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on Urban and Real Estate Economics |
| By: | Michael Gilraine; James Graham; Angela Zheng |
| Abstract: | While rising house prices are known to benefit existing homeowners, we document a new channel through which house price shocks have intergenerational wealth effects. Using panel data from school zones within a large U.S. school district, we find that higher local house prices lead to improvements in local school quality, thereby increasing children's human capital and future incomes. We quantify this housing wealth channel using an overlapping generations model with neighborhood choice, spatial equilibrium, and endogenous school quality. We find that housing market shocks generate large intergenerational wealth effects that account for around one-third of total housing wealth effects. |
| Keywords: | Intergenerational mobility; Intergenerational wealth effects; school quality; Neighborhood choice; House prices |
| JEL: | R23 E24 J62 I24 E21 R21 |
| Date: | 2024–10–11 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedmoi:98965 |
| By: | Zhenyu Su; Paloma Taltavull de La Paz |
| Abstract: | This research aims to conduct a spatial analysis of Chinese city-level housing prices in response to macroeconomic fluctuations. By employing advanced spatial analysis techniques, we will examine how macroeconomic indicators, such as GDP growth, inflation, interest rates, and employment levels, correlate with spatial patterns of housing prices across different cities in China. Through the utilization of geospatial data and econometric modeling, we seek to identify spatial clusters, hotspots, and coldspots of housing price changes in relation to macroeconomic shifts. Additionally, the study will explore the spatial heterogeneity of the housing market responses to macroeconomic changes, shedding light on regional disparities and variations in housing price dynamics. The findings of this research will provide valuable insights into the spatial relationships between macroeconomic conditions and housing prices in Chinese cities, offering implications for policymakers, real estate developers, and investors seeking to understand the nuanced dynamics of the housing market in response to macroeconomic shifts. |
| Keywords: | China; Housing Prices; macroeconomic indicators; spatial analysis |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-108 |
| By: | Xiaodan Liu; Anupam Nanda; Sotirios Thanos |
| Abstract: | Distance and commuting costs are well established as key determinants of location choice for a place of work and a place of residence. Technological changes in recent decades have greatly affected these factors. Triggered by the COVID-19 pandemic, there is now widespread adoption of various forms of flexible working, work-from-home (WFH), and hybrid working, and those are expected to continue to shape working patterns. As workers are increasingly able to choose residence locations farther away from the place they work, it raises a significant question: how are urban markets affected by the introduction of new ways of working? In this study, a spatial equilibrium model is employed with data from all regions of England to analyse changes in the distribution of population and income and their impacts on real estate markets, considering household heterogeneity and local amenity diversity. We also analyse the implications of this new sorting and look at the possibility of the inequality gap widening due to varying levels of access to new work patterns. This research has substantial implications for policymaking and investment decisions. |
| Keywords: | England; Housing location choice; New sorting; Work from Home |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-094 |
| By: | Jaller, Miguel; Qian, Xiaodong; Xiao, Ivan |
| Abstract: | Finding ways to boost transportation access for underserved populations can unlock broad social benefits. Micromobility programs, including bikesharing, offer scalable solutions. National, state, and regional housing and urban development agencies promote affordable housing and transit-accessible developments by funding programs such as the Low-Income Housing Tax Credit and Community Development Block Grants. However, these efforts are not always coordinated and the physical distance between affordable housing and transit access continues to grow. The problem is compounded by low car ownership rates in lower income urban communities. These circumstances have led to inequitable mobility access. To correct course, pairing affordable housing developments with reliable transit services is essential. This practice can increase equity and accessibility. A team at the University of California, Davis, conducted a case study in Sacramento, California, to explore bikesharing as an option for connecting affordable housing residents with transit services. This brief summarizes the findings from that research and provides implications for the field. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Accessibility, bicycles, housing, location, public transit, travel demand, travel time, vehicle sharing |
| Date: | 2024–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt2z8432cr |
| By: | Céline Grislain-Letrémy; Julie Sixou; Aurélie Sotura |
| Abstract: | During heatwaves, urban heat islands (UHI) affect cities neighborhoods heterogeneously due to differences in urban form, building quality, vegetation, and human activity. Some populations are particularly vulnerable, such as older adults and young children or low-income households, who have fewer options facing UHI. In this paper, for the first time, we measure UHI exposure among households depending on their income in the major French cities. We build and match finely localized data on temperature, vegetation, residential building density, height and period of construction, and households socioeconomic characteristics across nine of the largest French cities. We find that the relationship between UHI exposure and income depends on their pre-existing spatial sorting. In cities like Paris, the French capital, where both affluent and low-income households reside close to the city center, UHI exposure by income follows a U-shaped curve. In contrast, in cities where affluent households live in rich suburbs, like Lyon, France's second largest city, UHI exposure decreases with income. We also find that vulnerable households, defined by both age and income criteria, are slightly more exposed but far less able to renovate their dwellings or leave cities during heatwaves. |
| Keywords: | Climate Change; Urban Heat Islands; Urban Areas; Spatial Inequalities |
| JEL: | Q54 R11 R14 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:banfra:966 |
| By: | Kim, Jae Hong; Barajas, Jesus M.; Marantz, Nicholas J.; Houston, Douglas; Herrara, Veronica; Okashita, Alex; Cabello, Maxwell B. |
| Abstract: | More systematic coordination between transportation and housing development is increasingly recognized as a promising strategy for creating more sustainable communities. In California, the importance of transportation-housing coordination is reflected in recent legislative efforts to address the state’s long-standing housing affordability crisis. One approach is to encourage higher density affordable housing developments near transit or in similarly transportation-efficient areas, such as locations with low vehicle miles traveled (VMT). However, little is known about how transportation access should be considered in guiding housing development, what challenges can arise from coordinating housing development with transportation, and what the state can do to better deal with these challenges and achieve more equitable residential densification. |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt15d720k1 |
| By: | Marco Schmandt |
| Abstract: | Using detailed survey data from the German microcensus, I analyze changes in the distributions of housing affordability for renters in three local housing markets (Berlin, Cologne, Ruhr area). Despite (strong) real increases in rents, housing affordability, measured as the income net of housing expenditures (residual income), increased between 2002 and 2018 along the entire distributions in two of the three markets. I document that at the same time the socio-demographic (education, age, household size) and housing market compositions (locational quality, living space per person, mobility) changed in all housing markets and propose that these compositional changes could contribute to the observed increases of residual incomes. To assess the impact of compositional changes on local housing affordability, I apply a decomposition method based on recentered influence function regressions (Firpo, Fortin & Lemieux 2018) to decompose changes in residual incomes along the local affordability distributions into a part that can be attributed to compositional changes and a residual that must be attributed to changes in preferences and implicit prices. I show that at the local level and along the whole distributions, a major part of the increases of residual incomes is explained by changes in the composition of socio-demographic characteristics. |
| Keywords: | Housing Affordability; housing expenditures; residual income; RIF-decomposition |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-002 |
| By: | Tobias Just; Daniel Oeter |
| Abstract: | With increasing data availability through online real estate listing platforms more and more asking price data is used in research as a proxy to investigate price dynamics in real estate markets. This practice is facing criticism with regard to the robustness of the results generated, as asking price data only provide a biased picture of the underlying dynamics due to possible deviations from the price actually paid (transaction price). There has been limited research, whether the spread between asking and transaction prices is systematic or erratic. This study adds to this literature by being the first paper to analyse the relationship for a large data set of micro locations of the Berlin housing market. We analyse two unique data sets from the Berlin Expert Committee for Property Values and Immoscout24, containing all registered transaction and asking prices between 2007 and 2022. With the available variables, we are able to create distinctly assignable transaction/offer price pairs for almost all observations in the dataset and therefore estimate representative spreads in Germany's largest housing market. |
| Keywords: | asking prices; housing; Residential real estate markets; transaction prices, |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-131 |
| By: | Rong Wang; Anupam Nanda; Eero Valtonen |
| Abstract: | In the context of expanding global economic liberalisation and the emergence of an integrated global financial market, there has been a consistent upward trend in global real estate investment over the last few decades. While the previous studies examined the locational choices of foreign real estate investment across countries, there remains a paucity of literature analysing foreign real estate investment at the sub-national level. In this paper, we focus on the notion that real estate is 'local' and investigate the scale and determinants of foreign investment flows between real estate markets at the city level, employing a gravity modelling framework. The study utilises a dataset of the bilateral real estate investment flows across over 40 cities, spanning the period from 2005 to 2021. The result indicates that the economic size of cities boosts the scale of investment flows, and the distance has significant effects on foreign real estate flows. In addition, the finding also reveals that the disparity in real estate market transparency between the markets has a positive association with foreign real estate investment flows. |
| Keywords: | Cross-border Capital Flows; Global Cities; Gravity model; Real Estate Investment |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-070 |
| By: | Jeongseob Kim |
| Abstract: | City undergoes life cycles such as development, growth, and decline. Cities experiencing decline occur due to changes in population and industrial structures, and these declining cities may have different physical characteristics and usage patterns compared to growing cities. Specifically, the central areas of cities, often referred to as downtown or main street, concentrate various facilities as the focal point for employment, commercial activities, and urban administration. However, as a city enters the decline phase, vacant storefronts increase, new construction activities decrease, and pedestrian traffic on the streets declines. Such vitality declines hinder the influx of new businesses and contribute to the continued decline of the city. In this context, this study aims to compare and analyze the characteristics of entrepreneurs in growing and declining cities to derive insights for the management and revitalization of declining cities. Targeting cities in Korea with a population of over 100, 000, the study distinguishes the life cycles of cities based on changes in population and employment over the past 20 years. It establishes variables for the physical environment and service characteristics of commercial districts in each city and statistically analyzes how different characteristics manifest based on the city's life cycle. Finally, the study classifies cities based on their life cycle and commercial district characteristics, proposing development strategies for each type of city. |
| Keywords: | city life cycle; decline; Shrinking Cities; urban life cycle |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-095 |
| By: | Kim, Jae Hong PhD; Barajas, Jesus M. PhD; Marantz, Nicholas J. PhD; Houston, Douglas PhD; Herrera, Veronica; Okashita, Alex; Cabello, Maxwell B. |
| Abstract: | While transportation infrastructure and efficiency should inform where to build more housing, little is known about how housing allocation and development processes can be coordinated more systematically with transportation. To date, transportation-housing coordination has often relied on the densification of areas near rail transit stations, putting heavy burdens on these locations and their residents. Much less attention has been paid to how densification can be achieved in a more equitable manner by encompassing other sites. This report directs attention to non-rail locations, specifically low vehicle miles traveled (VMT) areas and bus corridors, and examines the challenges that can arise in promoting densification more broadly. It shows that data uncertainties can make it challenging to identify low VMT locations and that prioritizing only low VMT locations for residential development may have limited effectiveness in expanding housing opportunities in high opportunity areas. The report further explores ways to achieve more inclusive densification of non-rail transit areas and highlights the importance of anti-displacement strategies. |
| Keywords: | Social and Behavioral Sciences, Housing, transit oriented development, land use, bus transit, vehicle miles of travel, travel behavior |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt3qn422qg |
| By: | Jan Rouwendal; Lars Brugman |
