nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2023‒04‒24
fifty-six papers chosen by
Steve Ross
University of Connecticut

  1. Where did Redlining Matter?: Regional Heterogeneity and the Uneven Distribution of Advantage By Xu, Wenfei
  2. Decomposing the Impact of Immigration on House Prices By Rosa Sanchis-Guarner
  3. The Effect of Housing Costs on Household Transportation By Khammo, Faye
  4. Downward nominal house price rigidity: Evidence from three centuries of data on housing transactions By Solveig K. Erlandsen; Ragnar Enger Juelsrud
  5. Are Taxes Drivers of House Prices? : Cross-Country Evidence from (Advanced) Economies in APEC By Yoon, Yeo Joon; Lee , Woong
  6. Is car sharing in Australia socio-spatially equitable? By Bilas, Angeline
  7. Authorized Vehicles Only: Police, parking, and pedestrian access in New York City By Moran, Marcel E
  8. Understanding unsolved crimes hotspots: a spatial approach By Juan Andrés Cabral
  9. On the Establishment of Creative Workers’ Clubs within Creative Quarters By Basile Michel
  10. School ICT resources, teachers, and online education:Evidence from school closures in Japan during the COVID-19 pandemic By Hideo Akabayashi; Shimpei Taguchi; Mirka Zvedelikova
  11. The housing net worth channel and the public finances: Evidence from a European country panel By Cronin, David; McQuinn, Kieran
  12. Trade Shocks, Population Growth, and Migration By Sofía Fernández Guerrico
  13. The housing market in a DSGE model for Kazakhstan By Akbobek Akhmedyarova
  14. Pathways to home ownership in an age of uncertainty By Troy, Laurence; Wolifson, Peta; Buckley, Amma; Buckle, Caitlin; Adkins, Lisa; Bryant, Gareth; Konings, Martijn
  15. “We are the makers of manners”: A grounded approach to data ethics for the built environment By Wong, Janis; Ahmad, Yusra; Chadwick, Sue
  16. BLM protests and racial hate crime in the United States By CARR, Joel
  17. Shifted out: the well-being and justice implications of evening and night commuting By Palm, Matthew; Allen, Jeff; Farber, Steven
  18. Forecasting High Bay Water Levels that Result in Flooding and Highway Closure By Largier, John L; Munger, Sophie; Shilling, Fraser; Roettger, Robin
  19. The Relationship Between the University Wage Premium and the Urban-Rural Divide in Australia By Boss, Daniel
  20. Closing the price gap - Von Thünen applied to wheat markets in 18th century Spain By CERMEÑO, Alexandra L.; SANTIAGO-Caballero, Carlos
  21. Racial Discrimination and Lost Innovation: Evidence from US Inventors, 1895–1925 By Davide M. Coluccia; Gaia Dossi; Sebastian Ottinger
  22. School ICT resources, teachers, and online education: Evidence from school closures in Japan during the COVID-19 pandemic By Hideo Akabayashi; Shimpei Taguchi; Mirka Zvedelikova
  23. Banking on Snow: Bank Capital, Risk, and Employment By Simon Baumgartner; Alex Stomper; Thomas Schober; Rudolf Winter-Ebmer
  24. Teacher Influence in Music Composition since 1450: A Replication of Borowiecki (2022) By Korpershoek, Jori; Musumeci, Marco; Stans, Renske A.; Totarelli, Maddalena
  25. The Initial and Dynamic Effects of the COVID-19 Pandemic on Crime in New Zealand By Lydia Cheung; Philip Gunby
  26. Community-Oriented Solutions May Help Rural Residents Adapt to Life Without a Car By Barajas, Jesus; Wang, Weijing
  27. Impacts of Droughts on Economic Activities in The São Paulo Metropolitan Area By Sass, Karina Simone; Haddad, Eduardo Amaral; Mendiondo, Eduardo Mario
  28. The Effect of Parole Board Racial Composition on Prisoner Outcomes By Julia Godfrey; Kegon Teng Kok Tan; Mariyana Zapryanova
  29. The Demographics of World’s Largest Corporations: Focus on the Different Region Levels By Patrik Vanek
  30. How do Parole Boards Respond to Large, Societal Shocks? Evidence from the 9/11 Terrorist Attacks By Brendon McConnell; Kegon Teng Kok Tan; Mariyana Zapryanova
  31. Education-Oriented and Care-Oriented Preschools:Implications on Child Development By Hideo Akabayashi; TIm Ruberg; Chizuru Shikishima; Jun Yamashita
  32. Regional Public Investment and Regional Economic Growth : Study Using Spatial Econometrics Panel Data Approach By Bouamoud Safae; Kassaoui Radouane
  33. A demand-responsive feeder service with a maximum headway at mandatory stops By GALARZA MONTENEGRO, Bryan David; SÖRENSEN, Kenneth; VANSTEENWEGEN, Pieter
  34. Networks and Information in Credit Markets By Gupta, Abhimanyu; Kokas, Sotirios; Michaelides, Alexander; Minetti, Raoul
  35. Knowledge spillovers from HIV research-funding By Yaqub, Ohid; Coburn, Josie; Moore, Duncan A.Q.
  36. READ-GER: Introducing German Real-Time Regional Accounts Data for Revision Analysis and Nowcasting By Robert Lehmann
  37. It never rains but it pours: Austerity and mortality rate in peripheral areas By Guccio, C.; Pignatora, G.; Vidoli, F.
  38. Les propriétaires de maisons ont-ils raison de craindre lâarrivée de logements sociaux dans leur quartier?? By Jean Dubé; François Des Rosiers; Nicolas Devaux
  39. Decentralization, Ethnic Fractionalization, and Public Services: Evidence from Kenyan Healthcare By Hémet, Camille; Wren-Lewis, Liam; Mahoney, Jessica
  40. Are academic achievement and preferences in Math and Japanese associated with Prosociality? By Endo Naoki
  41. Ranked Choice Bedlam in a 2022 Oakland School Director Election By David McCune
  42. Trade Liberalization and Local Development in India: Evidence from Nighttime Lights By Priyaranjan Jha; Karan Talathi
  43. How “one-size-fits-all” public works contract does it better? An assessment of infrastructure provision in Italy By Finocchiaro Castro, Massimo; Guccio, Calogero; Rizzo, Ilde
  45. Mitigating the Impact of Ageing on Property Value: An Analysis of Maintenance and Reinvestment Measures By Wilhelmsson, Mats; Roos, Henrik
  46. Two Approaches to Saving the Economy: Micro-Level Effects of Covid-19 Lockdowns in Italy By Cseres-Gergely, Zsombor; Kecht, Valentin; Le Blanc, Julia; Onorante, Luca
  47. Territorial Patterns of Open E-Government: Evidence from Chilean Municipalities By González-Bustamante, Bastián; Aguilar, Diego
  48. Startup Village Conceptualisation By GOODWIN-HAWKINS Bryonny; GUZZO Fabrizio; MERIDA MARTIN Fernando; SASSO Simone
  49. Household-level welfare effects of land expropriation: Evidence from China By Randolph, Hannah
  50. How Does Local Cost-of-Living Affect Retirement for Low and Moderate Earners? By Laura D. Quinby; Gal Wettstein
  51. Why Are Immigrants Always Accused of Stealing People's Jobs? By Pascal Michaillat
  52. Renewable resource rents, taxation and the effects of wind power on rural economies By Hillberry, Russell; Nguyen, Nhu
  53. US Municipal Green Bonds and Financial Integration By Guglielmo Maria Caporale; Nicola Spagnolo
  54. Education during the pandemic: an opportunity to transform education systems in Latin America and the Caribbean By Huepe, Mariana; Palma, Amalia; Trucco
  55. Value-Based Distance Between Information Structures By Fabien Gensbittel; Marcin Peski; Jérôme Renault
  56. Nightless City: Impacts of Policymakers' Questions on Overtime Work of Government Officials By Natsuki Arai; Masashige Hamano; Munechika Katayama; Yuki Murakami; Katsunori Yamada

  1. By: Xu, Wenfei
    Abstract: This article analyses the regional variation in outcomes of a seemingly standardized federal neighborhood valuation principle used in home mortgage insurance grading. The objective is to highlight the contingent discriminatory and economic conditions that mediated heterogeneous housing outcomes across different parts of the United States. How did city and regional economic and demographic growth patterns vary before and during the mortgage insurance program implemented through the Federal Housing Administration (FHA)? How may this have shaped loan guarantee patterns? How does pre-existing racial housing discrimination relate to outcomes? Adopting an orientation that centers on Whiteness and the benefits of mortgage finance for certain groups and neighborhoods, this analysis uses a Bayesian hierarchical framework to investigate the degree of the FHA’s influence between 1940 and 1970, here proxied by the Home Owners’ Loan Corporation maps, on A or B (“AB”) graded neighborhoods versus C graded neighborhoods in different cities. This article studies how home values and homeownership changes over time and whether there regional variation in the influence of these grades. It also studies what longitudinal socioeconomic patterns might explain the persistence or decline of the AB effect over time. Findings show cities in the West Coast, Southwest, and Northern Central United States that saw the most housing construction also had the highest proportions of FHA loans to overall dwelling units. There is also a distinctive consistency and persistence of benefit on home value and homeownership to AB graded neighborhoods in these cities, possibly owing to regional shifts in the industrial landscape.
