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on Urban and Real Estate Economics |
| By: | Sadegh Eshaghnia; James J. Heckman; Goya Razavi |
| Abstract: | Education in Denmark is freely available. Despite near equal teacher salaries and per-pupil school expenditure across districts, there is substantial spatial heterogeneity in school quality as measured by teacher quality and student test scores. We argue that this is due to sorting of teachers and students across neighborhoods. We develop and apply multiple methods for identifying parental valuation of measured school quality in the presence of strong neighborhood sorting. There is strong concordance in the estimates across diverse methodologies. We estimate a willingness to pay of about 3% more for a house with average characteristics when test scores are one standard deviation above the mean. Controlling for selection into neighborhoods only slightly reduces our estimates. Given that school quality, as measured by monetary resources, is equalized across all neighborhoods, payments for school quality embodied in housing prices are in fact payments for peer, teacher, and neighborhood quality. This evidence challenges the appropriateness of the current emphasis in the literature on Tiebout-based models of neighborhood choice that stress sorting on parental income in order to finance the local public good of school quality. Rather, a model of neighborhood choice to select neighbor and peer quality is more appropriate. Our evidence is consistent with evidence that cash expenditures on classrooms have weak effects on child achievement. |
| JEL: | H0 H4 H70 I20 R0 R20 R3 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31371&r=ure |
| By: | Malginov Georgy (Gaidar Institute for Economic Policy); Sternik Sergey (Gaidar Institute for Economic Policy) |
| Abstract: | Last year, the Russian real estate market was fully affected by the shocks that hit the domestic economy, passing through several phases. The first months were marked by the continued growth of real estate prices with a shortage of supply. The mechanism of government mortgage support worked out in the previous years stimulated the demand ensuring the prevalence of mortgage transactions in the total volume of deals in Russian cities. The changes in socio-economic situation that took place at the turn of winter and spring amid the aggravation of geopolitical tensions caused panic among buyers and sellers on the real estate market and a significant drop in the volume of transactions. A sharp increase of the key rate by the central bank to 20% led to a collapse of mortgage lending by the banks. The rapid buying up of “cheap” supply was carried out by means of withdrawal of cash from bank accounts by the population. |
| Keywords: | Russian economy, residential property prices, housing market, housing construction |
| JEL: | H82 K11 L32 L33 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:gai:ppaper:ppaper-2023-1288&r=ure |
| By: | Joshua Bosshardt (Federal Housing Finance Agency); Marco Di Maggio (Harvard University); Ali Kakhbod (University of California, Berkeley); Amir Kermani (University of California, Berkeley) |
| Abstract: | This paper studies how tightening monetary policy transmits to the economy through the mortgage market and sheds new light on the distributional consequences at both the individual and regional levels. We find that mortgage supply factors, specifically restrictions on the debt-to-income (DTI) ratio, account for the majority of the decline in mortgages. These effects are even more pronounced for young and middle-income borrowers who find themselves excluded from the credit market. Also, regions with historically high DTI ratios exhibited greater reductions in mortgage originations, house prices, and consumption. |
| Keywords: | interest rates, mortgage lending, house prices, debt-to-income (DTI) |
| JEL: | G21 E43 G51 |
| URL: | http://d.repec.org/n?u=RePEc:hfa:wpaper:23-03&r=ure |
| By: | Sungwoo Cho; Felipe Gonçalves; Emily Weisburst |
| Abstract: | We examine how changes in the salience of workplace risk affect police behavior and public safety. Specifically, we investigate cases of police officer deaths while on duty. Officers respond to a peer death by decreasing arrest activity for one to two months, consistent with heightened fear. Reductions are largest for low-level arrests and are more pronounced in smaller cities. Crime does not increase on average during this period, nor do we observe crime spikes in cities with larger or longer arrest declines. While shocks in fatality risk generate substantial enforcement responses, officer fear is unlikely to harm public safety. |
| JEL: | J28 J45 K42 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31392&r=ure |
| By: | Kyle Butts; Taylor Jaworski; Carl Kitchens |
| Abstract: | We estimate the urban wage premium in the United States from 1940 to 2010. Drawing on recent advances in the literature on selection on unobservables, we show how to control for heterogeneity in the characteristics of individuals that choose to live in cities to address endogenous sorting. Estimates from naive comparisons of individuals living in urban versus non-urban areas substantially overstate the urban wage premium. We find that the premium is highest in the middle of the twentieth century (about 12 percent in 1940 and 1950) relative to the early in twenty-first century (declining to a few percent by 2010). Overall, the urban wage premium is decreasing and sorting explains a larger fraction of the difference in urban versus non-urban earnings across our sample period. |
| JEL: | N92 R0 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31387&r=ure |
| By: | Stephan Heblich; David Krisztián Nagy; Alex Trew; Yanos Zylberberg |
| Abstract: | This paper studies how cities' industrial structure shapes their life and death. Our analysis exploits the large heterogeneity in the early composition of English and Welsh cities. We extract built-up clusters from early historical maps, identify settlements at the onset of the nineteenth century, and isolate exogenous variation in the nature of their rise during the transformation of the economy by the end of the nineteenth century. We then estimate the causal impact of cities' population and industrial specialization on their later dynamics. We find that cities specializing in a small number of industries decline in the long run. We develop a dynamic spatial model of cities to isolate the forces which govern their life and death. Intratemporally, the model captures the role of amenities, land, local productivity and trade in explaining the distribution of economic activity across industries and cities. Intertemporally, the model can disentangle the role of aggregate industry dynamics from city-specific externalities. We find that the long-run dynamics of English and Welsh cities is explained to a large extent by such dynamic externalities a la Jacobs. |
