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on Urban and Real Estate Economics |
| By: | Patrick J. Bayer (Duke); Peter Q. Blair (Harvard); Kenneth Whaley (South Florida) |
| Abstract: | The United States ranks low among peer countries on the ratio of teacher spending to per capita GDP. Is this (in)efficient? Using a spatial equilibrium model we show that spending on schools is efficient if an increase in school spending funded through local taxes would leave house prices unchanged. By exploiting plausibly exogenous shocks to both school spending and taxes, paired with 25 years of national data on local house prices, we find that an exogenous tax-funded increase in school spending would significantly raise house prices. These findings provide causal evidence that teacher spending in the U.S. is inefficiently low. |
| JEL: | I22 I24 H41 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:usf:wpaper:2024-01&r=ure |
| By: | Nina Biljanovska; Mr. Giovanni Dell'Ariccia |
| Abstract: | The pattern of increasing suburban house prices relative to urban centers initiated during the pandemic continues to hold across the top 30 US metropolitan statistical areas (MSAs). In contrast, European countries such as Denmark, France, and the United Kingdom did not experience a similar shift in valuations. We posit and find supporting evidence that these divergent patterns partially due to differences in the characteristics of suburban areas, particularly in terms of household income and property sizes; with European suburbs being relatively poorer and characterized by smaller housing units. We show that, in the US, MSAs with suburban features more akin to those in European cities generally experienced little to no increase in suburban housing prices compared to their urban centers. Finally, our findings indicate that migration patterns of the high-income population might have partially influenced the urban-suburban revaluation in the US. |
| Keywords: | Property prices; House price gradient; City structure; High-income population mobility |
| Date: | 2023–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/266&r=ure |
| By: | Adam Lavecchia; Philip Oreopoulos; Noah Spencer |
| Abstract: | This study finds substantial reductions to criminal activity from the introduction of a comprehensive high school support program for disadvantaged youth living in the largest public housing project in Toronto. The program, called Pathways to Education, bundles supports such as regular coaching, tutoring, group activities, free public transportation tickets and bursaries for postsecondary education. In this paper, we use a difference-in-differences approach that compares students living in public housing communities where the program was offered to those living in communities where the program was not offered over time. We find that eligibility for Pathways reduces the likelihood of being charged with a crime by 32 percent at its Regent Park location. This effect is driven by a reduction in charges for breaking and entering, theft, mischief and other traffic offenses and Youth Criminal Justice Act offenses. |
| Keywords: | At-risk youth; education and crime; youth programs |
| JEL: | I24 I26 I28 L31 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:mcm:deptwp:2024-01&r=ure |
| By: | Jonah Coste (Federal Housing Finance Agency) |
| Abstract: | In 2000, Philadelphia enacted an abatement policy that exempted new development from property taxes for 10 years. This policy provides an ideal natural experiment to test property tax capitalization because it creates contemporaneous intra-jurisdiction tax variation within a finite and known duration. Consistent with theory, the tax benefits are initially capitalized fully into home prices. However, as abatements near expiration, the benefits become overcapitalized in home prices. This paper also finds that escrow payment shocks cause delinquencies for owners of homes with expiring abatements. |
| Keywords: | housing, tax incentive, property tax, real estate, mortgages, payment shock |
| JEL: | D12 G41 G51 H71 R21 R31 R38 R51 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:hfa:wpaper:24-01&r=ure |
| By: | Nelly Exbrayat (Université Jean Monnet Saint-Etienne, CNRS, Université Lyon 2, GATE Lyon Saint-Etienne UMR 5824, F-42023, Saint-Etienne, France); Victor Stephane (Université Jean Monnet Saint-Etienne, CNRS, Université Lyon 2, GATE Lyon Saint-Etienne UMR 5824, F-42023, Saint-Etienne, France) |
| Abstract: | We study the impact of urbanization driven by internal migration on crime in South Africa. We create a new dataset that combines yearly data on crime and urban population density at the municipality level from 2011 to 2018. We exploit exogenous variations in rural-urban migration induced by climate shocks at origin for identification. We show that higher urban population density leads to a reduction in pecuniary crime rate but has no effect on non-pecuniary crime rate. We highlight two mechanisms explaining this negative effect: a change in population composition and a social network effect. |
| Keywords: | Crime; Migration; South Africa; Urbanization |
| JEL: | O18 R23 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:2401&r=ure |
| By: | Sofoklis Goulas (Brookings Institution, Washington DC, United States); Rigissa Megalokonomou (Monash University, Monash Business School, Department of Economics, Australia, University of Queensland, IZA, and CESifo); Yi Zhang (University of Queensland, School of Economics, Australia) |
| Abstract: | Recent research has shown that females make classrooms more conducive to effective learning. We identify the effect of a higher share of female classmates on students’ disruptive behavior, engagement, test scores, and major choices in disadvantaged and non-disadvantaged schools. We exploit the random assignment of students to classrooms in early high school in Greece. We combine rich administrative data with hand-collected student-level data from a representative sample of schools that feature two novel contributions. Unlike other gender peer effects studies, a) we use a rich sample of schools and students that contains a large and diverse set of school qualities, and household incomes, and b) we measure disruption and engagement using misconduct-related (unexcused) teacher-reported and parent-approved (excused) student class absences instead of self-reported measures. We find four main results. First, a higher share of female classmates improves students’ current and subsequent test scores in STEM subjects and increases STEM college participation, especially for girls. Second, a higher share of female classmates is associated with reduced disruptive behavior for boys and improved engagement for girls, which indicates an increase in overall classroom learning productivity. Third, disadvantaged students—those who attend low-quality schools or reside in low-income neighborhoods—drive the baseline results; they experience the highest improvements in their classroom learning productivity and their STEM outcomes from a higher share of female classmates. Fourth, disadvantaged females randomly assigned to more female classmates in early high school choose college degrees linked to more lucrative or prestigious occupations 2 years later. Our results suggest that classroom interventions that reduce disruption and improve engagement are more effective in disadvantaged or underserved environments. |
| Keywords: | gender peer effects, natural e, classroom learning productivit, quasi-random variation, disadvantaged students |
| JEL: | J16 J24 I24 I26 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2024-01&r=ure |
| By: | Mariana Laverde (Boston College); Elton Mykerezi (University of Minnesota); Aaron Sojourner (W.E. Upjohn Institute for Employment Research); Aradhya Sood (University of Toronto) |
| Abstract: | Although the literature on assignment mechanisms emphasizes the importance of efficiency based on agents’ preferences, policymakers may want to achieve different goals. For instance, school districts may want to affect student learning outcomes but must take teacher welfare into account when assigning teachers to students in classrooms and schools. This paper studies both the potential efficiency and equity test-score gains from within-district reassignment of teachers to classrooms using novel data that allows us to observe decisions of both teachers and principals in the teacher internal transfer process, and test-scores of students from the observed assignments. We jointly model student achievement and teacher and school principal decisions to account for potential selection on test score gains and to predict teacher effectiveness in unobserved matches. Teachers, but not principals, are averse to assignment based on the teachers’ comparative advantage. Estimates from counterfactual assignments of teachers to classrooms imply that, under a constraint not to reduce any retained teacher’s welfare, average student test scores could rise by 7% of a standard deviation. Although both high and low achievers would experience average gains under this counterfactual, gains would be larger for high-achieving students. |
| Keywords: | Two-sided market, mechanism design, labor market matching, K12 teachers |
| JEL: | D47 D82 J20 I21 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:upj:weupjo:23-392&r=ure |
| By: | Borzykh, Ksenia (Борзых, Ксения) (The Russian Presidential Academy of National Economy and Public Administration); Ponomarev, Yuriy (Пономарев, Юрий) (The Russian Presidential Academy of National Economy and Public Administration); Tylkin, Igor (Тылкин, Игорь) (The Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | The problem of differentiation of HEIs by quality of educational, research and international activities and, as a consequence, of regional educational systems is relevant for Russia. To form a strong network of regional HEIs and to produce personnel whose competences meet the demands of the real sector of economy in the regions requires taking into account the spatial distribution of educational and postgraduate labour migration, specifics of location and quality of HEIs. The study obtained new statistical findings on the impact of the quality of regional educational systems on the volume of postgraduate migration and the propensity of university graduates to migrate to other regions in order to find employment. In addition, the contribution of universities to socio-economic development of regions ("third mission" of universities) has been empirically verified. It has been determined that improving the quality of universities has a positive impact on the propensity of graduates stay in regions where they receive their education, especially from "non-capital" regions. Universities can mitigate migration outflow of graduates and enhance human capital levels in regions by not only improving the quality and efficiency of education, but also by strengthening links with local labour markets through an active traineeship referral policy. Improving the quality of universities can be an additional tool of economic policy to increase regions' capacity to attract and retain qualified and educated young people, and to achieve more balanced spatial development of regions. In order to stimulate economic development in the regions, it is necessary to provide opportunities to improve the quality of the educational system and training of specialists demanded in regional labour markets, as well as to create conditions to encourage universities to provide scientific and expert analytical services to real sector organisations. |
