nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2022‒03‒21
34 papers chosen by
Steve Ross
University of Connecticut

  1. Housing Search Frictions: Evidence from Detailed Search Data and a Field Experiment By Peter Bergman; Eric Chan; Adam Kapor
  2. The decision to move house and aggregate housing-market dynamics By Ngai, L. Rachel; Sheedy, Kevin D.
  3. Social Networks and (Political) Assimilation in the Age of Mass Migration By Biavaschi, Costanza; Giulietti, Corrado; Zenou, Yves
  4. A Bridge to Graduation: Post-Secondary Effects of an Alternative Pathway for Students Who Fail High School Exit Exams By Jane Arnold Lincove; Catherine Mata; Kalena Cortes
  5. Regional diversification in Brazil: the role of relatedness and complexity By Mariane Santos Françoso; Ron Boschma; Nicholas Vonortas
  6. How Much Does COVID-19 Increase with Mobility? Evidence from New York and Four Other U.S. Cities By Edward L. Glaeser; Caitlin S. Gorback; Stephen J. Redding
  7. Optimal Lockdown in a Commuting Network By Pablo D. Fajgelbaum; Amit Khandelwal; Wookun Kim; Cristiano Mantovani; Edouard Schaal
  8. The Effect of Occupational Licensing Stringency on the Teacher Quality Distribution By Bradley Larsen; Ziao Ju; Adam Kapor; Chuan Yu
  9. A full year COVID-19 crisis with interrupted learning and two school closures: The effects on learning growth and inequality in primary education By Haelermans, Carla; Jacobs, Madelon; van Vugt, Lynn; Aarts, Bas; Abbink, Henry; Smeets, Chayenne; van der Velden, Rolf; van Wetten, Sanne
  10. Tracking and specialization of high schools: heterogeneous effects of school choice By Olivier de Groote; Koen Declercq
  11. Land is back, it should be taxed, it can be taxed By Odran Bonnet; Guillaume Chapelle; Alain Trannoy; Etienne Wasmer
  12. Cities, Conflict, and Corridors By Kitamura, Shuhei; Lagerlöf, Nils-Petter
  13. Markups Across Space and Time By Eric Anderson; Sergio Rebelo; Arlene Wong
  14. Minority Underrepresentation in U.S. Cities By Federico Ricca; Francesco Trebbi
  15. Peer Effects in Product Adoption By Michael Bailey; Drew Johnston; Theresa Kuchler; Johannes Stroebel; Arlene Wong
  16. Behavioural changes in urban mobility in Barcelona due to the COVID-19 pandemic and its impact on air pollution and greenhouse gas emissions By Peters, Corinna
  17. Interregional Contact and the Formation of a Shared Identity By Manuel Bagues; Christopher Roth
  18. Intergenerational Mobility By Neil A. Cholli; Steven N. Durlauf
  19. What makes students' access to digital learning more equitable? By OECD
  20. Bullard Speaks with Fox Business about Inflation, Tapering, Housing Market By James B. Bullard
  21. Integrating Refugees by Addressing Labor Shortages? A Policy Evaluation By Mette Foged; Janis Kreuder; Giovanni Peri
  22. Searching for Approval By Sumit Agarwal; John R. Grigsby; Ali Hortaçsu; Gregor Matvos; Amit Seru
  23. Do Second Chances Pay Off? By Aspasia Bizopoulou; Rigissa Megalokonomou; Stefania Simion
  24. Racial Disparities in the Paycheck Protection Program By Sergey Chernenko; David S. Scharfstein
  25. Association between network characteristics and bicycle ridership across a large metropolitan region By Beck, Ben; Pettit, Christopher; Winters, Meghan; Nelson, Trisalyn; Vu, Hai; Nice, Kerry A; Seneviratne, Sachith; Saberi, Meead
  26. Residential Neighbourhood Charging of Electric Vehicles: an exploration of user preferences By Budnitz, Hannah; Meelen, Toon; Schwanen, Tim
  27. Rural-Urban Transition: A Challenge to Agricultural Productivity, Biodiversity and Food Security in Pakistan By Khan, Iqrar Ahmad
  28. The Value of Time: Evidence from Auctioned Cab Rides By Nicholas Buchholz; Laura Doval; Jakub Kastl; Filip Matejka; Tobias Salz
  29. Improving government quality in the regions of the EU and its system-wide benefits for Cohesion policy By Javier Barbero; Martin Christensen; Andrea Conte; Patrizio Lecca; Andres Rodriguez-Pose; Simone Salotti
  30. Gifted Children Programs’ Short and Long-Term Impact: Higher Education, Earnings, and the Knowledge-Economy By Victor Lavy; Yoav Goldstein
  31. Refugee Migration and the Labor Market: Lessons from 40 Years of Post-arrival Policies in Denmark By Jacob Nielsen Arendt; Christian Dustmann; Hyejin Ku
  32. Naughty scooter parking: Public perceptions & policy intervention By Klein, Nicholas J.; Brown, Anne; Thigpen, Calvin
  33. Regional and less developed business ecosystems: Strategies and development prospects By Katimertzopoulos, Fotios; Vlados, Charis; Koutroukis, Theodore
  34. Splitting up Dhaka City: Rationales, Challenges and Prospects as a Sustainable City By Murad, Wahid; Alam, Md. Mahmudul; Shahriar, Shawon Muhammad

  1. By: Peter Bergman (Columbia University); Eric Chan (Babson College); Adam Kapor (Princeton University)
    Abstract: We randomized school quality information onto the listings of a nationwide housing website for low-income families. We use this variation and data on families’ search and location choices to estimate a model of housing search and neighborhood choice that incorporates imperfect information and potentially biased beliefs. We find that imperfect information and biased beliefs cause families to live in neighborhoods with lower-performing, more segregated schools. Families underestimate school quality conditional on neighborhood characteristics. If we had ignored this information problem, we would have estimated that families value school quality relative to their commute downtown by half that of the truth.