| Abstract: | This paper investigates the duration of housing construction projects in the Netherlands. We utilize comprehensive data from the Dutch Land Registry for the period 2013-2022 to investigate the importance of municipal land ownership, building plot price changes, construction costs, development inside areas that are already built-up and competition. The construction process covers the time between issuance of building permits and completion of the project, which can be split in a preparation and construction phase. We find that municipal involvement in projects speeds them up significantly, while increasing building plot prices and especially construction costs have a delaying effect. Construction inside already built-up areas fastens the preparation and slows down actual construction, with an significant net delaying effect on the total duration. Competition decreases the time needed for construction. Our results lend support to real option theory and indicate differences in the objections of private firms and local authorities. |
| Keywords: | Housing construction; Housing Supply; Land Use Planning; Stalled sites |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-128 |
| By: | Miroslav Pánik; Andrej Adamušin |
| Abstract: | The current turbulent development in the real estate market, not only in Slovakia but throughout Europe, is caused by several crises that have a global impact and partially resemble the situation in the market 15 years ago. One factor that negatively affects the real estate market in Slovakia is the lack of residential real estate. In the long term, the demand for housing significantly exceeds the supply of apartments.The article analyzes the prices of real estate intended for housing in Slovakia. It defines economic, demographic and social factors that have a significant impact on the development of real estate prices. The methodology of statistical data collection differs considerably in the developed countries of the EU. Národná banka Slovenska has been publishing quarterly data on real estate prices since 2005. Development modeling is possible, for example, using correlation and regression analysis, which is well known. In the presented article, the forecast of housing prices will be realized with the help of artificial intelligence - neural networks. |
| Keywords: | Artificial Intelligence; Forecasting; Neural Networks; residential real estate prices |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-091 |
| By: | Qinyue Luo (ROCKWOOL Foudation Berlin); Huihua Xie (Zhejiang University) |
| Abstract: | This study investigates the impact of teachers’ stereotyping of non-local students in terms of both academic performance and noncognitive outcomes using a random assignment of Chinese middle school students to teachers. We find that biased beliefs against non-local students, particularly among Chinese teachers, negatively affect non-local students by decreasing academic performance and increasing behavioral problems, with no significant effects on local students. Mechanism analysis suggests that these negative outcomes result from reduced teacher engagement with non-local parents, weaker classroom integration, and diminished self-confidence among non-local students. The negative effects are especially pronounced for non-local boys while non-local girls show resilience by increasing their efforts. These results highlight the critical role of teachers’ stereotyping in shaping disparities in human capital development between local and non-local students. |
| Keywords: | Teachers’ Stereotypes, Non-Local Students, Test Scores, Mental Stress, BehaviourProblems Index |
| JEL: | I24 J15 J24 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:2420 |
| By: | Lorenzo Incoronato (CSEF–University of Naples Federico II); Salvatore Lattanzio (Bank of Italy) |
| Abstract: | This paper studies a place-based industrial policy (PBIP) aiming to establish industrial clusters in Italy in the 1960s-70s. Combining historical archives spanning one century with administrative data and leveraging exogenous variation in government intervention, we investigate both the immediate effects of PBIP and its long-term implications for local development. We document agglomeration of workers and firms in the targeted areas persisting well after the end of the policy. By promoting high-technology manufacturing, PBIP favored demand for business services and the emergence of a skilled local workforce. Over time, this produced a spillover from manufacturing – the only sector targeted by the program – to services, especially in knowledge-intensive jobs. Accordingly, we estimate higher local wages, human capital, and house prices in the long run. We provide suggestive evidence that these persistent effects may depend on the initial conditions of targeted locations. |
| Keywords: | place-based industrial policy, employment, wages, agglomeration |
| JEL: | J24 N94 O14 O25 R58 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:2419 |
| By: | Norbert Pfeifer; Robert Hill; Miriam Steurer |
| Abstract: | Increasing the energy efficiency of housing needs to be a key part of strategies to reach Net Zero carbon emissions by 2050. In this paper we measure the market incentives of owners to improve the energy efficiency of residential properties and how these incentives differ by location and property type. By linking sales records for England and Wales with their Energy Performance Certificates (EPCs), we create a merged micro-level dataset providing transaction price, physical and locational characteristics, energy performance, recommended energy efficiency improvements, and associated costs at the level of individual properties. We also construct a proxy for plot size using the exact geographic location and distances to neighbouring properties. We then estimate a hedonic model to predict the property price increases if all EPC recommendations were implemented. Our results reveal significant differences in market incentives across regions and property types. On average, we find that 84.4% of the costs of EPC-recommended energy efficiency improvements are capitalised in property prices for flats, as compared with 59.4% for semis/terraces and 59.3% for detached houses, although significant differences exist across regions. Subsidies targeted to regions and property types where market incentives are weakest could help reduce the cost of reaching Net Zero. |
| Keywords: | Energy Efficiency Improvements; Energy Performance Certificate; housing market |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-064 |
| By: | Sven Damen; Peter Reusens; Joren Vandenbergh; Tijmen van Kempen; Frank Vastmans |
| Abstract: | This paper presents a novel approach to constructing a real-time price index for the Belgian residential housing market using data from online real estate platforms. Online listing data have the key advantage that they are available real-time, approximately 6 months earlier than the official transaction data. A price index based on this data therefore allows policymakers and other stakeholders to make more informed and accurate decisions. By linking scraped listing data for the period 2014 to 2023 originating from several different online platforms to transaction data, we analyze the disparities between listing and sales price indices. Using information on time on market, the probability of sale and the amount of listings we control for these disparities and develop a listing price index that aligns closely with a sales price index. Furthermore, we show that monitoring trends in time on market and probability of sale can serve as valuable indicators for predicting short term changes in housing prices. |
| Keywords: | Listing data; Price Index; Residential Real Estate |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-121 |
| By: | Leung, Tin Cheuk (Wake Forest University, Economics Department); Sun, Xiaojin (Oklahoma State University); Tsang, Kwok Ping (Virginia Tech) |
| Abstract: | This paper aims to quantify racial prejudices using transaction-level housing market data. We pin down the impact of a marginal change of racial composition in a narrowly-defined neighborhood on the price appreciation between repeated sales of a house, and we find that an additional nonwhite household within a radius of 0.2 miles reduces the price appreciation by 1.27 percentage points. The effects are weaker in neighborhoods with a thicker housing market and a higher income level, suggesting that the role of racial prejudices is limited by market forces. The effects are also associated with voting behaviors and public anti-racism statements made on social media, indicating that they are likely to be driven by taste-based racial preferences. While we also find evidence of racial price discrimination effects as in the literature, these effects tend to be a form of statistical discrimination driven by other factors that correlate with race. |
| Keywords: | Housing market; repeated sales; racial prejudices; machine learning |
| JEL: | H00 J15 R23 R30 |
| Date: | 2024–10–17 |
| URL: | https://d.repec.org/n?u=RePEc:ris:wfuewp:0117 |
| By: | Fernanda Antunes; Matthew Pollock; Michael White |
| Abstract: | The trade of commercial real estate is distinguished by its intrinsic costs and time-consuming nature, which carries implications for the performance and risk associated with real estate investments. The Time on the Market (ToM), representing the duration a property actively remains listed, constitutes a pivotal metric for evaluating market liquidity within the real estate sector. Our research investigates the temporal aspects of commercial real estate transactions in the United Kingdom, employing data derived from CoStar and scrutinising a sample encompassing approximately 6, 500 transactions spanning the interval from 2013 to 2023.Our findings reveal fluctuations within the ToM indicator. For instance, in 2023, the median duration on the market for office properties amounted to 220 days, whereas for industrial properties, this metric was notably lower at 165 days. This observed variation underscores the inherently dynamic nature inherent in commercial real estate transactions, emphasising the imperative of comprehending and gauging market liquidity by means of the ToM metric. |
| Keywords: | commercial real estate; Liquidity; time on the market; UK |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-059 |
| By: | Marek Walacik; Aneta Chmielewska; Richard Grover |
| Abstract: | Local government units’ own revenues are the most significant sources of financing their activities, from the point of view of their financial self-reliance. The sources include several groups of income characterized by different fiscal efficiency and performed functions. One of the groups is formed by so called local fees, that being a source of revenue, are also urban development factors that influence entities operating in the municipality. Among the fees that are the main income of municipalities in most developed economies are ad valorem property taxes. In countries that have not implemented this solution, where the basis for determining the tax is, for example property area, it was necessary to develop alternative solutions that enable the collection of fees on various changes in the real estate structure (e.g. the adjacent fee). Property valuation principles defining the scope, assumptions and methodological procedures are substantial in that case. The principles are subject of continuous changes, which can have either positive or detrimental impact on urban development. This article attempts to assess the potential impact of legal changes, in terms of determining the value of real estate for the purpose of the adjacent fee collection on the municipal revenues and consequently urban development policy implementation. |
| Keywords: | Adjacent fee; Municipal revenues; Property valuation principles; Urban Development |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-053 |
| By: | Hamid Noghanibehambari; Jason Fletcher |
| Abstract: | Previous studies document the potential links between early-life insults and life-cycle outcomes. However, fewer studies examine the effects of local labor market shocks during early-life on old-age male mortality. This article empirically investigates this link using a large-scale deindustrialization as a source of shocks to local labor markets: the decline in the New England’s textile industry during the 1920s and 1930s. Consistent with prior studies, we find small impacts on migration and changes in sociodemographic composition of counties post-deindustrialization. Using Social Security Administration death records linked with historical censuses 1900-1940 and difference-in-difference event studies, we find reductions in longevity for those born in highly-exposed counties whose families are categorized as non-migrants and those residing in non-urban areas. The results suggest intent-to-treat effects of about 3.3 months while the treatment-on-treated calculations suggest reductions of about 4 years in longevity of children of affected families. Using 1950-1960 census data, we find that those born in highly-exposed counties post-deindustrialization reveal large reductions in schooling, decreases in high school completion, and significant decreases in measures of socioeconomic standing. We further discuss the policy implication of these findings. |
| JEL: | I1 I15 J1 N30 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33039 |
| By: | Daria Denti (Gran Sasso Science Institute); Alessandra Faggian (Gran Sasso Science Institute) |
| Abstract: | Do spatial socioeconomic features influence the demand for forced labour also in places where it is illegal and socially unacceptable? We provide an answer to this question by estimating the effect of the characteristics of the local industry structure on forced labour in manufacturing (FLM hereafter) using Italy as case study. Conceptually, we bridge the literature on forced labour with economic geography to empirically test the effect of local industry specialisation and firm size. Exploiting a novel database of geo-tagged episodes of FLM across Italian Local Labour Market Areas, we find that find that industry specialisation and the share of micro-firms in the industry that specialises a place are key predictors for FLM. Instrumental variable estimates relying on novel data on the geography of Italian firms in 1911 show that results are robust to endogeneity threats. Findings also hold to the inclusion of potential confounding features, like the presence of migrants and institutional quality, and to spatial dependecy tests. Moreover, results support the relevance of addressing the spatial dimension for a thorough understanding of FLM. Overall, this work contributes to the currently scant quantitative evidence on the micro-regional determinants of forced labour in the Global North, which is still relatively unexplored. |
| Keywords: | forced labour, local labour market, industry specialisation, discrimination, firms. |
| JEL: | J47 J7 J8 L1 L25 L6 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ahy:wpaper:wp56 |
| By: | Mikulić, Josip; Vitezić, Vanja; Srhoj, Stjepan; Kuliš, Zvonimir |