| Date: | 2022–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:w20220289&r=ure |
| By: | Voloshinskaya, Anna (Волошинская, Анна) (The Russian Presidential Academy of National Economy and Public Administration); Akimova, Varvara (Акимова, Варвара) (The Russian Presidential Academy of National Economy and Public Administration); Komarov, Vladimir (Комаров, Владимир) (The Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | Relevance of the research: modern urban planning policy in Russia creates significant risks in the long term, which include spatially inefficient urban zoning, an increase in the number of personal vehicles and the displacement of public transport, uncontrolled suburbanization and reactionary urban planning policy, a microdistrict approach, etc. In this regard, it becomes especially important to search for effective responses to environmental, social, spatial, economic and other challenges and risks caused by modern urban development trends. The aim of the study is to identify and systematize the long-term risks of the current urban planning policy in Russia, to conduct a comprehensive analysis of the best world practices of strategic urban planning, and the development of proposals for Russia's transition to a sustainable (in relation to long-term risks) urban planning policy. Research methods and methodology: comparative analysis, system analysis, quantitative and qualitative analysis, historical and economic analysis. Scientific novelty: the paper attempts to carry out comprehensive qualitative and value-content analysis of theoretical approaches to sustainable urban development, identify key risks of long-term urban development in Russia and create a mega-index to assess the sustainability of urban development. Results: it was found that by sustainable urban policy we can understand the implementation of such regulatory measures, urban planning solutions, transport solutions, etc. which have a positive impact on the economy, the environment and the social sphere at the same time. However, in the Russian cities, there is a degradation of urban planning and spatial policy, the formation of micro-district multi-storey buildings, within which there is an alienation of a person from the environment and a “reduction of living space”. The fundamental reason is the short-term planning horizon of both city and regional administrations, businesses, and the population. On the basis of the study, the authors propose recommendations for changing the existing urban planning policy in Russia to mitigate the risks of long-term development: gradual implementation of obligatory character for the Standard for the integrated development of territories developed by the Ministry of Construction of Russia and DOM.RF together with KB Strelka; introduction of the urban planning principle -"compact city"; a ban on the development of fields in the suburbs, restrictions on infill development and the transition to complex development; introduction of a moratorium on the construction of high-rise buildings in Russia, with the exception of their construction in special business districts (“city”), within walking distance of high-speed rail transport systems; raising the status and role of urbanists and architects in urban development planning; introduction of a procedure for assessing the long-term impact of construction projects, etc. |
| Keywords: | sustainable development, sustainable urban development, sustainable strategic planning, urban development policy, public transport, agglomeration, risks, measurement of city’s sustainable development |
| JEL: | B52 O18 |
| Date: | 2022–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:w20220297&r=ure |
| By: | Kenneth Whaley (South Florida) |
| Abstract: | Physical boundaries delineate neighborhoods and are distinguishable from administrative boundaries like school districts and county lines. This paper sheds light on historic railroad placement as a predictor of contemporary segregation by employing a digitized map of Texas railroads circa 1911 to compare census block groups separated by train tracks today. Using a boundary discontinuity design, I first document an unconditional house price premium of 21% to live on the high income side of the tracks. Exploiting distinct variation in race and income demographics at railroad boundaries, I obtain hedonic estimates of the price premium for white population share and income composition. Conditional on differences in school quality and access to private consumption amenities, households are willing to pay up to 16% of home price for the race and income composition available on the high income side of the tracks. |
| JEL: | R23 J15 O18 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:usf:wpaper:2024-02&r=ure |
| By: | L. Vargiu; B. Biagi; M.G. Brandano; P. Postiglione |
| Abstract: | The last decades registered a significant increase in Research Infrastructures (RIs) everywhere and in Europe. The EU supports these projects and their activities by implementing strategies and allocating financial resources for these costly projects. Although RIs main goal is to foster science, they produce relevant effects that go beyond scientific output including economic output, innovation, and social impact. These effects take place simultaneously at different geographic levels - regional, national, and international. RIs' hosting regions absorb a significant part of them. This phenomenon is the object of a stream of literature that analyses the several effects that single RIs have on the economy and society. However, little attention is paid to the aggregate dimension of these effects at the regional level and how it changes in different regional contexts. This work contributes to the main literature on RIs socio-economic effects by disentangling the aggregate economic growth effect driven by RIs in EU NUTS 2 regions for two periods - 2001-2020 and 1981-2020. The empirical analysis is carried out on an original database with information about 667 RIs. A spatial Durbin model estimates both the direct impact and spatial spillovers. The main findings suggest that RIs have a positive impact on regional economic growth over the two periods considered. However, spillover effects to neighbouring regions are not significant. |
| Keywords: | Research Infrastructures;regional economic growth;Socio-economic effects;european regions;spatial analysis |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:202314&r=ure |
| By: | Bischoff, Thore Sören; Runst, Petrik; Bizer, Kilian |
| Abstract: | Previous studies have found that generalized trust positively affects innovation at the country and regional level. We extend this literature by arguing that there are four reasons to believe that the trust-innovation relationship is heterogeneous across geographic space. First, there is a saturation effect where regions in the lower half of the trust distribution are more likely to benefit from an increase in trust than regions in the upper half. Second, trust is more important in regions with less developed innovation capacities as it fosters cooperation and knowledge transfer, which is known to be especially relevant in lagging regions. Third, generalized trust and institutional trust can serve as substitutes: when institutional trust is low, generalized trust can be used as an alternative facilitator of cooperation. Finally, as smaller firms lack the legal capacities for sophisticated contractual arrangements and therefore resort to informal cooperation, the trust-innovation relationship is stronger in regions with a large share of small firms. Our results mostly support the small-firm and lower-trust region hypothesis. These findings underline the fact that regional innovation systems work differently and different mechanisms of cooperation can be leveraged to achieve innovation success depending on the regional characteristics. |
| Keywords: | Innovation, trust, regional innovation systems |
| JEL: | D02 D83 O12 O18 O31 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifhwps:280972&r=ure |
| By: | Boeing, Geoff (Northeastern University); Pilgram, Clemens; Lu, Yougeng |
| Abstract: | This study estimates the relationships between street network characteristics and transport-sector CO2 emissions across every urban area in the world and investigates whether they are the same across development levels and urban design paradigms. The prior literature has estimated relationships between street network design and transport emissions---including greenhouse gases implicated in climate change---primarily through case studies focusing on certain world regions or relatively small samples of cities, complicating generalizability and applicability for evidence-informed practice. Our worldwide study finds that straighter, more-connected, and less-overbuilt street networks are associated with lower transport emissions, all else equal. Importantly, these relationships vary across development levels and design paradigms---yet most prior literature reports findings from urban areas that are outliers by global standards. Planners need a better empirical base for evidence-informed practice in under-studied regions, particularly the rapidly urbanizing Global South. |
| Date: | 2024–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:r32vj&r=ure |
| By: | Aygun, Aysun Hiziroglu; Tirgil, Abdullah |
| Abstract: | This paper investigates the causal relationship between education and mental health in Turkey. We rely on the quasi-experimental setting created by the 1997 compulsory education reform that raised the compulsory years of schooling from five to eight years. Using regression discontinuity design, we use the birth year to indicate reform exposure and identify the causal effects of longer years of schooling on mental health. Our results demonstrate a sizable negative impact of education on the mental health scale. We present evidence that the reform had a more adverse effect on men's mental health. There is also heterogeneity by the place of residence, as the longer school years led people who live in urban areas to experience worse mental health outcomes. By investigating possible mechanisms, we show that those with at least a middle school education did not invest more in their health than those without a middle school diploma. We explain the evidence for the adverse effects of education on mental health, especially experienced by those who face higher competition in the labor market, by the lack of an increase in household income despite the longer years in school. |
