nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2020‒02‒03
sixty-five papers chosen by
Steve Ross
University of Connecticut

  1. School Choice Priorities and School Segregation: Evidence from Madrid By Gortázar, Lucas; Mayor, David; Montalbán, José
  2. Relocating or Redefined: A New Perspective on Urbanization in China By Li Gan; Qing He; Ruichao Si; Daichun Yi
  3. Heterogeneous Real Estate Agents and the Housing Cycle By Sonia Gilbukh; Paul Goldsmith-Pinkham
  4. Changing supply elasticities and regional housing booms By Aastveit, Knut Are; Albuquerque, Bruno; Anundsen, André
  5. How social interactions matter when distance dies? By Minoru Osawa; Jos\'e M. Gaspar
  6. Associating Ridesourcing with Road Safety Outcomes: Insights from Austin Texas By Eleftheria Kontou; Noreen C. McDonald
  7. The Belt and Road Initiative: Reshaping Economic Geography in Central Asia?* By Anthony Venables; Julia Bird; Mathilde Lebrand
  8. The Gender Gap in Housing Returns By Paul Goldsmith-Pinkham; Kelly Shue
  9. Navigating a changing private rental sector: opportunities and challenges for low-income renters By Huang, Donna; Parkinson, Sharon; James, Amity; Liu, Edgar
  10. Urban Growth and its Aggregate Implications By Gilles Duranton; Diego Puga
  11. The Local Residential Land Use Regulatory Environment Across U.S. Housing Markets: Evidence from a New Wharton Index By Joseph Gyourko; Jonathan Hartley; Jacob Krimmel
  12. Do Property Tax Incentives for New Construction Spur Gentrification? Evidence from New York City By Divya Singh
  13. The (Non-) Effect of Opportunity Zones on Housing Prices By Jiafeng Chen; Edward L. Glaeser; David Wessel
  14. Interfaces and divisions in the Dublin Docklands 'Smart District' By Heaphy, Liam James
  15. Strategic grade retention By Bach, Maximilian
  16. Quantifying Quality Specialization Across Space: Skills, Sorting, and Agglomeration By Chang, Pao-Li; Lu, Angdi; Yi, Xin
  17. Peer Effects in Networks: a Survey By Yann Bramoullé; Habiba Djebbari; Bernard Fortin
  18. Diversity and neighbourhood satisfaction By Langella, Monica; Manning, Alan
  19. Peer Effects in Networks: a Survey By Yann Bramoullé; Habiba Djebbari; Bernard Fortin
  20. Urbanization and mortality decline By Bandyopadhyay, Sanghamitra; Green, Elliott D.
  21. The effect of social networks on migrants' labor market integration: a natural experiment By Gerxhani, Klarita; Kosyakova, Yuliya
  22. Are Poor Cities Cheap for Everyone? Non-Homotheticity and the Cost of Living Across U.S. Cities By Jessie Handbury
  23. Considerations for land value capture reform in the Greater Amman Municipality By Haas, Astrid; Kriticos, Sebastian
  24. A theory of heterogeneous city growth By Christian Ghiglino; Kazuo Nishimura; Alain Venditti
  25. The timescape of smart cities By Kitchin, Rob
  26. Socioeconomic impact of rural urban migration: A revisit of slum dwellers in northern region of Bangladesh By Khandaker Mursheda, Farhanan; Kazi Abdul, Mannan
  27. ADHD Misidentification in School: Causes and Mitigators By Jill Furzer; Elizabeth Dhuey; Audrey Laporte
  28. The Who, Why, and When of Uber and other Ride-hailing Trips: An Examination of a Large Sample Household Travel Survey By Young, Mischa; Farber, Steven
  29. Lifting the banking veil: credit standards’ harmonization through lending transparency By Kang, Jung Koo; Loumioti, Maria; Wittenberg-Moerman, Regina
  30. The role of R&D-intensive clusters for regional competitiveness By Reinhold Kosfeld; Timo Mitze
  31. The Cash-Flow Channel of Monetary Policy: Evidence from Mortgage Borrowers By Sang-yoon Song
  32. Investigating primary school quality using teachers’ self-efficacy and satisfaction By Skapinaki, Athina; Salamoura, Maria
  34. Revealed Preference Analysis of School Choice Models By Nikhil Agarwal; Paulo J. Somaini
  35. Social Media and Xenophobia: Evidence from Russia By Leonardo Bursztyn; Georgy Egorov; Ruben Enikolopov; Maria Petrova
  36. Subsidized to change? The impact of R&D policy on regional technological diversification By Lars Mewes; Tom Broekel
  37. Neighbourhood Deprivation, Life Satisfaction and Earnings: Comparative Analyses of Neighbourhood Effects at Bespoke Scales By Knies, Gundi; Melo, Patricia C.; Zhang, Min
  38. The Economic Consequences of Political Hierarchy: Evidence from Regime Changes in China, AD1000-2000 By Ying Bai; Ruixue Jia
  39. Three Conceptions of Spatial Locality in Chicago School Sociology (And Their Significance Today) By Merriman, Ben
  40. Urban Costs and the Spatial Structure of Cities: A Laboratory Experiment By Michiel Bliemer; Laurent Denant-Boemont; Sabrina Hammiche; David Hensher; Corinne Mulley
  41. Making Bicycling Comfortable: Identifying Minimum Infrastructure Needs by Population Segments Using a Video Survey By Fitch, Dillon; Carlen, Jane; Handy, Susan
  42. Decomposing Local Fiscal Multipliers: Evidence from Japan By Taisuke Kameda; Ryoichi Namba; Takayuki Tsuruga
  44. Spatial trends of manufacturing a Von Thünen Mills approach By José Pedro Pontes; Armando J. Garcia Pires
  45. How Does State-Level Carbon Pricing in the United States Affect Industrial Competitiveness? By Brendan J. Casey; Wayne B. Gray; Joshua Linn; Richard Morgenstern
  46. An Examination of Time-Use and Transportation Barriers to On-Campus Participation of University Students By Allen, Jeff; Farber, Steven
  47. Usage of Specialized Service Delivery: Evidence from Contiguous Counties By Goodman, Christopher B
  48. The Effects of Rent Control in Latin America: A Century of Regulations in Argentina By Alejandro D. Jacobo; Konstantin A. Kholodilin
  49. The prospects for manufacturing-led growth in Africa’s cities By Kriticos, Sebastian; Henderson, J. Vernon
  50. Beyond Brexit: reshaping policies for regional development in Europe By Bachtler, John; Begg, Iain
  51. “Not Just a Taxi”? For-Profit Ridesharing, Driver Strategies, and VMT By Anderson, Donald N.
  52. The impact of benefit sanctions on equilibrium wage dispersion and job vacancies By Sébastien Ménard
  53. Rewarding Commitment to Attend School: A Field Study with Indigenous Australian High School Students By Azhar Hussain Potia; Juliana Silva-Goncalves; Benno Torgler; Uwe Dulleck
  54. Exploring the Role of Cities in Electrifying Passenger Transportation By Hardman, Scott; Garas, Dahlia; Allen, Jeff; Axsen, Jonn; Beard, George; Dütschke, Elisabeth; Daina, Nicolò; Figenbaum, Erik; Jochem, Patrick; Nicholas, Michael; Plötz, Patrick; Refa, Nazir; Sovacool, Benjamin; Sperling, Daniel; Sprei, Frances; Tal, Gil
  55. Exploring the Determinants of Productivity Growth in Italian Regions: a Kaldorian Perspective By Matteo Deleidi; Walter Paternesi Meloni; Luigi Salvati; Francesca Tosi
  56. Commuting Service Platform: Concept and Analysis By Rong Fan; Xuegang; Ban
  57. Deregulation of the Finnish Long-distance Bus Market By Valmari, Nelli
  58. New cohesion and regional policy in 2021-2027 period By Antonescu, Daniela
  59. Chapter 3 - Mobility on demand (MOD) and mobility as a service (MaaS): early understanding of shared mobility impacts and public transit partnerships By Shaheen, Susan; Cohen, Adam
  60. The big-city bias in access to finance: evidence from firm perceptions in almost 100 countries By Lee, Neil; Luca, Davide
  61. Neglecting Uncertainties Leads to Suboptimal Decisions About Home-Owners Flood Risk Management By Mahkameh Zarekarizi; Vivek Srikrishnan; Klaus Keller
  62. Social housing under the worker’s party government: an analysis of the private sector in Brazil By Lima, Valesca
  63. Does Electrification Cause Industrial Development? Grid Expansion and Firm Turnover in Indonesia By Dana Kassem
  64. Cooperative approach to a location problem with agglomeration economies By Bergantiños, Gustavo; Navarro-Ramos, Adriana

  1. By: Gortázar, Lucas (The World Bank Group); Mayor, David (Compass Lexecon); Montalbán, José (Swedish Institute for Social Research, Stockholm University)
    Abstract: We test how government-determined school choice priorities affect families’ choices and pupil sorting across schools in the context of the Boston Mechanism. We use two large-scale school choice reforms in the school choice priority structure undertaken in the region of Madrid (Spain) in 2012 and 2013 as a source of variation. In 2012, low-income priorities to the top- ranked school were reduced, and points to alumni family members of the top-ranked school were granted. In 2013, an inter-district school choice reform widely expanded families’ choice set of schools. We combine an event study first difference across cohorts and a Difference- in-Difference design to identify the impact of the reforms, using unique administrative data on parents’ applications to schools. We show that reducing low-income priorities to the top-ranked school and granting points to alumni family members of the top-ranked school increases school segregation by parental education and immigrant status on 3 and 13 percent, respectively. Families reacted to the 2013’s inter-district reform exerting higher interdistrict choice and applying to schools located further away from home than before the reform. We find heterogeneous effects, showing potential information gaps and dynamic learning process across immigrant status groups throughout time. Moreover, the inter-district school choice reform marginally reduced school segregation by parental education and largely increased school segregation by immigrant status, but both effects fade out when controlling for residential stratification. Results suggest that priority structures need to be carefully designed to achieve diversity objectives and that abolishing school choice proximity points does not seem an effective public policy for reducing school segregation under the Boston Mechanism.