    Date: 2023–03–07
  2. By: Rosa Sanchis-Guarner (Universitat de Barcelona & IEB)
    Abstract: Immigrant inflows affect local house prices by increasing housing demand when housing supply is fixed. In this paper, I show that we can formally decompose total demand changes into changes stemming from an immediate increase in population due to new arrivals (“partial effect”) and additional changes in demand from relocated natives (“induced effect”). I propose a methodology to separately estimate these two effects using Spanish provinces’ data from 2001- 2012. Applying an instrumental variables approach, I find that a 1 p.p. increase in the immigration rate increases average house prices by 3.3% and rents by 1%. Partial demand estimates are 24% smaller than the total estimates, due to immigrants and natives locating in the same provinces. The results show that accounting for the impact of immigration on native location choices is key to understanding net demand adjustments, as partial and total effects can significantly differ depending on native population mobility.
    Keywords: Immigration, House Prices, Spain
    JEL: J61 R12 R21
    Date: 2022
  3. By: Khammo, Faye (Monash University)
    Abstract: We use individual-level panel data from Australia and a novel fixed-effect instrumental variable approach to estimate the causal effect of housing cost on five measures of household transportation; work commute time, relocation, and the respective expenditure share on motor vehicle fuel, public transport and taxi, and total transportation. The instrumental variable exploits arguably exogenous variation in housing costs induced by foreign investments that flow differentially into regions according to the past geographical distribution of immigrants. We find that rises in housing costs, measured by the composite opportunity costs faced by representative renters and owners living in an area, increase an individual’s work commute time and the probability of relocation, and lead to a shift in the individual’s expenditure away from fuel towards public transportation.
    Keywords: Housing cost ; Transportation cost ; Commute time ; Household relocation ; Transportation expenditure ; Transportation mode JEL classifications: R20 ; R21 ; R40 ; F21
    Date: 2023
  4. By: Solveig K. Erlandsen; Ragnar Enger Juelsrud
    Abstract: By analyzing housing data from the period 1850 to 2019 in Norway, we find evidence of downward nominal house price rigidity. More specifically, we document that there is a marked fraction of repeat-sales housing transactions with a zero nominal price change and show that this fraction increases in housing market downturns. While the former result reveals a rigidity in nominal house prices, the latter suggests that the direction of it is predominantly downward.
    Keywords: House prices, Repeat sales transaction data, Price rigidity, Monetary policy, Financial crisis
    JEL: R31 E30 N13 N14
    Date: 2023–01
  5. By: Yoon, Yeo Joon (Pusan National University); Lee , Woong (JEONBUK NATIONAL UNIVERSITY Institute of Industrial Economics)
    Abstract: This paper investigates the determinants of house prices in APEC countries. We focus our analysis on the role of property related taxes as well as other important macroeconomic variables. Tax is one of direct tools of government for influencing housing market. Therefore, analyzing how these taxes affect house prices provides direct policy implications. Our result suggests that the property tax is negatively associated, while the acquisition tax is positively related with the house prices. In shaping this outcome, the force from demand side as well as that from supply side are working at the same time. A higher tax usually increases costs of acquiring and maintaining houses which exerts upward pressures on house prices. On the other hand, a higher tax suppresses demand for houses because less people purchase houses as the costs increase. These two opposing forces interact with each other to yield qualitatively different results regarding the acquisition and property tax.
    Keywords: house prices; real estate taxes; APEC
    JEL: H20 R30
    Date: 2022–12–16
  6. By: Bilas, Angeline (Monash University)
    Abstract: This paper investigates the impact of car sharing services (GoGet and Flexicar) on transport equity in Melbourne and Brisbane, Australia, including two lower socio-economic regions of Melbourne. The results show evidence of strong latent demand for car sharing services in these areas, indicating the potential for car sharing to improve access to transport and transport equity for disadvantaged communities. The study also finds that the main barriers to the adoption of car sharing were lack of availability, cost and lack of awareness. The findings suggest that expanding car sharing services could improve transport equity outcomes in low socio-economic areas.
    Keywords: car sharing ; transport equity ; low socio-economic regions JEL classifications: N7 ; N77
    Date: 2023
  7. By: Moran, Marcel E
    Keywords: Social and Behavioral Sciences
    Date: 2023–05–01
  8. By: Juan Andrés Cabral
    Keywords: hotspots, crimes, spatial
    JEL: C21 K14
    Date: 2021–11
  9. By: Basile Michel (PLACES - Laboratoire de géographie et d'aménagement - CY - CY Cergy Paris Université, ESO - Espaces et Sociétés - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UM - Le Mans Université - UA - Université d'Angers - UR2 - Université de Rennes 2 - CNRS - Centre National de la Recherche Scientifique - NantesUniv – IGARUN - Institut de Géographie et d'Aménagement Régional de l'Université de Nantes - Nantes Université - pôle Humanités - Nantes Univ - Nantes Université - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)
    Abstract: This article is a contribution to the ongoing research and debate on cultural or creative quarters and their role in contemporary cities. It focuses on the organization and working methods of the creative workers based in these quarters, devoting particular attention to the networks they establish at micro level. By drawing upon existing economic and sociological research on clubs, the article aims to further our understanding of the spatial organization of cultural and creative industries. On the basis of qualitative studies conducted in two neighborhoods in the French cities of Nantes (Les Olivettes) and Marseille (Le Panier), the article argues that creative workers organize in the form of clubs rooted within creative quarters. These workers unite around specific goods and services, to which they control access via processes of selection and co-optation, creating exclusive groups of mutual assistance of which they are the members. These results hint at the potentially ambivalent impact of such agglomerations of cultural and creative industries in specific urban areas, where the dynamics of sharing and collaboration run the risk of descending into social exclusion and a clique mentality. These results also raise a potential theoretical contribution regarding the use of clubs in urban studies.
    Keywords: co-optation, creative quarters, clubs, creative workers, collaborative network
    Date: 2022
  10. By: Hideo Akabayashi (Faculty of Economics, Keio University); Shimpei Taguchi (Graduate School of Economics, Keio University (Graduate student)); Mirka Zvedelikova (Institute of Social and Economic Research, Osaka University)
    Abstract: As schools worldwide were forced to close due to the COVID-19 pandemic in early 2020, they struggled to switch to online education. Using Japan fs nationwide administrative data, we examine the impact of schools f ICT equipment and teachers f IT skills on the provision of online classes, communication with students f families, and teachers f working hours during and shortly after the closures. To isolate supply-side effects, we exploit differences in ICT resources between public elementary and junior high schools using a municipality-level fixed effects model, the level at which ICT resources are decided. We find that basic ICT equipment was critical to implementing online classes, but IT skills were not. Furthermore, we observe no effect of ICT resources on schools f communication with families. However, IT skills were associated with teachers f working hours. In particular, weak IT skills resulted in a higher percentage of teachers working overtime.
