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on Urban and Real Estate Economics |
| By: | Gabriel M. Ahlfeldt; Nathaniel Baum-Snow; Remi Jedwab |
| Abstract: | Tall buildings are central to facilitating sustainable urbanization and growth in cities worldwide. We estimate average elasticities of city population and built area to aggregate city building heights of 0.12 and -0.17, respectively, indicating that the largest global cities in developing economies would be at least one-third smaller on average without their tall buildings. Land saved from urban development by post-1975 tall building construction is over 80% covered in vegetation. To isolate the effects of technology-induced reductions in the cost of height from correlated demand shocks, we use interactions between static demand factors and the geography of bedrock as instruments for observed 1975-2015 tall building construction in 12, 877 cities worldwide, a triple difference identification strategy. Quantification using a canonical urban model suggests that the technology to build tall generates a potential global welfare gain of 4.8%, of which only about one-quarter has been realized. Estimated welfare gains from relaxing existing height constraints are 5.9%in the developed world and 3.1% in developing economies. |
| Keywords: | urban density, international buildings heights, skyscrapers, tall buildings, sustainable urbanization, city growth, commercial real estate, housing supply, urban sprawl, land savings, housing affordability, geographical constraints, environment |
| Date: | 2023–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1959&r=ure |
| By: | Justyna Tanas |
| Abstract: | The article aims to identify the revealed preferences of buyers in the secondary housing market in Warsaw. The study was conducted based on data on real estate transactions made in the secondary market in 2016-2020 in Warsaw. The data was supplemented with information from the land register (section II - ownership), the real estate cadastre and using Google Street View. Based on hedonic models and unique datasets covering more than 25, 000 observations, preferences were investigated by gender, age and marital status. |
| Keywords: | buyers' preferences; housing market; revealed vs. stated preferences |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_329&r=ure |
| By: | Ketel, Nadine (Vrije Universiteit Amsterdam); Oosterbeek, Hessel (University of Amsterdam); Sovago, Sandor (University of Groningen); van der Klaauw, Bas (Vrije Universiteit Amsterdam) |
| Abstract: | We combine data from the Amsterdam secondary-school match with register data and survey data to estimate the effects of not being assigned to one's first-ranked school on academic outcomes and on a wide range of other outcomes. For identification we use that secondary-school assignment in Amsterdam is based on the deferred acceptance mechanism with ties broken by lottery numbers. Losing the admission lottery for one's first-ranked school affects the characteristics of the assigned school, the home-school distance and the characteristics of teachers and peers. Despite the different school environment, we find no negative effects on academic outcomes, nor on any other outcome, including: time on homework, help with homework, attitudes towards school, awareness of parents, behavior inside school, behavior outside school, school satisfaction, civic engagement, having friends, and students' personality. It seems therefore that the concerns that parents of lottery losers express about their children's school assignment are based on the characteristics of schools, teachers and peers and not on academic or non-academic outcomes. |
| Keywords: | secondary school choice, non-academic outcomes, admission lotteries |
| JEL: | I21 I24 C26 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16591&r=ure |
| By: | Francisco Nobre (University of Surrey, School of Economics); Diogo Gonçalves (University of Bristol, School of Economics); Ronize Cruz (University of Coimbra, Centre for Business and Economics and Faculty of Economics) |
| Abstract: | In this paper, we make use of the rapid expansion of short-term rentals in Portugal, based on a policy change in 2014, to estimate the effects on house prices. Using a novel dataset consisting of property transaction data, from 2010 to 2017, for the metropolitan areas of Lisbon and Porto, we causally identify the impact of these reforms through a two-way fixed effects model, at the quarterly level, where we control for property specific characteristics and location and time fixed effects. The evidence suggests that a one-unit increment in the number of local lodging establishments results in a 0.17% increase in the value of transaction, which is ensured by a set of robustness exercises. Stronger effects are found for properties with four or more bedrooms, owned by citizens outside of the European Union, in the municipality of Porto and at the upper quantiles. We also document a decrease in the number of transactions of new buildings and a positive effect on the value of commercial properties. |
| Keywords: | Policy Analysis, Housing Market, Portugal, Short-Term Accommodation. |
| JEL: | R12 R23 R30 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:gmf:papers:2023-04&r=ure |
| By: | Peter, Julia; Übelmesser, Silke |
| JEL: | C90 D83 F22 J15 R11 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277664&r=ure |
| By: | Ramon Sotelo |
| Abstract: | German and especially Berlin went through an interesting period within housing policy after unification neglecting the elasticity of the housing demand. After different forms of rent regulations and other restrictions to the supply side of the market, socialising large parts of the housing stocks is discussed as the next step to leave market economy in Berlin. This paper tells the story of Housing Policy in Berlin after unification. |
| Keywords: | Berlin; houcins policy; Rent Control |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_164&r=ure |
| By: | Buscha, Franz; Gorman, Emma; Sturgis, Patrick; Zhang, Min |
| Abstract: | Home ownership is the largest component of wealth for most households and its intergenerational transmission underpins the production and reproduction of economic inequalities across generations. Yet, little is currently known about ethnic differences in the intergenerational transmission of housing tenure. In this paper we use linked Census data covering 1971-2011 to document rates of intergenerational housing tenure mobility across ethnic groups in England and Wales. We find that while home ownership declined across all ethnic groups during this period, there were substantial differences between them. Black, Pakistani and Bangladeshi households experienced the strongest intergenerational link between parent and child housing tenure, and Black individuals had the highest rates of downward housing mobility. In contrast, those of Indian origin had homeownership rates similar to White British families, and a weaker link between parent and child housing tenure. These patterns are likely to exacerbate existing gradients in other dimensions of ethnicity-based inequality, now and in the future. |