| Abstract: | Existing literature has largely overlooked the relationship between excessive tourism growth and international emigration. This study addresses this gap by analyzing Croatia, a country that experienced a significant population decline-losing 10% of its inhabitants between the 2011 and 2021 censuses-amid rapid and highly seasonal tourism growth. Coastal Croatia, in the later stage of the Tourism Area Life Cycle (TALC), contrasts with Continental Croatia, in its early stage. We first establish a positive association between rising housing prices and emigration across both regions. More critically, we demonstrate that tourism activity correlates with increased emigration in areas experiencing excessive tourism (late TALC stage), while it is negatively associated with emigration in regions with lower tourism levels (early TALC stage). Our findings shed light on the overlooked adverse effects of tourism growth in the later stages of the TALC, emphasizing the need for nuanced approaches to tourism development and public policy. |
| Keywords: | overtourism, housing prices, emigration, brain drain |
| JEL: | O15 R21 R23 L83 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1501 |
| By: | Stephen J. Redding (Princeton University, NBER and CEPR); Daniel M. Sturm (London School of Economics and CEPR) |
| Abstract: | We use the German bombing of London during the Second World War as an exogenous source of variation to provide evidence on neighborhood effects. We construct a newly digitized dataset at the level of individual buildings on wartime destruction, property values, and socioeconomic composition in London before and after the Second World War. We develop a quantitative spatial model, in which heterogeneous groups of individuals endogenously sort across locations in response to differences in natural advantages, wartime destruction and neighborhood effects. We find substantial and highly localized neighborhood effects, which magnify the direct impact of wartime destruction, and make a substantial contribution to observed patterns of spatial sorting across locations. |
| Keywords: | London; England; Great Britain; United Kingdom, Agglomeration, Neighborhood effects, Second World War, Spatial Sorting |
| JEL: | F16 N9 R23 |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:pri:cepsud:322 |
| By: | Vahid Saadi |
| Abstract: | This paper shows that the rise in import competition from China forced U.S. banks to rebalance their credit portfolios away from business loans and towards mortgage lending during the period from 1999 to 2006. I show that while aggregate mortgage lending declines in exposed counties, banks that are more exposed to the rise in import competition increase their mortgage origination significantly in non-exposed areas, and expand their geographical reach into new counties. Mortgages originated by such banks in new counties are more likely to be high-interest loans issued to low-FICO score, high-LTV (loan-to-value) borrowers that would have otherwise been credit rationed. Overall, the findings show that banks that are more exposed experience a rebalancing of their loan portfolio towards residential loans during the sample period. These results highlight the role of increased import competition from China for the rapid increase in size and riskiness of the U.S. mortgage market prior to the 2007-09 mortgage crisis. |
| Keywords: | Bank portfolio reallocation; Financial Crisis; Import competition; Mortgage lending |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-043 |
| By: | Floris Blok; Franz Fuerst |
| Abstract: | The way in which climate change impacts land and property values has drawn considerable attention of economists over the recent years as the impacts of climate change are starting to be felt. Agricultural land and residential property at risk of flooding have received most attention. This paper looks at the case of altitude and (reduced) snowfall and winter sports in the European Alps, a region uniquely dependent on the right climatic conditions for its economic survival. We hypothesise that skiers and house-buyers switch from lower-lying, less snow-secure resorts to high-altitude areas with more reliable snowfall. Employing a panel comprising 303 Swiss municipalities across 45 different ski resorts, our study spans from 2001 to 2020. We regress changes in mean house prices at the municipal level over the 19-year period on altitude, temperature and (change in) snow cover duration. The channels through which climate might affect house prices indirectly (income, employment, visitor numbers) are also examined. We find that higher altitudes and lower temperatures are associated with increased house price appreciation over the 2001-2020 period for ski resorts but not for the control group of municipalities not located near a (major) ski resort. No such relationship is found for average snow cover duration or changes in snow cover. Possible explanations for these findings are discussed. |
| Keywords: | Climate Change; housing; Regional Analysis; Tourism |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-085 |
| By: | Overman, Henry G.; Xu, Xiaowei |
| Abstract: | We consider disparities across local labour markets in Great Britain. Disparities in wages and employment rates are large and persistent, although smaller than 20 years ago. These disparities largely reflect the concentration of high-skilled workers, who would have better labour market outcomes wherever they live. This concentration is driven by differences in the demand for, and supply of, skills and the self-reinforcing interaction between the two, which is particularly pronounced in the highest-wage areas and at the upper end of the wage distribution. The highest-paid jobs are concentrated in London and a handful of other areas and wage disparities are mostly driven by the higher-paid. Places that offer higher earnings also have higher rents, which may entirely offset gains in earnings. Consistent with this, people in higher-paid places are no happier than those in lower-paid places. |
| Keywords: | spatial inequality; place; labour market |
| JEL: | R14 J01 J1 |
| Date: | 2024–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:121453 |
| By: | Lynne Armitage; Johari H.N. Amar |
| Abstract: | Over the last few decades, there has been an increasing awareness that Australian housing policies are failing to meet the needs of low- and middle-income households. This study addresses persistent challenges households face in the private rental market, exacerbated by the pandemic, soaring rents and termination of National Rental Affordability Scheme (NRAS). This study examines the efficacy of ongoing policy debates of market-based schemes and identifies strategic and tactical opportunities for housing stakeholders. This empirical research, including 31 interviews with key informants from public, private and community sectors, reveals substantial influence of ‘set and forget’ by partisan politics on the oversight available to policymakers in such programs. The findings highlight five key mistakes and five lessons learned, emphasising the pressing need to reassess current policies and strategies to tackle the deepening housing affordability crisis. The research also offers a benchmark test for all affordable housing policies, namely ‘personal and collective will in policy implementation’ – PaCWiPI – applicable for all housing policy processes. |
| Keywords: | Affordable Housing; Australian Private rental sector; NRAS; PaCWiPI |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-010 |
| By: | Meng, Meng (Swedish Institute for Social Research) |
| Abstract: | I describe the gender wealth gap in China and explore the reasons behind its expansion in recent decades. The analysis suggests that a combination of China’s 2011 Marriage Law reform and soaring housing prices contribute to this widening gap. The reform shifts the division of housing property upon divorce from an equal (50-50) distribution to one contingent upon the names registered on the housing deed, thereby conferring a wealth advantage to husbands usually registered on the housing deed. Descriptive analysis reveals that men hold more ownership of housing and wealth than women. Specifically, I demonstrate that, post-reform, husbands possess 22% more housing property share than their wives, resulting in an increased housing wealth advantage of 44, 884 CNY (equivalent to 7.9 times the annual income of wives in 2010). A dynamic difference-in-differences (DID) analysis indicates that although husbands’ share of property ownership initially surged and then declined post-reform, their proportion of housing wealth continued to increase and stabilize, primarily due to the rapid rise of housing prices. Furthermore, heterogeneity analysis shows a greater property share gap among rural couples but a more pronounced wealth gap among urban couples, attributed to rising housing prices in urban areas. The study concludes with a discussion of how seemingly gender-neutral policies can have gendered economic effects by interacting with traditionally gendered societal norms. |
| Keywords: | gender gap in property; gender wealth gap; property division |
| JEL: | J16 J18 |
| Date: | 2024–05–01 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:sofile:2024_003 |
| By: | Sergio Destefanis (University of Salerno); Valter Di Giacinto (Bank of Italy) |
| Abstract: | This paper focuses on the impact of EU structural funds (SFs) on the GDP per capita of 183 European NUTS2 regions throughout the 1990-2015 period. To allow for the endogeneity of funds allocation to regions, we estimate a bivariate structural panel VAR model, allowing for unobserved heterogeneity through a rich menu of deterministic controls. Our main identifying restriction is rooted on the widely documented long lags affecting the implementation of EU’s Cohesion Policy. Through a spatial VAR specification, we also estimate spillovers from local SF expenditure on other areas. We find positive and highly significant multipliers measuring the local response of GDP to an exogenous shock in local SF expenditure, with a long-run value settling at 2.6. The spillover effects on GDP from an exogenous shock to SFs are also positive and significant, but much smaller (about one fifth of the within-region responses). When partitioning our sample according to features suggested by the literature (size, stage of development and EU funding regimes), we find that within-region multipliers are higher in regions with a larger population, located in countries supported by the Cohesion Fund, and interested by the Convergence objective. Spillovers are also heterogenous across different groups of regions, turning out to be negative in regions belonging to countries not supported by the Cohesion Fund. All this evidence is validated in qualitative terms by a robustness check concerned with the choice of spatial weights |
| Keywords: | Cohesion Policy, Spatial structural VAR, Fiscal multipliers, Spillovers, EU NUTS2 regions |
| JEL: | C33 E62 H50 |
| Date: | 2022–12 |
| URL: | https://d.repec.org/n?u=RePEc:ahy:wpaper:wp35 |
| By: | Stephan Kippes |
| Abstract: | In Germany there is not much information available on the number of real estate companies. Property companies in Germany need a permit before they start doing business. In this respect, it should be possible to determine the number of companies selling or letting properties. Since this approval is not returned, even if the real estate company is no longer in business, the number of permits is not meaningful. In addition, there is a lack of information on how many of these companies are only occasional brokers and how many of these companies can be assumed to be fully established brokerage firms. Therefore, the empirical paper analyzes the number of real estate companies, and important features of their business activities based on the IMV database. It also examines how the number of brokerage firms has changed over time considering the respective real estate sales on the German real estate market.The IMV program is an efficient research tool for residential market analysis, the program collects nearly all property ads in Germany, which are published in real estate portals, newspapers, and weeklies, and stores them in the IMV data base. Over 700, 000 real estate offers are evaluated nationwide every day from hundreds of print media and the Internet. |
| Keywords: | Brokerage; German Real Estate Market; number of real estate companies in Germany; Residential Real Estate |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-057 |
| By: | Marianne Wyrwoll; Elisabeth Beusker |
| Abstract: | The escalating costs associated with construction and financing, coupled with increasingly stringent legal and regulatory requirements, exert substantial pressure on real estate development companies. Consequently, a discernible surge in insolvency rates has been observed within the real estate development sector. This study aims to systematically investigate the adaptive strategies employed by real estate developers in response to the challenging market conditions, specifically focusing on alterations in their profitability analyses. An online survey was conducted among real estate developers based in Germany. The survey considered different types of real estate developers, company sizes, and asset classes. The results suggest that there have been changes in the way real estate developers view profitability, particularly in their choice of profitability indicators. Influential factors include both external factors, such as regulatory changes and crises, and internal factors, such as personnel changes within the company. |
| Keywords: | market pressure; profitability analysis; Real Estate Development |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-122 |
| By: | Augusto Cerqua (Sapienza University of Rome); Costanza Giannantoni (Sapienza University of Rome); Federico Zampollo (Gran Sasso Science Institute); Matteo Mazziotta (ISTAT) |
| Abstract: | Assessing institutional quality at the municipal level is a complex task and available indices are usually dispersed across different years and offer limited geographical coverage. To bridge this gap, we have introduced the Municipal Administration Quality Index (MAQI), the first composite index designed to measure the quality of administrations at the most granular administrative level over a broad time span. Focusing on Italian municipalities, MAQI evaluates the quality of municipal administrations by examining objective dimensions concerning bureaucratic quality and capacity, local politicians’ valence attributes, and local governments’ economic and fiscal performance. Spanning from 2001 to 2021 and covering nearly all Italian municipalities, MAQI will enable researchers to assess the administrative quality of local governments across multiple dimensions and over time, a task that was previously impracticable. |
| Keywords: | administrative quality; municipalities; composite index; multidimensional phenomena; Italy. |
| JEL: | D73 H11 H70 |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:ahy:wpaper:wp50 |
| By: | Damian Damianov; Xiangdong Wang; Cheng Yan |
| Abstract: | We decompose the Google Trends Search Volume Index into naïve and sophisticated searches and examine their impacts on mortgage default, respectively. Using U.S. data from 2006 to 2018, we find that the sophisticated search activity has a positive and robust relationship with the change in the percentage of mortgages in 90+ days of delinquency. However, foreclosure starts are positively related to naïve search activity in the short term, but negatively related to sophisticated search activity in the long term. Borrowers are more likely learn from sophisticated online searches than from naïve online searches, and they can use the information to avoid foreclosure starts and keep their houses. The relationship between Google search activity and mortgage default outcomes are significantly stronger in states that experienced substantial house price drops in the recent year. Our findings are robust to a battery of alternative settings. |