| Keywords: | mental health, MHI-5, regression discontinuity design, compulsory schooling law, education policy, Turkey |
| JEL: | I12 I26 I28 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:280901&r=ure |
| By: | Zaheer Allam (IAE Paris - Sorbonne Business School); Simon Elias Bibri; David Jones; Didier Chabaud (IAE Paris - Sorbonne Business School); Carlos Moreno (IAE Paris - Sorbonne Business School) |
| Abstract: | The ‘15-minute city' concept is emerging as a potent urban regeneration model in post-pandemic cities, offering new vantage points on liveability and urban health. While the concept is primarily geared towards rethinking urban morphologies, it can be furthered via the adoption of Smart Cities network technologies to provide tailored pathways to respond to contextualised challenges through the advent of data mining and processing to better inform urban decision-making processes. We argue that the ‘15-minute city' concept can value-add from Smart City network technologies in particular through Digital Twins, Internet of Things (IoT), and 6G. The data gathered by these technologies, and processed via Machine Learning techniques, can unveil new patterns to understand the characteristics of urban fabrics. Collectively, those dimensions, unpacked to support the ‘15-minute city' concept, can provide new opportunities to redefine agendas to better respond to economic and societal needs as well as align more closely with environmental commitments, including the United Nations' Sustainable Development Goal 11 and the New Urban Agenda. This perspective paper presents new sets of opportunities for cities arguing that these new connectivities should be explored now so that appropriate protocols can be devised and so that urban agendas can be recalibrated to prepare for upcoming technology advances, opening new pathways for urban regeneration and resilience crafting. |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03997414&r=ure |
| By: | Sarode, Shruti MS; Segal, Katie MPP; Elkind, Ethan JD |
| Abstract: | California's goal to eliminate internal combustion engine sales by 2035 poses challenges for lower- and moderate-income residents, hindering their access to electric vehicles (EVs). Barriers include limited EV charging stations, exacerbated by lower home ownership and inadequate grid infrastructure in lower-income communities. To address this, UC Berkeley School of Law's Center for Law, Energy & the Environment (CLEE) partnered with the City of Watsonville. Due to its location, demographics, and ambitious policy goals, Watsonville represents a potential model and case study for other cities around the state grappling with how to boost EV charging infrastructure. CLEE conducted stakeholder interviews and a convening in Watsonville in May2023, and developed a set of policy recommendations for both state and local entities to accelerate investment in EV charging infrastructure in Watsonville, which could inform other cities facing similar challenges and seeking to meet state targets and residents’ needs. |
| Keywords: | Law, Electric vehicle charging, electric vehicles, zero emission vehicles, low income groups, underserved communities, policy analysis |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt6r1147v7&r=ure |
| By: | Arpita Ghosh (Department of Economics, University of Exeter); Brendon McConnell (Department of Economics, City University of London); Jaime Millán-Quijano (Navarra Center for International Development, Universidad de Navarra) |
| Abstract: | We study the housing market response to a country-wide policy that mandated the provision of energy efficiency information with all marketing material at the time of listing. Using the near universe of housing sales in England and Wales, we match in the energy efficiency status of the property from Energy Performance Certificates data. We develop a conceptual framework that makes clear the key channels through which the policy may impact house prices - an information-driven salience channel and a market valuation channel. We provide causal evidence of homebuyers' willingness to pay for a higher energy rated property, documenting a 1-3% premium to a higher energy efficiency rating at the national level, and a 3-6% premium in the London market. We explore a set of key margins along which homebuyers can respond, ruling out as explanations both a consumption channel and an information channel. We conclude that the elevated EPC-rating premiums are driven by a market valuation channel, a conclusion for which we provide empirical support. Such a conclusion is of key policy importance, as it suggests market-facing energy efficiency regulations can increase demand for more energy efficient housing, even in absence of any discernible demand-side consumption or information effects. |
| Keywords: | hedonic price models, energy performance certificates, real estate |
| JEL: | R38 Q48 K32 |
| Date: | 2024–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:exe:wpaper:2401&r=ure |
| By: | Galli, Fausto; Russo, Giuseppe |
| Abstract: | This article studies the immigrants’ attitude towards immigration with special emphasis on the transition from the first to the second generations. We use European Social Survey data for the 2002-2020 period, which include many questions on the attitude to immigration, in order to estimate the impact of the immigrant status through ordered probit models. We find that first-generation immigrants support immigration more than natives. We also find that evidence of generational convergence towards natives’ opinions is limited. This result suggests that the effect of the immigration experience on preferences is persistent across generations. |
| Keywords: | immigrants, immigrant integration, attitudes/view towards immigration, intraEU migration |
| JEL: | J11 J61 Z13 |
| Date: | 2023–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119513&r=ure |
| By: | Zaheer Allam (IAE Paris - Sorbonne Business School); Simon Elias Bibri; Didier Chabaud (IAE Paris - Sorbonne Business School); Carlos Moreno (IAE Paris - Sorbonne Business School) |
| Abstract: | Conventional and emerging paradigms of urbanism require new responses under the current circumstances, especially in relation to the integration of sustainability dimensions and technology advances. The escalating rate of urbanization, coupled with the climate emergency, fundamentally indeed disrupt the challenges that urbanism research and practice deal with, calling for adopting more innovative approaches to urban planning and design. With cities contributing around 65% of Greenhouse Gas (GHG) emissions and experiencing an unprecedented growth of population, contemporary urban policy needs to be redefined and re-assessed accordingly. While numerous urban models, such as the Compact City, the Eco-City, the Sustainable City, and the Smart City, have emerged in response to the challenges of sustainability and urbanization, the 15-Minute City has recently gained a steep popularity. This paper explores the theoretical, practical, and technological foundations of the 15-Minute City, with a particular focus on the proximity dimension of mixed land-use and its environmental, social, and economic benefits of sustainability as supported by smart technologies. We argue that this evolving model of urbanism has the potential to gain more expansion and success in regard to building more sustainable, efficient, resilient, equitable, and inclusive cities in line with the global agendas of Sustainable Development Goal (SDG) 11, as it adds a strategic value to the amalgam of the prevailing and emerging paradigms of urbanism and their synergies with respect to increasing the benefits of sustainability while emphasizing its environmental dimension. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03997394&r=ure |
| By: | Maria teNyenhuis; Adam Su |
| Abstract: | We investigate how the increase in interest rates since early 2022 is affecting mortgage payments. By November 2023, less than half of mortgage holders had faced higher payments. Many borrowers will see a sizable increase in payments at renewal, although income growth could help mitigate the impact. |
| Keywords: | Credit and credit aggregates; Financial institutions; Interest rates; Recent economic and financial developments |
| JEL: | D D1 E E4 E5 G G2 G21 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocsan:23-19&r=ure |
| By: | Molitor, David (University of Illinois at Urbana-Champaign); White, Corey (Monash University) |
| Abstract: | Do environmental conditions pose greater health risks to individuals living in urban or rural areas? The answer is theoretically ambiguous: while urban areas have traditionally been associated with heightened exposure to environmental pollutants, the economies of scale and density inherent to urban environments offer unique opportunities for mitigating or adapting to these harmful exposures. To make progress on this question, we focus on the United States and consider how exposures—to air pollution, drinking water pollution, and extreme temperatures—and the response to those exposures differ across urban and rural settings. While prior studies have addressed some aspects of these issues, substantial gaps in knowledge remain, in large part due to historical deficiencies in monitoring and reporting, especially in rural areas. As a step toward closing these gaps, we present new evidence on urban-rural differences in air quality and population sensitivity to air pollution, leveraging recent advances in remote sensing measurement and machine learning. We find that the urban-rural gap in fine particulate matter (PM2.5) has converged over the last two decades and the remaining gap is small relative to the overall declines. Furthermore, we find that residents of urban counties are, on average, less vulnerable to the mortality effects of PM2.5 exposure. We also discuss promising areas for future research. |
| Keywords: | environment, urban, rural, pollution, health |
| JEL: | I10 Q53 Q54 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16678&r=ure |
