nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2020‒11‒02
fifty papers chosen by
Steve Ross
University of Connecticut

  1. Should I stay or should I go? Housing and residential mobility across OECD countries? By Orsetta Causa; Jacob Pichelmann
  2. Congestion in highways when tolls and railroads matter: Evidence from European cities By Miquel-Àngel Garcia-López; Ilias Pasidis; Elisabet Viladecans-Marsal
  3. INDUSTRIAL CLUSTERS, NETWORKS AND RESILIENCE TO THE COVID-19 SHOCK IN CHINA By Ruochen Dai; Dilip Mookherjee; Yingyue Quan; Xiaobo Zhang
  4. “Regional borders, local unemployment and happiness” By Antonio Di Paolo; Ada Ferrer-i-Carbonell
  5. Identification of Wealthy Households from the Residential Property Price Index Database for Sample Selection for Household Surveys By Evren Ceritoglu; Ozlem Sevinc
  6. Off the Grid... and Back Again? The Recent Evolution of American Street Network Planning and Design By Boeing, Geoff
  7. Birth cohort size variation and the estimation of class size effects By Bach, Maximilian; Sievert, Stephan
  8. The Role of Social Networks in Bank Lending By Oliver Rehbein; Simon Rother
  9. Biased Teachers and Gender Gap in Learning Outcomes: Evidence from India By Rakshit, Sonali; Sahoo, Soham
  10. Understanding Teacher Turnover: Insights from the School District of Philadelphia (Infographic) By Regional Educational Laboratory Mid‑Atlantic
  11. Assessing the Impact of Social Network Structure on the Diffusion of Coronavirus Disease (COVID-19): A Generalized Spatial SEIRD Model By Giorgio Fagiolo
  12. School Selectivity, Peers, and Mental Health By Bütikofer, Aline; Ginja, Rita; Landaud, Fanny; Loken, Katrine Vellesen
  13. Policies to support teachers’ continuing professional learning: A conceptual framework and mapping of OECD data By Luka Boeskens; Deborah Nusche; Makito Yurita
  14. Teachers’ training and use of information and communications technology in the face of the COVID-19 crisis By OECD
  15. Risky Mortgages and Bank Runs By Nurlan Turdaliev; Yahong Zhang
  16. The social profitability of rural roads in a small open economy: Do urban agglomeration economies matter? By Clive Bell
  17. Are Consumers Abandoning Diesel Automobiles because of Contrasting Diesel Policies? Evidence from the Korean Automobile Market By Yoo, Sunbin; Koh, Kyung Woong; Yoshida, Yoshikuni
  18. Planes, Trains, and Automobiles: What Drives Human-Made Light? By Dickinson, Jeffrey
  19. The misallocation in the Chinese land market By Fei, Xuan
  20. Do more tourists promote local employment? By Libertad González Luna; Tetyana Surovtseva
  21. The Roles of Faith and Faith Schooling in Educational, Economic, and Faith Outcomes By Andrew McKendrick; Ian Walker
  22. Do citizens of a city that owns a local public airport have attachment to the airport and use it? By Morimoto, Yu
  23. China’s Housing Booms: A Challenge to Bubble Theory By Natacha Aveline-Dubach
  24. Cultural Identity and Social Capital in Italy By Sgroi, Daniel; Redoano, Michela; Liberini, Federica; Lockwood, Ben; Bracco, Emanuele; Porcelli, Francesco
  26. Inquiry into integrated housing support for vulnerable families By Huang, Donna; valentine, kylie; Cripps, Kyllie; Flanagan, Kathleen; Habibis, Daphne; Martin, Chris; Blunden, Hazel
  27. The Effect of the Community Eligibility Provision on the Ability of Free and Reduced-Price Meal Data to Identify Disadvantaged Students By Cory Koedel; Eric Parsons
  28. Harnessing Ambient Sensing & Naturalistic Driving Systems to Understand Links Between Driving Volatility and Crash Propensity in School Zones: A generalized hierarchical mixed logit framework By Behram Wali; Asad Khattak
  29. Did the Bologna Process Challenge the German Apprenticeship System? Evidence from a Natural Experiment By Thomsen, Stephan L.; Trunzer, Johannes
  30. Age, Desires and the Implicit Role of Out-Selection Factors of International Migration By Michel Beine
  31. What matters for language learning?: The questionnaire framework for the PISA 2025 Foreign Language Assessment By Gabriele Marconi; Carla Campos Cascales; Catalina Covacevich; Tue Halgreen
  32. Skilled migration: Bridging the conceptual gap between friendship, social capital, and employability By Potts, Danielle; Martensen, Malte
  33. High School Course Access and Postsecondary STEM Enrollment and Attainment By Rajeev Darolia; Cory Koedel; Joyce B. Main; Felix Ndashimye; Junpeng Yan
  34. Why Do Some Transit Agencies Form Shared-Use Mobility Partnerships while Others Do Not? By Pike, Susan PhD; Kazemian, Sara
  35. To segregate, or to discriminate – that is the question: experiment on identity and social preferences By Blanco, M; Guerra, J. A.
  36. Reaching the consumer: importance of travel costs in home care provision. By AQuitterie Roquebert
  37. Return Migration and Earnings Mobility in Egypt, Jordan and Tunisia By Vladimir Hlasny; Shireen AlAzzawi
  38. Quantifying Domestic Violence in Times of Crisis By Dan Anderberg; Helmut Rainer; Fabian Siuda
  39. Free Movement of Workers and Native Demand for Tertiary Education By Bächli, Mirjam; Teodora Tsankova
  40. School Schedule and the Gender Pay Gap By Duchini, Emma; Van Effenterre, Clémentine
  41. Mortgage Market Regulation and Access to Mortgage Credit: a speech at "Opportunities and Challenges for Homeownership," a Virtual Roundtable Discussion, Jake Jabs College of Business and Entrepreneurship, Montana State University, Bozeman, Montana (via webcast), October 1, 2020 By Michelle W. Bowman
  42. Climate Risk and Preferences over the Size of Government: Evidence from California Wildfires By Michael Coury
  43. Importing inequality : Immigration and the Top 1 percent By Advani, Arun; Koenig, Felix; Pessina, Lorenzo; Summers, Andy
  44. The medium-term impact of non-pharmaceutical interventions. The case of the 1918 influenza in US cities By Guillaume Chapelle
  45. Police Performance Rankings Depend on the Functional Form of the Index: A Comment on Bearfield, Maranto and Wolf By Reed, David S.
