|
on Urban and Real Estate Economics |
| By: | Mense, Andreas; Michelsen, Claus; Cholodilin, Konstantin |
| Abstract: | This paper studies market segmentation that arises from the introduction of a price ceiling in the market for rental housing. When part of the market faces rent control, theory predicts an increase of free-market rents, a consequence of misallocation of households to housing units. We study a large-scale policy intervention in the German housing market in 2015 to document this mechanism empirically. To identify the effect we rely on temporal variation in treatment dates, combined with a difference-in-differences setup and a discontinuity-intime design. By taking a short-run perspective, we are able to isolate the misallocation mechanism from other types of spillovers. We find a robust positive effect on free-market rents in response to the introduction of rent control. Further, we document that rent control reduced the propensity to move house within rent controlled areas, but only among highincome households. Interpreted through the lens of our theoretical model, this spillover is a clear sign of misallocation. Further, we document that the spillover brings forward demolitions of old, ramshackle buildings. |
| Keywords: | misallocation,price ceilings,rent control,spillovers |
| JEL: | D2 D4 R31 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwqwdp:062019&r=all |
| By: | Holger Graf (Friedrich Schiller University Jena, Economics Department); Tom Broekel (University of Stavanger, Business School, Stavanger, Norway, and Centre for Regional and Innovation Economics, University of Bremen, Germany) |
| Abstract: | Cluster policies are often intended and designed to promote interaction in R&D among co-located organisations, as local knowledge interactions are perceived to be underdeveloped. In contrast to the popularity of the policy measure little is known about its impact on knowledge networks, because most scientific evaluations focus on impacts at the firm level. Using the example of the BioRegio contest, we explore cluster policy effects on local patent co-application and co-invention networks observed from 1985 to 2013, in 13 German regions. We find that the initiative increases network size and innovation activities during the funding period but not afterwards. The impact of the BioRegio contest on network cohesion is moderate. In contrast, general project-based R&D subsidisation is found to support cohesion more robustly. |
| Keywords: | Cluster Policy, Knowledge Networks, Network Analysis, Patent Data, Regional Innovation, Policy Evaluation |
| JEL: | O31 Z13 |
| Date: | 2019–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2019-007&r=all |
| By: | Natalia Zdanowska |
| Abstract: | After the Fall of the Berlin Wall, Central Eastern European cities (CEEc) integrated the globalized world, characterized by a core-periphery structure and hierarchical interactions between cities. This article gives evidence of the core-periphery effect on CEEc in 2013 in terms of differentiation of their urban functions after 1989. We investigate the position of all CEEc in transnational company networks in 2013. We examine the orientations of ownership links between firms, the spatial patterns of these networks and the specialization of firms in CEEc involved. The major contribution of this paper consists in giving proof of a core-periphery structure within Central Eastern Europe itself, but also of the diffusion of innovations theory as not only large cities, but also medium-sized and small ones are part of the multinational networks of firms. These findings provide significant insights for the targeting of specific regional policies of the European Union. |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1910.14652&r=all |
| By: | Takano, Keisuke; Okamuro, Hiroyuki |
| Abstract: | This paper compares the effects of local R&D support programs on firm performance between neighboring three prefectures in the same district in Japan. Particularly, we evaluate the policy effect on regional and sectoral diversification of transaction networks. One of these prefectures, A, has a large industrial agglomeration around world-leading manufacturers, which is not the case for the other prefectures, B and C. Empirical evaluation based on firm-level dataset available through TDB-CAREE shows that the programs in Prefectures B and C promoted market development of recipient firms in unexplored sectors or regions, whereas Prefecture A’s program did not. |
| Keywords: | place-based policy, R&D support, interregional trade, diversification |
| JEL: | L25 L52 O38 R11 R12 R58 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:hit:tdbcdp:e-2019-02&r=all |
| By: | Clare Leaver; Renata Lemos; Daniela Scur |
| Abstract: | Why do some students learn more in some schools than others? One consideration receiving growing attention is school management. To study this, researchers need to be able to measure school management accurately and cheaply at scale, and also explain any observed relationship between school management and student learning. This paper introduces a new approach to measurement using existing public data, and applies it to build a management index covering 15,000 schools across 65 countries, and another index covering nearly all public schools in Brazil. Both indices show a strong, positive relationship between school management and student learning. The paper then develops a simple model that formalizes the intuition that strong management practices might be driving learning gains via incentive and selection effects among teachers, students and parents. The paper shows that the predictions of this model hold in public data for Latin America, and draws out implications for policy. |
| Keywords: | management, teacher selection, teacher incentives, cross-country |
| JEL: | M5 I2 J3 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1656&r=all |
| By: | Bauer, Thomas K.; Rulff, Christian; Tamminga, Michael M. |
| Abstract: | This paper analyzes the determinants of internal migration in Germany. Using data on the NUTS-3 level for different age groups and Pseudo-Poisson Maximum Likelihood (PPML) gravity models, the empirical analysis focuses on the relevant push and pull factors of internal migration over the life cycle. Labor market variables appear to be most powerful in explaining interregional migration, especially for the younger cohorts. Furthermore, internal migrants show heterogeneous migration behavior across age groups. In particular the largest group, which is also the youngest, migrates predominantly into urban areas, whereas the oldest groups chose to move to rural regions. This kind of clustering reinforces preexisting regional heterogeneity of demographic change. |