| Keywords: | housing; social mobility; wealth transmission; ethnicity; ES/R00627X/1 |
| JEL: | J62 R31 P46 |
| Date: | 2023–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120674&r=ure |
| By: | Anthony Lepinteur; Giorgia Menta; Sofie R. Waltl |
| Abstract: | Participants to an online study in Luxembourg are presented with fictitious real-estate advertisements and tasked to make an offer for each of them. A random subset is also shown sellers’ names that are strongly framed to signal their origins. Our randomised procedure allows us to conclude that, keeping everything else constant, a seller with a sub-Saharan African surname is systematically offered lower prices. Our most conservative estimates suggest that the average racial appraisal penalty is equal to roughly EUR 20, 000. This figure is highly heterogeneous and can amount up to around EUR 58, 000. Last, we provide evidence suggesting that this appraisal bias may very well pass through onto the final sales price and that it may be due to statistical discrimination. |
| Keywords: | Racial Discrimination; Housing; Randomised Online Experiment |
| JEL: | J15 R21 R31 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2023-09&r=ure |
| By: | Julia Peter (Friedrich Schiller University Jena); Silke Uebelmesser (Friedrich Schiller University Jena, and CESifo) |
| Abstract: | Attitudes toward immigrants play a crucial role in voting behaviour and political decision-making. Such attitudes are shaped by individual characteristics, but the regional environment may also be important. This paper examines how individual attitudes toward immigrants are related to the economic, political, and social environment. We use individual-level data based on a large-scale representative survey and district-level administrative data. Specifically, we examine regional variation in economic growth, voting patterns, and characteristics of the immigrant population and their relation to beliefs about and attitudes toward immigrants. We also use an information experiment in which information about the actual characteristics of the immigrant population in Germany is provided and assess its impact on attitudes toward immigrants in the regional context. Our results suggest that the impact of the environment - over and above individual characteristics - is small and depends on the type of attitude. |
| Keywords: | attitudes, immigrants, regional determinants, economic concerns, policy preferences |
| JEL: | C90 D83 F22 J15 R11 R23 |
| Date: | 2023–11–22 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2023-020&r=ure |
| By: | Chen, Liming (Asian Development Bank); Hasan, Rana (Asian Development Bank); Jiang, Yi (Asian Development Bank); Parkhomenko, Andrii (University of Southern California) |
| Abstract: | We study the interaction between transit improvements and land use policies in the context of Bengaluru, one of India’s largest cities. The city inaugurated a metro system in 2011. Yet it has low building heights even near metro stations, reflecting low floor-area ratio limits. We construct a rich dataset that includes information on travel times between 198 wards, parcel-level land use, and building heights from satellite images. We then build a quantitative spatial model where heterogeneous workers choose among different commuting modes. The simulations show that the metro system increases citywide output and welfare, even net of costs. However, the net gains are several times larger when floor-area ratio limits are relaxed near metro stations (transit-oriented development) or in the city center. Moreover, the metro and transit-oriented development are complementary—their joint effect on incomes, prices, and welfare is greater than the combined effect of the two policies implemented separately |
| Keywords: | : urban; transit; land use; building heights; transportation; transit-oriented development; spatial equilibrium; development; India |
| JEL: | R31 R33 R41 R42 R52 |
| Date: | 2023–11–09 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0702&r=ure |
| By: | Pin-Te Lin; Ivelin Stankov |
| Abstract: | This research investigates integration between housing and stock markets across 11 countries. Using total return indices over 1870 to 2015, results around the globe consistently show that stock and housing markets are integrated with a bilateral causal relationship. Our results have important implications for portfolio diversification strategy and capital-switching effect hypothesis. |
| Keywords: | Causality; housing; Integration; Stock |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_291&r=ure |
| By: | Julian di Giovanni; Claire Kramer; Ambika Nair |
| Abstract: | Hurricane Ida, which struck New York in early September 2021, exposed the region’s vulnerability to extreme rainfall and inland flooding. The storm created massive damage to the housing stock, particularly low-lying units. This post measures the storm’s impact on basement housing stock and, following the focus on more-at-risk populations from the two previous entries in this series, analyzes the attendant impact on low-income and immigrant populations. We find that basements in select census tracts are at high risk of flooding, affecting an estimated 10 percent of low-income and immigrant New Yorkers. |
| Keywords: | FEMA; floods; flood risk; Hurricane Ida; low-and moderate-income (LMI); LMI; New York |
| JEL: | Q54 R10 |
| Date: | 2023–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:97327&r=ure |
| By: | Yuan Zhu |
| Abstract: | Based on search cost and information asymmetry and using a two-level setting with REITs, we want to figure out whether there is a significant total return performance difference between local and overseas properties among A-REITs. The results are consistent with search cost theory and then we want to explore the reason why the REITs managers still like to conduct overseas acquisition under property-level return performance disadvantage. We compare A-REITs which hold overseas properties (International A-REITs) and A-REITs which just hold local properties (Pure A-REITs) and further explain this by our analysis of marginal investors’ behavior. |
