|
on Urban and Real Estate Economics |
| By: | Balboni, Clare |
| Abstract: | Coasts contain a disproportionate share of the world's population, reflecting historical advantages, but environmental change threatens a reversal of coastal fortune in the coming decades as natural disasters intensify and sea levels rise. This paper considers whether large infrastructure investments should continue to favor coastal areas. I estimate a dynamic spatial equilibrium framework using detailed geo-referenced data on road investments in Vietnam from 2000 to 2010 and find evidence that coastal favoritism has significant costs. The results highlight the importance of accounting for the dynamic effects of environmental change in deciding where to allocate infrastructure today. |
| Keywords: | transport infrastructure; regional development; natural disaster risk; climate change; path dependence; spatial misallocation; sea level; floods; Vietnam |
| JEL: | J61 O18 O53 Q54 R11 R12 R13 R42 |
| Date: | 2025–01–13 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126336 |
| By: | Becka Brolinson (Federal Housing Finance Agency); William M. Doerner (Federal Housing Finance Agency); Arne Johan Pollestad (Federal Housing Finance Agency); Michael J. Seiler (Federal Housing Finance Agency) |
| Abstract: | This paper investigates the impact of the 2021–2022 European energy crisis, a significant macro-financial shock, on homebuyer willingness-to-pay for energy-efficient homes in Norway. Leveraging the country’s electricity market---characterized by five distinct regions with varying exposure to European power prices---as a quasi-experiment, we analyze how energy price shocks influence housing market dynamics. Applying a triple differences regression framework to real estate transactions, we find that home prices in regions affected by the shock fell significantly relative to unaffected regions, with single-family dwellings outside major cities experiencing the largest declines. While energy-efficient homes appeared less vulnerable, this effect was only marginally significant. Moreover, the negative price effects persisted despite the introduction of electricity price subsidies. These findings highlight the complex relationship between energy costs, housing market valuations, and buyer preferences, offering generalizable insights into the resilience of housing markets to macro-financial shocks and the role of policy interventions in mitigating their effects. |
| Keywords: | energy price shock, housing market, energy efficiency, energy performance certificate, government subsidy, macro-financial shocks |
| JEL: | D12 G14 H23 L94 P18 Q4 R2 R3 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:hfa:wpaper:24-10 |
| By: | Hannah Attar |
| Abstract: | This paper investigates the determinants of home prices in Dana Point, California to analyze various factors influencing the real estate market. The results are based on a cross-sectional dataset that incorporates year and month-time dummies to account for temporal trends, as well as spatial variables that capture effects within and between clusters. To address endogeneity issues between square footage and price, parking is employed to instrument square footage and break the reverse causality link. The robustness of the instrument is confirmed through statistical tests, indicating a strong relationship with square footage. Additionally, this study employs the use of Probability models to test Tobit's robustness at estimating the dummy-transformed price variable. Spatial trends are analyzed through fixed effects, random effects, as well as Spatial Autoregressive models absorbing cluster factors, which highlight the differences in price dynamics across various clusters within Dana Point. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.03583 |
| By: | Caroline Hopkins (Federal Housing Finance Agency); Alexandra Marr (Federal Housing Finance Agency); November Wilson (Federal Housing Finance Agency) |
| Abstract: | Hurricanes cause billions of dollars in damages to the United States annually. Property damages and associated local economic impacts from hurricanes can affect homeowners' ability to pay their mortgage and in turn can harm borrowers' access to credit or decrease property values in the long term. This paper studies how hurricanes affect loan outcomes in the year following the event. With our unique dataset, we are able to consider how mortgage performance varies by severity, interventions, and low-income or minority status borrowers. We find that delinquencies, modifications, and foreclosures increase after an event and that more severe events see higher increases. For example, we find the average impact of all 28 storms on 90-day delinquencies is 0.025% over the following 12 months, increasing by another 0.013% with each inch of rain. Prepays decrease overall due to a decrease in refinances, but non-cashout and non-refinance prepays increase for a subset of the population with access to insurance and disaster assistance. Delinquencies increase more so for minority and low-income borrowers. Further, minority borrowers experience higher rates of modifications after a hurricane. These results demonstrate that hurricanes decrease borrower welfare overall and more so for vulnerable borrowers through increased negative loan outcomes. |
| Keywords: | hurricanes, mortgages, borrowers, equity, housing, disasters |
| JEL: | Q54 R11 R30 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:hfa:wpaper:24-09 |
| By: | Zanoni, Wladimir; Hernández, Hugo; Gomez, José; Brito, Judith |
| Abstract: | This paper investigates housing discrimination in Ecuadors rental market against women- led and gay male and lesbian (WGL) families, compared to male-led and heterosexual families. Discrimination in housing markets is a critical quality-of-life issue because it exacerbates social disparities by limiting access to safe neighborhoods, quality services, and economic opportunities for marginalized groups. Using an artifactual field experiment with real estate agents (REAs) in Ecuador, we examine whether discrimination varies by the gender of REAs and explore the underlying mechanisms driving this behavior. Our analysis disentangles the observed discriminatory practices into taste-based prejudice and statistical discrimination (stereotyping). We find that discrimination against WGL families is predominantly driven by stereotypes rather than explicit prejudices. Women-led families are favored, while gay and lesbian families face varying levels of discrimination, with stereotypes significantly influencing REAs decisions. Our work contributes to the literature by providing new evidence on the dynamics of gender and sexual orientation discrimination in a Latin American housing market, evidence that emphasizes the role of stereotyping. These findings have significant policy implications because they highlight the need for interventions that target and dismantle harmful stereotypes to promote equity in housing access. |
| Keywords: | field experiments;prejudice;gender;LGBTQ+ |
| JEL: | J71 R21 J16 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:13889 |
| By: | Matthewes, Sonke; Borgna, Camilla |
| Abstract: | This paper estimates how marginal increases in the flexibility of between-school tracking affect student attainment by exploiting the addition of non-selective ‘comprehensive schools’ and hybrid ‘vocational high schools’ to Germany's tracked school system. These schools opened up alternative pathways to the university-entrance certificate, which traditionally could only be obtained at academic-track schools. We use administrative records to compile a county-level panel of school supply and attainment for 13 cohorts between 1995 and 2007. Cross-sectionally, the supplies of all three school types awarding the university-entrance certificate correlate positively with its attainment. However, for academic-track and comprehensive schools this association is not robust to the inclusion of regional controls, suggesting that it reflects regional differences in educational demand rather than supply-side effects. For vocational high schools, in contrast, we find robust evidence for positive attainment effects not only in cross-sectional and two-way fixed-effects panel regressions, but also in an event-study design that exploits the quasi-random timing of new school openings. Likely reasons for their success are that they lower the (perceived) costs of educational upgrading for late-bloomers, and their hybrid curriculum, which may retain students in general schooling who would otherwise enter vocational training. |
| Keywords: | ability tracking; difference-in-differences; educational expansion; event study; regional inequality; school supply |
| JEL: | I28 J24 |
| Date: | 2025–02–28 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126595 |
| By: | William M. Doerner (Federal Housing Finance Agency); Michael J. Seiler (Federal Housing Finance Agency); Matthew Suandi (Federal Housing Finance Agency) |
| Abstract: | We find a puzzling increase in home valuations following the adoption of stricter flood standards. At the same time, we are observing shifts in appraisers' valuation practices. Specifically, appraisers reduce negative language, use fewer flood-zone comparables, and apply smaller adjustments to comparable sales, suggesting a behavioral adaptation rather than a market mispricing. Experienced appraisers are more likely to underappraise properties, yet appraisal values still generally match or exceed contract prices 89.2% of the time. These aforementioned changes and the underlying market dynamics are unlikely to be driven by changes in underlying flood risk. Future research on this topic is warranted. |
| Keywords: | appraisal, disclosure, flood, mortgage, real estate |
| JEL: | D84 G18 G21 K32 Q54 R31 R38 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:hfa:wpaper:25-02 |
| By: | Adorno, Bruno Vargas; Pereira, Rafael Henrique Moraes; Amaral, Silvana |
| Abstract: | Proximity to urban green spaces offers numerous benefits, sparking increased research and policy interest in equitable access for different population groups. While spatial analyses evaluate access to urban green space, previous studies overlook fine-grained spatial disparities, needed for targeted urban planning. Spatial clustering models (Local Indicators of Spatial Association – LISA) group values significantly higher and lower than the average in the geographic space. In turn, spatial regression (Geographically Wheigted Regression – GWR) reveals the strength and direction of the correlation between variables across space. Here, we investigate whether and how the combination of both types of models helps examine distributional green equity. We show how combining LISA and GWR gives a more nuanced understanding of distributional green equity. We apply this approach to Goiânia, Brazil, with an empirical analysis of access to three categories of green spaces: tree cover, herb-shrub, and public green spaces. Using open-source methods and tools, we examine variations in accessibility for black people, women, and people of different age, literacy, and income groups. We used a new accessibility metric accounting for the size/area of green spaces, walking times and competition for accessing green spaces. The analyses revealed access disparities by population group and green space category identifying specific regions in the city and population groups with consistently limited access to urban green spaces, guiding planners with refined information to prioritize green space interventions where they are most likely needed. This method enables targeted, equitable urban planning that fosters inclusive access to green spaces for diverse communities. |