| Keywords: | Specialization; cities over time; quantitative economic geography. |
| JEL: | F63 N93 O14 R13 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:1867&r=ure |
| By: | Emmanuelle Augeraud Veron (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); F. Marhuenda; P.M. Picard |
| Abstract: | In this paper we investigate the effect of local interaction in a simple urban economics model. Agents interact with others if and only if their interaction benefit outweighs their travel cost and therefore meet others only within finite geographic windows. We show that two or more cites may co-exist at the equilibrium provided that they are sufficiently distant. For any interaction surplus function, there exists a unique spatial equilibrium on not too large city supports. The population density within a city is determined by a second order advance-delay differential equation, whose solutions are fully characterized for linear interaction surplus functions. Numerical analyses show that more localized interactions yield flatter population density and land rents over larger extents of the city support. They do not give support to the idea that multiple subcenters can be caused by small and finite geographic windows of interaction. © 2021 Elsevier B.V. |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03433039&r=ure |
| By: | Dean Corbae; Andrew Glover; Michael Nattinger |
| Abstract: | We develop a simple equilibrium model of rental markets for housing in which eviction occurs endogenously. Both landlords and renters lack commitment; a landlord evicts a delinquent tenant if they do not expect total future rent payments to cover costs, while tenants cannot commit to paying more rent than they would be able or willing to pay given their outside option of searching for a new house. Renters who are persistently delinquent are more likely to be evicted and pay more per quality-adjusted unit of housing than renters who are less likely to be delinquent. Evictions are never socially optimal, and lead to lower quality investment in housing and too few vacancies relative to the socially optimal allocation. In our calibrated model, housing externalities widen the gap in housing access and quality between relatively high- and low-earning renters. Finally, government policies that restrict landlords’ ability to evict can improve welfare, though a full moratorium on evictions should be reserved for crises; rent support is generally a better policy than restricting evictions. |
| Keywords: | eviction; rental burden; housing externalities; housing supply |
| JEL: | R31 R21 R38 |
| Date: | 2023–04–21 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedkrw:96414&r=ure |
| By: | Till Baldenius; Nicolas Koch; Hannah Klauber; Nadja Klein |
| Abstract: | Segregation on the basis of ethnic groups stands as a pervasive and persistent social challenge in many cities across the globe. Public spaces provide opportunities for diverse encounters but recent research suggests individuals adjust their time spent in such places to cope with extreme temperatures. We evaluate to what extent such adaptation affects racial segregation and thus shed light on a yet unexplored channel through which global warming might affect social welfare. We use large-scale foot traffic data for millions of places in 315 US cities between 2018 and 2020 to estimate an index of experienced isolation in daily visits between whites and other ethnic groups. We find that heat increases segregation. Results from panel regressions imply that a week with temperatures above 33{\deg}C in a city like Los Angeles induces an upward shift of visit isolation by 0.7 percentage points, which equals about 14% of the difference in the isolation index of Los Angeles to the more segregated city of Atlanta. The segregation-increasing effect is particularly strong for individuals living in lower-income areas and at places associated with leisure activities. Combining our estimates with climate model projections, we find that stringent mitigation policy can have significant co-benefits in terms of cushioning increases in racial segregation in the future. |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2306.13772&r=ure |
| By: | Andor, Mark Andreas; Dehos, Fabian; Gillingham, Kenneth; Hansteen, Sven; Tomberg, Lukas |
| Abstract: | Accelerated by surging inflation, policymakers in many countries have introduced cheap, flat-rate access to public transport. Such measures serve two aims: to cushion the social repercussions of inflation by reducing energy expenses, and to promote more sustainable mobility. Spain, for instance, has introduced a program that allows commuters free access to public transport for regular trips. Austria offers a nationwide ticket for 1, 095 Euros per year and a regional ticket for the city of Vienna for 365 Euros per year. Luxembourg, Malta, and some cities in Europe and the United States have already introduced free public transport. This global trend towards flat fares or free public transport is based on arguments such as simplification, uniformity, and ease-of-control. Germany recently followed suit with an unprecedented reduction in public transport fares. From June to August 2022, the German government granted nationwide access to public transport for just 9 Euros per month. Germany’s experience with the so-called 9-Euro Ticket provides new insights on the impact of cheap flat-rate access to public transport. Based on our evaluation of the 9-Euro Ticket, experiences with similar programs in other European cities, and insights from economic theory, we call for a cheap and dynamic public fare system that prices peak times higher than off-peak times to avoid overcrowding during peak hours. To finance a subsidized public transport system, we propose dynamic road pricing. This would reduce the externalities of car usage by levying a per-kilometer fee that varies by congestion levels of the respective roads. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwipos:82&r=ure |
| By: | Jinyong Hahn; John D. Singleton; Neşe Yildiz |
| Abstract: | Panel or grouped data are often used to allow for unobserved individual heterogeneity in econometric models via fixed effects. In this paper, we discuss identification of a panel data model in which the unobserved heterogeneity both enters additively and interacts with treatment variables. We present identification and estimation methods for parameters of interest in this model under both strict and weak exogeneity assumptions. The key identification insight is that other periods' treatment variables are instruments for the unobserved fixed effects. We apply our proposed estimator to matched student-teacher data used to estimate value-added models of teacher quality. We show that the common assumption that the return to unobserved teacher quality is the same for all students is rejected by the data. We also present evidence that No Child Left Behind-era school accountability increased the effectiveness of teacher quality for lower performing students. |