| By: | Rostislav, Konstantin (Ростислав, Константин) (The Russian Presidential Academy of National Economy and Public Administration); Ponomarev, Yuriy (Пономарев, Юрий) (The Russian Presidential Academy of National Economy and Public Administration); Radchenko, Darina (Радченко, Дарина) (The Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | The development of agglomerations in Russia is a priority of spatial policy. To enhance agglomeration effects and accelerate the growth of the Russian economy it is necessary to understand the mechanisms of agglomeration effects. To compare the strength of Marshall agglomeration effects using the Ellison-Glaser-Kerr approach, the degree of concentration of Russian industries was measured using data on all organizations without exception as of January 1, 2020. The estimates show that pairs of industries in Russia tend to be dispersed relative to each other: most industries have significantly lower concentration than would be expected based on the overall location of these industries. On average, of the three external benefits of concentration according to Marshall, Russia's large labor market is the most important. Proximity to suppliers/buyers, their diversity is least related to the placement of industries in the same areas. The example of Kaliningrad region shows that regardless of the method of selection of organizations for comparison, there is no truncation of the distribution traits. Although the choice of the geographical unit of observation determines the estimation of the strength or even direction of the net agglomeration effects, the general conclusion about the lack of selection of enterprises, which we could take for the benefit of concentration, was unchanged. To verify this conclusion, we used various methods of territorial grouping of enterprises and the boundaries of clusters (agglomerations) of enterprises were estimated using the DBSCAN method. The resulting estimates of the relationship of concentration to various sources of its external benefits support those public policies that seek to encourage the development of large urban agglomerations with large and constant markets for skilled labor. When forming particularly dense clusters, it is advisable to set activity requirements for areas with a special entrepreneurial regime, which would be consistent with estimates of the intensity of possible knowledge exchange between industries. |
| Keywords: | agglomerations, agglomeration effects, mechanisms, boundary delimitation, machine learning |
| JEL: | R1 C02 |
| Date: | 2022–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:w20220295&r=ure |
| By: | Jacomien van der Merwe; Tom de Jong |
| Abstract: | Addressing unemployment and income inequalities in transport and land-use policies is important, particularly in South Africa, which is currently experiencing one of the highest unemployment rates and income inequality in the world. This research investigates the horizontal (geographical distribution) and vertical (distribution between income groups) impact of job accessibility within the City of Cape Town. |
| Keywords: | Accessibility, Spatial inequality, Job–housing mismatch, Developing countries, Transport accessibility |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2023-148&r=ure |
| By: | Lee, Yongsung; Circella, Giovanni; Chen, Grace; Kim, Ilsu; Mokhtarian, Patricia L. |
| Abstract: | Pooled trips in private vehicles, or pooling, can lead to smaller environmental impacts and more efficient use of the limited roadway capacity, especially during peak hours. However, pooling has not been well adopted in part because of difficulties in coordinating schedules among various travelers and the lack of flexibility to changes in schedules and locations. In the meantime, ridehailing (RH) provides pooled services at a discounted fare (compared to the single-travel-party option) via advanced information and communication technology. This study examines individuals’ preferences for/against pooled RH services using information collected among travelers answering a set of questions related to their last RH trip. In doing so, both trip attributesand rider characteristics are considered. Taste heterogeneity is modeled in a way that assumes the presence of unobserved groups (i.e., latent classes), each with unique preferences, in a given sample of RH riders (N=1, 190) recruited in four metropolitan regions in Southern U.S. cities from June 2019 to March 2020. The researchers find two latent classes with qualitatively different preferences, choosy poolers and non-selective poolers, regarding their choice in favor of/against pooling based on wait time, travel costs, purpose, and travel party size of the last RH trip. Personal characteristics are also identified, specifically age and three attitudes (travel satisfaction, environmentalism, and travel multitasking), which account for individuals’ class membership. This research contributes to the literature by explicitly modeling taste heterogeneity towards pooled ridehailing. In addition, unlike existing studies either at the person level or employing stated-preference data, a trip-level analysis is performed in connection with revealed preferences, which generates more realistic and relevant implications to policy and practice. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Shared mobility, pooled ridehailing, stated preferences, latent- class choice model, taste heterogeneity |
| Date: | 2024–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt1dc3v8ms&r=ure |
| By: | Zhang, Bo; Hao, Sixing; Yao, Qiwei |
| Abstract: | We propose a new estimation method for the blind source separation model of Bachoc et al. (2020). The new estimation is based on an eigenanalysis of a positive definite matrix defined in terms of multiple normalized spatial local covariance matrices, and, therefore, can handle moderately high-dimensional random fields. The consistency of the estimated mixing matrix is established with explicit error rates even when the eigen-gap decays to zero slowly. The proposed method is illustrated via both simulation and a real data example. |
| Keywords: | Eigen-analysis; Eigen-gap; high-dimensional random field; mixing matrix; normalized spatial local covariance matrix. |
| JEL: | C1 |
| Date: | 2023–11–26 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121093&r=ure |
| By: | Lise Desvallées (LATTS - Laboratoire Techniques, Territoires et Sociétés - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - Université Gustave Eiffel) |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03456394&r=ure |
| By: | Hädrich, Tobias; Reher, Leonie; Thomä, Jörg |
| Abstract: | The promotion of innovation-driven development in lagging regions is currently on the regional policy agenda, so a sound understanding of how learning and innovation can be successful under the conditions there is crucial. In this context, this paper demonstrates the potential of an innovation mode approach at the micro level of regional innovation systems. Based on a conceptual framework on the relationship between knowledge bases and innovation modes in the field of regional development, a systematic literature review is used to analyse whether this potential has already been exploited in previous innovation studies on lagging regions. The results show that some important steps have already been taken in this direction. However, the potential gain in terms of insights has so far only been realised to a limited extent. Against this background, the authors formulate several avenues for future research on firm-level innovation modes in lagging regions. |
| Keywords: | Regional innovation, STI innovation mode, DUI innovation mode, Lagging regions, Systematic literature review |
| JEL: | O18 O30 O38 R11 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifhwps:280971&r=ure |
| By: | Masuda, Kazuya; Shigeoka, Hitoshi |
| Abstract: | We examine the mortality effects of a 1947 school reform in Japan, which extended compulsory schooling from primary to secondary school by as much as 3 years. The abolition of secondary school fees also indicates that those affected by the reform likely came from disadvantaged families who could have benefited the most from schooling. Even in this relatively favorable setting, we fail to find that the reform improved later-life mortality up to the age of 87 years, although it significantly increased years of schooling. This finding suggests limited health returns to schooling at the lower level of educational attainment. |
| Keywords: | Education, Later-life mortality, Japan, Regression discontinuity design |
| Date: | 2023–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:ajt:wcinch:78763&r=ure |
| By: | Michele Battisti; Antonio Francesco Gravina; Andrea Mario Lavezzi; Giuseppe Maggio; Giorgio Tortorici |
| Abstract: | What is the role of a society's wealth in influencing educational choices? Although the theoretical literature provides several possible answers, from an empirical viewpoint answering question is not straightforward. Indeed, nowadays such an issue cannot be typically inspected before starting the college, due to the compulsory public education laws in force at lower education levels in nearly all countries. We investigate this problem by employing a unique dataset covering Sicilian wealth shares and primary school enrollment in the year 1858 at municipal level. This represents an ideal setting to study our research question as, at that time, schools at the lowest grade levels were available in almost each Sicilian municipality, but their attendance was not compulsory. Our identification strategy relies on the historical heritage of seismic events in shaping mid-19th century land and property distribution, which allowed for the emergence of a class of "wealthy" households. Results of the analysis show that, even in an almost entirely agrarian society, household wealth played a decisive role in educational choices: an increase of 10 |
| Keywords: | Wealth; Education; Long-run Development; Institutions; Human Capital |
| JEL: | I24 O15 N93 |
| Date: | 2024–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pie:dsedps:2024/302&r=ure |
| By: | Kim, Sang-O; Palm, Matthew; Han, Soojung; Klein, Nicholas J. (Conrell University) |
| Abstract: | Transportation scholars are keenly interested in the relationship between transportation and subjective well-being. To date, this body of scholarship has not addressed feelings of time pressure. We use the time crunch index from Canada’s 2015 General Social Survey (GSS) to analyze the role that transportation resources, travel behavior, and social demographics play in respondents’ self-reported experiences of time pressure. We find that resources and daily travel strongly affect the time crunch index and are compounded by the large effect of sociodemographic vulnerability, namely being a woman, immigrant, or member of an ethnic minority, and having a condition of disability. Our analysis presents a new approach for transportation scholars to measure the relationship between social well-being and transportation grounded in several decades of social science research on time use and well-being. |
| Date: | 2023–12–27 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:z6tvd&r=ure |
| By: | Patrick Lehnert; Madison Dell; Uschi Backes-Gellner; Eric Bettinger |