| Keywords: | Google search; Information transmission; Mortgage Default Risk |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-056 |
| By: | Daria Denti (Gran Sasso Science Institute); Paola Proietti (Joint Research Centre); Alice Siragusa (Joint Research Centre); Iraklis Stamos (Joint Research Centre) |
| Abstract: | Rising economic inequality poses a significant urban challenge. Research indicates that current deficiencies in defining urban economic inequality hinder monitoring and policy formulation. We propose that the emphasis on decent work and inclusive growth outlined in the Sustainable Development Goals (SDGs), particularly SDG 8 and 10, could aid in refining this definition. By integrating insights from urban inequality research in regional science with space-neutral inequality domains from SDG literature, we present a novel characterisation of urban inequality encompassing income and working conditions. Our approach emphasises the inclusion of populations not captured by official registries, multidimensionality, and within-city metrics, which we operationalise in a monitoring framework. We validate our framework through mixed-method analysis, employing the city of Bologna, Italy, as a case study and engaging local stakeholders to interpret the findings. Our metrics reveal spatial patterns of inequality overlooked by conventional approaches. Multidimensional measures, integrating employment with underemployment and income with demographic factors, unveil nuanced inequality dynamics both between and within urban areas. Similarly, metrics incorporating homeless individuals and irregular migrants in the target population illuminate previously obscured dimensions of inequality. Finally, we underscore the utility of data generated by municipalities and other local stakeholders, which remain underutilised in urban inequality research. |
| Keywords: | urban inequality, income, employment, homeless, SDGs |
| JEL: | D31 D63 H75 J15 J16 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ahy:wpaper:wp53 |
| By: | Alejandro Casado (BANCO DE ESPAÑA); David Martínez-Miera (UNIVERSIDAD CARLOS III DE MADRID AND CEPR) |
| Abstract: | We provide evidence that bank loan supply reactions to monetary policy changes are market-specific, emphasizing the importance of banks’ local specialization. We analyze the U.S. mortgage market and find that when monetary policy eases, banks increase new mortgage lending growth more in markets in which they are geographically specialized relative to other markets and banks. This holds after controlling for local lending opportunities and (unobservable) bank differences. Further empirical findings, supported by a simple model, suggest that banks face market-specific differences in lending advantages, related to market-specific information, leading them to exhibit different reactions to monetary policy changes. We document the aggregate effects of this geographical specialization channel both at the county (regional) level on mortgage supply and house price growth, as well as at the bank level on average specialization growth. Our study underscores the relevance of banks’ local specialization in shaping the transmission of monetary policy. |
| Keywords: | bank lending, federal funds rate, geographical specialization, information, monetary policy, mortgage market |
| JEL: | D82 E52 E58 G21 G23 L10 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:bde:wpaper:2440 |
| By: | Helena Mantere; Juha Franssila |
| Abstract: | Interest in indoor environmental quality (IEQ) has increased within Finland's real estate sector, gaining more attention from both property owners and tenants. IEQ-related technologies can improve the quality of indoor environments, but also enable monitoring of IEQ and even occupancy. These solutions can enhance employee well-being, but also reduce costs for tenants and property owners, and support their sustainability goals. But despite the growing interest and the recognized benefits, adoption of IEQ technologies has been rather slow in the real estate industry. The purpose of the research is to examine whether and how real estate owners and tenants perceive value in IEQ in office environments, in post-pandemic context. The research focuses on identifying and evaluating the key IEQ attributes that create value for the tenants. Additionally, the research aims to assess owners and tenants’ willingness to pay (WTP) for improved IEQ and IEQ technologies. The research utilizes a mixed-method approach, employing both interviews and a questionnaire to achieve a comprehensive understanding. As a result, a framework is created for evaluating the value generated by IEQ. With the framework, for instance office tenants' needs can be assessed and met more effectively. |
| Keywords: | Indoor Environmental Quality; office environment; Value Creation; Willingness to pay |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-127 |
| By: | Anna Knoppik; Marcelo Cajias; Wolfgang Schäfers |
| Abstract: | Retrofit measures are critical for achieving policy-driven goals to reduce Carbon dioxide (CO2) emissions. Although the benefits of retrofitting are widely recognized, there has been limited research on how these interventions affect the pricing of assets, particularly regarding regional determinants. Predicated on the assumption that retrofits are compulsory for apartments with inadequate energy efficiency to align with regulations, an understanding of the pricing mechanism is essential. This paper therefore uses a semi-parametric model to examine the influence of energy-efficient refurbishments on the rent-to-price ratio, expressed as net initial yield, in the residential sector in Germany and explores the role of spatial variables that affect the pricing of assets. In addition, a fuzzy K-means cluster analysis is used to identify groups of assets that more likely to benefit form a retrofit. The results show that apartments in rural areas have larger rent and price deviations, which is reflected in the rent-to-price ratio. Furthermore, the analysis reveals that the yield premium from retrofitting fluctuates based on regional conditions and applicable regulations. These findings are crucial for effectively quantifying ESG measures and underline the importance of various determinants for investment decisions. |
| Keywords: | energy performance certificates; Generalized Additive Model; Machine Learning; Residential Real Estate |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-116 |
| By: | Lehrer, Steven (Queen's University and NBER); Lepage, Louis-Pierre (Swedish Institute for Social Research); Sousa Pereira, Nuno (University of Porto) |
| Abstract: | We study how exposure of employers to immigrants, both at the market and at the individual firm level, mitigates immigrant-native disparities. We use administrative employee-employer matched data from Portugal, which provides a unique setting given that it experienced almost no immigration until the early 2000s followed by substantial immigration waves. Focusing on the evolution of market wages across successive immigration cohorts, we find that increased employer exposure to immigrant groups can account for up to 25% of the wage convergence between immigrants and natives over the last two decades. We also document that individual-level exposure of firms to immigrants plays an important role, influencing future hiring and remuneration of immigrants. Our results provide new insights into how barriers to hiring different worker groups shape economic inequality, with novel implications for integration policies. |
| Keywords: | immigration; immigrant-native wage gaps |
| JEL: | J15 J31 |
| Date: | 2024–03–01 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:sofile:2024_002 |
| By: | Banzhaf, H. Spencer; Mathews, William; Walsh, Randall |
| Abstract: | This study examines the relationship between racial segregation and environmental equity in Pittsburgh from 1910 to 1940. Utilizing newly digitized historical data on the spatial distribution of air pollution in what was likely America’s most polluted city, we analyze how racial disparities in exposure to air pollution evolved during this period of heightening segregation. Our findings reveal that black residents experi- enced significantly higher levels of pollution compared to their white counterparts, and this disparity increased over time. We identify within-city moves as a critical factor exacerbating this inequity, with black movers facing increased pollution expo- sure. In contrast, European immigrants, who were also initially exposed to relatively high levels of pollution, experience declining exposure as they assimilate over this time period. We also provide evidence of the capitalization of air pollution into hous- ing markets. Taken as a whole, our results underscore the importance of considering environmental factors in discussions of racial and economic inequalities. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2024–10–23 |
| URL: | https://d.repec.org/n?u=RePEc:ags:nccewp:347603 |
| By: | Fabiano Compagnucci (Gran Sasso Science Institute); Alessandra Faggian (Gran Sasso Science Institute); Giulia Urso (Gran Sasso Science Institute) |
| Abstract: | This paper aims to assess whether the branding of context-specific intangible assets can be associated with resilience to shocks. Linking the literature on place branding with that on local development, we explore whether the presence of brands related to natural, wine and food, and cultural-historical capital in Italian municipalities was able to mitigate the effect of the 2008 crisis. Results underline the counter-cyclical role of the wine and food sector, which, however, seems to characterise more urban areas than inner areas. This aspect should be considered in the recent policy focus on peripheral areas in Italy and the EU. |
| Keywords: | Place branding; Resilience; 2008 crisis; Italian inner areas. |
| JEL: | R23 R58 Q18 O18 |
| Date: | 2023–02 |
| URL: | https://d.repec.org/n?u=RePEc:ahy:wpaper:wp38 |
| By: | Bandoni, Emil (Central Bank of Ireland); Pratap Singh, Anuj (Central Bank of Ireland) |
| Abstract: | We examine loan-level data to compare the characteristics of Help to Buy scheme participants in Ireland with other first-time buyers. The profile of Help to Buy users broadly reflects the recent composition of new housing supply, especially in terms of location. Our estimates show that Help to Buy users are typically one year younger, higher income borrowers who purchase larger, more expensive homes. The average house price differential is likely connected to the nature of Help to Buy properties, which are newly built, larger, and with higher energy ratings. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:cbi:fsnote:6/fs/24 |
| By: | Heiko Leonhard; Ralf Laschinger; Wolfgang Schäfers |
| Abstract: | The tokenization of real-world assets is one of the fastest growing innovations in blockchain technology within the financial landscape. It is poised to redefine the current paradigm in how we fund, trade, and manage assets. Its disruptive potential is particularly significant for traditionally illiquid assets, such as real estate. One of the main promises of tokenization is the improvement of accessibility, liquidity, and tradability. Therefore, a functioning and lively secondary market is a necessary requirement. We observed 342 real estate tokens in the USA traded between 2021 and 2023 across various marketplaces. Based on 2, 429, 220 blockchain transactions, we analyze the market structure of real estate tokens and the dynamics of liquidity, tradability, and their determinants. Our study is the first comprehensive empirical investigation into secondary market activities and liquidity for real estate token. This research provides guidance for real estate token investors, business actors, and regulatory entities on the practical functioning and the maturity of the nascent secondary markets for real estate tokens. |
| Keywords: | Digital Assets; Real Estate Token; Secondary market; tokenization |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-098 |
| By: | Benedikt Gloria; Sven Bienert; Johannes Melsbach; Detlef Schoder |
| Abstract: | In recent times, large language models (LLMs) such as ChatGPT and LLaMA have gained significant attention. These models demonstrate remarkable capability in solving complex tasks, drawing knowledge primarily from a generalized database rather than niche subject areas. Consequently, there has been a growing demand for domain-specific LLMs tailored to social and natural sciences, such as BioGPT or BloombergGPT. In this study, we present our own domain-specific LLM focused on real estate, based on the parameter-efficient finetuning technique known as Low-rank adaptation (LoRA) applied to the Mistral 7B model. To create a comprehensive finetuning dataset, we compiled a curated 21k self-instruction dataset sourced from 670 scientific papers, market research, scholarly articles and real estate books. To assess the efficacy of Real-GPT, we devised a set of ca. 5, 000 multiple-choice questions to gauge the real estate knowledge of the models. Despite its notably compact size, our model outperforms other cutting-edge models. Consequently, our developed model not only showcases superior performance but also illustrates its capacity to facilitate investment decisions, interpret current market data, and potentially simplify property valuation processes. This development showcases the potential of LLMs to revolutionize the field of real estate analysis and decision-making. |
| Keywords: | Digitalisation; LLMs; NLP; real estate |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-036 |
| By: | Philipp Ager; Francesco Cinnirella |
| Abstract: | Nineteenth-century social reformers promoted the establishment of kindergartens as a remedy for the problems associated with industrialization and immigration. Using newly collected data on historical kindergarten statistics, we evaluate the impact that the roll-out of the first kindergartens in American cities had on poor families. We find that immigrant women exposed to kindergartens significantly reduced fertility. Their offspring were more likely to attend school, they worked less at age 10-15, and they had fewer children as adults. Kindergarten exposure also helped children and mothers of non-English-speaking households to acquire English proficiency thereby illustrating the importance of kindergartens in the social integration of immigrant families. |
| Keywords: | Kindergarten Education, Immigration, Fertility Transition, Child labor, School Attendance, Social Integration. |
| JEL: | N31 J13 I25 O15 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_604 |
| By: | Banerjee, R.; Blunch, N-H; Cassese, D.; Gupta, N. D.; Pin, P. |
