period substituted with additional data from external sources, we test several possible drivers for loan pricing, such as country risk, collateral risk, borrower business plan and lenders funding costs. With our analysis we try to show that commercial real estate lenders with large covered bond funding programs offer margins that are on average below other lenders, ceteris paribus. |
| Keywords: | Asset Pricing; Commercial real estate lending; Loan Pricing; Wholesale funding |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_74&r=all |
| By: | Pierre Vidal |
| Abstract: | Using internet users activity record on a real estate web platform I measure, quarterly, housing market tightness for more than 250 cities of the Paris area, over a four years period. An upward sloping Beveridge curve linking vacancy and demand rate is observed both across locations and over time. Applying a random matching model, this measure of the market tightness is compared with volumes and prices dynamics. In line with the theory, I find a positive, statistically significant, impact of the buyer-seller ratio on both rotation rate and price variation. |
| Keywords: | Internet; market tightness; Matching; real estate; Search |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_33&r=all |
| By: | Norbert Pfeifer |
| Abstract: | The validation of house price value remains a critical task for scientific research as well as for practitioners. The following paper investigates this challenge by integrating textual-based information contained in real estate descriptions. More specifically, we show different approaches surrounding how to integrate verbal descriptions from real estate advertisements in an automated valuation model. By using Airbnb listing data, we address the proposed methods against a traditional hedonic-based approach, where we show that a neural network-based prediction model—featuring only information from verbal descriptions—are able to outperform a traditional hedonic-based model estimated with physical attributes, such as bathrooms or/and bedrooms. We also draw attention to techniques that allow for interrelations between physical, locational, and qualitative, text-based attributes. The results strongly suggest the integration of textual information, specifically modelled in a 2-stage model architecture in which the first model (recurrent long short-term memory network) outputs a probability distribution over price classifications, which is then used along with quantitative measurements in a stacked feed-forward neural network. |
| Keywords: | AVM; housing; Neural Network; NLP |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_329&r=all |
| By: | Amine Ouazad; Matthew E. Kahn |
| Abstract: | Recent evidence suggests an increasing risk of natural disasters of the magnitude of hurricane Katrina and Sandy. Concurrently, the number and volume of flood insurance policies has been declining since 2008. Hence, households who have purchased a house in coastal areas may be at increasing risk of defaulting on their mortgage. Commercial banks have the ability to screen and price mortgages for flood risk. Banks also retain the option to securitize some of these loans. In particular, bank lenders may have an incentive to sell their worse flood risk to the two main agency securitizers, the Federal National Mortgage Association, commonly known as Fannie Mae, and the Federal Home Loan Mortgage Corporation, known as Freddie Mac. In contrast with commercial banks, Fannie and Freddie follow observable rules set by the FHFA for the purchase and the pricing of securitized mortgages. This paper uses the impact of one such sharp rule, the conforming loan limit, on securitization volumes. We estimate whether lenders’ sales of mortgages with loan amounts right below the conforming loan limit increase significantly after a natural disaster that caused more than a billion dollar in damages. Results suggest a substantial increase in securitization activity in years following such a billion-dollar disaster. Such increase is larger in neighborhoods for which such a disaster is “new news”, i.e. does not have a long history of hurricanes. Conforming loans are riskier in dimensions not observed in publicly available data sets: the borrowers have lower credit scores and they are more likely to become delinquent or default. A structurally estimated model of mortgage pricing with asymmetric information suggests that bunching at the conforming loan limit is an increasing function of perceived price volatility and declining price trends. A simulation of the impact of increasing climate risk on mortgage origination volumes with and without the GSEs suggests that the GSEs may act as an implicit insurer, i.e a substitute for the declining National Flood Insurance Program. |
| JEL: | G21 Q54 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26322&r=all |
| By: | Holger Lischke |
| Abstract: | Urban development funding implies improvement of the set development area. The analysis of Stephankiez in Berlin-Moabit and several reference areas shows a connection between formulated goals of applied funding programs and the four forms of improvement. Especially structural improvement leads to a improved residential environment. Most funding progams don’t imply building of new flats. As evident through rent analysis this leads to a higher demand for space in the funding area combinded with rising quoted rents. This doctoral thesis is embedded in the field of urban economics and acts between real estate economics and urban planning. The analysis strives to point out the impact of urban development funding on quoted rents in residential housing. Especially for social preservation areas in accordance to German law (§ 172 BauGB). An urban district in Germany, the Stephankiez in Berlin-Moabit acts as an example. The Stephankiez as a former social preservation area is surrounded by several urban development programs. |
| Keywords: | Berlin; quoted rent; rent analysis; urban development funding; Urban Economics |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_60&r=all |
| By: | Patrick Lecomte |
| Abstract: | As smart technologies are becoming increasingly prevalent in the built environment (e.g., smart cities, smart buildings), this paper explores the concept of space user in smart urban environments. Scaffolding on Lecomte (Eres 2018), the paper investigates the impact of digital technologies on the way humans engage with their physical surroundings. The paper concludes by laying out the fundamental principles for a phenomenology of space in smart real estate, as a necessary step towards the modelling of commercial real estate in smart cities. |
| Keywords: | commercial real estate; Digital Technologies; Phenomenology; Real estate analysis; Smart Cities |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_50&r=all |
| By: | Mark Burke; Franz Fuerst |
| Abstract: | There has been ample research conducted on income and education, as well as income and health outcomes. However, little or no analysis has been done on housing participation and health and well-being outcomes through This paper addresses whether home ownership participation lead to improved social outcomes. It presents an analysis of the causal impact of home ownership on self reported measures of health, mental state and life satisfaction. While intuitively higher house values could be correlated with better income which in turn could be correlated with better housing, this paper explores whether there is a causal influence between the structure of housing, home equity and social outcomes. |
| Keywords: | housing; Social attitudes; Wellbeing |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_344&r=all |
| By: | Paola Amoruso; Massimo Mariani |
| Abstract: | The present work focuses on the considerable amount of real estate non-performing loans in Italy, not favored by the state of judicial proceedings. In this view various governmental initiatives intended to facilitate a more efficient liquidation of underlying real estate assets. In this regard, it could be useful better understand main causes of discount between market value and forced sale price with the primary aim of a more comprehensive determination of the value of mortgages ‘underlying guarantees and not least in order to improve further valorization processes of assets intended to get a higher selling price; starting from results of existing literature, an analysis of main determinants of the gap between the estimated listing price and forced sale value has been conducted, sampling 225 cases of forced residential property sales between 2014 and 2018 in the South of Italy. |
| Keywords: | discount between market value and forced sale price; forced sale value; Italian auction market; Market Value; real estate non-performing loans |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_91&r=all |
| By: | Marcelo Cajias |
| Abstract: | Initial yields are used by institutional investors and investment managers to assess the pricing conditions of real estate markets. In contrast to commercial real estate, initial yields in the residential sector are hard to quantify, especially due to the lack of comparables. In the era of digitalisation and big data residential assets are mostly brought to the market via digital multiple listing systems. The paper develops semiparametric hedonic models for extracting the implicit information to calculate residential net initial yields for both a buy-to-hold and rental investment strategy based on more than 3 million observations. The results are robust and confirm that the pricing conditions of residential markets are captured by the hedonic approach, enhancing the transparency in real estate markets. |
| Keywords: | Big data; buy or rent; German residential; Net initial yields; semiparametric regression |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_155&r=all |
| By: | Veronika Püschel; Johannes Strobel |
| Abstract: | Even after the end of the recent Great Recession period, U.S. housing prices and real estate loans continued to decline, while theuncertainty associated with the housing market remained elevated. This paper shows that an increase in uncertainty with respect to housing demand, i.e. a time-varying second moment of housing preferences, generates these dynamics and implies adverse effectsfor key macroeconomic aggregates such as output and consumption: An increase in housing preference volatility dampens housing prices which reduces the collateral value, borrowing activity and translates to a decrease in aggregate economic activity. Finally, wefind these results to be broadly in line with the data. |
| Keywords: | Demand; housing market; time-varying uncertainty shocks |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_213&r=all |
| By: | Marcelo Cajias |
| Abstract: | In the era of internet and digitalization real estate prices of dwellings are predominantly collected live by multiple listing services and merged with supporting data such as spatio-temporal geo-information. Despite the computational requirements for analyzing such large datasets, the methods for analyzing big data have evolved substantially and go much far beyond the traditional regression. In this context, the usage of machine learning technologies for analyzing prices in the real estate industry is not commonplace. This paper applies machine learnings algorithms on a data set of more than 3 Mio. observations in the German residential market to explore the predicting accuracy of methods such as the random forests regressions, XGboost and the stacked regression among others. The results show a significant reduction in the forecasting variance and confirm that artificial intelligence understands real estate prices much deeper. |