| Date: | 2025–01–06 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:sc9wp |
| By: | Luke Heath Milsom |
| Abstract: | Using data from the Doomsday Book, I find that areas of England that were 10% richer in 1086 are on average almost 2% richer today. Using a natural experiment and a dynamic quantitative spatial economics model I show that this persistence is not due to path dependency. Instead, the 1086 economy was moving towards a different, but correlated, long-run spatial equilibrium than that observed in 2020. This correlation in spatial equilibria can in part be explained by local market access. Modern place-based policies aiming to shift the spatial distribution of economic activity should focus on changing location fundamentals if they are to have long-run impacts. |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:ete:ceswps:746864 |
| By: | Ran Abramitzky; Leah Platt Boustan; Osea Giuntella |
| Abstract: | Immigrant enclaves offer valuable ethnic amenities but may delay assimilation. We study enclave formation in the Age of Mass Migration by using the centralized location decisions for “ethnic” Catholic churches. After a church opening, same-ethnicity residents of chosen neighborhoods experienced falling earnings but strengthened communal ties, as compared to residents of areas matched on baseline characteristics. Treated residents held more manual occupations, and increased in-group marriage and naming. These effects persist into the second generation and are not observed for non-ethnic neighbors. Consistent with the historical record, Poles organized communal life around neighborhood parishes, but Italians were less church-centered. |
| JEL: | N92 R23 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33362 |
| By: | Tamim, Abdulrazzak (University of California, Berkeley); Smith, Emma (Georgetown University); Palmer, I. Bailey (University of California, Berkeley); Miguel, Edward (University of California, Berkeley); Leone, Samuel (University of California, Berkeley); Rozo, Sandra V. (World Bank); Stillman, Sarah (London School of Economics) |
| Abstract: | Refugees require assistance for basic needs like housing but local host communities may feel excluded from that assistance, potentially affecting community relations. This study experimentally evaluates the effect of a housing assistance program for Syrian refugees in Jordan on both the recipients and their neighbors. The program offered full rental subsidies and landlord incentives for housing improvements, but saw only moderate uptake, in part due to landlord reluctance. The program improved short-run housing quality and lowered housing expenditures, but did not yield sustained economic benefits, partly due to redistribution of aid. The program unexpectedly led to a deterioration in child socio-emotional well-being, and also strained relations between Jordanian neighbors and refugees. In all, housing subsidies had limited measurable benefits for refugee well-being while worsening social cohesion, highlighting the possible need for alternative forms of aid. |
| Keywords: | refugees, housing, forced migration, social integration |
| JEL: | D22 J61 O17 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17622 |
| By: | Lu, Hongyu; Liu, Haobing; Guin, Angshuman; Rodgers, Michael O; Guensler, Randall |
| Abstract: | This report summarizes the impact on corridor-level energy use and emissions associated with the 2018 opening of the I-75 Northwest Corridor (NWC) and I-85 Express Lanes in Atlanta, GA. The research team tracked changes in vehicle throughput on the managed lane corridors (extracted from GDOT’s Georgia NaviGAtor machine vision system after comprehensive QA/QC) and performed a difference-in-difference analysis to exclude regional changes, pairing test sites vs. control sites not influenced by the openings. The results show a large increase in overall peak-period vehicle throughput on the NWC, especially on I-575, due to the congestion decrease (20 mph speed increases at some locations). The increase in corridor-level energy use and emissions was smaller than vehicle throughput, but still significant. Predicted downwind maximum CO concentrations only increased from 1.81 ppm to 1.93 ppm (which remains extremely low). The increase in morning peak activity on the corridor likely resulted from diversion of some traffic into the peak from the shoulder periods, diversion of some traffic from other nearby freeway corridors, and diversion of local road traffic into the corridor. Unfortunately, without overall control volume totals and/or pre-and-post travel behavior surveys for the alternative commute routes, it is not possible to quantify the likely reductions in traffic flow and emissions that occurred along the other corridors that likely resulted from morning commute shifts. Hence, the team cannot draw reliable conclusions related to net regional or sub-regional impacts associated with the new managed lane corridors. The impact observed on the I-85 corridor was much smaller than on the NWC, especially at Indian Trail/Lilburn Road (far from the Express Lane Extension). After the Express Lanes opened, energy use and emission rates at Old Peachtree Road increased slightly (as uncongested vehicle speeds increased), but this increase may be short-lived as traffic on the corridor changes over time. View the NCST Project Webpage |
| Keywords: | Engineering, Social and Behavioral Sciences, Managed lane, high-occupancy lane, high-occupancy toll lane, emissions modeling, energy use modeling |
| Date: | 2024–08–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt93j728pn |
| By: | Bailey, N.; Ditzen, J.; Holly, S. |
| Abstract: | We analyse asymmetric spatial or network dynamics in a panel framework by first distinguishing them from stronger common effects. We eliminate pervasive influences by means of a de-factoring model and then uncover the weaker cross-sectional structures by identifying units with significant residual bivariate correlation. In order to assess the effect on a given unit i from shocks to ‘neighbouring’ units, we make use of spatial econometric techniques. Given that the effects of these shocks can be directional, i.e. depend on factors such as a city’s distance from other cities and their relative sizes appropriately defined, we measure network dependencies in terms of partial correlations instead. For this, we employ GMM and use the information in a regularised version of the residual correlation matrix to identify instruments which comply with the required relevance and exclusion restrictions for instrumentation. For the jth variable in the equation for the ith unit we select elements in the jth column of this correlation matrix that represent units that are correlated with the jth variable but are not correlated with the ith variable. Translating into the terminology of the spatial or networks literature, we focus on the effects of each unit’s neighbours’ neighbours that are not their neighbours. This approach is consistent with estimating a variant of a gravity model of idiosyncratic shocks to variables such as house prices. |
| Keywords: | Spatial interconnections, housing, multiple testing, networks |
| JEL: | C21 C23 |
| Date: | 2025–01–10 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2501 |
| By: | Rosa Sanchis-Guarner (Universitat de Barcelona & IEB); Nikodem Szumilo (University College London); Antoine Vernet (University College London) |
| Abstract: | We study the impact of improved rail access on entrepreneurship rates in England and Wales. We use data from the Census spanning 2001, 2011, and 2021 to analyse self-employment rates in granular geographic areas of around 200 residents. Specifically, we study how they respond to changes in the distance to the nearest train station occurring due to 56 new station openings. We find that all else equal, moving 1 km further away from a station reduces self-employment rates by 0.12 percentage points, with the effect dissipating beyond 7 km. Secondary results suggest that access to rail makes it easier to become self-employed while not making it more attractive compared to employment. Our findings suggest that rail infrastructure improvements can support local entrepreneurship and economic activity, contributing to regional development and reducing economic inequality. |
| Keywords: | Entrepreneurship, Rail, Self-employment |
| JEL: | L26 R11 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ieb:wpaper:doc2024-11 |
| By: | Elacqua, Gregory; Rodrigues, Mateus; Rosa, Leonardo |
| Abstract: | Teacher turnover is a major challenge for human resource management in schools, adversely affecting student learning. We examine the impact of a monetary incentive program introduced in 2022 in the city of Sao Paulo, Brazil, which aims to reduce teacher turnover by allocating wage premiums ranging from 5% to 25% of base salary based on schools turnover levels. Our results show a significant reduction in turnover: an average decrease of 18% across all schools, with an even more pronounced 30% reduction in schools offering higher incentives. Notably, the program also attracted new teachers to these higher-incentive schools. An analysis of teacher preferences similarly reveals a shift towards schools offering greater wage premiums. Furthermore, we find that schools offering high incentives experienced significant improvements in student test scores, with gains of 0.3-0.6 standard deviations in standardized assessments. The findings demonstrate the effectiveness of monetary incentives in mitigating teacher turnover and improving educational outcomes, providing evidence-based guidance for policymakers developing teacher retention strategies. |
| Keywords: | Teachers;financial incentives;teacher shortage;Teacher sorting;turnover rates;disadvantaged schools |
| JEL: | I21 J45 J63 M52 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:13950 |
| By: | Ethan Kaplan; Jorg L. Spenkuch; Cody Tuttle |
| Abstract: | In 1975, a federal court ordered the desegregation of public schools in Jefferson County, KY. In order to approximately equalize the share of minorities across schools, students were assigned to a busing schedule that depended on the first letter of their last name. We use the resulting quasi-random variation to estimate the long-run impact of attending an inner-city school on political participation and preferences among whites. Drawing on administrative voter registration records and an original survey, we find that being bused to an inner-city school significantly increases support for the Democratic Party and its candidates more than forty years later. Consistent with the idea that exposure to an inner-city environment causes a permanent change in ideological outlook, we also find evidence that bused individuals are much less likely to believe in a "just world" (i.e., that success is earned rather than attributable to luck) and, more tentatively, that they become more supportive of some forms of redistribution. Taken together, our findings point to a poverty-centered version of the contact hypothesis, whereby witnessing economic deprivation durably sensitizes individuals to issues of inequality and fairness. |
