nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2023‒05‒29
57 papers chosen by
Steve Ross
University of Connecticut

  1. The Economics of Cities: From Theory to Data By Stephen Redding
  2. School Closures and Student Achievement, Evidence from a High Stakes Exam By Riudavets-Barcons, Marc; Uusitalo, Roope
  3. Second-Hand Gentrification: Theory and Evidence from High-Speed Rail Extensions By Gabriel Loumeau; Antonio Russo
  4. A house price-at-risk model to monitor the downside risk for the spanish housing market By Gergely Ganics; María Rodríguez-Moreno
  5. Local labour markets and spatial determinants of overeducation By Florian Fouquet
  6. First generation elite: the role of school networks By Sarah Cattan; Kjell G. Salvanes; Emma Tominey
  7. Robust labour-flow networks of industries make resilient regions By Zoltan Elekes; Gergo Toth; Rikard Eriksson
  8. Urban house price gradients in the post-COVID-19 era By Volker Ziemann; Manuel Bétin; Alexandre Banquet; Rudiger Ahrend; Boris Cournède; Maria Paula Caldas; Marcos Diaz Ramirez; Pierre-Alain Pionnier; Daniel Sanchez-Serra; Paolo Veneri
  9. School Quality Beyond Test Scores: the Role of Schools in Shaping Educational Outcomes By Annalisa Loviglio
  10. Spatial mobility and overeducation of young workers: New evidence from France By Florian Fouquet; Florent Sari
  11. The Evolution of Local Labor Markets After Recessions By Brad Hershbein; Bryan Stuart
  12. More than Chance: The Local Labor Market Effects of Tribal Gaming By Laurel Wheeler
  13. Strong(er) Mayors in Ontario – What Difference Will They Make? By Zack Taylor; Karen Chapple; Matt Elliott; Alison Smith; Gabriel Eidelman
  14. University as a Knowledge Source of Innovation: A spatial analysis of the impact on local high-tech startup creation By MOTOHASHI Kazuyuki; ZHAO Qiuhan
  15. What's at Stake? Understanding the Role of Home Equity in Flood Insurance Demand By Liao, Yanjun (Penny); Mulder, Philip
  16. Mapping local economic recovery paths using pedestrian counts. A City of Melbourne Case Study. By de Silva, Ashton J; Yanotti, Maria; Sinclair, Sarah; Angelopoulos, Sveta; Navon, Yonatan
  17. The Path of Student Learning Delay During the COVID-19 Pandemic: Evidence from Michigan By Katharine O. Strunk; Bryant G. Hopkins; Tara Kilbride; Scott A. Imberman; Dongming Yu
  18. A novel research strategy of measuring housing disadvantages of vulnerable populations for all income levels: the Propensity Score Matching approach. By Heijs, Joost; Cruz-Calderón, Selene Cruz
  19. Left-behind versus unequal places: interpersonal inequality, economic decline, and the rise of populism in the USA and Europe By Rodríguez-Pose, Andrés; Terrero-Davila, Javier; Lee, Neil
  20. Traditional Institutions in Modern Times: Dowries as Pensions When Sons Migrate By Natalie Bau; Gaurav Khanna; Corinne Low; Alessandra Voena
  21. Health Implications of Building Retrofits: Evidence from a Population-Wide Weatherization Program By Steffen Künn; Juan Palacios
  22. Driving, Dropouts, and Drive-Throughs: Mobility Restrictions and Teen Human Capita By Valerie Bostwick; Christopher Severen
  23. The Impact of Industrial Zone:Evidence from China's National High-tech Zone Policy By Li Han
  24. A nation-wide experiment, part II: the introduction of a 49-Euro-per-month travel pass in Germany -- An empirical study on this fare innovation By Allister Loder; Fabienne Cantner; Lennart Adenaw; Markus B. Siewert; Sebastian Goerg; Klaus Bogenberger
  25. How Local are the Local Economic Impacts of Wildfires? By Walls, Margaret A.; Wibbenmeyer, Matthew
  26. Mortgage Borrowing Caps: Leverage, Default, and Welfare By Leonor Queiró; João G. Oliveira
  27. From Regional to Global and Back Again? A Future Agenda for Regional Evolution and (De)Globalized Production Networks in Regional Studies By Henry Wai-chung; ;
  28. Road Traffic Flow and Air Pollution Concentrations: Evidence from Japan By NISHITATENO Shuhei; Paul J. BURKE; ARIMURA Toshi H.
  29. Parental and Student Time Use Around the Academic Year By Benjamin W. Cowan; Todd R. Jones; Jeffrey M. Swigert
  30. Government Spending and Tax Revenue Decentralization and Public Sector Efficiency: Do Natural Disasters matter? By António Afonso; João Tovar Jalles; Ana Venâncio
  31. Agglomeration with the Declining Marshallian Agglomeration Economies:An inquiry into the postwar development of the Nada sake brewing district in Japan By Yuya Aikawa; Tomoko Hashino; Keijiro Otsuka
  32. The Mortality Effects of Winter Heating Prices By Janjala Chirakijja; Seema Jayachandran; Pinchuan Ong
  33. Forecasting CPI Shelter under Falling Market-Rent Growth By Christopher D. Cotton; John O'Shea
  34. Testing Random Assignment To Peer Groups By Koen Jochmans
  35. Remarks at the New York Bankers Association Hudson Valley Regional Meeting By Dianne Dobbeck
  36. Where Do STEM Graduates Stem From? The Intergenerational Transmission of Comparative Skill Advantages By Eric A. Hanushek; Babs Jacobs; Guido Schwerdt; Rolf van der Velden; Stan Vermeulen; Simon Wiederhold
  37. Catching up on lost learning opportunities: Research and policy evidence on key learning recovery strategies By Andreea Minea-Pic
  38. Estimating Input Coefficients for Regional Input-Output Tables Using Deep Learning with Mixup By Shogo Fukui
  39. Financial Inclusion, Economic Development, and Inequality: Evidence from Brazil By Julia Fonseca; Adrien Matray
  40. Jobs at Risk: Sea Level Rise, Coastal Flooding, and Local Economies By Walls, Margaret A.; Ferreira, Celso; Liao, Yanjun (Penny); Pesek, Sophie
  41. Holding the Door Slightly Open: Germany’s Migrants’ Return Intentions and Realizations By Hend Sallam
  42. Rate-optimal cluster-randomized designs for spatial interference By Leung, Michael P
  43. What Contributes to Rising Inequality in Large Cities? By Luis Ayala; Javier Mart n-Rom n; Juan Vicente
  45. Getting Schooled: The Role of Universities in Attracting Immigrant Entrepreneurs By Natee Amornsiripanitch; Paul Gompers; George Hu; Kaushik Vasudevan
  46. Modeling the Complexity of City Logistics Systems for Sustainability By Taiwo Adetiloye; Anjali Awasthi
  47. What draws investment to special economic zones? Lessons from developing countries By Frick, Susanne; Rodríguez-Pose, Andrés
  48. Commoning with Henri Lefebvre By Juskowiak, Piotr
  49. Unexpected Colonial Returns: Self-Selection and Economic Integration of Migrants over Multiple Generations By Gielen, Anne C.; Webbink, Dinand
  50. Cultural Integration of First-Generation Immigrants: Evidence from European Union Countries By Giovanis, Eleftherios; Akdede, Sacit Hadi
  51. Teaching Self-Regulation By Daniel Schunk; Eva M. Berger; Henning Hermes; Kirsten Winkel; Ernst Fehr
  52. When Crime Tears Communities Apart: Social Capital and Organised Crime By Calamunci, Francesca Maria; Frattini, Federico Fabio
  53. Cooperation and Cognition in Social Networks By Edoardo Gallo; Joseph Lee; Yohanes Eko Riyanto; Erwin Wong
  54. Shutting Down to Save Lives: A Regression Discontinuity Analysis of Non-Essential Business Closure By Pérez, A.F.; Pedrazas, A.M.; Gaggero, A.