    Keywords: COVID-19, remote education, overtime work, teachers f skills, school resources
    JEL: I20 J22 H75
    Date: 2023–03–15
  11. By: Cronin, David; McQuinn, Kieran
    Date: 2022
  12. By: Sofía Fernández Guerrico
    Abstract: This paper examines the effect of trade-induced changes in Mexican labor demand on population growth and migration responses at the local level. It exploits cross-municipality variation in exposure to a change in trade policy between the United States and China that eliminated potential tariff increases on Chinese imports, negatively affecting Mexican manufacturing exports to the United States. Municipalities more exposed to the policy change, via their industry structure, experienced greater employment loss. In the five years following the change in trade policy, more exposed municipalities experience increased population growth, driven by declines in out-migration. Conversely, 6 to 10 years after the change in trade policy, exposure to increased trade competition is associated with decreased population growth, driven by declines in in-migration and return migration rates, and increased out-migration. The sluggish regional adjustment is consistent with high moving costs and transitions across sectors in the short term.
    Keywords: Trade competition; Job displacement; Population growth
    JEL: F16 J23 O12 R12 R23
    Date: 2023–02–27
  13. By: Akbobek Akhmedyarova (NAC Analytica, Nazarbayev University)
    Abstract: In this paper, we build a DSGE model with the housing market, the non-resource sector and the endogenous oil production sector for an oil-exporting economy. We assess the role of housing market shocks in business cycle fluctuations for Kazakhstan. The model incorporates four key sectors and is estimated using Bayesian methods over the period from 2007Q2 to 2022Q1. We find that inflationary processes in Kazakhstan are mainly driven by shocks arising from housing and import markups. We also find that productivity and housing investment shocks are pivotal in explaining the disturbances in GDP growth. Impulse responses of the model show that a housing productivity shock exerts a stronger impact on output than a housing investment shock. We observe that a positive shock to an oil price leads to a negligible increase in output for all sectors except the non-resource sector, while its impact on inflation is limited.
    Keywords: DSGE; Housing market; Bayesian estimation; multi-sector; Kazakhstan
    JEL: C11 E30 E32 R21
    Date: 2022–09
  14. By: Troy, Laurence; Wolifson, Peta; Buckley, Amma; Buckle, Caitlin; Adkins, Lisa; Bryant, Gareth; Konings, Martijn
    Abstract: This research investigates how young households (aged 25–34) in Sydney and Perth are adapting their spending and saving behaviours and living arrangements in order to be able to buy a home. Increased house prices and cost of living have worsened the challenge of home ownership, with households—particularly low-income ones—unable to keep pace with market increases through their saving and budgeting strategies, which included minimising discretionary spending and actively managing finances such as by paying ahead on utility bills, eating basic foods and avoiding spending altogether. The research indicates a diminished ability to save for a deposit through employment alone, with around 40 per cent of research survey participants expecting family assistance, whether direct finance or in-kind, to help them purchase. The ability to access such family support was found to be the single biggest factor in supporting being able to buy a home. In Sydney, familial support was an essential component of being able to buy a home in all cases, while in Perth it was still possible for some to buy without assistance, however many still benefited from direct and indirect help. Government assistance policies need to a focus on long term risks and uncertainties generated through rising house prices, rising interest rates and an uncertain labour market. Housing policy will also need to recognise the often precarious life courses people experience, including recognising other tenures (such as renting) as legitimate long term housing outcomes. Housing policy needs to account for both existing and emergent generations of households who will never attain home ownership and address the structural wealth inequalities that being locked out of ownership generates.
    Date: 2023–03–20
  15. By: Wong, Janis; Ahmad, Yusra; Chadwick, Sue
    Abstract: The adoption of technologies and application of data-driven practices in the real estate sector, has grown significantly over the past decade. To ensure that citizens' data are protected, the property sector has had to adhere to data protection regulations and justify the vast amounts of data that is being collected, processed, and shared. However, regulation alone is insufficient to ensure ethical practices within both private and public built environments. While attempts have been made by the real estate sector and government to establish legislative, policy, and best practices for incorporating ethical considerations as part of the urban planning process, there is currently no centralised regulation to put ethics in practice. This paper outlines the real estate sector and the data that flows through it, explores the data and data protection challenges within the sector, and suggests paths forward when it comes to data protection, management, and ethics within the built environment.
    Date: 2023–02–20
  16. By: CARR, Joel
    Abstract: We provide evidence of the impact of protests following the death of George Floyd on anti-Black and anti-White hate crimes in the US. Using a regression discontinuity in time model, difference-in-differences, and synthetic control methods we find that recorded anti-Black (-White) hate crime increased by up to 15 (4) incidents per day or 259 (165) percent in June 2020. To account for changes in incentives to commit hate crimes during the coronavirus pandemic we control for other hate crime biases. We find that changes in unemployment due to the pandemic is a significant mediating factor in the hate crime shock against both groups and a larger shock in the first weeks of the protests in counties with a first BLM protest after Floyd’s death. In addition, we test for mechanisms driving the changes, including retaliation, protectionism, and changes in victim reporting. Anti-Black hate crime is more sensitive to saliency of opposition to protests, “White genocide”, and Derek Chauvin measured by tweets but less sensitive to cable news reporting. Using crime victimization survey we find that White hate crime victims were more likely to report victimization during the protests and evidence that police reduced effort toward Black hate crime victims and increased arrests of anti-White hate crime offenders. The results suggest that large scale protests or conflict between two groups during periods of increase in unemployment can lead to a substantial increase in expressed xenophobia.
    Keywords: Racism, Hate crime, Crime
    JEL: J15 K14 D74
    Date: 2022–12
  17. By: Palm, Matthew; Allen, Jeff (University of Toronto); Farber, Steven
    Abstract: This study analyses shift work commuting. We ask: who works evening and night shifts, how do they commute, and how does working these shifts impact activity participation and wellbeing? We answer these questions using two national datasets. Our results offer four overarching findings. First, we find significant demographic differences along lines of race, poverty status, immigration, and household type, differences reflecting occupational segregation. Black, Filipino, South Asian, and Indigenous commuters are significantly overrepresented. Second, evening and night shift workers are more likely to commute as car passengers or by bus or walking. Third, we find limited evidence that shift workers make fewer overall trips throughout the day. Fourth, we find that while shift workers have significantly lower life satisfaction, auto ownership may ameliorate this impact. In light of these results, we conclude that improving the transport situation for shift-workers is essential to advancing both wellbeing and transportation justice.
    Date: 2023–03–14
  18. By: Largier, John L; Munger, Sophie; Shilling, Fraser; Roettger, Robin
    Abstract: Like most coastal states in the U.S., California’s shoreline communities and ecosystems have been exposed to flooding related to sea level rise and storms, which jeopardize their persistence and well-being. Shoreline transportation is especially vulnerable in certain places to flooding and failure, and because it is part of a continuously used network with little redundancy, it transfers its vulnerability to regional transportation networks. Forward-projected inundation/flooding risk is typically modeled at coarse spatial and temporal scales, which are useful at regional and decadal scales, but less useful for coastal managers and flood responders. This project improved assessment of both overall probability and short-term forecasts of water level for specific locations in San Francisco Bay that are vulnerable to flooding associated with sea level rise. The authors have developed probability assessment and forecasts through developing data-based, site-specific, model-independent approaches, which can be compared with and help to improve regional models of coastal flooding (e.g., CoSMoS). Water level data were collected across fine-scale arrays at fluvial-bay junctures in Sonoma and Marin Counties. The primary analysis is based on deconstructing water level records into multiple quasi-independent signals, which can be better predicted and recombined to produce probability of extreme events and to produce short-term forecasts during a flooding event based on predicted weather, wind, rain, and tide. In addition, real-time water level data are now available to first responders at critical locations in Novato Creek and Petaluma River when there is potential for flooding, as well as during a flood event. This is a pilot project that could be replicated at many other vulnerable locations around San Francisco Bay and elsewhere. View the NCST Project Webpage
    Keywords: Engineering, Physical Sciences and Mathematics, flood forecast, sea-level rise, storm surge, king tides, extreme event
    Date: 2023–03–01
  19. By: Boss, Daniel (Monash University)
    Abstract: This paper extends research conducted on the wage premia in Australia from acquiring tertiary education qualifications, covering the period 2007-08 to 2019-20. This analysis finds that while there is an increase in wages for those that complete tertiary education, the proportional increase in wages from obtaining university qualification declines marginally over the period. Conversely, the proportional increase in wages from obtaining other tertiary qualifications remains constant, with males consistently earning higher proportional increases than females. When accounting for location, there is no consistent significant effect on wages when comparing capital city and regional populations. However, when the mining industry is also accounted for, there is a significant positive effect to wages from living in a capital city in most years assessed, ranging from 2.5 to 6.7 per cent
    Keywords: Wage Premium ; Tertiary Education ; Labour Market JEL classifications: J30 ; J61
    Date: 2023
  20. By: CERMEÑO, Alexandra L.; SANTIAGO-Caballero, Carlos
    Abstract: According to the literature, transaction costs are influenced by several factors, ranging from institutional differences to asymmetric information. However, testing these hypotheses requires rich data not usually available in historical sources. In this study, we use a large-scale census of 1749 to analyze price gaps of wheat across rural municipalities and their local markets in Old Castile. For the first time in the literature, we examine price gaps across 5, 163 contiguous municipalities and assess transaction costs with unprecedented detail. By employing canonical variables and testing for spatial autocorrelation, we explore the determinants of transaction costs and contribute to the ongoing debates around the "Little Divergence." Our findings not only shed light on the factors that influence transaction costs but also represent a step forward in operationalizing them. Overall, this study offers new insights into the factors that shape transaction costs and contributes to the literature on the "Little Divergence." Our analysis demonstrates the importance of rich data in testing hypotheses related to transaction costs and highlights the benefits of using historical data to inform contemporary debates in economics.