  46. Data Sources on Migrants' Labour Market and Education Integration in Austria By Peter Huber; Marian Fink; Thomas Horvath
  47. How do citizens perceive centralization reforms? Evidence from the merger of French regions By L. WILNER
  48. Do Investment Incentives Promote Regional Growth and Income Convergence in Turkey? By Hulya Saygili
  49. The Indirect Fiscal Benefits of Low-Skilled Immigration By Mark Colas; Dominik Sachs
  50. Emerging Cities as Independent Engines of Growth: The Case of Buenos Aires By Ricardo Hausmann; Douglas Barrios; Daniela Muhaj; Sehar Noor; Carolina Ines Pan; Miguel Angel Santos; Jorge Tapia; Bruno Zuccolo

  1. By: Orsetta Causa; Jacob Pichelmann
    Abstract: This paper delivers new evidence on the individual and policy drivers of residential mobility, covering a wide range of housing-related policies and conditions but also other relevant policy areas. The analysis uses household-level micro datasets allowing for an investigation of the drivers of the decision to move for a large number of OECD countries; as well for identifying differential policy effects across socio-economic groups, underscoring the distributional effect of policies. The evidence strongly supports the view that housing conditions and structural policies influence people’s decisions and possibilities to move. A more responsive housing supply is associated with higher residential mobility, suggesting that reforming land-use and planning policies may facilitate moving by reducing house price differences across locations. Social cash and in-kind spending on housing are positively correlated with residential mobility. Higher housing transaction costs, including from transfer taxes, are associated with lower residential mobility, especially among younger households, which are more likely to be first time-buyers. Stricter rental regulations are associated with lower residential mobility, particularly for renters, low-educated and low-income households. Beyond housing policies, more generous cash income support to low-wage jobseekers and minimum income schemes embedded in social transfers are positively associated with residential mobility; while excessive job protection on regular contracts is negatively associated with mobility, particularly for youth, low-income and low-educated individuals.
    Keywords: housing allowances, housing markets, housing taxation, inequality, job protection, rental market regulations, residential mobility, social housing, social protection, transaction costs
    JEL: R21 R31 R23 R38 H20
    Date: 2020–10–21
  2. By: Miquel-Àngel Garcia-López (Department of Applied Economics, Universidad Autónoma de Barcelona, 08193, Bellaterra, Spain); Ilias Pasidis (Barcelona Institute of Economics (IEB), Universidad de Barcelona 08034, Barcelona, Spain); Elisabet Viladecans-Marsal (Department of Economics, Universidad de Barcelona 08034, Barcelona, Spain)
    Abstract: Using data from the 545 largest European cities, we study whether the expansion of their highway capacity provides a solution to the problem of traffic congestion. Our results confirm that in the long run, and in line with the ’fundamental law of highway congestion’, the expansion in cities of lane kilometers causes an increase in vehicle traffic that does not solve urban congestion. We disentangle the increase in traffic due to the increases in coverage and in capacity. We further introduce road pricing and public transit policies in order to test whether they moderate congestion. Our findings confirm that the induced demand is considerably smaller in cities with road pricing schemes, and that congestion decreases with the expansion of public transportation.
    Keywords: congestion, highways, Europe, cities
    JEL: R41 R48
    Date: 2020–10
  3. By: Ruochen Dai (Central University of Finance and Economics); Dilip Mookherjee (Boston University); Yingyue Quan (Peking University); Xiaobo Zhang (Peking University and IFPRI)
    Abstract: We examine how exposure of Chinese firms to the Covid-19 shock varied with a cluster index (measuring spatial agglomeration of firms in related industries) at the county level. Two data sources are used: entry flows of newly registered firms in the entire country, and an entrepreneur survey regarding operation of existing firms. Both show greater resilience in counties with a higher cluster index, after controlling for industry dummies and local infection rates, besides county and time dummies in the entry data. Reliance of clusters on informal entrepreneur hometown networks and closer proximity to suppliers and customers help explain these findings.
    Keywords: Clusters, Covid-19, China, Firms, Social Networks
    JEL: J12 J16 D31 I3
    Date: 2020–10
  4. By: Antonio Di Paolo (AQR-IREA, University of Barcelona); Ada Ferrer-i-Carbonell (Barcelona GSE, IZA, and MOVE)
    Abstract: In this paper we provide novel evidence on the effect of local unemployment rate on life satisfaction. We investigate how changes in unemployment rate in local administrative areas affect subjective well-being in Germany, allowing for the presence of spatial spillovers and considering the role played by regional borders. The results indicate that higher unemployment in the own local area of residence has a negative effect on satisfaction. Similarly, individuals’ happiness negatively correlates with the unemployment rate in contiguous local areas, but only if these areas are located in the same Federal State as the one where the individual lives. These results are robust to a variety of specifications, definitions, sample restrictions and estimation methods. Heterogeneity analysis reveals that these negative effects of local unemployment rate are larger for individuals with stronger ties to the job market and less secure jobs. This points to worries about own job situation as the main driver of individuals’ dislike for living in areas with high unemployment rate and tight labour markets. Consistently with this, the same asymmetric effect of local unemployment rate of surrounding areas is replicated when life satisfaction is replaced with a proxy for perceived job security as outcome variable.
    Keywords: Life satisfaction, Local unemployment, Spatial spillovers, Neighbouring areas, Regional borders. JEL classification: I31, J64, J28, R23.
    Date: 2020–10
  5. By: Evren Ceritoglu; Ozlem Sevinc
    Abstract: This paper aims to identify wealthy households in Turkey for sample selection for household surveys. In the absence of income and wealth tax data, we analyze house prices from the Residential Property Price Index (RPPI), which is constructed by the Central Bank of the Republic of Turkey (CBRT) from dwelling appraisal reports to monitor price movements. RPPI is announced monthly by the CBRT for Turkey and 26 geographical regions at NUTS2 level since 2012, but data actually starts from January 2010. The RPPI database comprises more appraisal observations from Istanbul and western provinces, where house prices are significantly higher than country average. However, the number of appraisal observations is low for the Eastern provinces, since the number of house sales is limited in poor and small provinces. Moreover, the percentage of mortgaged house sales is even lower in these regions, whereas the RPPI database is based on dwelling appraisal reports on house sales, which are subject to mortgage loans.