| Keywords: | Big Data in real estate; German housing; Machine learning Algorithms; Random forest; XGBoost |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_232&r=all |
| By: | Maxence Valentin |
| Abstract: | Municipalities across the world have regulated the short-term rental (STR) market in the recent years with however little comprehensive research on the effects of these regulations. This study exploits the enactment of regulations targeting Airbnb and other STR suppliers in New Orleans to identify its effects on market participants' behavior and housing value. I show that although new regulations reduced participation in the STR market as intended, STR usage increased in the neighborhoods adjacent to the properties the most affected by the amendments. I subsequently show that the new regulations depressed property values within the neighborhoods facing the tightest regulations implying that homeowners factor the option to participate in the STR market into their housing purchasing decision. |
| Keywords: | policy analysis; Property right; Sharing Economy; Short-term rental market |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_94&r=all |
| By: | Marcelo Cajias; Jonas Willwersch; Felix Lorenz |
| Abstract: | Real estate transactions can be seen as a spatial point pattern over space and time. That means, that real estate transactions occur in places where at a certain point of time certain characteristics are given that lead to an investment decision. While the decision-making process by investors is impossible to capture, this paper applies new methods for capturing the conditions under which real estate transactions are made over space and time. In other words, we explain and forecast real estate transactions with machine learning methods including both real estate transactions, geographical information and most importantly microeconomic data. |
| Keywords: | Machine Learning; Point pattern analysis; Real estate transactions; Spatial-temporal analysis; Surveillance analysis |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_171&r=all |
| By: | Mark Burke; Franz Fuerst |
| Abstract: | Within the realm of affordable housing development, the time intensity and extent of utilisation of housing units is under-explored. While utilisation should intuitively contribute to housing value, current measures of density cannot provide indicators of utilisation dynamically and is often susceptible to inaccurate or misleading representations. The aim of this research paper will be to propose a number of additional indicators to explain utilisation of housing units, areas and neighbourhoods. The assumption of this research question is that properly utilised housing units would indicate value derived and that more accurate utilisation metrics can be constructed. To this end, the analysis conducted has used new methods of analysing utilisation in the form of data consumption at a neighbourhood and grid level as well as movement data from smartphone applications as additional inputs in house value estimation. |
| Keywords: | Affordable; Data; housing; Utilisation |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_343&r=all |
| By: | Hsiu-Yin Ding |
| Abstract: | Land readjustment is a tool for land assembly so as to provide buildable land and infrastructures for urban development. After land readjustment, it is supposed that lots of land will be supplied to the land market, and this might lead to mitigate the shortage of land supply and speed urban development in peri-urban area. However, most pieces of land are returned to landowners, who decide to supply the land or not. In this paper, if landowners either sell or develop their land after land readjustment immediately is going to be examined. Moreover, how land readjustment affects the land price will be analyzed as well. The case of Tucheng land readjustment project in New Taipei City will be studied for answering these two questions. |
| Keywords: | Land assembly; land price; Land Readjustment |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_165&r=all |
| By: | Tzu-Chia Chang |
| Abstract: | Taiwan’s governments used to motivate supplies to fit the expected increasing demands for senior housing, since the elders’ share of population was 7% in 1993. However, the vacant rate was still high in budget senior housing whereas the demand for high-price dwelling has been fulfilled by private sectors during these two decades. It indicates that market segmentation is necessary, based on the heterogeneity among elders. In this study, lifestyle characteristics are introduced as a basis for segmentation in senior housing market. And I intend to figure out product combination for targeted elderly segment as well. Factor analysis and cluster analysis were employed to illustrate lifestyle and demographic characteristics of elders in each segment. And ANOVA tests were performed to reveal the differential preferences for housing facilities and services among elderly segments. The results show significant diversified preferences among elders, and suggest closer consideration of elders’ lifestyles when creating and promoting senior housing services. |
| Keywords: | facilities and services; lifestyle; Market Segmentation; Senior Housing |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_81&r=all |
| By: | Nuno Paixao (Bank of Canada) |
| Abstract: | This paper analyzes the propagation of house price shocks through the U.S. banking system. Although only roughly 30 percent of the mortgages that originated between 2000 and 2005 were retained on the banks' balance sheets, I find empirical evidence that exogenous negative house price shocks impacted the banks' balance sheets. Between 2006 and 2010, banks that faced a larger drop in their capital-to-assets ratio induced by exogenous house price shocks contracted the supply of new mortgages by more. Besides the propagation of house price shocks through the banks' balance sheets, the same shocks are also propagated across regions since more affected banks contract the credit supply even in areas where economic conditions didn't deteriorate. The drop in the credit supply by the banking system was attenuated by the presence of shadow banks, which face less strict regulatory constraints. The overall credit supply for new home purchases contracted by 5 percent more in counties with a higher presence of distressed banks (10th percentile) than in counties with a lower presence of affected banks (90th percentile). In terms of refinancing loans, the contraction is 12 percent higher in the most affected counties. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1237&r=all |
| By: | Masatomo Suzuki; Chihiro Shimizu |
| Abstract: | In the rental housing market, housing rents for new tenants are determined from the fact that adjusting rents is quite difficult while tenants occupy the units even at the time of contract renewal. Using the unique unit-level monthly panel of rental apartments in Tokyo through 1996–2017, we find the downward-sloping term structure reflecting rapid structure depreciation: the longer expected tenancy duration of the unit leads to the lower premium of the new rents compared to the market level. The degree of downward slopes reflects the expectation of future rent flows: the degree is remarkable during 2012–2014, especially in the rental units for singles. We also find that, when we do not control for the duration of tenants’ residence, the index for newly contracted rents may exhibit downward bias corresponding to the degree of the downward term structure and contain time lags when the market bottoms out. |
| Keywords: | Housing rents; Price rigidity; Rent Index; Rental contract; Term structure |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_298&r=all |
| By: | Carlos Garriga (Federal Reserve Bank of St. Louis); Athena Tsouderou (IE Business School); Pedro Gete (IE Business School) |
| Abstract: | This paper documents the arrival of institutional investors in the U.S. housing market and studies their dynamic real effects. Using an instrumental variable approach we show that investors initially caused increases in housing prices and rents, mostly in bottom tier and single-family segments of the market. Investors brought liquidity and stimulated construction causing decreases in prices and rents over time. Thus, investors initially lowered housing affordability to later increase it. We also uncover a new fact post-financial crisis: housing prices have decoupled from homeownership in most MSAs in the U.S., as in many advanced economies. The presence of investors decouples housing dynamics from homeownership. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1407&r=all |
| By: | Stefano Corradin (European Central Bank); Carles Vergara-Alert (IESE Business School); Jose Fillat (Federal Reserve Bank of Boston) |
| Abstract: | Households systematically overvalue or undervalue their houses. We compute house value misperception as the difference between self-reported and market house values. Misperception is sizable, countercyclical, and persistent. We find that a 1 percent increase in house overvaluation results in a 4.56 percent decrease in the share of risky stock holdings for those households that participate in the stock market. We then build a rational inattention model in which households make decisions based on their perceived level of housing wealth. Numerical simulations generate the effects of house value misperception on the portfolio choices that we observe in the data. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1247&r=all |
| By: | Si Guo (International Monetary Fund); Yun Pei (University at Buffalo, SUNY); Zoe Xie (Federal Reserve Bank of Atlanta) |
| Abstract: | We build an infinite horizon equilibrium model of fiscal federation, where anticipation of transfers from the central government creates incentives for local governments to overborrow. Absent commitment, the central government over-transfers, which distorts the central-local distribution of resources. Applying the model to fiscal decentralization, we find when decentralization widens local government’s fiscal gap, borrowings by both local and central governments rise. Quantitatively, fiscal decentralization accounts for 19–40% of changes in general government debt in Spain during 1988–2006. A macroprudential tax on local borrowing that implements Pareto optimal allocation would reduce debt by 27% and raise welfare by 3.75%. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1229&r=all |
| By: | Matthew E. Kahn; Joseph Tracy |