    Keywords: Price gaps, transaction costs, spatial equilibrium model, autocorrelation
    JEL: F15 N73 N93 R41
    Date: 2023–04
  21. By: Davide M. Coluccia; Gaia Dossi; Sebastian Ottinger
    Abstract: How can racial discrimination harm innovation? We study this question using data on US inventors linked to population censuses in 1895-1925. Our novel identification strategy leverages plausibly exogenous variation in the timing of lynchings and the name of the victims. We find an immediate and persistent decrease in patents granted to inventors who share their names with the victims of lynchings, but only when victims are Black. We hypothesize that lynchings accentuate the racial content of the victim’s name to patent examiners, who do not observe inventor race from patent applications. We interpret these findings as evidence of discrimination by patent examiners and provide evidence against alternative mechanisms.
    Keywords: Discrimination; Innovation; Lynchings;
    JEL: J15 N31 N32 O11 O31
    Date: 2023–03
  22. By: Hideo Akabayashi; Shimpei Taguchi; Mirka Zvedelikova
    Abstract: As schools worldwide were forced to close due to the COVID-19 pandemic in early 2020, they struggled to switch to online education. Using Japan’s nationwide administrative data, we examine the impact of schools’ ICT equipment and teachers’ IT skills on the provision of online classes, communication with students’ families, and teachers’ working hours during and shortly after the closures. To isolate supply-side effects, we exploit differences in ICT resources between public elementary and junior high schools using a municipality-level fixed effects model, the level at which ICT resources are decided. We find that basic ICT equipment was critical to implementing online classes, but IT skills were not. Furthermore, we observe no effect of ICT resources on schools’ communication with families. However, IT skills were associated with teachers’ working hours. In particular, weak IT skills resulted in a higher percentage of teachers working overtime.
    Date: 2023–03
  23. By: Simon Baumgartner (Humboldt University Berlin); Alex Stomper (Humboldt University Berlin); Thomas Schober (NZ Work Research Institute, Auckland University of Technology); Rudolf Winter-Ebmer (Johannes Kepler University Linz)
    Abstract: How does small-firm employment respond to exogenous labour productivity risk? We find that this depends on the capitalization of firms’ local banks. The evidence comes from firms employing workers whose productivity depends on the weather. Weather- induced labour productivity risk reduces this employment, and this effect is stronger in regions where the regional banks have less equity capital. Bank capitalization also proxies for the extent to which the regional banks’ borrowers can obtain liquidity when the regions are hit by weather shocks. We argue that, as liquidity providers, well- capitalized banks support economic adaptation to climate change.
    Date: 2023–03
  24. By: Korpershoek, Jori; Musumeci, Marco; Stans, Renske A.; Totarelli, Maddalena
    Abstract: Borowiecki (2022) studies the influence of teachers on the style of their students in the domain of musical composition. The author finds that realized student-teacher pairs are on average 0.2-0.3 standard deviations more similar to unrealized, but possible, studentteacher pairs. In this report we provide the results of our replication of Borowiecki (2022). We direct our attention to the following tasks: 1) Replicating the outcome variables used in the paper, starting from the raw data, and generating alternative measures of similarity between students and teachers 2) Testing the validity of the random teacher-student pairing, a key assumption for the validity of the estimation strategy employed in the paper. We can replicate most of the outcome variables, but not all of them, due to incomplete raw data. Our alternative measures of similarity confirm the robustness of the original results. We find significantly different characteristics between paired and unpaired students, suggesting that matching between students and teachers does not occur randomly. However, controlling for these characteristics in the main regressions leads to quantitatively similar results to the ones reported in the original paper.
    Date: 2023
  25. By: Lydia Cheung (Auckland University of Technology); Philip Gunby (University of Canterbury)
    Abstract: We use seasonal ARIMA methods to study the imposition and removal of national uniform social distancing restrictions in response to Covid-19 in New Zealand for six crime types in six cities. We then use the estimated models to forecast counterfactual crime trajectories. Novel elements include cleanly defined lockdown periods, two dis- tinct lockdowns with meaningful gaps between them, and sizeable periods after each one to allow for dynamics. We find that social restrictions initially lower offending, subsequent lockdowns have smaller impacts on offending, “bounce back” occurs in criminal offending after their removal, and bounce back is faster from subsequent lockdowns.
    JEL: C22 H75 K14 K42
    Date: 2023–03
  26. By: Barajas, Jesus; Wang, Weijing
    Abstract: Rural residents face significant mobility challenges because travel destinations are far, opportunities like jobs and access to essential needs are limited, and rural roadways are more dangerous than their urban counterparts. These challenges are exacerbated when households have limited or no access to a vehicle because other transportation options are often expensive, inconvenient, or nonexistent. The confluence of not having access to a vehicle and living in rural areas is often associated with increased social isolation and difficulties in conducting basic activities like grocery shopping and accessing health care. Researchers at UC Davis used US Census microdata to describe socioeconomic and mobility characteristics of carless households and residents in rural California and conducted interviews to understand the barriers to access and travel adaptations among individuals who have limited access to a vehicle. View the NCST Project Webpage
    Keywords: Social and Behavioral Sciences, rural communities, disadvantaged communities, car-less households, mobility justice
    Date: 2023–03–01
  27. By: Sass, Karina Simone (Departamento de Economia, Universidade de São Paulo); Haddad, Eduardo Amaral (Departamento de Economia, Universidade de São Paulo); Mendiondo, Eduardo Mario (Sao Carlos School of Engineering, University of Sao Paulo)
    Abstract: Droughts can lead to severe socioeconomic impacts on cities by affecting industrial production, food and energy price, and income. Given that the frequency and intensity of this climatic event are increasing because of climate change, assessing the vulnerability of economic activities to drought is essential to develop adaptation strategies. This study explores the economic effects of droughts on the São Paulo Metropolitan Area (SPMA), a region with a high concentration of people and economic activities and frequently hit by droughts. Our method comprises an integrated system of analysis that puts together climatic and economic databases. The integrated modeling system is divided into three steps: i) calculate a variable to represent drought conditions; ii) estimate the direct impact of droughts on sectoral activities through an econometric model; and iii) estimate the total impact on the economy through a Spatial Computable General Equilibrium (SCGE) model calibrated with municipal data. The econometric model results showed that energy and water-intensive industries are more sensitive to droughts in the SPMA. The results from the simulations in the SCGE model showed that the impact on these sectors could spread to the entire economy, indirectly affecting activities such as land transport, construction, and personal services and decreasing the total production and disposable income of metropolitan municipalities.