    Keywords: housing, school choice, residential choice
    JEL: I00 I21 I24 I30 R00 R21 R31
    Date: 2020–03
  2. By: Ngai, L. Rachel; Sheedy, Kevin D.
    Abstract: Using data on house sales and inventories, this paper shows that housing transactions are driven mainly by listings and less so by transaction speed, thus the decision to move house is key to understanding the housing market. The paper builds a model where moving house is essentially an investment in match quality, implying that moving depends on macroeconomic developments and housing-market conditions. The number of transactions has implications for welfare because each transaction reduces mismatch for homeowners. The quantitative importance of the decision to move house is shown in understanding the U.S. housing-market boom during 1995–2003.
    Keywords: housing market; search and matching; endogenous moving; match quality investment; mismatch
    JEL: D83 E22 R31
    Date: 2020–10–01
  3. By: Biavaschi, Costanza; Giulietti, Corrado; Zenou, Yves
    Abstract: This paper investigates the causal pathways through which ethnic social networks influence individual naturalization. Using the complete-count Census of 1930, we digitize information on the exact residence of newly arrived immigrants in New York City. This allows us to define networks with a granularity detail that was not used before for historical data - the Census block - and therefore to overcome issues of spatial sorting. By matching individual observations with the complete-count Census of 1940, we estimate the impact that the exogenous fraction of naturalized co-ethnics in the network observed in 1930 has on the probability of immigrants to acquire citizenship a decade later. Our results indicate that the concentration of naturalized co-ethnics in the network positively affects individual naturalization and that this relationship operates through one main channel: information dissemination. Indeed, immigrants who live among naturalized co-ethnics are more likely to naturalize because they have greater access to critical information about the benefits and procedures of naturalization.
    Keywords: Social networks,assimilation,naturalization,migration
    JEL: J61 J62 N32 Z1
    Date: 2022
  4. By: Jane Arnold Lincove; Catherine Mata; Kalena Cortes
    Abstract: High school exit exams are meant to standardize the quality of public high schools and to ensure that students graduate with a set of basic skills and knowledge. Evidence suggests that a common perverse effect of exit exams is an increase in dropout for students who have difficulty passing tests, with a larger effect on minority students. To mitigate this, some states offer alternative, non-tested pathways to graduation for students who have failed their exit exams. This study investigates the post-secondary effects of an alternative high school graduation program. Among students who initially fail an exit exam, those who eventually graduate through an alternative project-based pathway have lower college enrollment, but similar employment outcomes to students who graduate by retaking and passing their exit exams. Compared to similar students who fail to complete high school, those students who take the alternative pathway have better post-secondary outcomes in both education and employment.
    JEL: I2 I21 I24 I26 J01 J18
    Date: 2022–02
  5. By: Mariane Santos Françoso; Ron Boschma; Nicholas Vonortas
    Abstract: The paper contributes to the growing literature on the relationship between relatedness, complexity and regional diversification. It explores regional diversification in an emerging economy, focusing on diversification opportunities of regions with distinct levels of local capabilities. We investigate the importance of relatedness and economic complexity for sectoral and technological diversification in all regions of Brazil during the period 2006-2019. Regions tend to diversify in sectors/technologies requiring similar capabilities to those already available locally. In general, the higher the sector/technology complexity, the lower the probability of diversification. However, in high-complex regions, complexity reverses into a positive force for diversification. Our analysis shows catching-up and diversification prospects vary widely across different types of regions in Brazil.