  55. Racial and income-based affirmative action in higher education admissions: lessons from the Brazilian experience By Rodrigo Zeidan; Silvio Luiz de Almeida; In\'acio B\'o; Neil Lewis Jr
  56. "How Does Flood Affect Children Differently? The Impact of Flood on Children’s Education, Labor, Food Consumption, and Cognitive Development" By Chinh T. Mai; Akira Hibiki
  57. Applications or Approvals: What Drives Racial Disparities in the Paycheck Protection Program? By Sergey Chernenko; Nathan Kaplan; Asani Sarkar; David S. Scharfstein

  1. By: Stephen Redding (Princeton University, NBER, and CEPR)
    Abstract: Economic activity is highly unevenly distributed within cities, as reflected in the concentration of economic functions in specific locations, such as finance in the Square Mile in London. The extent to which this concentration reflects natural advantages versus agglomeration forces is central to a range of public policy issues, including the impact of local taxation and transport infrastructure improvements. This paper reviews recent quantitative urban models, which incorporate both differences in natural advantages and agglomeration forces, and can be taken directly to observed data on cities. We show that these models can be used to estimate the strength of agglomeration forces and evaluate the impact of transportation infrastructure improvements on welfare and the spatial distribution of economic activity.
    Keywords: cities, commuting, transportation, urban economics
    JEL: R32 R41 R52
    Date: 2023–01
  2. By: Riudavets-Barcons, Marc (University of Helsinki); Uusitalo, Roope (University of Helsinki)
    Abstract: We study the effect of school closures and the transition from on-site to on-line teaching during the Covid-19 pandemic in the Finnish upper secondary schools. To identify the effects we exploit variation in the length of school closure periods across schools between autumn 2020 and spring 2021. Using a difference-in-difference design, we show that the students who studied on-line for longer periods performed equally well in the Matriculation exam at the end of upper-secondary education than the students who experienced shorter school closures. Moreover, we show that inequalities across Finnish students from different socioeconomic backgrounds did not exacerbate during this period.
    Keywords: school closures, online teaching, test scores, COVID-19
    JEL: I21 I24 I28
    Date: 2023–04
  3. By: Gabriel Loumeau (Department of Spatial Economics, VU Amsterdam, The Netherlands.); Antonio Russo (Department of Economics, University of Sheffield, Sheffield S1 4DT, UK.)
    Abstract: Does gentrification spread along intercity transport connections? We consider a model with heterogeneous individuals populating a primary and a secondary city. By reducing intercity commuting costs, transport connections induce mi- gration of skilled individuals towards the secondary city, which increases housing prices. We call this effect second-hand gentrification. We confirm these predictions using the 2017 expansion of the French HSR network from Paris to Bordeaux and Rennes. We find that the HSR connection induced skilled Parisians to move to Bordeaux and Rennes. Housing prices there consequently increased (+10.6%), as well as the median income (+2.5%), and within-neighborhood income inequality (+2%).
    Keywords: Gentrification, High-Speed Rail, Housing Market, Intercity Travel
    JEL: R23 R11 R41
    Date: 2023–05
  4. By: Gergely Ganics (Banco de España); María Rodríguez-Moreno (Banco de España)
    Abstract: We present a house price-at-risk (HaR) model that fits the historical developments in the Spanish housing market. By means of quantile regressions we show that a model including quarterly real house price growth, a misalignment measure and a consumer confidence index is able to accurately forecast the developments in the Spanish housing market up to two years ahead. We also show how the HaR model can be used to monitor the downside risk.
    Keywords: house price-at-risk, house prices, quantile regressions
    JEL: C31 E37 G01 R31
    Date: 2022–12
  5. By: Florian Fouquet (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - ONIRIS - École nationale vétérinaire, agroalimentaire et de l'alimentation Nantes-Atlantique - IMT Atlantique - IMT Atlantique - IMT - Institut Mines-Télécom [Paris] - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université - IUML - FR 3473 Institut universitaire Mer et Littoral - UM - Le Mans Université - UA - Université d'Angers - UBS - Université de Bretagne Sud - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - CNRS - Centre National de la Recherche Scientifique - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université - Nantes Univ - ECN - École Centrale de Nantes - Nantes Univ - Nantes Université)
    Abstract: This paper investigates the spatial dimension of overeducation and its incidence on local labour markets. Spatial Durbin panel models, using both static and dynamic specifications, are run on French employment areas between 2009 and 2017. I find that the lack of job opportunities affects overeducation both locally in the neighbouring areas. I also find that the geography of local labour markets does not have the same impact on educational mismatch for all workers, with young workers being less affected by the situation in other areas. Finally, I find that overeducation is related to opportunities in rural areas, and to competition in urban areas.
    Keywords: Spatial heterogeneity, Spatial panel models, Overeducation, Educational mismatches, Local labour markets
    Date: 2023–02
  6. By: Sarah Cattan (Institute for Fiscal Studies); Kjell G. Salvanes (Norwegian School of Economics); Emma Tominey (University of York)
    Abstract: High school students from non-elite backgrounds are less likely to have peers with elite educated parents than their elite counterparts in Norway. We show this difference in social capital is a key driver of the high intergenerational persistence in elite education. We identify a positive elite peer effect on enrolment in elite programmes and disentangle underlying mechanisms. Exploiting a lottery in the assessment system, a causal mediation analysis shows the overall positive peer effect reflects a positive effect on application behaviour (conditional on GPA), which dominates a negative effect on student GPA. We consider implications for income mobility finding that encouraging further mixing between elite and non-elite students in high school could improve mobility across the whole distribution.
    Keywords: Peers, Elite university, Subject choice, Social mobility, Teacher bias
    JEL: I24 J24 J62
    Date: 2023–05
  7. By: Zoltan Elekes; Gergo Toth; Rikard Eriksson
    Abstract: This paper explores how the network structure of local inter-industry labour flows relates to regional economic resilience across 72 local labour markets in Sweden. Drawing on recent advancements in network science we stress-test these networks against the sequential elimination of their nodes, finding substantial heterogeneity in network robustness across regions. Regression analysis with LASSO selection in the context of the 2008 crisis indicates that labour flow network robustness is a prominent structural predictor of employment change during crisis. These findings elaborate on how variation in the self-organisation of regional economies as complex systems makes for more or less resilient regions.
    Keywords: local capability base; inter-industry labour flows; skill-relatedness; network robustness; regional economic resilience; regional employment
    JEL: J21 L14 R11 R23
    Date: 2023–05
  8. By: Volker Ziemann; Manuel Bétin; Alexandre Banquet; Rudiger Ahrend; Boris Cournède; Maria Paula Caldas; Marcos Diaz Ramirez; Pierre-Alain Pionnier; Daniel Sanchez-Serra; Paolo Veneri
    Abstract: The COVID-19 pandemic has led to a significant shift in the way people work, with an increasing number of individuals opting to work from home. Fewer commutes allow people to live further away from the city centre, where jobs typically concentrate. Against this background, this paper tests the hypothesis of a shift in housing demand away from the city centre towards the suburbs using a novel granular house price data set covering 16 OECD countries. The results indicate a flattening of the house price gradients in most large urban areas with profound consequences for housing policies and the city of the future.
