nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2020‒01‒20
67 papers chosen by
Steve Ross
University of Connecticut

  1. How responsive are housing markets in the OECD? Regional level estimates By Maria Chiara Cavalleri; Boris Cournède; Ezgi Özsöğüt
  2. Continuation of air services at Berlin-Tegel and its effects on rental prices By Breidenbach, Philipp; Cohen, Jeffrey P.; Schaffner, Sandra
  3. Evaluating State and Local Business Tax Incentives By Cailin R. Slattery; Owen M. Zidar
  4. Owner-Occupancy Fraud and Mortgage Performance By Ronel Elul; Aaron Payne; Sebatian Tilson
  5. Socioeconomic Status and Class Size in South African Secondary Schools By Timothy Köhler
  6. Place-Based Policies: principles and developing country applications By Anthony Venables; Gilles Duranton
  7. A measure of competitive access to destinations for comparing across multiple study regions By Allen, Jeff; Farber, Steven
  8. Sizing up transport poverty: A national scale accounting of low-income households suffering from inaccessibility in Canada, and what to do about it By Allen, Jeff; Farber, Steven
  9. The Closing of a Major Airport: Immediate and Longer-Term Housing Market Effects By Jeffrey P. Cohen; Cletus C. Coughlin; Jonas C. Crews; Stephen L. Ross
  10. The Morphology and Circuity of Walkable and Drivable Street Networks By Boeing, Geoff
  11. The promise of SA-SAMS & DDD data for tracking progression, repetition and drop-out By Servaas van der Berg; Chris van Wyk; Rebecca Selkirk; Kate Rich; Nicola Deghaye
  12. Performance Beyond Expectations: Academic Resilience in South Africa By Heleen Hofmeyr
  13. Measuring the Complexity of Urban Form and Design By Boeing, Geoff
  14. Housing insecurity, homelessness and populism: Evidence from the UK By Fetzer, Thiemo; Sen, Srinjoy; Souza, Pedro CL
  15. The spatial dimension of productivity: Connecting the dots across industries, firms and places By Alexandra Tsvetkova; Rudiger Ahrend; Joaquim Oliveira Martins; Alexander C. Lembcke; Polina Knutsson; Dylan Jong; Nikolaos Terzidis
  16. Does a positive density perception increase the probability of living in the ideal housing type? Evidence from the Loire-Atlantique Département in France By Rémy Le Boennec; Sterenn Lucas
  17. Small-City Gay Bars, Big-City Urbanism By Mattson, Greggor
  18. Does Social Policy through Rent Controls Inhibit New Construction? Some Answers from Long-Run Historical Evidence By Konstantin A. Kholodilin; Sebastian Kohl
  19. From Planning the Port/City to Planning the Port-City. Exploring the Economic Interface in European Port Cities By Van den Berghe, Karel; Daamen, Tom
  20. The MARS Algorithm in the Spatial Framework: Non-Linearities and Spatial Effects in Hedonic Models By Fernando A. López; Konstantin A. Kholodilin
  21. Crowdsourcing Bike Share Station Locations: Evaluating participation and placement By Griffin, Greg Phillip; Jiao, Junfeng
  22. Regional disparities in development in Morocco: Statistical analyses using dispersion indicators and multidimensional techniques By Bakour, Chafik; Abahamid, Mohamed Yassine
  23. Which Night Lights Data Should we Use in Economics, and Where? By Gibson, John; Olivia, Susan; Boe-Gibson, Geua
  24. The period effect: the effect of menstruation on absenteeism of school girls in Limpopo By Chloé van Biljon; Cobus Burger
  25. The Elusive Quest for the Holy Grail of an Impact of EU Funds on Regional Growth By Jan Fidrmuc; Martin Hulényi; Olga Zajkowska
  26. Towards a genuinely humanizing smart urbanism By Kitchin, Rob
  27. Blowing in the wind? The effect of weather on the intensity and spatial distribution of crime By Hart, Rannveig; Pedersen, Willy; Skardhamar, Torbjørn
  28. The potential of new technologies to disrupt housing policy By Pettit, Christopher; Crommelin, Laura; Sharam, Andrea; Hulse, Kath; Hayward, Richard Donald
  29. The Effect of Tightness on Wages at the Regional Level in Three Central European Countries By Lajos Tamás Szabó
  30. Macroprudential Policies and House Prices in Europe By Marco Arena; Tingyun Chen; Seung M Choi; Nan Geng; Cheikh A. Gueye; Tonny Lybek; Evan Papageorgiou; Yuanyan Sophia Zhang
  31. Reading Performance and Math Performance of Second-Generation Children in Italy By Mariagrazia Cavallo; Giuseppe Russo
  32. Public opposition and the neighborhood effect: how social interaction explains protest against a large infrastructure project By Coppens, Tom; Van Dooren, Wouter; Thijssen, Peter
  33. The Geography and Equity of Crowdsourced Public Participation for Active Transportation Planning By Griffin, Greg Phillip; Jiao, Junfeng
  34. Housing Investment, Stock Market Participation and Household Portfolio choice: Evidence from China's Urban Areas By Huirong Liu
  35. From Product Concentration to Local Labor Market Outcomes: The Effect on Industry Wages By Petkov, Ivan
  36. A Grid Based Approach to Analysing Spatial Weighting Matrix Specification By Rahal, Charles
  37. A factor analysis of business start-up rates in Japan: contemporary and historical context By Nobuo Kobayashi
  38. Fiscal Illusion and Progressive Taxation with Retrospective Voting By Abatemarco, Antonio; Dell'Anno, Roberto
  39. Decomposing the Societal Opportunity Costs of Property Crime By Compton, Andrew
  40. Human-Capital Formation During Childhood and Adolescence: Evidence from School Quality and Postsecondary Success in California By Naven, Matthew
  41. Does Halting Refugee Resettlement Reduce Crime? Evidence from the United States Refugee Ban By Masterson, Daniel; Yasenov, Vasil
  42. Optimal Taxation under Regional Inequality By Sebastian G. Kessing; Vilen Lipatov; J. Malte Zoubek
  43. Street Network Models and Measures for Every U.S. City, County, Urbanized Area, Census Tract, and Zillow-Defined Neighborhood By Boeing, Geoff
  44. Trade and Institutions: Explaining Urban Giants By Fabien Candau; Tchapo Gbandi
  45. The Effectiveness of EC Policies to Move Freight from Road to Rail: Evidence from CEE Grain Markets By Russell Pittman; Monika Jandová; Marcin Król; Larysa Nekrasenko; Tomáš Paleta
  46. Diversity, Immigration, and Redistribution By Alberto F. Alesina; Stefanie Stantcheva
  47. A Branch-and-Cut Algorithm for the Soft-Clustered Vehicle-Routing Problem By Katrin Heßler; Stefan Irnich
  48. Bidirectional labeling for solving vehicle routing and truck driver scheduling problems By Christian Tilk; Asvin Goel
  49. Strengthening the Community Reinvestment Act by Staying True to Its Core Purpose : A speech at the Urban Institute, Washington, D.C., January 8, 2020. By Lael Brainard
  50. Environmental behaviour and choice of sustainable travel mode in urban areas: comparative evidence from commuters in Asian cities By Kumagai, Junya; Managi, Shunsuke
  51. Technological disruption in private housing markets: the case of Airbnb By Crommelin, Laura; Troy, Laurence; Martin, Chris; Parkinson, Sharon; Hayward, Richard Donald
  52. Fixed-effect regressions on network data By Koen Jochmans; Martin Weidner
  53. Search-for-Yield under Prolonged Monetary Easing and Aging By Yoshiaki Ogura
  54. Be (and have) good neighbours! Factors of vulnerability in the case of multiple hazards By Pagliacci, Francesco; Russo, Margherita
  55. A conceptual analysis of social housing as infrastructure By Flanagan, Kathleen; Martin, Chris; Jacobs, Keith; Lawson, Julie; Hayward, Richard Donald
  56. Social housing as infrastructure: an investment pathway By Lawson, Julie; Pawson, Hal; Troy, Laurence; van den Nouwelant, Ryan; Hamilton, Carrie; Hayward, Richard Donald
  57. IFAD RESEARCH SERIES 42 What drives rural youth welfare? The role of spatial, economic, and household factors By Arslan, Aslihan; Tschirley,David; Egger, Eva-Maria
  58. Socially Constructing a Moral Utopia: Representing Rural Spaces and Places in American Movies about HIV/AIDS By Kylo-Patrick Hart
  59. Market Functioning & Market Integration in EU Network Industries – Telecommunications, Energy & Transport By Martijn Brons; Fotios Kalantzis; Lucia Vergano
  60. The Simplified Mortgage and Recorded Title ('SMART') Act of 2019 By Hockett, Robert C.; Library, Cornell
  61. Spatial Analysis on German Economic Structure and Its Changes in Time By Simona Macková
  62. Is There a Link Between Air Pollution and Impaired Memory? Evidence on 34,000 English Citizens By Powdthavee, Nattavudh; Oswald, Andrew J.