    Keywords: Unit house prices, Wealthy households, Panel data, Sampling design, Oversampling
    JEL: C33 C83 R21 R31 R32
    Date: 2020
  6. By: Boeing, Geoff (Northeastern University)
    Abstract: This morphological study identifies and measures recent nationwide trends in American street network design. Historically, orthogonal street grids provided the interconnectivity and density that researchers identify as important factors for reducing vehicular travel and emissions and increasing road safety and physical activity. During the 20th century, griddedness declined in planning practice alongside declines in urban form compactness, density, and connectivity as urbanization sprawled around automobile dependence. But less is known about comprehensive empirical trends across US neighborhoods, especially in recent years. This study uses public and open data to examine tract-level street networks across the entire US. It develops theoretical and measurement frameworks for a quality of street networks defined here as griddedness. It measures how griddedness, orientation order, straightness, 4-way intersections, and intersection density declined from 1940 through the 1990s while dead-ends and block lengths increased. However, since 2000, these trends have rebounded, shifting back toward historical design patterns. Yet, despite this rebound, when controlling for topography and built environment factors all decades post-1939 are associated with lower griddedness than pre-1940. Higher griddedness is associated with less car ownership—which itself has a well-established relationship with vehicle kilometers traveled and greenhouse gas emissions—while controlling for density, home and household size, income, jobs proximity, street network grain, and local topography. Interconnected grid-like street networks offer practitioners an important tool for curbing car dependence and emissions. Once established, street patterns determine urban spatial structure for centuries, so proactive planning is essential.
    Date: 2020–10–09
  7. By: Bach, Maximilian; Sievert, Stephan
    Abstract: We show that in school systems with grade retention or redshirting, birth cohort size is negatively related to the grade-level share of students who are too old for their grade. This compositional effect gives rise to an upward bias in estimates of class size effects based on commonly used research designs exploiting within-school variation in birth cohort size. Using data for all primary schools in one federal state of Germany, we find support for this compositional effect. Correcting for the resulting bias, we find that not only are smaller classes beneficial for test scores, but also for reducing grade repetitions.
    Keywords: Class size effects,Quasi-experimental evidence,Student achievement,Primary school
    JEL: I20 I21 I29
    Date: 2020
  8. By: Oliver Rehbein (University of Bonn, Institute for Finance & Statistics); Simon Rother (University of Bonn, Institute for Finance & Statistics)
    Abstract: This paper analyzes social connectedness as an information channel in bank lending. We move beyond the inefficient lending between peers in exclusive networks by exploiting Facebook data that reflect social ties within the U.S. population. After accounting for physical and cultural distances, social connectedness increases cross-county lending, especially when lending requires more information and screening incentives are intact. On average, a standard-deviation increase in social connectedness increases cross-county lending by 24.5%, which offsets the lending barrier posed by 600 miles between borrower and lender. While the ex-ante risk of a loan is unrelated to social connectedness, borrowers from well-connected counties cause smaller losses if they default. Borrowers' counties tend to profit from their social proximity to bank lending, as GDP growth and employment increase with social proximity. Our results reveal the important role of social connectedness in bank lending, partly explain the large effects of physical distance, and suggest implications for antitrust policies.
    Keywords: bank lending, social networks, information frictions, distance, culture
    JEL: D82 D83 G21 O16 L14 Z13
    Date: 2020–10
  9. By: Rakshit, Sonali; Sahoo, Soham
    Abstract: This paper investigates the effect of stereotypical beliefs of teachers on learning outcomes of secondary school students in India. We measure teacher's bias through an index capturing teacher's subjective beliefs about the role of gender and other characteristics in academic performance. We tackle the potential endogeneity of teacher's subjective beliefs by controlling for teacher fixed effects in a value-added model that includes lagged test score of students. We find that a standard deviation increase in biased attitude of the math teacher widens the female disadvantage in math performance by 0.07 standard deviation over an academic year. This negative effect of biased teachers is significant only for male teachers. The effect is especially strong among the medium-performing students and in classes where the majority of students are boys. Moreover, among the medium-performing students, having a female teacher significantly reduces the gender gap in math performance. As a plausible mechanism, we show that biased teachers negatively affect girls' attitude towards math as compared to boys. Unlike math outcome, we do not find any significant effect when we analyze the effect of biased English teachers on English scores of the same students.
    Keywords: Learning outcomes,Value-added model,Gender,Teachers,Stereotypes,India
    JEL: I24 J16 J24
    Date: 2020
  10. By: Regional Educational Laboratory Mid‑Atlantic
    Abstract: Teacher turnover is a widespread issue. High turnover rates may be costly to the district, disrupt operations, and lower student achievement.
    Keywords: rel, ma, mid-atlantic, infographic, understanding, teacher turnover, insights, school district, philadelphia;
  11. By: Giorgio Fagiolo
    Abstract: In this paper, I study epidemic diffusion in a generalized spatial SEIRD model, where individuals are initially connected in a social or geographical network. As the virus spreads in the network, the structure of interactions between people may endogenously change over time, due to quarantining measures and/or spatial-distancing policies. I explore via simulations the dynamic properties of the co-evolutionary process dynamically linking disease diffusion and network properties. Results suggest that, in order to predict how epidemic phenomena evolve in networked populations, it is not enough to focus on the properties of initial interaction structures. Indeed, the co-evolution of network structures and compartment shares strongly shape the process of epidemic diffusion, especially in terms of its speed. Furthermore, I show that the timing and features of spatial-distancing policies may dramatically influence their effectiveness.
    Keywords: Corona Virus Disease; COVID-19; Diffusion Models on Networks; Spatial SEIRD Models.
    Date: 2020–10–22
  12. By: Bütikofer, Aline (Norwegian School of Economics); Ginja, Rita (University of Bergen); Landaud, Fanny (Norwegian School of Economics); Loken, Katrine Vellesen (Norwegian School of Economics)
    Abstract: Although many students suffer from anxiety and depression, and students often identify school pressure and concerns about their futures as the main reasons for their worries, little is known about the consequences of a selective school environment on students' physical and mental health. In this paper, we draw on rich administrative data and the features of the high school assignment system in the largest Norwegian cities to consider the long-term consequences of enrollment in a more selective high school. Using a regression discontinuity analysis, we show that eligibility to enroll in a more selective high school increases the probability of enrollment in higher education and decreases the probability of diagnosis or treatment by a general medical practitioner for psychological symptoms and diseases. We further document that enrolling in a more selective high school has a greater positive impact when there are larger changes in the student–teacher ratio, teachers' age, and the proportion of female teachers. These findings suggest that changes in teacher characteristics are important for better understanding the effects of a more selective school environment.
    Keywords: selective high schools, higher education, health, mental health, peers
    JEL: I26 I12
    Date: 2020–10
  13. By: Luka Boeskens; Deborah Nusche; Makito Yurita
    Abstract: While teachers’ initial education is key to ensuring that new teachers are prepared for their work, it is only one piece in the continuum of teachers’ professional growth. Continuing professional learning is vital for teachers to broaden and deepen their knowledge, keep up with new research, tools and practices and respond to their students’ changing needs. It also plays a key role in building collaborative school cultures and supporting the collective improvement of the teaching profession. While the importance of continuing teacher learning is widely recognised, building efficient, equitable and sustainable professional learning systems is far from trivial. The OECD Teachers’ Professional Learning (TPL) study seeks to support the development of effective TPL policies and practices in schools and school systems. This paper proposes a theoretical and analytical framework for the study, systematically maps available OECD indicators to this framework and identifies information gaps and areas for future comparative work.