    Keywords: COVID-19, digitisation, geospatial economics, housing, teleworking, working from home
    JEL: R31 O18
    Date: 2023–05–12
  9. By: Annalisa Loviglio
    Abstract: I study how schools impact student performance and educational attainment throughout secondary education, and show that school quality cannot be easily captured by any type of rankings because students with differing characteristics and abilities benefit from different school inputs. To do so, I estimate a dynamic structural model of cognitive skills accumulation and schooling decision using rich administrative data from middle schools in Barcelona. I then simulate the outcomes that each student would have achieved in every school in the sample. Notably, the school environment has a crucial impact on the educational attainment of students from less advantaged family background and low-ability students who are at greater risk of leaving school. Moreover, the schools that would yield the highest final test scores for these students – provided they do not drop out – are not the ones that would maximize their likelihood of graduating and enrolling in further education. The results suggest that evaluating and comparing schools using only standardized assessments is insufficient for serving the needs of disadvantaged students, who require schools that enhance educational attainment rather than just test scores.
    JEL: I20 J24 C35
    Date: 2023–03
  10. By: Florian Fouquet (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - ONIRIS - École nationale vétérinaire, agroalimentaire et de l'alimentation Nantes-Atlantique - IMT Atlantique - IMT Atlantique - IMT - Institut Mines-Télécom [Paris] - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université - IUML - FR 3473 Institut universitaire Mer et Littoral - UM - Le Mans Université - UA - Université d'Angers - UBS - Université de Bretagne Sud - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - CNRS - Centre National de la Recherche Scientifique - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université - Nantes Univ - ECN - École Centrale de Nantes - Nantes Univ - Nantes Université); Florent Sari (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel)
    Abstract: This paper explores the influence of spatial mobility on the risk of overeducation of French young workers. We mobilise a survey that follows a cohort of young people who graduated in 2010 until 2013. The effect of residential migration on the probability of being overeducated is estimated through linear probability models. Our analysis deals with self-selection into employment and endogeneity of mobility decision by combining Heckman procedure and instrumental variables method. Estimated results reveal that regional migration decreases the risk of (statistical and subjective) overeducation. We also evidence differentiated effects for migration to Paris and/or according to the educational level.
    Keywords: Overeducation, Educational mismatches, Spatial mobility, Migration, Employment
    Date: 2023–03
  11. By: Brad Hershbein; Bryan Stuart
    Abstract: This paper studies how U.S. local labor markets respond to employment losses after recessions. Following each recession between 1973 and 2009, we find that areas that lose more jobs during the recession experience persistent relative declines in employment and population. Most importantly and contrary to prior work, these local labor markets also experience persistent decreases in the employment-population ratio and per capita earnings. Our results imply that limited population responses result in longer-lasting consequences for local labor markets than previously thought, and that recessions are followed by persistent reallocation of employment across space.
    Keywords: local labor markets; recessions; employment rates; migration
    JEL: J21 J61 R23
    Date: 2022–05–09
  12. By: Laurel Wheeler
    Abstract: Casino-style gaming is an important economic development strategy for many American Indian tribes throughout the United States. Using confidential Census microdata and a database of tribal government-owned casinos, I examine the local labor market effects of tribal gaming on different markets, over different time horizons, and for different subgroups. I find that tribal gaming is responsible for sustained improvements in employment and wages on reservations and that American Indians benefit the most. I also find that tribal gaming increases the average rental price of housing but by an amount smaller than the average wage increase, suggesting net local benefits.
    JEL: R23 R58 J40 J15 L83
    Date: 2023–04
  13. By: Zack Taylor; Karen Chapple; Matt Elliott; Alison Smith; Gabriel Eidelman (University of Toronto)
    Abstract: On October 19, 2022, IMFG convened a public panel discussion titled “Strong(er) Mayors – What Difference Will They Make?” The speakers were Karen Chapple, director of the School of Cities at the University of Toronto; City Hall journalist Matt Elliott; Alison Smith, assistant professor of political science at the University of Toronto; and Gabriel Eidelman, assistant professor, teaching stream, at the Munk School of Global Affairs and Public Policy at the University of Toronto. The panel was moderated by Zack Taylor, associate professor of political science at Western University. The discussion and follow-up questions by the audience brought to the surface a variety of perspectives, both for and against the “strong mayor” provisions of the Strong Mayors, Building Homes Act passed by the Ontario legislature on September 8, 2022. This commentary contextualizes and summarizes the speakers’ remarks. It also takes account of the additional provisions in the Better Municipal Governance Act passed on December 8, 2022, and the February 17, 2023, resignation of Mayor John Tory. The invited speakers provided insights on specific aspects of the law and their implications. Karen Chapple discussed the inspiration for the reform, American “strong mayor” cities. Matt Elliot probed how the relationship between the mayor and councillors might change. Alison Smith talked about the provincial-municipal intergovernmental relationship and the politics of housing policy. Finally, Gabriel Eidelman examines the implications of the change for the relationship between elected officials and professional administrative staff. Zack Taylor provides context for the discussion and, in his conclusion, addresses questions such as the risk of politicizing the public service, the implications for small and regional municipalities, and the role of the province.
    Keywords: strong mayor, local democracy, Toronto, Ontario, mayor
    JEL: H70 H79
    Date: 2023–05
  14. By: MOTOHASHI Kazuyuki; ZHAO Qiuhan
    Abstract: This study contributes to the empirical analysis of specific distances in knowledge spillover effects. We propose a geographical distance-based approach to precisely measure the proximity of knowledge spillover from a university's research activities to high-tech startups in surrounding regions. Most current research measuring knowledge spillover typically use states and cities as the statistical caliber, making it difficult to capture the exact extent of knowledge spillover within cities. In this study, we constructed panel data for Japan for 1998-2018 by dividing the research area into 1*1 km2 meshes and geocoding firms (high-tech startups and firms without patents), university patents, and paper data, and subsequently using each mesh as the basic unit. Additionally, variables containing geographical proximity information were calculated by constructing multiple buffers for each mesh. Our findings show that i) the spillover effects of university research attenuate with distance - rapidly within a 2 km range, and slowly thereafter; and ii) patents are more private and localized than papers. The knowledge spillover effect of university patents attenuates more rapidly with distance.
    Date: 2023–04
  15. By: Liao, Yanjun (Penny) (Resources for the Future); Mulder, Philip
    Abstract: Millions of properties are exposed to increasing threats from natural disasters. Yet, many at-risk homes are uninsured against the costliest disaster: flooding. We show that low home equity is an important driver of low flood insurance take-up. To isolate the causal effect of home equity on flood insurance demand, we exploit price changes over the housing boom and bust. Insurance take-up follows house price dynamics closely, with a home price elasticity around 0.3. Multiple mechanism tests suggest that mortgage default acts as implicit disaster insurance. As a result, households do not fully internalize their disaster risk.Click "Download" above to read the full paper.
    Date: 2021–08–17
  16. By: de Silva, Ashton J; Yanotti, Maria; Sinclair, Sarah; Angelopoulos, Sveta; Navon, Yonatan
    Abstract: National Economic indicators are important. However, they may portray an incomplete and misleading picture of localised urban economies. In this study, we explore features of the patterns and dynamics of localised economies with a particular focus on examining economic recovery paths from the Covid-19 pandemic. Exploring the definition, identity and measurement of local economies and using the City of Melbourne as a case study, we interrogate the potential use of Pedestrian Counts to indicate current and future economic activity. We illustrate how pedestrian counts are available in real-time at high frequencies and can provide an opportunity to gauge real-time and forecast patterns in local-level economic activity.