| Abstract: | An enduring question in education is whether team-based peer learning methods help improve learning outcomes among students. We randomly assign around 10, 000 middle school students in Karnataka, India, to alternative peer learning treatments in Math and English that vary the intensity of collaboration. Teamwork with co-coaching outperforms simple teamwork and incentive treatments by increasing the test scores by about 0.25 standard deviation, but only in Math. This is both statistically and economically significant for students at the bottom of the ability distribution. We develop theoretical conditions under which teamwork with co-coaching outperforms simple teamwork as a peer-learning method. |
| Keywords: | Cooperative learning methods, jigsaw, peer effects |
| JEL: | I20 I24 C93 |
| Date: | 2024–10–10 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2463 |
| By: | Paúl Elguezabal (University of Goettingen); Inmaculada Martínez-Zarzoso (University of Goettingen & University of Goettingen) |
| Abstract: | This paper evaluates the impact of regularisation programs on immigration flows using a newly collected dataset and panel-data techniques applied to gravity models. The main novelty is twofold. First to present the dataset with detailed information on regularisation policies in OECD countries, including those implemented over the period from 1944 to 2023 and specifying the timeframe of implementation and the origin nationalities targeted. And second, to estimate the impact with a gravity model of bilateral migration applying a Poisson pseudo maximum likelihood estimator for an unbalanced panel of 193 origins and 32 OECD destinations for 199-2022. The main results indicate that the regularisation impact is very heterogeneous across geographical regions of incoming migrants and across groups of countries depending on their level of development. In particular, the results indicate that regularisation programs are a pull factor for lower-income OECD destinations. |
| Keywords: | Migration, regularisation, policy evaluation, income and regional heterogeneity |
| JEL: | F |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:inf:wpaper:2024.14 |
| By: | Siqi Huang; Anupam Nanda; Eero Valtonen |
| Abstract: | Research on ESG issues in real estate has indicated a complex link between sustainable real estate and financial success. A particular challenge in exploring the link comes from the lack of robust measures of various aspects of real estate sustainability, partly due to the limited availability of granular data. Presently, the assessment of firm-level real estate sustainability mainly uses ESG or CSR ratings from rating agencies, which rely heavily on self-disclosed ESG data from real estate companies. These third-party ESG/CSR ratings come with several limitations, including overlooking the potential impact of disclosure language patterns and sentiment bias on ESG ratings. In this study, we focus on the words around ESG actions and promises from official disclosures and credible news sources and offer a comprehensive evaluation of real estate companies' sustainability performance. We focus on 65 US REITs over a 15-year time period. Our preliminary analysis, based on computational linguistic techniques, highlights various salient features of what companies disclose in the public domain. |
| Keywords: | ESG Discourse; Real Estate Sustainability |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-076 |
| By: | Bogatzki, Tamara |
| JEL: | F22 Z13 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302439 |
| By: | Piotr Jarecki; Ewa Kucharska-Stasiak |
| Abstract: | The paper examines the behavioural aspects of the market value concept in property valuation. The following research hypotheses are considered: (I) decision-making, pricing, valuation, and value in the real estate market form a behavioural chain whose links influence each other; (II) the current definition and interpretation of market value omit the behaviour of the real estate market participants; (III) the current definition and interpretation of market value also omit the special characteristics of real estate and the conditions under which real estate transactions are made, including risk and uncertainty.To allow for the behavioural aspects of the market value of properties, we propose (a) extending the current definition of a market value to include risk and uncertainty and (b) highlighting the need to continue the discussion on changing the presentation and interpretation of the valuation result.The paper has been prepared based on the results of (I) a critical analysis of the pertinent literature and (II) a survey of property valuers to assess their awareness of the behavioural aspects of valuations and views on the presentation of their outcomes. |
| Keywords: | Behavioural Economics; Market Value; Property Valuation; Uncertainty |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-029 |
| By: | Yulia Evsyukova; Felix Rusche; Wladislaw Mill |
| Abstract: | We assess the impact of discrimination on Black individuals’ job networks across the U.S. using a two-stage field experiment with 400+ fictitious LinkedIn profiles. In the first stage, we vary race via AI-generated images only and find that Black profiles’ connection requests are 13 percent less likely to be accepted. Based on users’ CVs, we find widespread discrimination across social groups. In the second stage, we exogenously endow Black and White profiles with the same networks and ask connected users for career advice. We find no evidence of direct discrimination in information provision. However, when taking into account differences in the composition and size of networks, Black profiles receive substantially fewer replies. Our findings suggest that gatekeeping is a key driver of Black-White disparities. |
| Keywords: | Discrimination, Job Networks, Labor Markets, Field Experiment |
| JEL: | J71 J15 C93 J46 D85 |
| Date: | 2023–12 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2023_482v2 |
| By: | Ervi; Liusman; Kwong Wing Chau; Y. L. Wong |
| Abstract: | This study examines the impact of proximity to enclosed fresh food markets on nearby housing prices in Hong Kong. Fresh food markets are commonly found in residential areas in Asia for the convenience of shoppers. However, the presence of these markets can also pose health and hygiene hazards to nearby occupants. This study aims to investigate the net external effect of fresh food markets on nearby housing prices, which has not been explored before. The empirical results of this study suggest that the net external effects of enclosed fresh food markets on nearby housing prices are non-linear.This study found that larger enclosed fresh food markets, in terms of total floor area, have a stronger net positive external effect on nearby housing prices. Additionally, private enclosed fresh food markets were found to have a stronger net positive external effect compared to public ones. Furthermore, older enclosed fresh food markets were found to have a stronger net positive external effect compared to newer ones. In addition, the study also found evidence that enclosed fresh food markets with air conditioning systems have a net negative external effect on nearby housing prices. |
| Keywords: | External Effects; Fresh Food Market; Hong Kong; Housing Prices |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-099 |
| By: | Athira Vinod (University of Nottinghami) |
| Abstract: | Under the Right to Education Act (2009), the Indian government mandated private schools to reserve 25% of primary school places for socioeconomically disadvantaged children. This study xamines the policy’s spillover effect on private schooling costs. Using household survey data and a difference-in-differences approach, it compares private school fees for disadvantaged children across two age cohorts and survey rounds. Findings show fees decreased by ₹223–₹844 (0.05–0.25 SD) post-policy. A 5% enrolment increase led to a fee reduction of ₹240–₹470 (0.05–0.14SD). The effects are driven by an increased supply of low-fee private schools facilitating cheaper private education for disadvantaged children. |
| Keywords: | Education, Right to Informaion Act |
| Date: | 2024–09–24 |
| URL: | https://d.repec.org/n?u=RePEc:nca:ncaerw:176 |
| By: | Dunn , Richard A.; Babkin, Anton; Sandler, Austin; Curtis, Katherine; Adamson , Clayton; Peters, Sara |
| Abstract: | The economies of rural America continue to lag those in metropolitan areas with many experiencing significant hardship, but there is increasing agreement among researchers and policymakers that existing place typologies are inadequate for addressing urban-rural disparities. Because these typologies emphasize the urban end of the rural-urban continuum with rural treated as the undifferentiated residual category, the complex interaction of economic, demographic, and social factors that define rural places are ignored. To address this challenge, we have developed a data-driven approach to identify connections between places based on the spatial distribution of potential supply chain linkages to generate a new typology–Economic Catchment Areas (ECAs) thereby illuminating place-to-place connections obscured in existing place hierarchies. To do so, we construct county-to-county potential trade flows in intermediate inputs as the solution to a transportation distance loss function. Counties that would serve as the most important user of inputs for at least one other county are classified as destinations of an ECA, while all the counties for which the destination would be the largest user of their inputs are the sources of the ECA. For rural source counties, we then estimate the relationship between business, economic, demographic, and health outcomes in ECA destination counties and outcomes in their associated source counties. We find that these are positively related, highlighting the potential usefulness of the ECA framework for studying heterogeneity in economic and demographic outcomes among rural U.S. counties. |
| Keywords: | Community/Rural/Urban Development, International Relations/Trade |
| Date: | 2024–07–28 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:347606 |
| By: | Francesca Caselli; Ms. Huidan Huidan Lin; Mr. Frederik G Toscani; Jiaxiong Yao |
| Abstract: | Against the backdrop of the war in Ukraine, immigration into the European Union (EU) reached a historical high in 2022 and stayed significantly above pre-pandemic levels in 2023. The recent migration has helped accommodate strong labor demand, with around two-thirds of jobs created between 2019 and 2023 filled by non-EU citizens, while unemployment of EU citizens remained at historical lows. Ukrainian refugees also appear to have been absorbed into the labor market faster than previous waves of refugees in many countries. The stronger-than-expected net migration over 2020-23 into the euro area (of around 2 million workers) is estimated to push up potential output by around 0.5 percent by 2030—slightly less than half the euro area’s annual potential GDP growth at that time—even if immigrants are assumed to be 20 percent less productive than natives. This highlights the important role immigration can play in attenuating the effects of the Europe’s challenging demographic outlook. On the flipside, the large inflow had initial fiscal costs and likely led to some congestion of local public services such as schooling. Policy efforts should thus seek to continue to integrate migrants into the labor force while making sure that the supply of public services and amenities (including at the local level) keeps up with the population increase. |
| Keywords: | Migration; Labor Markets; European Union |
| Date: | 2024–09–27 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/211 |
| By: | Jere R. Behrman (University of Pennsylvania); Ricardo Gomez-Carrera (World Inequality Lab); Susan W. Parker (University of Maryland); Petra E. Todd (University of Pennsylvania); Weilong Zhang (University of Cambridge) |
| Abstract: | In the last two decades, a number of Latin American countries expanded preschool availability and made attendance compulsory. In 2002, Mexico launched a reform that mandated three years of preschool before entering primary school, gradually phasing in the requirement. Using nationwide longitudinal administrative educational data, household survey data, and a quasi-experimental regression-discontinuity approach, this paper investigates the medium and longer-term impacts of the mandate. Results show that the preschool mandate enhanced fifth- and sixth-grade math and Spanish scores, improved noncognitive skills, heightened student engagement, reduced failure rates, and led to greater schooling attainment for young adults nearly 20 years post-reform. |
| Date: | 2024–10–07 |
| URL: | https://d.repec.org/n?u=RePEc:pen:papers:24-029 |
| By: | Di Giacomo Marina (Department of Economics, Social Studies, Applied Mathematics and Statistics, University of Turin, Torino, Italy); Perucca Giacomo (Politecnico di Milano, Department of Architecture, Built Environment and Construction Engineering (DABC), Milan, Italy); Piacenza Massimiliano (University of Piemonte Orientale, Department of Law and Political, Economic and Social Sciences (DIGSPES), Alessandria, Italy); Turati Gilberto (Università Cattolica del Sacro Cuore, Department of Economics and Finance (DEF), Rome, Italy.) |
| Abstract: | We focus on caesarean sections (C-sections) to examine access to appropriate medical care for immigrants in the Italian tax-funded universal National Health Service. We use a detailed micro-dataset to analyse whether non-native women receive different treatments compared to natives and whether there are differences between groups of non-natives defined by citizenship. For identification, we control for hospital fixed effects and maternal characteristics, and we compare the different groups by exploiting the clustering of non-natives of different nationalities in different urban areas. We find no significant differences between natives and non-natives in terms of C-sections and inappropriate C-sections. However, we do find significant differences between different groups of immigrants. In addition, we find that linguistic and socio-cultural distances are significant drivers of inequalities among non-native women. As language, habits, traditions, and beliefs can affect communication between the woman and the medical staff in many ways, we interpret our findings in terms of the ability to process and understand information between the two parties. In support of this interpretation, we find evidence of a "segregation effect": women linguistically and socio-culturally more distant from Italy experience the greatest difficulties in accessing appropriate care when living in urban areas characterized by the presence of large immigrant communities of the same nationality. Moreover, we find that the role of linguistic and socio-cultural barriers is stronger for first-time mothers and women with non-native partners. |
| Keywords: | Health inequalities, Immigration, Language Differences, Socio-cultural dDifferences. |
| JEL: | H75 I12 I14 I18 O15 R23 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:tur:wpapnw:095 |
| By: | Panle Jia Barwick; Siyu Chen; Chao Fu; Teng Li |