| Keywords: | Information Asymmetry; Portfolio return; REITs; Search cost |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_348&r=ure |
| By: | Shu Ling Chiang; Ming Shann Tsai |
| Keywords: | Idiosyncratic risk; Mortgage Insurance; Systematic Risk; Valuation |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_165&r=ure |
| By: | Alexandros Skouralis; Nicole Lux; Mark Andrew |
| Keywords: | Climate Change; flood risk; Flood Risk Discount; UK Property Prices |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_79&r=ure |
| By: | Contini, Dalit (University of Torino); Di Tommaso, Maria Laura (University of Torino); Maccagnan, Anna (University of Torino); Mendolia, Silvia (Frisch Center for Economic Research) |
| Abstract: | This paper focuses on the gendered choice of high school in the Italian context, where children are tracked at age 14 and are free to choose the type of school, with no binding teacher recommendation or ability restriction. It is therefore a context in which preferences, however influenced by different factors, are freely expressed, without any institutional constraints imposed on the decision-making process. Previous literature has mainly analysed gendered educational choices by focusing on the field at later stages in life. The transition from lower secondary to upper secondary school is particularly relevant for children who do not go on to university and can help to understand gender segregation in low and middle-level occupations. We analyse the role of school performance in mathematics and Italian (teacher grades and standardized test scores), the position in the class ranking, the comparative advantage in one subject and find that, while school performance hardly explains the gender gap for the children with low educated parents, it explains part of the gender gap observed for children from more advantaged backgrounds. |
| Keywords: | gender gap, high school choices, school performance, STEM fields |
| JEL: | I21 I24 J16 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16584&r=ure |
| By: | Dahl, Christian M. (University of Southern Denmark); Hansen, Casper W. (University of Copenhagen); Jensen, Peter S. (Linnaeus University); Karlsson, Martin (University of Duisburg-Essen); Kühnle, Daniel (University of Duisburg-Essen) |
| Abstract: | This study examines the impact of primary-school closures during the 1918 Pandemic in Sweden on mortality and long-term outcomes of school children. Using the universe of death certificates from 1914-1920 and newly-collected data on school closures across 2, 100 districts, we conduct high-frequency event studies at both weekly and daily intervals to show that schools closed in response to local surges in influenza deaths. Faster implementation of school closures significantly reduced peak mortality rates among primary-aged individuals. However, our long-run analysis of approximately 100, 000 affected children per grade shows precisely estimated, minor and mostly insignificant effects on longevity, employment, and income. |
| Keywords: | short- and long-run effects, human capital, mortality, 1918 Pandemic, school closures |
| JEL: | J10 N34 I10 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16592&r=ure |
| By: | Lars E.O. Svensson |
| Abstract: | According to ECB (2023) and European Systemic Risk Board (2022), Swedish owner-occupied housing (OOH) was overvalued by about 55% in 2021q2, the largest overvaluation in the EU and EEA; according to European Commission (2023c), by about 30% in 2022. These assessments affect warnings and recommendations issued for Swedish economic policy and the shocks in EBA stress tests of Swedish banks. But these large overvaluation assessments are due to the use of misleading indicators: the deviations of price-to-income (PTI) and price-to-rent ratios from their historical averages. It is shown that according to the appropriate indicator, the user-cost-to-income (UCTI) ratio, Swedish owner-occupied houses have since 2010 instead become increasingly undervalued (not overvalued), by about 30% in 2019q4. Due to rising mortgage rates, they are less undervalued in 2023q2, but still about 20%. For Sweden, the UCTI and PTI indicators are in fact strongly negatively correlated and have opposite signs. If the UCTI indicator is right, the PTI indicator is consistently wrong. Taking the average of the two indicators is not a good idea. The PTI ratio disregards mortgage rates and other housing costs and lacks scientific support. According to a large housing literature, it is not the purchase price but the user cost that is the appropriate measure of the cost of living in OOH, the cost of the housing services that the OOH delivers. New improved estimates of the user cost are constructed, including an adjustment for a preference shift during the coronavirus crisis in favor of larger and better housing. The valuation assessments of the ECB, the ESRB, the Commission, the OECD, and the IMF are scrutinized and compared. The problem of misleading indicators and overvaluation assessments—and resulting distorted warnings and recommendations—is not restricted to Sweden but concerns several other countries in the European Union. |
| JEL: | E43 G21 G50 R21 R30 R31 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31862&r=ure |
| By: | Matteo Crosignani; Hanh Le |
| Abstract: | We find that banks differ in their propensity to lend to minorities based on their stakeholders’ aversion to inequality. Using mortgage application data collected under the Home Mortgage Disclosure Act, we document a large and persistent cross-sectional variation in banks’ propensity to lend to minorities. Inequality-averse banks have a higher propensity to lend to borrowers in high-minority areas and, within census tracts, to non-white borrowers compared to other banks. This higher propensity (i) is not explained by selection of applicants, (ii) allows these banks to retain and attract their inequality-averse stakeholders, and (iii) does not predict worse ex-post loan performance. |
| Keywords: | inequality aversion; mortgage lending; minority borrowers; Racial discrimination |
| JEL: | E51 G21 J15 |
| Date: | 2023–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsr:97349&r=ure |
| By: | Carlos Canizares Martinez (National Bank of Slovakia) |