  63. What is the Impact of Increased Business Competition? By Sonia Feliz; Chiara Maggi
  64. Understanding the disruptive technology ecosystem in Australian urban and housing contexts: a roadmap By Pettit, Christopher; Liu, Edgar; Rennie, Ellie; Goldenfein, Jake; Glackin, Stephen; Hayward, Richard Donald
  65. A sequential bargaining protocol for land rental arrangements By Valencia-Toledo, Alfredo; Vidal-Puga, Juan
  66. Housing, homelessness and mental health: towards systems change By Brackertz, Nicola; Wilkinson, Alex; Davison, Jim; Hayward, Richard Donald
  67. Leaving the Tub: the Nature and Dynamics of Hypercongestion in a Bathtub Model with a Restricted Downstream Exit By Yue Bao; Erik T. Verhoef; Paul Koster

  1. By: Maria Chiara Cavalleri; Boris Cournède; Ezgi Özsöğüt
    Abstract: Making housing more affordable ranks high on the policy agenda across the world. One way to achieve affordable housing is to ensure sufficiently elastic supply of the housing stock in response to demand shocks. This paper aims at disentangling policy from non-policy drivers in explaining cross-regional differences in housing supply elasticities. It uses GIS data to account for the presence of natural and man-made obstacles to residential construction in functional urban areas across the 12 OECD countries that provide sufficiently long time series for regional house prices. The results suggest that the presence of water, steep land, parks and high-density urban areas all restrict the supply of housing. However, there remain very large differences in supply elasticities across countries, which corroborates the finding from national analysis that policies have a strong influence.
    Keywords: housing supply, land use policy, rent regulation
    JEL: H7 R14 R31 R52
    Date: 2019–12–20
  2. By: Breidenbach, Philipp; Cohen, Jeffrey P.; Schaffner, Sandra
    Abstract: Berlin-Brandenburg airport (BER) has become well-known far beyond German borders due to substantial mis-planning and heavy delays in opening. Planned to open in March 2012 and to take over all air-transport services from Germany's capital city, with the other airports expected to close, construction work at BER is still ongoing in 2019. Four weeks before the expected opening of the airport, the opening was suddenly delayed by several months. This unexpected delay was an exogeneous shock for residents surrounding the largest existing airport, Berlin-Tegel, which is expected to close upon the opening of Berlin-Brandenburg. A series of additional delay announcements followed. We analyze the effect of airport noise and proximity to the airport on housing rental prices. Our identification strategy is based on the expectations regarding the closing of Berlin-Tegel airport. The results suggest that there is a negative effect of noise on housing rental prices while there are positive effects of proximity to Berlin-Tegel. These delays reduce rental prices by a small amount, when compared with the noise discounts in the literature for owner-occupied properties in studies of other cities. These findings likely occur because renters have a relatively short time horizon for their tenure in an apartment, on average, to benefit from the future noise reduction. For instance, a one-year delay for a renter who plans to stay in an apartment for only one or two years implies a very low benefit from the future noise reduction. We also find that the benefits from a delay announcement have a net negative effect on prices for rental properties that are in the noisier areas but further drive time from Tegel; and a net positive effect in the less noisy areas that are shorter drive time from Tegel. This likely re flects the disamenity from prolonged airport noise exposure, as well as the benefits from proximity due to expectation of continued ease of employment and travel access.
    Keywords: real estate prices,airports,aviation noise,proximity,Germany
    JEL: R3 R4
    Date: 2019
  3. By: Cailin R. Slattery; Owen M. Zidar
    Abstract: This essay describes and evaluates state and local business tax incentives in the United States. In 2014, states spent between $5 and $216 per capita on incentives for firms in the form of firm-specific subsidies and general tax credits, which mostly target investment, job creation, and research and development. Collectively, these incentives amounted to nearly 40% of state corporate tax revenues for the typical state, but some states' incentive spending exceeded their corporate tax revenues. States with higher per capita incentives tend to have higher state corporate tax rates. Recipients of firm-specific incentives are usually large establishments in manufacturing, technology, and high-skilled service industries, and the average discretionary subsidy is $178M for 1,500 promised jobs. Firms tend to accept subsidy deals from places that are richer, larger, and more urban than the average county, and poor places provide larger incentives and spend more per job. Comparing “winning” and runner-up locations for each deal in a bigger and more recent sample than in prior work, we find that average employment within the 3-digit industry of the deal increases by roughly 1,500 jobs. While we find some evidence of direct employment gains from attracting a firm, we do not find strong evidence that firm-specific tax incentives increase broader economic growth at the state and local level. Although these incentives are often intended to attract and retain high-spillover firms, the evidence on spillovers and productivity effects of incentives appears mixed. As subsidy-giving has become more prevalent, subsidies are no longer as closely tied to firm investment. If subsidy deals do not lead to high spillovers, justifying these incentives requires substantial equity gains, which are also unclear empirically.
    JEL: H2 H25 H71 R11 R3 R5
    Date: 2020–01
  4. By: Ronel Elul (Federal Reserve Bank); Aaron Payne; Sebatian Tilson
    Abstract: We use a matched credit bureau and mortgage dataset to identify occupancy fraud in residential mortgage originations, that is, borrowers who misrepresented their occupancy status as owner-occupants rather than residential real estate investors. In contrast to previous studies, our dataset allows us to show that – during the housing bubble – such fraud was broad based, appearing in the government-sponsored enterprise market and in loans held on bank portfolios as well, and increases the effective share of investors by 50 percent. We show that a key benefit of investor fraud was obtaining a lower interest rate, particularly for riskier borrowers. Mortgage borrowers who misrepresented their occupancy status performed substantially worse than otherwise similar owner-occupants and declared investors, and constituted one-sixth of the share of loans in default by the end of 2008. We show that these defaults were also significantly more likely to be “strategic,” further highlighting the contribution of fraud in the housing bust.
    Keywords: mortgage default; consumer credit; household finance; misreporting; fraud
    JEL: D12 R3
    Date: 2019–12–17
  5. By: Timothy Köhler (Development Policy Research Unit, University of Cape Town)
    Abstract: The reduction of class size is frequently argued to be a relatively simple, cost-effective way to improve learner outcomes in a wide array of contexts. However, methodological concerns regarding the appropriate use of observational data and endogeneity have led to a lack of consensus on this relationship in the literature. In the South African context, most studies which use observational data conclude that on average, greater class sizes are associated with poorer educational outcomes. However, given the country's well-documented bimodal education system, it is plausible to believe that such a relationship may depend on where learners finds themselves in the system. Specifically, given that class size is highly correlated with other measures of school quality, one may not find a significant relationship once such characteristics are accounted for. In this light, this paper merges newly available, school-level data from the 2017/18 School Monitoring Survey with external administrative data to investigate whether the relationship between secondary school class size and learner outcomes varies by school socioeconomic status. Using several learner outcome measures, the findings suggest that although extreme class sizes are concentrated in poorer schools, class size is only negatively associated with learner outcomes in wealthier schools. This does not imply that class size does not matter. Rather, variation in class size appears to be merely indicative of other important factors in poorer quality schools which influence learner outcomes. This suggests that a class size reduction policy may only be effective once other factors relating to school quality are addressed.
    Keywords: South Africa, class size, learner outcomes, education, human capital, school quality
    JEL: I20 I21 I24 I28
    Date: 2020
  6. By: Anthony Venables; Gilles Duranton
    Abstract: Many development policies, such as placement of infrastructure or local economic development schemes, are “place-based.†Such policies are generally intended to stimulate private sector investment and economic growth in the treated place, and as such they are difficult to appraise and evaluate. This paper sets the rationale for place-based policies and a framework for analyzing their effects and assessing their social value. It then reviews the literature on place-based policies in the contexts of special economic zones, transport policy, lagging regions, and local economic development policies.
    Keywords: Place-based policies, spatial, economic corridors, lagging regions
    JEL: O10 O18 R10 R11 R13
    Date: 2019–12–18
  7. By: Allen, Jeff (University of Toronto); Farber, Steven
    Abstract: Accessibility is now a common way to measure the benefits provided by transportation–land use systems. Despite its widespread use, few measurement options allow for the comparison of accessibility across multiple urban systems, and most do not adequately control for market competition between demand‐side actors and supply‐side facilities in localized markets. In this article, we develop a measure of competitive access to destinations that can be used to accurately compare accessibility between regions. This measure stems from spatial interaction modeling and accounts for competition at both the supply and demand sides of analysis, regional differences in transportation networks and travel behavior, and any imbalance between the size of the population and the number of opportunities. We use this method to compute access to employment for Canada's eight largest cities to comparatively examine inequalities in accessibility, both within and between cities, and by travel mode.