| Abstract: | Concerns over the excessive use of mobile phones, especially among youths and young adults, are growing. Leveraging administrative student data from a Chinese university merged with mobile phone records, random roommate assignments, and a policy shock that affects peers’ peers, we present, to our knowledge, the first estimates of both behavioral spillover and contextual peer effects, and the first estimates of medium-term impacts of mobile app usage on academic achievement, physical health, and labor market outcomes. App usage is contagious: a one s.d. increase in roommates’ in-college app usage raises own app usage by 4.4% on average, with substantial heterogeneity across students. App usage is detrimental to both academic performance and labor market outcomes. A one s.d. increase in own app usage reduces GPAs by 36.2% of a within-cohort-major s.d. and lowers wages by 2.3%. Roommates’ app usage exerts both direct effects (e.g., noise and disruptions) and indirect effects (via behavioral spillovers) on GPA and wage, resulting in a total negative impact of over half the size of the own usage effect. Extending China’s minors’ game restriction policy of 3 hours per week to college students would boost their initial wages by 0.7%. Using high-frequency GPS data, we identify one underlying mechanism: high app usage crowds out time in study halls and increases absences from and late arrivals at lectures. |
| JEL: | D12 D90 E24 I23 L82 L86 Z13 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33054 |
| By: | Louise Brown |
| Abstract: | Purpose: This paper empirically demonstrates that lag time to first bid (LT) and amount of first bid (DBid1) for open market property transactions are indicators to predict house price volatility. LT is advocated as an alternative measure to time on the market (TOM) and provides early signalling to vendor and agent of SP-LP.Methodology: The dataset contains 3124 detailed transaction histories for properties sold in Belfast between 2002-2009 characterising a period of rapid price growth (2005-2007) followed by a period of sharp decline (2008-2009). The dataset facilitates the investigation of housing market dynamics through examining trends of actual bidding histories using regression modelling. The effects of vendor and bidder behaviour in a rising and a falling market on sales price relative to list price are analysed.Findings: Results from regression analysis indicate LT as a statistically significant variable for predicting SP-LP offering a similar r2 to TOM model, combining DBid1 increases r2. LT provides an early indicator of market perception and conveys market intelligence that can inform price expectations and probability of sale. Furthermore, survival analysis demonstrates LT is a useful predictor of the probability of a sale achieving SP>LP.Originality: The dataset includes detailed transaction histories for residential property covering phases of a house price cycle including new variables of LT and DBid1 to enhance our understanding of the sales process through the use of microvariables which capture purchaser behaviour. |
| Keywords: | Bidding; House Price Cycles; Open Market Transactions; TOM |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-011 |
| By: | Alona Shmygel; Martin Hoesli |
| Abstract: | How many house price bubbles have there been over the last six centuries? And how have house prices responded to different types of systemic events? These two questions are addressed using house price data for Stockholm, Sweden, for the period 1420 to 2021. To answer the first question, we construct two measures to detect house price overvaluation, namely the price-to-income ratio and a fundamental price level for house prices, which is gauged against actual house prices. The second question is answered using local linear projections, with which we test the response of house prices to different types of systemic events, such as epidemics, wars, and financial crises. We check the lag with which house prices react and how long the responses last for different types of systemic events. Additionally, we investigate how the link between house prices and systemic events has changed over time. We find that bubble periods are evenly distributed over time. The price-to-income ratio appears to be sensitive to financial crises, which mostly happened during the 20th century. The influence of other types of systemic events is less straightforward and is time-varying. |
| Keywords: | Financial Crisis; House price bubble; Sweden; Systemic event |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-105 |
| By: | Matthias Soot; Alexandra Weitkamp |
| Abstract: | Prices of undeveloped land are the basis for property tax in most German federal states. The taxation is based on standard land values, which are primarily based on realized purchase prices of undeveloped land. On a nationwide level price index exists. The observation and presentation of price trends over time (economic cycle) for undeveloped land in local markets presents a challenge. The main reasons for this are the low number of transactions, the influence on pricing caused by the seller (e.g. subsidy by the local authority or focused sale in a new development area), the strong dependence of prices on the quality of the location, which overlaps with the economic situation. Various options for mapping price trends are discussed. In particular, the use of weighting functions via similarities (spatial and functional similarities) are discussed. The derivation of the index series is examined using decision tree-based methods such as Random Forest and compared to a mean and median average with smoothing function. The results show that the price trend can be well understood. Nevertheless, all methods show a very high uncertainty per index number, which does not represent a significant development despite a large price trend. |
| Keywords: | Index; spatial weighting; undeveloped land |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-104 |
| By: | Erkut, Hande; Reuben, Ernesto |
| JEL: | D23 D91 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302367 |
| By: | Elizabeth M. Jacobs (Max Planck Institute for Demographic Research, Rostock, Germany); Tom Theile (Max Planck Institute for Demographic Research, Rostock, Germany); Daniela Perrotta (Max Planck Institute for Demographic Research, Rostock, Germany); Xinyi Zhao (Max Planck Institute for Demographic Research, Rostock, Germany); Athina Anastasiadou (Max Planck Institute for Demographic Research, Rostock, Germany); Emilio Zagheni (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Abstract: | This paper examines gender differentials in the international migration of professionals, and how this varies by country, industry, age, and years of experience. We leverage data from LinkedIn, the largest professional networking website, to construct immigrant and emigrant Gender Gap Indexes (iGGI and eGGI). These indexes measure inflows and openness to international relocation. The findings indicate that, among LinkedIn users, the global population of immigrant professionals is at gender parity. The professional migrant population is majority-female in key destination countries like the U.S., U.K., Australia and France, as well as emerging destination countries like South Korea and Singapore. Our results show that the mobility of women migrants is driven by industries like finance, healthcare and real estate. We find evidence of positive selection among women migrant professionals in key destination countries and industries. Our results indicate that men are more open to international relocation than women, suggesting that men express higher migration aspirations, but men and women have similar rates of observed mobility. The paper makes novel contributions to the literature on migration aspirations, behavior and selectivity. Methodologically, we develop a new data set and appropriate measures to complement existing sources to study professional migration across a wide range of countries. |
| JEL: | J1 Z0 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:dem:wpaper:wp-2024-037 |
| By: | Soichiro Sugita (Graduate School of Media and Governance, Keio University) |
| Abstract: | While research on the management and leadership of superintendents has been extensively conducted in the United States, empirical studies within the Japanese context remain limited. We analyzes the impact of municipal superintendents' turnover on student achievement using panel data from academic assessments conducted in an anonymous prefecture. We show that the effect of superintendents' turnover on academic performance varies across municipalities, exhibiting a roughly symmetric distribution around zero, with both positive and negative impacts. Furthermore, the impacts of superintendent turnover on scores in Japanese language and mathematics are positively correlated. These findings suggest that the management and leadership of municipal superintendents are among the key determinants of student achievement in Japan. |
| Keywords: | Superintendents, Accountability, Difference in Differences |
| JEL: | I21 I22 M12 |
| Date: | 2024–10–12 |
| URL: | https://d.repec.org/n?u=RePEc:keo:dpaper:2024-021 |
| By: | Beata Wieteska-Rosiak |
| Abstract: | The paper examined the approach to shaping the circular economy (CE) in the ESG strategies of real estate and construction sector entities in response to climate change. The theoretical perspective indicates models and possibilities of applying the circular solutions in construction investments. The aim of the article is to identify the directions of implementation of circular economy principles by entities in the real estate and construction sector. Based on the analysis of the ESG strategies of entities from the real estate and construction sector (WIG real estate and construction index), this study leads to the conclusion that entities are becoming more and more active in implementing solutions from the circular economy, which is an opportunity to spread good practices to all real estate market stakeholders. The circular activities specified in the analyzed strategic documents differ in terms of type and scope of implementation. On the one hand, there is a positive direction in the implementation of circular principles and, on the other hand, there is still untapped potential for the development of the circular economy in real estate and construction. Unlocking the sustainable and circular potential requires stimulating the development of financial, economic, legal and social conditions by public, social and private sector. |
| Keywords: | circular practices; Climate Change; Sustainability Reporting; Sustainable Real Estate |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-087 |
| By: | Vanschoonbeek, Jakob |
| Abstract: | The recent rise and distinct geography of populism highlights the need for high resolution data on the economic and political landscapes and improved spatial political economy models that explain their interrelation. This paper shows that divergent development generates political externalities in lagging regions. To do so, it develops a dynamic spatial political economy model that integrates redistributive taxation and agglomerated economic growth in a standard economic geography framework. It finds that divergent development induces skill-biased labor mobility towards faster growing locations, simultaneously reducing their willingness to pay redistributive taxes and increasing their electoral influence on redistributive policy. To empirically validate and calibrate the model, the Spatial Political Economy in Europe Database (SPEED) is introduced, containing newly georeferenced electoral maps, political party classifications and gridded (per capita) GDP estimates for most European countries in the 17th release of the Constituency-Level Electoral Archive (CLEA). Instrumental variable regressions exploiting geographically-determined differences in economic growth potential confirm a strong constituency-level causal relation between underdevelopment and radical vote shares in the past two centuries. Counterfactual simulations suggests that policies that enhance labor mobility or income redistribution may both increase radical vote shares at least in the short run, as they risk fueling backlash in lagging and leading regions respectively. |
| Keywords: | Economic geography, political economy, political discontent, long-term effects of divergent development, quantitative model, populism, political extremism |
| JEL: | C51 C52 C63 C80 H21 J61 N93 N94 O40 R12 R32 Z18 |
| Date: | 2024–06–26 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122310 |
| By: | Drydakis, Nick (Anglia Ruskin University) |
| Abstract: | This study investigates the relationship between social vulnerability, illegal activities, and location-based business disruptions in Athens, the capital of Greece. The research utilises repeated cross-sectional data from 2008, 2014, and 2023, gathered from areas with high levels of criminal activity, reflecting the experiences of business owners and managers in these locations. The findings reveal that heightened levels of social vulnerability—including the presence of illicit drug users and homeless individuals—alongside illegal activities such as gang-related protection rackets and black-market operations, are associated with increased location-based business disruptions. These disruptions manifest in assaults on employees and customers, business burglaries, reputational damage, supply chain problems, and decreased turnover. The study also examines the impact of economic conditions in 2014 and 2023, when Greece's Gross Domestic Product was lower than in 2008, indicating an economic recession. The findings suggest that the economic downturn during these years further exacerbated location-based business disruptions. Conversely, enhanced public safety measures, such as increased police presence, law enforcement, and improved public infrastructure, were associated with a reduction in these disruptions. Furthermore, an interesting insight was that businesses with longer operating histories tend to experience fewer location-based disruptions, indicating that operating history might be perceived as a resilience factor. The study suggests that policy actions should focus on increasing police visibility, providing financial support to high-risk businesses, funding urban regeneration projects, maintaining public infrastructure, and delivering social services aimed at helping marginalised communities escape vulnerability. |
| Keywords: | social vulnerability, illegal activities, crime, criminality, business, entrepreneurship, business disruptions, economic recessions, public safety |
| JEL: | K4 K42 L26 I3 E32 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17321 |
| By: | Kilian Arthur Jea Enders |
| Abstract: | This research examines the role of voluntary certification, especially concerning the sustainable and governmental aspects for the real estate industry. The underlying paper delves into the implication and effectiveness of voluntary certification as a tool to promote ESG-conformity practices in real estate. By applying a systematic literature review on current academic papers, fragmented opinions regarding a certificate’s effectiveness can be perceived. The author identifies several key trends and controversial opinions regarding voluntary certification while examining its impact on investment decisions, market values, and regulatory landscapes. The findings indicate a complex interplay between economic-driven incentives, governmental regulation, and standards set within voluntary certification. This study contributes to understanding the dynamics between sustainable development and sustainable ambitions of and for the real estate industry. |