    Keywords: Education and Inequality; Education Policy; School Choice; School Segregation
    JEL: I24 I28
    Date: 2020–01–27
  2. By: Li Gan; Qing He; Ruichao Si; Daichun Yi
    Abstract: China's fast economic growth over the past 40 years has been accompanied by an increasingly rapid rate of urbanization, from about 20% in the early 1980s to 60% in 2018. In addition to natural population growth, rural-urban migration is generally believed to be a dominant driving force. Motivated by a recent finding of a high housing vacancy rate in urban China, however, we find that a large share of urban population growth comes from community reclassification. These redefined migrants (from communities which were reclassified from rural to urban) accounted for 33.4% of total urban population growth from 2010 to 2015. Households in reclassified communities share similar characteristics with those from rural villages, particularly in their ownership of housing. Furthermore, we provide evidence that at the prefecture level, the size of redefined migrants is significantly related to residential land supply, and to the proportion of households holding vacant housing units, but not to the change of night-time light. These results suggest that an inaccurate account of urbanization is an important factor for the oversupply of residential housing units in China.
    JEL: O18 R31 R52
    Date: 2019–12
  3. By: Sonia Gilbukh; Paul Goldsmith-Pinkham
    Abstract: The real estate market is highly intermediated, with 90 percent of buyers and sellers hiring an agent to help them transact a house. However, low barriers to entry and fixed commission rates result in a market where inexperienced intermediaries have a large market share, especially following house price booms. Using rich micro-level data on 10.4 million listings, we first show that houses listed for sale by inexperienced real estate agents have a lower probability of selling, and this effect is strongest during the housing bust. We then study the aggregate implications of the distribution of agents’ experience on housing market liquidity by building a dynamic entry and exit model of real estate agents with aggregate shocks. Several policies that raise the barriers to entry for agents are considered: 1) lower commission rates, 2) increased entry costs, and 3) more informed clients. Relative to the baseline, all three policies lead to an increase in average liquidity, with the largest effect during the bust.
    Keywords: intermediaries, housing prices, real-estate cycles
    JEL: R21 D40 R32
    Date: 2020–01
  4. By: Aastveit, Knut Are (Norges Bank and BI Norwegian Business School); Albuquerque, Bruno (Bank of England); Anundsen, André (Housing Lab, Oslo Metropolitan University)
    Abstract: Recent developments in US house prices mirror those of the 1996–2006 boom, but the recovery in construction activity has been weak. Using data for 254 US metropolitan areas, we show that housing supply elasticities have fallen markedly in recent years. Consistent with this, we find that monetary policy shocks have a stronger effect on house prices during the recent recovery than the previous boom. At the same time, building permits respond less. Finally, we find that housing supply elasticities have declined more in areas where land-use regulation has tightened the most, and in areas that experienced the sharpest housing busts.
    Keywords: House prices; heterogeneity; housing supply elasticities; monetary policy
    JEL: C23 E32 E52 R31
    Date: 2020–01–03
  5. By: Minoru Osawa; Jos\'e M. Gaspar
    Abstract: We consider an economic geography model with two inter-regional proximity structures, one due to trade linkages and the other due to social interactions. We investigate how the network structure of social interactions, or the social proximity structure, affects the timing of endogenous agglomeration and the spatial distribution of workers across regions. Endogenous agglomeration emerges when inter-regional trade and/or social interactions incur high transportation costs, and the uniform dispersion occurs when these costs become negligibly small (i.e., when distance dies). In many-region geography, the network structure of social proximity emerges as the determinant of the geographical distribution of workers when trade becomes freer. If social proximity is governed by geographical distance (as in ground transportation), a mono-centric concentration emerges. If geographically distant pairs of regions are ``socially close'' (due to, e.g., passenger transportation modes with strong distance economy such as regional airlines), then geographically multi-centric spatial distribution can be sustainable.
    Date: 2020–01
  6. By: Eleftheria Kontou; Noreen C. McDonald
    Abstract: Improving road safety and setting targets for reducing traffic-related crashes and deaths are highlighted as part of the United Nation's sustainable development goals and vision zero efforts around the globe. The advent of transportation network companies, such as ridesourcing, expands mobility options in cities and may impact road safety outcomes. In this study, we analyze the effects of ridesourcing use on road crashes, injuries, fatalities, and driving while intoxicated (DWI) offenses in Travis County Texas. Our approach leverages real-time ridesourcing volume to explain variation in road safety outcomes. Spatial panel data models with fixed effects are deployed to examine whether the use of ridesourcing is significantly associated with road crashes and other safety metrics. Our results suggest that for a 10% increase in ridesourcing trips, we expect a 0.12% decrease in road crashes (p
    Date: 2020–01
  7. By: Anthony Venables; Julia Bird; Mathilde Lebrand
    Abstract: This paper develops a computable spatial equilibrium model of Central Asia and uses it to analyze the possible effects of the Belt and Road Initiative on the economy of the region. The model captures international and subnational economic units and their connectivity to each other and the rest of the world. Aggregate real income gains from the Belt Road Initiative range from less than 2 percent of regional income if adjustment mechanisms take the form of conventional Armington and monopolistic competition, to around 3 percent if there are localization economies of scale and labor mobility. In the latter case, there are sizeable geographical variations in impact, with some areas developing clusters of economic activity with income increases of as much as 12 percent and a doubling of local populations, while other areas stagnate or even decline.
    Keywords: regional integration, transport infrastructure, spatial modeling, economic geography, Central Asia.
    JEL: F12 F15 R11 R13
    Date: 2020–01–17
  8. By: Paul Goldsmith-Pinkham; Kelly Shue
    Abstract: Housing wealth represents the dominant form of savings for American households. Using detailed data on housing transactions across the United States since 1991, we find that single men earn one percentage point higher unlevered returns per year on housing investment relative to single women, with couples occupying the intermediate range. The gender gap grows significantly larger after adjusting for mortgage borrowing: men earn 6 percentage points higher levered returns per year relative to women. Data on repeat sales reveal that women buy the same property for approximately 2% more and sell for 2% less. The gender gap in housing returns varies by holding period, and arises because of gender differences in the location and timing of transactions, choice of initial listing price, and negotiated discount relative to the listing price. Gender differences in upgrade rates, preferences for housing characteristics, and listing agents appear to be less important factors. The gender gap varies with market tightness and demographic characteristics, but remains large in regions with high average education, income, and house price levels.
    Keywords: housing wealth, return on investments, single women
    JEL: J16 O18 R31
    Date: 2020–01
  9. By: Huang, Donna; Parkinson, Sharon; James, Amity; Liu, Edgar
    Abstract: This study investigated how low-income renters navigate the private rental sector (PRS) via three core pathways: the formal (via traditional or mainstream real estate agent intermediaries), informal (direct to rooms and dwellings privately managed by landlords and sub-landlords) and supported pathways (via community housing agencies). It provides practitioners and policy makers with an evidence base on changing practices and ways forward in shaping equitable PRS institutions.
    Date: 2018–07–18
  10. By: Gilles Duranton; Diego Puga
    Abstract: We develop an urban growth model where human capital spillovers foster entrepreneurship and learning in heterogenous cities. Incumbent residents limit city expansion through planning regulations so that commuting and housing costs do not outweigh productivity gains. The model builds on strong microfoundations, matches key regularities at the city and economy-wide levels, and generates novel predictions for which we provide evidence. It can be quantified relying on few parameters, provides a basis to estimate the main ones, and remains transparent regarding its mechanisms. We examine various counterfactuals to assess quantitatively the effect of cities on economic growth and aggregate income.