| Abstract: | An emerging labor economics literature studies the consequences of firms exercising market power in local labor markets. These monopsony models have implications for trends in earnings inequality. The extent of this market power is likely to vary across local labor markets. In choosing what market to live and work in, workers tradeoff wages, rents and local amenities. Building on the Rosen/Roback spatial equilibrium model, we investigate how the existence of local monopsony power affects the cross-sectional spatial distribution of wages and rents across cities. We find an employment-weighted elasticity of land prices to concentration of –0.034—similar to Rinz (2018) reported elasticity of compensation to concentration. This finding has implications for who bears the economic incidence of labor market power. We present two extensions of the model focusing on the role of migration costs and worker skill heterogeneity. |
| JEL: | J3 R23 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26295&r=all |
| By: | Martijn Droes; Martin Hoesli; Steven C. Bourassa |
| Abstract: | This paper explores Rosen’s (1974) suggestion that within the hedonic framework there are natural tendencies toward market segmentation. We show that market segmentation can be estimated on the basis of an augmented hedonic model in which marginal prices are separated by household characteristics into different classes. The classes can either be exogenously defined or endogenously determined based on an unsupervised machine learning algorithm or a latent class formulation. We illustrate the usefulness of these methods using American Housing Survey data for Louisville and show that there are distinct housing market segments within the Louisville metropolitan area based on income and family structure. |
| Keywords: | Hedonic Model; heterogeneous households; latent class; Machine Learning; Market Segmentation |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_218&r=all |
| By: | Carlo Gallier (ZEW - Leibniz Centre for European Economic Research); Timo Goeschl (Heidelberg University); Martin Kesternich (University of Kassel); Johannes Lohse (University of Birmingham); Christiane Reif (Frauenhofer Institute for Microstructure of Materials and Systems IMWS); Daniel Roemer (Kreditanstalt fuer Wiederaufbau (KfW),) |
| Abstract: | We study spatially differentiated competition between charities by partnering with two foodbanks in two neighboring cities to conduct a field experiment with roughly 350 donation appeals. We induce spatial differentiation by varying the observability of charities' location such that each donor faces a socially close 'home' and a distant 'away' charity. We find that spatially differentiated competition is characterized by sorting, crowding-in, and an absence of spill-overs: Donors sort themselves by distance; fundraising (through matching) for one charity raises checkbook giving to that charity, irrespective of distance; but checkbook giving to the unmatched charity is not affected. For lead donors, this implies that the social distance between donors and charities is of limited strategic important. For spatially differentiated charities, matching 'home' donations maximizes overall charitable income. Across both charities, however, the additional funds raised fail to cover the cost of the match, despite harnessing social identity for giving. |
| Keywords: | mispricing, online secondary market, peer-to-peer lending, belief dispersion |
| JEL: | C9 D7 H4 |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:bir:birmec:19-08&r=all |
| By: | Chao Lin |
| Abstract: | The mortgage right of rural real estate is one of the legal and important property rights of the peasants, which is prohibited to be mortgaged because of rural housing land institute in China. In reality the financial demand of the peasants is huge in rural area, which need more invest into personal consumption, agriculture upgrading. So since 2016 the central government starts the pilot reform of mortgage load of rural real estate, which is beneficial to activate the land asset, increase the financing channel, promoting the strategy of rural revitalization. However, the peasants will take the risk of homeless as result from the uncertainty of public policy, sudden events, loan defaults. So the risk perception will have a great relationship with the participation willingness of the mortgage of rural real estate. Firstly, the paper does the theoretical mode between the risk perception and participation willingness and derives the hypothesis. Secondly the paper will conduct the Binary Logistic analysis by the ca. 600 questionnaires from Shanxi, Henan, Anhui province. Thirdly the paper will discuss the results of the quantitative analysis and suggest the related reform advices. |
| Keywords: | Mortgage load; Participation willingness; Risk Perception; Rural real estate |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_48&r=all |
| By: | Nathan, Max (University College London) |
| Abstract: | Despite academic scepticism, cluster policies remain popular with policymakers. This paper evaluates the causal impact of a flagship UK technology cluster programme. I build a simple framework and identify effects using difference-in-differences and synthetic controls on rich microdata. I further test for timing, cross-space variation, scaling and churn channels. The policy grew and densified the cluster, but has had more mixed effects on tech firm productivity. I also find most policy 'effects' began before rollout, raising questions about the programme's added value. |
| Keywords: | cities, clusters, technology, economic development, synthetic controls |
| JEL: | L53 L86 O31 R30 R50 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12631&r=all |
| By: | Remi Jedwab; Prakash Loungani; Anthony Yezer |
| Abstract: | It is obvious that holding city population constant, differences in cities across the world are enormous. Urban giants in poor countries are not large using measures such as land area, interior space or value of output. These differences are easily reconciled mathematically as population is the product of land area, structure space per unit land (i.e., heights), and population per unit interior space (i.e., crowding). The first two are far larger in the cities of developed countries while the latter is larger for the cities of developing countries. In order to study sources of diversity among cities with similar population, we construct a version of the standard urban model (SUM) that yields the prediction that the elasticity of city size with respect to income could be similar within both developing countries and developed countries. However, differences in income and urban technology can explain the physical differences between the cities of developed countries and developing countries. Second, using a variety of newly merged data sets, the predictions of the SUM for similarities and differences of cities in developed and developing countries are tested. The findings suggest that population is a sufficient statistic to characterize city differences among cities within the same country, not across countries. |
| Date: | 2019–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:19/203&r=all |
| By: | Frederic Cherbonnier; Christophe Leveque |
| Abstract: | We analyze how competition can counter the tendency of experts to pass biased information to their customers, by using data from an online company that connects real estate brokers with clients who want to sell their housings. Different counterfactuals allow us to show that more competition or lower opportunity to collude induce brokers to raise their initial price estimation by about 5 percent. A similar but lesser impact is observed on listing price and selling price, but no significant effect is observed on the time to sell, which suggests that the manipulation of information observed in the absence of competition is detrimental to the client. Increasing competition among agents also changes the way they respond to, and sometimes align with, price preferences expressed by their customers. |
| Keywords: | Agency Theory; bargaining; Competition; Information Asymmetry; residential brokerage |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_253&r=all |
| By: | Kevin Muldoon-Smith; Paul Greenhalgh; Malcolm Frodsham |
| Abstract: | Commercial real estate vacancy is a key indicator of property market efficiency, economic performance and urban resilience. However, there has been little conceptual reflection into the abstract notion of vacancy beyond binary distinctions of natural and structural vacancy. Although useful simplifying meta-concepts, neither accounts for the internal complexity and imperfection that permeates real commercial property markets. In response, this paper builds upon a conceptual framework that describes vacancy across the commercial real estate building life-cycle – from initial construction to final demolition and redevelopment. It substantiates the vacancy typology with existing data sets published by government organisations and market information. The originality of the research rests in its utility as the first known evidence based holistic examination of commercial real estate vacancy beyond that of an abstract economic factor. |
| Keywords: | Commercial; life-cycle; Natural vacancy; Resilience; Structural vacancy |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_178&r=all |
| By: | William Cheung |
| Abstract: | An important feature of public Real Estate Investment Trusts (REITs) is that they enhance the liquidity of the underlying illiquid property markets. Surprisingly REITs in Japan are among the most illiquid stocks in the Tokyo Stock Exchange. We examine an important but neglected factors of market liquidity – serial-position effects – in Japanese REIT (J-REITs) markets. Researches in social science suggest that serial-position effects exist extensively but less evidence are documented in financial markets, and much rarer in real estate finance literature. Given the relative homogeneity of investment and regulatory constraints faced by Japanese REITs, we argue that J-REITs provide a controlled environment to identify serial-position effects in a financial market. We find that stocks of J-REITs with their company names in higher "Katakana" order are significantly more liquid-lower price impact and higher turnover - than those with names in the lower order. We further document a non-linear, two-dimensional position effects using the nested linguistic complexity of Japanese. Our results cannot be fully explained by traditional factors of stock liquidity. |
| Keywords: | Japanese REITs; Katakana; Nested linguistic complexity; Serial-position effects; Stock liquidity |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_32&r=all |
| By: | Paul Ryan; Clare Branigan |
| Abstract: | This paper investigates the impact of valuation uncertainty on residential property prices near the peak of a bubble. Our hand-collected sample comprises the sequence of bids and gender of the participating bidders at Irish residential real estate auctions, prior to the collapse of a bubble, which when it burst had disastrous implications for the banking system and the economy itself. Portfolios of practitioner- and hedonic pricing model-selected self-similar properties provide benchmark property price estimates and uncertainty is calculated by reference to various measures of dispersion related to prices achieved for comparable properties. We find, in aggregate, auction winners do not shade bids with increased valuation uncertainty. In addition, winning female bidders, in contrast to findings in the extant literature across a wide range of academic disciplines, including experimental bubble markets, are not less risk averse, or more likely to shy away from competitive situations than their male counterparts. |