| JEL: | D72 H75 I21 I28 J15 N32 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33365 |
| By: | Miquel-Àngel Garcia-López (Universitat Autònoma de Barcelona & IEB); Luz Yadira Gómez-Hernández (London School of Economics); Rosa Sanchis-Guarner (London School of Economics) |
| Abstract: | This paper provides a theoretical framework to study the relationship between expanded road capacity, traffic volumes and increased economic activity. We build on Anas (2024) to show that increased traffic volumes do not necessarily lead to congestion if adjustments in economic factors, such as population or employment, are not substantial. We test our predictions obtaining key estimates with data from Great Britain between 2001 and 2020, and adopting a shift-share instrumental variable approach. We find that the elasticity of vehicle kilometers traveled to road capacity improvements is positive and statistically different from 1 across different specifications, while the elasticity of population and employment is positive but smaller than 1. In our framework this implies that the cost of driving does not increase above initial levels, resulting in higher consumer surplus through changes in travel demand and time savings. |
| Keywords: | Transportation, road capacity, aggregate travel cost, economic activity. |
| JEL: | H4 R41 R42 R48 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ieb:wpaper:doc2024-15 |
| By: | Horn, Stefan; Gough, Ian; Rogers, Charlotte; Tunstall, Rebecca |
| Abstract: | This paper addresses a neglected aspect of the UK housing crisis: how to rapidly but fairly decarbonise the housing stock to meet tough net zero targets while meeting housing needs of the entire population. To do so the authors adopt a radical approach based on sufficiency. The sufficiency approach is based on determining both a housing floor – a decent minimum standard for all – and a housing ceiling - above which lies unsustainable excess. The authors define these thresholds in terms of bedrooms and floorspace and analyse the distribution of housing in England. They find that excess housing is widespread, concentrated in home ownership, particularly outright ownership, and characterised by above average emissions per square metre. They conclude that current policies based solely on energy efficiency and increasing housing supply cannot achieve agreed decarbonisation goals while securing decent accommodation for those who are housing deprived. To do this will require policies that distinguish between sufficient and excess housing to make more effective use of the housing stock to meet housing needs within planetary boundaries. |
| Keywords: | excess housing; fair decarbonisation; housing distribution; housing emissions; housing needs; housing stock; maxima-ceilings; minima-floors; sufficiency; sufficiency policy |
| JEL: | R14 J01 |
| Date: | 2025–04–30 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126609 |
| By: | Joshua Bosshardt (Federal Housing Finance Agency); Simi Kedia (Rutgers University); Tim Zhang (University of Texas at San Antonio) |
| Abstract: | Using 24 million appraisals for refinance mortgages over the January 2013 to March 2024 period and comparing homes in the same census tract and year-quarter, we find that homes of single female households are appraised for 2.4% less than those of single men. Appraisers make lower adjustments to comparable properties and give worse house condition ratings for single female homes. The disparity is less pronounced when borrowers have unisex names and when appraisers have greater exposure to single female homeowners. The lower appraisal values of single female households are associated with higher interest rates, lower loan amounts and lower cash-out amounts in the refinancing. Our findings indicate that disparities in appraisals may be one reason for (female) homeowners’ sluggish refinancing activity and disparities in household wealth. |
| Keywords: | male and female disparities, home appraisals, mortgage refinance |
| JEL: | G21 J16 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:hfa:wpaper:25-01 |
| By: | Felipe J. Fonseca; Samir Jahan; Irving Llamosas‐Rosas; Tomohide Mineyama; Erick Rangel‐Gonzalez; Hugo Tuesta |
| Abstract: | Per capita growth of the Mexican economy has lagged behind G20 peers in past decades with notable disparities between the north and south. In this paper, we build on the income convergence literature by examining the impact of domestic market integration on regional growth. To this end, we incorporate insights from the Law of One Price and construct a novel measure of the strength of domestic market integration from micro-level price data. We find that domestic market integration is strongly associated with regional growth and its spillovers, along with other structural factors such as human capital and infrastructure. Our result also indicates that neighboring states’ income level and their integration into the national economy is positively correlated with a state’s growth, suggesting cross-state spillover effects and regional clustering. |
| Keywords: | Income convergence; regional economic growth; domestic market integration; structural impediments |
| Date: | 2025–01–17 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/021 |
| By: | Luke Heath Milsom |
| Abstract: | This paper asks what impact a large, but temporary, productivity shock can have on the spatial distribution of economic activity across cities in the short and long run. To answer this question I use a dynamic quantitative spatial economics model and the natural experiment of a sudden river, the Zwin, that connected Bruges to the North Sea in the 12th century. I show that despite dramatic short-run impacts in Bruges and across the Low Countries during the period the Zwin was navigable as well as in the centuries after, this shock failed to alter the prevailing long-run spatial equilibrium. Simulating alternative shock magnitudes or locations also doesn’t result in a change in spatial equilibrium, but a permanent shock would have. However, convergence is slow, in 1800 some 300 years after the Zwin became impassable aggregate welfare remains on average 2% higher across the Low Countries as compared to the counterfactual world where the Zwin had never existed. |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:ete:ceswps:746865 |
| By: | Muntasir Chaudhury (East West University); Szilvia Pápai (Concordia University and CIREQ) |
| Abstract: | We study three basic welfare axioms for school choice mechanisms with a reserve or quota-based affirmative action policy, namely non-wastefulness, respecting the affirmative action policy, and minimal responsiveness, and show that none of the previously proposed mechanisms satisfy all of them. We demonstrate that, together with an essential fairness requirement, these three welfare axioms are compatible by constructing a new mechanism which issues immediate acceptances to minority students for minority reserve seats and otherwise uses deferred acceptance. We analyze compatibilities, tradeoffs and implications concerning the three basic welfare axioms, fairness, and incentive properties. |
| Keywords: | school choice, affirmative action, minority reserves, minimal responsiveness, deferred acceptance, immediate acceptance, fairness, strategyproofness |
| JEL: | C78 D47 D63 D78 |
| Date: | 2024–05–17 |
| URL: | https://d.repec.org/n?u=RePEc:crd:wpaper:25001 |
| By: | Pezeshknejad, Parsa; Palm, Matthew; Rowangould, Dana |
| Abstract: | The Covid-19 pandemic significantly impacted transit ridership across Canada. As the pandemic begins to subside, understanding the factors that influence peoples’ decisions to use transit (or not) is crucial for the recovery and long-term sustainability of public transit. Using data from the third wave of the Public Transit and Covid-19 survey in Canada, this study evaluates who returned to pre-pandemic transit use, the factors influencing the decision to ride transit, and peoples’ intentions for future transit use. The authors find that most transit riders perceive that the pandemic is over but its effects are here to stay, though they are split about whether the pandemic still affects their transit use. While some transit riders have gradually returned to pre-pandemic transit levels, a relatively small share of those who have not yet fully returned intend to and a significant proportion do not intend to fully return. About half of transit riders will return to transit at a lower usage level than before the pandemic, while about 10% do not intend to return at all. The results indicate that in the “new normal”, transit use will remain below pre-pandemic levels for those who rode transit before the pandemic. Factors such as car access are significantly related to the extent to which people have returned to transit, although this may be reflecting a shift away from transit rather than causing the shift. Factors such as easy access to transit stops, service frequency, and proximity to home and job locations influence current transit use. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Covid-19 pandemic, Transit ridership, Public transit, Post-pandemic |
| Date: | 2023–08–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt6490r620 |
| By: | Jaume Magre-Pont (Universitat de Barcelona & IEB); Pierre Magontier (Universitat Pompeu Fabra & IEB); Albert Solé-Ollé (Universitat de Barcelona & IEB) |
| Abstract: | To what extent does the incumbent party’s identity shape public policies? We investigate this question by examining national and regional policies in Spain. First, we analyze the evolution of voter preferences and the platforms of the two mainstream parties (PSOE and PP) and of the newer challenger parties that emerged post-financial crisis (Ciudadanos, Podemos, and Vox). We focus on three key national-level issue dimensions: Economic, Social, and Centralization. As expected, the right-wing PP adopts a more conservative stance on all dimensions compared to the left-wing PSOE. However, the policy gap between these two parties remains relatively stable until the mid-2000s, with party platforms tracking the evolution of citizen preferences. After this period, platforms start to diverge, especially in the case of new parties, which display radical stances on these dimensions. We also provide descriptive evidence suggesting that these platform differences have translated into enacted policies. Second, to offer causal evidence on the effect of party identity on policy decisions, we examine partisan disparities in regional fiscal policies. Our findings reveal significant differences in tax policy following the granting of tax autonomy to the regions, somewhat moderated by tax competition and fiscal limits. |