| JEL: | C12 C14 C31 C36 C52 H75 I21 I24 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31384&r=ure |
| By: | Alexander N. Bogin (Federal Housing Finance Agency); LaRhonda Ealey (Federal Housing Finance Agency); Kirsten Landeryou (Federal Housing Finance Agency); Scott Smith (Federal Housing Finance Agency); Andrew Tsai (Federal Housing Finance Agency) |
| Abstract: | We explore the impact of geographic disaggregation of house price stress paths on single-family credit risk measurement. Specifically, we focus on the value added of moving from national, to state-level, to core-based statistical area (CBSA)-level house price paths on estimates of mortgage credit related stress losses. To ensure the robustness of our results, we estimate losses across two different loan portfolios and three credit models. We find that CBSA-level paths provide additional insight on localized credit risk and can be reliably constructed using quarterly house price indices. Further, the variation in results across credit models suggests an implicit confidence interval around any one stress loss estimate. Accounting for this uncertainty through a model risk add-on could potentially offer a more conservative view of portfolio credit risk. |
| Keywords: | geographic aggregation, credit modeling, countercyclical |
| JEL: | E44 G53 R30 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:hfa:wpaper:23-02&r=ure |
| By: | Humes, Harry; Barrett, Michelle; Walsh, Brendan |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:bp2024/2&r=ure |
| By: | Gräser, Melanie |
| Abstract: | Using novel data on industrial, semi-industrial, and artisanal mining, this paper analyses the impact of different mining types on employment outcomes for individuals living close to mines in Liberia. The econometric strategy exploits the temporal variation in mine openings and closings and the spatial variation in mine locations in a difference-in-difference analysis. Primary data collected through qualitative interviews at mining sites explains the mechanisms behind the econometric results. The findings provide the first causal evidence on employment effects of a boom-and-bust cycle of artisanal mining. A boom seems to shift employment from subsistence agriculture to more productive sectors and a bust decreases the likelihood for individuals to work. In contrast, the opening of industrial gold mines seems to decrease employment in more productive sectors and increase employment in agriculture, while industrial iron ore mines have no effect. This paper shows that benefits of mining for the local population depend on the type of mining, the commodities mined, and the local boom-bust cycle of mining. |
| Keywords: | Natural resources; Extractive industries; Liberia; Industrial mining; Artisanal mining |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus005:44832439&r=ure |
| By: | Di Feng (Faculty of Business and Economics, University of Laussane, SWITZERLAND and Junir Research Fellow, Research Institute for Economics & Business Administration (RIEB), Kobe University, JAPAN) |
| Abstract: | For Shapley-Scarf housing markets (Shapley and Scarf, 1974), Fujinaka and Wakayama (2018) propose a new incentive property, endowments-swapping-proofness, that excludes manipulations that a pair of agents can conduct before the operation of the selected mechanism by swapping their endowments. We investigate endowments-swapping-proofness for Moulin (1995)'s multiple-type housing markets, which are an extension of Shapley-Scarf housing markets with multi-unit demands. Differing from Shapley-Scarf housing markets, for multiple-type housing markets, there are various ways to swap endowments. Motivated by this observation, we introduce three extensions of endowments-swapping-proofness: bundle endowments-swapping-proofness, one type endowments-swapping-proofness, and flexible endowments-swapping-proofness. Based on the first two weaker endowments-swapping-proofness properties that we propose, and other well-studied properties (individual rationality, strategy-proofness, and non-bossiness), on several domains of preference profiles, we provide characterizations of two extensions of the top-trading-cycles (TTC) mechanism: the bundle top-trading cycles (bTTC) mechanism and the coordinatewise top-trading-cycles (cTTC) mechanism. Moreover, we also show that the strongest possible endowments-swapping-proofness property (flexible endowments-swapping-proofness) leads to an impossibility. Furthermore, our results explicitly show that our new properties correspond to efficiency notions. |
| Keywords: | Multiple-type housing markets; Endowments-swapping-proofness; Strategy proofness; Constrained efficiency; Top-trading-cycles (TTC) mechanism; Market designy |
| JEL: | C78 D61 D47 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2023-14&r=ure |
| By: | Borusyak, Kirill; Hull, Peter; Jaravel, Xavier |
| Abstract: | Many studies use shift-share (or "Bartik") instruments, which average a set of shocks with exposure share weights. We provide a new econometric framework for shift-share instrumental variable (SSIV) regressions in which identification follows from the quasi-random assignment of shocks, while exposure shares are allowed to be endogenous. The framework is motivated by an equivalence result: the orthogonality between a shift-share instrument and an unobserved residual can be represented as the orthogonality between the underlying shocks and a shock-level unobservable. SSIV regression coefficients can similarly be obtained from an equivalent shock-level regression, motivating shock-level conditions for their consistency. We discuss and illustrate several practical insights of this framework in the setting of Autor et al. (2013), estimating the effect of Chinese import competition on manufacturing employment across U.S. commuting zones. |
| Keywords: | Bartik instruments; instrumental variables; quasi-experiments; shift-share instruments |
| JEL: | C10 C21 F16 J21 |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117788&r=ure |
| By: | Michael Wyrwich (University of Groningen, and Friedrich Schiller University Jena); Michael Fritsch (Friedrich Schiller University Jena) |
| Abstract: | Mounting empirical evidence shows that regional differences of entrepreneurship are persistent over long periods of time that may reflect the prevalence of an entrepreneurial culture. We explore three important mechanisms behind the transmission of such an entrepreneurial culture. First, we analyze the role model effects at the household level. We hypothesize that the larger the households of self-employed, the greater the opportunities for role model effects such as an intergenerational transfer of entrepreneurial values and attitudes, and hence the higher the regional start-up rate in later periods. Second, we investigate how the economic success of regional entrepreneurs fuels the role model effects. Third, we analyze if and to what extent the economic success in of regional entrepreneurship stimulates a collective memory of historical entrepreneurship that spurs self-employment in later periods. The analysis of entrepreneurship in German regions over a period of more than 90 years provides support for the significance of all three transfer channels. |