    Keywords: regional diversification; relatedness; complexity; emerging economies; Brazil
    JEL: O25 O33 R11 O31
    Date: 2022–02
  6. By: Edward L. Glaeser (Harvard University); Caitlin S. Gorback (National Bureau of Economic Research); Stephen J. Redding (Princeton University)
    Abstract: How effective are restrictions on geographic mobility in limiting the spread of the COVID-19 pandemic? Using zip code data for Atlanta, Boston, Chicago, New York (NYC), and Philadelphia, we estimate that total COVID-19 cases per capita decrease on average by approximately 20 percent for every ten percentage point fall in mobility between February and May 2020. To address endogeneity concerns, we instrument for travel by the share of workers in remote work friendly occupations, and find a somewhat larger average decline of COVID-19 cases per capita of 27 percent. Using weekly data by zip code for NYC and a panel data specification including week and zip code fixed effects, we estimate a similar average decline of around 17 percent, which becomes larger when we measure mobility using NYC turnstile data rather than cellphone data. We find substantial heterogeneity across both space and over time, with stronger effects for NYC, Boston and Philadelphia than for Atlanta and Chicago, and the largest estimated coefficients for NYC in the early stages of the pandemic.
    Keywords: COVID-19, pandemic, travel, transportation
    JEL: H12 I12 J17 R41
    Date: 2020–07
  7. By: Pablo D. Fajgelbaum (Princeton University); Amit Khandelwal (Columbia University); Wookun Kim (Southern Methodist University); Cristiano Mantovani (Universitat Pompeu Fabra); Edouard Schaal (CREI, ICREA, UPF, BGSE and CEPR)
    Abstract: We study optimal dynamic lockdowns against Covid-19 within a commuting network. Our framework integrates canonical spatial epidemiology and trade models, and is applied to cities with varying initial viral spread: Seoul, Daegu and NYC-Metro. Spatial lockdowns achieve substantially smaller income losses than uniform lockdowns. In NYM and Daegu—with large initial shocks—the optimal lockdown restricts inflows to central districts before gradual relaxation, while in Seoul it imposes low temporal but large spatial variation. Actual commuting reductions were too weak in central locations in Daegu and NYM, and too strong across Seoul.
    Keywords: COVID-19, pandemics, South Korea, United States, commuting, lockdown
    JEL: R38 R4 C6
    Date: 2020–11
  8. By: Bradley Larsen (Stanford University); Ziao Ju (Stanford University); Adam Kapor (Princeton University); Chuan Yu (Stanford University)
    Abstract: Concerned about the low academic ability of public school teachers, in the 1990s and 2000s, some states increased licensing stringency to weed out low-quality candidates, while others decreased restrictions to attract high-quality candidates. We offer a theoretical model justifying both reactions. Using data from 1991–2007 on licensing requirements and teacher quality—as measured by the selectivity of teachers’ undergraduate institutions—we find that stricter licensing requirements, especially those emphasizing academic coursework, increase the left tail of the quality distribution for secondary school teachers without significantly decreasing quality for high-minority or high-poverty districts.
    Keywords: Education, Teacher licensing
    JEL: I2 J2 J4 J5 K2 K31 L5 L8
    Date: 2020–12
  9. By: Haelermans, Carla; Jacobs, Madelon; van Vugt, Lynn; Aarts, Bas; Abbink, Henry; Smeets, Chayenne; van der Velden, Rolf; van Wetten, Sanne
    Abstract: After more than a year of COVID-19 crisis and the school closures that followed all around the world, the concerns about lower learning growth and exacerbated inequalities are larger than ever. In this paper, we use unique data to analyse how one full year of COVID-19 crisis in Dutch primary education has affected learning growth and pre-existing inequalities. We draw on a dataset that includes around 330,000 Dutch primary school students from about 1,600 schools, with standardized test scores for reading, spelling and mathematics, as well as rich (family) background information of the students. The results show a lower learning growth over a full year for all three domains, varying from 0.06 standard deviations for spelling to 0.12 for maths and 0.17 standard deviations for reading. Furthermore, we find that the lower learning growth is (much) larger for vulnerable students with a low socioeconomic background. This implies that pre-existing inequalities between students from different backgrounds have increased. These results are quite alarming and suggest that distance learning could not compensate for classroom teaching, although it prevented some damage that would have occurred if students had not enjoyed any formal education at all.
    Date: 2021–11–08
  10. By: Olivier de Groote (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Koen Declercq (CEREC - Université Saint-Louis - Bruxelles)
    Abstract: We analyze the impact of choosing an elite school on high school graduation in an early tracking system in Flanders (Belgium). Whereas elite schools offer only an academic track, most other schools offer multiple tracks. On average, students experience a 3.3 percentage point increase in the likelihood of obtaining a degree. We find that the effects are heterogeneous. On average, students who self-select into elite schools do not experience an effect. However, students who do not choose an elite school would experience positive effects. Our results can be explained by different tracking decisions in both types of schools.