| Keywords: | Environmental impact assessment; Governance & Regulation; sustainability; Voluntary Certification |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-063 |
| By: | Brett Huettner; Stephan D. Whitaker |
| Abstract: | This District Data Brief analyzes how well regions in the Fourth District and across the United States retain their native residents and whether their retention rates are associated with population growth. |
| Keywords: | Population retention; Population Growth |
| Date: | 2024–10–24 |
| URL: | https://d.repec.org/n?u=RePEc:fip:c00003:99016 |
| By: | Brandtjen, Roland |
| Abstract: | Mostly it is the politicians who became known at international level an in the media on the topic of regional desired degree of Autonomy. But what do the inhabitants of the regions want? Firstly it will be clarified what is meant by "region". There was a choice between complete independence, more autonomy, maintaining the current status or less autonomy and more centralisation. In which regions do most survey participants choose which option and why? To answer them, data of the German Bundesländer, the Regions of France and Italy, the autonomous communities and cities of Spain, the British constituency countries and Cornwall, as well as Greenland, the Faroe Islands, Åland, the Isle of Man, the Bailiwick of Guernsey, the Bailiwick of Jersey and Gibraltar. This paper attempts to examine and fill a scientific gap on this topic by means of the comparison of economic data with results of adapted quantitative surveys. From 2019 and 2023, these surveys have been conducted in all mentioned regions. They are analysed by descriptive statistics. Correlation between regional language use and regional wealth, meaning of regional language use for the population and regional prosperity as well as the meaning of own unique culture for the regional population are calculated and interpreted. The paper concludes with a Conclusion, the bibliography and an annex. |
| Keywords: | European Regions, Independence, Autonomy, Centralisation, Quantitative Survey |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iubhbm:304402 |
| By: | Quentin Frère; Lionel Védrine (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, Territoires - Territoires - AgroParisTech - VAS - VetAgro Sup - Institut national d'enseignement supérieur et de recherche en alimentation, santé animale, sciences agronomiques et de l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UCA - Université Clermont Auvergne) |
| Abstract: | This paper proposes a theoretical model of voluntary intermunicipal cooperation and empirically tests its assertions through the French municipalities' choices of transferring their competences to the intermunicipal level. Using an original threshold models inference procedure, a probit model is estimated on shared competences. Two main results arise. Contrary to the decentralisation theorem prediction, citizens' preference heterogeneity does not hinder local cooperation, but fiscal potential heterogeneity does. Moreover, a zoo effect is at stake for some competences, for which a significant threshold effect in their transfer probability is identified. |
| Keywords: | H1 R5 H4 H73 H77 intermunicipal cooperation decentralisation theorem economies of scale zoo effect threshold regression model, H1, R5, H4, H73, H77 intermunicipal cooperation, decentralisation theorem, economies of scale, zoo effect, threshold regression model |
| Date: | 2024–01–04 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04739942 |
| By: | Jonathan Colmer; Eleanor Krause; Eva Lyubich; John Voorheis |
| Abstract: | We examine the labor market impacts of the U.S. coal industry’s decline using comprehensive administrative data on workers from 2005-2021. Coal workers most exposed to the industry’s contraction experienced substantial earnings losses, equivalent to 1.6 years of predecline wages. These losses stem from both reduced employment duration (0.37 fewer years employed) and lower annual earnings (17 percent decline) between 2012-2019, relative to similar workers less exposed to coal’s decline. Earnings reductions primarly occur when workers remain in local labor markets but are not employed in mining. While coal workers do not exhibit lower geographic mobility, relocation does not significantly mitigate their earnings losses. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:24-53 |
| By: | Wilhelm Breuer; Johannes Kroog |
| Abstract: | The paper compares the optimal portfolio constellations of listed real estate companies (LRE) with a pure market weighting over a time horizon from 2008 to 2023. The companies represented were selected according to market capitalisation and geographical criteria. The ten largest companies from each of the regions North America, the eurozone, Asia-Pacific and the UK were compiled in rolling five-year time frames according to the Sharpe ratio-optimised allocation. In a second step, the selected companies were structured according to their asset classes Retail, Residential, Office, Industrial, Diversified and Specialty and analysed using the same method. It can be seen that active portfolio management generally has a better risk-return profile than simply market-weighted portfolios. The risk component in particular can be significantly reduced. In comparison, the eurozone achieves the best risk-adjusted performance. Optimisation can increase the Sharpe ratio here by an average of +25.5%. In a comparison by asset class, companies with a residential focus stand out with the highest Sharpe ratio. By optimising the portfolio constellation, the Sharpe ratio can be increased by an average of 42.3%. |
| Keywords: | atcive portfolio management; CAPM; Listed Real Estate; Portfolio Selection |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-124 |
| By: | Magdalena Knapi?ska (Poznan University of Economics and Business) |
| Abstract: | The goal of this study is to analyze the flows of immigrants and emigrants in Poland. The paper starts with a literature review of economic theories of migration and demographic trends. In the last years, Poland experienced a large change migratory pattern and geographic labour mobility. While Poland was initially a source country in international migration, it is becoming increasingly a target country for migration flows. This development was accelerated by the war in Ukraine. Based on the geographical proximity and a long tradition of intense of short-term migration from Ukraine to Poland, nearly a half million of refugees from Ukraine moved to Poland. Moreover, the scope of migration changed from the short-term to the long-term migration. Although, this development caused some short-term structural problems in various fields including education and social system, the Polish economy was able to absorb the war refugee flows better than expected. |
| Keywords: | Demographic Trends, Macroeconomic Effects and Forecasts, Labor and Demographic Economics, Geographic Labor Mobility, Immigrant Workers |
| JEL: | J11 J00 J61 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:14516367 |
| By: | Drigo, Alessandra |
| Abstract: | This study addresses the presence of an environmental justice issue along the dimensions of income and ethnicity in the urban context of Bologna, Italy. Among other Italian cities, Bologna has historically had a left-leaning political tendency and has made considerable substantial efforts to address social issues extensively. This makes it a useful cross-section dataset links gridded PM2.5 concentration data at 0.01°x0.01° resolution with census demographic characteristics and income per capita information for the year 2011. This study presents two main findings. i) It confirms the existence of an environmental justice gap, which affects vulnerable segments of the population along both income and ethnicity dimensions. A 1% increase in income per capita is associated with a 0.09% decrease in PM2.5 levels (a rise of 1 standard deviation of income per capita in the census corresponds to a reduction of -0.53 mg/m³ in PM2.5); whereas a 1% increase in the share of non-white individuals living in the census tract leads to a 0.13% increase in PM2.5 levels (+3.92 mg/m³ increase associated with a rise of 1 standard deviation in the proportion of non-whites in the census). ii) There is currently no evidence to suggest that exposure disparities for nonwhite individuals are changing depending on income level, whether it is lower or higher. Residence in lower/higher income areas of the city does not significantly exacerbate/alleviate these disparities for non-white communities. Overall, these results highlight the widespread occurrence of environmental injustice across various geographical and political settings, including those that have historically prioritized social concerns. |
| Keywords: | Climate Change, Sustainability |
| Date: | 2024–10–23 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:347666 |
| By: | Elhoussaine Wahyana; Eduardo Amaral Haddad |
| Abstract: | The debate on global value chains (GVCs) has emphasized countries’ contributions to value-added creation. From an intercountry perspective, a new body of research is addingto this debate by studying how subnational regions contribute to the indicators in specific countries. Proper assessment of economic contributions is essential for designing incentive policies. This paper analyzes the role played by the main trading partners of Moroccan regions in local value chains. We use input-output (IO) analysis to decompose regional value-added in Morocco, based on different sources of domestic and foreign final demand, taking into account the differences in regional economic structures and the nature of systematic interdependence associated with the structure of inter-regional linkages in Morocco. For each final demand originating from and into one of the Moroccan regions, we estimate measures of trade in value-added (TiVA). The output decomposition of final demand into domestic and foreign demand, where the latter is broken down into the final demand from each trading partner, serves as the methodological anchor for the study. We use the inter-regional input-output table for Morocco with 2019 data. The measures of trade in value-added reveal different inter-regional and international trade integration hierarchies, with implications for regional inequality in the country. We try to answer two main questions. First, how do domestic absorption and foreign exports affect value-added generation in Moroccan regions? Second, what is the regional value-added content incorporated in the components of final demand by geographical source? |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rtrade:rp_01-24 |
| By: | Ritij Saini; Aditya Deora; Kirtesh Gadiya |
| Abstract: | The real estate sector is one of the key drivers of India's national economy, contributing about 7.3\% to the GDP. As the market evolves, more players enter, and government policies become more stringent, Indian real estate companies face increasing competition. Improving financial competitiveness is crucial for the survival and growth of these companies. This paper presents a financial competitiveness evaluation index system for Indian-listed real estate companies, covering profitability, solvency, and operational capacity. Using key financial ratios and a scoring system, the financial competitiveness of various companies was evaluated, revealing that companies with high scores have strong profitability and operational capacity. In contrast, those with lower scores struggle with solvency and working capital. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.06772 |
| By: | Seema Jayachandran (Princeton University and NBER); Lea Nassal (University of Duisburg-Essen); Matthew Notowidigdo (Univeristy of Chicago Booth School of Business and NBER); Marie Paul (University of Duisburg-Essen and CReAM); Heather Sarsons (University of British Columbia and NBER) |
| Abstract: | Many couples face a trade-off between advancing one spouse’s career or the other's. We study this trade-off by analyzing the earnings effects of relocation and the effects of a job layoff on the likelihood of relocating using detailed administrative data from Germany and Sweden. Using an event-study analysis of couples moving across commuting zones, we find that relocation increases men’s earnings more than women’s, with strikingly similar patterns in Germany and Sweden. Using a sample of mass layoff events, we find that couples in both countries are more likely to relocate in response to the man being laid off compared to the woman. We then investigate whether these gendered patterns reflect men’s higher earnings or a gender norm that prioritizes men’s career advancement. To do this, we develop a model of household decision-making in which households place more weight on the income earned by the man compared to the woman, and we test the model using the subset of couples where the man and woman have similar potential earnings. For both countries, we show that the estimated model can accurately reproduce the reduced-form results, including those not used to estimate the model. The results point to a role for gender norms in explaining the gender gap in the returns to joint moves. |
| Keywords: | Germany, Sweden, Labor migration, tied movers, gender gap in earnings |
| JEL: | J61 J16 R23 |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:pri:cepsud:326 |
| By: | Michael W. Walker; Nachiket Shah; Edward Miguel; Dennis Egger; Felix Samy Soliman; Tilman Graff |
| Abstract: | Slack – the underutilization of factors of production – varies systematically with economic development. Using novel and detailed measures of the utilization of labor and capital from a large representative sample of firms in rural and urban Kenya, we show that utilization is increasing in firm size, market access, and economic activity. We present a model of firm capacity choice where indivisibility in at least one input is a key driver of slack. We embed the model in spatial general equilibrium, with features characteristic of low-income settings – including many small firms and high transport costs – and show that it rationalizes both the endogenous emergence of slack in steady-state and elastic aggregate supply curves. We empirically validate model predictions using reduced-form estimates of the general equilibrium effects of cash transfers from a large-scale RCT in Kenya. The parsimonious model replicates much of the experimental evidence, predicting a large real multiplier of 1.5, driven by expansion in low-utilization sectors and firms, and limited average price inflation. Counterfactual analyses indicate that multipliers are likely to be meaningfully smaller in lower slack settings, such as urban areas. We use the model to revisit the estimation of spatial spillovers in clustered RCTs and uncover non-trivial ’missing intercept’ effects on income and inflation. Additionally, we innovate methodologically by pre-registering key elements of model estimation and validation. The findings suggest that input indivisibilities and slack are key features of developing country settings, and are quantitatively important for macroeconomic dynamics and policies. |
| JEL: | E12 E23 O47 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33055 |