    Date: 2019–01–07
  8. By: Allen, Jeff (University of Toronto); Farber, Steven
    Abstract: Millions of Canadians rely on public transportation to conduct daily activities and participate in the labour force. However, many low-income households are disadvantaged because existing public transit service does not provide them with sufficient access to destinations. Limited transit options, compounded with socioeconomic disadvantage, can result in transport poverty, preventing travel to important destinations, like employment opportunities. Given the growing gentrification of Canadian downtowns and the dispersion of poverty into Canadian suburbs, the time is right for a national accounting of those living in transport poverty, and the development of a national transport and land use strategy for alleviating the risks of accessibility deprivation. Accordingly, in this paper we measure and analyze vertical inequalities in access to employment in Canadian cities in order to estimate how many, where, and to what extent, Canadians are at risk of transport poverty. We make use of open transit network data and cutting edge accessibility measurement methods to generate comparative scores suitable for a national-scale analysis. We find that in aggregate, lower income neighbourhoods tend to have better levels of transit accessibility. But despite this overall positive outlook, there are still nearly one million low-income individuals living in urban areas with low transit accessibility. We summarize our findings by generating descriptive typologies for areas vulnerable to transport poverty which are then used to develop and recommend planning strategies to reduce inequalities.
    Date: 2019–01–18
  9. By: Jeffrey P. Cohen (National Bureau of Economic Research; University of Connecticut; University of Texas at Austin; UT Austin); Cletus C. Coughlin (Board of Governors of the Federal Reserve System (U.S.)); Jonas C. Crews; Stephen L. Ross (National Bureau of Economic Research; University of Connecticut; Department of Public Policy; Center for Real Estate and Urban Economic Studies; Massachusetts Institute of Technology; Center for Population Research)
    Abstract: The closing of a busy airport has large effects on noise and economic activity. Using a unique dataset, we examine the effects of closing Denver’s Stapleton Airport on nearby housing markets. We find evidence of immediate anticipatory price effects upon announcement, but no price changes at closing likely because closing was widely anticipated. Further, after airport closure, high income and white households moved into these locations and developers upgraded the quality of houses being built. Finally, post-closing, these demographic and housing stock changes had substantial effects on housing prices, even after restricting the sample to pre-existing housing.
    Keywords: Airport noise; housing prices; airport closing; anticipatory effects; long-term effects; neighborhood change; dynamic price effects
    JEL: G14 R21 R31 R41
    Date: 2020–01–08
  10. By: Boeing, Geoff (Northeastern University)
    Abstract: Circuity, the ratio of network distances to straight-line distances, is an important measure of urban street network structure and transportation efficiency. Circuity results from a circulation network's configuration, planning, and underlying terrain. In turn, it impacts how humans use urban space for settlement and travel. Although past research has examined overall street network circuity, researchers have not studied the relative circuity of walkable versus drivable circulation networks. This study uses OpenStreetMap data to explore relative network circuity. We download walkable and drivable networks for 40 US cities using the OSMnx software, which we then use to simulate four million routes and analyze circuity to characterize network structure. We find that walking networks tend to allow for more direct routes than driving networks do in most cities: average driving circuity exceeds average walking circuity in all but four of the cities that exhibit statistically significant differences between network types. We discuss various reasons for this phenomenon, illustrated with case studies. Network circuity also varies substantially between different types of places. These findings underscore the value of using network-based distances and times rather than straight-line when studying urban travel and access. They also suggest the importance of differentiating between walkable and drivable circulation networks when modeling and characterizing urban street networks: although different modes' networks overlap in any given city, their relative structure and performance vary in most cities.
    Date: 2019–01–28
  11. By: Servaas van der Berg (Department of Economics, Stellenbosch University); Chris van Wyk (Department of Economics, Stellenbosch University); Rebecca Selkirk (Department of Economics, Stellenbosch University); Kate Rich (Department of Economics, Stellenbosch University); Nicola Deghaye (Department of Economics, Stellenbosch University)
    Abstract: This paper analyses the SA-SAMS school administration data that the Michael and Susan Dell Foundation in partnership with the Department of Basic Education collects quarterly from schools in order to assess its usefulness for better understanding the school system. The disaggregated SA-SAMS data housed in the Data Driven Districts operational data store is typically provided in the form of data dashboards for analytical purposes to the education authorities. Although only non-random samples of the data are available in longitudinal form, the analysis shows that this can already be used to investigate important relationships and features of the education system. These include the relationship between performance in earlier grades and performance in matric, the relationship between performance, repetition and subsequent dropout, the choice between Mathematics and Mathematical Literacy, and the utility of using school-based assessments in investigating later educational outcomes. The SA-SAMS data also contains much better information on the number of disabled learners in schools than previous Annual Survey of Schools (ASS or EMIS) data. Expanding such analysis in the future with lengthened longitudinal data and larger samples as data collection improves should be very fruitful for an improved understanding of the school system.
    Keywords: South Africa, education, educational outcomes, longitudinal data, school-based assessment, school dropout, repetition
    JEL: I21 I24 I25 O12 C81
    Date: 2019
  12. By: Heleen Hofmeyr (Department of Economics, Stellenbosch University)
    Abstract: Socio-economic status and educational outcomes are strongly linked across countries and education systems. However, a growing body of research documents the existence of students from disadvantaged socio-economic backgrounds who manage to achieve exceptional academic results. The present study, located in the South African context, uses data from the Progress In Reading Literacy Study (PIRLS) 2016 and the Trends in Mathematics and Science Study (TIMSS) 2015 to explore the factors at the individual and institutional level that are associated with exceptional academic performance in the face of socio-economic disadvantage The first research objective is to identify academically resilient students in the PIRLS 2016 and TIMSS 2015 datasets. I consider how these students are distributed across schools of differing quality, and how they perform relative to the median student in their school. My second research objective explores the ways in which these students differ systematically from their lower-achieving peers. The analytical strategy employed aims to identify factors at the level of the individual and the school that are associated with unusually high results in the absence of crucial inputs such as an affluent home background. Contributing to a growing body of literature that finds associations between student attitudes and academic achievement using large-scale assessment data, I find that the probability of exceptional reading performance in Grade 4 and mathematics performance in Grade 9 in South Africa is also strongly related to these variables. Like a number of existing studies, I find that the constructs aimed at capturing self-confidence, in particular, are strongly associated with the probability of academic resilience in both PIRLS and TIMSS.
    Keywords: Resilience, student attitudes, literacy, mathematics, challenging contexts
    JEL: I20 I21 I24 I29
    Date: 2019
  13. By: Boeing, Geoff (Northeastern University)
    Abstract: Complex systems have become a popular lens for analyzing cities and complexity theory has many implications for urban performance and resilience. This paper develops a typology of measures and indicators for assessing the physical complexity of the built environment at the scale of urban design. It extends quantitative measures from city planning, network science, ecosystems studies, fractal geometry, statistical physics, and information theory to the analysis of urban form and qualitative human experience. Metrics at multiple scales are scattered throughout diverse bodies of literature and have useful applications in analyzing the adaptive complexity that both evolves and results from local design processes. In turn, they enable urban designers to assess resilience, adaptability, connectedness, and livability with an advanced toolkit. The typology developed here applies to empirical research of various neighborhood types and design standards. It includes temporal, visual, spatial, scaling, and connectivity measures of the urban form. Today, prominent urban design movements openly embrace complexity but must move beyond inspiration and metaphor to formalize what "complexity" is and how we can use it to assess both the world as-is as well as proposals for how it could be instead.
    Date: 2018–10–03
  14. By: Fetzer, Thiemo (University of Warwick); Sen, Srinjoy (University of Warwick); Souza, Pedro CL (University of Warwick)
    Abstract: Homelessness and precarious living conditions are on the rise across much of the Western world. This paper exploits exogenous variation in the affordability of rents due to a cut that substantially lowered housing benefit – a welfare benefit aimed at helping low income households pay rent. Before April 2011, local housing allowance covered up to the median level of market rents; from April 2011 onwards, only rents lower than the 30th percentile were covered. We exploit that the extent of cuts significantly depend on statistical noise due to estimation of percentiles. We document that the affordability shock caused a significant increase in: evictions; individual bankruptcies; property crimes; share of households living in insecure temporary accommodation; statutory homelessness and actual rough sleeping. The fiscal savings of the cut are much smaller than anticipated. We estimate that for every pound saved by the central government, council spending to meet statutory obligations for homelessness prevention increases by 53 pence. We further document political effects: the housing benefit cut causes lower electoral registration rates and is associated with lower turnout and higher support for Leave in the 2016 EU referendum, most likely driven by its unequal impact on the composition of those that engage with democratic processes.
    Keywords: housing markets, welfare cuts, austerity, voting JEL Classification: H2, H3, H5, P16, D72
    Date: 2019
  15. By: Alexandra Tsvetkova; Rudiger Ahrend; Joaquim Oliveira Martins; Alexander C. Lembcke; Polina Knutsson; Dylan Jong; Nikolaos Terzidis
    Abstract: This working paper offers a synthesis of the current knowledge on the determinants of productivity. It carefully reviews both “spatial” (e.g. agglomerations, infrastructure, geography) and “aspatial” (e.g. human capital, labour regulations, industry-level innovation and dynamism) productivity drivers and demonstrates how the underlying spatial dynamics behind the latter group makes all productivity determinants “spatial” in nature. The paper demonstrates that productivity is inherently a spatial phenomenon and its understanding without a local/regional dimension is incomplete.