| Keywords: | internal migration,gravity model,demographic polarization |
| JEL: | R23 J11 O18 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:823&r=all |
| By: | Bindler, Anna (Department of Economics, School of Business, Economics and Law, Göteborg University); Hjalmarsson, Randi (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | This paper evaluates how the introduction of professional police forces affected crime using two natural experiments in history: the 1829 formation of the London Metropolitan Police (the first police force ever tasked with deterring crime) and the 1839 to 1856 county roll-out of forces in England and Wales. The London Met analysis relies on two complementary data sources. The first, trial data with geocoded crime locations, allows for a difference-indifferences estimation that finds a significant and persistent reduction in robbery but not homicide or burglary. A pre-post analysis of the second source, daily police reports of both cleared and uncleared crime incidents, finds a significant reduction in all violent crimes but offsetting changes in uncleared (decrease) and cleared (increase) property crimes. These (local) reductions in crime are not just due to crime displacement but represent true decreases in overall crime. Difference-in-difference analyses of the county roll-out find that only sufficiently large forces, measured by the population to force ratio, significantly reduced crime. The results are robust to controlling for spill-over effects of neighboring forces. |
| Keywords: | police; crime; deterrence; economic history; institutions |
| JEL: | H00 K42 N93 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0779&r=all |
| By: | Klick, Larissa; Schaffner, Sandra |
| JEL: | J31 R23 R31 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203621&r=all |
| By: | Mawuli Segnon (Department of Economics, Institute for Econometric and Economic Statistics, University of Münster, Germany); Rangan Gupta (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa); Keagile Lesame (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa); Mark E. Wohar (Department of Economics, University of NE-Omaha, USA and School of Business and Economics, Loughborough University, UK) |
| Abstract: | We propose a logistic smooth transition autoregressive fractionally integrated [STARFI(p,d)] process for modeling and forecasting US housing price volatility. We discuss the statistical properties of the model and investigate its forecasting performance by assuming various specifications for the dynamics underlying the variance process in the model. Using a unique database of daily data on price indices from ten major US cities, and the corresponding daily Composite 10 Housing Price Index, and also a housing futures price index, we find that using the Markov-switching multifractal (MSM) and FIGARCH frameworks for modeling the variance process helps improving the gains in forecast accuracy. |
| Keywords: | US housing prices, GARCH processes, MSM processes, Model confidence set |
| JEL: | C22 C53 C58 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:201977&r=all |
| By: | Michael Fritsch (Friedrich Schiller University Jena, Germany); Korneliusz Pylak (Maria Curie Skłodowska University of Lublin, Poland); Michael Wyrwich (University of Groningen, The Netherlands, and Friedrich Schiller University Jena, Germany) |
| Abstract: | Persistence of entrepreneurship over longer periods of time could indicate a culture of entrepreneurship among the local population that may be an important factor for regional development, but does persistence of economic activity require cultural transmission? We exploit the diverse historical developments in the territory that is Poland today to analyze the level and the sources of persistence from the 1920s until today. Persistence is mainly found in those regions that were part of Germany before World War II. This persistence is noticeable despite the exchange of most of the pre-war population, ruling out that persistence is driven by transmission of culture. In most regions that were already part of Poland before World War II, the relationship between historical and current levels of entrepreneurship is not significant. Persistence of entrepreneurship is related to the historical success of regions, which we capture by the pre-war level of and self-employment in manufacturing industries, particularly in those that can be regarded as knowledge intensive. Our main conclusion is that persistence of entrepreneurship requires a certain level of successful economic development that we capture by the degree of industrialization in the early 20th century, but it does not necessarily require persistence of the local population. |
| Keywords: | Persistence, entrepreneurship, self-employment |
| JEL: | L26 M13 O1 O18 R11 |
| Date: | 2019–06–13 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2019-003&r=all |
| By: | Miroslav Gabrovski (University of Hawaii Manoa); Victor Ortego-Marti (Department of Economics, University of California Riverside) |
| Abstract: | This paper develops a business cycle model of the housing market with search frictions and entry of both buyers and sellers. The housing market exhibits a well-established cyclical component, which features three stylized facts: prices move in the same direction as sales and the number of houses for sale, but opposite to the time it takes to sell a house. These stylized facts imply that in the data housing vacancies and the number of buyers are positively correlated, i.e. that the Beveridge Curve is upward sloping. A baseline search and matching model of the housing market is unable to match these stylized facts because it inherently generates a downward sloping Beveridge Curve. With free entry of both buyers and sellers, our model reproduces the positive correlation between prices, sales and vacancies, and matches the stylized facts qualitatively and quantitatively. |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:ucr:wpaper:201911&r=all |
| By: | Gohl, Niklas |
| JEL: | R00 R21 R30 R31 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203557&r=all |
| By: | Clément Bosquet; Henry Overman |
| Abstract: | How much does where you were born influence your future earnings? Analysing data from the British Household Panel Survey, Clément Bosquet and Henry Overman reveal that, on average, someone born in London in the 1970s earns 6.6% more than someone born in Manchester and 9.3% more than someone born in Liverpool. |
