nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2008‒04‒04
twelve papers chosen by
Steve Ross
University of Connecticut

  1. The Causal Relationship between Individual’s Choice Behavior and Self-Reported Satisfaction: the Case of Residential Mobility in the EU By Luis Diaz-Serrano; Alexandrina P. Stoyanova
  2. Lexus Lanes or Corolla Lanes? Spatial Use and Equity Patterns on the I-394 MnPASS Lanes By Tyler Patterson; David Levinson
  3. Detection of local interactions from the spatial pattern of names in France By Thierry Mayer
  4. Optimal Mortgage Refinancing: A Closed Form Solution By Sumit Agarwal; John C Driscoll; David Laibson
  5. From Average to the Frontier: A Nonparametric Performance Approach for Analyzing Externalities and Regions’ Innovativeness By Tom Broekel
  6. Strength, Sources, and Temporal Development of Primary Effects of Families´ Social Status on Secondary School Choice By Stocké, Volker
  7. In search of lost centrality By BOURDEAU-LEPAGE, Lise; HURIOT, Jean-Marie; PERREUR, Jacky
  8. Are Local Milieus the Key to Innovation Performance? By Binz, Hanna L.; Czarnitzki, Dirk
  9. How Hurricanes Affect Employment and Wages in Local Labor Markets By Belasen, Ariel R.; Polachek, Solomon
  10. Panic on the Streets of London: Police, Crime and the July 2005 Terror Attacks By Draca, Mirko; Machin, Stephen; Witt, Robert
  11. Qualifying Religion: The Role of Plural Identities for Educational Production By Boppart, Timo; Falkinger, Josef; Grossmann, Volker; Woitek, Ulrich; Wüthrich, Gabriela
  12. Social exclusion and the gender gap in education By Lewis, Maureen; Lockheed, Marlaine

  1. By: Luis Diaz-Serrano (IZA, CREB, GRIT. Department of Economics. Universitat Rovira i Virgili. Av. de la Universitat, 1. 43204 Reus (SPAIN).); Alexandrina P. Stoyanova (CREB, Department of Economic Theory. Universitat de Barcelona. Av. Diagonal, 690. 08028 Barcelona (SPAIN).)
    Abstract: One of the most persistent and lasting debates in economic research refers to whether the answers to subjective questions can be used to explain individuals’ economic behavior. Using panel data for twelve EU countries, in the present study we analyze the causal relationship between self-reported housing satisfaction and residential mobility. Our results indicate that: i) households unsatisfied with their current housing situation are more likely to move; ii) housing satisfaction raises after a move, and; iii) housing satisfaction increases with the transition from being a renter to becoming a homeowner. Some interesting cross-country differences are observed. Our findings provide evidence in favor of use of subjective indicators of satisfaction with certain life domains in the analysis of individuals’ economic conduct.
    Keywords: Housing satisfaction, residential mobility, homeownership, individual’s choice behavior.
    JEL: D1 R0 J0
    Date: 2008–03
    URL: http://d.repec.org/n?u=RePEc:xrp:wpaper:xreap2008-02&r=ure
  2. By: Tyler Patterson; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: A 2004-2006 longitudinal panel survey of I-394 residents found support levels at over 60 percent for the congestion priced High Occupancy Toll (HOT) lane, known to the Twin Cities as MnPASS. This number varies only slightly when sorted by income levels, gender, and education levels, suggesting that the arrangement is perceived as equitable. However, people with higher incomes use the system more often and thereby capitalize on the direct benefit more often, a finding consistent with other studies. Previous research has not revealed whether higher incomes actually cause people to use the MnPASS option more often or whether HOT lanes have simply been built along high income corridors, such as I-394. This paper aims to separate the effects of income and location on use to provide a more robust understanding of equity concerns. Using data provided by the Minnesota Department of Transportation, Heteroskedasticity-Consistent Method 3 (HC3) regressions, this paper suggests that location and income both explain HOT lane use.
    Keywords: Minnesota, Minneapolis, HOT Lanes, Congestion Pricing, Road Pricing, MnPASS, Value Pricing, Social Equity
    JEL: R41 R48 D63
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:nex:wpaper:mnpassequity&r=ure
  3. By: Thierry Mayer (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I)
    Abstract: Using data on name distributions in 95 French d´epartements observed from 1946 to 2002, we investigate spatial and social mechanisms behind the transmission of parental preferences. Drawing inspiration from recent work on social interactions, we develop a simple discrete choice model that predicts a linear relationship between choices by agents in one location and the choices made in neighboring areas. We explain the shares of parents that give their children Saint, Arabic, and American-type names. In a second exercise we examine the effect of distance between locations on dierences in name-type shares. In our last exercise we consider dissimilarity in actual names rather than name-types. Using Manhattan Distances as our metric, we find a steady and substantial decline in the importance of geographic distance. Meanwhile, differences in class and national origins have increasing explanatory power.