    JEL: C52 D24 R12
    Date: 2019–12
  11. By: Joseph Gyourko; Jonathan Hartley; Jacob Krimmel
    Abstract: We report results from a new survey of local residential land use regulatory regimes for over 2,450 primarily suburban communities across the U.S. The most highly regulated markets are on the two coasts, with the San Francisco and New York City metropolitan areas being the most highly regulated according to our metric. Comparing our new data to that from a previous survey finds that the housing bust associated with the Great Recession did not lead any major market that previously was highly regulated to reverse course and deregulate to any significant extent. Moreover, regulation in most large coastal markets increased over time.
    JEL: R1 R14 R31 R52
    Date: 2019–12
  12. By: Divya Singh
    Abstract: Recently, many cities have proposed property tax incentives on new construction to counteract rising rents. However, to date, there is little empirical evidence on their local effects. This paper uses a natural experiment in New York City to estimate the local effects of new tax-exempt residential construction. In 2006, the city government decided to make property tax incentives on new construction less generous, but only starting in 2008. Developers rushed to build and claim incentives before the deadline in response. I instrument the number of new units developed within 150 meters from a rental building by the baseline number of vacant parcels available within the same distance. Using a new dataset of rents and investment at the level of a building, I find that the existing rental buildingâs rent increased by 2.3% in response to an additional tax-exempt unit built within a 150 meters radius. I provide evidence consistent with the hypothesis that new residential investment rendered neighborhoods more desirable by attracting affluent households and facilitating the entry of businesses and consumption amenities. Overall, the results indicate that tax-exempt new construction spurred gentrification.
    JEL: R31 H23 H71 H30
    Date: 2020–01–20
  13. By: Jiafeng Chen; Edward L. Glaeser; David Wessel
    Abstract: Will the Opportunity Zone program, America’s largest new place-based policy in decades, generate neighborhood change? We compare single-family housing price growth in Opportunity Zones with price growth in areas that were eligible but not included in the program. We also compare Opportunity Zones to their nearest geographic neighbors. All estimates rule out price impacts greater than 1.3 percentage points with 95% confidence, suggesting that, so far, home buyers don’t believe that this subsidy will generate major neighborhood change. Opportunity Zone status reduces prices in areas with little employment, perhaps because buyers think that subsidizing new investment will increase housing supply.
    JEL: H73 R30 R38 R58
    Date: 2019–12
  14. By: Heaphy, Liam James (Maynooth University)
    Abstract: The study of physical and social divisions in divided societies has long been an area of study, such as the continued usage of 'peace walls' in Belfast, hostile architecture to prevent anti-social behaviour and rough sleeping, and the securitisation of private spaces. In the context of a new drive to create a smart district, this paper looks at the relationship between smart urbanism and planning, and at the spatial and social divisions between a new 'gentrifying' and well-educated community in the Dublin Docklands and established communities in the area. The Dublin Docklands redevelopment marks a significant break from a pattern of suburbanisation and inner-city decline and repurposes part of the former port area as a city centre extension. The paper accounts for the reshaping of the Dublin Docklands as a ‘smart district’ in collaboration with the city authorities, based on over thirty semi-structured interviews and participant-observation at consultation events. It argues that reductive definitions of smart cities as networking technologies be reworked into broader considerations on urban technologies and the future of cities, with greater emphasis on the relationship between technologies branded as ‘smart’ and the material and digital manifestation of boundaries in urban form.
    Date: 2018–01–12
  15. By: Bach, Maximilian
    Abstract: Most school systems grant teachers and school principals considerable discretion in grade retention decisions. This paper argues that schools can exploit this discretion by selectively retaining students to reduce class size which potentially has important implications for public spending on education and affected students. To this end, I build a model in which class size is subject to a class size cap, with teachers and school principals determining the share of students to be retained. This leads to a set of empirical predictions that can be tested with minimal data requirements. Testing these predictions using administrative data for German primary schools yields strong evidence of schools strategically using grade retention to reduce class size.
    Keywords: Grade retention,Class size,Incentives
    JEL: I20 I28 I29
    Date: 2019
  16. By: Chang, Pao-Li (School of Economics, Singapore Management University); Lu, Angdi (School of Economics, Singapore Management University); Yi, Xin (School of Economics, Singapore Management University)
    Abstract: We quantify the supply-side determinants of quality specialization across space. Specifically, we complement the quality specialization literature in international trade and study how larger cities specialize in higher-quality goods within a country. In our general equilibrium model, firms in larger cities produce goods with higher quality, because agglomeration benefits accrue more to skilled workers who are also more efficient in upgrading quality. Two channels are at work in our model. The first channel is through the treatment effect of agglomeration, such that firms become more productive if they locate in a larger city. The second channel works through sorting, in that more pro-ductive firms receive higher agglomeration benefits and endogenously sort into larger cities. These two effects are further mitigated by the increasing skill premium with respect to city size, though the latter is dominated in the spatial equilibrium. Using firm-level data from China, we structurally estimate the model and find that product quality is on average 23% higher in big cities than that of small cities. We further find that agglomeration forces account for half of the quality difference in big cities while sorting of firms accounts for another half. A counterfactual policy to relax land use regulation in housing production raises the quality of goods produced in big cities by 5.5% and (in-direct) welfare of all residents by 6.2% through reallocation of economic activities across space.
    Keywords: Agglomeration; Quality Upgrading; Firm Heterogeneity; Sorting
    JEL: D22 F12 R12 R32
    Date: 2019–11–28
  17. By: Yann Bramoullé (Aix-Marseille Univ, CNRS, EHESS, Ecole Centrale, AMSE, Marseille, France.); Habiba Djebbari (Aix-Marseille Univ, CNRS, EHESS, Ecole Centrale, AMSE, Marseille, France. and IZA); Bernard Fortin (Laval University (Economics Department), CRREP, CIRANO and IZA.)
    Abstract: We survey the recent, fast-growing literature on peer effects in networks. An important recurring theme is that the causal identification of peer effects depends on the structure of the network itself. In the absence of correlated effects, the reflection problem is generally solved by network interactions even in non-linear, heterogeneous models. By contrast, microfounda-tions are generally not identified. We discuss and assess the various approaches developed by economists to account for correlated effects and network endogeneity in particular. We classify these approaches in four broad categories: random peers, random shocks, structural endogeneity and panel data. We review an emerging literature relaxing the assumption that the network is perfectly known. Throughout, we provide a critical reading of the existing literature and identify important gaps and directions for future research.
    Keywords: social networks, peer effects, identification, causal effects, randomization, measurement errors
    JEL: C31 C21 C90
    Date: 2020–01
  18. By: Langella, Monica; Manning, Alan
    Abstract: This article investigates the impact of ethnic diversity on individuals' satisfaction with their neighbourhoods. It uses panel data and a variety of empirical methods to control for potential endogeneity of diversity and of location choices. We find that a higher white share raises overall satisfaction with the neighbourhood in our (overwhelming white) sample, but has no significant impact on generalised trust or other commonly used measures of social capital. We suggest that part of the impact of diversity on overall neighbourhood satisfaction may be through an effect on fear of crime, though we find no effect on actual crime.
    Keywords: neighborhood satisfaction; social capital; diversity; deprivation; ES/M010341/1
    JEL: R1 Z10
    Date: 2019–11–01
  19. By: Yann Bramoullé (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Habiba Djebbari (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics); Bernard Fortin (CIRPEE - Centre interuniversitaire sur le risque, les politiques économiques et l'emploi - Centre Interuniversitaire sur le Risque, les Politiques Economiques et l'Emploi, CIRANO - Centre interuniversitaire de recherche en analyse des organisations - UQAM - Université du Québec à Montréal , IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics)
    Abstract: We survey the recent, fast-growing literature on peer effects in networks. An important recurring theme is that the causal identification of peer effects depends on the structure of the network itself. In the absence of correlated effects, the reflection problem is generally solved by network interactions even in non-linear, heterogeneous models. By contrast, microfounda-tions are generally not identified. We discuss and assess the various approaches developed by economists to account for correlated effects and network endogeneity in particular. We classify these approaches in four broad categories: random peers, random shocks, structural endogeneity and panel data. We review an emerging literature relaxing the assumption that the network is perfectly known. Throughout, we provide a critical reading of the existing literature and identify important gaps and directions for future research.
    Keywords: social networks,peer effects,identification,causal effects,randomization,measurement errors
    Date: 2019–12
  20. By: Bandyopadhyay, Sanghamitra; Green, Elliott D.
    Abstract: We investigate the relationship between mortality decline and urbanization, which has hitherto been proposed by demographers but has yet to be tested rigorously in a global context. Using cross-national panel data we find evidence of a robust negative correlation between crude death rates and urbanization. The use of instrumental variables suggest that this relationship is causal, while historical data from the early 20th century suggests that this relationship holds in earlier periods as well. Finally, we find robust evidence that mortality decline is correlated with urbanization through the creation of new cities rather than promoting urban growth in already-extant cities.