| Keywords: | place of birth, spatial sorting, lifetime mobility |
| JEL: | J61 J62 R23 J31 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:567&r=all |
| By: | Mankart, Jochen; Ludwig, Alexander; Wiederholt, Mirko; Quintana, Jorge; Vellekoop, Nathanael |
| JEL: | D14 D84 D31 E21 E30 G21 R21 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203516&r=all |
| By: | TOKUI Joji |
| Abstract: | Drawing a scatter diagram between differences in service prices and productivity among Japanese regions reveals a positive correlation. Additionally, all students of international economics know of the famous Balassa-Samuelson Effect, which explains why poorer countries tend to have cheaper service prices than richer countries. The apparent resemblance of the two phenomena could justify naming the domestic phenomenon the regional Balassa-Samuelson effect. Are the economic mechanisms that achieve these phenomena the same in the domestic and international contexts? The international version of the Balassa-Samuelson effect explains the phenomenon by relying on the presumption that labor productivity of rich countries is much higher than that of poor countries in the tradable manufacturing sector, but not in the non-tradable service sector. Although this presumption seems to be realistic in the international context, it does not hold in the domestic context. When we compare domestic labor productivity between rich urban areas and the other areas, while the manufacturing sectors exhibit little difference in productivity, the service sectors exhibit a pronounced productivity gap. Therefore we consider two alternative hypotheses that may explain the regional Balassa-Samuelson effect: high land use costs or high labor costs in urban areas. To conduct this research we constructed consistent prefectural-level input-output tables, and estimated land use costs for each industry in each prefecture. We apply the Leontief price model and calculate regional price differences caused by differences in both land use cost and labor cost and we estimate a regression equation with regional service price index as dependent variable and calculated price differences caused by land use cost and by labor cost as explanatory variables. Using the estimated regression equation we decompose the sum of squares for the dependent variable into that related to land use cost and that related to labor cost, to find that the former account for only 20 percent and the latter account for 80 percent. Thus the impact on prices of high urban labor cost is more important in accounting for the regional Balassa-Samuelson effect. |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:19054&r=all |
| By: | Alessandro Avenali (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy); Tiziana D'Alfonso (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy); Alberto Nastasi (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy); Pierfrancesco Reverberi (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy) |
| Abstract: | Air transport and HSR are not simple competitors. Indeed, air and HSR services can be complements on long-haul routes served by connecting flights through a hub airport. This complementarity creates room for cooperation between airlines and HSR operators, particularly relating to international connecting passengers. Airport managers are also interested in such agreements since they affect, among others, air traffic volumes and the demand for slots on the part of the airlines. In this framework, we develop a theoretical model to study transport operators’ incentives to cooperate, and the strategic role of airports in facilitating or dampening airline-HSR cooperation via the airport per passenger fee. In our model, transport operators cooperate to offer a bundle of domestic HSR and international air services via a multimodal hub airport. We show that the scope for cooperation depends on two main factors, that is, the related sunk costs and mode substitution between air and HSR services. |
| Keywords: | Airline ; high speed rail ; cooperation ; competition ; airport per passenger fee ; sunk costs |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:aeg:report:2019-09&r=all |
| By: | Luca Farnia (FEEM); Laura Cavalli (FEEM); Sergio Vergalli (University of Brescia and FEEM) |
| Abstract: | In this paper we calculate the Italian Cities Sustainable Development Goals (SDGs) Composite Index potentially useful for policy analysis and dissemination of sustainable development at local level in Italy. Structured into several dimensions representing 16 out of 17 SDGs adopted by the United Nations at the end of September 2015, the index merges 53 available economic, social and environmental elementary indicators into a single composite dimension, highlighting a geographical and demographic heterogeneity within the country. By using the Spectral Value Decomposition technique, the index offers an urban focus of sustainability, showing some differences among the goals and the cities of Italy. Finally, it identifies the Goal concerning quality education and decent work and economic growth as the main key Goals for sustainability. |
| Keywords: | SDGs, Composite Index, Weighting, Correlation, Spectral Value Decomposition, Principal Component |
| JEL: | C4 O18 Q56 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2019.18&r=all |
| By: | Friberg, Richard (Stockholm School of Economics); Steen, Frode (Dept. of Economics, Norwegian School of Economics and Business Administration); Ulsaker, Simen A. (Dept. of Economics, Norwegian School of Economics and Business Administration) |
| Abstract: | This paper examines the effect of cross-border shopping on grocery demand in Norway using monthly store×category sales data from Norway’s largest grocery chain 2011-2016. The sensitivity of demand to foreign price is hump-shaped and greatest 30-60 minutes’ driving distance from the closest foreign store. Combining continuous demand, fixed costs of cross-border shopping and linear transport costs `a la Hotelling we show how this hump-shape can arise through a combination of intensive and extensive margins of cross-border shopping. Our conclusions are further supported by novel survey evidence and cross-border traffic data. |
| Keywords: | Cross-border shopping; competition in grocery markets; product differentiation |
| JEL: | F15 H73 L66 R20 |
| Date: | 2018–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhheco:2019_020&r=all |