| Keywords: | Entrepreneurship, intertemporal transfer, regional trajectories |
| JEL: | L26 R11 O15 J1 |
| Date: | 2023–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2023-006&r=ure |
| By: | Tran Huynh (Friedrich Schiller University Jena) |
| Abstract: | This study investigates the causal effect of financial literacy on mortgage payment delinquency. Using an Instrumental-Variable (IV) approach, we find that increased financial literacy significantly reduces the probability of mortgage delinquency. The identified causal effect is robust to different specifications of the IV and cannot be explained by formal education, income, and many other individual characteristics. Our study also examines the heterogeneity of the impact across various demographic groups. We find that the effect of financial literacy on delinquency likelihood is negative and significantly different from zero for any age, gender, income, or education level. However, the magnitude of the effect decreases with age and is higher in states where the population’s financial literacy is low, as compared with high-literate states. |
| Keywords: | financial literacy, mortgage delinquency, NFCS surveys, instrumental variables |
| JEL: | G51 G53 |
| Date: | 2023–07–04 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2023-007&r=ure |
| By: | Dionissi Aliprantis; Kristen Tauber |
| Abstract: | Black men who witnessed a shooting before turning 12 have household earnings as adults 31 percent lower than those who did not. We present evidence that this gap is causal and is most likely the result of toxic stress; it is not mediated by incarceration and is constant across neighborhood socioeconomic status. Turning to mechanisms related to toxic stress, we study exposure to violence and nurturing relationships during adolescence. Item-anchored indexes synthesize variables on these treatments better than summing positive responses, Item Response Theory, or Principal Components, which all perform similarly. Providing adolescents with nurturing relationships is almost as beneficial as preventing their exposure to violence. |
| Keywords: | Interpersonal Violence; Code of the Street; Toxic Stress; Nurturing Relationship; Race; Neighborhood Effect |
| JEL: | H40 I38 J15 J24 R23 |
| Date: | 2023–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedcwq:96469&r=ure |
| By: | Helm, Ines (Ludwig-Maximilians-Universität München); Koch, Nicolas (Mercator Research Institute on Global Commons and Climate Change (MCC)); Rohlf, Alexander (Mercator Research Institute on Global Commons and Climate Change (MCC)) |
| Abstract: | We study the effects of a large car scrappage scheme in Germany on new car purchases and local air quality by combining vehicle registration data with data on local air pollutant emissions. For identification we exploit cross-sectional variation across districts in the number of cars eligible for scrappage. The scheme had substantial effects on car purchases and did not simply reallocate demand across time in the short-term. Nevertheless, about half of all subsidized buyers benefited from windfall gains. The renewal of the car stock improved local air quality suggesting substantial mortality benefits that likely exceed the cost of the policy. While policy take-up is somewhat smaller in urban districts, improvements in air quality and health tend to be larger due to a higher car density. |
| Keywords: | cash for clunkers, local air quality, car scrappage schemes, emissions, car rebate |
| JEL: | H20 H23 Q53 Q58 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16266&r=ure |
| By: | Natália Barbosa; Ana Paula Faria (Department of Economics and NIPE, University of Minho; Department of Economics and NIPE, University of Minho,) |
| Abstract: | Productivity disparities in the European regions tend to persist. In order to understand the underlying sources of this phenomenon we assess the importance of science and regional innovation modes on firms’ productivity growth on a sample of 150, 712 firms across 161 NUTSII European regions, over the period 2012-2017. We find that science is a major source of firms’ productivity growth, and it has been particularly important to firms located in Southern Europe and, to less extent, in Eastern EU regions, indicating that a science-push convergence process is at work in the EU peripheral regions. Our findings also show that the fast-growing productivity firms are those who benefit more from external knowledge and innovation. Growth by imitation seems to be a viable strategy restricted to the slow-growing productivity firms. These results help to conciliate contentious evidence regarding firms’ benefits from spillovers, namely from scientific knowledge. |
| Keywords: | Territorial innovation patterns, Firm productivity, Europe, Quantile regression |
| JEL: | O33 O38 L25 R11 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0175&r=ure |
| By: | Pablo Fajgelbaum; Cecile Gaubert; Nicole Gorton; Eduardo Morales Morales; Edouard Schaal |
| Abstract: | How do political preferences shape transportation policy? We study this question in the context of California's High-Speed Rail (CHSR). Combining geographic data on votes in a referendum on the CHSR with a model of its expected economic benefits, we estimate the weight of economic and non-economic considerations in voters'preferences. Then, comparing the proposed distribution of CHSR stations with alternative placements, we use a revealed-preference approach to estimate policymakers' preferences for redistribution and popular approval. While voters did respond to expected real-income benefits, non-economic factors were a more important driver of the spatial distribution of voters' preferences for the CHSR. While the voter-approved CHSR would have led to modest income gains, proposals with net income losses also would have been approved due to political preferences. For the planner, we identify strong preferences for popular approval. A politically-blind planner would have placed the stations closer to dense metro areas in California. |
| Keywords: | transportation, infrastructure, political economy |
| JEL: | H54 P11 R13 R4 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:1866&r=ure |
| By: | Erkut, Hande; Reuben, Ernesto |