    Keywords: Urbanization; Mortality Decline; Economic Development; Structural Change; Demographic Transition
    JEL: Q15
    Date: 2018–03–01
  21. By: Gerxhani, Klarita; Kosyakova, Yuliya (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "Empirically identifying the causal effect of social networks on migrants' economic prospects is a challenging task due to the non-random residential sorting of migrants into locations with greater opportunities for (previous) connections. Our study addresses this selection-bias issue by using a unique natural-experimental dataset of refugees and other migrants that were exogenously allocated to their first place of residence by German authorities. The empirical results reveal a positive causal effect of social networks on migrants' transition rate to the first job, but only if the networks are mobilized for the job search." (Author's abstract, IAB-Doku) ((en))
    JEL: F22 L14 J61 R23
  22. By: Jessie Handbury
    Abstract: This paper shows that the products and prices offered in markets are correlated with local income-specific tastes. To quantify the welfare impact of this variation, I calculate local price indexes micro-founded by a model of non-homothetic demand over thousands of grocery products. These indexes reveal large differences in how wealthy and poor households perceive the choice sets available in wealthy and poor cities. Relative to low-income households, high-income households enjoy 40 percent higher utility per dollar expenditure in wealthy cities, relative to poor cities. Similar patterns are observed across stores in different neighborhoods. Most of this variation is explained by differences in the product assortment offered, rather than the relative prices charged, by chains that operate in different markets.
    JEL: F11 R11 R22 R32 L81
    Date: 2019–12
  23. By: Haas, Astrid; Kriticos, Sebastian
    Abstract: This report discusses several policy options for improving the calculation and collection of specific land value capture instruments. Namely: Land Value Increment Taxes; Betterment Levies; Development Impact Fees and Exactions. The report focuses on the city of Amman, however, several of the policy challenges and solutions that emerge are common to many developing cities. Specifically, the researchers detail potential avenues for reform to improve assessment and calculation, issuance, and collection of land value capture instruments. Improving clarity around different value capture tools used by cities – in terms of who pays, when they pay, and for what reason – is a first step for improved performance. Clarity must then be supported by greater transparency over how charges are calculated as well as clear communication to demonstrate how tax money is effectively used. The researchers detail several incremental steps that could improve land value capture, ultimately helping city governments to raise finances and support urban sustainable growth through targeted public investments.
    JEL: E6 R14 J01
    Date: 2019–10–28
  24. By: Christian Ghiglino (Department of Economics, University of Essex, UK); Kazuo Nishimura (RIEB, Kobe University, Japan); Alain Venditti (Aix-Marseille Univ, CNRS, EHESS, Ecole Centrale, AMSE, Marseille, France.)
    Abstract: We consider an economy with three cities producing different outputs. Two cities produce intermediate goods, a type 1 producing an intermediate "agricultural" good with capital and labor only, and a type 2 producing an intermediate "industrial" good with capital, labor and human capital, and the last type 3 city produces the final good which is obtained from the two intermediate goods and labor. The asymmetric introduction of human capital allows us to prove that the three cities experience at the equilibrium heterogeneous endogenous growth rates which are proportional to the growth rate of human capital. We show that the "industrial" type 2 city is characterized by the larger growth rate while the "agricultural" type 1 city experiences the lower growth rate, and thus the type 3 city is characterized by a growth rate which is a convex combination of the two formers. This implies that the relative size in terms of output of the "agricultural" city decreases over time. This property allows to recover the empirical fact that most nonagricultural production occurs in growing metropolitan areas. But, simultaneously, as we prove that total labor employed in each city is proportional to the total population, the relative population size distribution of cities is constant over time as shown in empirical studies.
    Keywords: urban dynamics, human capital, endogenous growth, heterogeneous growth rates, city inequalities
    JEL: C61 C62 O41 R11 R12
    Date: 2020–01
  25. By: Kitchin, Rob (National University of Ireland Maynooth)
    Abstract: To date, critical examinations of smart cities have largely ignored their temporality. In this paper I consider smart cities from a temporal perspective arguing that they produce a new timescape and constitute space-time machines. The first half of the paper examines temporal relations and rhythms, exploring how smart cities are the products of and contribute to space-time compression, create new urban polyrhythms, alter the practices of scheduling, and change the pace and tempos of everyday activities. The second half of the paper details how smart cities shape the nature of temporal modalities, considering how they reframe and utilise the relationship between the past, present and future. The analysis draws from a set of 43 interviews conducted in Dublin, Ireland, and highlights that much of the power of smart urbanism is derived from how it produces a new timescape, rather than simply reconfiguring spatial relations.
    Date: 2017–11–27
  26. By: Khandaker Mursheda, Farhanan; Kazi Abdul, Mannan
    Abstract: This paper examines the socioeconomic impacts of regional rural urban migration of marginal segment in Rajshahi city corporation slum areas in Bangladesh. Key objective of this article is to examine the results of the first phase, i.e, the findings of the 2003-04 survey, compare with the recent outcomes, whether or not there is any change in the interval of time, and to see the significance level of each variable. For this purpose, primary survey data were collected of 300 randomly selected respondents by using semi-structured questionnaire in slum areas. To analyse the data, the econometric model is developed to observe the association between dependent and the exploratory socioeconomic impacts variables. Statistically advance technique by establishing a backward elimination regression process to analyse the cross-sectional survey data. Therefore, in the long regression model indicate twelve variables are significant while short regression delve out only ten extremely significant variables that are in the place of destination: economic conditions, increasing savings, poverty level increase, cultural adjustment problem and children educational opportunity; and at the origin: investment in housing development, investment in land purchase, help to relative by providing job, participating social activities and loan repayment. The duration of almost fifteen years period, there is a periodical change also explores the positive socioeconomic impacts of slum households. Thus this study suggested longitude depth research compare to migrate and non-migrated households at the origin as well as destination to find overall impacts for the both societies.
    Keywords: socioeconomic, marginal segment, rural-urban, migration, impact
    JEL: J0 J01 J6 J61 O5 O50
    Date: 2019
  27. By: Jill Furzer; Elizabeth Dhuey; Audrey Laporte
    Abstract: We estimate over- or under-identification of ADHD occurring in school-based behavioural assessments. To isolate teacher ADHD assessment error direction, we use primary school starting age and teacher-parent assessment residuals. Being young-for-grade or male generates some over-assessment. However, the under-assessment of the oldest students in a grade, especially the oldest females, drives the school starting age gap in ADHD identification. We link this gender breakdown to the growing gender gap in educational attainment. Importantly, teacher special education training mitigates these relative age-based assessment errors.
    Keywords: ADHD, misdiagnosis, gender gaps, human capital, teacher training
    JEL: I10 I12 I21 J24
    Date: 2020–01
  28. By: Young, Mischa; Farber, Steven
    Abstract: Convenience and low prices have enabled ride-hailing companies, such as Uber and Lyft, to position themselves amongst the most valuable companies within the transportation sector. They now account for the lion share of activities in the platform economy and play an increasing role within our cities. Despite this, very little is known about the type of people that use them, nor the purpose and timing of trips. In addition to this, their effect on other modes, such as taxis and public transit, remains, for the most part, widely unexplored. By comparing the socioeconomic and trip characteristics of ride-hailing users to that of other mode users, we find ride-hailing to be a wealthy younger generation phenomenon. While our results show that ride-hailing is too minute and inconsequential to influence the ridership level of other more substantial modes of travel overall, when considering specific market segments, the rise of ride-hailing corresponds to a significant decrease in taxi ridership and a rise in active modes of travel. Moreover, due to the specific age, timing, and purpose of our subsample, we believe that ride-hailing may effectively reduce drunk-driving, and are convinced that as this mode increases in importance in the future, it will have a much more pronounced effect on the level of ridership of other modes as well.