| By: | Xuan Liang; Jiti Gao; Xiaodong Gong |
| Abstract: | This paper develops a time-varying coefficient spatial autoregressive panel data model with the individual fixed effects to capture the nonlinear effects of the regressors, which vary over the time. To effectively estimate the model, we propose a method that incorporates the nonparametric local linear method and the concentrated quasi-maximum likelihood estimation method to obtain consistent estimators for the spatial coefficient and the time-varying coefficient function. The asymptotic properties of these estimators are derived as well, showing the regular sqrt(NT)-rate of convergence for the parametric parameters and the common sqrt(NTh)-rate of convergence for the nonparametric component, respectively. Monte Carlo simulations are conducted to illustrate the finite sample performance of our proposed method. Meanwhile, we apply our method to study the Chinese labor productivity to identify the spatial influences and the time-varying spillover effects among 185 Chinese cities with comparison to the results on a subregion East China. |
| Keywords: | concentrated quasi-maximum likelihood estimation, local linear estimation, time–varying coefficient. |
| JEL: | C21 C23 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:msh:ebswps:2019-26&r=all |
| By: | Amelie F. Constant |
| Abstract: | This chapter provides a state-of-the-art literature review about research that aims to explain the return, repeat, circular and onward migration of the highly-skilled migrants around the world. After it describes the status quo in the knowledge economy and the international race for talent, it presents the relevant theories and concepts of migration in the social sciences and how these theories accommodate the phenomena of return, repeat and onward migration. A special section is devoted to selection. The chapter then summarizes, evaluates, and juxtaposes existing empirical evidence related to theoretical predictions. Observables such as education, income, gender and home country as well as unobservables such as ability, social capital and negotiating skills play a strong role in influencing return, repeat and onward migration decisions. Yet, there is no consensus on the direction of the effect. The chapter discusses shortcomings and limitations along with policy lessons. It concludes by highlighting holes in the literature and the need for better data. |
| Keywords: | return, circular, onward, international labor migration, knowledge economy, high-skilled, public policy |
| JEL: | F22 J15 J18 J20 J61 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7913&r=all |
| By: | NAKAMURA Ryohei |
| Abstract: | The traditional economic base model in the field of regional science contributes to identifying regional income producing industries and labor absorption. The economic base model has some conditional assumptions while it is quite tractable. Recently, papers by Moretti and others show significant regional multiplier effects of innovative jobs. They refocused on the traditional economic base model. However, their approach has several deficiencies concerning the identification of basic/non-basic industries and ambiguity of multiplier generating mechanisms. This paper focuses on regional specialization of knowledge intensive industries and creative jobs which are the driving forces of regional development in the framework of the economic base model. The estimations of regional economic multiplier in terms of employment are carried out using two-digit employment and three-digit job classification data at local municipality level with two-period data. Using these data, I explain regional differences by degree of specialization of knowledge intensive industries and creative workers. By doing this, I propose contemporary regional economic policy. Furthermore, by comparing multiplier effects at local municipality level and regional employment area level, benefits of municipal consolidation are shown. |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rpdpjp:19025&r=all |
| By: | Kathleen Cohen (Fondazione Eni Enrico Mattei and Student at John Hopkins University) |
| Abstract: | New mobility trends such as shared mobility, autonomous vehicles, and mobility as a service are poised to disrupt the way the world moves. Since transport behavior is rooted in human behavior, how these trends are adopted will be influenced by behavioral preferences as well as cultural trends. This literature review looks at the behavioral preferences that will influence the uptake and impact of new mobility in the three largest markets: the United States, Europe, and China. The author finds that factors such as cost, time, comfort, convenience, safety, identity creation, and environmental concern are all important in transport modal choice. Larger societal trends such as changing preferences amongst younger generations as well as differences between urban and rural riders will also influence uptake of new mobility. Ultimately, the sustainability of new mobility in terms of reduced emissions and congestion will depend upon the adoption of shared models over private car ownership, which will require behavioral changes that could be incentivized with smart public policy. |
| Keywords: | Mobility, Human Behavior, Transport, Sharing Mobility |
| JEL: | O O18 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2019.24&r=all |
| By: | Baur, Dirk |
| JEL: | D10 D31 D42 D63 E47 E58 R30 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203547&r=all |
| By: | Taisuke Kameda; Ryoichi Namba; Takayuki Tsuruga |
| Abstract: | Recent studies on fiscal policy use cross-sectional data and estimate local fiscal multipliers along with spillovers. This paper estimates local fiscal multipliers with spillovers using Japanese prefectural data comparable with the national accounts. We estimate the local fiscal multiplier on output to be 1.7 at the regional level. The regional fiscal multiplier consists of the prefecture-specific components and a component common across prefectures within the same region, which we interpret as the region-wide effect. Converting the latter component into the spillover, we find that the spillover is positive and small in size. We decompose the regional fiscal multiplier on output into multipliers on expenditure components. The regional fiscal multiplier on absorption exceeds 2.0 because of the crowding-in effect on consumption and investment. Moreover, we find that the spillover to absorption is considerable in contrast to the spillover to output. |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:1065&r=all |