    Keywords: Marginal treatment effects,Early tracking,Elite schools
    Date: 2021
  11. By: Odran Bonnet (CREST-INSEE - Centre de Recherche en Economie et en Statistique - Institut national de la statistique et des études économiques (INSEE)); Guillaume Chapelle (THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université); Alain Trannoy (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Etienne Wasmer (Department of Economics, Social Science Div. NYU-Abu Dhabi)
    Abstract: Land is back. The increase in wealth in the second half of 20th century arose from housing and land. It should be taxed. We introduce land and housing structures in Judd's standard setup: first best optimal taxation is achieved with a property tax on land and requires no tax on capital. With positive taxes on housing rents, a first best is still possible but with subsidies to rental housing investments, and either with differential land tax rates or with a tax on imputed rents. It can be taxed. Even absent land taxes, one can tax it indirectly and reach a Ramsey-second best still with no tax on capital and positive housing rent taxes in the steady-state. This result extends to the dynamics under restrictions on parameters.
    Keywords: Capital,Wealth,Housing,Land,Optimal tax,First best,Second best
    Date: 2021–05
  12. By: Kitamura, Shuhei; Lagerlöf, Nils-Petter
    Abstract: In this paper we propose that state structure in European history is linked to how geography affects the effective distance between state capitals. First we document that military battles tend to occur close to the shortest-distance corridors between the capitals of the belligerent powers, *except* where that corridor is intercepted by certain types of geography, specifically seas, mountains, and marshes. Geography thus seems to have influenced the effective military distance between the belligerents’ capitals. Then we explore similar corridors between a multitude of European cities, documenting two patterns: (1) state capitals tend to be closer to each other when the geography between them is more separating, as measured by similar types of geography found to affect battle locations; (2) controlling for distance, the likelihood that any two cities are located in the same state decreases with the same types of geography between them. We present a model consistent with these patterns.
    Date: 2021–11–15
  13. By: Eric Anderson (Northwestern University); Sergio Rebelo (Northwestern University); Arlene Wong (Princeton University)
    Abstract: In this paper, we provide direct evidence on the behavior of markups in the retail sector across space and time. Markups are measured using gross margins. We consider three levels of aggregation: the retail sector as a whole, the firm level, and the product level. We find that: (1) markups are relatively stable over time and mildly procyclical; (2) there is large regional dispersion in markups; (3) there is positive cross-sectional correlation between local income and local markups; and (4) differences in markups across regions are explained by differences in assortment within each goods category, not by deviations from uniform pricing. We propose an endogenous assortment model consistent with these facts.
    Keywords: Gross margins, prices, marginal costs, business cycles
    JEL: E30
    Date: 2020–11
  14. By: Federico Ricca; Francesco Trebbi
    Abstract: This paper investigates the patterns of Minority representation and voter registration in U.S. municipal governments. For the period 1981-2020, we report substantial levels of strategic underrepresentation of African American, Asian, and Latino voters in U.S. local politics. Disproportionality in the representation and in voter registration rates of Minority groups are widespread, but stronger when racial or ethnic minorities are electorally pivotal. Underrepresentation is determined by the combination of several endogenous institutional features, starting from systematic disparity in voter registration, strategic selection of electoral rules, city’s form of government, council size, and pay of elected members of the council. We provide causal evidence of the strategic use of local political institutions in reducing electoral representation of minorities based on the U.S. Supreme Court narrow decision of Shelby County v. Holder (2013), which deemed unconstitutional Voting Rights Act (VRA) Section 4(b), removing federal preclearance requirements for a specific subset of U.S. jurisdictions.
    JEL: P16 P48
    Date: 2022–02
  15. By: Michael Bailey (Facebook); Drew Johnston (Harvard University); Theresa Kuchler (New York University); Johannes Stroebel (New York University); Arlene Wong (Princeton University)
    Abstract: We use de-identified data from Facebook to study the nature of peer effects in the market for cell phones. To identify peer effects, we exploit variation in friends’ new phone acquisitions resulting from random phone losses. A new phone purchase by a friend has a large and persistent effect on an individual’s own demand for phones of the same brand. While peer effects increase the overall demand for phones, a friend’s purchase of a particular phone brand can reduce an individual’s own demand for phones from competing brands, in particular if they are running on a different operating system.