| Keywords: | Auctions; Bubble; Competition; emotional finance; Emotions; female bidders; real estate bubble; Uncertainty; valuation uncertainty |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_167&r=all |
| By: | Aleksandar Petreski |
| Abstract: | In this paper I construct theoretic search model of the apartment swap in the rental market. With the model, using random matching mechanism, I am trying to mimic Swedish swap market, characterized by the strong rent controls and dominant ownership of the apartments by the municipalities. Proposed theoretic framework is intended to capture supply and demand dynamics of the rental market, segmented to households with rented small or big municipal apartments, that search and try to swap between each other. The paper consider comparative statics of the apartment swap model and try to extract some stylized facts. For that purpose, I have simulated value of the swap itself as the function of the structure of the population, to test the changes in the modeled value of the swap, while varying for the parameters of interest rate, probabilities of match and probability of cancel of the swap agreement. Simulation results have confirmed intuitive expectation from the theoretical postulation. |
| Keywords: | apartment swap; housing market; Rent Control; search & match model; Sweden |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_290&r=all |
| By: | Johannes Fleck (European University Institute); Chima Simpson-Bell (European University Institute) |
| Abstract: | The literature on fiscal federalism usually argues that policies involving income reallocation should be administered by the highest level of government. This argument, however, neglects a uniformity constraint, which limits regional variation in its tax and welfare policies. Our paper explores the extent to which income support for poor households varies across US states due to the interaction between the federal government’s uniformity constraint and regional variations in local economic conditions and the net transfer policies of state governments. Our results are based on a simulation of the combined response of federal and state net transfers to a pre-tax earnings shock. They point to large differences in the level of insurance against income shocks experienced by households with low incomes in different states. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:296&r=all |
| By: | Chad Kwon |
| Abstract: | We study the relationship between housing markets and cemeteries. The latter has beenscantly researched in the literature, perhaps due to: our collective avoidance of the thought of deathitself, as explained by Ariès (1974); or limited availability of data. Recently, Canofari, Marinni, andScaramozzino (2017) investigate the price of cemetery plots across the U.S., showing there is muchheterogeneity in prices and locations of graveyards. The limitation of this and other empiricalstudies is their inability to identify individual burial sites by names, ownership types, and theircharacteristics. This motivates us to obtain more detailed information on cemeteries in the U.S.Our objective is to analyze the relationship between housing markets and these culturally significantlandmarks scattered across the country. |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_249&r=all |
| By: | Linh D. Nguyen; Bertram Steininger |
| Abstract: | Under-pricing the default risk is inevitable in a market with many lenders. Our study examines the impact of under-priced default risk on investment in the REIT sector where firms’ investment is highly sensitive to changes in credit market conditions. We find that REITs exploiting under-priced default risk have a higher level of investment than REITs that do not because the former could obtain access to loans having low rates of interest. In addition, REITs prioritize the choice of investment over the leverage choice. In contrast, we find evidence that under-priced default risk does not have a significant impact on non-REITs’ investment while their leverage does because non-REITs desire to reduce costs of financial distress. |
| Keywords: | Default risk; Investment; real estate investment trust (REIT); under-pricing of default risk |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_288&r=all |
| By: | Patrick McAllister; Ilir Nase |
| Abstract: | Building on previous research evaluating the IPF Consensus Forecasts, this study updates and expands upon the existing body of work. The paper evaluates forecasting accuracy at the sector level and assesses the extent to which the consensus forecasts were able to predict the relative performance of each sector. It also evaluates the performance of the implied yield forecasts and concludes that it is failure in yield forecasting that is the main source of failure in forecasts of capital growth and total returns. The ability of the consensus forecasts to identify the best and worst performing sectors was relatively good with a high level of agreement between the actual and forecasted sector rankings. |
| Keywords: | Forecasting performance accuracy. Consensus. Commercial real estate. |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_374&r=all |
| By: | Sharma, Ajay |
| Abstract: | This paper is an attempt to extend the dialogue on the nature of commuting between rural and urban areas and its implications for labour market outcomes in rural and urban India. We show that over the period 2004–2005 to 2011–2012, the magnitude of commuting workers has not changed but the composition has changed with reduction in rural no fixed place workers and increase in urban-no fixed place workers. We further highlight that rural–urban commuting can be considered mobility for better opportunities on account of diversification of livelihood strategy and underemployment in rural areas. |
| Keywords: | Commuting, Rural-urban interaction, No fixed place workers, India |
| JEL: | J61 O18 R0 R23 |
| Date: | 2019–09–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:96205&r=all |
| By: | Francesco Figari (Department of Economics, University of Insubria; ISER, University of Essex; CeRP Collegio Carlo Alberto and Dondena Bocconi University); Gerlinde Verbist (Centre for Social Policy Herman Deleeck, University of Antwerp); Francesca Zantomio (Department of Economics, University Of Venice Cà Foscari) |
| Abstract: | Western countries’ income tax system exempts the return from investing in owner-occupied housing. Returns from other investments are instead taxed, thus distorting households’ portfolio choices, although it is argued that housing property taxation might act as a counterbalance. Based on data drawn from the Statistics of Income and Living Conditions and the UK Family Resources Survey, and building on tax benefit model EUROMOD, we provide novel evidence on the interplay of income and property taxation in budgetary, efficiency and equity terms in eight European countries. Results reveal that, even accounting for recurrent housing property taxation, a sizeable ‘homeownership bias’ i.e. a lighter average and marginal taxation for homeownership investment, is embedded in current tax systems, and displays heterogeneous distributional profiles across different countries. Housing property taxation represents only a partial correction towards neutrality. |
| Keywords: | Homeownership investment, tax neutrality, income tax, property tax, distributional effect, Europe, microsimulation |
| JEL: | D31 H23 I31 I32 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2019:27&r=all |
| By: | Dale-Olsen, Harald (Institute for Social Research, Oslo); Finseraas, Henning (Institute for Social Research, Oslo) |
| Abstract: | We study the importance of linguistic diversity in the workplace for workplace productivity. While cultural diversity might improve productivity through new ideas and innovation, linguistic diversity might increase communication costs and thereby reduce productivity. We apply a new measure of languages' linguistic proximity to Norwegian linked employer-employee Manufacturing data from 2003-12, and find that higher workforce linguistic diversity decreases productivity. We find a negative effect also when we take into account the impact of cultural diversity. As expected proficiency in Norwegian of foreign workers improves since their time of arrival in Norway, the detrimental impact disappears. |
| Keywords: | productivity, diversity, language diversity, GMM |
| JEL: | J15 D24 J24 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12621&r=all |
| By: | Prashant Das; Parmanand Sinha; Julia Freybote; Roland Fuess |
| Abstract: | In this study we provide a behavioral explanation for spatial dependence in commercial property asset pricing. We analyze nearly 6000 hotel transactions in the US between 2001 and 2016 applying temporal spatial autoregression with autoregressive error (T-SARAR) models to test the behavioral explanation. We show that the spatial lags are partially driven by behavioral biases whereas the spatial errors do not exhibit a distinct pattern of association with market conditions which are known to influence the investor behavior. In particular, spatial lags influence future transactions the most when irrational sentiments are the lowest (during periods of unexplained pessimism) or when the rational financial market anxiety is the highest (during periods of economic turmoil). |
| Keywords: | Behavioral Real Estate; Hedonic Model; Hotel; sentiments; Spatial dependence |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_29&r=all |
| By: | Hai Feng Hu |
| Abstract: | The Rank/Size rule (Zipf’s law) implies that the bigger the city, the more attractive the city. And, the difference of population growth in megacities all over the world implies that attraction of Asian megacities is greater than Western megacities. This research adds the “urban dream” factor into the push-and-pull theory for city formation, and because most of the “urban dream” comes from poverty, this research proposes that the intensity of urban dream is a decreasing function of human and economic development, thus the intensity of urban dream will be bigger in Asia, consequently the push-and-pull model with urban dream factor can explain the differences between Eastern and Western megacities. |
| Keywords: | city size; Megacity; Migration; urban dream |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_67&r=all |
| By: | Jean-Christophe Delfim; Martin Hoesli |
| Abstract: | This research investigates the role of real estate in a mixed-asset portfolio for various investment horizons. Using U.S. data spanning almost three decades, we report that medium to long term investors should allocate 20% of their portfolio to direct real estate. In contrast, short term investors should focus on open-end core funds, which are found to be good substitutes for direct investments. REITs are usually of limited interest as a substitute for direct real estate, but they could be used in conjunction with direct investments for medium and long term horizons, as they partly substitute for stocks. Value-added and opportunistic closed-end funds are found to be imperfect substitutes for direct investments. Finally, we find that including commodities, private equity, and hedge funds in a portfolio enhances its performance but the allocation to real estate barely changes. |