    Date: 2019–01–01
  29. By: Kang, Jung Koo; Loumioti, Maria; Wittenberg-Moerman, Regina
    Abstract: We explore whether the transparency in banks’ lending activities enhances the harmonization of credit terms that a bank offers across its different geographic regions. We take advantage of a novel loan-level reporting initiative by the European Central Bank, which requires repo borrowing banks that pledge their asset-backed securities as collateral to disclose granular information on loan characteristics and performance. We find that loans originated under the transparency regime share more similar interest rate, loan-to-collateral-value ratio and maturity compared to same-purpose loans issued by the same bank in different regions. Underperforming regional branches and those with less easily accessible peer-branches experience greater convergence in their credit terms, suggesting that transparency facilitates learning across a bank’s different geographic regions. Additionally, banks that face stronger regulatory scrutiny are more likely to alleviate credit term disparities under the transparency regime. Overall, our findings suggest that transparency enhances the within-bank harmonization of lending practices. JEL Classification: M41, G21, D83
    Keywords: credit market, harmonization, learning, regulatory scrutiny, transparency
    Date: 2020–01
  30. By: Reinhold Kosfeld (University of Kassel); Timo Mitze (Southern University of Denmark)
    Abstract: Modern cluster theory provides reasons for positive external effects that accrue from the interaction of spatially proximate firms operating in common and related fields of economic activity. In this paper, we examine the impact of R&D-intensive clusters as a key factor of regional competitiveness on productivity and innovation growth. In analogy to the industry-oriented concepts of related and unrelated variety (Frenken, Van Oort, Verburg 2007), we differentiate between effects of cluster specialisation and diversity. The identification of R&D-intensive clusters is based on a hybrid approach of qualitative input-output analysis and spatial scanning (Kosfeld and Titze 2017). Our empirical study is conducted for a panel of German NUTS-3 regions in 2001-2011. To comprehensive account for specialisation and diversity effects of clustering we adopt a spatial econometric approach, which allows us to identify these effects beyond the geographical boundaries of a single region. After controlling for regional characteristics and unobserved heterogeneity, a robust ‘cluster strength’ effect (i.e. specialization) on productivity growth is found within the context of conditional convergence across German regions. With regard to the underlying mechanisms, we find that the presence of a limited number of R&D-intensive clusters in specific technological fields is most strongly linked to higher levels of regional productivity growth. While we also observe a positive effect of cluster strength on innovation growth once we account for spatial spillovers, no significant effects of ‘cluster diversity’ can be identified. This indicates that some but not all cluster-based regional development strategies are promising policy tools to foster regional growth processes.
    Keywords: Industry clusters, regional competitiveness, cluster specialisation, cluster diversity, correlated random effects model
    JEL: L16 R11 R15
    Date: 2020
  31. By: Sang-yoon Song (Economic Research Institute, Bank of Korea)
    Abstract: This paper investigates the relationships between consumption and mortgage interest reduction caused by an expansionary monetary policy, using comprehensive borrower-level information on mortgages and credit card purchases from a credit bureau company in South Korea. The main findings are as follows: (i) the significant and negative relationship between mortgagors¡¯ interest payments and consumption comes from borrowers with ARMs (Adjustable-Rate Mortgages), (ii) among mortgagors with ARMs, those with low liquidity and credit accessibility show a high interest-induced MPC (Marginal Propensity to Consume), (iii) the debt burdens of mortgagors have a weaker effect on the interest-induced MPC heterogeneity due to active deleveraging behavior of borrowers with a high debt burden, (iv) while unconstrained borrowers consistently show low and insignificant MPCs, constrained borrowers (those with low liquidity, credit accessibility) maintain long-lasting high MPCs for eight quarters after interest reduction, and (v) the MPC of those with low liquidity becomes lower as time goes by, indicating that windfall gains by mortgage interest reduction help to relax the liquidity constraints they face. These results imply that financial characteristics of mortgage borrowers can affect the magnitude and persistence of the cash flow channels of an expansionary monetary policy.
    Keywords: Mortgage, Consumption, Monetary Policy, Household Debt
    JEL: D14 E21 E52
    Date: 2019–07–29
  32. By: Skapinaki, Athina; Salamoura, Maria
    Abstract: The current study aims to examine the impact of teachers’ job satisfaction and self-efficacy in improving service quality. The results, using clustering, indicated three groups of respondents according to their behavior, as teachers emphasizing on different aspects of marketing: external, interactive and internal marketing. Moreover, factor analysis, revealed that their satisfaction was affected by “Workplace Relationships with the Director and Colleagues”, "Educational Management", "Social Recognition and Professional Development", "Relationships with Parents and Students", "Infrastructure" and "Working Conditions and Nature of Work", while "Class and Students’ Relationships Management" and "Students’ Engagement and Educational Strategies" were influencing parameters of teachers’ self–efficacy.
    Keywords: Teachers’ self-efficacy, teachers’ job satisfaction, service quality in schools, service marketing triangle
    JEL: A20 I2 P36
    Date: 2020–01–30
  33. By: Semih Tumen (TED University)
    Abstract: Existing evidence suggests that low-skilled refugee influx increases high school enrollment among native youth due to increased competition for jobs with low skill requirements. In this paper, I ask whether the refugee influx has also increased the intensity of human capital accumulation for those who are enrolled in school. Using the PISA database and implementing an empirical strategy designed to exploit the time variation in regional refugee intensity within a quasi-experimental setting, I show that the Math, Science, and Reading scores of Turkish native adolescents have notably increased following the Syrian refugee influx—conditional on parental education, which is used as a proxy for unobserved ability. The increase in PISA scores is more pronounced for males than females. Most importantly, the increase in test scores mostly comes from the lower half of the test score distribution. This suggests that the refugee influx has reduced the test score inequality among natives. I conclude that the labor market forces that emerged in the aftermath of the refugee crisis have led native adolescents, who would normally perform worse in school, to take their high school education more seriously.
    Date: 2019–10–20
  34. By: Nikhil Agarwal; Paulo J. Somaini
    Abstract: Preferences for schools are important determinants of equitable access to high-quality education, effects of expanded choice on school improvement and school choice mechanism design. Standard methods for estimating consumer preferences are not applicable in education markets because students do not always get their first choice school. This review describes recently developed methods for using rich data from a school choice mechanism to estimate student preferences. Our objectives are to present a unifying framework for these methods and to help applied researchers decide which techniques to use. After laying out methodological issues, we provide an overview of empirical results obtained using these models and discuss some open questions.
    JEL: D47 I21
    Date: 2019–12
  35. By: Leonardo Bursztyn; Georgy Egorov; Ruben Enikolopov; Maria Petrova
    Abstract: We study the causal effect of social media on ethnic hate crimes and xenophobic attitudes in Russia using quasi-exogenous variation in social media penetration across cities. Higher penetration of social media led to more ethnic hate crimes, but only in cities with a high pre-existing level of nationalist sentiment. Consistent with a mechanism of coordination of crimes, the effects are stronger for crimes with multiple perpetrators. We implement a national survey experiment and show that social media persuaded young and low-educated individuals to hold more xenophobic attitudes, but did not increase respondents' openness to expressing these views. Our results are consistent with a simple model of social learning where penetration of social networks increases individuals' propensity to meet like-minded people.
    JEL: D7 H0 J15
    Date: 2019–12
  36. By: Lars Mewes; Tom Broekel
    Abstract: Previous research shows ample evidence that regional diversification is strongly path-dependent, as regions are more likely to diversify into related than unrelated activities. In this paper, we ask whether contemporary innovation policy in form of R&D subsidies intervenes in the process of regional diversification. We focus on R&D subsidies and assess if they cement existing path-dependent developments, or if they help in breaking these by facilitating unrelated diversification. To investigate the role of R&D policy in the process of regional technological diversification, we link information on R&D subsidies with patent data and analyze the diversification of 141 German labor-market regions into new technology classes between 1991 and 2010. Our findings suggest that R&D subsidies positively influence regional technological diversification. In addition, we find significant differences between types of subsidy. Subsidized joint R&D projects have a larger effect on the entry probabilities of technologies than subsidized R&D projects conducted by single organizations. To some extent, collaborative R&D can even compensate for missing relatedness by facilitating diversification into unrelated technologies.
    Keywords: regional technological diversification, relatedness, innovation, policy, R&D subsidies
    JEL: O31 O33 O38
    Date: 2020–01
  37. By: Knies, Gundi; Melo, Patricia C.; Zhang, Min
    Abstract: We investigate the effect of neighbourhood deprivation on individual subjective and objective wellbeing for England and Wales. Our identification strategy combines rich longitudinal information on individual characteristics, family background and initial job conditions with panel data estimators and sample restrictions, which address residential sorting bias and neighbourhood-specific confounding effects. Our findings suggest that the effect of neighbourhood deprivation on life satisfaction and wages is not a genuine causal effect, but largely explained by strong spatial sorting mechanisms. We also find that the results overall do not vary by the bespoke spatial scale used to operationalize neighbourhoods.
    Date: 2020–01–28
  38. By: Ying Bai; Ruixue Jia
    Abstract: We argue that China, with its long history, a relatively stable political system, and multiple regime changes, provides us an opportunity to investigate the political economy of administrative hierarchy. Using prefecture-level panel data and exploiting regime changes during AD1000-2000, we find that gaining and losing importance in the political hierarchy led to the rise and decline of different prefectures (measured by population density and urbanization). Moreover, political hierarchy shapes regional development via both political and market channels (reflected by public employment and transportation networks). More broadly, our study serves as new evidence on how politics shapes economic geography and offers a context to understand changes in economic activity location in the long run.