| By: | Gornig, Martin; Schiersch, Alexander |
| JEL: | R11 R12 R15 D24 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203597&r=all |
| By: | Nguyen-Ones , Mai (Dept of Business and Management Science NHH); Steen, Frode (Dept. of Economics, Norwegian School of Economics and Business Administration) |
| Abstract: | We estimate a structural model to uncover the degree of competition in retail gasoline markets using daily station-level data on quantity and price from the Swedish market. The structural model enables us to consider key features on both the demand and supply side that are important when evaluating retailers’ ability to obtain market power. Endowed with station-level information on service level, contractual form and number of nearby stations, we take into account the main drivers of differentiation in the local market. Our findings suggest that retailers in general exercise significant intermediate levels of market power. Further, local station characteristics significantly affect to which extent stations are able to extract market power. Results are robust to different estimation methods. |
| Keywords: | Gasoline markets; market power; markup estimation; local market competition |
| JEL: | D22 L13 L25 L81 |
| Date: | 2018–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhheco:2019_021&r=all |
| By: | Dannemann, Bernhard C. |
| JEL: | I21 D62 C31 C18 D91 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203485&r=all |
| By: | Albertazzi, Ugo; Ongena, Steven; Fringuellotti, Fulvia |
| Abstract: | Why do residential mortgages carry a fixed or an adjustable interest rate? To answer this question we study unique data from 103 banks belonging to 73 different banking groups across twelve countries in the euro area. To explain the large cross-country and time variation observed, we distinguish between the conditions that determine the local demand for credit and the characteristics of banks that supply credit. As bank funding mostly occurs at the group level, we disentangle these two sets of factors by comparing the outcomes observed for the same banking group across the different countries. Local demand conditions dominate. In particular we find that the share of new loans with a fixed rate is larger when: (1) the historical volatility of inflation is lower, (2) the correlation between unemployment and the short-term interest rate is higher, (3) households' financial literacy is lower, and (4) the use of local mortgages to back covered bonds and mortgage-backed securities is more widespread. JEL Classification: F23, G21, G41 |
| Keywords: | cross-border banks, interest rate fixation, mortgages |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20192322&r=all |
| By: | Dauth, Wolfgang; Haller, Peter |
| JEL: | D90 J31 J64 R12 R40 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203611&r=all |
| By: | Niebuhr, Annekatrin; Peters, Jan Cornelius; Schmidke, Alex |
| JEL: | D22 O31 R12 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203584&r=all |
| By: | Haas, Astrid; Wani, Shahrukh |
| Abstract: | Developing countries today are home to all of the world’s thirty fastest-growing major cities — with sub-Saharan Africa home to twenty-one of these thirty. This rapid growth has made these cities the epicentre for the battle for national prosperity, a struggle whose outcome depends on the policy choices made by city leaders. Policy options which target the institutional arrangements of the city, by incentivising better governance outcomes, are a particularly powerful tool. Focusing on these institutional arrangements, this policy framing paper analyses policy options based on the synthesis of city-experiences and academic literature. |
| JEL: | N0 R14 J01 |
| Date: | 2019–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:102205&r=all |
| By: | Frenzel Baudisch, Coletta; Dresselhaus, Carolin |
| JEL: | H20 H22 H77 R33 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203494&r=all |
| By: | Iammarino, Simona; Guy, Frederick; Filippetti, Andrea |
| Abstract: | This paper investigates one particular aspect of human capital formation: the relative effectiveness of training, as reflected in its effect on the probability of securing continued employment during the recent financial crisis. It uses a panel of 3983 individuals for the period 2008–11 and focuses on how the effects of training differ between the South and the North of Italy and across workers with different levels of education. The most striking result is that the effect of training on continued employment is notably stronger in the South than in the North of the country. |
| Keywords: | training in employment; South and North of Italy; education; economic crisis; Intra-European Fellowship; FP7-PEOPLE-2011-IEF-298167-REGIO_SPIN; PIEF-GA-2011-298167 |
| JEL: | J2 R1 R23 |
| Date: | 2019–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:87466&r=all |
| By: | Schaffner, Sandra; Breidenbach, Philipp; Cohen, Jeffrey P. |
| JEL: | R3 R4 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203623&r=all |
| By: | Jongkwan Lee; Giovanni Peri; Vasil Yasenov |
| Abstract: | We examine the labor market consequences of an extensive campaign repatriating around 400,000 Mexicans in 1929-34. To identify a causal effect, we instrument county level repatriations with the existence of a railway line to Mexico interacted with the size of the Mexican communities in 1910. Using individual linked data we find that Mexican repatriations reduced employment of native incumbent workers and resulted in their occupational downgrading. However, using a repeated cross section of county level data, we find attenuated and non-significant employment effects and amplified wage downgrading. We show that this is due to selective in- and out-migration of natives. |
| JEL: | J15 J61 N22 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26399&r=all |
| By: | Michael Fritsch (Friedrich Schiller University Jena, School of Economics and Business Administration); Muhamed Kudic (University of Bremen, Faculty of Economics and Business) |
| Abstract: | From a macro perspective, inventor networks are characterized by rather stable structures. However, the high levels of fluidity of inventors and their ties found in reality contradicts this macro pattern. In order to explain these contradicting patterns, we zoom in on the intermediate group structures of co-patenting relationships found among inventors in German laser technology research over a period of 45 years. Our findings suggest that continuity of individual actors is not a key factor in maintaining structural stability of networks. Group level explorations indicate that the successor of an existing key player belonged to the exiting key player's ego-network, indicating that the group level provides a source of stability and functionality to the system. |