    Date: 2020–10–22
  14. By: OECD
    Abstract: The COVID-19 outbreak has caused one of the greatest disruptions to education witnessed in recent years. In an attempt to prevent the circulation of the virus and to ensure the right to education, many governments quickly transitioned from traditional face-to-face instruction to some form of distance learning. To ensure learning continuity during the school closures, many teachers around the globe were tasked with moving their lessons on line.There is some evidence that education systems are moving to a “new normal” where traditional face-to-face instruction will be complemented by some form of distance learning. Even though data collection was conducted before the COVID-19 outbreak, the OECD’s Teaching and Learning International Survey (TALIS 2018) offers some useful information to illuminate why some teachers are more likely to let students use ICT for projects or class work than others, and to explore the factors behind whether teachers take up professional development activities that include ICT skills for teaching.
    Keywords: COVID-19, ICT, teachers, teaching, training
    Date: 2020–10–28
  15. By: Nurlan Turdaliev (Department of Economics, University of Windsor); Yahong Zhang (Department of Economics, University of Windsor)
    Abstract: The collapse of housing prices in the aftermath of the U.S. subprime mortgage crisis of 2008 not only worsened the balance sheet positions of the banking sector but also led to a “bank run” in some cases such as the collapse of Lehman Brothers in September 2008. We develop a theoretical model featuring household debt (mortgages) and banking sector frictions. We show that mortgage risks can potentially lead to a bank run equilibrium. Such an equilibrium exists since mortgage risks reduce the liquidation prices of bank assets. We further show that mortgage market regulations such as loan-to-value requirements reduce the likelihood of bank runs.
    Keywords: bank run, mortgage risk, loan-to-value ratio
    JEL: E32 E44 G01 G21 G33
    Date: 2020–10
  16. By: Clive Bell
    Abstract: In the presence of agglomeration economies, the effects of a rural roads programme depend not only on the reduction in transportation costs, but also on the form of labour mobility. When financed by a poll tax on rural households, the wage will rise, accompanied by some return migration, provided both cross-price effects in production and consumption and agglomeration economies are sufficiently small. With empirically plausible elasticities of agglomeration economies, urban households may be worse off.
    Keywords: Rural roads, Profitability, Transportation, Agglomeration
    Date: 2020
  17. By: Yoo, Sunbin; Koh, Kyung Woong; Yoshida, Yoshikuni
    Abstract: We investigate whether the contrasting set of transportation policies in Korea---reductions in fuel taxes and increases in diesel automobile prices---has decreased emissions. Using a random-coefficient discrete choice model and hypothetical policy sets, we estimate the automobile demand of consumers, the market share of cars by fuel type, and total emissions, assuming that consumer preferences for driving costs change over time. Then, we separately analyze the effect of each policy set on automobile sales and emissions, particularly carbon dioxide, nitrogen oxide, and particulate matter. Our analyses reveal that Korean consumers have become more sensitive toward fuel costs over time and that the emission consequences of Korean policies depend on consumer preferences.
    Keywords: Discrete Choice, Demand Estimation, Emissions, Transportation, Fuel Cost
    JEL: D1 D12 R4 R41
    Date: 2020–10
  18. By: Dickinson, Jeffrey
    Abstract: This paper expands on our understanding of the lights-income relationship by linking the newest generation of nighttime satellite images derived from the Visible Infrared Imaging Radiometry Suite, VIIRS, to nationwide, panel data on population and income from 2012-2018 for both Brazil and the United States including 3,104 US counties, and 5,570 munic\'ipios. I leverage the quality and frequency of those data sources and the VIIRS lights images to decompose the links between population changes, GDP changes, and nighttime lights changes at the county and munic\'ipio level. I find decreasing marginal effects of GDP on nighttime light as well as decreasing marginal effects of population on nighttime light, a result which holds across many specifications and that is robust to sub-sample analysis and placebo tests. Interactions among controls also appear to be present. Using sub-sample analysis, I also find that nighttime light does a poor job of capturing less-wealthy areas. Finally, I use a between-county estimator to identify the effects of time-invariant infrastructure features on night-time light. Roads, rail, ports, airports, and border crossings I find to be strong contributors to increases in light.
    Keywords: night-time light, GDP, population, infrastructure, regional development
    JEL: C82 O51 R10 R11 R12
    Date: 2020
  19. By: Fei, Xuan
    Abstract: This paper proposes a spatial equilibrium model to quantify welfare losses from land market distortions in China. In the model, heterogeneous firms in a variety of sectors choose their locations across regions with costly trade, frictional labor migration, and land market distortions. We match land transaction and firm-level survey data to estimate land market distortions for firms. Misallocation arises when similar firms are faced with land prices that effectively prevent productive firms from establishing in large cities where they can benefit from agglomeration forces and access to higher productivity. Our framework incorporating land market distortions also helps clarify the mystery of China’s undersized cities, a phenomenon noted by Au and Henderson (2006) and Chauvin et al. (2017). Our estimates suggest large negative effects of land policies on the economic welfare in China. We end with a counterfactual exercise that suggests that a coordinated land and labor migration reform would generate welfare gains and reduce regional inequality.
    JEL: F16 L22 L51 O47 R14 R30
    Date: 2020–10–21
  20. By: Libertad González Luna; Tetyana Surovtseva
    Abstract: We analyze the short-term impact of tourist flows on local labour markets. We propose a novel identification strategy that uses shocks to competing international tourist destinations to instrument for tourist inflows across Spanish regions. We show that negative shocks in alternative international destinations have a strong positive effect on tourism flows to Spain. We follow an instrumental variables strategy and find that an exogenous increase in tourist inflows leads to more employment in the tourism industry for prime-age workers in the short term but does not increase total employment in local economies. Total employment actually falls for very young and older workers, as well as for prime-age women. The increase in employment in tourism is compensated by a fall in (low-skilled) employment in other sectors, especially construction and manufacturing.
    Keywords: employment, tourism, local labour markets, shift-share, terrorism, Spain
    JEL: J21
    Date: 2020–10
  21. By: Andrew McKendrick; Ian Walker
    Abstract: We examine the effects of intrinsic religiosity and faith-based schooling on short and longer-term outcomes among young people in England. Without an obvious quasi-experimental identification strategy we rely on a detailed dataset, a cohort study from England with an extensive range of household and school-level characteristics, to use Ordinary Least Squares (OLS), augmented by the Oster (2019) test. Inverse Probability Weighting and mediation analysis are also employed. We show that an individual’s intrinsic religiosity is an important driver of short-term educational outcomes (age 16 test scores) and some longer-term outcomes (later Christian belief), while faith-based schooling plays a lesser role.