| Keywords: | Political parties; Electoral competition; Fiscal policy |
| JEL: | D72 H70 R52 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ieb:wpaper:doc2024-08 |
| By: | Anish Sugathan; Arpit Shah; Deepak Malghan |
| Abstract: | This study quantifies the dynamic impacts of floods on industrial capital and labor in India using a novel dataset combining geocoded flood events with firm facility-level data from 2000 to 2021. Employing a stacked difference-in-differences approach with carefully matched controls, we uncover persistent negative effects of floods on firms’ assets and employment, with striking heterogeneity across sectors and regions. In the post-flood period, we estimate declines from mean values in total assets of 46.1% (16.68 billion INR ? 225 million USD), employment of 49.0% (8.20 thousand workers), and the wage bill of 74.5% (5.52 billion INR ? 74 million USD). The sectoral impacts are highly varied: the information technology and communication, manufacturing, and utilities sectors experience significant declines in assets, while the financial services sector exhibits growth. Mapping the spatial distribution of flood events and industrial facilities reveals pronounced regional heterogeneity in flood exposure and economic impacts. Adding nuance to the empirical investigation of the “creative destruction” hypothesis, we find limited evidence of systematic capital reallocation toward better-performing sectors, suggesting instead that floods generate sector-specific impacts with varying recovery patterns. These findings challenge assumptions of rapid post-disaster equilibration and have important implications for policymakers and firm managers in developing sector-specific strategies to mitigate the adverse impacts of floods in an increasingly climate-uncertain world. |
| Date: | 2024–12–03 |
| URL: | https://d.repec.org/n?u=RePEc:iim:iimawp:14718 |
| By: | Klumpenhouwer, Willem; Karner, Alex |
| Abstract: | Distributive concerns in transportation equity can be evaluated either in terms of inequality (e.g., how equal are distributions?) or sufficiency (e.g., how many and what kinds of people lack access to the transportation resources they need?). Sufficiency analyses offer more actionable insights that can be used to mitigate transportation disadvantage, but related analytical methods are not well developed. To advance this area of research and practice, this paper investigates three approaches to measuring sufficiency through the lens of public transport access to jobs: (i) Fraction of total regional destinations, (ii) Competitiveness with auto access, and (iii) population-weighted percentile measures. We use a class of decomposable Foster-Greer-Thorbecke poverty measures to understand the sensitivity of overall levels of disadvantage to the choice of disadvantage lines and other parameters, in the context of seven U.S. urban regions. We find that fractional and auto competitiveness measures produce similar results and are highly sensitive to the choice of disadvantage line, that population-weighted percentile measures may allow for better comparisons across demographic groups, and that by most reasonable definitions of transport poverty the vast majority of residents (80+%) in an area might be considered to be in transport disadvantage. |
| Date: | 2025–01–06 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:95qbv |
| By: | Amy Lutz (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244); Pamela R. Bennett (University of Maryland, Baltimore County); Rebecca Wong (Maxwell School, Syracuse University) |
| Abstract: | Affirmative action in higher education has become an active arena for policymaking and legal challenges in the United States. A question frequently raised about affirmative action is whether racial and ethnic minority students who benefit from affirmative action are successful in the academically demanding context of selective colleges. Using data from the Educational Longitudinal Study, the authors analyzed racial-ethnic differences in cumulative GPAs for White, Black, and Latino students who were high school seniors in 2004 and subsequently attended selective colleges and universities. Results show that Black and Latino students were more likely to graduate from selective colleges than White students who come from similar socioeconomic backgrounds with comparable academic resources and educational experiences. |
| Keywords: | Affirmative Action, Higher Education, Education Policy |
| Date: | 2023–06 |
| URL: | https://d.repec.org/n?u=RePEc:max:cprpbr:4 |
| By: | Christof Brandtner (EM - EMLyon Business School, Stanford University); Krystal Laryea (U of M - University of Memphis, UND - University of Notre Dame [Indiana]); Gowun Park (UH - University of Hawai'i [Honolulu]); Wei Luo (Peking University [Beijing]); Michael Meyer (Universität Wien = University of Vienna); David Suárez (University of Washington [Seattle]); Hokyu Hwang (UNSW - University of New South Wales [Sydney]); Walter W. Powell (Stanford University) |
| Abstract: | Organizational practices, such as interacting with and advocating for constituents or engaging in event hosting and collaboration, are critical to integration—creating connections across lines of difference. However, these practices are unevenly distributed across neighborhoods and shaped by neighborhood characteristics. Here, connecting organizational and neighborhood-level data, this study explores how neighborhood affluence (income) and heterogeneity (migrant population share) affect the integrative practices among civil society organizations. Using unique survey data from five global cities, we analyze the organizational practices of 863 civil society organizations in 536 neighborhoods. We find that social integration practices—connecting people to each other—are more prevalent in poorer neighborhoods. Conversely, systemic integration practices—connecting people and organizations to other organizations in the ecosystem—are more common in heterogeneous neighborhoods, especially when they are affluent. These findings shed light on the role of organizations in promoting social cohesion and economic development as well as disparities in integrative practices among neighborhoods. |
| Date: | 2024–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04862386 |
| By: | Clemente Pignatti; Alessandro Tondini |
| Abstract: | We investigate the impact of a reform in South Africa anticipating children’s entry into primary school on children’s school enrollment and mothers’ labour supply. We use Census data and exploit month-of-birth discontinuities and the before/after variation introduced by the reform. We report a net increase of 7pp. in school attendance at age 5. However, contrary to an established finding in the literature, we find no impact on mother’s employment and the type of jobs held. We reconcile our finding with those of previous studies by noting that South Africa is characterized by relatively high initial rates of school attendance and relatively low rates of maternal employment. In districts where these contextual factors are more similar to previous studies, we find that higher enrollment does lead to higher maternal employment. |
| Keywords: | Childcare, Maternal labor supply, South Africa |
| JEL: | I28 J13 J16 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:fbk:wpaper:2025-01 |
| By: | Ghizlen Ouasbaa (TecnoCampus University Center & IEB) |
| Abstract: | This paper examines the lasting impact of tourism specialization on per capita income in Spanish municipalities, aiming to understand the factors driving these effects. We employ two distinct approaches. The first one focuses on tourism development since the initial boom in the 1960s and relies on cross-sectional variation in tourism exposure related to amenities like beaches and weather for identification. The second method looks at a later wave of tourism development in the 1990s, using a shiftshare analysis that combines the share of residents from tourist-source countries in each municipality with the growth rate of tourists from these countries throughout Spain. The findings indicate that municipalities with the highest growth in tourism specialization now exhibit lower per capita income. A municipality experiencing an increase in tourism per capita over time equal to the sample median has a per capita income between 21% and 22% lower as of 2019, depending on the approach used. This decline in income is associated with an increase in temporary job contracts, with a decrease in industrial employment, and with lower levels of educational attainment. |
| Keywords: | Tourism specialization, local economic growth, long-term effects, local labor markets. |
| JEL: | R11 R23 Z32 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ieb:wpaper:doc2024-14 |
| By: | Zhou, Peng (Cardiff Business School); Gai, Yue (Swansea University); Wang, Chaowei |
| Abstract: | We apply the Systematic Literature Review (SLR) approach to surveying empirical studies on urban land value. We show that research attention is directed by market size and data availability towards developed economies and residential land. Two distinct patterns of literature evolution emerge, which can be explained by methodological homogeneity adopted in the literature. Following these observations, we compare different types of methods and compile an extensive catalog of databases for land value research. Drawing from 644 factors in the empirical literature, we conduct a thematic analysis to establish a hierarchical understanding of how urban land value is determined. |
| Keywords: | Land Value; Systematic Literature Review; Thematic Analysis |
| JEL: | O18 R14 R31 R52 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdf:wpaper:2025/3 |
| By: | Allen IV, James |
| Abstract: | This report summarizes ongoing analysis of overlap between school and farming calendars in Madagascar in collaboration with the World Bank office in Madagascar. Following IFPRI Discussion Paper 2235 (Allen 2024), I develop a community-based measure of overlap as the number of days that the school calendar overlaps with crop calendars that weights the relevance of each crop by the community crop share and then aggregates across crops. A policy simulation of alternative school calendars identifies early January as the best time to start Madagascar's national school calendar (assuming the same structure as the actual school calendar) to avoid overlap with peak farming periods. Further, it finds additional gains can be made to reducing overlap by decentralizing school calendars to the local level and adopting each community's overlap-minimizing calendar. Next steps in 2025 include an empirical analysis that estimates the correlation between overlap and key education outcomes that simulates the potential gains of a locally decentralized overlap-minimizing school calendar. |
| Keywords: | crop calendar; farming systems; policies; schools; Madagascar; Africa; Eastern Africa; Southern Africa |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:othbrf:163428 |
| By: | Marbach, Moritz; Vallizadeh, Ehsan; Harder, Niklas; Hangartner, Dominik; Hainmueller, Jens |