| Abstract: | Over the last 50 years, nations worldwide have established higher education institutions to stimulate local economic growth. However, empirical evidence on local economic outcomes is still scarce, mainly because of a lack of adequate data. This paper provides evidence on the expansion of branch campuses in Tennessee and Texas, two states that are representative of the underlying patterns in the U.S. as a whole. As we expect the economic effect to be very localized, we use a novel and highly disaggregated proxy for regional economic activity based on daytime satellite imagery. Applying three panel estimation methods - traditional difference-in-differences (DD), heterogeneity-robust DD, and instrumental variables (IV) - we find positive associations for Tennessee and Texas in all estimations. In Tennessee, the traditional DD approach yields an increase in GDP of 1.4 percent after a campus opens (according to our most conservative estimate) and is driven by two-year branch campuses. In Texas, this effect amounts to 5.9 percent, with both two- and four-year branch campuses contributing to it. In our IV estimations, we take advantage of local taxing regulations that influence the decision to open branch campuses in certain locations but not the local economic conditions. We use this exogenous variation to estimate causal effects and find an even larger positive effect of 12.5 percent for the most conservative estimate. Given the widespread use of higher education expansion to induce economic growth, particularly in rural areas, this paper contributes important evidence on the economic impact of such campus openings on regional economic activity. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:iso:educat:0210&r=ure |
| By: | Busch, Christian; Mudida, Robert |
| Abstract: | Research Summary In socially contested settings, it is often difficult to connect with (diverse) others, and it is unclear how entrepreneurs in these contexts may develop the social ties that previous research has shown to be valuable. We studied this subject matter in Kenya, an ethnically fractionalized society that recently experienced the decentralization of government, which required entrepreneurs to deal with both in-group and out-group ethnicities. We conducted an inductive case study of four Nairobi-based companies and captured the creative tactics that they used to transcend ethnic homophily (by defocusing from ethnicity and reframing the in-group) while also asserting ethnic homophily (by signaling tribal affiliation and leveraging others' ethnicity). We contribute to a deeper understanding of how and why entrepreneurs in socially contested settings develop social ties. Managerial Summary Entrepreneurs in socially contested settings rely on social networks to access resources and opportunities. However, it is unclear how entrepreneurs in these settings develop and use these networks. We studied this question in an ethnically fractionalized setting that recently experienced the decentralization of government: Kenya. Entrepreneurs who previously provided information technology (IT) services to the central government had to deal with both own-tribe and other-tribe contacts to receive new contracts. We studied four Nairobi-based IT firms that operated across a variety of counties and analyzed the creative tactics that entrepreneurs in this context use to cross ethnic divides while also working with own-tribe contacts. This contributes to our collective understanding of how and why entrepreneurs in socially contested settings develop diverse social ties to access resources and opportunities. |
| Keywords: | case study; emerging economies; networks; resource acquisition; Sub-Saharan Africa |
| JEL: | J1 L81 |
| Date: | 2023–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121150&r=ure |
| By: | Llanos Paredes, Pedro |
| Abstract: | This study examines the impact of the Fraunhofer Society, Europe’s largest network of applied research institutes, on patent applications. A difference-in-differences strategy was employed exploiting the establishment of five new Fraunhofer centres in the 2000s. The panel includes 65, 963 European applicants (both firms and independent inventors) between 1980 and 2019. The results show that establishing a centre increases patent output by at least 13%, robust to using applicants of cities that established a centre by the end of the 2010s as an alternative control group. The effect is driven by an increase in applicants’ productivity and not by agglomeration dynamics. |
| Keywords: | European Union’s Horizon 2020 research and innovation programme under the Marie Sklodowska-Curie grant agreement No 860887; OUP deal |
| JEL: | R14 J01 J1 |
| Date: | 2023–10–13 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120473&r=ure |
| By: | Alain Debenedetti (IRG - Institut de Recherche en Gestion - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12, Université Gustave Eiffel); Damien Chaney |
| Abstract: | This research illuminates the negative facets of attachment to commercial places. Prior research focusing on place attachment has emphasized that strong emotional bonds with a commercial place trigger behaviors that were valuable to both managers and customers. However, consumers' strong emotional engagement to places can lead them to move from feeling at home – where consumers experience a sense of comfort and familiarity – to being at home – where they see the place as part of their personal space –, which is likely to impact the place's commercial activities. Building on managers' and consumers interviews, our data emphasize the negative effects of attachment to commercial places, and also suggest that surprisingly, managers themselves play a role in the development of detrimental behaviors in the places they manage. |
| Keywords: | Attachment to commercial places; Emotional bonding; At-homeness; Retailing; Negative outcomes, attachment to commercial places emotional bonding at-homeness retailing negative outcomes, attachment to commercial places, emotional bonding, at-homeness, retailing, negative outcomes |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04355633&r=ure |
| By: | Julien Champagne; Erik Ens; Xing Guo; Olena Kostyshyna; Alexander Lam; Corinne Luu; Sarah Miller; Patrick Sabourin; Joshua Slive; Temel Taskin; Jaime Trujillo; Shu Lin Wee |
| Abstract: | We assess the complex macroeconomic implications of Canada’s recent population increases. We find that newcomers significantly boost the non-inflationary, potential growth of the economy, but existing imbalances in the housing sector may be exacerbated. Greater housing supply is needed to complement the long-term economic benefits of population growth. |
| Keywords: | Domestic demand and components; Housing; Inflation and prices; Labour markets; Potential output; Recent economic and financial developments |
| JEL: | A10 E20 E31 J11 J15 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocsan:23-17&r=ure |
| By: | Chae, Joanna |
| Abstract: | While residential segregation is a persistent attribute of metropolitan areas, recent studies find segregation levels fluctuate throughout the day, reaching their lowest levels during daytime hours. This paper shows hourly variations in Black-White segregation from Monday through Sunday for the top 49 most populated metropolitan areas with Global Positioning System (GPS) data collected from mobile phones from October 2018. I find that segregation levels are higher on average over weekends compared to that of weekdays. I use models to identify which features of neighborhoods can be attributed for higher levels of segregation on weekends, which include all demographic variables and nearly a third of 35 sectors of businesses and organizations, such as retail, personal care, and religious organizations. I also find more than a third of the sectors are associated with higher levels of segregation during business hours on weekdays, including academic institutions, health care, manufacturing, and financial institutions. Findings from this paper display the significance in the distinction between weekdays and weekends with where people spend their time and how this relates to racial segregation. Implications of temporal heterogeneity in the relationship organizations have with their immediate surroundings are also discussed. |
| Date: | 2023–12–24 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:casw9&r=ure |
| By: | Ninghui Li; Thomas Pihl Gade |
| Abstract: | High emigration rates are a challenge in the Western Balkans. High emigration rates might lead to inadequate skilled labor and affect firm creation, capital formation, and economic convergence. The 2021 North Macedonia census reveals that more than 12.4% of North Macedonians live abroad. To assess the consequences, we estimate the impact of emigration on the number of firms and capital formation. Business dynamics can affect emigration reversely. To alleviate the endogeneity bias, we use a shift-share instrument with the historical diaspora networks and destination countries’ GDP growth rate as a source of exogenous variations. Our results show that (1) In the short run, a 1 percentage point increase in the emigration rate leads to a 2.91% decrease in the number of firms in the area of origin; (2) The long-run effects of emigration on the number of firms are less negative than the short-run impacts; (3) Emigration mainly reduces the number of micro and small firms; (4) Emigration affects the number of firms and capital formation more in the industrial sector than the other sectors, through the skilled labor shortage channel. This paper contributes to the literature on emigration and provides implications and policy considerations for developing countries, where high emigration rates are prevalent. |
| Keywords: | Emigration; Labor market; Firm dynamics; Capital formation; North Macedonia; Panel data. |
| Date: | 2023–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/268&r=ure |
| By: | Yoshikawa, Katsuhiko; Wu, Chia-Huei; Lee, Hyun-Jung |
| Abstract: | Organisations are increasingly introducing online platforms to facilitate knowledge sharing among employees across organisational boundaries. Nonetheless, individuals do not always share knowledge on such platforms. This study aims to identify the factors that can motivate individuals to share knowledge on an online platform drawing on social exchange theory and the idea of generalised exchange, a form of social exchange identified on online knowledge-sharing platforms in previous studies. Specifically, we propose that individuals are more likely to share knowledge on online platforms when they have requests from an employee with whom they have worked in the same office in the past but do not currently work in the same office location (i.e. past-collocation history), have high levels of generalised exchange orientation, and need to use a wide variety of knowledge to complete their jobs (i.e. knowledge variety). Using a longitudinal dataset spanning 6 months among 100 users on an in-house online platform of a professional service firm, we find support for the three-way interaction hypothesis in a three-level analysis. We discuss implications on knowledge sharing on in-house online platforms. |
| Keywords: | knowledge sharing; online platforms; generalised social exchange; generalised exchange orientation |
| JEL: | J50 |
| Date: | 2022–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117627&r=ure |
| By: | Mejía, William |