    Keywords: Local Economic Activity, Pedestrian Counts, Footfall, COVID-19
    JEL: R00 R38 R5
    Date: 2023–04–07
  17. By: Katharine O. Strunk; Bryant G. Hopkins; Tara Kilbride; Scott A. Imberman; Dongming Yu
    Abstract: Educators and policymakers have been concerned that the COVID-19 pandemic has led to substantial delays in learning due to disruptions, anxiety, and remote schooling. We study student achievement patterns over the pandemic using a combination of state summative and higher frequency benchmark assessments for middle school students in Michigan. Comparing pre-pandemic to post-pandemic cohorts we find that math and ELA achievement growth dropped by 0.22, and 0.03 standard deviations more than expected, respectively, between 2019 and 2022. These drops were larger for Black, Latino, and economically disadvantaged students, as well as students in districts that were at least partially remote in 2021-22. Benchmark assessment results are consistent with summative assessments and show sharp drops in 2020-21 followed by a partial recovery and potential stall-out in 2021-22.
    JEL: I10 I20
    Date: 2023–04
  18. By: Heijs, Joost; Cruz-Calderón, Selene Cruz
    Abstract: Housing is an important inclusion factor that reflects the degree of stability of vulnerable groups in terms of ethnic or racial origin, who face several difficulties to access good housing. Many studies focused on the marginalisation of this social groups identifying important problems and policy recommendations. Though, there is still plenty of opportunity to broaden the scope of the existing evidence. We propose an analytical framework that solve one of the main methodological problems of the existing studies: the selection bias. The proposed the Propensity Score Matching (PSM) technique in combination with the use of a housing quality indicator (HQI) with a continuous numeric scale. This combination offers several possibilities to tinge the results of former studies. The PSM method isolates that part of the difference in housing quality—defined here as the housing quality gap (HQG)—of the vulnerable people that is directly caused by their ethnic or racial origin from the fraction generated by other structural socio-economic differences between them and the rest of the Mexican population. In other words, it assesses whether the poorest vulnerable individuals suffer the same level of disadvantages as the non-vulnerable in the same socio-economic situation. To broaden the scope of existing studies we quantify the size of the HQ gap for each vulnerable person, to identify the profile of those who have a larger HQ gap than others considering not only the most common aspects (sex, age, educational level, household income) but also some characteristics barely used (housing tenure, participation in public social program, mental of physical disabilities, remittances, housing loan, etc.). This approach permits to study not only the poorest sectors of the population, though we can analyse whether members of the vulnerable population in terms of ethnic or racial origin with higher income levels also suffer worse housing conditions due to their vulnerability and create the corresponding profile of the most affected. Analysing the Mexican situation for the indigenous population and Afro-Mexican, we observed a negative gap for indigenous people, being wider for elderly, renters, single parents, those with higher educational level, those living in the so-called vecindades (poor multi-family dwellings) or house with no floor covering and those residing in the Central City or the largest localities. The model evaluates also some barely used aspects that intersect with ethnic vulnerability showing a wider gap for native speakers and those with physical or mental disabilities.
    Keywords: Housing Quality Gap, Propensity Score Matching, indigenous people, Profile
    JEL: F22 J15 R21
    Date: 2023–02–27
  19. By: Rodríguez-Pose, Andrés; Terrero-Davila, Javier; Lee, Neil
    Abstract: Economic change over the past twenty years has rendered many individuals and territories vulnerable, leading to greater interpersonal and interterritorial inequality. This rising inequality is seen as a root cause of populism. Yet, there is no comparative evidence as to whether this discontent is the consequence of localised interpersonal inequality or stagnant growth in ‘left-behind’ places. This paper assesses the association between levels and changes in local GDP per capita and interpersonal inequality, and the rise of far-right populism in Europe and in the US. The analysis —conducted at small region level for Europe and county level for the US— shows that there are both similarities and differences in the factors connected to populist voting on both sides of the Atlantic. In the US, neither interpersonal inequality nor economic decline can explain populist support on their own. However, these factors gain significance when considered together with the racial composition of the area. Counties with a large share of white population where economic growth has been stagnant and where inequalities have increased supported Donald Trump. Meanwhile, counties with a similar economic trajectory but with a higher share of minorities shunned populism. In Europe, the most significant factor behind the rise of far-right populism is economic decline. This effect is particularly large in areas with a high share of immigration.
    Keywords: populism; anti-system voting; interpersonal inequality; interterritorial inequality; economic growth; Europe; US
    JEL: D31 D72 R11
    Date: 2023–04–17
  20. By: Natalie Bau; Gaurav Khanna; Corinne Low; Alessandra Voena
    Abstract: This paper examines whether an important cultural institution in India - dowry - can enable male migration by increasing the liquidity available to young men after marriage. We hypothesize that one cost of migration is the disruption of traditional elderly support structures, where sons live near their parents and care for them in their old age. Dowry can attenuate this cost by providing sons and parents with a liquid transfer that eases constraints on income sharing. To test this hypothesis, we collect two novel datasets on property rights over dowry among migrants and among families of migrants. Net transfers of dowry to a man's parents are common but far from universal. Consistent with using dowry for income sharing, transfers occur more when sons migrate, especially when they work in higher-earning occupations. Nationally representative data confirms that migration rates are higher in areas with stronger historical dowry traditions. Finally, exploiting a large-scale highway construction program, we show that men from areas with stronger dowry traditions have a higher migration response to reduced migration costs. Despite its potentially adverse consequences, dowry may play a role in facilitating migration and therefore, economic development.
    JEL: J12 J61 O12
    Date: 2023–04
  21. By: Steffen Künn; Juan Palacios
    Abstract: What is the impact of housing upgrades on occupant health? Although economists and policymakers are certain about the health implications of housing upgrades, empirical evidence is largely missing or else only based on small-scale experiments in developing countries. This study provides the first population-representative quasi-experimental estimates based on a large-scale refurbishment program that renovated half of the East German housing portfolio in the aftermath of German reunification. During the 1990s, the German government devoted significant financial resources to upgrading the insulation and heating systems of over 3.6 million dwellings in East Germany. We link the renovations to individual demand for the healthcare of occupants using the German Socio-Economic Panel (SOEP) as well as administrative records of universal hospital admissions in Germany. Exploiting the staggered roll-out of the renovation program, our results show that an improvement in housing quality enhances the health of vulnerable age groups. Evidence from hospital records suggests that reductions in hospitalization were due to a lower risk of cardiovascular problems for older individuals (45 years or older) which were mainly driven by days with extremely hot and cold ambient temperatures. Our findings have strong policy implications and can enrich the cost-benefit analysis of public investments in weatherization programs.
    Keywords: Housing quality, renovation program, health
    JEL: H54 I38 R21 R23 R38
    Date: 2023
  22. By: Valerie Bostwick; Christopher Severen
    Abstract: We provide evidence that graduated driver licensing (GDL) laws, originally intended to improve public safety, impact both high school completion and teen employment. Many teens use automobiles to commute both to school and to employment. Because school and work decisions are interrelated, the effects of automobile-specific mobility restrictions are ex ante ambiguous. Combining variation in the timing of both GDL law adoption and changes in compulsory school laws into a triple-difference research design shows that restricting teen mobility significantly reduces high school dropout rates and teen employment. These findings are consistent with a model in which teens use automobiles to access educational distractions (employment or even risky behaviors). We develop a discrete choice model that reflects reduced access to school, work, and other activities, which reveals that limiting access to work alone cannot explain the reduction in high school dropout rates.
    Keywords: Mobility Restrictions; Human Capital; Teen Employment; GDL Laws; Multiple Discreteness
    JEL: J24 I20 J22 R48 C35
    Date: 2022–08–17
  23. By: Li Han
    Abstract: Based on the statistical yearbook data and related patent data of 287 cities in China from 2000 to 2020, this study regards the policy of establishing the national high-tech zones as a quasi-natural experiment. Using this experiment, this study firstly estimated the treatment effect of the policy and checked the robustness of the estimation. Then the study examined the heterogeneity in different geographic demarcation of China and in different city level of China. After that, this study explored the possible influence mechanism of the policy. It shows that the possible mechanism of the policy is financial support, industrial agglomeration of secondary industry and the spillovers. In the end, this study examined the spillovers deeply and showed the distribution of spillover effect.