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:hal:papers:hal-00266554_v1&r=ure
  4. By: Sumit Agarwal; John C Driscoll; David Laibson
    Date: 2008–03–21
    URL: http://d.repec.org/n?u=RePEc:cla:levrem:122247000000002021&r=ure
  5. By: Tom Broekel
    Abstract: Although a rich literature has emerged analyzing the impact of localization, urbanization, and Jacobs externalities on regional innovativeness, the findings are still contradictory. Traditional studies differ mainly in the employed data but rely on similar empirical approaches. This paper argues in favor of using in this context production frontier approaches instead of the commonly employed production function approaches. In addition, a nonparametric frontier approach is used to empirically examine the influence of the externalities on regions’ innovativeness. For four different industries positive effect of localization and urbanization externalities are found. In contrast, with the exception of the transport equipment industry, Jacobs externalities seem to be of minor importance.
    Keywords: regional innovation performance, nonparametric frontier analysis, German electrics, electronics industry
    JEL: R12 O18 O31
    Date: 2008–03
    URL: http://d.repec.org/n?u=RePEc:egu:wpaper:0804&r=ure
  6. By: Stocké, Volker (Sonderforschungsbereich 504)
    Abstract: We analyze the relative importance of primary and secondary effects of both parents’ educational and occupational status on whether an upper or a less ambitious secondary school track is chosen after primary school in Germany. We compare standardized test scores, parents’ achievement beliefs, and teachers’ marks as conceptually different indicators for children’s academic competencies with respect to how completely they capture the strength and temporal development of primary effects. We found all measures, but in particular the teachers’ evaluations, to be strongly affected by the children’s social origin. Furthermore, teachers’ marks had the strongest effect on educational decisions, explained status differences in this respect to the largest extent, and proved to be the best single indicator for primary effects. However, each of the other measures and the children’s competency development in the past exert significant additional effects on the educational decision. The failure to take the full set of competency measures into account leads to a substantial underestimation of primary effects. Taking the cumulative effect of all competency indicators into account, we found 50 percent of the initially significant net-effects of the mothers’ education and 70 percent of the effects of their social class to be attributable to primary effects.
    Date: 2007–08–30
    URL: http://d.repec.org/n?u=RePEc:xrs:sfbmaa:07-60&r=ure
  7. By: BOURDEAU-LEPAGE, Lise (LEG - CNRS UMR 5118 - Université de Bourgogne); HURIOT, Jean-Marie (LEG - CNRS UMR 5118 - Université de Bourgogne); PERREUR, Jacky (LEG - CNRS UMR 5118 - Université de Bourgogne)
    Abstract: The major changes of economic space organization seem to cast doubt over the concept of centrality and its applications, especially at the city, citu network and global economy scales. Urban sprawl gives rise to a diffused or multiple centrality. Economic globalization reorganizes material and immaterial flows, and redistributes economic power to the advantage of global cities. A precise analysis of the terms "center" and "centrality" and of the phenomena they refer to permits to show that the classical patterns, if they are properly adapted, remain relevant at the urban scale, but that new centrality patterns are emerging at the world scale, on a reticular basis.
    Keywords: centrality, cities, networks, globalization
    Date: 2008–03
    URL: http://d.repec.org/n?u=RePEc:lat:legeco:2008-01&r=ure
  8. By: Binz, Hanna L.; Czarnitzki, Dirk
    Abstract: This study investigates how local milieus foster innovation success of firms. We complement the common practice of linking firm performance indicators to regional characteristics with survey evidence on the perceived importance of locational factors. While the former approach assumes that location characteristics affect all firms in the same way, the survey allows us to model firms judging the attractiveness of locations by a heterogeneous set of criteria. It turns out that the availability of highly skilled labor and the proximity to suppliers matters for firms’ innovation performance. Interestingly, location factors obtained from the survey provide a more accurate explanation on how local milieus facilitate innovation.