| Abstract: | The study focuses on migrants’ contributions to Jamaica’s development from the ECLAC perspective on the contributions of international migration to sustainable development. Improving understanding of these contributions will enhance capacity to formulate and implement public policies and development plans that take into account the opportunities and challenges of international migration in countries of origin or return, transit and destination, in compliance with the commitments set forth in international and multilateral agreements, such as the Global Compact for Safe, Orderly and Regular Migration, the Montevideo Consensus on Population and Development and the 2030 Agenda for Sustainable Development. The first chapter analyses recent population trends, focusing on population changes between 1990 and 2020 and highlighting the role of migration. The second addresses the current contributions of migrants to sustainable development. Lastly, the document presents a series of conclusions drawn from the study. |
| Date: | 2023–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68749&r=ure |
| By: | Jonathan G. Conzelmann (The University of North Carolina at Chapel Hill); Steven W. Hemelt (The University of North Carolina at Chapel Hill); Brad J. Hershbein (W.E. Upjohn Institute for Employment Research); Shawn M. Martin (University of Michigan); Andrew Simon (The University of Chicago and Australian National University Research School of Economics); Kevin M. Stange (University of Michigan) |
| Abstract: | This paper introduces a new measure of the labor markets served by colleges and universities across the United States. About 50 percent of recent college graduates are living and working in the metro area nearest the institution they attended, with this figure climbing to 67 percent in-state. The geographic dispersion of alumni is more than twice as great for highly selective 4-year institutions as for 2-year institutions. However, more than one-quarter of 2-year institutions disperse alumni more diversely than the average public 4-year institution. In one application of these data, we find that the average strength of the labor market to which a college sends its graduates predicts college-specific intergenerational economic mobility. In a second application, we quantify the extent of “brain drain” across areas and illustrate the importance of considering migration patterns of college graduates when estimating the social return on public investment in higher education. |
| Keywords: | colleges, labor markets, postsecondary education, economic mobility |
| JEL: | I23 I25 J21 J40 J61 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:upj:weupjo:23-393&r=ure |
| By: | Xu, Guo; Bertrand, Marianne; Burgess, Robin |
| Abstract: | How to allocate personnel is a central question in the organization of the state. We link survey data on the performance of 1471 elite civil servants in India to their personnel records between 1975 and 2005 to study how home allocations affect their performance and careers. Using exogenous variation in home assignment generated by an allocation rule, we find that bureaucrats assigned to their home states are perceived to be less effective and more likely to be suspended. These negative effects are driven by states with higher levels of corruption and cohorts with greater numbers of home state officers. |
| Keywords: | AAM requested |
| JEL: | J45 O40 D73 M50 |
| Date: | 2023–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:119871&r=ure |
| By: | Hlavac, Marek |
| Abstract: | According to official statistics, Slovakia’s GDP per capita at PPP has been declining compared to the EU-27 average since 2016. This unfavorable evolution is influenced by shortcomings in the input data provided to Eurostat – especially in expenditures on housing rentals and in housing stock data. Using the Eurostat-OECD methodology for calculating purchasing power parities, we estimate alternative scenarios that correct these shortcomings. Our results still suggest that Slovakia’s convergence level has been stagnating since 2016. They are less optimistic than those by other Slovak institutions, and are not very sensitive to changes in assumptions about the prices of rentals. |
| Keywords: | Slovakia; purchasing power parity; convergence; housing; imputed rent |
| JEL: | E01 E3 E31 O47 |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119323&r=ure |
| By: | Akimova, Varvara (Акимова, Варвара) (The Russian Presidential Academy of National Economy and Public Administration); Voloshinskaya, Anna (Волошинская, Анна) (The Russian Presidential Academy of National Economy and Public Administration); Moskvitina, Natalia (Москвитина, Наталья) (The Russian Presidential Academy of National Economy and Public Administration); Komarov, Vladimir (Комаров, Владимир) (The Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | Relevance of the research: at the present time, a new round of competitive technological race, spurred on by the United States and China, is clearly visible. Even today, the budget for research and development in China and the United States is 20 times higher than the budget for R&D in Russia, which creates the risk of losing national technological sovereignty. The answer to this challenge could be the creation of super-regions - territories of scientific and technological breakthrough, in which intelligence, research and innovation infrastructure are concentrated, where there are world-class campuses with high quality conditions, and effective interaction between business, science and education is organized. The aim of the study is to analyze the best world practices for creating technological super-regions in order to form an effective national innovation system and to develop conceptual proposals for creating technological super-regions in Russia. Research methods and methodology: comparative analysis, system analysis, quantitative and qualitative analysis, historical and economic analysis. Scientific novelty: the work contains a comprehensive analysis of the factors and mechanisms of formation of 10 global super-regions of the world with different spatial formats and genesis, which include: Silicon Valley (USA), urban innovation ecosystems of Boston (USA) and Cambridge (UK), Raleigh Research Triangle - Durham Chapel Hill (Research Triangle Park, USA), Sophia Antipolis (France), Silicon Allee (Germany), Tsukuba (Japan), Bangalore-Karnataka (India), Shenzhen (China) and Guangzhou (China). An author's model of a super-region has been developed, as well as criteria for choosing locations for creating superregions. Results: based on the analysis of foreign practices, it was revealed that among the mechanisms for the formation of super-regions, a hybrid model prevails: government intervention is combined with the initiative of business and academic circles. The authors have developed a model of an innovative super-region, where in the center there are two equivalent factors - the "place" factor (everything that is created in a given location by a person) and the "climate" factor (nature and climate that cannot be changed), as well as a set of selection criteria for potential locations. On the basis of the developed model, recommendations are proposed for choosing territories for creating innovation centers in Russia: in the short term, these include Greater Sochi (Adler, Krasnaya Polyana), New Moscow; in the medium term - the southern coast of Crimea, Primorsky Krai and the Kaliningrad region. |
| Keywords: | innovation super-regions, innovation centers, development factors, formation mechanisms, national innovation system, prospects for creation in Russia |
| JEL: | B52 O20 R58 |
| Date: | 2022–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:w20220312&r=ure |
| By: | LaBelle, Jesse (Northwestern University); Martinez-Zarzoso, Inmaculada (Univerity of Göttingen & Universitat Jaume I); Santacreu, Ana Maria (Federal Reserve Bank of St. Louis); Yotov, Yoto (Drexel University) |
| Abstract: | We build a stylized model that captures the relationships between cross-border patenting, globalization, and development. A byproduct of our theory is a gravity equation for cross-border patents. To test the model’s predictions, we compile a new comprehensive dataset that tracks patents within and between countries and industries, for 1980-2019. The econometric analysis reveals a strong, positive impact of policy and globalization on cross-border patent flows, especially from rich (North) to poor (South) countries. A counterfactual welfare analysis suggests that the increase in patent flows from North to South has benefited both regions, with South gaining more than North post-2000, thus lowering real income inequality in the world. |
| Keywords: | Cross-border Patents; Gravity; Policy; Globalization; Development |
| JEL: | F63 O14 O33 O34 |
| Date: | 2023–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:ris:drxlwp:2023_007&r=ure |
| By: | Michelle Hansch (HU Berlin); Jan Nimczik (ESMT, RFBerlin, IAB, IZA); Alexandra Spitz-Oener (HU Berlin, RFBerlin, IAB, IZA) |
| Abstract: | In a context where improved employment outcomes entail relocating to a new destination, how does information from former coworkers alter workers’ labor migration decisions? We explore this question using the unique backdrop of German reunification in the early 1990s. For former workers of the German Democratic Republic (GDR), improving employment outcomes typically meant relocating to West Germany, which most were reluctant to do. We show that information from former GDR coworkers in West Germany significantly increased the employment probability of East Germans in West Germany. To identify these network effects, we document and exploit that GDR workers were as-good-as randomly assigned to networks by the GDR system from the perspective of the West German market economy. We then establish that the networks only trigger migration responses among East Germans whose contacts had positive work experiences in the West and were similar in their earnings potential in the market-based economy of reunified Germany. These contacts, in essence, serve as role models for the workers’ prospects in the West, leading workers to trust the advice and assessments provided and ultimately altering the expected benefits from labor migration for the specific worker. |
| Date: | 2024–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:490&r=ure |
| By: | Zaheer Allam (IAE Paris - Sorbonne Business School); Simon Elias Bibri; Didier Chabaud (IAE Paris - Sorbonne Business School); Carlos Moreno (IAE Paris - Sorbonne Business School) |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03997407&r=ure |
| By: | Alec Brandon (Johns Hopkins University); Justin E. Holz (University of Michigan); Andrew Simon (The University of Chicago, Australian National University, Research School of Economics); Haruka Uchida (University of Chicago) |
| Abstract: | When minimum wages increase, employers may respond to the regulatory burdens by substituting away from disadvantaged workers. We test this hypothesis using a correspondence study with 35, 000 applications around ex-ante uncertain minimum wage increases in three U.S. states. Before the increases, applicants with distinctively Black names were 19 percent less likely to receive a callback than equivalent applicants with distinctively white names. Announcements of minimum wage hikes substantially reduce callbacks for all applicants but shrink the racial callback gap by 80 percent. Racial inequality decreases because firms disproportionately reduce callbacks to lower-quality white applicants who benefited from discrimination under lower minimum wages. |