| Abstract: | Given the global displacement crisis, the integration of refugees has emerged as a critical policy issue for many host countries. A key challenge involves supporting refugees in learning the language of their host country. While several European nations have instituted publicly funded language training for asylum seekers and refugees soon after their arrival, evidence on the efficacy of these early language programmes in promoting economic integration remains limited. This study examines the impact of a pioneering, large-scale ad hoc programme introduced by German policymakers, which provided basic language training to over 230, 000 refugees arriving in 2015–2016. Utilizing register data on the population of asylum seekers and exploiting a cut-off date in programme eligibility, we assess the programme’s effectiveness using a regression discontinuity design. Our findings reveal no discernible effect on refugee employment over the subsequent 2 years. To explore whether language programmes are generally ineffective during refugee crises, we contrast these results with the impacts of a more comprehensive, preexisting, yet smaller-scale programme. Using a variety of difference-in-differences estimators, we find that this programme considerably increased refugee employment. These contrasting findings offer important insights for policymakers on designing effective language training programmes for refugees. |
| Keywords: | Immigrant integration; Refugee language training programme; Regression discontinuity design |
| JEL: | C1 |
| Date: | 2025–01–08 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126883 |
| By: | Pierre Magontier (Universitat Pompeu Fabra & IEB); Albert Solé-Ollé (Universitat de Barcelona & IEB); Elisabet Viladecans-Marsal (Universitat de Barcelona & IEB & CEPR) |
| Abstract: | Coastal development has advantages, such as job creation, and drawbacks, such as the loss of environmental amenities, for both residents and nonresidents. Local overnments may prioritize their constituents' interests, resulting in suboptimal coastal development. We investigate how political alignment among neighboring mayors facilitates intergovernmental cooperation in the development of coastal areas. We leverage causal effects by applying a close-elections Regression Discontinuity Design to the universe of buildings in Spain. Municipalities with partyaligned mayors develop 46% less land than politically isolated ones, and politically homogeneous coastal areas develop less than fragmented ones. The effect is more salient for land closest to shore or previously occupied by forests, in municipalities with a large share of protected land, and for relevant environmental markers, such as air and bathing water pollution. These results underscore the importance of cooperative political endeavors in managing development spillovers, with environmental considerations assuming a central role. |
| Keywords: | Local government; Land use policy; Political parties |
| JEL: | D72 H70 R52 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ieb:wpaper:doc2024-10 |
| By: | Harold, Brian; Rodier, Caroline; Perrin, Jack |
| Abstract: | While the United States has long supported basic needs of residents through social welfare programs, policies supporting affordable transportation for lower income individuals have been much more limited. Federal support for transportation includes subsidies to transit agencies and requirements to offer discounted fares to certain groups such as seniors and riders with disabilities, but income-qualified discounts are not required. This study explores opportunities for improving access to transportation affordable programs by gathering insights from existing income qualified transportation benefits. Researchers compare examples of these programs to design features of existing non-transportation benefits to characterize opportunities for increased coordination and standardization. Finally, as the U.S. has seen an increase in recent years of Universal Basic Mobility (UBM) pilots that provide flexible transportation funds, the study incorporates insights from UBM evaluations to understand how UBM design features may be useful to agencies who are pursuing transportation affordable discounts and subsidies. The results suggest that there is significant potential for income-qualified transportation program enrollment both for agencies that do not currently offer these benefits and for agencies that already offer them, and that inter-organizational coordination among stakeholders may be essential in implementing successful transportation affordable discounts or subsidies. Additionally, the structure of income-qualified transportation benefits may vary depending on agency resources. Finally, with transportation equity as growing priority for California and its transit agencies, program administrators may opt for programs with easy access and enrollment rather than those that create barriers to participation through strenuous application and verification procedures. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Transit, fares, transportation equity, low-income programs, accessibility, affordability, discounts, Universal Basic Mobility, subsidies |
| Date: | 2025–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt1xk2830q |
| By: | Fahmida Khatun; Syed Yusuf Saadat; Afrin Mahbub; Marium Binte Islam |
| Abstract: | The CPD’s Green Cities Initiative was set up to better understand the drivers of air and plastic pollution in Bangladesh’s cities and develop workable policy solutions. Since its establishment, the Green Cities Initiative has brought together scientific evidence and economic analyses, producing a series of reports, evidence papers, briefing notes, policy briefs, and events that have improved understanding of the problem among policymakers, journalists and members of the academic community. In this policy toolkit, CPD’s Green Cities Initiative has attempted to analyse public attitudes and behaviours associated with air and plastic pollution, complementing the existing work focused on structural and systemic factors. |
| Keywords: | Plastic Pollution, Air Pollution, Green Cities Initiative |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:pdb:pbrief:47 |
| By: | Ying Shi (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244); Maria Zhu (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244) |
| Abstract: | Asian Americans are often perceived as a “model minority” in classrooms. While this stereotype seems positive, it may raise expectations for Asian students and bolster negative stereotypes for students in other minority groups due to teacher bias. This brief summarizes findings from a study that used data from the North Carolina Education Research Data Center (NCERDC) from 2007 to 2013 to identify the presence of positive bias in teachers’ assessments towards Asian American students in grades 3-8 and its effects on other minority groups. The authors find that teachers rate Asian students’ academic skills more favorably than similar White students in the same classroom with the same performance and behavior. In addition, the ‘‘model minority” stereotype negatively impacts other minority groups. Teachers respond to the presence of any Asian student in the classroom by widening Black-White and Hispanic-White assessment gaps. The authors conclude that teacher assessment patterns that set Asian students apart from other groups of minority students harm all students. |
| Keywords: | Teacher Evaluation, Racial Bias, Asian Americans |
| Date: | 2023–07 |
| URL: | https://d.repec.org/n?u=RePEc:max:cprpbr:5 |
| By: | Doran, Elizabeth M.B.; Reichard, Will; Boothe, Morgan; Donnell, Grace; Fan, Huiying; Rowangould, Gregory; Guensler, Randall |
| Abstract: | Extreme heat is the leading cause of weather-related mortality in the United States, and extreme heat events are projected to continue to increase in geographic extent, frequency, and severity in the United States as climate change progresses. Transportation infrastructure is a significant driver of the urban heat island (UHI) effect and exacerbating extreme heat events. Efforts to mitigate UHI impacts often focus on reflecting incoming solar radiation (i.e., increasing surface albedo) and providing shade (e.g., planting street trees). However, advanced and novel materials (ANM) for pavements that reduce heat storage, and green stormwater infrastructure (GSI) that promotes evaporative cooling, can provide additional heat mitigation pathways. Sidewalks facilitate non-motorized transportation, and are relatively low-risk, low-cost, and have simple structural requirements compared to other transportation infrastructure. Hence, sidewalks and adjacent planting strips can offer a logical test bed for new materials and designs. With the thermal comfort, safety, and efficiency of users in mind, environmentally responsible designs can also minimize energy embedded in construction materials and help maintain natural ecosystem processes. Although ANMs hold significant promise for heat mitigation, they have not yet achieved widespread implementation. This project systematically reviewed the growing literature related to theapplication of ANMs and GSI to reduce UHI effects and implemented a survey of urban planners and public works engineers to assess the current and planned use of these strategies and identify barriers to implementation. This report summarizes the emergent themes from the systematic literature review, survey results and policy recommendations for an anticipated reading audience of urban policy makers, planners, and practitioners. View the NCST Project Webpage |
| Keywords: | Engineering, Physical Sciences and Mathematics, Urban heat island, green stormwater infrastructure, advanced pavements, alternative pavements, cool pavements, novel materials, decision-making, transportation planning, thermal comfort |
| Date: | 2025–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt9x00066h |
| By: | Rentschler, Johannes |