| Keywords: | Inventor network, network stability, key player analysis, innovation, laser technology |
| JEL: | D22 D85 L23 O3 |
| Date: | 2019–07–29 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2019-004&r=all |
| By: | Halse, Askill Harkjerr; Fridstrøm, Lasse |
| Abstract: | Is regional policy to blame for the negative economic return on many road projects, or can road investments give value for money also in remote areas? In Norway, a large majority of planned road projects have negative net benefits according to cost-benefit analysis (CBA). In this paper, we point at geographic characteristics that can explain this, comparing Norway with its neighbors Sweden and Denmark. We then show econometric evidence that such factors also explain a substantial part of the variation in the benefit-cost ratio within Norway. Projects in areas that are far from the largest cities or have difficult topography have lower net benefits. This implies that there is a trade-off between economic efficiency and investing in roads in rural areas with difficult topography. We also discuss the role of road design requirements, decision-making processes and the electoral system for road investment policy. |
| Keywords: | Cost-benefit analysis, road investments, regional policy, distributive politics |
| JEL: | D61 D7 D72 R42 |
| Date: | 2019–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:94389&r=all |
| By: | Trimborn, Timo; Schünemann, Johannes |
| JEL: | E62 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203577&r=all |
| By: | Krzysztof Karbownik; Umut Özek |
| Abstract: | Using a regression discontinuity design generated by school-entry cutoffs and school records from an anonymous district in Florida, we identify externalities in human capital production function arising from sibling spillovers. We find positive spillover effects from an older to a younger child in less affluent families and negative spillover effects from a younger to an older child in more affluent families. These results are consistent with direct spillovers dominating in economically disadvantaged families and with parental reinforcement in more affluent families. |
| JEL: | D13 I20 J13 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26411&r=all |
| By: | Riedel, Nadine; Strohmaier, Kristina; Lediga, Collen |
| JEL: | H7 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203500&r=all |
| By: | Kussel, Gerhard; Frondel, Manuel; Vance, Colin; Sommer, Stephan |
| JEL: | Q21 D12 R31 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203583&r=all |
| By: | Gustavo Joaquim; Bernardus Van Doornik |
| Abstract: | We estimate the effect of bank competition on financial and real variables. To do so, we use regional heterogeneous exposure to mergers and acquisitions (M&A) of large banks as an instrument for changes in competition of local banking markets in Brazil. We use detailed administrative data on loans and firms and a difference-in-differences empirical strategy that compares changes in outcomes for markets affected or not by the M&A episodes. We find that, following M&A episodes, spreads increase and lending decreases persistently in exposed markets relative to controls. We show that this is larger for more concentrated markets at the time of the M&A episode, and is unlikely to be driven by other factors, such as branch closures. We find that non-agricultural employment falls .2% for an increase of 1% in spreads. We develop a model of heterogeneous firms and concentration in the banking sector that is consistent with the micro evidence. In our model, the semi-elasticity of credit to lending rates is a sufficient statistic for the effect of concentration on output, which we estimate to be -3.17. Among other counterfactuals, we show that if Brazilian spreads fell to world levels, output would increase by approximately 5%. |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:bcb:wpaper:508&r=all |
| By: | Koch, Insa; Fransham, Mark James; Cant, Sarah; Ebrey, Jill; Glucksberg, Luna; Savage, Mike |
| Abstract: | The concept of polarisation, where the extremes of a distribution are growing and where there is a missing or shrinking ‘middle’, has attracted recent interest driven by concerns about the consequences of inequality in British society. This paper brings together evidence of economic, spatial and relational polarisation across four contrasting towns in the United Kingdom: Oldham, Margate, Oxford and Tunbridge Wells. Deploying a comparative community analysis, buttressed by quantitative framing, we demonstrate the need to recognise how local social processes vary amongst places that on the face of it display similar trends. We show how local polarisation plays out differently depending on whether it is driven ‘from above’ or ‘from below’. Across all four towns, we draw out how a ‘missing middle’ of intermediaries who might be able to play roles in cementing local relations poses a major challenge for political mobilisation in times of inequality |
| Keywords: | community studies; inequality; polarisation; segregation |
| JEL: | R00 P50 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:102216&r=all |
| By: | Emily P. Harvey; Dion R. J. O'Neale |
| Abstract: | Input Output (IO) tables provide a standardised way of looking at monetary flows between all industries in an economy. IO tables can be thought of as networks - with the nodes being different industries and the edges being the flows between them. We develop a network-based analysis to consider a multi-regional IO network at regional and subregional level within a country. We calculate both traditional matrix-based IO measures (e.g. 'multipliers') and new network theory-based measures at this higher spatial resolution. We contrast these methods with the results of a disruption model applied to the same IO data in order to demonstrate that betweenness centrality gives a good indication of flow on economic disruption, while eigenvector-type centrality measures give results comparable to traditional IO multipliers.We also show the effects of treating IO networks at different levels of spatial aggregation. |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1910.12498&r=all |
| By: | Gabriela Candeu (University of Sao Paulo, Brazil) |