| By: | Anderberg, Dan; Dahl, Gordon B.; Felfe, Christina; Rainer, Helmut; Siedler, Thomas |
| JEL: | J15 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302428 |
| By: | Massimo Mariani; Paola Amoruso; Antonia Brandonisio; Daniele Arcidiacono |
| Abstract: | The study aims to investigate the role of firms’ financial structure as a determinants of M&A transactions for real estate companies. The paper analyses how M&A transactions are influenced by particular aspects related to the choice of a specific financial structure, thus verifying leverage effects and the forms of financing. An interesting consideration could be made regarding the type of debt, i.e. whether it concerns bank debt or other forms of structured financing to develop M&A operations. Other noteworthy considerations are related to the volatility of the reference market, the characteristics of particular assets and specific macroeconomic conditions, which have unavoidable repercussions within the business environment.Ultimately, the paper can provide an in-depth perspective on optimizing the financial structure, thus enabling real estate companies to maximize benefits from M&A transactions.The present study could be particularly interesting in order to understand financial dynamics of real estate sector, offering practical insights for the stakeholders involved in extraordinary finance transactions. |
| Keywords: | financial structure; M&A; Market; real estate |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-132 |
| By: | Shure, Nikki; Zierow, Larissa |
| JEL: | I24 J24 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302381 |
| By: | Sergio Destefanis (University of Salerno); Giulia Nunziante (Sapienza University of Rome) |
| Abstract: | Developing upon Golden and Picci (2005) measure of corruption, we construct a comprehensive dataset for 20 Italian NUTS2 regions. This dataset includes measures of infrastructure in physical terms throughout 1987-2019 for thirteen intermediate categories and six main classes of assets, monetary measures of public capital stock (based on the PIM approach), spanning the 1890-2019 period, for nine asset classes, and a time-varying index of sectoral public expenditure efficiency throughout 1987-2019. Relevant novelties of the new dataset are its wide time range, and the availability of information for six asset classes, as well as for core, noncore and total infrastructure aggregates. An exploratory exercise investigates the impact of the new index of public spending efficiency on the effectiveness of cohesion policies upon GDP per capita. Our findings indicate that this index significantly influences the impact of national capital-account expenditures (especially national public investments) on GDP per capita. |
| Keywords: | Golden -Picci corruption index, physical measures of infrastructure, perpetual inventory method, cohesion policies |
| JEL: | O11 O43 R53 R58 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ahy:wpaper:wp52 |
| By: | Itamar Caspi; Nadav Eshel; Nimrod Segev |
| Abstract: | This study investigates the impact of increased debt servicing costs on household consumption resulting from monetary policy tightening. It utilizes observational panel microdata on all mortgage holders in Israel and leverages quasi-exogenous variation in exposure to adjustable-rate mortgages (ARMs) due to a regulatory shift. Our analysis indicates that when monetary policy became more restrictive, consumers with a higher ratio of ARMs experienced a more marked reduction in their consumption patterns. This effect is predominantly observed in mid- to lower-income households and those with a higher ratio of mortgage payments to total spending. These findings highlight the substantial role of the mortgage cash-flow channel in monetary policy transmission, emphasizing its implications for economic stability and inequality. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.02445 |
| By: | Neave O'Clery; Juan Chaparro; Andres Gomez-Lievano; Eduardo Lora |
| Abstract: | What drives formal employment creation in developing cities? We find that larger cities, home to an abundant set of complex industries, employ a larger share of their working age population in formal jobs. We propose a hypothesis to explain this pattern, arguing that it is the organised nature of formal firms, whereby workers with complementary skills are coordinated in teams, that enables larger cities to create more formal employment. From this perspective, the growth of formal employment is dependent on the ability of a city to build on existing skills to enter new complex industries. To test our hypothesis, we construct a variable which captures the skill-proximity of cities' current industrial base to new complex industries, termed 'complexity potential'. Our main result is that complexity potential is robustly associated with subsequent growth of the formal employment rate in Colombian cities. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.06971 |
| By: | Bertrand Garbinti; Pierre Lamarche; Frédérique Savignac |
| Abstract: | We provide detailed estimates of how the marginal propensity to consume out of wealth (MPC) varies along the distribution of household wealth and by asset composition, and analyse the sources of MPC heterogeneity across euro area countries. To do this, we i) build a household-level panel dataset combining wealth and consumption surveys for five European countries, and ii) use instrumented household-level panel regressions. First, we find heterogeneity across the wealth distribution with lower MPCs for high-wealth households. Second, we account for asset composition and show the significant role of housing wealth in all countries. We show that our results are indicative of a collateral channel. Third, cross-country differences in MPCs are mostly explained by country-specific institutional and socio-economic characteristics in Germany (compared to Spain) and by differences in consumption behaviours for Belgium, Cyprus and Italy. We show that MPC heterogeneity is related to homeownership rates, mortgage markets, demographics, and wealth inequality. Finally, we investigate to what extent heterogeneous MPC and wealth inequality affect consumption inequality. |
| Keywords: | Marginal Propensity to Consume out of Wealth, Collateral Channel, Household Surveys |
| JEL: | D12 E21 C21 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:banfra:962 |
| By: | Briony Banks (Ambition Institute); Sam Sims (UCL Centre for Education Policy & Equalising Opportunities, University College London); Jennifer Curran (Ambition Institute); Stefanie Meliss (Ambition Institute); Nazlin Chowdhury (Ambition Institute); Havva Gorkem Altunbas (UCL Institute of Education, University College London); Nikoletta Alexandri (Koninklijke Nederlandse Akademie van Wetenschappen); Leila MacTavish (Ark Teacher Training); Isabel Instone (Ark Teacher Training) |
| Abstract: | Breaking down sequences of teaching into constituent practices is thought to make learning to teach more manageable. However, it also divorces teaching practices from context, which risks leaving teachers unsure as to when or why to use a specific practice. Theorists have suggested that decomposing authentic sequences of teaching into their constituent parts and then recomposing them in new, meaningful sequences combines the benefits of both manageability and contextualisation. Using a classroom simulator experiment, we compared input from a teacher educator using decomposed and then recomposed sequences of teaching practice, against input that focused on whole, continuous sequences of teaching. We found that decomposition-then-recomposition was superior to a more holistic approach, and helped novice teachers adaptively transfer their teaching practices to a novel context. The findings are consistent with the idea that recomposition is complementary to decomposition, which has implications for the design of early career teacher development. |
| Keywords: | decomposition, recomposition, transfer, teacher education |
| JEL: | I20 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:ucl:cepeow:24-08 |
| By: | Stefania Miricola; Giorgio Ricchiuti; Margherita Velucchi |
| Abstract: | In the context of a local economy, the attraction of foreign investment is key player, given the positive effects that arise, both directly and indirectly, within the host region. This paper assesses the impact of regional characteristics, such as an R&D-friendly economic environment and institutional quality, on the longevity of companies targeted by foreign investments. We examine the survival probability of a sample comprising over 100, 000 foreign-owned manufacturing firms operating within the European Union (EU-28). A multi-level approach enables the evaluation of both firm- and location-specific features at two distinct geographical scales. Our findings indicate that government quality within national boundaries plays a pivotal role, not only in attracting foreign capital but also in promoting a long-term presence. Financial development at the national level exerts a profound influence on the survival of foreign affiliates, reducing the risk of exit by approximately 99%. |
| Keywords: | Regional economy, Survival, Multinational Enterprises, Multilevel analysis, Local Institutions |
| JEL: | F23 C14 C41 L25 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:frz:wpaper:wp2024_19.rdf |
| By: | Giese, Henning; Heinemann-Heile, Vanessa |
| Abstract: | This study analyzes whether and to what extent the provision of public goods and firms' trust in local governments' handling of local business tax revenues are associated with firms' willingness to pay local business tax. Using survey data on German small- and medium-sized firms, we find that the average perceived provision of public goods is not associated with the willingness to pay local business tax. Separating public goods into private- and business-related public goods, we find that the perception of public goods related to the private sphere of firms' decision-makers is associated with an increase in firms' willingness to pay local business tax by about 10%. However, public goods related to the business sphere show no similar association. Contradictory to the perceived provision of public goods, we find surprisingly no association between firms' willingness to pay local business tax and the actual provision of public goods. Trust in local governments' handling of tax revenue increases firms' willingness to pay local business tax significantly, with an effect size of about twice as large as for the perception of provided private-related public goods. These findings indicate that the handling of tax revenues exerts a more pronounced influence on firms' willingness to pay than the actual utilization of these revenues. Documenting tax revenue implications, we further show that the average willingness to pay local business tax within a local government is associated with a significant decrease in tax avoidance by about 10%. Our results inform local governments about how the provision of public goods and the building of trust can sustainably contribute to firms' willingness to pay local business tax. Thus, our results contribute to the understanding of how taxes can be efficiently collected and effectively used. |
| Keywords: | Tax Perception, Business Taxation, Tax Avoidance, Public Goods, Tax Revenue |
| JEL: | H25 H26 H41 H71 D91 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:arqudp:303521 |
| By: | Eduardo A. Haddad; Inácio F. Araújo |
| Abstract: | This paper presents a synthetic view of the socioeconomic and environmental impacts of the economic sectors and regions that make up the Moroccan economy, taking into account the current economic structure and production technologies. Therefore, the potential effects must be understood as signals to think about interventions aimed at redirecting the desired trajectories of sustainable development. The application of the tools developed to give scientific support to this analysis reveals the current structure of Morocco’s regional economies, inserted into the context of the national and world economies. The intricate web of interrelationships between the different sectors of each region’s productive apparatus— manifested by its supply chains, the generation of income by sectors, and their expenditures— is duly represented. Each of the 20 sectors into which the Moroccan economy was divided produces distinct effects on the productive system as a whole, duly measured by the instruments developed. Likewise, when analyzing the 12 regional economies one by one, one can assess their multidimensional impacts in the context of an integrated interregional system. Finally, to implement the hierarchical analysis based on pre-defined weights for the different structural indicators considered in the study, a tool was developed that provides a hierarchy of sectors (regions) most likely to contribute to the dimensions of development most closely associated with revealed preferences of the actors involved in the decision-making process. |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pp_07-23 |
| By: | Daria Denti (Gran Sasso Science Institute); Marco Modica (Gran Sasso Science Institute) |
| Abstract: | Justice quality influence on premeditated violent crimes is widely acknowledged, however little is known on its effect on Hit&Run (H&R) accidents, which are involuntary crimes in the first stage (the “Hit†) while becoming voluntary in the second stage (the “Run†). This paper provides a quantitative estimation of the effect of justice quality on H&R accidents in the U.S, where they generate high socioeconomic and emotional cost. We exploit a unique micro-regional database for U.S. counties for 2010-2018 and an instrumental variable model which draws on the Durkheimian role of individualism in shaping the evolution of institutions. We find that higher quality of justice, induced by historical and persistent individualism, has a substantial signaling effect capable of deterring H&R. Results are supported by several robustness checks, including testing alternative measures for justice quality to account for its composite dimensions. |
| Keywords: | Hit&Run, justice quality, institutions, individualism, American frontier |
| JEL: | D02 D64 D91 K14 N91 |
| Date: | 2022–12 |
| URL: | https://d.repec.org/n?u=RePEc:ahy:wpaper:wp37 |
| By: | Alexandre Sautter,; Guillaume Ficat-Andrieu,; Julien Casals,; Elodie Soundrom,; Mathieu Verdure |
| Abstract: | In the French Overseas territories, as in mainland France, individual car use is largely predominant, generating negative externalities (environmental and economic). It is all the more important in the Overseas territories, due to a lack of public transport and infrastructure adapted to active mobility, and therefore raises socio-territorial issues. Based on a study carried out in La Réunion and financed by the AFD, this paper examines the role and place of carpooling in an integrated public mobility policy. By analyzing the different types of user profiles and their respective obstacles, we identify levers for action and put forward a number of recommendations for AOMs to encourage this practice. |
| Keywords: | Guadeloupe, Guyane, La Réunion, Martinique |
| JEL: | Q |
| Date: | 2024–10–07 |
| URL: | https://d.repec.org/n?u=RePEc:avg:wpaper:en17436 |