    JEL: H11 N95 O11
    Date: 2020–01
  39. By: Merriman, Ben
    Abstract: The development of new spatial methods has heightened long-standing interest in the local organization of urban life. This growth in empirical research has run ahead of theories about the nature of local space: to a large extent, contemporary sociology employs the same conceptions of space developed in works of the Chicago School produced between 1918 and the early 1930’s. This article describes three major notions of locality developed by the Chicago School, respectively defined by ecology, institutions, and subjective perceptions. These accounts of locality are not theoretically consistent, and make reference to partially distinct empirical phenomena. A brief survey of contemporary neighborhood research reveals the persistence of these spatial accounts, as well as uncertainty about the goals of neighborhood research. Revisiting the accounts of urban place developed by the Chicago School suggests five distinct ends for research on locality: research programs focusing specifically on ecology, institutions, or perceptions; methodological and theoretical pluralism in pursuit of maximally rich description; and empirical integration seeking to describe the role of multiple processes in the production of local space. Citation: Merriman, Ben. 2015. “Three Conceptions of Spatial Locality in Chicago School Sociology (And Their Significance Today)” American Sociologist 46(2):269-287.
    Date: 2017–12–14
  40. By: Michiel Bliemer; Laurent Denant-Boemont (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique); Sabrina Hammiche (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique); David Hensher; Corinne Mulley
    Abstract: This paper presents a laboratory experiment to investigate how urban costs might determine the internal structure of urban areas (monocentric or polycentric) by influencing location choices of firms and households. The experimental design is in part guided by a theoretical model that shows how the trade-off between communication costs faced by firms and commuting costs borne by workers determine the degree of cities' polycentricism by influencing the distribution of the workplaces within it. In the laboratory experiment, groups of 16 subjects participated in a two-step auction game, where firms and workers first negotiated to find a job contract and second where workers bid for land in order to find a home. The game is repeated for four rounds and different experimental treatments are implemented, each defining a given scenario for communication costs and commuting costs. The chosen benchmark is a polycentric city treatment, where no communication cost exists for firms, giving them no incentive to locate in the CBD. In two other treatments, the communication cost is positive. In the Monocentric City treatment, commuting cost for workers is low, giving a clear incentive for firms to locate in the CBD, as workers do not suffer from potential high commuting costs, giving an outcome where all firms should locate in the CBD. In the Hierarchical City treatment, the commuting cost is very high for workers, giving workers a strong incentive to live close to their workplace and accepting lower wages as a result. Experimental results are in line with theoretical predictions: firms tend to locate in the CBD under the monocentric treatment, whereas more distant locations are accepted leading to a hierarchical outcome as workers propose lower wages for not working in the CBD so as to escape high commuting costs.
    Keywords: Polycentric City,commuting costs,location choices,job contracts
    Date: 2020–01–15
  41. By: Fitch, Dillon; Carlen, Jane; Handy, Susan
    Abstract: In this study, researchers use survey data to analyze bicycling comfort and its relationship with socio-demographics, bicycling attitudes, and bicycling behavior. An existing survey of students, faculty, and staff at UC Davis (n=3089) who rated video clips of bicycling environments based on their perceived comfort as a part of the UC Davis annual Campus Travel Survey (CTS) is used. The video clips come from a variety of urban and semi-rural roads (designated California state highways) around the San Francisco Bay Area where bicycling rates vary. Results indicate considerable effects of socio-demographics and attitudes on absolute video ratings, but relative agreement about which videos are most comfortable and uncomfortable across population segments. In addition, presence of bike infrastructure and low speed roads are the strongest video factors generating more comfortable ratings. However, the results suggest that even the best designed on-road bike facilities are unlikely to provide a comfortable bicycling environment for those without a predisposition to bicycle. This suggests that protected and separated bike facilities may be required for many people to consider bicycling. Nonetheless, the results provide guidance for improving roads with on-street bike facilities where protected or separated facilities may not be suitable. View the NCST Project Webpage
    Keywords: Engineering, Social and Behavioral Sciences, Cycling, active travel, infrastructure
    Date: 2020–01–01
  42. 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: 2019–12
  43. By: Catalin VRABIE (National University of Political Studies and Public Administration, Romania)
    Abstract: A main characteristic of smart cities is the use of information and communications technology in all aspects of city life. In this regard, Internet of Things (IoT) is a core element in the process of developing communities “ruled” by an improved communication, better understanding and wait times decrease. This paper aims to present the ways in which IoT networks and services can contribute to develop smart cities, giving as example various cities that have implemented this concept. The methodology used to carry out this research is both bibliographic – opting here to study the work of specialists in the field, authors from Romania and abroad, and empirical – formed by a case study on various smart cities around the world that use IoT. This type of smart cities is starting to transform all public institutions, changing their culture, from one control-based to one performance-centered. IoT is starting to play an important role in smart cities’ evolution and it brings an improvement in the government-citizens relationship. We have identified that although technology is a central element, there should also be considered the capability and willingness of citizens and public institutions to collaborate in order to implement the best solutions for the communities.
    Keywords: future cities, IoT, smart cities.
    JEL: H83
    Date: 2019–06
  44. By: José Pedro Pontes; Armando J. Garcia Pires
    Abstract: We use a location model due to VON THUNEN (1826)and MILLS (1970; 1972, chapter 5) to determine the patterns of the spatial distribution of manufacturing. In a homogeneous space organized around an activity center (a “Town”), a set of competitive firms produce two complementary commodities: product 1 is a consumer good and product 2, an intermediate good.Firms in both vertically related stages use land and downstream producers of commodity 1 use also product 2 as an input. The productive activity takes place under fixed proportions and the economy is competitive.We further introduce increasing returns, which are external to the firmand derive from a fixed input (a “machine”)that is shared by all manufacturers. We presuppose that such a “machine”is supplied by the set of landowners if the fixed cost is covered by the increase in total land rent (or capitalized value of land) related with its installation. This model can be interpreted in two different ways. Either the intermediate good is viewed as a raw material that is produced by farmers and successively “refined” by a manufacturer,who uses a “mill” or “distillery” for that purpose, or it can stand for “labor” supplied by households with residential land. The economic results are the same in both cases.The model shows that the decentralization of manufacturing and its spatial integration with primary production orworkers’ residences takes place more likely in industries that are labor-intensive (or show high “refining rates” of raw materials) and relatively small fixed costs requirements. The factories that relocate away from the activity center will likely stay in areas at an intermediate distance rather than in remote territories since they would then face too high transport costs in exporting back their output.
    Keywords: Manufacturing Location; Industrialization; External Economies of Scale
    JEL: O12 O14 R12
    Date: 2020–01
  45. By: Brendan J. Casey; Wayne B. Gray; Joshua Linn; Richard Morgenstern
    Abstract: Pricing carbon emissions from a jurisdiction could harm the competitiveness of local firms, causing the leakage of emissions and economic activity to other regions. Past research concentrated on national carbon prices, but the impacts of subnational carbon prices could be more severe due to the openness of regional economies. Focusing on subnational carbon pricing in the United States, we specify a flexible model to capture competition between a plant in a state with carbon pricing and plants in other states or countries. We estimate model parameters using confidential plant-level data from 1982–2011 and simulate the effects of regional carbon prices covering the Northeast and Mid-Atlantic (regions that currently cap carbon emissions from the electric sector) on manufacturing output, employment, and profits. Importantly, we model industry mix within a state or region, not simply energy price differences. A carbon price of $10 per metric ton reduces employment in the regulated region by 2.7 percent, and raises employment in nearby states by 0.8 percent; the effects on output and profits are broadly similar. National employment falls just 0.1 percent, suggesting that domestic plants in other states as opposed to foreign facilities are the principal winners from state or regional carbon pricing.
    JEL: Q4 Q52 Q58
    Date: 2020–01
  46. By: Allen, Jeff (University of Toronto); Farber, Steven
    Abstract: Success in postsecondary education is related to the amount of time spent on campus. The more often students attend class and access on-campus learning resources, the better their grades and the lower their dropout rates. Despite the importance of on-campus participation in student outcomes, some students living in large cities face tremendous transportation and time-use barriers that make it difficult to spend more time on campus. Accordingly, the objective of our project is to examine the mobility factors that prevent students from attending their campuses in the Greater Toronto Area (GTA). Specifically, we examine student disparities in barriers to participate based on where they live, their mobility options, as well as the time constraints of their daily activity patterns (e.g. part time work). Data for our project is drawn from a 1-day travel survey of students across seven university campuses in the GTA. This is augmented with computationally derived transport accessibility factors. Multivariate logistic regression models are then employed to uncover the mobility-related determinants for a) if students feel commuting discourages them from travelling to campus; b) if students pick courses based on their commute; c) if commuting discourages students from participating in university organized activities; and d) how many days per week a student visits campus. The results of these models fuel a discussion of how to limit mobility-related barriers to postsecondary student participation.