    Date: 2023–04
  24. By: Allister Loder; Fabienne Cantner; Lennart Adenaw; Markus B. Siewert; Sebastian Goerg; Klaus Bogenberger
    Abstract: In a response to the 2022 cost-of-living crisis in Europe, the German government implemented a three-month fuel excise tax cut and a public transport travel pass for 9 Euro per month valid on all local and regional services. Following this period, a public debate immediately emerged on a successor to the so-called "9-Euro-Ticket", leading to the political decision of introducing a similar ticket priced at 49 Euro per month in May 2023, the so-called "Deutschlandticket". We observe this introduction of the new public transport ticket with a sample of 818 participants using a smartphone-based travel diary with passive tracking and a two-wave survey. The sample comprises 510 remaining participants of our initial "9-Euro-Ticket study from 2022 and 308 participants recruited in March and early April 2023. In this report we report on the status of the panel before the introduction of the "Deutschlandticket".
    Date: 2023–05
  25. By: Walls, Margaret A. (Resources for the Future); Wibbenmeyer, Matthew (Resources for the Future)
    Abstract: As large and damaging wildfires have increased in frequency in the western United States, the consequences of these events for local economies remain largely unknown. Studies of the effects of natural disasters on local economic growth have yielded mixed results, and few have examined wildfires—especially large and damaging wildfires. We investigate the local economic impacts of wildfires in the western United States using two empirical approaches, which rely on public county-level economic data and administrative-establishment-level data, respectively. Comparing findings with these two data sources allows us to investigate how local the local economic effects of wildfires are. We find no significant short- or long-run effects of major wildfires on county-level employment growth. However, when we analyze results closer to the actual fire locations, we find that job growth in the year of the fire declines by 1.3 percentage points, but rebounds after that with no significant long-run effect. When analyzed by industry, both approaches show a boost in employment growth in the construction sector, but the results for other sectors have some important differences.
    Date: 2023–03–08
  26. By: Leonor Queiró; João G. Oliveira
    Abstract: We explore the transmission channels of macroprudential policy in the form of caps on household mortgage borrowing. We employ an overlapping generations model with uninsurable labor income risk, housing, and long-term defaultable loans to measure the long-run economic impact of loan-to-value (LTV) and debt payment-to-income (PTI) caps on mortgage contracts in an economy without aggregate risk. We calibrate the model to Portugal, which implemented a 90 percent LTV cap and a 50 percent PTI cap. We find that the leverage cap can lower mortgage debt to output by one-third and eliminate the default rate. However, this comes at the cost of a 2 percent reduction in household welfare, chiefly among income and wealthpoor agents. PTI limits reduce default by limiting debt service but increase indebtedness and household leverage. This mechanism stems from the interaction between labor market risk and the payment-to-income cap: Households fear future adverse income shocks may constrain their access to credit markets and borrow earlier with lower down payments. Finally, we find that the policymaker can achieve similar cuts in default relative to the policy with a smaller welfare cost by setting a less stringent LTV cap or a more restrictive PTI cap.
    JEL: D60 E21 E44
    Date: 2023
  27. By: Henry Wai-chung; ;
    Abstract: This paper builds common grounds for a future research agenda in the regional studies of evolutionary economic geography and global production networks. I put forward two “troubling themes†of (geo)politics and heightened risks as the most disruptive forces in today’s increasingly fragmented global economy and argue for their significance in regional studies throughout the post-pandemic 2020s. Massive global change through the reconfiguration of and strategic (de/re)coupling with global production networks will engender new path formation in regional transformation. In this analytical move from the global “back again†to the regional, there are common questions on epistemology (causal explanations) and substantive issues (network/regional resilience; institutions/the state; inequalities/uneven development; new forms of regional policies) for both communities of researchers.
    Keywords: evolutionary economic geography; global production networks; geopolitics; risks; regional economies; research agenda
    Date: 2023–05
  28. By: NISHITATENO Shuhei; Paul J. BURKE; ARIMURA Toshi H.
    Abstract: Vehicular emissions, being a major global health concern, have gathered worldwide attention and necessitated extensive research to gain deeper insights. The aim of this study was to estimate the effects of road traffic flow on the local ambient concentrations of nitrogen oxides (NOx), carbon monoxide (CO), non-methane hydrocarbons (NMHC), and fine particulate matter (PM2.5) in Japan. We constructed an hourly panel dataset of nationwide samples of air pollution monitoring stations from 2010–2015. By estimating a dynamic panel model with station-hour panel data, short-run pollution-road traffic elasticities of 0.04–0.05 for NOx, CO, and NMHC, and long-run elasticities of 0.09–0.17 were observed; however, no significant evidence was found for PM2.5. We used these estimates to understand the potential effects of reducing road traffic flow to meet the World Health Organization’s new air quality guidelines.
    Date: 2023–04
  29. By: Benjamin W. Cowan; Todd R. Jones; Jeffrey M. Swigert
    Abstract: We demonstrate how mothers, fathers, and 15–17-year-old students alter their schedules around the K-12 academic year. Using regression discontinuity (RDD) methods, combined with dates on school year start and end dates by locality, we document several notable results. First, mothers are substantially more affected by the school year than are fathers. When school is in session, mothers sleep less, spend more time caring for family members and driving them around, and spend less time on eating, free time and exercise. Fathers see changes that are generally similar in sign but smaller in magnitude compared to mothers. 15–17-year-olds naturally reduce time spent in educational pursuits when school is out (a decrease of about 5.5 hours per day on weekdays), and most of that time is substituted toward free time (an additional 2+ hours per day) and sleep (1+ hours per day). Our results provide a holistic picture of how families build their days around the K-12 school calendar and have implications for policies targeted toward women’s and teenage children’s health and well-being.
    JEL: I12 I21 I31 J16
    Date: 2023–04
  30. By: António Afonso; João Tovar Jalles; Ana Venâncio
    Abstract: We assess notably how do extreme events affect the public sector efficiency of decentralized governance. Hence, we empirically link the public sector efficiency scores, to tax revenue and spending decentralization. First, we compute government spending efficiency scores via data envelopment analysis. Second, relying on panel data and impulse response approaches, we estimate the effect of decentralization on public sector efficiency and how extreme natural disasters mediate this relationship. The sample covers 36 OECD countries between 2006 and 2019. Our results show that tax revenue decentralization decreases public sector efficiency, while spending decentralization and a regional authority index are positively related to public sector efficiency, both for local projections and panel analysis. For instance, efficiency rises by 10 percent following a spending decentralization shock (reaching over 20 percent after 4 years). Nevertheless, in cases of natural disasters, spending decentralization reduces public sector efficiency. Specifically, in the presence of most extreme natural disasters, the improvement in public sector efficiency after a spending decentralization shock is smaller than in their absence. Moreover, extreme natural disasters also deteriorate the negative effect of tax revenue decentralization on public sector efficiency. These results suggest that sub-national discretionary spending and tax revenue responses might be less fruitful when such extreme events occur.
    Keywords: public sector efficiency; data envelopment analysis; local projections; revenue decentralization; spending decentralization; natural disasters; OECD
    JEL: C14 C23 E62 H11 H50
    Date: 2023–05
  31. By: Yuya Aikawa (Graduate School of Economics, Kobe University); Tomoko Hashino (Graduate School of Economics, Kobe University); Keijiro Otsuka (Graduate School of Economics, Kobe University)
    Abstract: This study explores the changing roles of agglomeration economies in cluster development based on the historical experience of sake brewing districts in postwar Japan. Nada, the most advanced brewing district, had grown through the horizontal division of labor and development of skilled labor market when production was labor-intensive in the 1950s. The adoption of capital-intensive mechanized brewing, induced by wage growth in the 1960s and 1970s, replaced skilled labor. In recent periods, Nada’s breweries attempted quality improvement and establishing a regional brand by collectively internalizing the external benefits of information spillovers, which are beyond the scope of the Marshallian arguments.