| Keywords: | Alternative Investments; Investments Horizon; Real Estate Investments; Real Estate Private Equity; VAR Models |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_174&r=all |
| By: | Bakibinga, David; Ngabirano, Dan |
| Abstract: | Uganda embraced decentralisation as a system of governance in the early 1990’s. The success of decentralisation was pegged on the capacity of the local governments to mobilise their own revenues in order to fulfill their responsibilities. Before its suspension in 2005 and eventual abolition in 2008, graduated tax constituted a dominant source of local revenue. Although Local Services Tax (LST) and Local Hotel Tax (LHT) were introduced to fill the funding gap left by the abolition of graduated tax, their yield remains significantly low. Consequently, local governments are still heavily dependent on central government funding - a position that undermines their autonomy. Property rates, a form of property taxation, have emerged as a key source of local revenue. Property rates provide a stable and sustainable source of revenue for local governments, partly driven by urbanisation. Summary of ATAP Working Paper 13 by David Bakibinga and Dan Ngabirano |
| Keywords: | Economic Development, Finance, Governance, |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:idq:ictduk:14707&r=all |
| By: | Levy, Gilat; Razin, Ronny |
| Abstract: | Repeated communication in networks is often considered to impose large information requirements on individuals, and for that reason, the literature has resorted to use heuristics, such as DeGroot's, to compute how individuals update beliefs. In this paper we propose a new heuristic which we term the Bayesian Peer Influence (BPI) heuristic. The BPI accords with Bayesian updating for all (conditionally) independent information structures. More generally, the BPI can be used to analyze the effects of correlation neglect on communication in networks. We analyze the evolution of beliefs and show that the limit is a simple extension of the BPI and parameters of the network structure. We also show that consensus in society might change dynamically, and that beliefs might become polarized. These results contrast with those obtained in papers that have used the DeGroot heuristic |
| JEL: | J1 |
| Date: | 2018–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:86554&r=all |
| By: | David Berger (Northwestern University); Fabrice Tourre (Copenhagen Business School); Joseph Vavra (University of Chicago); Konstantin Milbradt (Northwestern University) |
| Abstract: | How much ability does the Fed have to stimulate the economy by cutting interest rates? We argue that the presence of substantial debt in fixed-rate, prepayable mortgages means that the ability to stimulate the economy by cutting interest rates depends not just on their current level but also on their previous path. Using a household model of mortgage prepayment matched to detailed loan level evidence on the relationship between prepayment and rate incentives, we argue that recent interest rate paths will generate substantial headwinds for future monetary stimulus. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:175&r=all |
| By: | Bertram Steininger; Melanie Sturm |
| Abstract: | Borrowers of a mortgage can choose between fully bearing the interest rate chance risk and paying a term spread to be protected against fluctuating mortgage rates. By using a one-period model, we study the choice between a fully adjustable mortgage and a fully fixed-rate mortgage. Furthermore, we examine with a life cycle model whether a mortgage is best broken down into several short-to-medium-term FRMs -- a common form in various mortgage markets but only rarely analyzed in research. We are among the first to demonstrate that borrowers with high risk aversion, non-amortizing mortgages, a large mortgage, and a low probability of moving are better off with long-term contracts. Our results show that amortizing mortgages are best broken down into several contracts with the optimal contract term generally declining as the mortgage ages. Initial contracts may be shorter than following contracts, only if borrowers expect to benefit from decreasing interest rates. For non-amortizing mortgages, a fully FRM is superior, unless interest rates are expected to decrease significantly. |
| Keywords: | Interest Rate Risk; Mortgage Contract Term; Term Spread; Yield Curve |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_227&r=all |
| By: | Teresa Molina Millán; Karen Macours; John A. Maluccio; Luis Tejerina |
| Abstract: | Numerous evaluations of conditional cash transfer (CCT) programs show positive short-term impacts, but there is only limited evidence on whether these benefits translate into sustained longer-term gains. This paper uses the municipal-level randomized assignment of a CCT program implemented for five years in Honduras to estimate long-term effects 13 years after the program began. We estimate intent-to-treat effects using individual-level data from the population census, which allows assignment of individuals to their municipality of birth, thereby circumventing migration selection concerns. For the non-indigenous, we find positive and robust impacts on educational outcomes for cohorts of a very wide age range. These include increases of more than 50 percent for secondary school completion rates and the probability of reaching university studies for those exposed at school-going ages. They also include substantive gains for grades attained and current enrollment for others exposed during early childhood, raising the possibility of further gains going forward. Educational gains are, however, more limited for the indigenous. Finally, exposure to the CCT increased the probability of international migration for young men, from 3 to 7 percentage points, also stronger for the non-indigenous. Both early childhood exposure to the nutrition and health components of the CCT as well as exposure during school-going ages to the educational components led to sustained increases in human capital. |
| Keywords: | Conditional cash transfers (CCTs), Early childhood, Education, Migration |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:unl:novafr:wp1905&r=all |
| By: | Trung Tran; Thi Thu Hien Le; Thi Thuy Trang Nguyen; Anh Giang Pham; Thi Hanh Vu; Minh Hoang Nguyen; Ha My Vuong; Thu Trang Vuong; Phuong Hanh Hoang; Manh Toan Ho; Quan-Hoang Vuong |
| Abstract: | Book reading is an important factor contributing to children's cognitive development and education for sustainable development. However, in a developing country like Vietnam, statistics have reported a low figure in book reading: only 1.2 books a year. This research study used a dataset of 1676 observations of junior high school students from Northern Vietnam to explore students' reading behavior and its association with demographic factors, and the family's reading culture. Data analysis suggests the older the student gets, the less inclined they are to read, and being female and having hobbies of low sensory stimulation are linked to higher preference for reading. Regarding scholarly culture at home, students who read more varied types of books and spend more time on books are correlated with higher reading interest. Reading habits are also positively reinforced by the capacity to access books and parental book reading. |
| Keywords: | Education for sustainable developments; Gender; Junior high school students; Reading abilities; Reading practices; Sustainable education; Vietnam |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/292782&r=all |
| By: | Chad Kwon |
| Abstract: | This study examines the impact of repurposed parishes of the Catholic Church on the prices of surrounding houses. We echo Glaeser (2000) and Swedberg (1990)’s view that non-market interac- tions could influence people’s economic decision. Parishes play vital roles in disseminating informa- tion, healing divided communities, and supporting the local economy (Grim, 2017). Nonetheless, about 1% of parishes are shuttered every year (Anderson et al., 2008). Numerous reports on dying congregations in the media (e.g., Merritt (2018) addresses the most recent account) and limited coverage of studies using micro-level religious buildings in the finance literature motivate us to fill the gap. Our objective is to quantify the effect of transformed religious identity of a community on local housing markets. |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_262&r=all |
| By: | Satyajit Chatterjee (Federal Reserve Bank of Philadelphia); Amartya Lahiri (University of British Columbia) |
| Abstract: | Why are taxes higher in Europe than in the US? We propose that it stems from lesser competition across jurisdictions within Europe. We embed self-interested governments and tax competition into a standard neoclassical growth model with public goods. While greater jurisdictional competition reduces taxes it also reduces societal investment in public capital and thus often ends up reducing total factor productivity. We show that despite this deleterious effect on the level of productive public capital, tax competition ends up raising per capita output and welfare. We show evidence to support both our baseline assumption of lesser mobility in Europe relative to the US as well as for our predictions on productivity differences between the two. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:249&r=all |
| By: | Miriam Steurer; Robert Hill; Norbert Pfeifer |
| Abstract: | The rapid expansion of Airbnb has led to concerns that it is crowding-out long-term rentals. We consider how strong is the incentive for landlords to switch properties to Airbnb. The Airbnb rent premium is defined here as the ratio of what a landlord can charge on Airbnb versus inthe long-term rental market. Using hedonic regression methods applied to micro-level data on long-term rentals (about a million observations) and Airbnb listings (about 190,000 observations), we calculate the size of the Airbnb rent premium for all the properties in our datasets. On average we find that landlords can earn about 90 percent more per week on Airbnb than in the long-term rental market. The premium is even larger for properties with three or more bedrooms. We find some evidence of a higher Airbnb premium in more expensive postcodes, and those with a higher Airbnb density. We also find that the Airbnb rent premium decreases slightly from 2015 to 2017. |
| Keywords: | Airbnb density; Airbnb rent premium; Hedonic regression; Sharing Economy; Size premium |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_243&r=all |
| By: | Arno Van der Vlist; Jos Van Ommeren |