| Abstract: | This study aims to empirically identify the state of the US housing market and establish a countercyclical state-dependent macroprudential policy rule. I do so by estimating a Markov switching model of housing prices, in which mortgage debt affects house prices nonlinearly and drives state transition probabilities. Second, I propose a state-contingent policy rule fed with the probability of being in each state, which I apply to setting a housing countercyclical capital buffer, a mortgage interest deduction, and a dividend payout restriction. Finally, I show that such hypothetical tools contain early warning information in a forecasting exercise to predict the charge-off rates of real estate residential loans and a financial stress index. The significance of this study is that it informs policymakers about the state of the housing market mechanically, while also providing a general rule to implement a state-contingent and timely macroprudential policy. We propose a new method of dealing with the end point problem when filtering economic time series. The main idea is to replace filtered quarterly observations at the end of the sample with static forecasts from a MIDAS regression using higher frequency time series. This method is capable to improve stability of output gap estimates or other cyclical series, as we confirm by empirical analysis on selected CEE countries and the United States. We find that stability may still be violated due to structural breaks in business cycles, or by an excessive amount of short-term noise. While MIDAS regressions have the potential to improve output gap estimates compared to the HP filter approach, the country-specific circumstances play a considerable role and need to be considered. |
| JEL: | C22 C24 G51 R21 R31 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:svk:wpaper:1101&r=ure |
| By: | Pike, Susan; Handy, Susan |
| Abstract: | This study explores the factors associated with observed changes in transportation mode shares over the period from 2012 to 2017 (corresponding with the period between the two most recent household travel surveys conducted in California). In contrast with the goals of the California Department of Transportation and the State Transportation agency, walking, biking, and using transit all decreased during this period, and driving and the use of personal vehicles increased. There are a number of factors typically associated with transportation mode choices, including socio-demographics, attitudes, life stages, land use and infrastructure availability. Further, large scale events may also have an effect on travel trends; for example, the Great Recessionmay have impacted individuals’ ability to own a personal vehicle and therefore increased the use of alternative means of transportation during the years leading up to our survey period. Similarly, the 2013 passage of legislation allowing for non-citizens to obtain a driver’s license in the state of California, may have impacted mode shares over the study period. This paper compares these and other factors impacting mode shares in 2012 and in 2017 to answer part of the question about why we see this decrease in the use of active modes over this period and what types of planning, programs, and policy actions may help to reverse this trend and get California back on track to increase walking, biking and the use of public transit. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Travel mode shares, Changes in walking and biking, California mode shares, NHTS, CHTS, Survey Methods |
| Date: | 2023–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt9cg0f12x&r=ure |
| By: | Daniel Oto-Peralías (Department of Economics, Universidad Pablo de Olavide) |
| Abstract: | This paper explores the link between the historical presence of communal goods and the emergence of social capital. I conduct a survey to compare individuals from a town where communal lands have persisted since medieval times with individuals from neighboring-similar towns. I find that individuals exposed to communal lands have higher local social capital as they trust their neighbors more, have more local altruism, are more interested in local politics, and have a better knowledge about the town’s politics and history. Importantly, the effect is mainly present in individuals with family roots in the town, and there is no evidence of a positive effect on social capital beyond the local community. |
| Keywords: | common lands, social capital, history, Spain. |
| JEL: | N36 D64 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pab:wpaper:23.09&r=ure |
| By: | Aron Culotta; Ginger Zhe Jin; Yidan Sun; Liad Wagman |
| Abstract: | Consumer reviews, especially those expressing concerns of product quality, are crucial for the credibility of online platforms. However, reviews that criticize a product or service may also dissuade buyers from using the platform, creating an incentive to blur the visibility of critical reviews. Using Airbnb and official crime data in five major US cities, we find that both reviews and self experiences concerning the safety of a listing's vicinity decrease guest bookings on the platform. Counterfactual simulations suggest that a complete removal of vicinity safety reviews (VSR) would hurt guests but increase revenues from reservations on Airbnb, with positive sorting towards listings formerly with VSR. Conversely, incorporating VSR in a listing's overall ratings or highlighting VSR could generate opposite effects. Either way, the interests of consumers are not always aligned with the interests of a revenue-centric platform. Because VSR are more closely correlated with official crime statistics in low-income and minority neighborhoods, our findings suggest that suppressing or highlighting VSR would have different effects on different neighborhoods. |
| JEL: | D83 L15 R3 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31855&r=ure |
| By: | Bob Martens |
| Abstract: | The offer of programs related to education and training in the field of real estate is widespread in Europe. This applies to the duration, mode of delivery, prerequisites for admission, etc. This contribution will consider the relation between (part-time) real estate education in conjunction with an internship. Some study programmes define this as a prerequisite in the curriculum. However, if this is not the case, the advantage of professional work can be regarded as an add-on. On top of this others incentives serve as a driving force for further qualification in a dual mode. |
| Keywords: | Dual education; Mentoring; Profesional experience; Traineeship |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_284&r=ure |
| By: | Gartzou-Katsouyanni, Kira |