| Abstract: | Intermodal transportation refers to the movement of goods in one and the same loading unit, which uses successively two or more modes—such as rail, road, and maritime—without handling the goods themselves in changing modes. This approach capitalizes on the strengths of each transportation mode, optimizing efficiency, cost-effectiveness, and environmental sustainability. This dissertation investigates continental intermodal transportation in Europe. It thereby focuses on the configuration of intermodal transportation networks and the transformative impact of digitalization. The European intermodal transportation market, characterized by diverse actors, varying laws, and non-standardized processes, presents distinctive challenges. These differences necessitate tailored approaches to address unique circumstances effectively. Given this complexity, multiple research methodologies on different planning levels are employed to systematically explore the structural configuration of transportation networks and the impact of digitalization. Qualitative methods, such as case studies and expert interviews, complement quantitative models by providing contextual and experiential insights and practical knowledge from industry professionals and stakeholders. Case studies are particularly suitable for analyzing the European intermodal transportation market. They allow for in-depth exploration of specific contexts, capturing nuances that broader methods might miss, providing a nuanced understanding of intermodal transportation systems, and helping to develop actionable solutions. The main body of this dissertation is based on five research papers. The first two papers investigate the structural configuration of intermodal transportation networks and its impact on overall system performance. By integrating strategic hub location and tactical service network design models, the research provides deeper insights into network structure, leading to optimized configurations that enhance efficiency and reduce costs. A case study involving a German intermodal operator demonstrates that this integration leads to more realistic and efficient network designs, considering economies of scale and density. In the third paper, the feasibility and benefits of continental intermodal transportation as a possible solution for connecting Asia and Europe are studied. The qualitative analysis of the Trans-Caspian Corridor through interviews with logistics companies and political authorities revealed the intricate geopolitical and strategic challenges influencing the corridor's development.The fourth paper focuses on ETA forecasts in the pre-and post-haulage of intermodal transportation. Digitalization and real-time data significantly improve operational processes in intermodal transportation by enhancing visibility and enabling dynamic adjustments to routing and scheduling. A simulation study shows that ETA forecasts lead to an average cost reduction of 7%. The fifth paper investigates how digitalization drives the evolution of intermodal transportation towards synchromodal transportation, where different transportation modes are seamlessly integrated, providing flexible and adaptive real-time solutions. The integration of digital technologies such as IoT, blockchain, and AI further supports this transition, offering advanced tools for real-time monitoring, data analytics, and decision-making. The findings of this dissertation contribute to both academic knowledge and practical applications, providing valuable insights for policymakers, industry stakeholders, and researchers in the field of intermodal transportation. |
| Date: | 2025–01–20 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:152591 |
| By: | Ibadoghlu, Gubad |
| Abstract: | Since March 2020, Azerbaijan has maintained the closure of its land borders with Russia, Iran, and Georgia. While initially framed as a response to the global pandemic, this decision carries profound and lasting implications. Although the government may perceive political benefits, the broader public continues to bear the economic costs. The direct and indirect consequences of these closures are substantial and warrant thorough examination. This article aims to explore the complex social and economic repercussions—both immediate and long-term—resulting from the prolonged closure of Azerbaijan’s land and sea borders. |
| Keywords: | Azerbaijan-Georgia border, Azerbaijan-Russia border, Azerbaijan-Iran border, regional economy, cross-border trade, cross-border regional economy, transportation, tourism, unemployment, immigration, inflation |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:309065 |
| By: | Guo, F.; Choi, S.; Goyal, S.; Moisan, F. |
| Abstract: | Social networks shape individual behavior, and public policy increasingly leverages networks to enhance effectiveness. It is therefore important to understand how individuals behave in network interactions. This paper uses lab experiments to examine behavior in games on networks involving strategic substitutes and strategic complements. Theory suggests that an individual’s choice is proportional to their (Bonacich) centrality. Our experiments, however, find that while choices increase with centrality, the relationship is weaker than predicted. The total action levels individuals choose and the total payoff they achieve are higher than the Nash outcomes in some cases while lower in others. We find that these results can be coherently explained by individuals’ behavioral attenuation: they have incomplete adjustments to the strategic differences across network positions, exhibiting a bias toward generally high-payoff choices in complex networks—even when these choices are not optimal for their specific network positions. |
| Keywords: | Centrality, Behavioural Biases, Networks |
| JEL: | C92 D83 D85 Z13 |
| Date: | 2024–12–31 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camjip:2433 |
| By: | Gilles Paché (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon) |
| Abstract: | Despite its significant importance, theme park logistics remains underexplored in management research. There are noteworthy similarities with city logistics, particularly in areas such as managing visitor flows, product supply, waste management, and the application of smart technologies. Product supply is informed by established pooling practices, which involve centralized deliveries to hubs and optimized inventory management. Waste management also draws from sustainable urban strategies, including sorting and recycling. Furthermore, smart technologies facilitate real-time monitoring of visitor flows, allowing for fine-tuning logistical operations, although this raises ethical questions like those encountered in smart cities. These innovative practices, which have not been adequately studied, aim to enhance the efficiency of theme park logistics while ensuring a high-quality customer experience. |
| Keywords: | city logistics, customer experience, flow optimization, smart cities, sustainability, theme (amusement) park, waste management |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04870783 |
| By: | Ceballos, Francisco; Hernandez, Manuel A.; Hernandez, Alvaro Espinoza |
| Abstract: | The e-MPI and the i-MPI are tools to objectively estimate the probability that individuals from a given household will, respectively, migrate abroad or migrate domestically in the near future. We use new longitudinal data to test their effectiveness fully out of sample. We find good predictive power of each of these indices in terms of the respective type of migration they attempt to anticipate. Moreover, they perform well against alternative measures, work reasonably well for both rural and urban areas and in departments not included in the original calibration data, and appear to capture distinct aspects around households’ decisions to migrate domestically and abroad. Overall, the MPI seems to be an important addition to policymakers’ toolkit. |
| Keywords: | migration; rural areas; urban areas; Honduras; Americas; Central America |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:ifprwp:168708 |
| By: | Zachary Bleemer; Aashish Mehta |
| Abstract: | Underrepresented minority (URM) college students have been steadily earning degrees in relatively less-lucrative fields of study since the mid-1990s. A decomposition reveals that this widening gap is principally explained by rising stratification at public research universities, many of which increasingly enforce GPA restriction policies that prohibit students with poor introductory grades from declaring popular majors. We investigate these GPA restrictions by constructing a novel 50-year dataset covering four public research universities’ student transcripts and employing a staggered difference-in-difference design around the implementation of 29 restrictions. Restricted majors’ average URM enrollment share falls by 20 percent, which matches observational patterns and can be explained by URM students’ poorer average precollege academic preparation. Using first-term course enrollments to identify students who intend to earn restricted majors, we find that major restrictions disproportionately lead URM students from their intended major toward less-lucrative fields, driving within-institution ethnic stratification and likely exacerbating labor market disparities. |
| Keywords: | higher education, racial wage gap, college majors |
| JEL: | H75 I24 J31 Z13 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11601 |
| By: | Scanlan, Oliver; Mankhin, Anitta; Ritchil, Parag |
| Abstract: | In the mid-1980s, the state summarily cancelled the property rights of the Indigenous Peoples of Madhupur, Bangladesh, that hitherto were thoroughly embedded in the national legal-administrative architecture. The removal of capital from formal circuits of exchange is irrational in economic terms. This is a case where neoliberalism has been constrained by the state’s defense of a racialized hierarchy embedded in majoritarian understandings of the nation. Further exploration of how racial capitalism works by excluding certain ethnic groups from capital is likely to shed new light on processes of dispossession, particularly in regions where ethnic complexity, biological diversity and “old land wars” intersect. |
| Date: | 2025–01–06 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:7s68d |
| By: | Guanyi Yang; Srinivasan Murali |
| Abstract: | This paper examines the impact of racial discrimination in hiring on employment, wage, and wealth disparities between black and white workers. Using a labor search-and-matching model with racially prejudiced and non-prejudiced firms, we show that labor market frictions sustain discriminatory practices as an equilibrium outcome. These practices account for 44% to 52% of the average wage gap and 16% of the median wealth gap. Discriminatory hiring also amplifies unemployment and wage volatility for black workers, increasing their labor market risks over business cycles. Eliminating prejudiced firms reduces these disparities and improves black workers' welfare, though it slightly decreases overall economic welfare. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.00615 |
| By: | Rodier, Caroline |
| Abstract: | This report presents the results of the Ecosystem of Shared Mobility Services in the San Joaquin Valley (Ecosystem) pilot project. The project is part of California Climate Investments (CCI), a statewide initiative that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment — particularly in disadvantaged communities. As the grantee for this pilot project, the San Joaquin Valley Air Pollution Control District implemented the pilot program by partnering and/or subcontracting with several local entities including, but are limited to: Sigala Inc.; UC Davis, Institute of Transportation Studies; Shared-Use Mobility Center (SUMC); Self-Help Enterprises, and MOVE. Funding for the Ecosystem pilot project provided by a grant from the California Air Resources Board (CARB) through the Car Sharing and Mobility Option Pilot Project solicitation. Research for the project was also supported by funding through the University of California via the Public Transportation Account and the Road Repair and Accountability Act of 2017 (Senate Bill 1) and the National Center for Sustainable Transportation, supported by the U.S. Department of Transportation (USDOT) and the California Department of Transportation (Caltrans) through the University Transportation Centers program. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Demand responsive transportation, Mode choice, Ridesharing, Rural areas, Shared mobility, Transportation disadvantaged persons, Travel behavior, Vehicle sharing |