| Abstract: | We examine welfare outcomes for non-market allocation mechanisms of public housing. We make use of a quasi-natural experiment in Amsterdam where public houses are allocated through lotteries to households already on waiting lists. We demonstrate that a lottery reduces waiting time by 8.5 years and offers benefits to lottery winners. Households in public housing value these benefits at about €875 per year. We demonstrate that the lottery experiment resulted in different – and less efficient – household and public housing matches than those based on waiting time. Using a structural approach, the annual welfare loss associated with lottery due to an inefficient match is estimated to be €275 for each public house. JEL: C78 D82 R21 R31. |
| Keywords: | Affordable Housing; lotteries; Public Housing; waiting lists |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_330&r=all |
| By: | Chunghsien Yang |
| Abstract: | The CAMA model usually depend on sample size and consistency. When a real property is extreme price, it seem be different attribute price and submarket. It’s also few sample size and hard to build a CAMA model. Some studies use the Quantile Regression(QR) or Artificial Neural Network(ANN) model, but a real property is hard to fit its quantile price in QR model, and it’s also hard to explain predict price in ANN model. This paper try to build a hybrid model and process. Using both the QR model and OLS model to predict the real property with extreme price. And the extreme price seem be another submarket, this paper is also to test how to combine or split submarket in the hybrid model in different scale market. |
| Keywords: | CAMA; Extreme Price; hybrid model; Submarket |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_199&r=all |
| By: | Giuseppe Attanasi; Ylenia Curci; Patrick Llerena; Maria del Pino Ramos-Sosa; Adriana Carolina Pinate; Giulia Urso |
| Abstract: | This article presents a mixed-methods research in the field of creativity. By making use of experiments and a questionnaire, it analyses how creativity is affected by three factors: i) motivation, ii) individuals’ attitudes towards risk and ambiguity and iii) social context. Each one of these factors has been extensively investigated in the theoretical and empirical literature getting to results still open to discussion. In particular, this research focuses on two aspects. First, we try to shed some light on the controversial findings linking risk taking and creativity that exist in the economic and psychology literature. To do so, we test the hypotheses that self perception of creative abilities may play a role in establishing a riskcreativity positive correlation. Second, being the three factors strongly influenced by culture, the study investigates whether the impacts on creativity may differ in diverse geographical locations. Following Attanasi et al. (2019), we exploit data from experiments performed in main cities of one eastern and one western country: Ho Chi Minh city (Vietnam) and Strasbourg (France). The information to build the risk and ambiguity factor derive from risk and ambiguity elicitation via lotteries. To account for motivation, different organizational scenarios are set in experimental treatments (financial incentives vs non financial incentives to collaborate). Finally, information on social context and self perception of creative abilities are collected through a self administrated questionnaire. In our analysis, we find that risk aversion, social habits and leisure activities have a positive effect on the creative performance of the French participants, while for Vietnamese the intrinsic motivation and the perception of their own creative capacities are positive correlated with creative scores. Our results suggest that in a country like France, social context has a strong influence on individual creativity, while for Vietnam individual features play a role in creativity, suggesting that the socio-cultural context has different impacts on creativity. |
| Keywords: | Cexperiments, risk, ambiguity, self-perceived creativity, motivation, geographical location, social context. |
| JEL: | I23 O31 O32 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2019-38&r=all |
| By: | Bove, Vincenzo (University of Warwick); Elia, Leandro (Marche Polytechnic University); Ferraresi, Massimiliano (European Commission, Joint Research Centre) |
| Abstract: | We explore the relation between immigration, crime and local government spending on security in Italian municipalities. We find that immigration increases the share of public resources devoted to police protection, particularly when migrants are culturally distant from the native population. We uncover a misalignment between perception and reality, as immigration increases fear of future crimes rather than the actual probability of being victim of a crime. We also demonstrate that immigration from culturally distant societies is associated with a deterioration in civic cooperation and interpersonal trust, which can affect perceptions of safety and the demand for police services. |
| Keywords: | JEL Classification: H71; J15; D72; F52 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:cge:wacage:434&r=all |
| By: | Ryan Chahrour (Boston College); Luminita Stevens (University of Maryland) |
| Abstract: | We find that observed cross-country price differences primarily reflect regional market segmentation occurring within countries. Using a model of price setting subject to costly search, we show that identification of national versus regional segmentation requires augmenting price data with regional trade flow data. Calibrating the model to data from U.S. and Canadian regions, we estimate substantial regional trade frictions: U.S. producers are three times more likely to sell to retailers in their own region than in the “away” region of the United States, and only slightly less likely to sell to a region in Canada, controlling for market size differences. Canadian producers have an even stronger home bias: they are seven times more likely to sell in their own region than in the “away” region in Canada, and 11 times more likely to sell in their own region than in a U.S. region. Models that do not explicitly account for regional home bias can misstate the severity of segmentation at the national border. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:947&r=all |
| By: | Philipp Gerlach; Maurer Raimond |
| Abstract: | Shares of open-end real funds are typically traded directly between the investor and the fund management company. However, we provide empirical evidence for the growth of secondary market activities, i.e., the trading of shares on stock exchanges. We find high trading in situations when the fund management company suspends the redemption of shares but lower trading when the issue of shares is suspended. Shares trade with a discount when the fund management company suspends the redemption, whereas shares trade with a premium when the fund management company suspends the issue. We also find evidence that secondary market trading activity is increasing since German regulation introduced a minimum holding period and a mandatory notice period for open-end real estate funds. |
| Keywords: | NAV-Price-Spread; open-end real estate funds; Secondary market; Trading Restrictions |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_205&r=all |
| By: | Etienne Billette de Villemeur; Annalisa Vinella |
| Abstract: | We consider a multi-service transportation system in which passengers are heterogeneous along two dimensions, namely ideal departure time and value of time, leading to both horizontal and vertical differentiation. We investigate the behavior of passengers, and assess how service pricing and scheduling affect their travel choices and welfare. We show that this depends, first, on whether passengers are uninformed or informed about the timetable of services, supplied at different prices, upon arrival at the station. Besides, given the information passengers hold, it also depends on their (individual-specific) value of time. The market segmentation results accordingly, and is found to be finer, in general, when passengers are informed. Our analysis offers policy-makers a scientifically founded tool to make sensible decisions, based on the exact identification of those who would gain and those who would lose from policy changes. The analysis further highlights the potential benefits of information, and points to the importance of facilitating information accessibility to passengers. |
| Keywords: | travel demand, service scheduling, market segmentation, targeted policy-making, impact of information |
| JEL: | D01 L91 L98 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7843&r=all |
| By: | Yu Zhang; Donald Haurin |
| Abstract: | This study estimates individuals' attitudes toward and perceptions of ambiguity of house prices and stock prices, using experiment data from the Rand American Life Panel (ALP) survey. We estimate two important parameters in multiple prior models and -MaxMin ambiguity preferences: the degree of ambiguity aversion and the degree of confidence in the reference prior distribution of future prices, this being a measurement of the perceived level of ambiguity. Regarding attitudes, we find that individuals are slightly ambiguity seeking with regard to house prices while they are slightly ambiguity averse with regard to stock prices. Their degree of confidence in the reference distribution for stocks is lower than for house prices. We also find that increased state-level house price volatility during the past year and growth of house price in the past three years increase perceived ambiguity. Moreover, ambiguity matters in that ambiguity-averse renters are less likely to buy a house. Correspondingly, ambiguity-averse stock investors tend to have less stock holdings. |
| Keywords: | Ambiguity; Homeownership; House Prices; risk aversion |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_75&r=all |
| By: | Franz Fuerst; Marco Felici |
| Abstract: | The importance of housing tenure on individuals’ behaviour is widely recognised and studied. Arguably, one aspect that is crucial, with wide-ranging implications for macroeconomic fluctuations and possibly for economic inequality, is the effect of housing on the portfolio composition of households, and more specifically how the fact of being a homeowner, as compared to a renter or a mortgagor, affects portfolio efficiency. We first explore this question theoretically, using a mean-variance framework adjusted for the presence of housing in the portfolio. We then turn to UK data from the Wealth and Assets Survey to confirm empirically the predictions of the model: the five waves of the survey allow to break down households' portfolios in detail, as well as to account for a wide range of covariates and for individual unobserved heterogeneity. |
| Keywords: | Household microdata; Household portfolio choice; Liquid assets; Microeconomics of housing |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_326&r=all |
| By: | Alexey Zhukovskiy; Ranoua Bouchouicha; Heidi Falkenbach |
| Abstract: | In this paper we examine the relationship between debt flexibility and investment. Employing a hand-collected sample of debt structures of 102 European public real estate companies, we construct measures of the companies’ ability to substitute bank loans with other forms of debt. Our results show that there is a statistically and economically significant effect of debt flexibility on the investment activity of European listed real estate companies, the effect increasing during times of tight bank lending constraints. We confirm that the effect is linked to the debt structure, rather than the general degree of indebtness (leverage) of the company and robust to alternative specifications and to controlling for the institutional differences between countries. |