    Date: 2018–01–01
  47. By: Goodman, Christopher B (Northern Illinois University)
    Abstract: This study exploits exogenous policy discontinuities along state borders to estimate the influence of differences in local autonomy on the usage of special districts in U.S. counties. Using forty years of data, this analysis compares counties on either side of state borders where local autonomy differs and finds little to no evidence that negative changes in local autonomy leads to increased utilization of special districts. This study suggests that some prior literature may overstate the importance of local autonomy in local service delivery.
    Date: 2018–01–02
  48. By: Alejandro D. Jacobo; Konstantin A. Kholodilin
    Abstract: Following World War I, rent control became a standard policy response to the housing shortage and the resulting rent increases. Typically, economists blame it for creating inefficiencies in the housing market and beyond. We investigate whether rental market regulations (including rent control, protection of tenants from eviction, and housing rationing) had any effects in a middle-income Latin American economy, such as Argentina. To answer this question, we take advantage of a wide range of housing market indicators and restrictive rental regulation indices covering almost one century. Using a standard OLS model and MARS, a non-linear estimation technique, we find that rental market regulations have exerted a statistically significant negative impact on the growth rates of the real housing rents. However, they were only effective for short periods following both World Wars, when regulations were novel and particularly strong.
    Keywords: Argentina, housing rents, rent control, rental market regulations
    JEL: C21 E31 R38
    Date: 2020
  49. By: Kriticos, Sebastian; Henderson, J. Vernon
    Abstract: Many African countries are urbanising rapidly despite limited growth in manufacturing. Although other sectors could spur job creation and development, much like manufacturing, they need active public policy to support urban connectivity and business scale. Although the growth of cities in Africa has been closely linked to rising incomes across the continent, many countries have rapidly urbanised without the same gains in economic growth and poverty reduction that have been seen elsewhere. One potential reason is that urbanisation in Africa has not promoted a sustained period of structural transformation: shifting from growth dominated by agriculture and small-scale local services towards growth led by manufacturing and knowledge-intensive industries. This has led some observers to question Africa’s long-term prospects for development. This growth brief explores the prospects for manufacturing-led growth in Africa’s cities
    JEL: R14 J01
    Date: 2019–11–01
  50. By: Bachtler, John; Begg, Iain
    Abstract: Regional development is one of the main EU spending priorities through its Cohesion Policy. Brexit is among several influences on the future of the policy, whose evolution is part of a wider reshaping of the principles and practice of regional policy in Europe. In the context of emerging policy challenges and recent contributions to the regional policy literature, the article highlights innovation, human capital and effective institutions as three crucial dimensions of future policy. It argues that a shift in regional policy priorities, governance and territorial focus is underway – partly influenced by place-based policy thinking - at EU level under Cohesion Policy as well as under national regional policies in the EU27 and the UK.
    Keywords: Brexit; EU Cohesion Policy; place‐based policy; regional development; regional policy
    JEL: F15 H77 L52 R11 R58
    Date: 2018–03–01
  51. By: Anderson, Donald N. (Southwest University of Visual Arts)
    Abstract: The spread of GPS-based location services using smartphone applications has led to the rapid growth of new startups offering smartphone-enabled dispatch service for taxicabs, limousines, and ridesharing vehicles. This change in communicative technology has been accompanied by the creation of new categories of car service, particularly as drivers of limousines and private vehicles use the apps to provide on-demand service of a kind previously reserved for taxicabs. One of the most controversial new models of car service is for-profit ridesharing, which combines the for-profit model of taxi service with the overall traffic reduction goals of ridesharing. A preliminary attempt is here made at understanding how for-profit ridesharing compares to traditional taxicab and ridesharing models. Ethnographic interviews are drawn on to illustrate the range of motivations and strategies used by for-profit ridesharing drivers in San Francisco, California as they make use of the service. A range of driver strategies is identified, ranging from incidental, to part-time, to full-time driving. This makes possible a provisional account of the potential ecological impacts of the spread of this model of car service, based on the concept of taxicab efficiency, conceived as the ratio of shared vs. unshared miles driven.
    Date: 2018–01–02
  52. By: Sébastien Ménard (TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS - Centre National de la Recherche Scientifique, GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université)
    Abstract: Usually, the literature on benefit sanctions focuses on the effects on labour supply. In this paper, we integrate commuting costs in an equilibrium job search model with wages posting to analyse the effects of job search monitoring on labour demand. We show that benefit sanctions increase job creation, but degrade the job quality and the average job-productivity. In addition, we emphasise that the optimal UB system is characterised by using both benefit sanctions and the mutualisation of commuting costs.
    Keywords: Wage dispersion,Job search,sanctions,Monitoring
    Date: 2020–01–15
  53. By: Azhar Hussain Potia; Juliana Silva-Goncalves; Benno Torgler; Uwe Dulleck
    Abstract: We introduce a novel incentive program aimed at decreasing school absenteeism based on the effect of voluntary promises in motivating desirable behaviour. In contrast to a standard program, in which students receive a reward conditional on having achieved a school attendance rate of at least 90 percent, in the promise program, they receive the reward up front, conditional on their commitment to invest their best efforts to reach the attendance target. We assess the effectiveness of the promise program through a field study involving Indigenous Australian high school students, a population who tends to have lower education achievement and socioeconomic advantage than their non-Indigenous counterparts. We find that the promise program significantly decreased unexplained absences compared to the standard program but that it did not influence overall school absences. Our findings suggest that voluntary promises coupled with small gifts are effective in influencing behaviour of disadvantaged students. At the same time, we need further research on how to best design such programs to achieve positive effects in reducing school absenteeism.
    Keywords: school absenteeism, promises, upfront rewards, Aboriginal and Torres Strait Islander students
    JEL: I24 I25 I28
    Date: 2019
  54. By: Hardman, Scott; Garas, Dahlia; Allen, Jeff; Axsen, Jonn; Beard, George; Dütschke, Elisabeth; Daina, Nicolò; Figenbaum, Erik; Jochem, Patrick; Nicholas, Michael; Plötz, Patrick; Refa, Nazir; Sovacool, Benjamin; Sperling, Daniel; Sprei, Frances; Tal, Gil
    Abstract: Key Takeaways 1. The electrification of passenger vehicles should be one part of a city’s transportation plan. Shifting from internal combustion engine vehicles to plug-in electric vehicles (PEVs) can improve urban air quality, reduce greenhouse gas emissions, and reduce energy consumption. 2. Recent studies show that electric vehicle awareness is low even in mature markets; cities should promote electric vehicles to residents by leveraging existing promotional campaigns. 3. Various financial and non-financial incentives can effectively encourage electric vehicle uptake, including: free, discounted, or preferential-location parking; free or reduced road and bridge tolls; and allowing electric vehicles to drive in bus or carpool lanes. 4. Several cities are restricting or planning to restrict the access that internal combustion engine vehicles (ICEVs) have to certain areas. If these restrictions apply to most (or all) passenger ICEVs, they can promote PEV purchase and use in cities. 5. Infrastructure development in cities should follow the same fundamental approach as that used outside of cities. The priority should be ensuring that PEV owners and prospective PEV buyers have access to charging at or near home. Workplace and public charging should be developed for those who cannot access charging at or near home. 6. Cities should be strategic in their approach, first identifying the goals they want to achieve, and then exploring what steps they can take to meet these goals. The steps available will likely differ between cities due to the different ways in which roads, parking, and any other vehicle infrastructure is governed.
    Keywords: Engineering, Social and Behavioral Sciences
    Date: 2020–01–01
  55. By: Matteo Deleidi; Walter Paternesi Meloni; Luigi Salvati; Francesca Tosi
    Abstract: The promotion of regional convergence is at the heart of the European cohesion policy,although how to stimulate it still is a debated question in the economic theory. Endorsing a Kaldorian perspective, we investigate the determinants of labour productivity in Italian regions by applying Panel Structural VAR modelling to 1981-2013 data. By esplicitly considering the endogeneity among the studied variables, we find that labour productivity is stimulated by output growth and capital accumulation. Our findings bear important implications in terms of policy advice, leading to the conclusion that considerable public investment is necessary to stimulate economic growth and productivity especially in economically depressed areas, like the Italian Mezzogiorno.
    Keywords: Labour productivity; Technical progress; Investment; Regional differentials; Panel SVAR
    JEL: C33 O18 O47 R11
    Date: 2020–01
  56. By: Rong Fan (Jeff); Xuegang (Jeff); Ban
    Abstract: We propose and investigate the concept of commuting service platforms (CSP) that leverage emerging mobility services to provide commuting services and connect directly commuters (employees) and their worksites (employers). By applying the two-sided market analysis framework, we show under what conditions a CSP may present the two-sidedness. Both the monopoly and duopoly CSPs are then analyzed. We showhowthe price allocation, i.e., the prices charged to commuters and worksites, can impact the participation and profit of the CSPs. We also add demand constraints to the duopoly model so that the participation rates ofworksites and employees are (almost) the same. With demand constraints, the competition between the two CSPs becomes less intense in general. Discussions are presented on how the results and findings in this paper may help build CSP in practice and how to develop new, CSP-based travel demand management strategies.