| Date: | 2023–03–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt6x38h5ck |
| By: | Khondaker Golam Moazzem; ASM Shamim Alam Shibly; Sadab Rahman Chowdhury |
| Abstract: | The Ministry of Expatriates’ Welfare and Overseas Employment (MoEWOE) of Bangladesh plays an important role in managing labour migration and supporting migrant workers. However, institutional inefficiencies, budgetary constraints, and outdated operational practices significantly challenge its effectiveness. Despite an increase in the national budget allocation to the MoEWOE for FY2025, its share remains a mere 0.15 per cent of the total budget, which severely limits its capacity to address critical issues. |
| Keywords: | Migrant Workers, Overseas Employment, National Budget, Labour Migration, Technical Training, MoEWOE, Bangladesh |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:pdb:report:61 |
| By: | Justin C. Contat (Federal Housing Finance Agency); William M. Doerner (Federal Housing Finance Agency); Michael J. Seiler (Federal Housing Finance Agency); Scott Weiner (Federal Housing Finance Agency) |
| Abstract: | Borrower perceptions and beliefs about the future influence mortgage forbearance decisions. Using a proprietary dataset combining administrative mortgage records with borrower surveys, we find subjective expectations regarding forbearance uncertainty and financial knowledge help predict forbearance participation under the CARES Act alongside traditional underwriting variables. While precautionary motives seemingly drive decisions, a closer look reveals the importance of realized work and personal changes. Additionally, actual need and uncertainty about resolution options cause greater difficulty resuming payments when exiting forbearance. These findings highlight the benefits of using contemporaneous, subjective information during crises and emphasize the need for behavioral insights in policy design. |
| Keywords: | behavioral, consumer finance, forbearance, mortgage, policy |
| JEL: | C35 D10 G01 G18 G28 H12 R20 R30 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:hfa:wpaper:24-11 |
| By: | Pérez Velilla, Alejandro (University of California, Merced); Beheim, Bret; Smaldino, Paul E. |
| Abstract: | We use cultural evolutionary models to examine how individual experiences and culturally-inherited information jointly shape risk attitudes under environmental uncertainty. We find that learning processes not only generate plausible variation in risk attitudes, but also that conservative learning strategies---emphasizing the preservation of generational knowledge---excel in high-risk environments, promoting stable wealth accumulation and long-term survival but limiting asset growth as conditions improve. In contrast, exploratory learning strategies---leveraging risk-free juvenile exploration and peer influence---foster risk-tolerant attitudes that thrive in affluent, low-risk settings where wealth buffers and social safety nets reduce the costs of miscalculations. Introducing economic stratification to the model reveals how wealth disparities and inter-class interactions reinforce these patterns, exacerbating differences in learning strategies and risk-taking behaviors, and perpetuating socioeconomic inequalities through the cultural inertia of excessive risk aversion. By uniting developmental, social, and evolutionary perspectives, our framework provides a novel lens on the cultural evolution of risk attitudes and their broader societal implications. |
| Date: | 2025–01–24 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:9yjes |
| By: | Katie Bollman; Benjamin Hansen; Edward A. Rubin; Garrett O. Stanford |
| Abstract: | Using Measure 114’s narrow passage in Oregon as a natural experiment, we study how new gun regulations affect firearm demand. Background checks, a proxy for demand, rose 13.9% in anticipation of the referendum and surged 157% immediately following the election. After judicial intervention halted the law’s enactment, demand returned near pre-election levels. Temporal displacement/harvesting does not explain the demand spike: after eighteen months, we still observe a substantial cumulative increase of 63, 000 excess firearm-related background checks. Administrative data reveal significant county-level heterogeneity. This evidence underscores the paradoxical effect of gun-control policies, offering a cautionary lesson to policymakers. |
| JEL: | H8 I18 I28 K23 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33360 |
| By: | Velez, Andres (Dept. of Business and Management Science, Norwegian School of Economics) |
| Abstract: | This paper addresses the challenge of congestion in time-expanded networks, focusing on a case study related to maritime evacuations. The problem is made complex by an endogenous relationship between inputs and outputs, where the assignment of flow to an edge leads to increased congestion, which reflects in later arrivals and changes on the overall network topology. This dynamic interaction between flow and congestion is central to the problem, as it results in a feedback loop that complicates the identification of optimal evacuation paths. The study presents an iterative algorithm inspired by the network simplex method, designed to handle the evolving nature of congestion while minimizing evacuation time. |
| Keywords: | Onboard safety; Guidance system; Wireless communication; Lifeboat Assignment; Network flows |
| JEL: | C44 |
| Date: | 2025–01–24 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:nhhfms:2025_002 |
| By: | Bradley J. Ruffle |
| Abstract: | Almost all Canadian and many American universities and colleges participate in cooperative education programs whereby each year co-op students alternate between dedicated for-credit work terms and school terms. Many of these programs use a minimum sums algorithm (MS) to match students to jobs. In this first study of the algorithm, we show that it and all its variations may produce unstable outcomes. We compare experimentally the properties of this algorithm and seemingly improved variations with the deferred acceptance algorithm (DA). While the improved versions of MS sometimes lead to more truthful reporting of preferences and increase the likelihood of a stable assignment, they all fare worse than DA. Our data reveal that the superior outcomes associated with DA are the result of both the algorithm itself and the behavioral responses it elicits. The continued use of MS has large adverse consequences for human capital accumulation and lifetime earnings. |
| Keywords: | experimental economics; two-sided matching; deferred acceptance; mechanism design; co-operative education |
| JEL: | C78 C90 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:mcm:deptwp:2025-02 |
| By: | Patrick Bayer; Kerwin Kofi Charles; Ellora Derenoncourt |
| Abstract: | In this chapter, we introduce a new framework for studying the evolution of racial inequality in the labor market. The framework encompasses two broad forces – distributional and positional – that affect labor market gaps by racial and ethnic identity over time. We provide long-run results on the evolution of Black-White earnings gaps, including new results for Black and White women, and we review the evidence on historical factors affecting racial gaps. We then provide new results on racial gaps among other groups in the U.S. and discuss the evidence on racial gaps outside the U.S. We then discuss the role of prejudice-based discrimination in driving racial gaps, particularly in the post-civil-rights era, a period when such discrimination has been thought to play a declining role in racial inequality. We describe forces that can amplify existing discrimination, such as monopsony and workers’ perceptions of prejudice in the economy, and we discuss recent literature directly measuring discrimination through expanded audit studies and quasi-experimental variation. We conclude with a discussion of existing and new frontiers on race in the labor market, including stratification, reformulations of prejudice, and understanding the way race has shaped purportedly race-neutral institutions throughout the economy. |
| JEL: | J15 J31 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33372 |
| By: | Carcaba, Ana; Gonzalez, Eduardo; Arrondo, Ruben |
| Abstract: | Determining what makes a person happy is an extremely complicated task. The objective of this article is to identify the effects of the composition and orientation of governance bodies in municipalities on individual subjective well-being. We connect the data from a large Spanish welfare survey to municipal data covering the aforementioned dimensions of political configuration. Unlike previous country-level studies, we find no significant effects of political orientation when applied to municipal data. In contrast, political alternation emerges as a relevant driver of subjective well-being, especially when corrupt local governments are replaced. Furthermore, the fragmentation in the Spanish political landscape after the 2015 elections improved the level of political competition, which, in turn, exerted a positive effect on subjective well-being. |
| Keywords: | Good governance; subjective well-being; political competition; local government; Spain |
| JEL: | H75 I31 I38 M41 |
| Date: | 2023–12–04 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123248 |
| By: | Papastaikoudis, I.; Prodromidis, P.; Watson, J.; Lestas, I. |
| Abstract: | We propose a new approach in public economics in a decentralized finance setting by using distributed optimization techniques for the planning of inter-regional and intra-regional public works/services for multiple regions each one with its own budget, natural and population characteristics. The goal of this study is to provide a toolkit for the planning of vast public works/services in an optimal way across the regions in order to improve the welfare of their respective populations. The proposed optimization approach can assist the government regarding its policy making for the public infrastructure, e.g., in the prioritization of the various public units across regions and also in the optimal geographical allocation of them. We will interpret the problem as a utility maximization problem and we will calculate the Marshallian demand for the public infrastructure. |
| Keywords: | Public Economics, Public Finance, Network Optimization |
| JEL: | C61 C62 D11 D30 D85 H40 H70 |
| Date: | 2025–01–22 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camjip:2502 |
| By: | AMOUZAY, Hassan; El Ghini, Ahmed |