| Keywords: | debt flexibility; debt stucture; Investment; public real estate; REIT |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_105&r=all |
| By: | Flip Klijn; Joana Pais; Marc Vorsatz |
| Abstract: | In the context of school choice, we experimentally study the student-optimal stable mechanism where subjects take the role of students and schools are passive. Specifically, we study if a school can be better off when it unambiguously improves in the students’ true preferences and its (theoretic) student-optimal stable match remains the same or gets worse. Using first-order stochastic dominance to evaluate the schools’ distributions over their actual matches, we find that schools’ welfare almost always changes in the same direction as the change of the student-optimal stable matching, i.e., incentives to improve school quality are nearly idle. |
| Keywords: | school choice, matching, deferred acceptance, school quality, stability |
| JEL: | C78 C91 C92 D78 I20 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1119&r=all |
| By: | Edward Trevillion; Alan Gardner; Stewart Cowe; Colin Jones |
| Abstract: | The MSCI/IPD database is the predominant reference point for peer and relative benchmarking in the UK but funds also apply an absolute benchmark approach. Absolute benchmarks take the form of inflation plus a target, typically between 2-7% The recent past has seen the emergence of a willingness to alter benchmarks more often. Increasing short-termism and the transformation of market fundamentals in the aftermath of the GFC have led to a re-appraisal. In addition traditional indices are no longer true representations of the market given substantial inward investment. Questions are now whether the nature of existing benchmarks are fit for purpose. |
| Keywords: | Benchmarks; financial instiutions; Global Financial Crisis; real estate indices |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_352&r=all |
| By: | Neil Dunse; Colin Jones |
| Abstract: | The aim of the paper is to analyse the spatial pattern of the “new” logistics real estate sector growing within the UK and examine the process of change. The study will draw on historic reviews of warehousing patterns and compare it with the current model of logistics encompassing the ‘last mile’. It will look at the implications of technological change on the development and distribution of space and occupier requirements. The research will be based on an interrogation the CoStar Property database to assess the changing scale of the logistics sector and identify how it has changed with the advent of ecommerce over the last ten years. |
| Keywords: | E-commerce; Logistics |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_336&r=all |
| By: | Alain Coen; Benoit Lefebvre; Richard Malle; Arnaud Simon |
| Abstract: | The purpose of this study is to deeply investigate the rental dynamics of the European office market during a long period (2002-2017). This paper analyses the global and local dynamics of the 26 largest European office markets. First we estimate a dynamic panel vector autoregressive (PVAR) modelling. Then, we estimate the same equation for each market individually. Our modelling at two levels highlights a significant heterogeneity across European office markets. Finally, we revisit the natural vacancy rate theory. We show that European office markets currently exhibit vacancy rates below their natural rates suggesting relevant opportunities for real estate portfolio investors. |
| Keywords: | European integration; Natural vacancy rate; Office Market; Panel VAR; Rental dynamics |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_61&r=all |
| By: | Patrick Hirsch |
| Abstract: | The euro area economies are bound together by monetary policy while still inhibiting many heterogeneities. Amongst them the share of homeowners. This paper presents a medium-scale New Keynesian DSGE model of the euro area with an extensive housing market which explicitly models endogenous tenure choice. Results from the calibrated model indicate that there are various parameters determining the ownership rate. Dependent on the drivers of the heterogeneity, shocks have substantial effects on real variables when homeownership rates differ across countries. |
| Keywords: | Facility Management; indoor environment; Market value of buildings; Smart buildings; Utility value of buildings |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_369&r=all |
| By: | Costas Cavounidis; Kevin Lang; Russell Weinstein |
| Abstract: | African Americans face shorter employment durations than apparently similar whites. We hypothesize that employers discriminate in either acquiring or acting on ability-relevant information. We construct a model in which firms may "monitor" workers. Monitoring black but not white workers is self-sustaining: new black hires are more likely to have been screened by a previous employer, causing firms to discriminate in monitoring. We confirm the model's prediction that the unemployment hazard is initially higher for blacks but converges to that for whites. Two additional predictions, lower lifetime incomes and longer unemployment durations for blacks, are known to be strongly empirically supported. |
| JEL: | J01 J3 J71 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26319&r=all |
| By: | Coleman, Stephen |
| Abstract: | This research examines the geographical distribution of behavior in line with social norms that are spread and maintained primarily by the effect of social conformity. These include widely held norms that good citizens vote, don’t commit crimes, get flu vaccinations, abstain from binge drinking, and comply with census reporting. A partial differential equation model is used to determine whether such behavior may have attained a geospatial equilibrium in the United States. An equilibrium, as the end state of a diffusion process, has definitive mathematical properties that can be used to test for equilibrium. This is done using recent data for the 48 contiguous states. Results confirm that behavior for several important social norms fits the equilibrium model geographically. Policy implications are briefly discussed. |
| Keywords: | : social norms, social conformity, geographical, spatial, mathematical model, United States, crime, voting, binge drinking, vaccination, census reporting |
| JEL: | C2 C21 D7 |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:96207&r=all |
| By: | Robbie Lin; Chyi Lin Lee |
| Abstract: | Logistics properties have been an increasingly institutionalised property sector in the Asia-Pacific property investment space. It was mostly driven by the strong economic expansion and demographic population growth in the Asia-Pacific. Particularly, e-commerce continues to drive the demand for warehouse space that forms the key driver of logistics properties. The purpose of this paper is to assess superior risk-adjusted performance and portfolio diversification benefits of logistics REITs in Australia, Japan and Singapore over July 2009 - December 2018. To reflect the actual property allocation and major asset classes allocation within institutional investors’ holdings, this study deploys a constrained asset allocation analysis. The preliminary results suggest that logistics REITs as the value-added and strategic role in a mixed-asset portfolio to institutional investors seeking property investment in the Asia-Pacific. The practical property investment implications for logistics properties as an institutionalised property sector are also identified. |
| Keywords: | Asia-Pacific; E-commerce; Institutional Investors; Logistics REITs; Risk-Adjusted Performance |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_124&r=all |
| By: | Ambra, Poggi |
| Abstract: | This paper contributes to the literature that aims at identifying and measuring the impact of social context on individual-level outcomes. We focus on religious congregations (social groups with which Christian worshipers feel associated) and investigate congregation effects on individual poverty using U.S. data and a multilevel approach. In order to correct for selection effects, we model congregation choice using a multinomial logit model and subsequently incorporate correction components into the multilevel model of congregation effects. Our empirical results support the existence of congregation effects and, therefore, the importance of social context on individual poverty. We find that congregation size, recreational services, initiatives to integrate new members and behavior standards play important roles in shaping the probability that churchgoers experience poverty. Individual behavior (in terms of participation in the religious life of congregations) also matters. These finding are in line with the idea that congregations’ activities can foster social interactions and cooperation reducing individual probability of experiencing poverty. |
| Keywords: | poverty, religion, social capital, multi-level analysis |
| JEL: | I32 Z12 C13 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:mib:wpaper:413&r=all |
| By: | Ufuk Akcigit; Sina T. Ates |
| Abstract: | In this paper, we review the literature on declining business dynamism and its implications in the United States and propose a unifying theory to analyze the symptoms and the potential causes of this decline. We first highlight 10 pronounced stylized facts related to declining business dynamism documented in the literature and discuss some of the existing attempts to explain them. We then describe a theoretical framework of endogenous markups, innovation, and competition that can potentially speak to all of these facts jointly. We next explore some theoretical predictions of this framework, which are shaped by two interacting forces: a composition effect that determines the market concentration and an incentive effect that determines how firms respond to a given concentration in the economy. The results highlight that a decline in knowledge diffusion between frontier and laggard firms could be a significant driver of empirical trends observed in the data. This study emphasizes the potential of growth theory for the analysis of factors behind declining business dynamism and the need for further investigation in this direction. |
| Keywords: | business dynamism, market concentration, markups, competition, knowledge diffusion, innovation, patenting |
| JEL: | E22 K20 L10 L41 O33 O34 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7849&r=all |
| By: | Deng, Zichen (affiliation not available); Lindeboom, Maarten (Vrije Universiteit Amsterdam) |
| Abstract: | This paper examines the effects of a massive salt iodization program on human capital formation of school-aged children in China. Exploiting province and time variation we find strong positive effects on cognition for girls and no effects for boys. For non-cognitive skills we find the opposite. We show in a simple model of parental investment that gender preferences can explain our findings. Analyses exploiting within province, village level variation in gender attitudes confirm the importance of parental gender preferences. Consequently, large scale programs can have positive (and possibly) unintended effects on gender equality in societies where boy preferences are important. |