| Abstract: | Fostering cooperation among local stakeholders is a core aim of place-based policies, and it can generate economic benefits and help restore a sense of agency in left-behind communities. However, relatively little is known about how to induce local cooperation in low-trust, institutionally weak areas. This article develops an integrated theoretical framework to help diagnose the precise obstacles to cooperation faced in different types of adverse settings. Such a diagnosis can help design tailored local- and macro-level policies to address the obstacles to local cooperation. The utility of the proposed framework is demonstrated using a medium-n comparative case study design. |
| Keywords: | local cooperation; place-based policies; trust; entrepreneurship; local governance; left-behind places; ES/ W00710X/1; Hellenic Bank Association Postdoctoral Fellowship at the Hellenic Observatory of the London School of Economics and Political Science (LSE) (2023 |
| JEL: | J1 |
| Date: | 2023–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120795&r=ure |
| By: | Gómez-Lobo, Andrés; Oviedo, Daniel |
| JEL: | J1 N0 |
| Date: | 2023–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120691&r=ure |
| By: | Grohmann, Tobias |
| Abstract: | Theory suggests that cultural similarity increases migration flows between countries. This paper brings best practices from the trade gravity literature to migration to test this prediction. In my preferred specification, I use lags of time-varying similarity variables in a panel of international and domestic migration flows (>200 countries, 1990-2019, 5-year intervals) and estimate a theory-consistent structural gravity model with origin-year, destination-year, and corridor fixed effects. The results do not show the hypothesized positive effect of cultural similarity on migration. Instead, religious similarity has a significant negative effect on migration, while WVS-based attitudinal similarities regarding individualism, indulgence, and trust are insignificant. Additional results suggest that cultural selection and sorting can explain these findings, where migrants are attracted by destinations that are culturally similar to their personal cultural beliefs rather than the average cultural beliefs of their home country. Results of a two-stage fixed effects (TSFE) procedure and a gravity-specific matching estimator, which both allow the estimation of time-invariant similarity variables, confirm that the relationship between cultural similarity and migration is more nuanced than previously thought. |
| Keywords: | international migration, culture, gravity model of migration |
| JEL: | F22 O15 Z10 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1349&r=ure |
| By: | Mathilde Salin |
| Keywords: | Environment; Land Use; Transition Risks; Urban Sprawl |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_313&r=ure |
| By: | Dobis, Elizabeth A.; Cromartie, John; Williams, Ryan; Reed, Kyle |
| Abstract: | Mountains and other topographic features with variable elevation provide benefits to residents and visitors but may also impose barriers to travel and restrict development. The authors developed two national representations of relative topographic variability for census tracts: the Area Ruggedness Scale characterizes overall ruggedness and the Road Ruggedness Scale characterizes ruggedness along roads. To understand variation of characteristics by terrain ruggedness, the authors analyzed population, population density, and income across road ruggedness categories, rurality, and regions in the United States. The authors found that as land becomes more rugged, population density decreases, more people live in rural locations, and more rural residents live in low-income census tracts. Ruggedness is distinct from rurality, but in locations that are both highly rugged and rural, unique challenges may arise. |
| Keywords: | Community/Rural/Urban Development, Land Economics/Use, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersrr:338942&r=ure |
| By: | Been-Lon Chen (Institute of Economics, Academia Sinica, Taipei, Taiwan); Zheng-Ze Lai (National Chengchi University); Shian-Yu Liao (Fu Jen Catholic University) |
| Keywords: | land prices, housing demand shocks, CES preferences, collateral constraints |
| JEL: | E3 E5 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:sin:wpaper:23-a005&r=ure |
| By: | Denise Cristina Bomtempo |
| Abstract: | The focus of this text is to discuss how geographical science can contribute to an understanding of international migration in the 21st century. To this end, in the introduction we present the central ideas, as well as the internal structure of the text. Then, we present the theoretical and methodological approach that guides the research and, in section three, we show the results through texts and cartograms based on secondary data and empirical information. Finally, in the final remarks, we summarize the text with a view to contributing to the proposed debate. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.09432&r=ure |
| By: | Luisa Gagliardi (Bocconi University, Italy); Enrico Moretti (University of California, Berkeley, USA); Michel Serafinelli (University of Essex, UK; Rimini Centre for Economic Analysis) |
| Abstract: | We investigate the employment consequences of deindustrialization for 1, 993 cities in France, Germany, Great Britain, Italy, Japan, and the United States. In all six countries we find a strong negative relationship between a city’s share of manufacturing employment in the year of its country’s manufacturing peak and the subsequent change in total employment, reflecting the fact that cities where manufacturing was initially more important experienced larger negative labor demand shocks. But in a significant number of cases, total employment fully recovered and even exceeded initial levels, despite the loss of manufacturing jobs. Overall, 34% of former manufacturing hubs–defined as cities with an initial manufacturing employment share in the top tercile–experienced employment growth faster than their country’s mean, suggesting that a surprisingly large number of cities was able to adapt to the negative shock caused by deindustrialization. The U.S. has the lowest share, indicating that the U.S. Rust Belt communities have fared relatively worse compared to their peers in the other countries. We then seek to understand why some former manufacturing hubs recovered while others didn’t. We find that deindustrialization had different effects on local employment depending on the initial share of college-educated workers in the labor force. While in the two decades before the manufacturing peak, cities with a high college share experienced a rate of employment growth similar to those with a low college share, in the decades after the manufacturing peak, the employment trends diverged: cities with a high college share experienced significantly faster employment growth. The divergence grows over time at an accelerating rate. Using an instrumental variable based on the driving distance to historical colleges and universities, we estimate that a one standard deviation increase in local college share results in a rate of employment growth per decade that is 9.1 percentage points higher. This effect is in part explained by faster growth in human capital-intensive services, which more than offsets the loss of manufacturing jobs. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:23-17&r=ure |