| Abstract: | From the beginning of geographic thought, authors like Kant, Humboldt, and, Vidal de La Blache made reference to the necessity of the images in the construction of geographic thought. Nowadays,new interpretation of this correlation is worthwhile because of the intensity of images, and in this case, films that children and young people are exposed to daily, without necessarily understanding the geography behind the creation of these symbols and meanings. Due to this phenomenon, this research is based primarily on identifying the need to incorporate these languages into teaching, in a way that is not just illustrative. The need for this incorporation is to enable students to develop critical geographic thought around these constant images, while creating a closeness between the geographic content and the cultural life of students. The purposes of this practice were to provoke the student`s to make the act of watching a movie an exercise of geographic thought. The research was carried out with an extensive bibliographical investigation to support the practical part of the project executed in two schools in the city of São Paulo. At the conclusion, the potentialities of the work with cinematic language in geography education were evident, as well as an analysis of the main problems of this interdisciplinary practice. |
| Keywords: | geographic tought, geographic education, cinematic language, interdisciplinary practices |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:smo:epaper:029gc&r=all |
| By: | Rode, Johannes; Neugart, Michael |
| JEL: | D72 D78 H84 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203530&r=all |
| By: | Russell Golman; Aditi Jain; Sonica Saraf |
| Abstract: | Cultural trends and popularity cycles can be observed all around us, yet our theories of social influence and identity expression do not explain what perpetuates these complex, often unpredictable social dynamics. We propose a theory of social identity expression based on the opposing, but not mutually exclusive, motives to conform and to be unique among one's neighbors in a social network. We then model the social dynamics that arise from these motives. We find that the dynamics typically enter random walks or stochastic limit cycles rather than converging to a static equilibrium. We also prove that without social network structure or, alternatively, without the uniqueness motive, reasonable adaptive dynamics would necessarily converge to equilibrium. Thus, we show that nuanced psychological assumptions (recognizing preferences for uniqueness along with conformity) and realistic social network structure are both necessary for explaining how complex, unpredictable cultural trends emerge. |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1910.13385&r=all |
| By: | Kevin Lang; Kaiwen Leong; Huailu Li; Haibo Xu |
| Abstract: | We study roughly 11,000 loans from unlicensed moneylenders to over 1,000 borrowers in Singapore and provide basic information about this understudied market. Borrowers frequently expect to repay late. While lenders do rely on additional punishments to enforce loans, the primary cost of not repaying on time is compounding of a very high interest rate. We develop a very simple model of the relational contract between loan sharks and borrowers and use it to predict the effect of a crackdown on illegal moneylending. Consistent with our model, the crackdown raised the interest rate and lowered the size of loans. |
| JEL: | I28 I3 K42 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26400&r=all |
| By: | Muijs, Matthias; Bantle, Melissa |
| JEL: | D22 D40 D43 L10 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203564&r=all |
| By: | Markwardt, Gunther; Hecker, Lutz; Wätzold, Frank |
| JEL: | Q01 Q53 Q58 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203627&r=all |
| By: | Bindler, Anna (Department of Economics, School of Business, Economics and Law, Göteborg University); Hjalmarsson, Randi (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | We document persistent gender gaps favoring females in jury convictions and judge sentences in nearly 200 years of London trials, which are unexplained by case characteristics. We find that three sharp changes in punishment severity locally affected the size and nature of the gaps, but were generally not strong enough to offset their persistence. These local effects suggest a mechanism of taste-based discrimination (paternalism) where the all-male judiciary protected females from the harshest available punishment. |
| Keywords: | gender; gender gap; crime; verdict; sentencing; discrimination; history |
| JEL: | J16 K14 K40 N33 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0780&r=all |
| By: | Quis, Johanna Sophie; Bela, Anika; Heineck, Guido |
| JEL: | J24 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203631&r=all |
| By: | Pieter IJtsma; Sherrill Shaffer; Laura Spierdijk |
| Abstract: | This study investigates the effects of banking deregulation on county-level economic growth in the U.S. during the 1970–2000 period. Our main contribution to the literature is that we analyze both the direct and external effects of banking deregulation on local economic growth. For the regions South, West and Northeast, we find significantly positive long-run direct effects of intrastate branching deregulation on the expected growth rates of counties in the deregulated state itself, up to several percentage points. We also establish significantly positive long-run external effects on the expected growth rates of counties adjacent to the deregulated state, up to several tenths of percentage points. We do not find such robust effects for interstate banking deregulation. |
| Keywords: | U.S. banking deregulation, economic growth, externalities |
| JEL: | G21 G28 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2019-80&r=all |
| By: | Heesemann, Esther; Yakubenko, Slava |
| JEL: | I10 I18 D91 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203612&r=all |
| By: | Harms, Philipp; Steiner, Nils |
| JEL: | F16 F66 F68 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203506&r=all |
| By: | Hirsch, Patrick |
| JEL: | E32 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203633&r=all |
| By: | Franks, Max; Lessmann, Kai |
| JEL: | F20 H23 Q37 Q38 R13 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203560&r=all |
| By: | Ran Abramitzky; Leah Platt Boustan; Elisa Jácome; Santiago Pérez |