| Abstract: | This paper studies the causal impact of social ties and network structure on helping behavior in organizations. We introduce and experimentally study a game called the 'helping game, ' where individuals unilaterally decide whether to incur a cost to help other team members when helping is a rivalrous good. We find that social ties have a strong positive effect on helping behavior. Individuals are more likely to help those with whom they are connected, but the likelihood of helping decreases as the social distance between individuals increases. Additionally, individuals who are randomly assigned to be more central in the network are more likely to help others. |
| Keywords: | helping, social ties, social networks, communication, organizations |
| JEL: | D23 D91 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wzbmbh:spii2023203&r=ure |
| By: | Hatton, Timothy J. (University of Essex) |
| Abstract: | From 1860 to 1913 the six colonies that became states of Australia strove to attract migrants from the UK with a variety of assisted passages. The colonies/states shared a common culture and sought migrants from a common source, the UK, but set policy independently of each other. This experience provides a unique opportunity to examine the formation of assisted immigration policies. Using a panel of colonies/states over the years 1862 to 1913 I investigate the association between measures of policy activism and a range of economic and political variables. Assisted migration policies were positively linked with government budget surpluses and local economic prosperity. They were also associated with political participation including the widening of the franchise and remuneration of members of parliament. While the reduction in travel time to Australia reduced the need for assisted migration, slumps in the UK increased the take-up of assisted passages. |
| Keywords: | transatlantic migration, steam ships, voyage times |
| JEL: | F22 O33 N73 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16274&r=ure |
| By: | Yoshitaka Ogisu (Graduate School of Economics, Kobe University and Junir Research Fellow, Research Institute for Economics & Business Administration (RIEB), Kobe University, JAPAN) |
| Abstract: | Social networks certainly play an important role in labor market outcomes. In particular, the structures affect inter-group inequality via referral hiring. Through the network effects, while workers surely get premiums from the group to which they belong, they may get premiums or penalties from other groups than their own. Young workers do not obtain sufficient network premiums since referrals cannot be used well due to the higher unemployment rates of their friends. As time goes by, the network structure of each generation of course changes. In other words, not only premiums from their own network group but also those from the other network groups, or the spillovers from other generations, change over time. However, these changes in intra- and inter-group network effects have been rather overlooked so far. In this paper, we compute the network premiums for each generation in a search and matching model, and clarify which generation benefits the most from time-varying networks called temporal networks. New connections are generated proportional to the number of friends of each worker over time, while the existing connections are broken at a constant rate. Under this setting, workers get premiums or penalties depending on their network structures. On average, workers receive premiums from the overall network effects although they incur penalties from their network structures in wage and unemployment rates. |
| Keywords: | Referral hiring; Temporal network; Network structure; Intergenerational inequality |
| JEL: | E24 J31 J64 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2023-13&r=ure |
| By: | Tetsutaro Hatakeyama (Graduate School of Economics, Keio University) |
| Abstract: | We study sequential assignment systems in which objects are assigned to agents in multiple stages. While such systems are prevalent in real-life school choice and college admissions, Dur and Kesten (2019) show that these systems are neither non-wasteful nor straightforward in general. To overcome this negative observation, we consider a model in which the mechanism designer chooses an allocation schedule, i.e., in which stage to allocate each object, as well as the allocation mechanisms it uses within a system. Our analysis newly reveals that (i) in general, no allocation schedules avoid wastefulness/non-straightforwardness and (ii) a nonwasteful/straightforward allocation schedule exists if and only if the preference domain is "tiered." This result supports practices in which the tiered domain naturally arises (e.g., Chinese college admissions practice). However, this also highlights the difficulty of sequential assignments in more diverse preference domains. |
| Keywords: | sequential assignment system, non-wastefulness, straightforwardness, tiered domain |
| JEL: | C78 D47 D61 D78 |
| Date: | 2023–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:keo:dpaper:2023-012&r=ure |
| By: | Bütikofer, Aline (Dept. of Economics, Norwegian School of Economics and Business Administration); Dalla-Zuanna, Antonio (Bank of Italy); Salvanes, Kjell Gunnar (Dept. of Economics, Norwegian School of Economics and Business Administration) |
| Abstract: | This paper studies the consequences of the buildup of a new economic sector—the Norwegian petroleum industry—on investment in human capital. We assess both short-term and long-term effects for a broad set of educational margins, by comparing individuals in regions exposed to the new sector with individuals in unexposed regions. Importantly, we analyze how the effects and the mechanisms change as the sector develops. Our results indicate that an initial increase in the high school dropout rate is short-lived both because dropouts get their degrees later as adults, and because later-born cohorts adapt to the new needs of the industry by enrolling more in vocational secondary education. We also observe a decrease in academic high school and college enrollment except for engineering degrees. Financial incentives to both completing high school and field of study, are the most likely channels driving these effects. |
| Keywords: | Natural Resources; Education; Petroleum |
| JEL: | I20 J10 |
| Date: | 2023–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhheco:2023_015&r=ure |
| By: | Luca Colombo (Rennes School of Business, Rennes); Paola Labrecciosa (ESSCA School of Management (Paris Campus)); Agnieszka Rusinowska (CNRS, Paris School of Economics, Centre d'Economie de la Sorbonne) |