| By: | Agnieszka Rabiej; Dominika Sikora; Andrzej Torój |
| Abstract: | We investigate the regional business cycles at NUTS-3 granularity in Poland (N=73) using two variables in parallel: GDP dynamics and unemployment. The model allows for both idiosyncratic business cycle fluctuations in a region in the form of 2-state Markov chain, as well as spatial interactions with other regions. The posterior distribution of the parameters is simulated with a Metropolis-within-Gibbs procedure. We find that the regions can be classified into business cycle setters and takers, and this classification exhibits a high degree of overlap with the line of division between metropolitan versus peripheral regions. We also find that, under large N, the fixed-effects methods, as proposed in the previous literature, are vulnerable to both identification issues and (MCMC) convergence problems, especially with short T, which is of critical importance in GDP on the considered spatial granularity level. |
| Keywords: | business cycle, spatial autoregression, NUTS-3, Markov switching, Bayesian analysis |
| JEL: | C11 C23 C24 R12 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:sgh:kaewps:2023082&r=ure |
| By: | Henao, Leandro; Berens, Johannes; Schneider, Kerstin |
| JEL: | H52 I23 I28 H75 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277578&r=ure |
| By: | Roman Römisch (The Vienna Institute for International Economic Studies, wiiw); Larysa Tamilina |
| Abstract: | This study focuses on the social situation in carbon-intensive regions and the role of migration in defining its quality. The analysis examines whether carbon-intensive areas, especially those with large outward migration, are more vulnerable to adverse social trends than other regions. Our findings reveal a robust association between the processes of decarbonisation and migration, which collectively exert a significant impact on the social conditions within EU regions. This influence is assessed using various indicators, such as the Social Progress Index, employment rates, availability of hospital beds, access to preschool education, and the prevalence of severe material deprivation. We demonstrate that compared to noncarbon-intensive regions, carbon-intensive regions, compelled as they are to undergo structural changes to meet environmental requirements, have a diminished capacity to offer their residents satisfactory employment opportunities and a high quality of social life. Moreover, if carbon-intensive regions experience the challenge of negative net migration, their social development is highly likely to face a notable deterioration. On the other hand, in cases where inward migration predominates, regions at risk of decarbonisation tend to exhibit minor deterioration – and even outperform the noncarbon-intensive group experiencing outward migration. |
| Keywords: | decarbonisation, migration, social situation, EU-SPI, EU regions |
| JEL: | Q01 R23 I31 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:235&r=ure |
| By: | OECD |
| Abstract: | This report assesses the current state and future potential of cultural and creative sectors (CCS) in the nine outermost regions of the European Union (EU): Guadeloupe, French Guiana, Martinique, Mayotte, Réunion, and Saint Martin (France); the Azores and Madeira (Portugal); and the Canary Islands (Spain). Global trends, such as increases in cultural tourism, trade in creative goods and services, and FDI in CCS offer significant opportunities for EU outermost regions to expand their cultural and creative sectors, promote synergies with tourism and help drive job creation. In addition, CCS policies can also boost well-being outcomes and social cohesion through preserving and promoting local cultural heritage and encouraging cultural participation. CCS policy which capitalises on these global trends, whilst recognising the specific context of EU outermost regions, could help promote these areas and contribute to local development. |
| Keywords: | Creative industries, development, EU outermost regions |
| JEL: | Z1 O1 |
| Date: | 2023–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2023/21-en&r=ure |
| By: | Łukasz Olejnik |
| Abstract: | Recently, there has been a rise in research focused on determining the magnitude of the fiscal multiplier. One aspect of this research involves estimating the fiscal multiplier of specific components of government revenues and expenditures and different sub-sectors within the general government sector. The article showcases the results of an analysis that calculates the fiscal multipliers of local government total investments and investments broken down into 10 different categories of investment expenditures, for 73 NUTS-3 sub-regions in Poland over the period from 2007 to 2021. The findings suggest that in the 1-2 years following the initial shock, the accumulated fiscal multipliers of investment expenditures are either insignificant or are significant but less than 1. Contrarily, during the 3-5 year period, the accumulated fiscal multipliers of total investment expenditures and expenditures on road construction show a significant increase, surpassing 1.5. Meanwhile, the fiscal multiplier of investments funded by EU structural funds can reach as high as 3.0. |
| Keywords: | fiscal multiplier, local government investment, fiscal multiplier of disaggregated investment expenditure, local projections |
| JEL: | E62 H70 R50 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:sgh:kaewps:2023084&r=ure |
| By: | Vial Lecaros Felipe; Zárate Román D.; Pérez Pérez Jorge |
| Abstract: | This paper estimates the effects of a subway expansion on labor market outcomes in Santiago, Chile. First, we estimate these effects through a reduced-form analysis. We find changes in work locations and wages consistent with a reduction in firms' labor market power in areas where the subway expanded. We then lay out a model with labor market oligopsonies to calculate the welfare gains from the subway expansion. The model allows decomposition of welfare gains into i) efficiency gains from improved worker-firm matching and ii) gains from reducing labor misallocation due to labor market power. We analyze the distributional implications of the subway expansion. We find that workers benefit as firms see reduced profits. In a model with labor market power these welfare gains are larger than in a competitive model. |