| Abstract: | Using millions of father-son pairs spanning more than 100 years of US history, we find that children of immigrants from nearly every sending country have higher rates of upward mobility than children of the US-born. Immigrants’ advantage is similar historically and today despite dramatic shifts in sending countries and US immigration policy. In the past, this advantage can be explained by immigrants moving to areas with better prospects for their children and by “under-placement” of the first generation in the income distribution. These findings are consistent with the “American Dream” view that even poorer immigrants can improve their children’s prospects. |
| JEL: | J15 J61 J62 N30 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26408&r=all |
| By: | Marian Kachniarz (Wroclaw University of Environmental and Life Sciences, Wroclaw, Poland); Zbigniew Piepiora (Wroclaw University of Environmental and Life Sciences, Wroclaw, Poland) |
| Abstract: | Urban functional areas usually extend beyond the city's administrative boundaries. As a result, there is a problem of coordinating effective public service provision between the city and its suburbs. A review of world experience shows that two institutional solutions are usually applied here – intercommunal cooperation or adaptation of administrative borders to the scope of the functional zone. However, the studies so far have not provided an answer as to which method is more effective. The objective of the paper is to compare the processes of adapting administrative borders to urban functional areas. The hypothesis was formulated that uniform management of the entire functional area favors effectiveness and institutional sustainability of public service provision. Princeton in the USA and Lubin in Poland were selected as case studies. Princeton is an example of successful administrative consolidation of the city with the surrounding rural commune, while in Lubin, unfortunately, such a project was not implemented. In the conclusion was found that inter-communal cooperation does not provide sustainable solutions and is exposed to cadenza changes of decision-makers. The most effective seems to be the consolidation of individuals, but its success depends on a very well prepared and transparent procedure. |
| Keywords: | urban functional area, administrative consolidation, public services, inter-communal cooperation |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:smo:epaper:007mk&r=all |
| By: | Stöhlker, Daniel |
| JEL: | H40 H72 D72 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203592&r=all |
| By: | Rößler, Christoph; Rusch, Hannes; Friehe, Tim |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203532&r=all |
| By: | Soretz, Susanne; Ott, Ingrid |
| JEL: | H10 E60 O40 R50 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203624&r=all |
| By: | Aksoy, Cevat; Poutvaara, Panu |
| JEL: | F22 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc19:203665&r=all |
| By: | Nanuli Okruashvili (IvaneJavakhishvili, Tbilisi, State University, Department of Marketing); Lela Bakhtadze (IvaneJavakhishvili, Tbilisi, State University,Department of international economics and economic teaching history) |
| Abstract: | The purpose of the presented paper is to analyze the impact of international migration processes on the labor market of Georgia, to develop methodological and practical recommendations on the basis of which the efficiency of the labor market will be increased. The authors of the work have identified the theoretical and practical, conceptual and organizational problems existing in the field of international migration, and worked out the specific ways of solving them.The article discusses the international migration processes of the new millennium, social, cultural and economic aspects of international migration and development in Georgia, the problems identified in the state regulation of labor migration, the scale of labor migration and the current state of its study. In the article, the authors reviewed the scope and current state of international migration, its impact on the Georgian labor market, long-term results of labor mobility. The goals , strengths and weaknesses of the migration policy of the Government of Georgiaare analyzed, the basic directions and mechanisms of its realization. It analyzes the fact that, only by effective marketing of the labor market, of the country will make maximum use of the global challenges, associated with international migration processes. The authors have estimated systems of specific measures that will ensure the effective functioning of the Georgian labor market in the growth of international migration and the full involvement of the country in integration processes. |
| Keywords: | International Business, International Migration, Labor Market, Migration Policy, Marketing of the Labor Market |
| JEL: | F00 F66 F22 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:9111470&r=all |
| By: | Iammarino, Simona |
| Abstract: | The transformations in the worldwide division of labour brought about by globalisation and technological change have shown an unintended negative effect, particularly evident in advanced economic systems: uneven spatial distribution of wealth and rising within-country inequality. Although the latter has featured prominently in recent academic and policy debates, in this paper we argue that the relevance of connectivity (here proxied by foreign capital investments, FDI) for regional economic development is still underestimated and suffers from a nation-biased perspective. As a consequence, the relationship between the spatial inequality spurred by the global division of labour and the changes in the structural advantages of regions remains to be fully understood in its implications for economic growth, territorial resilience and industrial policy. Furthermore, even though connectivity entails bi-directional links – i.e. with regions being simultaneously receivers and senders – attractiveness to foreign capital has long been at the centre of policy attention whilst internationalisation through investment abroad has been disregarded, and sometimes purposely ignored, in regional development policy agendas. We use three broad-brushed European case-studies to discuss some guiding principles for a place-sensitive regional policy eager to integrate the connectivity dimension in pursuing local economic development and territorial equity. |
| Keywords: | FDI; multinational enterprises; regions; connectivity; regional development policy |
| JEL: | F21 F23 O1 O52 R11 R58 |
| Date: | 2018–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:90285&r=all |