| Abstract: | We take a novel approach based on differential games to the study of criminal networks. We extend the static crime network game (Ballester et al., 2006, 2010) to a dynamic setting where criminal activities negatively impact the accumulation of total wealth in the economy. We derive a Markov Perfect Equilibrium (MPE), which is unique within the class of strategies considered, and show that, unlike in the static crime network game, the vector of equilibrium crime efforts is not necessarily proportional to the vector of Bonacich centralities. Next, we conduct a comparative dynamic analysis with respect to the network size, the network density, and the marginal expected punishment, finding results in contrast with those arising in the static crime network game. We also shed light on a novel issue in the network theory literature, i.e., the existence of a voracity effect. Finally, we study the problem of identifying the optimal target in the population of criminals when the planner's objective is to minimize aggregate crime at each point in time. Our analysis shows that the key player in the dynamic and the static setting may differ, and that the key player in the dynamic setting may change over time |
| Keywords: | differential games; Markov Perfect Equilibrium; criminal networks; Bonacich centrality; key player |
| JEL: | C73 D85 K42 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:22006r&r=ure |
| By: | Raffaele Filieri; Francesco Luigi Milone; Emilio Paolucci; Elisabetta Raguseo (Polito - Politecnico di Torino = Polytechnic of Turin , CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon) |
| Abstract: | This study investigates the impact of the COVID-19 pandemic on consumer booking behavior in the peer-to-peer accommodation sector. This study used a dataset composed of 2041, 966 raws containing 69, 727 properties located in all 21 Italian regions in the pre-and post-COVID-191. Results show that after the COVID-19 pandemic, consumers preferred P2P accommodations with price premiums and located in rural (versus urban) areas. Although the findings reveal a preference for entire apartments over shared accommodation (i.e., room, apartment), this preference did not change significantly after COVID-19 lockdowns. The contribution of this study lies in combining psychological distance theory and signaling theory to assess P2P performance in the pre-and post-COVID-19 periods. |
| Keywords: | COVID-19, Airbnb host, occupancy, price premium, construal theory, signaling theory |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04138938&r=ure |
| By: | Vitor Costa |
| Abstract: | I use matched employer-employee records merged with corporate tax information from 2003 to 2017 to estimate labor market-wide effects of mergers and acquisitions in Brazil. Labor markets are defined by pairs of commuting zone and industry sector. In the following year of a merger, market size falls by 10.8%. The employment adjustment is concentrated in merging firms. For the firms not involved in M&As, I estimate a 1.07% decline in workers earnings and a positive, although not significant, increase in their size. Most mergers have a predicted impact of zero points in concentration, measured by the Herfindahl-Hirschman Index (HHI). I spillover firms, earnings decline similarly for mergers with high and low predicted changes in HHI. Contrary to the recent literature on market concentration in developed economies, I find no evidence of oligopsonistic behavior in Brazilian labor markets. |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2306.08797&r=ure |
| By: | khothiibah, khoirunnisaa |
| Abstract: | Culinary tourism is a form of travel or tourist visit that has a main focus on tasting, exploring, and enjoying food and drinks that are typical of a particular area or place, while folk entertainment refers to various forms of traditional entertainment held by the local community as part of their culture. Tourism is a sector that has an important role in the economic development of a region. This research is focused on the concept of "Minggon Jatinan" in the context of culinary tourism and folk entertainment in Batang. Culinary tourism and folk entertainment are tourism sector that has great potential to increase regional income, preserve local culture, and create economic opportunities for local communities. This study uses the field study method to collect the necessary data. In the field study process, researchers will be directly involved in observations, interviews, and data collection related to Minggon Jatinan in Batang. The results of this study state that culinary tourism and folk entertainment are tourism sector that has great potential to increase regional income, preserve local culture, and create economic opportunities for local communities. |
| Date: | 2023–06–18 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:atfu2&r=ure |
| By: | Shirin, Farzana |
| Keywords: | Labor and Human Capital, International Development, Teaching/Communication/Extension/Profession |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335793&r=ure |
| By: | Monica Deza; Thanh Lu; Johanna Catherine Maclean; Alberto Ortega |
| Abstract: | We study the effect of community access to behavioral health (mental health and substance use disorders) treatment on police officer safety, which we proxy with on-duty assaults on officers. Combining agency-level data on police officer on-duty assaults and county-level data on the number of treatment centers within the community that offer behavioral health treatment, we estimate two-way fixed-effects regressions and find that that an additional four centers per county (average increase) leads to a 1.3% reduction per police agency in on-duty assaults against police officers. Previously established benefits of access to treatment on behavioral health extend to the work environment of police officers. |
| JEL: | I10 I12 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31391&r=ure |
| By: | Julia Hatamyar; Christopher F. Parmeter |
| Abstract: | At various stages during the initial onset of the COVID-19 pandemic, various US states and local municipalities enacted eviction moratoria. One of the main aims of these moratoria was to slow the spread of COVID-19 infections. We deploy a semiparametric difference-in-differences approach with an event study specification to test whether the lifting of these local moratoria led to an increase in COVID-19 cases and deaths. Our main findings, across a range of specifications, are inconclusive regarding the impact of the moratoria - especially after accounting for the number of actual evictions and conducting the analysis at the county level. We argue that recently developed augmented synthetic control (ASCM) methods are more appropriate in this setting. Our ASCM results also suggest that the lifting of eviction moratoria had little to no impact on COVID-19 cases and deaths. Thus, it seems that eviction moratoria had little to no robust effect on reducing the spread of COVID-19 throwing into question its use as a non-pharmaceutical intervention. |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2307.00251&r=ure |
| By: | Munawaroh, Isvana |