    Keywords: cities, firms, industries, local development, places, productivity growth, regions, spatial productivity
    JEL: R11 R12 R58
    Date: 2020–01–13
  16. By: Rémy Le Boennec; Sterenn Lucas
    Abstract: What does the ideal housing type look like? A 2015 online survey of individuals living in the Loire-Atlantique Département in France provided 1,134 interviews, which we analyze using a mixed-effect probit model. We look at the probability of living in the ideal housing type related to 28 variables of dwelling and respondent characteristics, density perception, district perception, type of municipality, and proximity to education, healthcare and food facilities. The issue is important because certain housing types yield greater land consumption and longer trips. Local governments support infill developments with higher built-up density levels to conserve land and support walking, cycling, and transit. We find that the probability of living in the ideal housing type has no relationship to density perception. What matters is a positive district perception and proximity to healthcare. Well-designed infill development with higher built-up density levels can succeed, associating a higher probability of living in the ideal housing type with suitable urban forms given the physical constraints of territories, in a sustainable development framework.
    Keywords: housing type, density perception, district perception, built-up density, mixed-effect probit model
    JEL: R31 R14 R28 C25 D62
    Date: 2020
  17. By: Mattson, Greggor (Oberlin College)
    Abstract: Despite the widely hailed importance of gay bars, what we know about them in the U.S. comes from outliers: gay neighborhoods in four big cities. This essay explores the similarities of 52 small-city gay bars to each other, and their differences from big-city gayborhood bars. Small-city gay bars are surprisingly integrated with straight people in their often red-state communities and are as racially diverse than the counties in which they reside. They are subcultural amenities not just for LGBT people but for straights as well, fostering cosmopolitan lifestyles for large geographical regions. I conclude with an argument for the importance of small cities to understand urbanism generally. Small cities are a key analytic object to disentangle urban effects from modern life generally. They reveal the way in which contemporary urban scholars often implicitly define urbanism in terms of commercial diversity at the expense of the reasons why many people prefer to live in small cities: proximity to kin or nature, and the fact that most big-city pleasures can be found everywhere. Studying small cities provides one way of integrating studies along the urban-rural interface and developing a more holistic, empirically rich, and theoretically sound sociology of place.
    Date: 2019–01–31
  18. By: Konstantin A. Kholodilin; Sebastian Kohl
    Abstract: The (re-)introduction of rent regulation in the form of rent controls, tenant protection or supply rationing is back on the agenda of policymakers in light of rent inflation in many global cities. While rent control as social policy promises short-term relief, economists point to their negative long-run effects on new construction. This paper present long-run data on both rent regulation and housing construction for 16 developed countries (1910-2017) and 44 developing countries since the 1980s to confirm the economists’ view generally, albeit with certain reservations. The negative effect of regulation can be offset by exemptions for new construction, by compensating government construction and by a flight of new construction into the owner-occupied sector. The overall magnitude of the effect is therefore not as high as expected and shows non-linearities. But, although rent control is usually introduced with good social-policy intentions, it generally risks to crowd out its object of regulation through inhibiting new construction.
    Keywords: Residential construction, rent control, tenure security, housing rationing, panel data model
    JEL: C23 O18 R38
    Date: 2020
  19. By: Van den Berghe, Karel; Daamen, Tom
    Abstract: In last three decades, planning agencies of most ports have institutionally evolved into a (semi-) independent port authority. The rationale behind this process is that port authorities are able to react more quickly to changing logistical and spatial preferences of maritime firms, hence increasing the competitiveness of ports. Although these dedicated port authorities have proven to be largely successful, new economic, social, and environmental challenges are quickly catching up on these port governance models, and particularly leads to (spatial) policy ‘conflicts’ between port and city. This chapter starts by assessing this conflict and argue that the conflict is partly a result of dominant—often also academic—spatial representations of the port city as two separate entities. To escape this divisive conception of contemporary port cities, this chapter presents a relational visualisation method that is able to analyse the economic interface between port and city. Based on our results, we reflect back on our proposition and argue that the core challenge today for researchers and policy makers is acknowledging the bias of port/city, being arguably a self-fulfilling prophecy. Hence, we turn the idea of (planning the) port/city conflicts into planning the port-city’s strengths and weaknesses.
    Date: 2019–12–18
  20. By: Fernando A. López; Konstantin A. Kholodilin
    Abstract: Multivariate Adaptive Regression Spline (MARS) is a simple and powerful non-parametric technique that automatizes the selection of non-linear terms in regression models. Non-linearities and spatial effects are natural characteristics in numerous spatial hedonic pricing models. In this paper, we propose using the MARS data-driven methodology combined with the Instrumental Variables method in order to account for potential non-linearities and spatial effects in hedonic models. Using a large data set of more than 6,000 dwellings in Hamburg and about 17,000 in St. Petersburg, we confirm the presence of both effects (non-linearities and spatial autocorrelation). The results also show that there is a non-linear effect of the prices of neighboring houses on the price of each house. High prices for neighboring houses have a lower impact on the house price than low prices of neighboring houses. Finally, an extensive Monte Carlo exercise evaluates the ability of MARS to incorporate the correct spatial spillover terms in spatial regression models simultaneously including at same time non-linear effects.
    Keywords: Multivariate Adaptive Regression Spline, spatial regression models, hedonic models, price house, Hamburg, St. Petersburg
    JEL: C4 C5 R1
    Date: 2020
  21. By: Griffin, Greg Phillip (Texas A&M Transportation Institute); Jiao, Junfeng
    Abstract: Problem, research strategy, and findings: Planners increasingly involve stakeholders in co-producing vital planning information by crowdsourcing data using online map-based commenting platforms. Few studies, however, investigate the role and impact of such online platforms on planning outcomes. We evaluate the impact of participant input via a public participation geographic information system (PPGIS), a platform to suggest the placement of new bike share stations in New York City (NY) and Chicago (IL). We conducted 2 analyses to evaluate how close planners built new bike share stations to those suggested on PPGIS platforms. According to our proximity analysis, only a small percentage of built stations were within 100 feet (30 m) of suggested stations, but our geospatial analysis showed a substantial clustering of suggested and built stations in both cities that was not likely due to random distribution. We found that the PPGIS platforms have great promise for creating genuine co-production of planning knowledge and insights and that system planners did take account of the suggestions offered online. We did not, however, interview planners in either system, and both cities may be atypical, as is bike share planning; moreover, multiple factors influence where bike stations can be located, so not all suggested stations could be built. Takeaway for practice: Planners can use PPGIS and similar platforms to help stakeholders learn by doing and to increase their own local knowledge to improve planning outcomes. Planners should work to develop better online participatory systems and to allow stakeholders to provide more and better data, continuing to evaluate PPGIS efforts to improve the transparency and legitimacy of online public involvement processes.
    Date: 2018–11–05
  22. By: Bakour, Chafik; Abahamid, Mohamed Yassine
    Abstract: Regional disparities constitute a real socio-economic problem, reflecting an inequitable distribution of resources and opportunities on the population of the same country, with disastrous economic, social and political consequences. The objective of this article is to extend the discussion on regional disparities, by focusing on the socio-economic dimensions, we have opted for unidimensional statistical approaches by highlighting the distribution and dispersion of a set of socio-economic indicators covering education and employment, health, housing conditions and poverty and living standards; and multidimensional techniques that allowed us to design a synthetic regional development indicator, classify the regions according to the level of development, highlight the gaps and finally draw a development map in Morocco. The analysis of regional disparities through the distribution of the values of the elementary indicators, then the composite social development index, and the regional development mapping shows that, despite the progress made, the regions have not benefited in the same proportions, and the size of the gaps recorded between the best performing regions and the worst performing regions confirms the structural nature of these disparities.
    Keywords: Keyword: spatial disparities, inequalities, regional development, dispersion indicator, multidimensional analysis, education, health, employment, development index
    JEL: C1 C81 D63 I0 I24 I3 O18 O20
    Date: 2019–10–18
  23. By: Gibson, John; Olivia, Susan; Boe-Gibson, Geua
    Abstract: Popular DMSP night lights data are flawed by blurring, top-coding, and lack of calibration. Yet newer and better VIIRS data are rarely used in economics. We compare these two data sources for predicting Indonesian GDP at the second sub-national level. DMSP data are a bad proxy for GDP outside of cities. The city lights-GDP relationship is twice as noisy using DMSP as using VIIRS. Spatial inequality is considerably understated with DMSP data. A Pareto adjustment to correct for top-coding in DMSP data has a modest effect but still understates spatial inequality and misses key features of economic activity in Jakarta.