| Keywords: | minimum wage, correspondence study, racial discrimination |
| JEL: | J23 C93 J71 J15 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:upj:weupjo:23-389&r=ure |
| By: | Fares Bounajm; Austin McWhirter |
| Abstract: | We show how Canadian mortgage debt dynamics can be modelled in a semi-structural macroeconomic model, such as the Bank of Canada’s LENS. The model we propose accounts for Canada’s unique mortgage debt structure. |
| Keywords: | Economic models; Monetary policy transmission |
| JEL: | E27 E43 E47 G51 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocsan:24-1&r=ure |
| By: | Stark, Oded (University of Bonn); Bielawski, Jakub (University of Krakow); Falniowski, Fryderyk (University of Krakow) |
| Abstract: | We present a new index for measuring income inequality in networks. The index is based on income comparisons made by the members of a network who are linked with each other by direct social connections. To model the comparisons, we compose a measure of relative deprivation for networks. We base our new index on this measure. The index takes the form of a ratio: the network's aggregate level of relative deprivation divided by the aggregate level of the relative deprivation of a hypothetical network in which one member of the network receives all the income, and it is with this member that the other members of the network compare their incomes. We discuss the merits of this representation. We inquire how changes in the composition of a network affect the index. In addition, we show how the index accommodates specific network characteristics. |
| Keywords: | income inequality in networks, relative deprivation in networks, an index of income inequality in networks, compositional changes of networks |
| JEL: | D31 D63 I31 L14 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16666&r=ure |
| By: | Taskin, Ahmet Ali; Yaman, Firat |
| Abstract: | What is the role of financial deregulation on rising finance wage premium in the US? This study makes use of the Interstate Banking and Branching Efficiency Act of 1994 as an exogenous shift to local banking markets and investigates the effect of deregulation induced competition on relative wages in finance. We find that the finance wage premium increased significantly in deregulated states. Our estimates suggests that the deregulation explains about a quarter of the increase in finance wage premium between 1994 and 2008. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwqwdp:280992&r=ure |
| By: | Kutnyi, Oleh |
| Abstract: | This study explores the nuanced relationship between economic freedom and happiness, investigating the influence of geopolitical regions and developmental stages on this association. Utilizing cross-sectional secondary data from 135 countries in 2021, this research employs a regression analysis incorporating economic freedom as the independent variable and happiness as the dependent variable. The model further includes interactions between economic freedom and both the geopolitical region and level of development. Initial findings affirm a positive correlation between economic freedom and happiness across countries. However, when considering interactions, distinct patterns emerge. Contrary to expectations, the impact of economic freedom on happiness does not significantly differ among countries at varying development stages. Conversely, geopolitical context emerges as a critical factor, notably highlighting the significance of economic freedom in fostering happiness within Western Europe compared to other regions. |
| Keywords: | Economic Freedom, Happiness, Geopolitical Regions, Western Europe |
| JEL: | C3 I3 I31 |
| Date: | 2023–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119620&r=ure |
| By: | Gutmann, Jerg; Langer, Pascal; Neuenkirch, Matthias |
| Abstract: | In this first empirical analysis of how sanctions affect international migration, we apply two estimation strategies, a panel difference-in-differences model and an event study approach. Our dataset covers 79, 791 dyad-year observations, reflecting migration flows from 157 origin countries to 32 (largely OECD) destination countries between 1961 and 2018. The data supports that UN and joint EU-US sanctions increase emigration from target countries by around 20 percent. Our event study results for joint EU-US sanctions imply a gradual increase in emigration over the course of a sanction episode. The impact of UN sanctions on international migration is smaller and less persistent. Moreover, the effects are driven by target countries with fewer political rights and civil liberties, where emigration substitutes for the costly voicing of dissent. Finally, our results do not support systematic gender differences in the effect of sanctions on migration. |
| Keywords: | Exit, Gender Differences, International Sanctions, Migration, Voice |
| JEL: | F22 F51 J16 O15 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ilewps:77&r=ure |
| By: | Philippe Delacote (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CEC - Chaire Economie du Climat - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres); Gwenolé Le Velly (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Gabriela Simonet (Independent Researcher) |
| Abstract: | Since the establishment of REDD+, hundreds of projects have emerged around the globe. Much attention has been given to REDD+ projects in the literature, but the conditions under which they are likely to be effective are still not well known. In particular, the location bias concept states that projects are more likely to be implemented in remote areas, where development pressure is low, hence questioning the additionality of these projects. In this article, we examine this concept, assessing how the status of REDD+ project proponents and the project certification influence the choice of location and the project's additionality. Using a sample of six REDD+ projects in Brazil, we show that these two dimensions can impact location choice toward areas with higher or lower opportunity costs and that this choice can impact additionality. We also show that the selection of an area with low opportunity costs, which is frequently presented as a location bias, does not necessarily preclude additionality. |
| Keywords: | Additionality, Conservation policy, Deforestation, Impact evaluation, REDD+, Spatial analysis |
| Date: | 2022–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03467584&r=ure |
| By: | Sylvie Christofle (ESPACE - Études des Structures, des Processus d’Adaptation et des Changements de l’Espace - UNS - Université Nice Sophia Antipolis (1965 - 2019) - AU - Avignon Université - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur, GRM - Groupe de Recherche en Management - EA 4711 - UNS - Université Nice Sophia Antipolis (1965 - 2019) - UCA - Université Côte d'Azur, ITCA - Institut du Tourisme Côte d'Azur - UCA - Université Côte d'Azur, IAE Nice - Institut d'Administration des Entreprises - Nice - UNS - Université Nice Sophia Antipolis (1965 - 2019) - UCA - Université Côte d'Azur) |
| Abstract: | MICE tourism (Meeting, Incentive, Congress, Exhibition/Event), particularly in its international congress branch, is envisaged here as an interface system (Chapelon, 2008, Perez, 2021) fundamentally connected to the spatial system of European capitals (Paris, Berlin, Prague, Lisbon, London, Stockholm…) and its dynamics. These capitals have already been affected by various kinds of systemic shocks (war etc.), but the most recent is caused by the covid-19 pandemic. The responses of the European cities included in our panel resort to various areas of adaptability to the crisis in order to ensure and strengthen their resilience. These diverse responses – economic, communicational, health-related, managerial, technological… conjunctural or structural – shape a potential future for the sector, which is nevertheless still to be re-imagined to a certain extent. |
| Abstract: | Le tourisme MICE (Meeting, Incentive, Congress, Exhibition/Event), notamment dans sa branche congrès internationaux, est envisagé ici comme un système d'interface (Chapelon, 2008, Perez, 2021) fondamentalement lié au système spatial des capitales européennes (Paris, Berlin, Prague, Lisbonne, Londres, Stockholm...) et à ses dynamiques. Ces capitales ont déjà été affectées par divers types de chocs systémiques (guerre, etc.), mais le plus récent est causé par la pandémie de covid-19. Les réponses des villes européennes incluses dans notre panel font appel à différents domaines d'adaptabilité à la crise afin d'assurer et de renforcer leur résilience. Ces réponses diverses - économiques, communicationnelles, sanitaires, managériales, technologiques... conjoncturelles ou structurelles - dessinent un avenir potentiel pour le secteur, qui reste cependant à réimaginer dans une certaine mesure. |
| Keywords: | TOURISM, MICE tourism, spatial resilience, global cities, systemic shocks |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04343149&r=ure |
| By: | Borra, Cristina (University of Seville); González, Libertad (Universitat Pompeu Fabra); Patiño, David (University of Seville) |
| Abstract: | We study the effects of school starting age on siblings' infant health. In Spain, children born in December start school a year earlier than those born the following January, despite being essentially the same age. We follow a regression discontinuity design to compare the health at birth of the children of women born in January versus the previous December, using administrative, population-level data. We find small and insignificant effects on average weight at birth, but, compared to the children of December-born mothers, the children of January-born mothers are more likely to have very low birthweight. We then show that January-born women have the same educational attainment and the same partnership dynamics as December-born women. However, they finish school later and are (several months) older when they have their first child. Our results suggest that maternal age is a plausible mechanism behind our estimated impacts of school starting age on infant health. |
| Keywords: | school starting age, infant health, maternal age, school cohort |
| JEL: | I12 J12 J13 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16676&r=ure |
| By: | Bossavie, Laurent (World Bank); Goerlach, Joseph-Simon (Bocconi University); Özden, Çağlar (World Bank); Wang, He (World Bank) |