| Abstract: | This paper explores the limitations of traditional econometric models, such as the Ricardian and profit approaches, in accurately quantifying the impacts of climate change on agriculture. While these models offer valuable insights, they often neglect spatial dependencies, heterogeneity, and spillover effects. We argue that spatial econometrics provides a more comprehensive and robust approach to analyzing climate change impacts. By explicitly incorporating spatial relationships between agricultural units, spatial econometric models capture the influence of factors such as proximity to markets, resource sharing, information diffusion, and spatial correlation of climatic variables. We review pioneering studies employing spatial econometric models, including SAR, SEM, SLX, SARAR and SDM, which reveal significant discrepancies between spatial and non-spatial estimations. These studies demonstrate that neglecting spatial dependence can lead to biased estimations and inaccurate predictions of climate change impacts. Moreover, the incorporation of spatial effects often results in smaller marginal effects of climate variables, suggesting that traditional non-spatial models may overestimate negative consequences. This paper contributes to the ongoing research on climate change impacts on agriculture by highlighting the significance of spatial econometrics and emphasizing its potential to inform robust and effective adaptation strategies. |
| Keywords: | Climate change, econometrics approaches, agriculture, adaptation, spatial econometrics. |
| JEL: | Q15 Q51 Q54 R12 |
| Date: | 2024–05–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123222 |
| By: | YOO Sunbin; KUMAGAI Junya; MATSUSHIMA Hiroshi; Madhu KHANNA; MANAGI Shunsuke |
| Abstract: | Transportation is a major contributor to global carbon emissions due to its reliance on fossil fuels, with railways often cited as a promising solution for emission reduction. However, empirical evidence of railways’ effectiveness in reducing carbon emissions has been limited. Our study reveals that the expansion of Japan’s railway net- work over the past 30 years has led to a significant reduction in carbon emissions, ranging from 97.44 to 110.73 million metric tons. This translates to an annual reduction of up to 1.697% of Japan’s transportation sector emissions in 2019, a finding that demonstrates the broader environmental implications of systemic railway development. In contrast, station openings have led to a slight overall increase in emissions, contributing an additional 2.5 million metric tons over the same period. These findings emphasize the greater impact of comprehensive network expansions in reducing carbon emissions compared to localized station openings and underscore the importance of strategic railway expansion as a key measure for mitigating carbon emissions and advancing sustainable urban development. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25006 |
| By: | Hambur Wang |
| Abstract: | This study employs a Bayesian Probit model to empirically analyze peer effects and herd behavior among consumers during the "Double 11" shopping festival, using data collected through a questionnaire survey. The results demonstrate that peer effects significantly influence consumer decision-making, with the probability of participation in the shopping event increasing notably when roommates are involved. Additionally, factors such as gender, online shopping experience, and fashion consciousness significantly impact consumers' herd behavior. This research not only enhances the understanding of online shopping behavior among college students but also provides empirical evidence for e-commerce platforms to formulate targeted marketing strategies. Finally, the study discusses the fragility of online consumption activities, the need for adjustments in corporate marketing strategies, and the importance of promoting a healthy online culture. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.00233 |
| By: | Zhou, Yang-Yang (University of British Columbia); , Rojas Daniel; Peters, Margaret E.; Kappos, Cybele |
| Abstract: | How do migrants perceive host citizens’ stereotypes about them, and can these metaperceptions change behaviors? We theorize that migrants are cognizant of hosts' stereotypes against them, which drive them to make choices that seem irrational based on economic cost-benefit calculations but are rational to restore status and dignity. To test our argument, we conducted behavioral lab games in Colombia, with 600 citizens and Venezuelan migrants. By randomizing partners and varying the information on partners' nationalities, we identify bias for and against outgroups. We find across games that Venezuelans give more to Colombians when both players' nationalities are known, compared to the baseline of no information and when playing with other Venezuelans. These findings suggest that migrants may act against their own financial self-interest to counteract prevalent stereotypes, such as being freeloaders on state welfare. We also find qualitative evidence that migrants desire to regain dignity by countering hosts' negative stereotypes. |
| Date: | 2025–01–09 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:2gvy8 |
| By: | Willem De Cort; Kristof De Witte |
| Abstract: | Tutoring programs are highly effective in improving students’ outcomes in higher education. However, little is known about students’ demand for tutoring or the optimal design of tutoring programs. Additionally, while privately provided tutoring can threaten social mobility, little is known about students’ consumption of private tutoring. Using a discrete choice experiment, this paper estimates the preferences, perceptions and consumption of tutoring for 1, 200 Flemish first-year higher education students. We find that students’ willingness-to-pay for tutoring is high, as they perceive it to be highly effective. However, they perceive the added value of having an experienced lecturer and smaller class sizes in these tutoring programs as low. Our simulations suggest that tutoring could significantly improve private and social welfare, but that the optimal size of tutoring groups is larger than commonly considered. Despite its potential, only 8% of students purchase privately provided tutoring. Using an information experiment, we show that biased perceptions of the returns to education cannot explain why students underinvest in tutoring. We argue that supply-side restrictions and behavioral biases such as status-quo bias and social image concerns can explain this low uptake of private tutoring. Finally, the demand for tutoring is highest among students with low socioeconomic status, but they are less able to purchase tutoring on the private market due to its high prices. These findings suggest that public investments in tutoring could increase social welfare and social mobility cost-effectively, while lowering barriers to students seeking academic support. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ete:leerwp:757473 |
| By: | Mayowa Alonge (PhD Program - ESSEC Business School) |
| Abstract: | This paper explores the pivotal role of multicultural children's books in fostering empathy and understanding across diverse cultures. In an increasingly globalized world, early exposure to diverse narratives allows children to engage with stories that reflect a range of cultural perspectives, helping to break down stereotypes and prejudices. By reading about characters from various backgrounds, children develop emotional intelligence and a deeper appreciation for the experiences of others. These books not only promote inclusivity but also offer a platform for marginalized voices, allowing children to see both similarities and differences in human experience. Through themes of diversity, acceptance, and shared humanity, multicultural literature plays a crucial role in shaping compassionate and open-minded individuals. The paper examines the benefits of multicultural books in enhancing empathy, discusses their educational value, and emphasizes the importance of integrating such literature into early childhood education. Ultimately, multicultural children's books serve as powerful tools in bridging cultural divides and nurturing a more harmonious, understanding society. |
| Date: | 2024–12–23 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04854901 |
| By: | Eric BOND; HOANG Trang; MA Yan; MAKIOKA Ryo |
| Abstract: | The paper studies the effect of R&D investments by parent multinational corporations (MNC) and their affiliates on the decisions of those affiliates to purchase intermediate inputs across different locations. We first develop a theoretical model of R&D and sourcing decisions to provide potential mechanisms and to guide our empirical analysis. Our fixed-effects regression results imply that, first, higher affiliate R&D expenditures are associated with a higher share of the affiliate’s purchases from local firms. Second, higher R&D expenditures by affiliates in other countries (i.e., those under the same parent firm but located in a different foreign country) are associated with a higher share of affiliate purchases from those countries. Third, we find that the affiliate’s R&D expenditures are negatively correlated with the purchase share from the parent home country and from the parent firm. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25007 |
| By: | Eduardo A. Haddad; Karim El Aynaoui; Abdelaaziz Ait Ali; Mahmoud Arbouch; Hamza Saoudi |
| Abstract: | - The earthquake’s overall impact on growth is estimated to be around -0.24% of GDP in 2023. - Due to the spatial concentration of the earthquake, Al-Haouz province and the Marrakesh region experienced Gross Regional Product (GRP) losses of -10.2% and -1.3%, respectively. - The 120 billion Moroccan dirhams (MAD) recovery program will have only mild positive impacts on overall macroeconomic growth from 2023 to 2028 but will significantly benefit the High Atlas region due to the reallocation of resources from non-affected to affected areas. - The overall macroeconomic impact is significantly influenced by the decision regarding the financing package, whether through new funds (debt) or investment reallocation. - However, this decision results in minor differences in the substantial positive impacts on the High Atlas region. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbecon:pb_33_24_0 |
| By: | HIGASHIDA Keisaku; OKOSHI Hirofumi |
| Abstract: | Parallel to governments’ fiscal policy competition to attract a foreign firm, countries’ attention to environmental damages grows. This paper analyzes fiscal competition between two asymmetric-sized countries under production-based pollution. An indigenous local firm exists in a large country, and two countries design a lump-sum fiscal policy for a multinational enterprise (MNE) outside the region. We find that fiscal competition changes the equilibrium location of an MNE from the large country to the small country when interregional trade costs are sufficiently small. Moreover, we show that whether a change in the MNE’s location due to fiscal competition leads to eco-friendly location depends on how superior clean technology the MNE owns. Besides, we find that fiscal competition can improve welfare in competing countries simultaneously: the small country successfully attracts the MNE with a tax because the counteroffer by the large government has a heavier tax whereas a large country benefits from losing the MNE through less environmental damages. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:24086 |