    Keywords: local droughts impact; industrial activity; regional analysis; integrated modeling
    JEL: C68 R10
    Date: 2023–03–30
  28. By: Julia Godfrey (University of Rochester); Kegon Teng Kok Tan (University of Rochester); Mariyana Zapryanova (Smith College)
    Abstract: Parole is a major part of a prisoner's interaction with the criminal justice system, and is linked to long-run prisoner outcomes. Using data from the state of Georgia, we exploit the fact that prisoners are randomly allocated to parole board members to recover the effect of parole board racial composition on prisoner outcomes. We find that a higher proportion of Black members on the parole board is associated with better parole outcomes and lower 3-year recidivism rates for Black prisoners. Further, we document that the Black-White gap in parole violation rates, conditional on measures of parole success, closes when the parole board gains a Black member. Taken together, we argue that this is consistent with a reduction in discrimination against Black inmates with regard to parole decisions.
    Keywords: prison release, parole board, racial bias
    JEL: H76 K40
    Date: 2023–03
  29. By: Patrik Vanek (Department of Economics, Faculty of Business and Economics, Mendel University in Brno, Zemedelska 1, 613 00 Brno, Czech Republic)
    Abstract: We explore the large corporations' corporate headquarters based on their geographical location, age, and sector composition. Companies are divided by global regions, countries, metropolitan areas, and cities to provide a detailed analysis of the ability to produce large companies. It is a descriptive study using a cross-sectional design. The unit of research consists of the world's 2000 largest companies (champions), as reported by Forbes Global 2000 in 2008 and 2022. Our results indicate that East and South Asia strengthened their significance since the Great Recession, North America remained stable, and other regions, including Western Europe, have weakened due to China's rapid growth. We suggest that focusing only on the country and city levels is misleading, and future research should consider the metropolitan regions instead. Our results might interest economic geography researchers and policymakers as they indicate the relative competitiveness of regions in supporting the emergence and growth of champions.
    Keywords: Geography of IB activities; MNE performance; headquarters' distribution; corporate demographics; Forbes Global 2000
    JEL: F02 F23
    Date: 2023–03
  30. By: Brendon McConnell (University of Southampton); Kegon Teng Kok Tan (University of Rochester); Mariyana Zapryanova (Smith College)
    Abstract: We provide the first evidence of the impact of 9/11 on outcomes for Muslims in the US criminal justice system. We focus on parole outcomes of Muslim men in the state of Georgia, and find that 9/11 led to large declines in the likelihood of being granted parole and a subsequent 23% relative increase in prison time for Muslim inmates. We find that these impacts persisted after 9/11 with similar sized magnitudes. We also examine heterogeneity in the effects by recidivism risk and find suggestive evidence that the effects were larger for higher risk inmates.
    Keywords: parole board, discrimination, terrorist attacks
    JEL: D91 J15
    Date: 2023–03
  31. By: Hideo Akabayashi (Faculty of Economics, Keio University); TIm Ruberg (Department of Economics, University of Hohenheim); Chizuru Shikishima (Department of Psychology, Teikyo University); Jun Yamashita (Faculty of Integrated Arts and Social Sciences, Japan Women's University)
    Abstract: This paper estimates the causal effect of education-oriented vs. care-oriented preschools on child development. We use a unique quasi-experiment from Japan that exploits plausibly exogenous regional and temporal variation in the relative availability of different preschools. We find that attendance at an education-oriented preschool is associated with significant improvements in mathematical and linguistic achievement that manifest later in adolescence. Positive effects can also be found for socioemotional measures. Ascending marginal treatment effect (MTE) curves suggest an inverse selection pattern: children that are least likely to enroll in the education-oriented preschool gain the most from it. This heterogeneity is mainly due to specific features of education-oriented preschools (i.e., educational orientation, shorter operating hours, and peer effects), while gains from enrollment in care-oriented preschools appear more homogeneous.
    Keywords: Early childhood education and care, Child development, IV methods, Marginal treatment effect
    JEL: C26 H75 I26 J13
    Date: 2023–02–27
  32. By: Bouamoud Safae (UM5 - Université Mohammed V de Rabat [Agdal]); Kassaoui Radouane (UM5 - Université Mohammed V de Rabat [Agdal])
    Abstract: Regional public investment gained momentum after the adoption of advanced regionalization, becoming an important research topic and instrument of public policies to reshape the Moroccan political and economic scene. This article analyzes the impact of public investment on economic growth following a regional and spatial logic. The objective of this study is to detect spatial effects in the estimation of Lee and Yu's QMLE by examining the relationship between regional public investment and regional economic growth over the period 2015-2019 based on the principles of spatial econometrics. The results show a marginal or weak effect of regional public investment, while regional employment remains a determining factor of regional economic growth. As for the effects of spatial diffusion, regional GDP remains a better instrument to combat against spatial inequalities.
    Abstract: L'investissement public régional a pris son ampleur après l'adoption de la régionalisation avancée, est devenu un sujet important de recherche et un instrument des politiques publiques pour reconfigurer à nouveau la scène politique et économique marocaine. Cet article analyse l'impact de l'investissement public sur la croissance économique suivant une logique régionale et spatiale. L'objectif de cette étude est de déceler les effets spatiaux dans l'estimation du QMLE de Lee and Yu, ceci nous a conduit à traiter la relation entre l'investissement public régional et la croissance économique régionale sur la période 2015-2019, en se basant effectivement sur les principes de l'économétrie spatiale. Les résultats obtenus montrent un effet marginal voire faible de l'investissement public régional, tandis que l'emploi régional demeure un facteur déterminant de la croissance économique régionale. Quant aux effets de diffusion spatiale, le produit intérieur brut régional reste un meilleur instrument pour lutter contre les inégalités spatiales.
    Keywords: The regional public investment, Regional economic growth, Advanced regionalization, Spatial econometrics in panel data, Spatial spillover effects, L’investissement public régional, La croissance économique régionale, La régionalisation avancée, L’économétrie spatiale en données de panel, Les effets de diffusion spatiale
    Date: 2023–03–07
    Abstract: Public transportation out of suburban or rural areas is crucial. Feeder transportation services offer a solution by transporting passengers to areas where more options for public transport are available. On one hand, fully flexible demand-responsive feeder services efficiently tailor their service to the needs of the passengers. On the other hand, traditional feeder services provide predictability and easier cost control. In this paper, a semi-flexible demand-responsive feeder service is considered, which combines positive characteristics of both traditional services as well as fully flexible services. This feeder service has two types of bus stops: mandatory bus stops and optional bus stops. Mandatory bus stops are guaranteed to be visited by a bus within a certain time interval. Optional stops are only visited when there is demand for transportation nearby. The performance of this feeder service is optimized with the use of a heuristic that combines elements of different metaheuristic frameworks. Experimental results on small benchmark instances indicate that the heuristic performs on average 12.42% better than LocalSolver, a commercial optimization solver, with an average runtime of 2.1s. Larger instances can also be solved, typically within two minutes.
    Keywords: Meta-heuristics, Public bus transport, Feeder service, Demand-responsive transportation
    Date: 2023–02
  34. By: Gupta, Abhimanyu (University of Essex); Kokas, Sotirios (University of Essex); Michaelides, Alexander (Imperial College London); Minetti, Raoul (Michigan State University, Department of Economics)
    Abstract: A large theoretical literature emphasizes financial networks, but empirical studies remain scarce. We exploit the overlapping bank portfolio structure of US syndicated loans to construct a financial network and characterize its evolution over time. Using techniques from spatial econometrics, we find large spillovers in lending conditions from peers’ decisions during normal times: a standard deviation increase in peer lending rates can increase a bank’s lending rate by 17 basis points. However, these spillovers vanish in a large recession. We rationalize these findings through the lens of a model of syndicate lending, where banks’ reliance on private signals rises during recessions.