| Keywords: | transit infrastructure;labor market power;spatial misallocation;quantitative spatial economics |
| JEL: | J44 R12 R42 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:bdm:wpaper:2023-17&r=ure |
| By: | Fève, Patrick; Moura, Alban |
| Abstract: | This paper establishes that frictionless, rational-expectations models driven by specific ARMA(2, 1) forcing processes are consistent with equilibrium asset-price dynamics featuring momentum. To reach this result, we first document that AR(2) models adequately capture the cyclical dynamics found in U.S. house prices, in particular the strong positive first-order autocorrelation in their first difference. Then, we show analytically that ARMA(2, 1) exogenous drivers give rise to equilibrium AR(2) asset-price dynamics in a simple present-value model. Our pen-and-paper approach yields a straightforward economic interpretation of the results, emphasizing the contribution of anticipated shocks to generating asset-price momentum. We document the empirical relevance of our theoretical results by estimating the model from house-price data. Our findings suggest that house-price momentum does not necessarily signal irrational exuberance or strong frictions in housing markets. |
| JEL: | C32 E32 G12 |
| Date: | 2023–11–22 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:128729&r=ure |
| By: | Crescenzi, Riccardo; De Filippis, Fabrizio; Giua, Mara; Salvatici, Luca; Vaquero Pineiro, Cristina |
| Abstract: | The Geographical Indications (GIs) scheme of the European Union guarantees visibility and protection to high-quality agri-food products associated with a demarcated region of origin. This paper estimates the impact of the scheme in attracting agri-food Foreign Direct Investment (FDI) in European NUTS3 regions, using a novel dataset and a Generalized Propensity Score Matching approach. Areas endorsed with GIs attract more FDI in agri-food related activities than their non-GI counterparts. Positive effects, estimated for FDI inflows, related job creation, and inter-sectoral spillovers on local employment, involves territories with lower institutional quality. |
| Keywords: | foreign direct investment; geographical indications; regional development; territorial policy; European Union; European Union’s Horizon 2020 Research and Innovation Programme H2020 project BATModel [grant agreement number 861932] and the PON “Ricerca e Innovazione 2014–2020—Azione IV.6. Contratti di ricerca su tematiche Green”; D.M. 1062/2021; Ministero dell’Università e della Ricerca. This research was also funded by UK Research and Innovation (UKRI) under the UK government’s Horizon Europe funding guarantee [grant number 10041284]. This work is also part of a project that has received funding from the European Union’s Horizon Europe Programme [Grant agreement No. 101061104- ESSPIN-HORIZON-CL2-2021-TRANSFORMATIONS-01]; Wiley deal |
| JEL: | R11 Q18 O24 C31 |
| Date: | 2023–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120408&r=ure |
| By: | Antonin Bergeaud; Arthur Guillouzouic |
| Abstract: | Following Bergeaud et al. (2022), we construct a new measure of proximity between industrial sectors and public research laboratories. Using this measure, we explore the underlying network of knowledge linkages between scientific fields and industrial sectors in France. We show empirically that there exists a significant negative correlation between the geographical distance between firms and laboratories and their scientific proximity, suggesting strongly localized spillovers. Moreover, we uncover some important differences by field, stronger than when using standard patent-based measures of proximity. |
| Keywords: | knowledge spillovers, technological distance, public laboratories |
| Date: | 2023–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1961&r=ure |
| By: | Krolage, Carla; Bachtrögler-Unger, Julia; Dolls, Mathias; Schüle, Paul; Taubenböck, Hannes; Weigand, Matthias |
| JEL: | R11 O18 H54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277604&r=ure |
| By: | Hector Galindo-Silva; Guy Tchuente |
| Abstract: | This paper studies how religious competition, as measured by the emergence of religious organizations with innovative worship styles and cultural practices, impacts domestic violence. Using data from Colombia, the study estimates a two-way fixed-effects model and reveals that the establishment of the first non-Catholic church in a predominantly Catholic municipality leads to a significant decrease in reported cases of domestic violence. This effect persists in the long run, indicating that religious competition introduces values and practices that discourage domestic violence, such as household stability and reduced male dominance. Additionally, the effect is more pronounced in municipalities with less clustered social networks, suggesting the diffusion of these values and practices through social connections. This research contributes to the understanding of how culture influences domestic violence, emphasizing the role of religious competition as a catalyst for cultural change. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.10831&r=ure |
| By: | Hanna Adam; Mario Larch; Jordi Paniagua |
| Abstract: | We quantify the economic impact of a potential secession of Catalonia from Spain. Using a novel dataset of trade flows between 17 Spanish sub-national regions and 142 countries, we estimate effects of different levels of borders on trade flows and uncover heterogeneity in country-to-country, region-to-country, region-to-region, as well as EU border effects. We use a general equilibrium analysis to understand the consequences of a potential Catalan secession, considering the associated political uncertainty. In counterfactual experiments, we impose new borders on Catalan trade, potentially within or outside the EU, resulting in a welfare decline for Catalonia and the remaining Spanish regions. |
| Keywords: | international trade, regional trade, border effects, regional independence |
| JEL: | F10 F13 F14 H77 R12 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10742&r=ure |
| By: | Egor Kuznetsov (National Research University Higher School of Economics) |