    Keywords: Innovation performance, R&D, location factors, Flanders
    JEL: O31 O38
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:7019&r=ure
  9. By: Belasen, Ariel R. (Saint Louis University); Polachek, Solomon (Binghamton University, New York)
    Abstract: This paper adopts a generalized-difference-in-difference (GDD) technique outlined in Ariel R. Belasen and Solomon W. Polachek (IZA Discussion Paper #2976) to examine the impact of hurricanes on the labor market. We find that earnings of the average worker in a Florida county rises over 4% within the first quarter of being hit by a major Category 4 or 5 hurricane relative to counties not hit, and rises about 1¼% for workers in Florida counties hit by less major Category 1-3 hurricanes. Concomitantly, employment falls between 1½ and 5% depending on hurricane strength. On the other hand, the effects of hurricanes on neighboring counties have the opposite effects, moving earnings down between 3 and 4% in the quarter the hurricane struck. To better examine the specific shocks, we also observe sectoral employment shifts. Finally, we conduct a time-series analysis and find that over time, there is somewhat of a cobweb with earnings and employment rising and falling each quarter over a two-year time period.
    Keywords: exogenous shock, difference-in-difference estimation, local labor market, earnings, employment, sectoral shifts
    JEL: J23 J49 Q54 R11
    Date: 2008–03
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp3407&r=ure
  10. By: Draca, Mirko (CEP, London School of Economics); Machin, Stephen (University College London); Witt, Robert (University of Surrey)
    Abstract: In this paper we study the causal impact of police on crime by looking at what happened to crime before and after the terror attacks that hit central London in July 2005. The attacks resulted in a large redeployment of police officers to central London boroughs as compared to outer London – in fact, police deployment in central London increased by over 30 percent in the six weeks following the July 7 bombings. During this time crime fell significantly in central relative to outer London. Study of the timing of the crime reductions and their magnitude, the types of crime which were more likely to be affected and a series of robustness tests looking at possible biases all make us confident that our research approach identifies a causal impact of police on crime. Implementing an instrumental variable approach shows an elasticity of crime with respect to police of approximately -0.3, so that a 10 percent increase in police activity reduces crime by around 3 percent.
    Keywords: crime, police, terror attacks
    JEL: H00 H5 K42
    Date: 2008–03
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp3410&r=ure
  11. By: Boppart, Timo (University of Zurich); Falkinger, Josef (University of Zurich); Grossmann, Volker (University of Fribourg); Woitek, Ulrich (University of Zurich); Wüthrich, Gabriela (University of Zurich)
    Abstract: This paper examines the role of religious denomination for human capital formation. We employ a unique data set which covers, inter alia, information on numerous measures of school inputs in 169 Swiss districts for the years 1871/72, 1881/82 and 1894/95, marks from pedagogical examinations of conscripts (1875-1903), and results from political referenda to capture conservative or progressive values in addition to the cultural characteristics language and religion. Catholic districts show on average significantly lower educational performance than Protestant districts. However, accounting for other sociocultural characteristics qualifies the role of religion for educational production. The evidence suggests that Catholicism is harmful only in a conservative milieu. We also exploit information on absenteeism of pupils from school to separate provision of schooling from use of schooling.
    Keywords: culture, educational production, plural identity, religious denomination, school inputs
    JEL: I20 H52 O10 N33
    Date: 2008–03
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp3408&r=ure
  12. By: Lewis, Maureen; Lockheed, Marlaine
    Abstract: Despite a sharp increase in the share of girls who enroll in, attend, and complete various levels of schooling, an educational gender gap remains in some countries. This paper argues that one explanation for this gender gap is the degree of social exclusion within these countries, as indicated by ethno-linguistic heterogeneity, which triggers both economic and psycho-social mechanisms to limit girls ' schooling. Ethno-linguistic heterogeneity initially was applied to explaining lagging economic growth, but has emerged in the literature more recently to explain both civil conflict and public goods. This paper is a first application of the concept to explain gender gaps in education. The paper discusses the importance of female education for economic and social development, reviews the evidence regarding gender and ethnic differences in schooling, reviews the theoretical perspectives of various social science disciplines that seek to explain such differences, and tests the relevance of ethnic and linguistic heterogeneity in explaining cross-country differences in school attainment and learning. The study indicates that within-country ethnic and linguistic heterogeneity partly explains both national female primary school completion rates and gender differences in these rates, but only explains average national learning outcomes when national income measures are excluded.
    Keywords: Primary Education,Education For All,Gender and Education,Population Policies,Disability
    Date: 2008–03–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:4562&r=ure

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