    Date: 2023–04
  32. By: Janjala Chirakijja (Monash University); Seema Jayachandran (Princeton University and NBER); Pinchuan Ong (National University of Singapore Business School)
    Abstract: This paper examines how the price of home heating affects mortality in the US. Exposure to cold is one reason that mortality peaks in winter, and a higher heating price increases exposure to cold by reducing heating use. Our empirical approach combines spatial variation in the energy source used for home heating and temporal variation in the national prices of natural gas and electricity. We find that a lower heating price reduces winter mortality, driven mostly by cardiovascular and respiratory causes. Our estimates imply that the 42% drop in the natural gas price in the late 2000s, mostly driven by the shale gas boom, averted 12, 500 deaths per year in the US. The effect appears to be especially large in high-poverty communities.
    Keywords: Mortality, Home Heating, Heating Prices
    JEL: I30 I31 I39 Q41
    Date: 2023–01
  33. By: Christopher D. Cotton; John O'Shea
    Abstract: Shelter (housing) costs constitute a large component of price indexes, including 42 percent of the widely followed core Consumer Price Index (CPI). The shelter prices measured in the CPI capture new and existing renters and tend to lag market rents. This lag explains how in recent months the shelter-price index (CPI shelter) has accelerated while market rents have pulled back. We construct an error correction model using data at the metropolitan statistical area level to forecast how CPI shelter will evolve. We forecast that CPI shelter will grow 5.88 percent from September 2022 to September 2023 and 3.91 percent over the subsequent 12 months. We demonstrate that the most important factor supporting high future CPI-shelter growth is that a large part of past growth in market rents had not been captured in CPI shelter as of September 2022. We estimate that the headline CPI and core CPI will be 1.05 and 1.34 percentage points higher, respectively, from September 2022 to September 2023 as a result of above-average shelter inflation.
    Keywords: rent; housing; CPI; PCE
    JEL: E37 E31 E17
    Date: 2023–02–16
  34. By: Koen Jochmans (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - 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: Identification of peer effects is complicated by the fact that the individuals under study may self-select their peers. Random assignment to peer groups has proven useful to sidestep such a concern. In the absence of a formal randomization mechanism it needs to be argued that assignment is `as good as' random. This paper introduces a simple yet powerful test to do so. We provide theoretical results for this test. As a by-product we equally obtain such results for an approach popularized by Guryan, Kroft and Notowidigdo (2009). These results help to explain why this approach suffers from low power, as has been observed elsewhere. Our approach can equally be used to test for the presence of peer effects in the linear-in-means model without modification.
    Keywords: asymptotic power, bias, fixed effects, peer effects, random assignment, test
    Date: 2023
  35. By: Dianne Dobbeck
    Abstract: Remarks at the NYBA Hudson Valley Regional Meeting, Kingston, New York.
    Keywords: Bank Term Funding Program (BTFP); bank borrowing; bank liquidity
    Date: 2023–03–29
  36. By: Eric A. Hanushek; Babs Jacobs; Guido Schwerdt; Rolf van der Velden; Stan Vermeulen; Simon Wiederhold
    Abstract: The standard economic model of occupational choice following a basic Roy model emphasizes individual selection and comparative advantage, but the sources of comparative advantage are not well understood. We employ a unique combination of Dutch survey and registry data that links math and language skills across generations and permits analysis of the intergenerational transmission of comparative skill advantages. Exploiting within-family between-subject variation in skills, we show that comparative advantages in math of parents are significantly linked to those of their children. A causal interpretation follows from a novel IV estimation that isolates variation in parent skill advantages due to their teacher and classroom peer quality. Finally, we show the strong influence of family skill transmission on children’s choices of STEM fields.
    JEL: I24 I26 J12 J62
    Date: 2023–04
  37. By: Andreea Minea-Pic
    Abstract: Climate change and natural disasters, the COVID-19 pandemic, and geopolitical shocks have increasingly disrupted school education around the world in recent years. Whether leading to school closures, school destructions or repeated interruptions in students’ learning experiences, these external shocks have translated into lost learning opportunities for students. In this context, education systems face heightened pressure to become ever more resilient, enhance the efficiency of public spending and address emerging learning gaps. This working paper highlights key education strategies for helping students catch up on lost learning opportunities and bridge learning gaps, based on a review of research and policy evidence from OECD and non-OECD countries. It examines a range of academic strategies to address learning gaps, including i) adapting instructional strategies and pedagogies to individual needs, ii) extending and adapting the time of instruction, and iii) providing curricular flexibility and enabling fluid learning pathways within the school system. It provides research evidence on the effectiveness of such strategies, together with examples of their large-scale implementation and cost-effectiveness considerations. While this paper presents programmes of general interest for all countries, a separate policy brief targets learning recovery strategies for students in Ukraine.
    Date: 2023–05–11
  38. By: Shogo Fukui
    Abstract: An input-output table is an important data for analyzing the economic situation of a region. Generally, the input-output table for each region (regional input-output table) in Japan is not always publicly available, so it is necessary to estimate the table. In particular, various methods have been developed for estimating input coefficients, which are an important part of the input-output table. Currently, non-survey methods are often used to estimate input coefficients because they require less data and computation, but these methods have some problems, such as discarding information and requiring additional data for estimation. In this study, the input coefficients are estimated by approximating the generation process with an artificial neural network (ANN) to mitigate the problems of the non-survey methods and to estimate the input coefficients with higher precision. To avoid over-fitting due to the small data used, data augmentation, called mixup, is introduced to increase the data size by generating virtual regions through region composition and scaling. By comparing the estimates of the input coefficients with those of Japan as a whole, it is shown that the accuracy of the method of this research is higher and more stable than that of the conventional non-survey methods. In addition, the estimated input coefficients for the three cities in Japan are generally close to the published values for each city.
    Date: 2023–05
  39. By: Julia Fonseca (University of Illinois at Urbana-Champaign); Adrien Matray (Princeton University, NBER, and CEPR)
    Abstract: We study a financial inclusion policy targeting Brazilian cities with low bank branch coverage using data on the universe of employees from 2000–2014. The policy leads to bank entry and to similar increases in both deposits and lending. It also fosters entrepreneurship, employment, and wage growth, especially for cities initially in banking deserts. These gains are not shared equally and instead increase with workers’ education, implying a substantial increase in wage inequality. The changes in inequality are concentrated in cities where the initial supply of skilled workers is low, indicating that talent scarcity can drive how financial development affects inequality.
    Keywords: Brazil, Financial Inclusion Policy, Wage Inequality, Banks
    JEL: D63 E24 E58 G21 J30
    Date: 2022–09
  40. By: Walls, Margaret A. (Resources for the Future); Ferreira, Celso; Liao, Yanjun (Penny) (Resources for the Future); Pesek, Sophie (Resources for the Future)
    Abstract: Coastal regions are economically important but also susceptible to sea level rise and flooding. This study assesses the exposure of local economies to tidal flooding in the Chesapeake Bay region using geolocated businesses and employment data. Our results show that approximately 263, 500 jobs and $11.1 billion in wage income will be exposed to 100-year flooding by 2050, which is almost 50% higher compared to current conditions due to sea level rise. Several jurisdictions are exposure hotspots with a much higher number or share of jobs and wage income subject to flood risk. We also identify 44 census tracts that have both high flood exposure and high population vulnerability. Our results highlight the need for better coordination between state economic development and climate resilience policies to address the growing challenges of climate change in coastal regions.