    Keywords: Peer Effects, Demand Spillovers, Social Learning
    JEL: L1 L2 M3 D4
    Date: 2021–01
  16. By: Peters, Corinna
    Abstract: This study assesses changes in mobility behaviour in the City of Barcelona due the COVID‐19 pandemic and its impact on air pollution and GHG emissions. Urban transport is an important source of global greenhouse gas (GHG) emissions. Improving urban mobility patterns is therefore crucial for mitigating climate change. This study combines quantitative survey data and official government data with in‐depth interviews with public administration officials of the City. Data illustrates that Barcelona has experienced an unprecedented reduction in mobility during the lockdown (a 90% drop) and mobility remained at comparatively low levels throughout the year 2020. Most remarkable is the decrease in the use of public transport in 2020 compared to pre‐pandemic levels, whereas road traffic has decreased to a lesser extent and cycling surged at times to levels up to 60% higher than pre‐pandemic levels. These changes in mobility have led to a radical and historic reduction in air pollution, with NO2 and PM10 concentration complying with WHO guidelines in 2020. Reductions in GHG emissions for Barcelona’s transport sector are estimated at almost 250.000 t CO2eq in 2020 (7% of the City’s overall annual emissions). The study derives policy implications aimed at achieving a long‐term shift towards climate‐friendlier, low‐emission transport in Barcelona, namely how to recover lost demand in public transport and seize the opportunity that the crisis brings for reform by further reducing road traffic and establishing a 'cycling culture' in Barcelona, as already achieved in other European cities.
    Date: 2021–12–01
  17. By: Manuel Bagues (University of Warwick, J-Pal, CEPR, IZA); Christopher Roth (University of Cologne, briq, CESifo, CAGE, CEPR)
    Abstract: We study the long-run effects of contact with individuals from other regions in early adulthood on preferences, beliefs and national identity. We combine a natural experiment, the random assignment of male conscripts to different locations throughout Spain, with tailored survey data. Being randomly assigned to complete military service outside of one’s region of residence fosters contact with conscripts from other regions, and increases sympathy and trust towards people from the region of service, as measured decades later. We also observe a long-lasting increase in identification with Spain for individuals originating from regions with strong peripheral nationalism.
    Keywords: Interregional Contact, Intergroup Exposure, Beliefs, Preference Formation, Identity
    JEL: R23 D91 Z1
    Date: 2022–03
  18. By: Neil A. Cholli; Steven N. Durlauf
    Abstract: This essay reviews the theory and empirics of intergenerational mobility. Our review draws on models and empirical analyses of classic and more recent work from both economics and sociology. We summarize models and the surrounding empirical evidence of two key sets of mechanisms: family factors (income, education, credit constraints, household composition, and genes) and social factors (schools, neighborhood sorting, racial segregation, and peer and role model effects). We then discuss and evaluate current methods used to measure intergenerational mobility, including linear regressions and Markov chains. Theoretical models imply nonlinear relationships between parent and child status that are often ignored in practice and offer potentially different interpretations of the evidence of heterogeneity in mobility across locations, groups, and time. We conclude that the next generation of studies would benefit from a closer integration of theory with empirics.
    JEL: D30 H0 J0 R0
    Date: 2022–02
  19. By: OECD
    Abstract: Information and communication technology (ICT) has become an important tool for school systems as they seek to enhance education and make it more efficient. This has become all the more apparent and urgent with the COVID-19 pandemic. But what degree of access do students from different socio-economic backgrounds have to ICT-based quality instruction? Overall, disadvantaged students tend to have less access to digital learning opportunities both at home and at school. The data also suggest that the way teachers with certain characteristics are distributed can facilitate better equity. Two examples highlighted in this brief are teachers’ digital self-efficacy and training in ICT-based instruction.
    Keywords: ict, schools, self-efficacy, skills, teachers, teaching, training
    Date: 2022–03–18
  20. By: James B. Bullard
    Abstract: St. Louis Fed President James Bullard shared his views on the state of the U.S. economy, upside risks to inflation, the discussion on tapering the Fed’s bond purchases, and the booming housing market during an appearance on Fox Business.
    Keywords: inflation; tapering; housing market
    Date: 2021–07–01
  21. By: Mette Foged; Janis Kreuder; Giovanni Peri
    Abstract: We evaluate the effect on newly arrived refugees' employment of a policy, introduced in Denmark in 2013, that matched refugees to occupations with local labor shortages after basic training for those jobs. Leveraging the staggered roll-out across municipalities, we find that the policy increased employment by 5-6 percentage points one year after arrival and 10 percentage points two years after. The policy was especially effective for male refugees and refugees with some secondary education. The findings suggest that this type of policy could alleviate long-term labor shortages and integrate low-skilled immigrants, while having minimal competition effects on natives.