    Keywords: Financial networks; spillovers; cost of lending; syndicated loan market
    JEL: C31 G21
    Date: 2023–03–03
  35. By: Yaqub, Ohid; Coburn, Josie; Moore, Duncan A.Q.
    Abstract: HIV/AIDS has been a major focus for research funders. The US National Institutes of Health (NIH) alone has spent over $70bn on HIV/AIDS. Such investments ushered in antiviral drugs, helping to reverse a rapidly growing HIV/AIDS pandemic. However, the idea that research can deliver unexpected benefits beyond its targeted field, in fact, predates HIV/AIDS to at least Vannevar Bush’s influential 1945 report. Cross-disease spillovers – research investments that yield benefits beyond the target disease – remains unexplored, even though it could inform both priority-setting and calculations of returns on research investments. To this end, we took a sample of NIH’s HIV grants and examined their publications. We analyzed 118, 493 publications and found that 62% of these were spillovers. We used Medical Subject Headings (MeSH) terms assigned to publications to explore the content of these spillovers, as well as to corroborate non-spillovers. We located spillovers on a network of MeSH co-occurrence, drawn from the broader universe of medical publications, for comparison. We found that HIV spillovers were unevenly distributed across disease-space, and often in close proximity to HIV, which, when discounted, reduced our spillovers estimate to 40%. We further reviewed 1, 000 grant–publication pairs from a local sample and 1, 000 pairs from a remote sample. For local spillovers, a quarter seemed to be unexpected, on the basis of on their grant description; for remote spillovers, that proportion increased to one third. We also found that the NIH funding institutes whose remits were most closely related to HIV/AIDS were less likely to produce spillovers than others. We discuss implications for theory and policy.
    Date: 2023–03–20
  36. By: Robert Lehmann
    Abstract: Accurate real-time macroeconomic data are essential for policy-making and economic nowcasting. In this paper, I introduce a real-time database for German regional economic accounts (READ-GER). The database contains real-time information for nine macroeconomic aggregates and the 16 German states. I conduct both a revision analysis and a nowcasting experiment. Whereas the first estimates show no systematic revision errors by pooling the states together, this procedure suppresses the revision characteristics of single states. For half of the 16 German states I find that the first estimates are no optimal predictions, thus, leaving room for improvements in the future. The real-time nowcasts for real gross domestic product growth based on a mixed-frequency Vector Autoregression are very accurate, beat several benchmark models and are as precise or better as the first official estimates. More regional data would help to further increase the model’s nowcast performance and thus its properties for the first estimates from regional accounts.
    Keywords: regional economic nowcasting, revision analysis, mixed-frequency Vector Autoregression, real-time regional accounts
    JEL: C32 C53 C82 E01 E32 R11
    Date: 2023
  37. By: Guccio, C.; Pignatora, G.; Vidoli, F.
    Abstract: Austerity policies have been widely adopted in advanced countries to reduce public deficits. However, they can have unintended consequences, including negative impacts on population health. In this paper, taking advantage of temporal and geographical discontinuity of regional healthcare recovery plans (RPs) adopted in Italy since 2007 and employing a matching estimator in a discrete spatial non-stationarity framework, the impact of RPs on mortality rates at the municipal level has been tested for the period 2003 to 2018. We find that austerity has had unintentional negative effects on the mortality rate, particularly in peripheral areas and for the most vulnerable population.
    Keywords: austerity; health outcomes; mortality rate; spatial non-stationarity; difference-in-difference;
    JEL: C23 E32 I10 I18
    Date: 2023–03
  38. By: Jean Dubé; François Des Rosiers; Nicolas Devaux
    Abstract: Rising rents, residential reconversions and renovations are placing a segment of the urban population in extremely precarious conditions. One way to help low-income households is to access social housing. However, social housing does not always have a good press, even if most people say they are open to it and in favor of it. It's the "not in my backyard" phenomenon. Many associate the presence of social housing with a change in the socio-economic profile of their neighbourhood and are convinced that it will lower the value of their home. But what does the evidence say? Using Quebec City as a case study, the authors conclude that there is no single and simple answer. La hausse des loyers, les reconversions résidentielles et les rénovictions placent une frange de la population urbaine dans des conditions de précarité extrême. Une façon de venir en aide aux ménages à faibles revenus est l’accès à des logements sociaux. Or, le logement social n’a pas toujours bonne presse même si la plupart des gens s’y disent ouverts et favorables. C’est le phénomène du « pas dans ma cour ». Plusieurs associent la présence de logements sociaux à un changement du profil socio-économique de leur quartier et sont convaincus que cela diminuera la valeur de leur résidence. Mais qu’en disent les données probantes ? En prenant la ville de Québec comme étude de cas, les auteurs concluent qu’il n’existe pas de réponse simple et unique.
    Keywords: Social housing, residential value, densification, urbanization, Accès-Logis, Quebec City, Logements sociaux, valeur résidentielle, densification, urbanisation, Accès-Logis, ville de Québec
    Date: 2023–03–09
  39. By: Hémet, Camille; Wren-Lewis, Liam; Mahoney, Jessica
    Abstract: This paper examines how use of public services changed following a major constitutional reform in Kenya. Following an important period of inter-ethnic conflict, responsibility for local health services was decentralized to 47 newly created county governments. Using an event-study design, we find that use of public clinics for births increased significantly after the reform, but only in counties that were relatively ethnically homogeneous. We also find a significant increase in the correlation between county ethnic fractionalization and a range of other measures of public health service use. Results suggest that services in these counties are less likely to require payments after devolution. Additionally, using within-county variation, we find an increase in public service use among individuals that are of the same ethnicity as the members of the county government executive.
    Date: 2023–03–22
  40. By: Endo Naoki (Graduate School of Economics, Keio University (Graduate student))
    Abstract: Research surrounding prosociality, defined as the ability to promote behaviors that enhance the utility of others, has been one of the most interesting studies in recent years. This is because prosociality is widely defined as one of the non-cognitive abilities, and non-cognitive abilities are attracting attention as abilities that affect socioeconomic characteristics such as children's future education and income (JJ. Heckman, 2006; Elango et al., 2005). There is a high level of interdisciplinary interest in how such prosociality develops and improves. In particular, several existing studies in the field of educational economics have reported a relationship between academic achievement in core subjects and prosociality in countries other than Japan, such as the United States (Wantzel, 1993; Keung, 2003; Penner et al. 2005; Caprara et al. 2015; Maria et al., 2018; Alpona, 2020). These previous studies adopted the mechanism of the influence of prosociality on academic achievement as a theoretical framework but given that prosociality requires the ability to understand others, it is possible that there is a mechanism by which academic achievement influences prosociality. Since one of the goals of Japanese language education in Japan is to enhance the ability to understand others through text reading, it is thought that academic ability in the Japanese language has a sufficient influence on prosociality. However, there have been no studies examining the relationship between academic achievement and prosociality using data from Japan. Also, there are no studies that examine how preference for major subjects is related to the development and improvement of prosociality. Even if academic ability is high, preference for a subject is considered to be an important factor in whether or not the ability learned from that subject is put into practice. Therefore, it is thought that preference for each subject, as well as academic ability, is related to prosociality. Similarly, there is no study that analyzes how the relationship between academic ability, preference, and prosociality changes over a wide range of grades from lower to upper grades. Because the ability to understand others increases with age, we would expect a stronger relationship between academic achievement and prosociality to emerge with increasing age. Therefore, in order to investigate the relationship between academic achievement and preference for Japanese and mathematics and prosociality in Japan, and how these relationships change with increasing age, I conducted regression analysis using JCPS data for grades 1 through 3 (7-15 years old). The results showed that most of the significant relationships between academic achievement and preference for Japanese and arithmetic (mathematics) and prosociality were observed to be positive. On the other hand, significant negative relationships were reported between academic achievement in math (mathematics) and prosociality, which consisted of the question item "be kind to younger children, " in the 5th and 1st grades of elementary school and 1st grade of junior high school. This can be attributed to the fact that children who were sufficiently rationalized by math did not choose prosocial behavior as a means of maximizing their utility, since they could not expect anything in return from younger children. In addition, the independent variable that was most significantly related to each prosociality in each grade was the preference for the Japanese, and a significant positive relationship was found in all analyses. In the multiple regression analysis that included the independent variables of academic ability in reading comprehension and preference for the Japanese, which are considered to have a strong positive relationship with the ability to understand others, with each prosociality as the dependent variable, the other academic ability variables were not significant or contrary to expectations, were significant with a negative coefficient. The multiple regression results suggest that the single regression analysis in this paper, which included only the academic achievement variable and not the preference for the national language, and the results in the previous literature have turned the academic achievement variable into a proxy variable for the preference for the national language. There are three major contributions of this study to prosociality: First, it was the first empirical analysis of the relationship between prosociality and academic achievement in Japan, and compared the results with those of other countries. Although the results of the analysis of the relationship between academic achievement and prosociality in Japan were not significantly different from those of other countries, some of the results of this study suggest that children may choose prosocial behaviors to maximize their own utility, not based on social preferences. Second, this is the first empirical analysis and discussion of the relationship between preference for major subjects and prosociality. The most positive relationship between prosociality and preference for the Japanese language was found in all the analyses conducted at each grade level. Third, the empirical analysis showed differences in the development of prosociality between the subjects and their preferences through the analysis of each grade. The third is that the empirical analysis showed differences in the development of prosociality between subjects and preferences through analysis at each grade level. No special differences were found in the relationship between preference for each subject and prosociality as age increased. Rather, the results showed an increase in non-significant results for academic achievement and prosociality. This result is contrary to the original expectation of this study, and suggests that the academic achievement variable is positively related to the ability to understand others, which is necessary for prosociality, but it is also positively related to tendencies that inhibit prosocial behavior, such as calculated behavior. Therefore, as students move up through the grades and as calculation ability becomes more important, it tends to lose its relationship with prosocial behavior. Future research should explore whether prosociality changes when academic performance changes, and whether the relationship between academic performance and prosociality tends to strengthen with age, even for children younger than first grade.