    Date: 2023–05–04
  41. By: Hend Sallam
    Abstract: Return migration intentions are complex and are not necessarily followed by future return migration. Our study compares successful return or repeated migration with self-declared return intentions. We take advantage of the latest German Socio-Economic Panel survey dropout studies and fieldwork to observe a wider return migration window than reported in the literature to answer the question of whether return migration intentions eventually coincided with actual emigration behaviors. We also examine the validity of return migration estimates. This paper explores whether return intentions eventually materialize, whether they can eventually predict actual return behaviors, and if the determinants of actual and predicted return based on intentions are similar. Overall, our results support that migration intentions can predict actual return behavior. While our results show discrepancies in the predictors of return intentions and actual returns, they show emigration intentions as good predictors of actual future emigration. Moreover, we find that life satisfaction significantly impacts the individual intention to remigrate.
    Keywords: Return and repeat migration, emigration, self-selection, intentions and realizations, West Germany
    JEL: F22 J61 I31
    Date: 2023
  42. By: Leung, Michael P
    Keywords: Causal inference, interference, experimental design, spatial dependence, Applied Mathematics, Statistics, Econometrics, Statistics & Probability
    Date: 2022–10–01
  43. By: Luis Ayala; Javier Mart n-Rom n; Juan Vicente
    Abstract: This paper aims to analyze the trends in income inequality in large cities within a selected sample of OECD countries. Specifically, we consider a set of determinants that account for changes in the income distribution and estimate their contributions to inequality by developing both a dynamic approach —differences in inequality in large cities over the last two decades— and a static approach —differences in inequality between large cities and other areas. We use a combination of reweighting techniques and recentered influence functions (RIF) to detect both an upward trend in inequality within large cities and higher levels of inequality with respect to other areas. These results are mainly driven by changes in the returns to endowments rather than by changes in its distribution. We also find that the results are not of the same magnitude across the countries analysed. The contribution to inequality of the skill premium is considerably higher in the US than in European countries.
    JEL: D31 P52 R12
    Date: 2023–01
  44. By: Wu, Jialin; Liu, Hongbo; ZHENG, Chen
    Abstract: This study explores the potential of tryvertising in accommodations using an experimental research design. By building a moderated mediation model, this research offers theoretical underpinnings to comprehend how and when tryvertising works in peer-to-peer accommodations. The results demonstrate that tryvertising is more effective in Airbnb than in a hotel context, and more effective in an entire property than a private room in Airbnb. Different accommodation settings represent different levels of territoriality, with higher territoriality leading to higher psychological ownership, and hence higher purchase intentions towards tryvertised products. Such effects are moderated by impermanence which is a threat to psychological ownership. This research suggests avenues marketers/hosts can optimize tryvertising effectiveness in peer-to-peer accommodations, by increasing guests’ perceived territoriality and psychological ownership.
    Date: 2023–04–17
  45. By: Natee Amornsiripanitch; Paul Gompers; George Hu; Kaushik Vasudevan
    Abstract: We study immigrant founders of venture-capital backed firms using a new and detailed data set that we assemble on the backgrounds of founders. Immigrant founders have been critical to the entrepreneurial ecosystem, accounting for roughly 20% of all venture capital-backed founders over the past 30 years. We document the channels through which immigrant founders arrive in the United States and how those channels have changed over time. Higher education has served as the primary entry channel for immigrant founders. The share of foreign-educated immigrant founders who initially arrive for work has decreased over time, while the share of immigrant founders with undergraduate education in the United States has increased over time. Immigrant founders are likely to start their companies in the state in which they were educated, leading to potentially large local economic benefits associated with attracting foreign students. The results of this paper have important policy implications for the supply of entrepreneurial talent and efforts to promote entrepreneurial ecosystems.
    Keywords: entrepreneurship; venture capital; immigration; education
    JEL: G24 J0 J15 J24 L26 L23
    Date: 2022–08–08
  46. By: Taiwo Adetiloye; Anjali Awasthi
    Abstract: The logistics of urban areas are becoming more sophisticated due to the fast city population growth. The stakeholders are faced with the challenges of the dynamic complexity of city logistics(CL) systems characterized by the uncertainty effect together with the freight vehicle emissions causing pollution. In this conceptual paper, we present a research methodology for the environmental sustainability of CL systems that can be attained by effective stakeholders' collaboration under non-chaotic situations and the presumption of the human levity tendency. We propose the mathematical axioms of the uncertainty effect while putting forward the notion of condition effectors, and how to assign hypothetical values to them. Finally, we employ a spider network and causal loop diagram to investigate the system's elements and their behavior over time.
    Date: 2023–04
  47. By: Frick, Susanne; Rodríguez-Pose, Andrés
    Abstract: Special Economic Zones (SEZs) are a popular policy tool for the promotion of economic development. However, questions remain about their economic contribution and about what aspects of SEZ policies are most relevant to investors. This article sheds light on these issues by comparing SEZs across Africa, Asia and Latin America. We find that, while investment decisions by foreign companies are driven by market access, political stability and low labour costs, adequate SEZ policies facilitate the attraction of investment. A good industrial infrastructure together with a strategic location and service provision within the zones draw investment. Fiscal incentives, by contrast, have a limited influence on investment decisions.
    Keywords: special economic zones; inward investment; industrial policy; developing countries; FDI location decision
    JEL: F21 O14 O24 L52
    Date: 2023–04–19
  48. By: Juskowiak, Piotr
    Abstract: In this article, I ask how Henri Lefebvre’s oeuvre can contribute to the foundations for a metromarxist theory of urban commoning. To provide an answer to this question I discuss three main areas in which his thinking about the common emerges – his anthropology, philosophy of the urban, and politics of autogestion. This allows me to emphasize the multidimensionality of the Lefebvre-minded commoning, which manifests itself not only at the level of local activism but also touches the dimensions of the production of subjectivity and the constitution of the urban. Read in this way, Lefebvre’s theory of urban commoning helps us to move beyond some of the limitations of the existing discussion of urban commons, as well as to make room for a more fruitful dialogue between urban scholars and autonomist Marxists. It also equips us with an alternative conceptual framework that potentially enhances post-Lefebvrian projects of direct urban democracy.
    Date: 2023–04–22
  49. By: Gielen, Anne C. (Erasmus University Rotterdam); Webbink, Dinand (Erasmus University Rotterdam)
    Abstract: A ban on migration from Suriname, a former Dutch colony, to the Netherlands induced a mass migration and changed the selection of migrants. We exploit this historical episode to study the relationship between the self-selection of migrants and their long-term economic integration over three generations. 'Beat-the-ban' migrants, those arriving just before the ban, are negatively selected compared to economic migrants arriving earlier. This difference in selection is reflected in the outcomes of the first generation. However, the inequality in outcomes between differently selected migrants is not persistent. The offspring of negatively selected migrants has a faster catch-up to natives which can be explained by inequities in the country of origin.
    Keywords: mass migration, economic integration, intergenerational mobility, migrant selection
    JEL: J24 J6
    Date: 2023–04
  50. By: Giovanis, Eleftherios; Akdede, Sacit Hadi
    Abstract: In this study, we aim to explore and compare the frequency of attendance and the reasons for non-attendance to cultural activities between natives and first-generation immigrants in thirteen European countries. The empirical analysis relies on data from the special module on cultural participation in the European Union-Income and Living Conditions Survey (EU-SILC) in 2015. We apply the Probit and multinomial Probit models. This study contributes to the literature by exploring the determinants of cultural participation and comparing the frequency of participation in cultural activities between natives and first-generation immigrants. Furthermore, the study explores the reasons for non-participation in cultural activities, highlighting potential differences between countries and between the European Union (EU) and non-EU migrants. The results highlight that social interactions depend on several factors related mainly to the country of destination and employment opportunities and individual factors related to the migrant, including demographic and economic characteristics and the length of residence in the host country. The findings show that the length of residence of immigrants in the host countries is positively correlated with a higher frequency of attendance, indicating that cultural participation can be, by its nature, a long-term process or “experienced” activity. The findings also show that in most cases, migrants do not attend the cultural activities we explore because of financial constraints and not due to lack of interest. Thus, this highlights that the economic integration of migrants could be the primary driver of cultural participation and integration.