    Keywords: Religiosity, faith schools, educational and long-term outcomes, faith persistence
    JEL: I21 Z12
    Date: 2020
  22. By: Morimoto, Yu
    Abstract: In this research, it is investigated whether passengers living in a city with a local public airport have attachment to the airport and tend to use it. Focusing on the Greater Kansai area with three airports and Kobe City that owns Kobe Airport as an example, an empirical analysis is conducted by Nested logit model using micro data. The result of the basic model shows that passengers living in Kobe city prefer Kobe Airport compared to other passengers. Additional analysis based on a questionnaire survey revealed that passengers who are attached to Kobe Airport choose it because they love it, which means that the non-economic factor of attachment influences passengers’ decisions. The results of this research suggest that enhancing attachment to the airport might be a possible idea for policy makers of airport cities to increase passengers of it.
    Keywords: Airport choice, Multiple airport region, Airport city, Attachment, Nested logit model
    JEL: L93
    Date: 2020–09–12
  23. By: Natacha Aveline-Dubach (GC (UMR_8504) - Géographie-cités - UP1 - Université Panthéon-Sorbonne - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - UP - Université de Paris)
    Abstract: Over the past two decades, Chinese cities have experienced real estate booms displaying clear signs of "bubble" elements, including, inter allia, prohibitive residential prices, an accumulation of debt, and severe overbuilding. In 2014, many media commentators claimed that Chinese property markets were about to burst. Yet house prices have started to rise again in major cities, and no significant slowdown has been recorded to date. This chapter addresses the challenges posed by China's residential market dynamics to the bubble theory. Adopting a political economy perspective that breaks with the approaches of real estate economics, it highlights the self-fulfilling logic of the housing booms, resulting from pervasive practices of land value capture by local governments. The paper stresses the inadequacy of the bubble framework to distinguish speculative and "fundamental" explanatory factors of price increases, and provides an alternative reading based on André Orléan's theory of conventions. It is argued that the asymmetric nature of the State's regulation of housing markets-a failure to rein in housing price hikes, yet efficiency in managing downturns-has played a crucial role in shaping the common representation of the market by investors. Beyond the challenge to bubble theory, China's experience of housing booms opens the way for the recognition of alternative paths to finance-led regimes of capital accumulation in the built environment.
    Abstract: Au cours des deux dernières décennies, les villes chinoises ont connu un boom immobilier qui a montré des signes évidents d'éléments de "bulle", y compris, entre autres, des prix résidentiels prohibitifs, un gonflement de la dette privée et une importante surproduction. En 2014, de nombreux commentateurs des médias ont affirmé qu'une bulle allait exploser sur les marchés immobiliers chinois Pourtant, les prix de l'immobilier ont recommencé à augmenter dans les grandes villes, et aucun ralentissement significatif n'a été enregistré à ce jour. Ce chapitre aborde les défis posés à la théorie de la bulle par les dynamiques des marchés résidentiels chinois. Adoptant une perspective d'économie politique qui rompt avec les approches de l'économie immobilière, il met en évidence la logique auto-réalisatrice des booms immobiliers, résultant de pratiques de captation de la rente foncière par les gouvernements locaux. L'article souligne l'inadéquation du cadre analytique de la bulles spéculative pour distinguer les facteurs spéculatifs et les facteurs explicatifs "fondamentaux" des hausses de prix, et propose une lecture alternative basée sur la théorie des conventions d'André Orléan. L'auteur soutient que la nature asymétrique de la réglementation des marchés du logement par l'État - une incapacité à contenir les hausses de prix des logements, mais une gestion efficace de prévention de la baisse des prix- a joué un rôle crucial dans la construction d'une représentation partagée du marché par les investisseurs. Au-delà de la remise en cause de la théorie des bulles, l'expérience de la Chine en matière de boom immobilier ouvre la voie à la reconnaissance de voies alternatives aux régimes d'accumulation de capital financier dans l'environnement bâti.
    Date: 2020–01–03
  24. By: Sgroi, Daniel (University of Warwick); Redoano, Michela (University of Warwick); Liberini, Federica (ETH Zurich); Lockwood, Ben (University of Warwick); Bracco, Emanuele (Lancaster University); Porcelli, Francesco (University of Warwick)
    Abstract: In a pre-registered experiment involving 1,547 subjects across three Italian cities we exploit regional variation in background, language and diet to investigate the relationship between cultural identity, trust and cooperation. Subjects with relatives (especially maternal grandmothers) who originate in the north of Italy, and who share common cultural characteristics, contributed 15% more in a public goods game, displayed greater "social capital" such as trust in the government and more willingness to pay taxes, than did those whose language and diet identified them as being from the south. On the other hand, self-reported identity, a mainstay of the survey literature, had no predictive power. This highlights the importance of identity but only when it is measured appropriately.
    Keywords: social capital, trust, identity, language, experiments
    JEL: Z13 D91 C83 C93
    Date: 2020–10
  25. By: Diana Elena Toma (Nastasia) (Valahia University of Târgovi?te)
    Abstract: One of the main features of an entrepreneur may be his ability to understand the economic environment as a whole, in terms of challenges, risks and opportunities that may arise in the future. The entrepreneur has an essential role in identifying innovative solutions, being in the position of accessing the opportunities offered by the economic environment, in its dynamics. Recently, progress has been made in studying and understanding the relationship between entrepreneurship and economic growth. However, a comprehensive understanding of the link between creativity, entrepreneurship and economic development is not enough covered the given the extent of knowledge needs in the field.Therefore, the paper treats entrepreneurship as an essential way for ensuring sustainable economic growth. Also, it pursuits to understand the basics of knowledge creation, the appropriate means of disseminating and communicating innovation and the role of the entrepreneur in this process. The paper is of current interest, given the high interest in entrepreneurship, an approach that can ensure the reduction of economic and social disparities, contributing to long-term economic development.
    Keywords: Entrepreneurship, innovation, management, economy, accounting information, SMEs
    JEL: L26 O31 M21
  26. By: Huang, Donna; valentine, kylie; Cripps, Kyllie; Flanagan, Kathleen; Habibis, Daphne; Martin, Chris; Blunden, Hazel
    Abstract: This Inquiry investigated how housing support for vulnerable families experiencing Domestic and family violence (DFV) can be best integrated with other types of support to enhance safety and wellbeing, including for women in different housing tenures, for Indigenous women and the integration of social housing policy with policies to support women affected by DFV.