    Keywords: Night lights; inequality; GDP; DMSP; VIIRS; Indonesia
    JEL: O15 R12
    Date: 2019–12–14
  24. By: Chloé van Biljon (Research on Socio-Economic Policy, Stellenbosch University); Cobus Burger (Research on Socio-Economic Policy, Stellenbosch University)
    Abstract: This paper will aim to answer three questions: (1) Are girls absent from school during their periods? (2) If so, how large is the effect of menstruation on absenteeism? (3) Do the effects differ by socio-economic status (SES)? A large body of research examines the barriers that girls face to schooling, yet little is known about menstruation in particular as an obstacle for school attendance. The few existing studies indicate that menstruation does have repercussions for girl’s school attendance. This paper contributes to the literature by using a large provincial dataset to estimate the influence of menstruation on the school attendance of girls in Limpopo. The data, school administration data of the Department of Basic Education (SA-SAMS data), is collected quarterly from schools as part of the Data Driven Districts (DDD) initiative, which resulted from a partnership between the Department of Basic Education and the Michael and Susan Dell Foundation. The DDD programme aims to provide access to high quality, visualised education performance data across the country. Research on Socio-Economic Policy (ReSEP) has been asked to undertake some analysis of this underlying data to illustrate its potential use for research. The SA-SAMS data includes detailed data on absenteeism for most schools in Limpopo, one of South Africa’s poorest provinces. Reasons for absenteeism are not reported, and it is therefore unclear when absenteeism is menstruation-related. In this paper, we develop a structural model to identify whether there are patterns in older girls’ absenteeism that could be explained by menstruation. The model is estimated with maximum likelihood methods and is applied to two control groups: girls before they have reached menarche, and boys. The results of the model are compared across these three groups and by school socio-economic status The results indicate that menstruation causes absenteeism for young girls (12-13 year olds in the poorest 60% of schools and 10-11 year olds in the richest 40%), but that older girls do not have a higher probability of being absent during their menses. These results imply that encountering menstruation for the first time presents challenges for girls in relation to school attendance.
    Keywords: school attendance, education, menstruation, South Africa
    JEL: B54 C55 I20 J13 J16
    Date: 2019
  25. By: Jan Fidrmuc; Martin Hulényi; Olga Zajkowska
    Abstract: We analyze the impact of EU structural and cohesion funds on economic growth of European regions, using 2SLS to tackle the potential problem of endogeneity, and estimating a spatial model to account for inter-regional spillovers. We use the presence of environmentally protected areas (under the European Union’s Natura 2000 program) as instruments for the receipts of funds from the EU Cohesion Policy. We find that the European funds have a significant and positive effect on regional economic growth in the EU. The inter-regional spillovers in the effect of Cohesion Policy on regional growth are found to be important: most of the effect takes place outside of the recipient region rather than inside. However, there is considerable heterogeneity in the effect of Cohesion Policy across individual EU member states: the effect is stronger in the new member states, and weak or negative in the countries hit by the recent austerity measures. Finally, our results confirm the positive impact of institutional quality: improvements in economic development across the EU do not necessarily require only redistribution: institutional reform can also help boost growth performance.
    Keywords: regional aid, growth, environmental conservation, 2SLS, spatial model
    JEL: C21 C36 F36 E62 O11 P48
    Date: 2019
  26. By: Kitchin, Rob (National University of Ireland Maynooth)
    Abstract: This paper considers, following David Harvey (1973), how to produce a genuinely humanizing smart urbanism. It does so through utilising a future-orientated lens to sketch out the kinds of work required to reimagine, reframe and remake smart cities. I argue that, on the one hand, there is a need to produce an alternative ‘future present’ that shifts the anticipatory logics of smart cities to that of addressing persistent inequalities, prejudice, and discrimination, and is rooted in notions of fairness, equity, ethics and democracy. On the other hand, there is a need to disrupt the ‘present future’ of neoliberal smart urbanism, moving beyond minimal politics to enact sustained strategic, public-led interventions designed to create more-inclusive smart city initiatives. Both tactics require producing a deeply normative vision for smart cities that is rooted in ideas of citizenship, social justice, the public good, and the right to the city that needs to be developed in conjunction with citizens.
    Date: 2018–10–17
  27. By: Hart, Rannveig; Pedersen, Willy; Skardhamar, Torbjørn (University of Oslo)
    Abstract: Despite an extensive literature on weather and crime, the magnitude of weather effects on crime and their implications for practical policing remain unclear. Similarly, the effects of weather on the location of crime have barely been explored empirically. We investigated how weather influences the intensity and spatial distribution of crime in Oslo, the capital of Norway. Geocoded locations of criminal offences were combined with data on temperature, wind, and rain. We used negative binomial count models to assess the effect of weather on the intensity of crime and generalized additive models (GAMs) to test for spatial variations. The intensity and spatial distribution of crime were not very sensitive to weather in Oslo. The largest effect was for drug crimes, for which maximum relative to minimum temperature was related to a single incident increase every six days. No effects were found for dislocation in the spatial models. In Oslo, Norway, weather conditions are of little importance for practical policing. The effects of weather on the intensity of crime are miniscule, and effects on the location of crime even smaller.
    Date: 2019–01–03
  28. By: Pettit, Christopher; Crommelin, Laura; Sharam, Andrea; Hulse, Kath; Hayward, Richard Donald (Australian Housing and Urban Research Institute (AHURI))
    Abstract: This study examined disruptive digital technologies, investigating their potential for reshaping housing markets and reconfiguring housing policy. It provides housing policy makers and practitioners with a nuanced understanding of how technology is already restructuring housing markets and affecting housing assistance programs, as well as insights into likely future developments.
    Date: 2018–12–03
  29. By: Lajos Tamás Szabó (Magyar Nemzeti Bank (Central Bank of Hungary))
    Abstract: In this paper, I examine the effect of tightness on wages in three Central European countries. The estimation is relevant for at least three reasons. Firstly, it is a novel exercise to check the implication of the Mortansen–Pissarides model on Central European data. Secondly, from the central bank’s perspective it is important to know the effect of tightness on wages, since these are the major determinants of cost-push inflation. Thirdly, the magnitude of the spillover effect from tightness to wages can help determine the efficiency of a targeted development policy. My contribution is directly identifying the effect of tightness on wages from regional heterogeneity. I examine the effect of tightness on wages in Hungary, Slovakia and Poland using panel IV method on district level data. The direct effects are similar in the three countries, i.e. there is a positive link between tightness and wages. The magnitudes are somewhat different in Poland then in Hungary and Slovakia. There is spatial spillover effect in Hungary but this indirect effect is missing in Poland and Slovakia.
    Keywords: local labour markets, labour market tightness, wage equation.
    JEL: J31 J61 J63 J64
    Date: 2019
  30. By: Marco Arena; Tingyun Chen; Seung M Choi; Nan Geng; Cheikh A. Gueye; Tonny Lybek; Evan Papageorgiou; Yuanyan Sophia Zhang
    Abstract: Macroprudential policy in Europe aligns with the objective of limiting systemic risk, namely the risk of widespread disruption to the provision of financial services that is caused by an impairment of all or parts of the financial system and that can cause serious negative consequences for the real economy.
    Keywords: Macroprudential policies and financial stability;Financial stability;Housing prices;Europe;
  31. By: Mariagrazia Cavallo (University of Bristol and Università di Salerno); Giuseppe Russo (Università di Salerno, CSEF and GLO)
    Abstract: This paper studies the effect of language proficiency on Math achievement for ten-year-old second-generation children in Italy. Through an IV given by the interaction between age and linguistic distance, we find that a higher score in Italian reduces the score in Math. This outcome is led by children with insufficient command of Italian (namely, those whose reading score is below 95% of the natives' average) and suggests that these students can improve their Italian only at the cost of reducing their performance in other subjects. This delay in language acquisition may undermine equality of opportunities from childhood.
    Keywords: Second generations, language, math performance, linguistic distance, instrumental variable
    JEL: I21 I24 Z13
    Date: 2020–01–13
  32. By: Coppens, Tom; Van Dooren, Wouter (University of Antwerp); Thijssen, Peter
    Abstract: We find that distance to an infrastructure project has a significant impact on the levels of protest in neighborhoods, but distance is not the whole story. The presence of social capital and the presence of active protesters are good predictors of protest participation in the neighborhood. Contrary to expectations, the aggregated socio-demographic profile of a neighborhood is not significantly related to levels of opposition. These findings support theories on the collective efficacy of neighborhoods.
    Date: 2018–10–05
  33. By: Griffin, Greg Phillip (Texas A&M Transportation Institute); Jiao, Junfeng
    Abstract: Transportation planners increasingly use new forms of online public participation alongside traditional in-person approaches, including crowdsourcing tools capable of encouraging geographically specific input. Digital involvement may be particularly valuable in exploring methods to plan at a megaregional scale. Research is beginning to address digital inequalities, recognizing that broadband and smartphone access may restrict opportunities for disadvantaged groups. However, the geography and equity of participation remain pragmatic issues for practice and research. This paper reviews the geography and equity of the participation methods in Austin, Texas for active transportation (bicycling and pedestrian) through three approaches to co-produce informed plans: in-person meetings, public participation geographic information system (PPGIS), and an emerging smartphone platform that logs trips and encourages input on route quality. In addition to spatial analysis with standard deviational ellipses, we include qualitative case analysis to contextualize the geographic and equity implications of different participation approaches. Results show that both online techniques resulted in a larger geography for participation than in-person meetings, with the regional PPGIS covering the most area. However, review of the income levels in each area shows that use of the smartphone-based crowdsourcing platform was aligned with lowest-income areas. This study shows that online participation methods are not homogeneous regarding geography or equity. In some contexts, smartphone applications can help reach lower-income communities, even when compared with in-person meetings. Crowdsourcing tools can be valuable approaches to increase geography and equity of public participation in transportation planning.