| Abstract: | This paper examines international temporary migration as an intermediary step among aspiring entrepreneurs to accumulate the needed capital when they face credit constraints at home. The analysis is based on a representative dataset of lifetime employment histories of return migrants from Bangladesh. After establishing the credit constraints that potential entrepreneurs face, the paper shows that non-agricultural self-employment rates are significantly higher among returning migrants – over half versus around 20% of non-migrants. Most migrants transition into self-employment by using their savings from abroad as the main source of financing. The paper then offers, for the first time, a detailed account of the financial costs and benefits of international migration. Our findings suggest that temporary migration can contribute to structural transformation of lower-income countries by enabling credit-constrained workers to enter into non-agricultural entrepreneurship. |
| Keywords: | temporary migration, credit constraints, risky investment, entrepreneurship |
| JEL: | J61 O15 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16662&r=ure |
| By: | Shapiro, Joseph S |
| Abstract: | The quality and inequality of US drinking water investments have gained attention after recent environmental disasters in Flint, Michigan, and elsewhere. We compare the formula-based targeting of subsidized loans provided under the Safe Drinking Water Act with the targeting of congressional drinking water earmarks (``pork barrel'' spending). Earmarks are often critiqued for potentially privileging wealthier and more politically connected communities. We find that earmarks target Black, Hispanic, and low-income communities, partly due to targeting water systems serving large populations. Earmark and loan targeting differ significantly across all the demographics we analyze. Compared to Safe Drinking Water Act loans, earmarks disproportionately target Hispanic communities but not Black or low-income communities. |
| Keywords: | Social and Behavioral Sciences, Earmarks, drinking water, inequality, targeting |
| Date: | 2024–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:agrebk:qt7w68132r&r=ure |
| By: | Agostina Brinatti; Xing Guo |
| Abstract: | We study how the effects of U.S. restrictions on skilled immigration affect the Canadian economy and American workers’ welfare. In 2017, the United States implemented a policy that tightened the eligibility criteria for U.S. visas. This was followed immediately by a trend break in the number of skilled immigrant admissions to Canada. We use quasi-experimental variation introduced by this policy over time and across immigrant groups, along with U.S. and Canadian visa applications data, to show that in 2018 visa applications for moving to Canada increased by 30% relative to the period before the restrictions were imposed. We then study how the restrictions affected Canadian firms. We use comprehensive Canadian administrative databases containing the universe of employer-employee linked records, immigration records, and international trade data. We find that Canadian firms that were relatively more exposed to the inflow of immigrants increased production, exports, and employment of Canadian workers. Finally, we study the policy’s impact on American workers by incorporating immigration policy into a multi-sector international trade model. With international trade, the increase in immigration to other countries due to the restrictions affects American wages through U.S. exports and consumption prices. We calibrate the model using our novel data and reduced-form estimates. We find that the welfare gains for American workers targeted for protection by the 2017 policy are up to 25% larger in a closed economy than they are in an open economy with the observed trade levels. |
| Keywords: | International topics; Labour markets; Recent economic and financial developments; Trade integration |
| JEL: | F16 F22 J61 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:23-60&r=ure |
| By: | Yusuf Soner Baskaya; Ilhyock Shim; Philip Turner |
| Abstract: | Using quarterly data on macroprudential policy (MaPP) measures and capital flow management measures (CFMs) taken by 39 economies in 2000–2013, we analyse how domestic credit and cross-border capital flows respond to such measures. In doing so, we take a granular approach by considering price-based and quantity-based MaPP measures and CFMs, and also examine if the level of financial development matters in explaining policy effectiveness. We find that quantity-based MaPP measures significantly affect total credit and its components such as domestic bank credit, corporate credit and housing credit, but that the effects fade away beyond a certain level of financial development, suggesting that highly developed financial markets provide opportunities to circumvent MaPP measures imposed on banks. We also find that both price- and quantity-based CFMs are effective in slowing down bank inflows with the former effective at all levels of financial development and the latter effective at relatively high levels. Finally, we find some evidence on the existence of leakage effects. For example, tighter overall MaPP measures are associated with larger bond inflows, and tighter quantity-based MaPP measures with larger bank inflows. |
| Keywords: | bank lending, capital flow management measures, cross-border capital flows, financial development, macroprudential policy |
| JEL: | F34 G15 G28 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:1158&r=ure |
| By: | Iacono, Roberto; Smedsvik, Bård |
| Abstract: | We analyze behavioral responses to wealth taxation, estimating the causal effects of a unique municipal wealth tax reform in Norway. We exploit variation from the single-period municipal reform reducing the marginal tax rate (MTR) on wealth exclusively in the northern Norwegian municipality of Bø from 0.85% to 0.35%, since 2021. Mimicking the behaviour of a tax haven, Bø represents the first municipality to unilaterally reduce the municipal wealth tax rate since the establishment of wealth taxation in Norway in 1892. We document a significant 66.6% increase in average taxable wealth in response to a 1 percentage point drop in the wealth tax rate. The elasticity of taxable wealth increases to 71.6% when focusing exclusively on wealth taxpayers. We also estimate a significant but more modest 10.3% jump in the weighted mass of wealth taxpayers in the treated municipality. Non-real effects of the reform dominate: mobility of wealthy taxpayers appears as the major behavioral response to the change in the net tax rate, accounting for a staggering 79% of the post-treatment total net wealth in the treated municipality (up from 19% in the pre-reform period). These results emerge in a context with third-party reported wealth data with negligible measurement error, limited evidence of bunching, highly enforced residence-based wealth taxation, and a low degree of out-migration rates. |
| Keywords: | wealth tax; administrative data; mobility effects |
| JEL: | H20 H21 H24 H26 |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121084&r=ure |
| By: | Chiswick, Barry R. (George Washington University) |
| Abstract: | This paper is a review of the literature in economics up to the early 1980s on the issue of estimating the earnings return to schooling and labor market experience. It begins with a presentation of Adam Smith's (1776) analysis of wage determination, with the second of his five points on compensating wage differentials being "the easiness or cheapness, or the difficulty and expense" of acquiring skills. It then proceeds to the analysis by Walsh (1935) estimating the net present value of investments at various levels of educational attainment. Friedman and Kuznets (1945) also used the net present value method to study the earnings in five independent professional practices. Based on the net present value technique, Becker (1964) estimates internal rates of return from high school and college/university schooling, primarily for native-born white men, but also for other demographic groups. The first regression-based approach is the development of the schooling-earnings function by Becker and Chiswick (1966), which relates the logarithm of earnings, as a linear function of years invested in human capital, with the application to years of schooling. This was expanded by Mincer (1974) to the "human capital earnings function" (HCEF), which added years of post-school labor market experience. Attractive features of the HCEF are discussed. Extensions of the HCEF in the 1970s and early 1980s account for interrupted labor marker experience, geographic mobility, and self-employment and unpaid family workers. |
| Keywords: | human capital, schooling earnings function, human capital earnings function, schooling, labor market experience, women, immigrants, less developed countries, self-employed, unpaid workers |
| JEL: | I24 I26 J3 J46 J61 O15 B29 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16668&r=ure |
| By: | OKANIWA Fusae; IBUKA Yoko; MARUYAMA Shiko |
| Abstract: | How did the 1947 reform of the compulsory education system in Japan change the school enrollment rate of 15-year-old children? This reform is important in the history of the postwar education system in Japan. However, it is unclear whether this reform increased the actual years of education received. We used the Annual Report of the Ministry of Education and Population Estimates to calculate the enrollment rates of 15-year-old children, matching school classifications and grades before and after the reform. The results showed that the enrollment rate for 15-year-old children increased to 95% after the reform, indicating that the 9-year compulsory education system had been established. It was also found that 90% of children had already received eight years of education before the reform. The increase in the years of education was modest, and its impact on human capital accumulation may not have been significant. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:24001&r=ure |
| By: | Steven Tucker (University of Waikato); Yilong Xu (Utrecht University) |
| Abstract: | Research in Finance has long been intrigued by the causes of price bubbles. It has been argued that investors having doubts about the rationality of others may speculate on future capital gains. However, in an important contribution, Lei et al. (2001, Econometrica) argue that speculation is not the driver of bubbles in the absence of common knowledge of rationality, suggesting a focus on mistakes and confusion. Tucker and Xu (2024) revisit Lei et al.’s (2001) design, confirming the existence of bubbles, but argue that although their design removes the ability to speculate, it potentially introduces unintended design artifacts that may induce bubbles. We design a novel condition that eliminates incentives for speculation without these undesirable effects, which effectively eliminates bubbles even in the presence of confusion and/or lack of common expectations. We conclude that speculation plays a critical role in bubble formation, and thus does matter. |
| Keywords: | speculation; bubbles; cognitive ability; asset market experiment |
| JEL: | C91 G13 |
| Date: | 2024–01–08 |
| URL: | http://d.repec.org/n?u=RePEc:wai:econwp:24/02&r=ure |