    JEL: J24 J61
    Date: 2022–02
  22. By: Sumit Agarwal (National University of Singapore); John R. Grigsby (Princeton University); Ali Hortaçsu (University of Chicago); Gregor Matvos (Northwestern University); Amit Seru (Stanford University)
    Abstract: We study the interaction of search and application approval in credit markets. We combine a unique dataset, which details search behavior for a large sample of mortgage borrowers, with loan application and rejection decisions. Our data reveal substantial dispersion in mortgage rates and search intensity, conditional on observables. However, in contrast to predictions of standard search models, we find a novel non-monotonic relationship between search and realized prices: borrowers, who search a lot, obtain more expensive mortgages than borrowers' with less frequent search. The evidence suggests that this occurs because lenders screen borrowers' creditworthiness, rejecting unworthy borrowers, which differentiates consumer credit markets from other search markets. Based on these insights, we build a model that combines search and screening in presence of asymmetric information. Risky borrowers internalize the probability that their application is rejected, and behave as if they had higher search costs. The model rationalizes the relationship between search, interest rates, defaults, and application rejections, and highlights the tight link between credit standards and pricing. We estimate the parameters of the model and study several counterfactuals. The model suggests that "overpayment" may be a poor proxy for consumer unsophistication since it partly represents rational search in presence of rejections. Moreover, the development of improved screening technologies from AI and big data (i.e., fintech lending) could endogenously lead to more severe adverse selection in credit markets. Finally, place based policies, such as the Community Reinvestment Act, may affect equilibrium prices through endogenous search responses rather than increased credit risk.
    Keywords: credit markets, household finance
    JEL: G21 G50 G51 G53 L00
    Date: 2020–06
  23. By: Aspasia Bizopoulou; Rigissa Megalokonomou; Stefania Simion
    Abstract: In several countries, students who fail end-of-high-school high-stakes exams are faced with the choice of retaking them or forgoing postsecondary education. We explore exogenous variation generated by a 2006 policy that imposed a performance threshold for admission into postsecondary education in Greece to estimate the effect of retaking exams on a range of outcomes. Using a fuzzy regression discontinuity design and novel administrative data, we find that low-achieving students who retake national exams improve their performance by half a standard deviation, but do not receive offers from higher quality postsecondary placements. The driving mechanism for these results stems from increased competition.
  24. By: Sergey Chernenko; David S. Scharfstein
    Abstract: Using a large sample of Florida restaurants, we document significant racial disparities in borrowing through the Paycheck Protection Program (PPP) and investigate the causes of these disparities. Black-owned restaurants are 25% less likely to receive PPP loans. Restaurant location explains 5 percentage points of this differential. Restaurant characteristics explain an additional 10 percentage points of the gap in PPP borrowing. On average, prior borrowing relationships do not explain disparities. The remaining 10% disparity is driven by a 17% disparity in PPP borrowing from banks, which is partially offset by greater borrowing from nonbanks, largely fintechs. Disparities in PPP borrowing cannot be attributed to lower awareness of PPP loans or lower demand for PPP loans by minority-owned restaurants. Black-owned restaurants are significantly less likely to receive bank PPP loans in counties with more racial bias. In these counties, Black-owned restaurants are more likely to substitute to nonbank PPP loans. This substitution, however, is not strong enough to eliminate racial disparities in PPP borrowing. Finally, we show that our findings apply more broadly across industries in a sample of firms that were likely eligible for PPP.
    JEL: G01 G21 G23 G28
    Date: 2022–02
  25. By: Beck, Ben; Pettit, Christopher; Winters, Meghan; Nelson, Trisalyn; Vu, Hai; Nice, Kerry A; Seneviratne, Sachith; Saberi, Meead
    Abstract: Background: Numerous studies have explored associations between bicycle network characteristics and bicycle ridership. However, the majority of these studies have been conducted in inner metropolitan regions and as such, there is limited knowledge on how various characteristics of bicycle networks relate to bicycle trips within and across entire metropolitan regions, and how the size and composition of study regions impact on the association between bicycle network characteristics and bicycle ridership. Methods: We conducted a retrospective analysis of household travel survey data and bicycle infrastructure in the Greater Melbourne region, Australia. Seven network metrics were calculated and Bayesian spatial models were used to explore the association between these network characteristics and bicycle ridership (measured as counts of the number of trips, and the proportion of all trips that were made by bike). Results: We demonstrated that bicycle ridership was associated with several network characteristics, and that these characteristics varied according to the outcome (count of the number of trips made by bike or the proportion of trips made by bike) and the size and characteristics of the study region. Conclusions: These findings challenge the utility of approaches based on spatially modelling network characteristics and bicycle ridership when informing the monitoring and evaluation of bicycle networks. There is a need to progress the science of measuring safe and connected bicycle networks for people of all ages and abilities.
    Date: 2021–11–19
  26. By: Budnitz, Hannah; Meelen, Toon; Schwanen, Tim
    Abstract: In this study, we investigate the preferences for private electric vehicle (EV) charging among households without a private residential charging option. We seek to understand which attributes of a residential neighbourhood charging service would offer an attractive substitute to charging an EV on private property overnight, as is most common among existing EV owners. Our stated choice experiment is designed to reflect preferences for parking as well as charging behaviour in order to ground the choices in trade-offs familiar to a target market representative of car drivers who are unlikely to be able to charge at home. Our findings suggest that this target population has different socio-demographic characteristics from the early adopters of EVs, and that therefore their priorities and preferences are different. Whether on-street or in a car park, the local environment in which the EV charging service sits and the experience of walking home after plugging in the vehicle is of primary importance. Some will also value the certainty of an available space over its convenience.