    Date: 2019–01–11
  34. By: Huirong Liu
    Abstract: This paper employs the survey data of CHFS (2013) to investigate the impact of housing investment on household stock market participation and portfolio choice. The results show that larger housing investment encourages the household participation in the stock market, but reduces the proportion of their stockholding. The above conclusion remains true even when the endogeneity problem is controlled with risk attitude classification, Heckman model test and subsample regression. This study shows that the growth in the housing market will not lead to stock market development because of lack of household financial literacy and the low expected yield on stock market.
    Date: 2020–01
  35. By: Petkov, Ivan
    Abstract: In this paper, I examine whether higher product market power can affect labor earnings through its effect on overall labor demand in distinct markets, as a set of dominant firms replaces employment by competitors. To identify relative labor demand shifts, I focus on variations in the spatial concentration within an industry following increases in market power.
    Keywords: Product Concentration, Labor Market Concentration, Local Labor Markets
    JEL: J0 J3 J6 L1
    Date: 2019–07–01
  36. By: Rahal, Charles
    Abstract: We outline a grid-based approach to provide further evidence against the misconception that the results of spatial econometric models are sensitive to the exact specification of the exogenously set weighting matrix (otherwise known as the 'biggest myth in spatial econometrics'). Our application estimates three large sets of specifications using an original dataset which contains information on the Prime Central London housing market. We show that while posterior model probabilities may indicate a strong preference for an extremely small number of models, and while the spatial autocorrelation parameter varies substantially, median direct effects remain stable across the entire permissible spatial weighting matrix space. We argue that spatial econometric models should be estimated across this entire space, as opposed to the current convention of merely estimating a cursory number of points for robustness.
    Date: 2019–12–10
  37. By: Nobuo Kobayashi (School of Economics, Kwansei Gakuin University)
    Abstract: This study analyzed the factors that determined the regional business start-up rates in Japan between 2012-2014, taking into account the influence of historical regional characteristics in addition to contemporary social and economic factors. As for the industrial structure, regions where the ratio of service sectors is relatively high tend to have high start-up rates. Regarding the employment environment, unemployment tends to promote business start-ups. In addition, there was a tendency for the business start-up rate to increase with a high ratio of foreigners, but a relatively high proportion of highly educated personnel had no effect. Regarding the influence of historical characteristics on business start-up behavior, two conflicting directions were recognized. In regions focused on rice production, business start-up behavior has historically been suppressed. In contrast, in recent years there has been a tendency to promote business start-ups in areas in which the ratio of rice cultivation is high, reflecting changes in agricultural policies, such as incentives for corporations to enter agriculture and support for conversion from individual farmer to corporate management. Nobuo Kobayashi
    Keywords: business start-ups, industrial structure, historical context, agriculture School of Economic
    JEL: M13 O13 O18 R11
    Date: 2020–01
  38. By: Abatemarco, Antonio; Dell'Anno, Roberto
    Abstract: We consider the tax progressivity decision of a rent‐maximizing government when voters’ perceptions of the tax price of public goods are biased by cognitive anomalies (i.e., fiscal illusion), and the electorate opts for re‐appointing or for dismissing the incumbent according to a retrospective voting logic. Given electoral and constitutional constraints, we show that the design of the tax system can be sensibly affected by fiscal illusion within the population of voters. Specifically, we find that (i) the tax system is more (less) progressive when taxes and public expenditures are perceived less (more), and (ii) an increase in the median voter’s income may positively or negatively affect tax progressivity depending on the nature (pessimistic or optimistic) of fiscal illusion. The impact of fiscal illusion on tax progressivity is validated by econometric analysis.
    Keywords: fiscal illusion; tax progressivity; median voter; cognitive anomalies
    JEL: D63 D72 E62 H23 H3
    Date: 2019–09–12
  39. By: Compton, Andrew
    Abstract: In this paper, I explore how property crime can affect static and dynamic general equilibrium behavior of households and firms. I calibrate a model with a representative firm and heterogeneous households where households have the choice to commit property crime. In contrast to previous literature, I treat crime as a transfer rather than home production. This creates a feedback loop wherein negative productivity shocks increase property crime which further depresses legitimate work and capital accumulation. These responses by households are particularly important when thinking about the effect of property crime on the economy. Household and firm losses account for 24% of compensating variation (CV) and 37% of lost production. This suggests that behavioral responses are quite important when calculating the cost of property crime. Finally, on the margin, decreasing property crime by 1\% increases social welfare by 0.19%, but the effect is diminishing suggesting that reducing crime entirely may not be optimal from a policymakers perspective.
    Keywords: Crime, Welfare, Police, Public Goods, Business Cycles
    JEL: E26 E32 H41 K1
    Date: 2019–11–13
  40. By: Naven, Matthew
    Abstract: This paper investigates the role of school quality in human-capital formation. Specifically, I investigate how the timing of school quality differentially affects long-run outcomes. Using individual-level data on the universe of public-school students in California, I estimate elementary-, middle-, and high-school quality using a value-added methodology that accounts for the fact that students sort to schools on observable characteristics. I then determine the impact of school quality on future K-12 and postsecondary outcomes. I find that high-school quality has the largest impact on postsecondary enrollment, while elementary- and middle-school quality play a larger role in college readiness. In other words, early human-capital investments are important for future postsecondary success, but the unique timing of the college decision process allows for later human-capital investments to also play a significant role.
    Keywords: School Quality; Human Capital; Postsecondary Education; Value Added
    JEL: H75 I21 I23 J24
    Date: 2019–12–19
  41. By: Masterson, Daniel (Immigration Policy Lab); Yasenov, Vasil
    Abstract: Many countries have reduced refugee admissions in recent years, in part due to fears that refugees and asylum seekers increase crime rates and pose a national security risk. We provide evidence on the effects of refugee resettlement on crime, leveraging a natural experiment in the United States, where an Executive Order by the president in January 2017 halted refugee resettlement. We find that, despite a 65.6% drop in refugee resettlement, there is no discernible effect on county-level crime rates. These null effects are consistent across all types of crime. Overall, the results suggest that crime rates would have been similar had refugee arrivals continued at previous levels.
    Date: 2018–12–20
  42. By: Sebastian G. Kessing; Vilen Lipatov; J. Malte Zoubek
    Keywords: Optimal taxation, redistribution, regional inequality, migration, multidimensional screening, delayed optimal control
    JEL: H11 J45 R12
    Date: 2019
  43. By: Boeing, Geoff (Northeastern University)
    Abstract: OpenStreetMap provides a valuable crowd-sourced database of raw geospatial data for constructing models of urban street networks for scientific analysis. This paper reports results from a research project that collected raw street network data from OpenStreetMap using the Python-based OSMnx software for every U.S. city and town, county, urbanized area, census tract, and Zillow-defined neighborhood. It constructed nonplanar directed multigraphs for each and analyzed their structural and morphological characteristics. The resulting data repository contains over 110,000 processed, cleaned street network graphs (which in turn comprise over 55 million nodes and over 137 million edges) at various scales—comprehensively covering the entire U.S.—archived as reusable open-source GraphML files, node/edge lists, and GIS shapefiles that can be immediately loaded and analyzed in standard tools such as ArcGIS, QGIS, NetworkX, graph-tool, igraph, or Gephi. The repository also contains measures of each network’s metric and topological characteristics common in urban design, transportation planning, civil engineering, and network science. No other such dataset exists. These data offer researchers and practitioners a new ability to quickly and easily conduct graph-theoretic circulation network analysis anywhere in the U.S. using standard, free, open-source tools.
    Date: 2019–03–01
  44. By: Fabien Candau (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour); Tchapo Gbandi (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)
    Abstract: By analyzing the population growth at the top of the urban hierarchy, we test two hypothesis explaining the rise of mega-cities: trade and political institutions. We nd that democratic institutions are the main factor behind the concentration of a nation's urban population in the main city. Contrary to the literature, we nd that extractive institutions reduce the size of the biggest city.
    Keywords: Democracy,Urban Primacy,Market Access
    Date: 2019–12
  45. By: Russell Pittman (U.S. Department of Justice); Monika Jandová (Masaryk University); Marcin Król (Warsaw School of Economics); Larysa Nekrasenko (Poltava State Agrarian Academy); Tomáš Paleta (Masaryk University)
    Abstract: The European Commission years ago adopted a policy of encouraging the substitution of motor carrier haulage of freight with rail and water carrier haulage, as part of its “green” agenda of reducing fuel consumption, emission of pollutants, carbon intensity, and road congestion. Regarding railway freight in particular, one policy tool that the Commission has emphasized for this purpose is the restructuring of the rail sectors of member countries through the creation of competition for the incumbents by new train-operating companies (TOC’s) – on its face a less obvious policy choice than alternatives such as Pigouvian pricing measures or infrastructure subsidies. This paper focuses on one important commodity group – grain – in three EC member states and one non-member state – Poland, the Czech Republic, Slovakia, and Ukraine – to examine the degree to which increased rail competition has been associated with increases in rail’s modal share, and more broadly to learn what appear to be the binding constraints to increases in rail’s share. Such constraints seem more closely related to shortages in infrastructure capacity than to a lack of competition among TOC’s. This suggests that other “models” of railway restructuring may be more effective in easing this constraint.