    Date: 2020–01
  57. By: Valmari, Nelli
    Abstract: Abstract A new law on public transport came into effect in Finland in December 2009. According to the new law, regulators are not allowed to restrict competition between bus companies, unless it is necessary for ensuring adequate quantity and quality of transport services. Until 2009 bus companies had to apply for and be granted a licence for operating any given connection, which restricted competition between bus companies. In this brief I look at how the Finnish long-distance bus market has changed from 2006 to 2017. The changes indicate that deregulating entry into the long-distance bus market has benefitted consumers. The supply of long-distance bus connections has increased and, on average, bus ticket fares have ceased to increase. These changes are to a large extent due to the deregulation of the long-distance bus market. Along with the new law, bus companies have become able to enter new routes and increase the number of connections where demand is high. As a result, the number of passengers has increased substantially.
    Keywords: Market entry, Regulation, Deregulation, Competition, Long-distance bus service
    JEL: L52 L92 R40
    Date: 2019–08–30
  58. By: Antonescu, Daniela
    Abstract: This paper contains the main aspects and elements to the next programming period and future regional policy of the European Union. From the perspective of the next programming period, cohesion policy keeps on investing in all regions, still on the basis of three categories (less-developed; transition; more-developed). The allocation method for the funds is still largely based on GDP per capita, but the new criteria are added (youth unemployment, low education level, climate change, and the reception and integration of migrants) to better reflect the reality on the ground.
    Keywords: regional development, cohesion, Structural Funds, European Union
    JEL: R0 R1 R11 R28 R5 R58
    Date: 2020–01
  59. By: Shaheen, Susan; Cohen, Adam
    Abstract: Technology is changing the way we move and reshaping cities and society. Shared and on-demand mobility represent notable transportation shifts in the 21st century. In recent years, mobility on demand (MOD)—where consumers access mobility, goods, and services on-demand by dispatching shared modes, courier services, public transport, and other innovative strategies—has grown rapidly due to technological advancements; changing consumer preferences; and a range of economic, environmental, and social factors. New attitudes toward sharing, MOD, and mobility as a service (MaaS) are changing traveler behavior and creating new opportunities and challenges for public transportation. This chapter discusses similarities and differences between the evolving concepts of MaaS and MOD. Next, it characterizes the range of existing public transit and MOD service models and enabling partnerships. The chapter also explores emerging trends impacting public transportation. While vehicle automation could result in greater public transit competition in the future, it could also foster new opportunities for transit enhancements (e.g., microtransit services, first- and last-mile connections, reduced operating costs). The chapter concludes with a discussion of how MOD/MaaS partnerships and automation could enable the public transit industry to reinvent itself, making it more attractive and competitive with private vehicle ownership and use.
    Keywords: Engineering, Benchmarking, Impacts, Mobility as a service, Mobility on demand, Public policy, Public transit, Public–private partnerships, Shared mobility, Travel behavior, Vehicle automation
    Date: 2020–01–01
  60. By: Lee, Neil; Luca, Davide
    Abstract: There is mounting evidence in the developed world to suggest that there is geographical variation in access to finance. At the same time, there is a growing interest in the advantages of major cities in emerging economies in providing better access to services. Yet there is little evidence on spatial variation in access to finance in the developing world. In this article, we address this gap. We propose that one important function of big cities is to provide better credit markets, but that-as countries develop-this 'big city bias' is likely to decline. We test these hypotheses using data on over 80,000 firms in 97 countries and provide new evidence that firms in large cities-with more than 1 million inhabitants-are less likely to perceive access to capital as a constraint. However, this big-city bias in access to finance declines as countries develop.
    Keywords: access to finance; urbanisation; credit markets; cities; firm financing
    JEL: G10 O16 R51
    Date: 2019–01–01
  61. By: Mahkameh Zarekarizi; Vivek Srikrishnan; Klaus Keller
    Abstract: Homeowners around the world elevate houses to manage flood risks. Deciding how high to elevate the house poses a nontrivial decision problem. The U.S. Federal Emergency Management Agency (FEMA) recommends elevating a house to the Base Flood Elevation (the elevation of the 100-yr flood) plus a freeboard. This recommendation neglects many uncertainties. Here we use a multi-objective robust decision-making framework to analyze this decision in the face of deep uncertainties. We find strong interactions between the economic, engineering, and Earth science uncertainties, illustrating the need for an integrated analysis. We show that considering deep uncertainties surrounding flood hazards, the discount rate, the house lifetime, and the fragility increases the economically optimal house elevation to values well above the recommendation by FEMA. An improved decision-support for home-owners has the potential to drastically improve decisions and outcomes.
    Date: 2020–01
  62. By: Lima, Valesca (University College Dublin)
    Abstract: This article examines the patterns of government intervention in social housing in Brazil to analyse the role of the private sector in the elaboration and implementation of social housing policies during the Workers’ Party government. It draws on case study research, and I examine areas which impact on the way social housing has been implemented since 2003 to study the concentration of decision power the private construction sector has on social housing policymaking, which sets the tone of government intervention on social housing. I argue this was part of the Workers’ Party’s approach to neoliberal policies in a more moderated style, a type of intervention repeated on numerous occasions under previous administrations. This article concludes by noting the prominent role of the private sector in social housing developments.
    Date: 2017–12–11
  63. By: Dana Kassem
    Abstract: I ask whether electrification causes industrial development. I combine newly digitized data from the Indonesian state electricity company with rich manufacturing census data. To understand when and how electrification can cause industrial development, I shed light on an important economic mechanism - firm turnover. In particular, I study the effect of the extensive margin of electrification (grid expansion) on the extensive margin of industrial development (firm entry and exit). To deal with endogenous grid placement, I use an instrumental variable approach exploiting the location of colonial electric infrastructure and the need for an interconnected grid in the island of Java. I find that electrification causes industrial development by increasing the number of manufacturing firms, manufacturing workers, and manufacturing output. Electrification increases firm entry rates, but also exit rates. Higher turnover rates lead to higher average productivity and induce reallocation towards more productive firms. This is consistent with electrification lowering entry costs, increasing competition and forcing unproductive firms to exit more often.
    JEL: D24 O13 O14 O18 Q41 R11 R12
    Date: 2020–01
  64. By: Bergantiños, Gustavo; Navarro-Ramos, Adriana
    Abstract: This paper considers agglomeration economies. A new firm is planning to open a plant in a country divided into several regions. Each firm receives a positive externality if the new plant is located in its region. In a decentralized mechanism, the plant would be opened in the region where the new firm maximizes its individual benefit. Due to the externalities, it could be the case that the aggregated utility of all firms is maximized in a different region. Thus, the firms in the optimal region could transfer something to the new firm in order to incentivize it to open the plant in that region. We propose two rules that provide two different schemes for transfers between firms already located in the country and the newcomer. The first is based on cooperative game theory. This rule coincides with the nucleolus and the t-value of the associated cooperative game. The second is defined directly. We provide axiomatic characterizations for both rules. We characterize the core of the cooperative game. We prove that both rules belong to the core.
    Keywords: game theory, core, axiomatic characterization, agglomeration economies.
    JEL: C71
    Date: 2020–01–13
  65. By: Calin E. HINTEA (Department of Public Administration and Management, Babes Bolyai University, Romania); Bogdana NEAMTU (Department of Public Administration and Management, Babes Bolyai University, Romania); Viorel STANICA (Department of Public Administration and Management, Babes Bolyai University, Romania)
    Abstract: The chapter addresses the issues of collaborative governance in the context of the metropolitan areas from Romania. As secondary cities are becoming the engines of the national economy, there is a growing interest in how these cities can function better, develop even further, and moreover, determine spillover effects in terms of economic growth, better service delivery, and increased quality of life into the surrounding rural communities. The central government has mandated a type of “mandatory” cooperation in the framework of metropolitan areas attached to the growth poles, as a precondition for receiving European money. However, the communities that are part of these areas are currently searching for ways to move away from this top-down induced cooperation towards more bottom-up collaborative partnerships. Based on the literature review, we developed an analytical model for understanding how one specific metropolitan area, namely the Cluj-Napoca one, functions. The empirical research includes interviews with the mayors of all local communities from the metropolitan area. The results are rather interesting – legal and policy context are currently not very conducing for bottom-up cooperation and some of the drivers which foster cooperation, especially leadership, are emerging but not fully developed yet.
    Keywords: collaborative governance, intercommunalities, metropolitan areas, strategic planning, trust.
    JEL: H83
    Date: 2019–06

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