| Abstract: | The purpose of writing this article is to find out the implementation of the entrepreneurship program market day as a means of building character in SD N Gayam 5 Sukoharjo. Character education that must be taught in schools and entrepreneurship education which is also important for students' provision is a combination of activities that can instill character values in students. This research is a type of qualitative descriptive research using observation and documentation methods. The results of this study are that each stage of the activity teaches character education to students. The characters that are built are the characters of discipline, cooperation, responsibility, independence, honesty, creativity, and self-confidence. In cultivating this character the role of the teacher is needed to direct and guide students. In its application, planting character with activities market day there are still obstacles that become challenges for students and become evaluations for activities market day furthermore. |
| Date: | 2023–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:rvzs2&r=ure |
| By: | Mathias Bühler (LMU Munich); Leonhard Vollmer (LMU Munich); Johannes Wimmer (LMU Munich) |
| Abstract: | Does access to education facilitate the emergence of a human capital elite from which social activists, and thus, social change can emerge? Assembling a city-level panel of the political, intellectual, and economic elite throughout German history, we find that the opening of schools providing secondary education for women increased their representation among the human capital elite. These elites challenged the status quo and developed critical ideas that resonated in cities with higher human capital, connecting women to form a social movement. We find no evidence of other city-specific indicators of economic and gender-specific cultural change affecting our results. Differential returns to education are also unrelated to the increasing representation of women among the human capital elite, as the opening of gender-specific schools has no impact on the opposite gender. |
| Keywords: | female education; human capital; women's rights; |
| Date: | 2023–07–04 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:407&r=ure |
| By: | Holger Graf (Friedrich Schiller University Jena, Economics Department); Hoda Mohamed (Friedrich Schiller University Jena, Economics Department) |
| Abstract: | Does exporting intermediate goods induce learning from importers? In this paper, we examine to what extent learning from German industries can be explained by knowledge spillovers, channeled through the export of intermediate goods. Our study is based on a sample of 27 German trade partners in 14 manufacturing industries for the period 2004 to 2016. Using data on patent citations and trading in intermediate goods, we find support for the widely known “learning-by-exporting†hypothesis. Our analyses reveal that citations to German patents are positively related to exported intermediate goods weighted by German R&D expenditure. The relationship between these spillovers and learning seems to be particularly strong in certain industries. We also show that the level of absorptive capacity of the exporting trade partner, as measured by the number of researchers involved in R&D activities, plays a role in mediating these spillovers. |
| Keywords: | GVC, trade, intermediate goods, learning-by-exporting, knowledge spillovers |
| JEL: | F14 O14 O32 O33 |
| Date: | 2023–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2023-008&r=ure |
| By: | Zhaobo Zhu (Audencia Business School); Zhenyan Qi (Shenzhen University [Shenzhen]); Yi Jin (MUST - Macau University of Science and Technology) |
| Abstract: | This paper provides experimental evidence that people in China have strong familiarity bias identified by hometown and education locations when making merger and acquisition decisions. Emotions and genders could affect the role of familiarity bias in merger and acquisition decisions. |
| Keywords: | Familiarity bias, Home bias, Emotion, Merger and acquisition decisions |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04129543&r=ure |
| By: | Valdebenito, Rocio |
| Keywords: | Labor and Human Capital, Institutional and Behavioral Economics, Research Methods/Statistical Methods |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335725&r=ure |
| By: | Matthias Fleckenstein; Francis A. Longstaff |
| Abstract: | We study the valuation of state-issued tax-exempt municipal bonds and find that there are significant convenience premia in their prices. These premia parallel those identified in Treasury markets. We find evidence that these premia are tax related. Specifically, the premia are related to measures of tax and fiscal uncertainty, forecast flows into state municipal bond funds, and are directly linked to outmigration from high-tax to low-tax states and to other measures of tax aversion such as IRA and retirement plan contributions. These results suggest that investors are willing to pay a substantial premium to avoid taxes. |
| JEL: | G12 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31389&r=ure |
| By: | Anna-Katharina Lenz; Martin Valdivia |
| Abstract: | Do behavioral biases and the distortions generated by the presence of organized crime limit microentrepreneurs’ adoption of growth-oriented business practices? We explore this question in a field experiment with informal microentrepreneurs in which we provide informational visits and text messages about the advantages and convenience of a formalization program. All microentrepreneurs operated in Complexo Maré, a Favela in Rio de Janeiro, Brazil, where an important contextual factor was the presence of organized crime groups. After a recent state intervention, violence had increased in the intervened territories. Our average results suggest that while informative in-person visits do increase the knowledge about the formalization program and even the interest in formalizing, complementing the intervention with reminding messages is needed to increase business formalization. That is, treatment groups that received either information sessions or text messages show no effect, while those receiving both treatments show an increase in formalization by 8.5 percentage points. We also find, however, that these effects of the nudging intervention can be cancelled out by the distortions imposed by organized crime, in particular, by the mobility restrictions they often use to control their territories. We interpret these results as evidence in support of the importance of behavioral interventions such as reminder messages, to overcome limited attention and procrastination biases by microentrepreneurs, but also as an indication of the impacts that organized crime may have on adopting good business practices. |
| Keywords: | Entrepreneurship, Behavioral Biases, Formalization, Nudges, Attention Allocation, Development |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:apc:wpaper:194&r=ure |
| By: | Bignardi, Giacomo; Ahmed, Saz; Bennett, Marc Patrick (University of Cambridge); Dunning, Darren Lee; Griffiths, Kirsty; Sakhardande, Ashok; Leung, Jovita Tung (University College London); Piera Pi-Sunyer, Blanca (University College London); Kuyken, Willem; Dalgleish, Tim |