| Abstract: | The linguistic landscape (LL) of border regions has always attracted the attention of researchers, since linguistic diversity in these places can serve as an indicator of many processes occurring in the society. The regions where different cultures and languages are found are of particular interest, as well as places where the borders of states or administrative units are located. It is assumed that such context creates a certain language situation, which is reflected in the linguistic landscape. This paper is dedicated to the linguistic landscape of Orenburg and its surroundings as an example of a borderland region with a large share of regional and linguistic minorities. According to the results, the LL in the region is almost exclusively Russian – there is almost no indication of its multiethnic composition and borderland location. It highlights the underrepresentation of minorities in the monolingual Russian environment and provides some insights on language ideologies and the way of life in the Russia-Kazakhstan borderland. |
| Keywords: | Linguistic landscape, Borderlands, Russia-Kazakhstan border, Orenburg, Orenburg Oblast, Russia. |
| JEL: | Z |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:113/lng/2023&r=ure |
| By: | Ghazarian, Avenia (Mistra Center for Sustainable Markets (Misum)); Khan, Akib (Uppsala University) |
| Abstract: | How does human capital investment respond to local economic opportunities? Income gains can increase the demand for schooling while new jobs raise the opportunity costs. We investigate this question in the context of rapid growth in artisanal gold mining in sub-Saharan Africa. We compile 45 waves of Demographic and Health Surveys covering 1.3 million individuals from 14 countries in this region. Identification comes from two sources of variation: one in the global gold price and the other in the exposure of households to places that are geologically suitable for artisanal gold mining. We find that a near-tripling of the global gold price – reflecting changes between 2005 and 2010 – leads to a decline in school attendance: by 3.1 pp for 11 to 15-year-olds and by 2.3 pp for 16 to 20-year-olds who live near gold-suitable areas. These reductions are higher for boys. Taken together, these results highlight the potential costs of economic development driven by natural resources. |
| Keywords: | Human capital investment; Economic opportunities; Artisanal mining; Gold; Africa |
| JEL: | J24 O15 Q32 |
| Date: | 2023–11–27 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:hamisu:2023_014&r=ure |
| By: | Einiö, Elias; Feng, Josh; Jaravel, Xavier |
| Abstract: | What are the implications of unequal access to innovation careers for the direction of innovation and inequality? Leveraging novel linked datasets in the United States and Finland, we document that innovators create products more likely to be purchased by consumers like them in terms of gender, socioeconomic status, and age. We find that a key explanatory channel is that social exposure causes a shift in the direction of innovation, independent of financial incentives. Incorporating this "social push" channel into a growth model, we estimate that unequal access to innovation careers has a large effect on cost-of-living inequality and long-run growth. |
| Keywords: | innovation, inequality, growth, innovators' socioeconomic background, Social security, taxation and inequality, O31, O41, D71, fi=Elinkeinopolitiikka|sv=Näringspolitik|en=Industrial and economic policy|, fi=Tulonjako ja eriarvoisuus|sv=Inkomstfördelning och ojämlikhet|en=Income distribution and inequality|, |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:fer:wpaper:160&r=ure |
| By: | Victor Gay; Paula Eugenia Gobbi; Marc Goñi |
| Abstract: | This article describes the construction and content of an atlas of local jurisdictions of Ancien Régime France: bailliages. Bailliages were at thecenter of the Ancien Régime’s jurisdictional apparatus: they administered the ordinary royal justice, delimited the area of influence of different customary laws, and served as electoral constituencies for the Estates General of 1614 and 1789. Based on Armand Brette’s Atlas des Bailliages et Juridictions Assimilées published in 1904, we develop a historical geographic information system that contains shapefiles and associated data files ofbailliage courts at the time of the convocation of the Estates General of 1789. |
| Keywords: | Administrative boundary, Historical geographic information system, Jurisdiction, Bailliage, Institution, Ancien Régime, France |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:eca:wpaper:2013/365275&r=ure |
| By: | Sebastian Leitner (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Refugees are more likely to develop mental diseases as most of them have been exposed to potentially traumatic events and fundamental stressors in their home countries, during migration and after resettling in the host countries. This diminishes their prospects for social and economic integration, which also may have detrimental effects on their mental health. We examine the prevalence of mental disorders in the refugee population from Afghanistan, Iraq, Iran and Syria who arrived in Austria recently, drawing on data from four waves of the FIMAS refugee survey project. Interviews were conducted between December 2017 and April 2022 in Austria, with a specific focus on Vienna, Salzburg, Graz, Linz and Innsbruck. We found a high share of refugees (31% in 2017/2018, declining to 26% in 2022) who showed moderate or severe levels of mental distress. Women were found to have a significantly higher risk of mental illness. We also investigate the effects of mediators on mental health, applying pooled and panel regression model. A positive association was found, for example, in the cases of discrimination experienced in Austria and obviously potentially traumatic events experienced during migration. Negative correlations were detected for certain mitigating factors that foster resilience, such as proficiency in the German language, living in the same household with one’s partner and children, being employed, having more supportive relationships, and being more satisfied with the housing situation. |
| Keywords: | refugees, mental health, social integration, labour market integration, longitudinal study |
| JEL: | I10 J15 F22 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:233&r=ure |
| By: | Samuel Bentolila; Antonio Cabrales; Marcel Jansen |
| Abstract: | This paper analyzes the causal impact of dual vocational education and training (VET) on the labor market insertion of youth. Using matched education and social security records, we estimate the causal impact of a major reform that introduced a new dual track, which combines firm- and school-based training, on the labor market outcomes of the first three dual VET cohorts in the Spanish region of Madrid. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaeee:eee2023-34&r=ure |