    Date: 2020–10–06
  27. By: Cory Koedel (Department of Economics and Truman School of Public Affairs at the University of Missouri, Columbia); Eric Parsons (Department of Economics at the University of Missouri, Columbia)
    Abstract: The Community Eligibility Provision (CEP) is a policy change to the federally-administered National School Lunch Program that allows schools serving low-income populations to classify all students as eligible for free meals, regardless of individual circumstances. This has implications for the use of free and reduced-price meal (FRM) data to proxy for student disadvantage in education research and policy applications, which is a common practice. We document empirically how the CEP has affected the value of FRM eligibility as a proxy for student disadvantage. At the individual student level, we show that there is essentially no effect of the CEP. However, the CEP does meaningfully change the information conveyed by the share of FRM-eligible students in a school. It is this latter measure that is most relevant for policy uses of FRM data.
    Keywords: community eligibility provision; free and reduced-price lunch; student poverty; measuring student poverty
    JEL: I2 I3
    Date: 2020–07
  28. By: Behram Wali; Asad Khattak
    Abstract: With the advent of seemingly unstructured big data, and through seamless integration of computation and physical components, cyber-physical systems (CPS) provide an innovative way to enhance safety and resiliency of transport infrastructure. This study focuses on real world microscopic driving behavior and its relevance to school zone safety expanding the capability, usability, and safety of dynamic physical systems through data analytics. Driving behavior and school zone safety is a public health concern. The sequence of instantaneous driving decisions and its variations prior to involvement in safety critical events, defined as driving volatility, can be a leading indicator of safety. By harnessing unique naturalistic data on more than 41,000 normal, crash, and near-crash events featuring over 9.4 million temporal samples of real-world driving, a characterization of volatility in microscopic driving decisions is sought at school and non-school zone locations. A big data analytic methodology is proposed for quantifying driving volatility in microscopic real-world driving decisions. Eight different volatility measures are then linked with detailed event specific characteristics, health history, driving history, experience, and other factors to examine crash propensity at school zones. A comprehensive yet fully flexible state-of-the-art generalized mixed logit framework is employed to fully account for distinct yet related methodological issues of scale and random heterogeneity, containing multinomial logit, random parameter logit, scaled logit, hierarchical scaled logit, and hierarchical generalized mixed logit as special cases. The results reveal that both for school and non-school locations, drivers exhibited greater intentional volatility prior to safety-critical events... ...
    Date: 2020–10
  29. By: Thomsen, Stephan L. (Leibniz University of Hannover); Trunzer, Johannes (Leibniz University of Hannover)
    Abstract: Starting in 1999, the Bologna Process reformed the German five-year study system for a first degree into the three-year bachelor's (BA) system to harmonize study lengths in Europe and improve competitiveness. This reform unintentionally challenged the German apprenticeship system that offers three-year professional training for the majority of school leavers. Approximately 29% of new apprentices are university-eligible graduates from academic-track schools. We evaluate the effects of the Bologna reform on new highly educated apprentices using a generalized difference-in-differences design based on detailed administrative student and labor market data. Our estimates show that the average regional expansion in first-year BA students decreased the number of new highly educated apprentices by 3%–5%; average treatment effects on those indecisive at school graduation range between –18% and –29%. We reveal substantial gender and occupational heterogeneity: males in STEM apprenticeships experienced the strongest negative effects. The reform aggravated the skills shortage in the economy.
    Keywords: Bologna Process, post-secondary education decisions, apprenticeships, higher education
    JEL: I23 I28 J24
    Date: 2020–10
  30. By: Michel Beine (Department of Economics and Management, Université du Luxembourg)
    Abstract: In this note, I attempt to isolate the role of age as a self-selection factor of international migration. I estimate the role of age on intended emigration rather than on observed outcome of migration. I use individual measures of intended emigration drawn from a large-scale survey conducted by Gallup. I find evidence of a monotonic negative effect on desired emigration for the working-age population. The estimations point to a very robust effect suggesting that an additional year of age decreases the probability of intended emigration by about 0.5%. This effect is robust over different periods of time and for most types of countries of origin. The results contrast with previous evidence obtained on observed outcomes of migration, suggesting that out-selection factors interact with age and shape the demographic profile of migrants.
    Keywords: Age, International Migration, Intended Emigration, Logit, Large-scale Survey
    JEL: F22 C25 J61
    Date: 2020
  31. By: Gabriele Marconi; Carla Campos Cascales; Catalina Covacevich; Tue Halgreen
    Abstract: For the first time, PISA 2025 will assess foreign language skills on a global scale. This paper provides a framework for collecting policy and contextual information on foreign language learning from students, parents, teachers, school principals and government officials. The framework will be used to guide the PISA 2025 Foreign Language Assessment questionnaire development, and to interpret and to produce policy-relevant analyses based on the data on 15-year-old students’ proficiency in foreign languages. For academics and practitioners, this paper provides a comprehensive picture of the factors influencing foreign language learning, based on an in-depth review of the international literature and past assessments in this area, and on discussions with experts in the field and OECD countries. The framework is centred around four policy domains: Government and school policies, Students and learning, Teachers’ training and profile, and Teaching practices. In addition, the framework addresses two transversal topics that overlap these four policy domains: Information and communication technologies, and the Use of the target language for instruction in other subjects.
    Date: 2020–10–20
  32. By: Potts, Danielle; Martensen, Malte
    Abstract: Germany's population is currently undergoing a major shift as well as a general decline. These changes are expected to impact not only the workforce but also the social systems dependent on having a steady supply of individuals contributing to them. While no single solution alone is likely to be enough to resolve the upcoming challenges, the post-graduation employment of international students may help. However, even though there are jobs available, many international students in Germany struggle to find work after completing their studies. How, and with who, international students form their networks in the host country may play a crucial role in successful employment. While research has been conducted on international student friendship formation, social capital, and employability, little to no research has been conducted on how these elements interact when employment in the host country is the goal of an international student post-graduation. A better understanding of the role friendship plays in developing host country social capital could be key in guaranteeing international students to find employment in their host country post-graduation. Additionally, for Germany in particular, this will mean more filled positions and potentially reduced strain on workforce dependent social systems in the future.
    Keywords: International Students,Friendship Formation,Social Capital,Employability,Germany
    JEL: M54
    Date: 2020
  33. By: Rajeev Darolia; Cory Koedel (Department of Economics and Truman School of Public Affairs at the University of Missouri, Columbia); Joyce B. Main; Felix Ndashimye; Junpeng Yan
    Abstract: We study the effects of access to high school math and science courses on postsecondary STEM enrollment and degree attainment using administrative data from Missouri. Our data include over 140,000 students from 14 cohorts entering the 4-year public university system. The effects of high school course access are identified by exploiting plausibly exogenous variation in course offerings within high schools over time. We find that differential access to high school courses does not affect postsecondary STEM enrollment or degree attainment. Our null results are estimated precisely enough to rule out moderate impacts.