| Abstract: | The COVID-19 pandemic prompted governments worldwide to introduce social distancing measures, including school closures and restrictions on in-person socialising. However, adherence to social distancing was challenging for many, and particularly for adolescents, for whom social interaction is crucial for development. The current study aimed to identify individual-level predictors of adherence to social distancing in a longitudinal sample of 460 adolescents aged 11-20 years. Participants completed detailed pre-pandemic assessments, including mental health and well-being, altruism, delayed reward discounting, rejection sensitivity, prosociality and susceptibility to prosocial and anti-social influence. Bayesian ordinal regression models were used to predict adherence to social distancing from predictors. The results indicated that higher levels of prosociality, altruism and lower susceptibility to anti-social influence were associated with higher adherence to social distancing. These findings have implications for understanding how adolescents comply with public health guidelines, highlighting the role of social influence and peer norms. |
| Date: | 2023–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:k3eq6&r=ure |
| By: | Iftikhar, Ilaria Giannoccaro & Anas |
| Abstract: | The ripple effect refers to disruption propagation across the supply network affecting its global performance. To cope with it, supply networks should be resilient. This study investigates the drivers of supply network resilience, viewed as adaptive capacity to disruptions, focusing on trust and investigating the moderating role of network topology on the relationship between trust and resilience. We first develop an NK agent-based model of the supply network to simulate resilient performance. Then, a simulation analysis is carried out, to assess the effect of trust on the resilience of supply networks displaying different complex topologies. Our results confirm that trust positively affects supply network resilience; however, across the different topologies, the beneficial effect of trust varies. In particular, we find that trust is beneficial at most for the following topologies: local, small-world, block-diagonal, and random. For centralised, diagonal, and hierarchical topologies improving trust increases resilience at a moderate level. We also find that, as the frequency of disruptions rises, the positive effect of trust on resilience decreases. Managerial implications of the main findings are finally discussed |
| Date: | 2023–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:2spt3&r=ure |
| By: | Rodrigo Oliveira; Alei Santos; Edson R. Severnini |
| Abstract: | Affirmative action in higher education can lead to mismatch, where students admitted through preferential treatment struggle academically due to inadequate preparation before college. Although some students may face initial challenges, by providing access to quality education for talented individuals who might have otherwise been overlooked due to systemic disadvantages, these programs may enable students to bridge the gap and catch up to their peers. In this study, we examine the effects of a quota-type affirmative action policy on gaps in college outcomes between potential beneficiaries and non-beneficiaries. Using comprehensive administrative data from a leading Brazilian university which implemented affirmative action in 2005, we find that compared to their non-quota peers, potential quota beneficiaries are less likely to progress smoothly through college and less likely to graduate, a result that is mostly driven by those who would not be admitted to the university otherwise. Notably, however, most of these differences shrink as the students progress through college, suggesting a catch-up effect between those groups. While potential quota students initially face challenges, resulting in a reduced course load in their early college years, they compensate by taking more credits in later years to ultimately graduate. |
| JEL: | I23 I24 I28 J15 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31403&r=ure |
| By: | Lee, Zeewan; Fong, Joelle H. |
| Abstract: | Immigrants in a destination country both alter the prospects of economic development and influence the livelihood of natives. Using data from 10 Asian countries in the 2018-2020 World Value Survey (WVS), we provide new evidence regarding the impact of skill-driven labor market competition on natives’ attitudes toward immigrants. Linking information on occupation-specific human capital accumulation from O*NET to WVS, we explore granular dimensions of natives’ skills and their implications for labor market competition and vulnerability. To account for the possibility of reverse causality (selection in natives’ occupational choices resulting from natives’ inherent preferences toward immigrants), we run the two-stage instrumental variable estimator adopting the control function approach. Holding educational levels constant, we find that natives with greater manual skills and fewer communication skills are more likely to be pro-immigration. We also find that the links between manual skills and attitudes are driven primarily by the level of flexibility in natives’ skills, while the negative impacts of communication skills are driven by natives’ writing abilities. Our results offer important insights for policymakers in Asia to establish nuanced immigration policies and skill-development programs that account for their impacts on intergroup labor market competition and social cohesion. |
| Keywords: | attitudes, immigration, labor market competition, skills, human capital accumulation, control function approach |
| JEL: | F66 F68 J61 J68 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:273317&r=ure |
| By: | Eric Auerbach; Yong Cai |
| Abstract: | Social disruption occurs when a policy creates or destroys many network connections between agents. It is a costly side effect of many interventions and so a growing empirical literature recommends measuring and accounting for social disruption when evaluating the welfare impact of a policy. However, there is currently little work characterizing what can actually be learned about social disruption from data in practice. In this paper, we consider the problem of identifying social disruption in a research design that is popular in the literature. We provide two sets of identification results. First, we show that social disruption is not generally point identified, but informative bounds can be constructed using the eigenvalues of the network adjacency matrices observed by the researcher. Second, we show that point identification follows from a theoretically motivated monotonicity condition, and we derive a closed form representation. We apply our methods in two empirical illustrations and find large policy effects that otherwise might be missed by alternatives in the literature. |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2306.15000&r=ure |