    Keywords: prosociality, academic achievement, preference, ability to understand others, Perspective-Taking, Personality, Genetics
    JEL: H53 I20 J24
    Date: 2023–03–16
  41. By: David McCune
    Abstract: The November 2022 ranked choice election for District 4 School Director in Oakland, CA, was very interesting from the perspective of social choice theory. The election did not contain a Condorcet winner and exhibited downward and upward monotonicity paradoxes, for example. Furthermore, an error in the settings of the ranked choice tabulation software led to the wrong candidate being declared the winner. This article explores the strange features of this election and places it in the broader context of ranked choice elections in the United States.
    Date: 2023–03
  42. By: Priyaranjan Jha; Karan Talathi
    Abstract: We study the impact of the Indian trade liberalization of 1991 on development at the district level using satellite nighttime lights per capita as a proxy for development. We find that on average trade liberalization increased nighttime lights per capita but there was considerable heterogeneity in the effect. In particular, districts in states with flexible labor laws, districts with better road networks, proximity to the coast, or higher female labor force participation rate seem to have benefited more than other districts.
    Keywords: trade liberalization, nighttime lights, per capita income, tariffs, labor laws
    JEL: F13 F14 O11 O24
    Date: 2023
  43. By: Finocchiaro Castro, Massimo; Guccio, Calogero; Rizzo, Ilde
    Abstract: Public infrastructure procurement is crucial as a prerequisite for public and private investments and for economic and social capital growth. However, low performance in execution severely hinders infrastructure provision and benefits delivery. One of the most sensitive phases in public infrastructure procurement is the design because of the strategic relationship that it potentially creates between procurers and contractors in the execution stage, affecting the costs and the duration of the contract. In this paper, using recent developments in non-parametric frontiers and propensity score matching, we evaluate the performance in the execution of public works in Italy. The analysis provides robust evidence of significant improvement of performance where procurers opt for design and build contracts, which lead to lower transaction costs, allowing contractors to better accommodate the project in the execution. Our findings bear considerable policy implications.
    Keywords: Infrastructure provision, Transaction costs economics, propensity score matching, non-parametric frontiers, public works procurement, performance, design and build contracts
    JEL: H57 D73 O18 C14
    Date: 2023
  44. By: Ray, Srabashi; Hertel, Thomas
    Abstract: Labor is a critical, but often overlooked, input in agriculture. In this paper we develop a theoretical model to demonstrate how agricultural labor market functioning plays a significant role in determining the impact and distributional consequences of conservation policies. We next propose a novel approach to use the theoretical model to explain the impacts of a groundwater conservation policy from a spatially explicit quantitative model comprising 75, 000+ grids within the US. Building on existing literature of gridded agricultural production (Baldos et al. 2020) and local labor markets using Commuting Zones (Fowler, Rhubart, and Jensen 2016b) we develop the SIMPLE-G-CZ model of agricultural production and labor markets. We find that labor market rigidities dampen the effectiveness of conservation policies. Limited labor mobility also results in the conservation policy’s incidence being borne in greater proportion by farm workers, with these impacts varying widely across local labor markets.
    Keywords: International Relations/Trade, International Relations/Trade
    Date: 2022
  45. By: Wilhelmsson, Mats (Department of Real Estate and Construction Management, Royal Institute of Technology); Roos, Henrik (Lantmateriet)
    Abstract: The value of a property tends to decrease over time as it ages, resulting in a reduced ability to generate the same value. Property depreciation is a multifaceted concept that encompasses both technical and economic aspects. The economic life of a property is used to determine its effective age. This study aims to determine the effective age of a selected property by analysing various data related to its condition, including information on maintenance and reinvestment operations. Additionally, the research seeks to investigate whether the year of construction or price level has an impact on the property's effective age. We collected specific data from property owners on the frequency of various maintenance and reinvestment operations, both internal and external, such as the roof, foundation, heating, and kitchen. Our database consists of nearly 10, 000 houses in Sweden sold between the beginning of 2021 and 2022 that are over 30 years old. Our findings demonstrate that even for older properties, there can be a significant decline in value due to ageing. We also observe that property owners' actions, such as maintenance and reinvestments, can affect age-related value decline. By implementing appropriate measures to reduce the property's effective age, the decline in value due to ageing can be mitigated. Hence, policymakers could consider developing policies and incentives to encourage property owners to invest in maintenance and reinvestment measures that can mitigate the effects of ageing on property value.
    Keywords: depreciation; age-related decrease in value; maintenance; effective age; Sweden
    JEL: D46 G51 R30
    Date: 2023–04–06
  46. By: Cseres-Gergely, Zsombor (European Commission); Kecht, Valentin (University of Bonn); Le Blanc, Julia (European Commission); Onorante, Luca (European Commission)
    Abstract: In response to the two waves of Covid-19 in 2020, the Italian government implemented a general lockdown in March, but geographically targeted policies during fall. We exploit this natural experiment to compare the effects of the two policies in a difference-in-differences design, leveraging a unique database combining traditional, municipality-level and big data at weekly frequency. We find that the general lockdown of the first wave strongly reduced mobility at a high price in terms of employment, while the targeted policies during the second wave induced a lower decrease in mobility and little additional economic cost. We also study the role of pre-existing municipality characteristics and labour market policies in shaping these responses. Our results suggest that working from home and short-term work schemes buffered the adverse consequences of the drop in economic activity on the labour market. Both mechanisms, however, acted more strongly in high-income areas and among white collar workers, exacerbating existing inequalities.
    Keywords: Covid-19, human mobility, lockdowns, big data, differences-in-differences
    JEL: I12 I18 H12 D04 C33 H51
    Date: 2023–02
  47. By: González-Bustamante, Bastián (Universidad de Santiago de Chile (USACH)); Aguilar, Diego
    Abstract: This article analyses the development of open e-government between 2019 and 2021 in Chile’s 345 municipalities. We aggregated an e-government index (EGi) to measure the provision of local digital services for citizens. We then combined this with indicators of transparency and access to public information to create an open e-government index (OEGi). Our empirical strategy is based on geospatial econometric analysis in two stages: first, we describe and georeference our index, estimating the level of spatial autocorrelation and then fit different econometric models to measure the impact of the degree of Internet use, socioeconomic dynamism and management capacity on the municipalities’ development of open e-government. Our main findings indicate that monetary poverty has a negative effect on the index, while the municipal government’s budget has a positive effect.