    Keywords: STEM, College sorting; High school curricula
    JEL: I23 J15
    Date: 2020–10
  34. By: Pike, Susan PhD; Kazemian, Sara
    Abstract: Ridehail services such as Uber and Lyft present new, flexible travel options. Integrating these services with existing public transit could reduce costs, facilitate more transit use, and improve access. To realize these benefits, a growing number of transit agencies are exploring partnerships with ridehail and other shared-use mobility companies, such as bikesharing and carsharing services. Under such partnerships transit agencies typically subsidize shareduse mobility services for passengers connecting to transit stations or traveling when transit service is limited or unavailable. If successful, these partnerships could serve as part of a new model of environmentally sustainable, costeffective, and equitable public transportation. However, only a few jurisdictions have implemented successful partnerships. Transit agencies that have not pursued these partnerships have expressed concerns about cost, liability, regulatory issues, and data sharing. Little is known about what prompts some transit providers to pursue these partnerships while others do not. Researchers at UC Davis surveyed 37 transit agencies and interviewed seven transit agency professionals over two years to better understand why transit agencies pursue shared-use mobility partnerships, the factors that influence partnership formation, and barriers that prevent or slow the formation of partnerships.
    Keywords: Social and Behavioral Sciences
    Date: 2020–10–23
  35. By: Blanco, M; Guerra, J. A.
    Abstract: How do various sources of social identity affect segregation and discrimination decisions? In our laboratory experiment, social identity originates either from similar preferences, income, ability, randomly or from shared socioeconomic status. For the latter, we exploit Colombia’s unique (public information) stratification system which assigns households to socioeconomic strata based on its residential block amenities. Subjects decide with whom to interact in a Dictator and Trust Game. We find high socioeconomic status senders segregate against out-group receivers in the Dictator Game, while low socioeconomic ones do so in the Trust Game. This segregation pattern is partly explained by payoff-maximizing behavior. In the Trust Game, we gather evidence for statistical discrimination. In the Dictator Game, evidence points to a taste for redistribution when identity originates from socioeconomic status or income level. No matter the source of identity, our subjects expect being segregated but not discriminated against.
    Keywords: Socioeconomic status, stratification, segregation, discrimination, laboratory experiment
    JEL: C91 D91 J15 Z13
    Date: 2020–09–10
  36. By: AQuitterie Roquebert
    Abstract: Providing care at home generates specific constraints, particularly the travel of caregivers to the consumers’ place. This paper analyzes the empirical significance of travel costs in the context of home care provision in France, expliciting the sources of their variation and their effect on the organization of providers. It makes use of original data obtained from a large home care provider. Travel time and distance generated by caregiver rounds are computed from geographical information in the data, to retrieve the travel costs borne by the provider. They are found to be higher in rural municipalities and to decrease with the size of urban units. This is due higher travel distances but also to the characteristics of the demand living there. Indeed, severely disabled individuals are over-represented in these areas and their fragmented consumption generates higher travel costs. In this context, the unique price charged to all consumers entails a redistribution towards rural areas and disabled individuals. The travel costs are found to have a limited effect on the duration of interventions.
    Keywords: disabled elderly, home care services, travel costs.
    JEL: I11 I18 J14 R32
    Date: 2020
  37. By: Vladimir Hlasny (UN ESCWA); Shireen AlAzzawi (Santa Clara University)
    Abstract: We examine the role of cross-border return migration in the intertemporal and intergenerational transmission of status across seven surveys from Egypt, Jordan and Tunisia. We use transition matrices and instrumental variable regressions to link prime-age men’s present outcomes to those in prior years and to their fathers’ outcomes. Earnings in prior years are inferred using job-type and occupation-group cell means. We find that return migrants land higher-earning jobs and are more inter-generationally mobile. However, they outperform non-migrants not only currently but even in past years. Controlling for mitigating factors, the role of migration disappears, suggesting that individual-level effects and demographics are responsible.
    Keywords: Return migration, intergenerational socioeconomic mobility, MENA
    JEL: F22 O15 R23 J61 J62
    Date: 2020–10
  38. By: Dan Anderberg; Helmut Rainer; Fabian Siuda
    Abstract: We propose a model that (i) provides an algorithm for measuring temporal variation in domestic violence incidence based on internet search activity and (ii) makes precise the conditions under which this measure yields less biased estimates of the domestic violence problem during periods of crisis than traditional, police-recorded crime measures. Analyzing the COVID-19 lockdown in Greater London, we find a 40 percent peak increase in our internet search-based domestic violence index, 7-8 times larger than the increase in police recorded crimes and much closer to the increase reported by victim support charities in relation to helpline calls.
    Keywords: COVID-19, domestic violence, police-recorded crime, internet search data, signal-to-noise
    JEL: J12 I18
    Date: 2020
  39. By: Bächli, Mirjam; Teodora Tsankova
    Abstract: We investigate how the introduction of free movement of workers affects enrolment of natives in tertiary education. In a difference-in-differences framework, we exploit a policy change that led to a significant increase in the share of cross-border commuters in local employment in border regions of Switzerland. Our results show a rise in enrolment at Universities of Applied Sciences in affected relative to non-affected regions in the post-reform period but no change in enrolment at traditional universities. Furthermore, we find that enrolment increases in non-STEM fields that build skills less transferable across national borders. This allows for complementarities with foreign workers who are more likely to hold occupations requiring STEM training. Individuals with a labor market oriented education such as vocationally trained respond to the increase in labor market competition because they have employment opportunities and access to tertiary education through Universities of Applied Sciences.
    Keywords: Cross-border commuting, demand for tertiary education, study field choice, labor market conditions
    JEL: F22 I26 J24 J61 R23
    Date: 2020–10
  40. By: Duchini, Emma (University of Warwick); Van Effenterre, Clémentine (University of Toronto)
    Abstract: We provide causal evidence that children's school schedules contribute to the persistence of the gender pay gap between parents. Historically, French children have had no school on Wednesdays. In 2013, a reform reallocated some classes to Wednesday mornings. Exploiting variations in the application of this reform over time and across the age of the youngest child, we show that mothers are more likely to adopt a regular Monday-Friday full-time working schedule after the reform, while fathers' labor supply is unchanged. Consequently, the reform decreased the monthly gender pay gap by 6 percent, generating fiscal revenues that substantially outweigh its costs.
    Keywords: school schedule, gender inequality, female labor supply, child penalty
    JEL: H52 J13 J16 J22
    Date: 2020–10
  41. By: Michelle W. Bowman
    Date: 2020–10–01
  42. By: Michael Coury
    Abstract: How does exposure to risk shape individual preferences for an expanded state? I examine this question in the context of a source of risk prominently featured in the public discourse: climate change. I use variation in California wildfire activity to study how demand for government services evolves following exposure to climate change associated disaster events. I find that Census block groups experiencing a large fire in the two years preceding a biennial Congressional election increase support by 0.7 percentage points for ballot initiatives which expand government spending and taxation. Preference for a more activist state is stronger on the issues rendered most salient by fire exposure, as I document a larger increase of 2.6 percentage points in support for ballot initiatives endorsed by pro-environment interest groups. The effect of fire exposure is stronger in more Republican areas and decays with distance from a fire. The effect does not appear to be driven by shifts in voter registration or turnout, suggesting that the mechanism is indeed changes in individual preferences rather than compositional changes in the electorate.