    Date: 2022–02–05
  27. By: Khan, Iqrar Ahmad
    Abstract: Like elsewhere, migration-led peri-urban (rural clusters) growth of cities has been an important element of rural-urban transformation for centuries. However, only recently, in this process, the rural landscape also benefits from these changes, owing to better communication and market access. Peri-urban areas are consuming peripheral villages. This has put pressure on land and water resources putting environmental health at stake. Loss of biodiversity is imminent due to changing ecological frame conditions in an increasingly human-made environment. In many areas rural populations are also shifting away from traditional farming towards white-collar jobs. While this could have positive implications for the socio-economic structure of the society at large, it will also present new challenges for meeting the food and nutritional requirements of the population as a whole. New farming models and marketing innovations are required to meet increasing food demands and changes of consumption habits. This working paper describes the ongoing rural-urban transition and discuss the potential for carving new cropping systems and entrepreneurship options in newly formed agro-ecologies and semi-urban rural clusters of Pakistan. It is hoped that it will also help initiating further study and compilation of empirical evidence.
    Date: 2022–03
  28. By: Nicholas Buchholz (Princeton University); Laura Doval (Columbia University); Jakub Kastl (Princeton University); Filip Matejka (CERGE-EI); Tobias Salz (Massachusetts Institute of Technology)
    Abstract: We recover valuations of time using detailed data from a large ride-hail platform, where drivers bid on trips and consumers choose between a set of rides with different prices and waiting times. We estimate demand as a function of prices and waiting times and find that price elasticities are substantially higher than waiting-time elasticities. We show how these estimates can be mapped into values of time that vary by place, person, and time of day. We find that the value of time during non-work hours is 16% lower than during work hours. Most of the heterogeneity in the value of time, however, is explained by individual differences. We apply our estimates to study optimal time incentives in highway procurement. Standard industry practices, which set incentives based on a uniform value of time, lead to mis-priced time costs by up to ninety percent.
    Keywords: Value of time, demand in transportation markets, ride hail
    JEL: C73 D83 L90 R12
    Date: 2020–08
  29. By: Javier Barbero; Martin Christensen; Andrea Conte; Patrizio Lecca; Andres Rodriguez-Pose; Simone Salotti
    Abstract: We quantify the general equilibrium effects on economic growth of improving the quality of institutions at the regional level in the context of the implementation of the European Cohesion Policy for the European Union and the UK. The direct impact of changes in the quality of government is integrated in a general equilibrium model to analyse the system-wide economic effects resulting from additional endogenous mechanisms and feedback effects. The results reveal a significant direct effect as well as considerable system-wide benefits from improved government quality on economic growth. A small 5% increase in government quality across European Union regions increases the impact of Cohesion investment by up to 7% in the short run and 3% in the long run. The exact magnitude of the gains depends on various local factors, including the initial endowments of public capital, the level of government quality, and the degree of persistence over time. inked to higher mortality. Accounting for a host of potential confounders, we find robust support that regions with lower levels of both social and political trust are associated with higher excess mortality, along with citizen polarization in institutional trust in some models. On the ideological make-up regional parliaments, we find that, ceteris paribus, those that lean more ‘tan’ on the ‘gal-tan’ spectrum yielded higher excess mortality. Moreover, although we find limited evidence of elite polarization driving excess deaths on the left-right or gal-tan spectrums, partisan differences on the attitudes towards the EU demonstrated significantly higher deaths, which we argue proxies for (anti)populism. Overall, we find that both lower citizen-level trust and populist elite-level ideological characteristics of regional parliaments are associated with higher excess mortality in European regions during the first wave of the pandemic.
    Keywords: government quality, cohesion, economic growth, public investment, regions, EU
    JEL: C68 O17 R13 R15
    Date: 2022–01
  30. By: Victor Lavy; Yoav Goldstein
    Abstract: We estimate the effects of gifted children programs (GCP) in high schools in Israel. We selected a comparison group of equally gifted students from other cities where GCP was not offered at the time. Based on administrative data, we follow 22 cohorts and measure treatment effects on outcomes, ranging from high school to the labor market in their 30s and 40s. We find tiny impact on academic achievements in high school, in contrast to the abundance of educational resources enjoyed by GCP participants. In the longer run, we find meaningful effects of GCP on higher education attainment. GCP participants study more math, computer, and physical sciences but engage less in engineering programs. The net effect on STEM degrees is, therefore, zero. However, a much higher share of GCP participants graduated with two STEM majors. This evidence suggests that GCP enhances the impact of “multipotentiality,” which characterizes many gifted adolescents. The effect on getting a Ph.D. is positive, too. Lastly, we find no effect of GCP on employment and earnings. Nor do we find that GCP participants work more than other equally talented children in the knowledge economy. These results are very similar for females and males gifted children.