| Keywords: | iodine, parental investments, gender attitudes, cognitive skills, non-cognitive skills |
| JEL: | I15 J16 J24 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12629&r=all |
| By: | Fleckenstein, Timo; Lee, Soohyun Christine |
| Abstract: | The success story of Korean economic development is intimately linked with the so-called developmental state; and education policy, as part of centrally orchestrated industrial policy, played a critical role in the country's rapid industrialisation, which allowed for high employment rates, relatively modest social inequality and remarkable social mobility. However, the Korean success story has started to show ‘cracks’ – with labour market dualisation, rising inequality and ‘over-education’. While acknowledging the importance of the East Asian financial crisis as external shock for the Korean political economy, we suggest more fundamental problems in the socio-economic and socio-political underpinnings of the developmental state and its education and skills formation system for understanding how Korea's economic and education miracle turned into ‘education inflation’, skills mismatch and social polarisation. |
| Keywords: | South Korea; private education; skills formation; industrialisation; democratisation |
| JEL: | J1 |
| Date: | 2018–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:87607&r=all |
| By: | Dennis Schoenmaker; Ken Baccam; Guillaume Oliveira |
| Abstract: | Experience, i.e., the knowledge or skills acquired during a period of time, should benefit commercial real estate fund managers and investors. This as experience suggests not only greater knowledge and skills but also implies a wider network of brokers and participants for example, thus helping them in selecting and negotiating more attractive commercial real estate deals. This study addresses whether the experience influences asset pricing across a range of different size urban functional area cores. We focus on logistics as the evolution of global supply chains, alongside global trade and the rise of online commerce triggered a strong demand for logistics space, ranging from e-fulfilment centers, pan-European distribution centers, and national distribution centers to urban distribution centers. Using transaction based data over the 2003-2018 period from Real Capital Analytics, we define several measurements to investigate the experience of fund managers and investors. |
| Keywords: | Asset Pricing; Experience; Logistics; Transaction data |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_70&r=all |
| By: | Jan Hendrik Lukowski |
| Abstract: | This paper investigates how the announcement of three different large-scale residential construction projects impacts land values of multi-story residential buildings in Hamburg, Germany. Applying a difference-in-difference approach the study finds that land values within a radius of 1,500 m may experience either positive or negative effects. The impact depends critically on how the projects are expected to change the existing amenities and disamenities. We uncover price changes in land values spanning from -4% to +22%. The study shows that projects with an overlapping area of impact should be considered in one regression and that projects that are located far from one another can be analyzed in one or in separate regressions. |
| Keywords: | Exogenous shocks; Hamburg, Germany; Land Values; Large-scale construction projects |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_95&r=all |
| By: | Sara Flisi (European Commission - JRC); Zsuzsa Blasko (European Commission - JRC) |
| Abstract: | This report investigates alternatives to the current targets related to early childhood education and care (ECEC), in particular by looking at socio-economic differences in the level of ECEC attendance in EU Member States. Using data from the EU Survey on income and living conditions (EU-SILC), it assesses different categorisations of socio-economic disadvantage, based on household income, maternal education and whether or not the child lives in a household which is at risk of poverty (AROP) or at risk of poverty or social exclusion (AROPE). Irrespective of which categorisation is used, the report shows considerably lower ECEC attendance rates for children from a lower socio-economic background when compared to those from a higher one. This suggests that the attempt to focus on particular subgroups of children is well justified. Based on a range of methodological and conceptual considerations, AROPE emerges as the most appropriate measure to build a possible ECEC indicator. |
| Keywords: | Early childhood education and care, risk of poverty (AROP), risk of poverty or social exclusion (AROPE) |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc117663&r=all |
| By: | Gaggero, Alessio (University of Nottingham); Haile, Getinet Astatike (University of Nottingham) |
| Abstract: | The paper examines the impact of class size on postgraduate grades using administrative data from one of the largest Schools of a Russell Group University in the UK. As well as estimating Fixed Effects models on the population of postgraduate candidates in the School, we exploit a policy change aimed at reducing class size to implement a regression discontinuity design (RDD). We find that class size does impact grades adversely overall; and the policy aimed at reducing class size impacts grades favourably. Our findings are robust to alternative specifications as well as being supported by the validity tests we conducted. |
| Keywords: | higher education, class size, grades, RDD |
| JEL: | I21 I23 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12628&r=all |
| By: | Avner Seror (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper presents a general theory of child development that incorporates interactive learning and identity formation in social interactions with caregivers. The model sheds light on many puzzling aspects of child development. Child learning responds nonmonotonically to caregivers' attention and approval in social interactions. I highlight key parental characteristics associated with child learning, and identity formation. The theory also explains why media devices widen human inequality. Lessons are finally drawn for the design of policies that alleviate human inequality. |
| Keywords: | media,human development,human inequality,social interactions,identity,parenting,learning,intergenerational transmission |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-02296082&r=all |
| By: | Graeme Newell; Jufri Marzuki |
| Abstract: | Private equity investing has taken on increased importance in recent years with the major institutional investors such as pension funds and sovereign wealth funds. This includes the private equity sectors such as buyouts, venture capital and distressed etc.; as well as private equity real estate. Key private equity players such as Blackstone, Brookfield and Lone Star etc. have been active in the private equity real estate space in recent years. This paper assesses the risk-adjusted performance and diversification benefits of private equity real estate against the other private equity sectors over 2001-2017. The strategic global real estate investment implications are also highlighted. |
| Keywords: | Diversification Benefits; Global real estate; Private equity real estate; Risk-adjusted returns |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_79&r=all |
| By: | Nelson Lind (Emory University); Natalia Ramondo (UCSD) |
| Abstract: | This paper develops a model of economic growth and trade in which countries innovate ideas that diffuse across the globe. This model dynamically generates max-stable multivariate Frechet productivity distributions and implies a mixed-CES import demand system. This demand system allows for rich substitution patterns in trade flows that arise from spatial correlation in technology. In the special case of a pure innovation model where countries do not share ideas, productivities are independent across space, and the demand system is CES. As a consequence, departures from CES reflect how knowledge diffusion generates technological similarity. In the general case with diffusion, high innovation countries tend to have dissimilar technology and their goods are less substitutable. These theoretical results provide a direct connection between estimable substitution patterns and the underlying dynamics of innovation and knowledge diffusion. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1364&r=all |
| By: | Liu, Yan; Chen, Xi; Yan, Zhijun |
| Abstract: | While adverse health effects of ambient air pollution have been well documented, there is scarce evidence on the impact of household air pollution (HAP) on mental health. We investigated the causal link between HAP exposure from the use of solid fuel on depressive symptoms using a nationally representative dataset of middle-aged and older population in China. Employing the propensity match score method (PSM), matching and adjusting for potential confounders, we found significantly higher Center for Epidemiological Studies Depression Scale (CES-D) score and risk of depressive symptoms among solid fuel users than clean fuel users. These associations were especially stronger for older females who were less educated, of lower income, of higher body mass index, or had chronic diseases. |
| Keywords: | Depression,Household solid fuel use,Household air pollution,Propensity Score Matching,CHARLS |
| JEL: | I31 Q51 Q53 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:407&r=all |
| By: | Alberto Bisin; Giulia Tura |
| Abstract: | We study the cultural integration of immigrants, estimating a structural model of marital matching along ethnic dimensions, exploring in detail the role of fertility, and possibly divorce in the integration process. We exploit rich administrative demographic data on the universe of marriages formed in Italy, as well as birth and separation records from 1995 to 2012. We estimate strong preferences of ethnic minorities' towards socialization of children to their own identity, identifying marital selection and fertility choices as fundamental socialization mechanisms. The estimated cultural intolerance of Italians towards immigrant minorities is also substantial. Turning to long-run simulations, we find that cultural intolerances, as well as fertility and homogamy rates, slow-down the cultural integration of some immigrant ethnic minorities, especially Latin America, East Asia and Sub-Saharan Africa. Nonetheless, 75% of immigrants integrate into the majoritarian culture over the period of a generation. Interestingly, we show by counterfactual analysis that a lower cultural intolerance of Italians towards minorities would lead to slower cultural integration by allowing immigrants a more widespread use of their own language rather than Italian in heterogamous marriages. Finally, we quantitatively assess the effects of large future immigration inflows. |
| JEL: | D1 J12 J13 J15 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26303&r=all |