    JEL: L92 Q58 R11 R41 R42 R48
    Date: 2019–12
  46. By: Alberto F. Alesina; Stefanie Stantcheva
    Abstract: This paper provides a simple conceptual framework that captures how different perceptions, attitudes, and biases about immigrants or minorities can shape preferences for redistribution. Through the lens of this framework, we review the empirical literature on the effects of racial diversity and immigration on support for redistribution in the US and Europe.
    JEL: H21 H41 J15 P16
    Date: 2020–01
  47. By: Katrin Heßler (Johannes Gutenberg University Mainz); Stefan Irnich (Johannes Gutenberg University Mainz)
    Abstract: The soft-clustered vehicle-routing problem is a variant of the classical capacitated vehicle-routing problem (CVRP) in which customers are partitioned into clusters and all customers of the same cluster must be served by the same vehicle. We introduce a novel symmetric formulation of the problem in which the clustering part is modeled with an asymmetric sub-model. We solve the new model with a branch-and-cut algorithm exploiting some known valid inequalities for the CVRP that can be adapted. In addition, we derive problem-speciï¬ c cutting planes and new heuristic and exact separation procedures. For square grid instances in the Euclidean plane, we provide lower-bounding techniques and a reduction scheme that is also applicable to the respective traveling salesman problem. In comprehensive computational test on standard benchmark instances, we compare the different formulations and separation strategies in order to determine a best performing algorithmic setup. The computational results with this branch-and-cut algorithm show that several previously open instances can now be solved to proven optimality.
    Keywords: vehicle routing, clustered customers, branch-and-cut
    Date: 2020–01–08
  48. By: Christian Tilk (Johannes Gutenberg University Mainz); Asvin Goel (Kühne Logistics University)
    Abstract: This paper studies the vehicle routing and truck driver scheduling problem where routes and schedules must comply with hours of service regulations for truck drivers. It presents a backward labeling method for generating feasible schedules and shows how the labels generated with the backward method can be combined with labels generated by a forward labeling method. The bidirectional labeling is embedded into a branch and-price-and-cut approach and evaluated for hours of service regulations in the United States and the European Union. Computational experiments show that the resulting bidirectional branch-and-price-and-cut approach is signi?cantly faster than unidirectional counterparts and previous approaches.
    Keywords: Routing, Hours of service regulations, truck driver scheduling, bidirectional labeling, branch and-price-and-cut
    Date: 2019–07–15
  49. By: Lael Brainard
    Date: 2020–01–08
  50. By: Kumagai, Junya; Managi, Shunsuke
    Abstract: Promoting pro-environmental travel modes is an important strategy for sustainable transportation. Previous studies have shown a positive relationship between environmental awareness and environmentally friendly travel modes, but very few studies have considered pro-environmental behaviour and choice of travel mode, particularly in the context of non-Western countries. This study examines the impact of pro-environmental behaviour on the choice of commuting mode in Tokyo, Beijing, Shanghai and Singapore using original survey data. We use the Multiple Indicator Multiple Cause model to construct latent variables of environmentally friendly behaviours. The multinomial logistic regression results indicate that 1) pro-environmental activities and commuting mode choice are unrelated in Tokyo and Singapore, 2) recycling and energy-savings activities are positively related to commuting by bicycle/on foot in Beijing, and 3) participants in organized pro-environmental activities are less likely to use pro-environmental commuting modes in Beijing and Shanghai. The results provide supporting evidence of the habit discontinuity hypothesis and suggest a possible substitution effect between environmentally friendly travel mode choice and other environmental activities.
    Keywords: Sustainable transportation; environmental behaviour; travel demand; commuting; Asian cities
    JEL: R41
    Date: 2019–12–10
  51. By: Crommelin, Laura; Troy, Laurence; Martin, Chris; Parkinson, Sharon; Hayward, Richard Donald (Australian Housing and Urban Research Institute (AHURI))
    Abstract: This study looks at how short term letting (STL) platforms like Airbnb, HomeAway and are reshaping housing opportunity in private markets. It analysed Airbnb listing data from Sydney and Melbourne to reveal insights into the extent STL is contributing to housing affordability issues and to highlight the most effective responses available to regulators.
    Date: 2018–11–07
  52. By: Koen Jochmans (Institute for Fiscal Studies and University of Cambridge); Martin Weidner (Institute for Fiscal Studies and cemmap and UCL)
    Abstract: This paper considers inference on fixed effects in a linear regression model estimated from network data. An important special case of our setup is the two-way regression model. This is a workhorse technique in the analysis of matched data sets, such as employer-employee or student-teacher panel data. We formalize how the structure of the network affects the accuracy with which the fixed effects can be estimated. This allows us to derive sufficient conditions on the network for consistent estimation and asymptotically-valid inference to be possible. Estimation of moments is also considered. We allow for general networks and our setup covers both the dense and sparse case. We provide numerical results for the estimation of teacher value-added models and regressions with occupational dummies.
    Date: 2019–04–03
  53. By: Yoshiaki Ogura
    Abstract: We find several facts that suggest the Japanese regional loan market conforms to the "search-for-yield" phenomenon, in which banks are driven to provide more risky loans by diminished loan spreads. We use a structural model to estimate demand elasticity and the degree of competition in local loan markets simultaneously. Our estimates show that competition intensifies in markets where banks hold more slack liquidity caused by monetary easing, and where loan demand is less elastic against lowering interest rates due to a rapidly aging population. We find reasonably robust evidence that banks in such competitive markets are driven to extend riskier loans.
    Date: 2019–10
  54. By: Pagliacci, Francesco; Russo, Margherita
    Abstract: For any given territory, disaster risk is a function of hazard, exposure and vulnerability. The conceptual frameworks for these dimensions are largely debated in the scientific studies, focusing on spatial and temporal references and on system perspective of risk assessment. Despite broad in their scope, the analytical frameworks proposed to analyse policy programmes to reduce risk generally miss that risk indicators should be grounded on geographical and spatial features of the neighbouring territories and not only on communities' behaviour, and their resilience, as the paradigmatic solution in front of system events in areas prone to natural multi-hazard. The definition of "community" and of "neighbourhood" that are relevant for risk assessment cannot be simply defined in terms of absolute size of population or economic activity of individual local units under analysis or of the formal aggregation provided by jurisdictional agreements on specific functions. The paper presents an empirical analysis on spatially-lagged data in Italy, which was massively hit by adverse natural events in the last decade. It suggests to focus on social and material vulnerability, by using the comprehensive indicator at municipality level elaborated by the Italian Institute of Statistics. At the municipality-level, the analysis shows a positive correlation between multi-hazards, on the one hand, and spatially-lagged exposure and vulnerability, on the other. Thus, conditions in neighbouring municipalities would matter in prioritizing policy interventions aiming at mitigating hazard impacts, reducing vulnerability and enhancing communities' resilience. The definition of significant neighbouring spaces opens to a conceptualization of vulnerability grounded on a relational perspective in the creation of collective goods. This could enhance more effective Disaster Risk Reduction programmes.
    Keywords: social and material vulnerability indicators; multi-hazard; Disaster Risk Reduction; neighbouring effect
    JEL: Q54 R11 R58
    Date: 2018–12–17
  55. By: Flanagan, Kathleen; Martin, Chris; Jacobs, Keith; Lawson, Julie; Hayward, Richard Donald (Australian Housing and Urban Research Institute (AHURI))
    Abstract: This study into the role of social housing as essential infrastructure assessed evaluation tools and techniques needed to enable investment by government. Cost-benefit analyses and business case preparation provide a means to quantify productivity, while the broader range of societal outcomes also needs to be considered.
    Date: 2019–02–05
  56. By: Lawson, Julie; Pawson, Hal; Troy, Laurence; van den Nouwelant, Ryan; Hamilton, Carrie; Hayward, Richard Donald (Australian Housing and Urban Research Institute (AHURI))
    Abstract: This research modelled five alternative pathways to funding social housing and found the ‘capital grant’ model, supplemented by efficient financing, provides the most cost-effective model for Australia. The research also established the current and future unmet need for social housing in different parts of Australia.