    JEL: J01 J24
    Date: 2022–02
  31. By: Jacob Nielsen Arendt (Jacob Nielsen Arendt); Christian Dustmann (Christian Dustmann); Hyejin Ku (Hyejin Ku)
    Abstract: Denmark has accepted refugees from a large variety of countries and for more than four decades. Denmark has also frequently changed policies and regulations concerning integration programs, transfer payments, and conditions for permanent residency. Such policy variation in conjunction with excellent administrative data provides an ideal laboratory to evaluate the effects of different immigration and integration policies on the outcomes of refugee immigrants. In this article, we first describe the Danish experience with refugee immigration over the past four decades. We then review different post-arrival refugee policies and summarize studies that evaluate their effects on the labor market performance of refugees. Lastly, we discuss and contrast these findings in the context of international studies of similar policies and draw conclusions for policy.
    Keywords: refugee integration, immigration policies, labor supply, employment, language
    JEL: J22 J24 J61
    Date: 2022–03
  32. By: Klein, Nicholas J. (Conrell University); Brown, Anne; Thigpen, Calvin
    Abstract: Shared scooter programs often generate complaints about improper parking as a hazard to pedestrians and as unappealing clutter on sidewalks, yet previous research has found relatively low rates of misparking. What do people think constitutes misparking, and how much misparking do they think occurs? Can interventions further reduce misparking? We conducted field experiments in Washington DC and Auckland, New Zealand. We find evidence for the efficacy of three interventions. The introduction of in-app message reminders and the implementation of sidewalk decals both lowered rates of misparking. The largest improvement in misparking was brought about by the introduction of lock-to, thanks to a large shift from parking in the furniture zone to bike racks. In addition, we assess perceptions of scooter misparking with an intercept survey in the same cities and polls of transportation professionals at four conferences. Both the public and transportation professionals overestimate misparking of scooters and underestimate misparking of bicycles and cars. We find that respondents equate parking compliance with pedestrian accessibility and tidiness. Our results suggest that intuitive parking solutions that align with rider and non-rider understandings of orderly parking, such as bike racks or on-street parking corrals, improve rider compliance and may reduce public dissatisfaction with shared scooter parking.
    Date: 2022–02–15
  33. By: Katimertzopoulos, Fotios (Democritus University of Thrace, Department of Economics); Vlados, Charis (Democritus University of Thrace, Department of Economics); Koutroukis, Theodore (Democritus University of Thrace, Department of Economics)
    Abstract: James Moore coined the term business ecosystem, where businesses are considered as components of an ecosystem in which they collaborate, satisfying consumers and integrating innovation. A business ecosystem is an economic community supported by a structure of interacting organizations-businesses and individuals producing goods and services for consumers. The business strategy in a regional and local innovation ecosystem faces various challenges, such as a possible conflict with the great forces of the ecosystem and the creation of a healthy partnership for the development of new products-services. The business strategy developed in these ecosystems takes the form of new companies that use technological change to introduce new products or new business models through new competitive scenarios and the reciprocal relationships developed in this context. However, most businesses, especially in remote and underdeveloped regional and local business ecosystems, are facing many challenges; as such they require a different support framework for their innovation system. This system should work a way that it will enable organizations to develop their innovations based on their business partnerships, being able at the same time to balance their cognitive asymmetries. In the present research study, through the literature review of scientific research in the field of regional innovation systems and less developed business ecosystems, the central analytical dimensions and strategies (Stra.Tech. Man innovation theory) are identified and analyzed to determine how they could contribute to achieve effective business innovation and long-term stable growth and development.
    Keywords: regional innovation system; business ecosystem; less developed business ecosystems; strategy innovation; Stra.Tech.Man innovation theory
    JEL: M19 O30 P48 R19
    Date: 2021–11–10
  34. By: Murad, Wahid; Alam, Md. Mahmudul (Universiti Utara Malaysia); Shahriar, Shawon Muhammad
    Abstract: The objective of this study is to analyse the rationales, challenges and prospects of Dhaka City being split up, for the purposes of creating a sustainable city grounded in relevant theories and widely used and accepted standards. An assessment of Dhaka being divided in accordance with the concept of City Development Strategies reveals considerable deficiencies in most aspects of public goods and services provisions. Whilst splitting Dhaka into separate sections supports the “World City Hypothesis” it is not without criticisms, for instance those raised by urban planners, experts and politicians. The lack of resources and oversight to address those deficiencies and problems and the administrative, allocative, economic and social inefficiencies makes it very difficult for Dhaka’s authorities to achieve sustainable urbanisation. Therefore, appropriate strategies must be implemented by government to resolve these problems, inefficiencies and mismanagement in order for the city to be liveable sustainable.
    Date: 2021–11–30

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