    Date: 2020–01
  43. By: Advani, Arun (Department of Economics and CAGE Research Centre, University of Warwick; Institute for Fiscal Studies); Koenig, Felix (Heinz College, Carnegie Mellon University); Pessina, Lorenzo (Department of Economics, Columbia University); Summers, Andy (Department of Law, London School of Economics)
    Abstract: In this paper we study the contribution of migrants to the rise in UK top incomes. Using administrative data on the universe of UK taxpayers we show migrants are over-represented at the top of the income distribution, with migrants twice as prevalent in the top 0.1% as anywhere in the bottom 97%. These high incomes are predominantly from labour, rather than capital, and migrants are concentrated in only a handful of industries, predominantly finance. Almost all (85%) of the growth in the UK top 1% income share over the past 20 years can be attributed to migration. JEL codes: H2, J3, J6
    Date: 2020
  44. By: Guillaume Chapelle (Sciences Po)
    Abstract: This paper uses a difference-in-differences (DID) framework to estimate the impact of Non-Pharmaceutical Interventions (NPIs) used to fight the 1918 influenza pandemic and control the resultant mortality in 43 U.S. cities. The results suggest that NPIs such as school closures and social distancing, as implemented in 1918, and when applied for a relatively long and sustained time, might have reduced individual and herd immunity and the population general health condition, thereby leading to a significantly higher number of deaths in subsequent years.
    Keywords: non-pharmaceutical interventions ; 1918 influenza ; difference-in-differences ; health policies
    Date: 2020–10
  45. By: Reed, David S. (Center for Public Administrators)
    Abstract: Bearfield, Maranto and Wolf (2020) advise policy-makers to measure policing outcomes using a metric that includes rates of homicide, police-related civilian deaths (PRCD) , and poverty. They present such an index, which they call the Police Performance Index (PPI). But alternative functional forms that are equally plausible can lead to different rankings of police departments, and therefore different policy conclusions.
    Date: 2020–10–14
  46. By: Peter Huber; Marian Fink; Thomas Horvath
    Abstract: As part of a larger research project, we survey existing data sets and research results on immigrants' integration success in Austria focusing on educational and labour market outcomes. We consider different registers as well as survey data available to researchers on a regular basis and compare to what extent these data contain relevant information on immigrants and their educational and employment careers and survey the research that has been conducted based on the different datasets. We also aim to identify research gaps and potential data gaps resulting from the fragmentation of relevant information over different data sets. While different data sources contain different aspects relevant for integration research, a "complete" picture of integration processes as well as the identification of supporting and hindering factors for successful integration typically requires a combination of different data sets that may also enrich longitudinal (register-based) individual data by more detailed characteristics from survey data.
    Keywords: dynamic microsimulation, migration, labour market integration, immigrant integration, social security, education
    Date: 2020–10–20
  47. By: L. WILNER (Insee - Crest)
    Abstract: Using the 2016 merger of French regions as a natural experiment, this paper adopts a difference-in-difference identification strategy to recover its causal impact on individual subjective wellbeing. No depressing effect is found despite increased centralization; life satisfaction has even increased in regions that were absorbed from economic and political viewpoints. The empirical evidence also suggests that local economic performance improved in the concerned regions, which includes a faster decline in the unemployment rate. In this setting, economic gains have likely outweighed cultural attachment to administrative regions.
    Keywords: Merger of regions; natural experiment; difference-in-difference; subjective wellbeing; centralization.
    JEL: H75 I31
    Date: 2020
  48. By: Hulya Saygili
    Abstract: This paper contributes to the literature on the growth and income convergence effects of investment incentives in Turkey in four ways: Firstly, it uses the most recent investment incentives data from 2004-2018 for 81 provinces grouped into 6 regions. Secondly, it investigates the significance of the lagged impact of investment incentives. Thirdly, it applies Prais-Winsten regressions with heteroskedastic panels-corrected standard errors (PCSE) to address autocorrelation, heterogeneity, and endogeneity problems in a panel context. Fourthly, in addition to neoclassical conditional Beta-convergence, it modifies the Sigma-convergence approach to investigate the direct impact of investment incentives directly on regional convergence. The estimation results indicate convergence, but investment incentives have significant time-lagged impacts in relatively high income regions only.
    Keywords: Regional income convergence, Regional investment incentives, Panel data analysis, Turkey
    JEL: R11 R50 O47 C23
    Date: 2020
  49. By: Mark Colas; Dominik Sachs
    Abstract: Low-skilled immigrants indirectly affect public finances through their effect on native wages & labor supply. We operationalize this general-equilibrium effect in the workhorse labor market model with heterogeneous workers and intensive and extensive labor supply margins. We derive a closed-form expression for this effect in terms of estimable statistics. We extend the analysis to various alternative specifications of the labor market and production that have been emphasized in the immigration literature. Empirical quantifications for the U.S. reveal that the indirect fiscal benefit of one low-skilled immigrant lies between $770 and $2,100 annually. The indirect fiscal benefit may outweigh the negative direct fiscal effect that has previously been documented. This challenges the perception of low-skilled immigration as a fiscal burden.
    Keywords: immigration, fiscal impact, general equilibrium
    JEL: H20 J31 J62 J68
    Date: 2020
  50. By: Ricardo Hausmann (Center for International Development at Harvard University); Douglas Barrios (Center for International Development at Harvard University); Daniela Muhaj; Sehar Noor; Carolina Ines Pan (Center for International Development at Harvard University); Miguel Angel Santos (Center for International Development at Harvard University); Jorge Tapia (Center for International Development at Harvard University); Bruno Zuccolo
    Abstract: What does it take for a sub-national unit to become an autonomous engine of growth? This issue is particularly relevant to large cities, as they tend to display larger and more complex know-how agglomerations and may have access to a broader set of policy tools. To approximate an answer to this question, specific to the case of Buenos Aires, Harvard’s Growth Lab engaged in a research project from December 2018 to June 2019, collaborating with the Center for Evidence-based Evaluation of Policies (CEPE) of Universidad Torcuato di Tella, and the Development Unit of the Secretary of Finance of the City of Buenos Aires. Together, we have developed research agenda that seeks to provide inputs for a policy plan aimed at decoupling Buenos Aires’s growth trajectory from the rest of Argentina’s.
    Keywords: Economic growth, growth diagnostics
    Date: 2020–10

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