    Date: 2023–03–19
  48. By: GOODWIN-HAWKINS Bryonny; GUZZO Fabrizio (European Commission - JRC); MERIDA MARTIN Fernando (European Commission - JRC); SASSO Simone (European Commission - JRC)
    Abstract: The European Commission’s long-term vision for the EU’s rural areas identifies several areas of action towards stronger, connected, resilient and prosperous rural areas and communities by 2040. A flagship action on research and innovation aims to help tackle the challenges towards fulfilling rural potential. An annual Startup Village Forum is part of this action. The Forum intends to promote knowledge exchange and cooperation activities and to work as an open and inclusive space where institutions and stakeholders can meet, discuss and shape actions for startup-driven innovation in rural areas. Drawing upon the scientific literature, in this report we develop the Startup Village concept and define it as "A place (or a network of small places) that embraces innovation and ambitious entrepreneurship as a way to unlock development potential and support wellbeing in rural areas". Next, we explore the key enabling factors of Startup Villages- discussing in particular the pivotal role played by the ecosystem in enabling innovation and entrepreneurship - and outline the Startup Village Forum’s facilitating role.
    Keywords: rural innovative entrepreneurship, rural innovation, rural entrepreneurship, rural development, rural areas, growth, startups, SMEs, innovation ecosystem, RDI, Research, Technology and Innovation
    Date: 2023–02
  49. By: Randolph, Hannah
    Abstract: A number of developing countries use land expropriation policies to expand cities and develop peri-urban areas. In China alone, an average of 1, 600 square kilometers were expropriated annually between 2004 and 2018. The impact of this urban development strategy on expropriated households is not well-understood. I estimate the causal effect of expropriation on Chinese households' livelihood choice and earned income, relying on panel data and comparison to non-expropriated households to observe how household-level outcomes change in response to expropriation. Controlling for baseline outcomes, I find that for at least the first two years, expropriation reduces household agricultural participation and production but does not increase other types of income-generating activities. The result is reduced food security and ability to earn income. Compensation paid to households does not fully offset these effects in cases where households lose all their land or are uncompensated. These findings suggest concrete policies governments can implement to lessen the negative welfare impacts of urban development on expropriated households: higher compensation rates, development of rural non-agricultural labor markets, and direct food assistance to expropriated households.
    Keywords: Land rights, Land expropriation, Household welfare, China
    JEL: H13 O15 Q15
    Date: 2023–03–03
  50. By: Laura D. Quinby; Gal Wettstein
    Abstract: This paper uses the Health and Retirement Study to explore how local cost-of-living affects Social Security replacement rates and household behavior. In theory, labor markets with high cost-of-living also offer more compensation. If this compensating differential is paid in wages, rather than benefits, it reduces the share of earnings replaced by Social Security due to the progressive benefit structure. This paper examines how important the cost-of-living penalty is, in practice, and whether it impacts households’ saving or labor supply.
    Date: 2022–11
  51. By: Pascal Michaillat
    Abstract: Immigrants are always accused of stealing people's jobs. Yet, in a neoclassical model of the labor market, there are jobs for everybody and no jobs to steal. (There is no unemployment, so anybody who wants to work can work.) In standard matching models, there is some unemployment, but labor demand is perfectly elastic so new entrants into the labor force are absorbed without affecting jobseekers' prospects. Once again, no jobs are stolen when immigrants arrive. This paper shows that in a matching model with job rationing, in contrast, the entry of immigrants reduces the employment rate of native workers. Moreover, the reduction in employment rate is sharper when the labor market is depressed -- because jobs are more scarce then. Because immigration reduces labor-market tightness, it makes it easier for firms to recruit and improves firm profits. The overall effect of immigration on native welfare depends on the state of the labor market. It is always negative when the labor market is inefficiently slack, but some immigration improves welfare when the labor market is inefficiently tight.
    Date: 2023–03
  52. By: Hillberry, Russell; Nguyen, Nhu
    Abstract: The rapid growth of utility-scale wind energy generation is a potentially important boon to rural economies in the United States. Yet econometric estimates suggest that the local economic benefits of wind energy generation have been modest, perhaps because the sector is capital-intensive and financed almost exclusively by external capital. In this paper we argue that a) both the presence of a critical - but unpaid - factor of production (the wind) and generous federal subsidies are quantitatively important sources of economic rent, and b) a large portion of these rents accrue to providers of capital who reside outside the local economy. We build a partial equilibrium model that illustrates the mechanisms that generate economic rent, and integrate it into a small open economy general equilibrium model of a county’s economy. We calibrate the partial and general equilibrium models to data from two rural counties in Indiana, quantify the economic rents, and consider the consequences of a resource rent tax. Resource rent taxes generate significantly larger economic benefits for communities that host wind power, and offer an opportunity to spread the sector’s economic benefits more broadly within them. Broadly distributed revenues from resource rent taxes might facilitate greater acceptance of utility scale wind power in communities where the sector would otherwise be unwelcome. State public utility commissions provide an analytical infrastructure that could support local taxation of the kind that we consider.
    Keywords: Land Economics/Use, Agricultural and Food Policy
    Date: 2022
  53. By: Guglielmo Maria Caporale; Nicola Spagnolo
    Abstract: This paper examines mean and volatility spillovers between four green municipal bonds issued by the US states of California, Colorado, Columbia and Ohio, and the role played by the recent Covid-19 pandemic and the COP policy announcements respectively. Specifically, four-variate VAR-GARCH-BEKK models are estimated which include suitably defined dummies corresponding to those events. Significant dynamic linkages (interdependence) between the four municipal bonds under investigation are found in some cases. Moreover, there is evidence of shifts in the second moment parameters coinciding with the Covid-19 pandemic (contagion), whilst the COP policy announcements do not appear to affect the transmission mechanism between municipal green bond returns and volatilities. On the whole, the evidence suggests weaker linkages, and thus a lower degree of financial integration (and greater portfolio diversification opportunities), during the Covid-19 period, though this is likely to be only a temporary phenomenon.
    Keywords: municipal bonds, financial integration, spillovers, multivariate GARCH-BEKK, volatility
    JEL: C32 G12 G32
    Date: 2023
  54. By: Huepe, Mariana; Palma, Amalia; Trucco
    Abstract: The COVID-19 pandemic has meant a prolonged economic and social crisis in Latin America and the Caribbean, with profound consequences on the population’s well-being and a silent and devastating impact on education. The abrupt transition to distance learning, with one of the most extended school closures in the world, has had an unequal impact and highlighted pre-existing gaps in the region. The crisis has resulted in paradigm shifts, innovations and lessons learned concerning adapting to remote education, which impede education systems from returning to how things were and force them to restructure to be more resilient and inclusive.
    Date: 2023–03–30
  55. By: Fabien Gensbittel (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse 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); Marcin Peski (University of Toronto); Jérôme Renault (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse 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)
    Abstract: We define the distance between two information structures as the largest possible difference in value across all zero-sum games. We provide a tractable characterization of distance and use it to discuss the relation between the value of information in games versus single-agent problems, the value of additional information, informational substitutes, complements, or joint information. The convergence to a countable information structure under value-based distance is equivalent to the weak convergence of belief hierarchies, implying, among other things, that for zero-sum games, approximate knowledge is equivalent to common knowledge. At the same time, the space of information structures under the value-based distance is large: there exists a sequence of information structures where players acquire increasingly more information, and ε > 0 such that any two elements of the sequence have distance of at least ε. This result answers by the negative the second (and last unsolved) of the three problems posed by J.F. Mertens in his paper Repeated Games , ICM 1986.
    Date: 2022
  56. By: Natsuki Arai; Masashige Hamano; Munechika Katayama; Yuki Murakami; Katsunori Yamada
    Abstract: We quantify the impact of unexpectedly assigned tasks on overtime work in the context of Japanese government officials. Data on overtime work are typically less reliable. We overcome this problem by using mobile phone location data, which enables us to precisely measure the nighttime population in the government-office district in Tokyo at an hourly frequency. Exploiting the exogenous nature of task arrivals, we estimate impacts on overtime work. We find that, in response to a newly assigned task, overtime work initially decreases and then increases persistently. Institutional changes to relax the time constraint and improve the working environment of government officials play a part in mitigating overtime work, but persistent increases in overtime work remain. We provide a simple model of optimal work allocation and show that distortion in intertemporal task allocation can account for the observed responses.
    Date: 2023–03

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