    Date: 2018–11–14
  57. By: Arslan, Aslihan; Tschirley,David; Egger, Eva-Maria
    Abstract: Most of the discourse on rural youth in developing countries lacks robust evidence on where rural youth live and how the challenges and opportunities of their location affect their welfare outcomes. This paper uses the concept of the Rural Opportunity Space from economic geography literature to shed light on these questions. Rural opportunities are expected to be shaped by commercial and agricultural potential of a location. We apply this conceptual framework to global geo-spatial data from 85 low- and middle-income countries on population density, as a proxy for commercial potential, and a measure of greenness, as a proxy for agricultural potential, to locate rural youth within the opportunity space globally. We then combine these data with household-level data from 12 countries in Africa, Latin America and Asia, to assess how the Rural Opportunity Space influences welfare outcomes of young households compared with older households. Our findings show that most rural youth actually live in areas with high potential in terms of commercial and agricultural opportunities. However, their welfare outcomes depend much more strongly on commercial potential than on agricultural potential. Education can have large poverty-reducing effects for younger households, especially in areas where commercialization potential is neither lowest nor highest.
    Keywords: Agribusiness, Community/Rural/Urban Development, International Development
    Date: 2019
  58. By: Kylo-Patrick Hart (Texas Christian University)
    Abstract: With regard to American movies about HIV/AIDS, the social construction of rural spaces and places is one that is much more innocent and pure than the social construction of urban environs. Accordingly, this presentation analyzes the social construction of rural locations as a moral utopia in representative AIDS movies made and released in the United States during the first two decades of the AIDS pandemic. It articulates the representational connections in such offerings between traditional ways of being and purity, values of the past and wholesome continuity, innocent iconography and patriarchal expectations. When all is said and done, this presentation demonstrates how rural spaces and places in American AIDS movies came to represent all that is morally good and pure in U.S. society, in dramatic contrast to representations of urban spaces and places and their continual associations with excess, depravity, monstrosity, pollution, and sickness. It further demonstrates how these influential representations regularly reinforced inaccurate perceptions of HIV/AIDS as a threat almost exclusively to residents of urban environments, thereby concealing more accurate social information about the realities of the AIDS pandemic and the range of individuals ? in all sorts of spaces and places ? who needed to proactively protect themselves from its spread.
    Keywords: cinema, HIV/AIDS, media, purity, representation, rural areas, social constructionism, utopia
    JEL: I10 L82 N90
    Date: 2019–10
  59. By: Martijn Brons; Fotios Kalantzis; Lucia Vergano
    Abstract: This paper provides a comparative assessment of market functioning and market integration in EU Member States in network industries, i.e. telecommunications, energy and transport sectors. The first section assesses Member States’ progress in market opening and competition and highlights potential market distortions that can hinder the proper functioning of these markets. The analysis shows that over the last years overall improvements in the regulatory and competitive environment was achieved, especially in the telecommunications sector. However, additional efforts are needed, especially in some Member States. The second section empirically investigates whether any relevant price convergence across Member States took place in the EU network industries. Econometric results show that prices converged to the mean in all analysed subsectors. However, in some Member States country-specific factors prevented prices in each of the sectors from fully converging to the same level. The speed of convergence was higher in the transport and energy subsectors and lower in the telecommunications sector.
    JEL: C13 D47 L90
    Date: 2019–09
  60. By: Hockett, Robert C.; Library, Cornell
    Abstract: We design a digital home mortgage and title registry system, overseen by a new public sector entity, to provide clearing and settlement efficiencies in mortgage-related instruments comparable to those enabled by the Depository Trust Company (‘DTC’) in other investment securities. We believe such a system to be a prerequisite to the return of a safe, transparent, and liquid ‘private’ secondary market in mortgage loans.
    Date: 2019–03–08
  61. By: Simona Macková (University of Economics, Prague)
    Abstract: Next year, Germany is going to celebrate the thirties anniversary of its reunification. Several years of separation into two part had huge impact on their economic development. Former western Germany entered the new republic as economically much stronger member. According to observation of main macroeconomic variables such as GDP, unemployment rate or household income, this gap is definitely narrowing but has not disappear completely yet. This contribution aims to bring a descriptive insigne of current economic structure of the country using choropleths which is an irreplaceable tool of regional analysis. The differences and significance of the former division are analysed using spatio-temporal approaches. Spatial econometrics considers geographical location of observed units that could bring important additional information into the analysis. Development in time is observed as well. As a measurement of prosperity, GDP, purchasing power standard or level of education are used. Diversity of industry and several demographic variables are supporting this analysis. Assumptions of changes in economic structure and existence of persistence former parts differences are proved by suitable spatial econometric models for panel data.
    Keywords: spatial analysis, economic structure, Germany reunification, choropleth
    Date: 2019–10
  62. By: Powdthavee, Nattavudh (University of Warwick); Oswald, Andrew J. (University of Warwick)
    Abstract: It is known that people feel less happy in areas with higher levels of nitrogen dioxide NO2 (MacKerron and Mourato, 2009). What else might air pollution do to human wellbeing? This paper uses data on a standardized word-recall test that was done in the year 2011 by 34,000 randomly sampled English citizens across 318 geographical areas. We find that human memory is worse in areas where NO2 and PM10 levels are greater. The paper provides both (i) OLS results and (ii) instrumental-variable estimates that exploit the direction of the prevailing westerly wind and levels of population density. Although caution is always advisable on causal interpretation, these results are concerning and are consistent with laboratory studies of rats and other non-human animals. Our estimates suggest that the difference in memory quality between England’s cleanest and most-polluted areas is equivalent to the loss of memory from 10 extra years of ageing.
    Keywords: Memory, air, pollution, particulates JEL Classification: NO2, PM10,
    Date: 2019
  63. By: Sonia Feliz; Chiara Maggi
    Abstract: This paper studies the macroeconomic effect and underlying firm-level transmission channels of a reduction in business entry costs. We provide novel evidence on the response of firms' entry, exit, and employment decisions. To do so, we use as a natural experiment a reform in Portugal that reduced entry time and costs. Using the staggered implementation of the policy across the Portuguese municipalities, we find that the reform increased local entry and employment by, respectively, 25% and 4.8% per year in its first four years of implementation. Moreover, around 60% of the increase in employment came from incumbent firms expanding their size, with most of the rise occurring among the most productive firms. Standard models of firm dynamics, which assume a constant elasticity of substitution, are inconsistent with the expansionary and heterogeneous response across incumbent firms. We show that in a model with heterogeneous firms and variable markups the most productive firms face a lower demand elasticity and expand their employment in response to increased entry.
    Date: 2019–12–13
  64. By: Pettit, Christopher; Liu, Edgar; Rennie, Ellie; Goldenfein, Jake; Glackin, Stephen; Hayward, Richard Donald (Australian Housing and Urban Research Institute (AHURI))
    Abstract: This research reviews different emerging digital and disruptive technologies, such as blockchain, in relation to housing, housing assistance and planning systems. While much work has been done in opening up property data assets across governments, significant work is required on data standards, privacy standards and data sharing across government, industry and the non-profit sectors.
    Date: 2018–10–24
  65. By: Valencia-Toledo, Alfredo; Vidal-Puga, Juan
    Abstract: We consider land rental between a single tenant and several lessors. The tenant should negotiate sequentially with each lessor for the available land. In each stage, we apply the Nash bargaining solution. Our results imply that, when all land is necessary, a uniform price per unit is more favorable for the tenant than a lessor-dependent price. Furthermore, a lessor is better off with a lessor-dependent price only when negotiating first. For the tenant, lessors’ merging is relevant with lessor-dependent price but not with uniform price.
    Keywords: Bargaining; non-cooperative game; Nash solution; land rental
    JEL: C7
    Date: 2019–05–30
  66. By: Brackertz, Nicola; Wilkinson, Alex; Davison, Jim; Hayward, Richard Donald (Australian Housing and Urban Research Institute (AHURI))
    Abstract: This research progresses the priority areas identified by the National Mental Health Commission and provides evidence about the systemic issues and policy levers to provide housing and services for people with lived experience with mental ill health.
    Date: 2018–11–28
  67. By: Yue Bao (VU University Amsterdam); Erik T. Verhoef (VU University Amsterdam); Paul Koster (VU University Amsterdam)
    Abstract: Hypercongestion is the situation where a certain traffic flow occurs at a combination of low speed and high density, and a more favorable combination of these could produce the same flow. The macroscopic fundamental diagram (MFD) allows for such hypercongestion, but does not explicitly describe the dynamic process leading up to hypercongestion. Earlier studies of hypercongestion on single links have, however, confirms that such dynamic processes are important to consider. The bathtub model is one class of model that can be used to investigate how hypercongestion can arise in urban areas, when drivers can choose their departure times. This paper investigates equilibrium outcomes and user costs under the realistic assumption that there is finite capacity to exit the bathtub, without which it would be hard to explain why hypercongestion would not dissolve through shockwaves originating from the bathtub exit. We find that when the exit capacity of the bathtub is lower than the equilibrium exit flow from the bathtub, no additional inefficiencies arise due to hypercongestion. However, when the exit capacity is higher than the equilibrium exit flows from the bathtub inefficiencies do occur. The implication of this result is that a restricted downstream capacity regulating hypercongestion may not be necessary because time gains in the bathtub are lost in the queue at the exit.
    Keywords: Road traffic congestion, flow congestion, bottleneck model, bathtub model, hypercongestion, macroscopic fundamental diagram
    JEL: R4 R41 R42
    Date: 2020–01–13

This nep-ure issue is ©2020 by Steve Ross. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.