    Keywords: Cultural Integration; Discrete Choice Models; First-Generation Immigrants; International Migration; Integration; Multiculturalism
    JEL: Z10 Z13
    Date: 2023
  51. By: Daniel Schunk (Johannes Gutenberg University); Eva M. Berger (German Council of Economic Experts); Henning Hermes (Heinrich Heine University of Duesseldorf); Kirsten Winkel (University of Applied Sciences Saarbruecken); Ernst Fehr (University of Zurich)
    Abstract: Children's self-regulation abilities are key predictors of educational success and other life outcomes such as income and health. However, self-regulation is not a school subject, and knowledge about how to generate lasting improvements in self-regulation and academic achievements with easily scalable, low-cost interventions is still limited. Here we report the results of a randomized controlled field study that integrates a short self-regulation teaching unit based on the concept of mental contrasting with implementation intentions into the school curriculum of first graders. We demonstrate that the treatment increases children's skills in terms of impulse control and self-regulation while also generating lasting improvements in academic skills such as reading and monitoring careless mistakes. Moreover, it has a substantial effect on children's long-term school career by increasing the likelihood of enrolling in an advanced secondary school track three years later. Thus, self-regulation teaching can be integrated into the regular school curriculum at low cost, is easily scalable, and can substantially improve important abilities and children's educational career path.
    Date: 2022–10–13
  52. By: Calamunci, Francesca Maria; Frattini, Federico Fabio
    Abstract: What is the long-term effect of organised crime presence on social capital accumulation? By leveraging novel social capital and organised crime data, this study investigates this question within the Italian landscape. In an instrumental variable (IV) setting, we exploit the forced resettlement law that compelled organised crime members living in the South of Italy to resettle in the Centre-North area. Using a granular measure of tax compliance as a proxy for civic awareness, we find evidence that sustained exposure to mafia presence depresses social capital accumulation. This finding applies to other dimensions of social capital, such as civic engagement and political participation. Results are robust to a series of robustness checks, such as the alternative strategy which combines the migratory movements from the South and the allocation of Marshall Plan funds. The findings appear to be influenced by a tolerance of dishonest conduct, a decrease in institutional trust, and a general disengagement from social activities.
    Keywords: Community/Rural/Urban Development, Labor and Human Capital, Research Methods/ Statistical Methods
    Date: 2023–05–03
  53. By: Edoardo Gallo; Joseph Lee; Yohanes Eko Riyanto; Erwin Wong
    Abstract: Social networks can sustain cooperation by amplifying the consequences of a single defection through a cascade of relationship losses. Building on Jackson et al. (2012), we introduce a novel robustness notion to characterize low cognitive complexity (LCC) networks - a subset of equilibrium networks that imposes a minimal cognitive burden to calculate and comprehend the consequences of defection. We test our theory in a laboratory experiment and find that cooperation is higher in equilibrium than in non-equilibrium networks. Within equilibrium networks, LCC networks exhibit higher levels of cooperation than non-LCC networks. Learning is essential for the emergence of equilibrium play.
    Date: 2023–05
  54. By: Pérez, A.F.; Pedrazas, A.M.; Gaggero, A.
    Abstract: We quantify the efect of the non-essential business closure policy in the Spanish region of Andalusia. Exploiting that municipalities were assigned a two-week closure of the non-essential business on the basis of the exact 14-day infection rate (per 100, 000 inhabitants) being above a cut-off value of 1, 000, we use a regression discontinuity design to estimate the causal impact of the policy on new COVID-19 cases and deaths. Using weekly administrative data, our estimates suggest that, on average, the policy reduced new COVID-19 cases and deaths by 63 and 1, respectively. Notably, our heterogeneity analysis highlights that while the policy was extremely effective in urban areas, its effect was not statistically different from zero in rural areas, namely, municipalities with population less than 5, 000. Our results imply that roughly 700 lives have been saved by this policy. Overall, this study provides compelling evidence that shutting down businesses has been an effective tool to counter the COVID-19 pandemics.
    Keywords: COVID-19; non-essential business closure; Spain; 14-day infection rate; infection; mortality; regression discontinuity;
    JEL: I1 I18 H12
    Date: 2023–05
  55. By: Rodrigo Zeidan; Silvio Luiz de Almeida; In\'acio B\'o; Neil Lewis Jr
    Abstract: This survey article provides insights regarding the future of affirmative action by analyzing the implementation methods and the empirical evidence on the use of placement quotas in the Brazilian higher education system. All federal universities have required income and racial-based quotas in Brazil since 2012. Affirmative action in federal universities is uniformly applied across the country, which makes evaluating its effects particularly valuable. Affirmative action improves the outcomes of targeted students. Specifically, race-based quotas raise the share of black students in federal universities, an effect not observed with income-based quotas alone. Affirmative action has downstream positive consequences for labor market outcomes. The results suggest that income and race-based quotas beneficiaries experience substantial long-term welfare benefits. There is no evidence of mismatching or negative consequences for targeted students' peers.
    Date: 2023–04
  56. By: Chinh T. Mai (Graduate School of Economics and Management, Tohoku University); Akira Hibiki (Graduate School of Economics and Management, Tohoku University)
    Abstract: This paper contributes an in-depth study of the short- and long-term effects of floods on the cognitive development of school-aged children. Specifically, we exploit individual-level microdata from a longitudinal study of childhood poverty in Vietnam. Our analyses indicate that floods immediately imposed negative impacts on children’s cognitive skills, but these impacts would be mitigated in the long run. Changes in child schooling, time allocation between school and work, and household food consumption (child nutrition) appear to be potential channels behind these impacts. Girls, older children, firstborn children, and children belonging to ethnic minorities are more vulnerable to the adverse effects of flooding. Our results suggest that policies to alleviate the credit constraints of households in the above groups could mitigate the damage imposed by natural disasters on human capital accumulation.
    Date: 2023–04
  57. By: Sergey Chernenko; Nathan Kaplan; Asani Sarkar; David S. Scharfstein
    Abstract: We use the 2020 Small Business Credit Survey to study the sources of racial disparities in use of the Paycheck Protection Program (PPP). Black-owned firms are 8.9 percentage points less likely than observably similar white-owned firms to receive PPP loans. About 55% of this take-up disparity is attributable to a disparity in application propensity, while the remainder is attributable to a disparity in approval rates. The finding in prior research that Black-owned PPP recipients are less likely than white-owned recipients to borrow from banks and more likely to borrow from fintech lenders is driven entirely by application behavior. Conditional on applying for a PPP loan, Black-owned firms are 9.9 percentage points less likely than white-owned firms to apply to banks and 7.8 percentage points more likely to apply to fintechs. However, they face similar average approval disparities at banks (7.4 percentage points) and fintechs (8.4 percentage points). Sorting by Black-owned firms away from banks and towards fintechs is significantly stronger in more racially biased counties, and the bank approval disparity is also larger in more racially biased counties. We conclude that insofar as automation by fintechs reduces racial disparities in PPP take-up, it does so by mitigating disparities in loan application rates, not loan approval rates.
    JEL: G01 G21 G23 G28
    Date: 2023–04

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