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on Urban and Real Estate Economics |
| By: | Carlos Garriga |
| Abstract: | This paper describes a quantitative model developed to account for the change in the level of house prices (boom-and-bust cycle) in Spain. The driving forces behind the housing boom are residential investment, immigration, current account deficits, and the elimination of land regulation. The model emphasizes the interaction of housing supply (determined by the existing stock of residential investment and new construction) with market demand. A calibrated version of the model for the Spanish economy replicates the key aggregate of the economy in 1995. The model predicts that a change in observed fundamentals can rationalize at least 84 percent of the recent boom in the value of housing capital. The model suggests that without large current account deficits and demographic changes the housing boom could have been much smaller. With respect to the housing bust, the model suggests that the combination of increasing mortgage rates, unemployment, and low productivity can have large effects in the value of housing capital. Some conservative predictions quantify adjustments that range between 24 and 29 percent. |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaddt:2010-09&r=ure |
| By: | Winters, John V |
| Abstract: | This paper uses the Schools and Staffing Survey to examine the determinants of teacher salaries in the U.S. using a spatial econometric framework. These determinants include teacher salaries in nearby districts, union activity in the district, union activity in neighboring districts, and other school district characteristics. The results confirm that salaries for both experienced and beginning teachers are positively affected by salaries in nearby districts. Investigations of the determinants of teacher salaries that ignore this spatial relationship are likely to be mis-specified. Including the effects of union activity in neighboring districts, the study also finds that union activity increases salaries for experienced teachers by as much as 18-28 percent but increases salaries for beginning teachers by a considerably smaller amount. |
| Keywords: | Teacher salaries; Teacher unions; Spatial econometrics |
| JEL: | J45 J50 |
| Date: | 2010–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:21202&r=ure |
| By: | Fingleton, Bernard |
| Abstract: | Prediction is difficult. In this paper we use panel data methods to make reasonably accurate short term ex-post predictions of house prices across 353 local authority areas in England. The issue of prediction over the longer term is also addressed, and a simple method that makes use of the dynamics embodied in New Economic geography theory is suggested as a possible way to approach the problem. |
| Keywords: | new economic geography; real estate prices; spatial econometrics; panel data; prediction. |
| JEL: | O18 R12 C31 C21 R31 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:21113&r=ure |
| By: | Gerdes, Christer (SOFI, Stockholm University) |
| Abstract: | Recent studies point to a positive correlation between ethnic heterogeneity due to immigration and the propensity of opting out from public schools for private alternatives. However, immigration across regions is hardly exogenous, which obstructs attempts to reveal causal mechanisms. This paper explores changes in the immigrant population in Danish municipalities 1992-2004, a period marked by a substantial influx of refugees, where a state-sponsored placement policy restricted their initial choice of residence. Besides such demographic changes, for more than hundred years Denmark has allowed parents to enroll their children into so called 'free schools', i.e. schools that are privately operated. Taken together, this provides a unique opportunity to determine if there has been 'native flight' from public schools to free schools. Results from this study indicate an increase in native Danes propensity to enroll their children in free schools as the share of children with immigrant background becomes larger in their municipality of residence. The effect is most pronounced in small and medium sized municipalities, while it seems absent in larger municipalities. One explanation for the latter holds that residential segregation within larger municipalities makes a choice of private alternatives less attractive. |
| Keywords: | school choice, immigration, private schools |
| JEL: | H7 I28 J15 J78 R5 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4788&r=ure |
| By: | Karsten Jeske; Zheng Liu |
| Abstract: | Housing is an important component of the consumption basket. Since both rental prices and goods prices are sticky, the literature suggests that optimal monetary policy should stabilize both types of prices, with the optimal weight on rental inflation proportional to the housing expenditure share. In a two-sector DSGE model with sticky rental prices and goods prices, however, we find that the optimal weight on rental inflation in the Taylor rule is small—much smaller than that implied by the housing expenditure share. Since production of housing services uses the stocks of housing intensively, large fluctuations in the price of housing stocks lead to large adjustments in reset rental prices. This weak strategic complementarity in rental price setting calls for a small optimal weight on rental price inflation. |
| Keywords: | Housing - Prices ; Monetary policy ; Inflation targeting |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedfwp:2010-05&r=ure |
| By: | Mancebón-Torrubia, María Jesús; Ximénez-de-Embún, Domingo Pérez |
| Abstract: | This study analyses the system of Spanish publicly-subsidised private schools from the perspective of its contribution to the equalisation of opportunities in school choice. The theoretical framework is based on the contributions of researchers into school choice policies, while the empirical application uses a 2005 questionnaire answered by the final-year secondary school students of the Spanish region of Aragon. We conclude that the system of Spanish publicly-subsidised private schools has not entirely facilitated the integration of students from different socioeconomic strata. A probit model is estimated in the last section in order to discover which factors determine the choice of a publicly-subsidised private school. It is found that the higher the socioeconomic status, the higher the probability of choosing such schools, suggesting that the segregation found in this paper may be caused partly by the choice patterns of Spanish families. |
| Keywords: | school choice; publicly-subsidised private schools; cream skimming |
| JEL: | I21 I28 H52 C25 H44 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:21164&r=ure |
| By: | Don J. Webber (Department of Business Economics, Auckland University of Technology and Department of Economics, UWE, Bristol); Stephanié Rossouw (Department of Business Economics, Auckland University of Technology and Department of Economics) |
| Abstract: | Most empirical investigations into economic vulnerability focus on the national level. Although some recent contributions investigate vulnerability from a sub-national perspective they contribute to the literature in an aspatial manner, as they do not explicitly account for the relative locations of areas and for the potential of spillovers between contiguous areas. This paper extends the current literature on a number of important fronts. First, we augment a principle components model to take explicit account of spatial autocorrelation and apply it to South African magisterial district level data. Second, by comparing spatial and aspatial models estimates, our empirical results illustrate the presence and importance of spatial spillovers in local vulnerability index estimates. Third, we augment the methodology on the vulnerability intervention index and present results which highlight areas that are performing better and worse than would be expected. After accounting for spatial spillovers, the results illustrate a clear urban-rural vulnerability divide. |
| Keywords: | Economic vulnerability; Environmental vulnerability; Governance vulnerability; Demographic vulnerability; Health vulnerability |
| JEL: | R11 C21 I31 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:uwe:wpaper:1004&r=ure |
| By: | Arnab Bhattacharjee; Sean Holly |
| Abstract: | Until recently, much effort has been devoted to the estimation of panel data regression models without adequate attention being paid to the drivers of diffusion and interaction across cross section and spatial units. We discuss some new methodologies in this emerging area and demonstrate their use in measurement and inferences on cross section and spatial interactions. Specifically, we highlight the important dis?tinction between spatial dependence driven by unobserved common factors and those based on a spatial weights matrix. We argue that, purely factor driven models of spatial dependence may be somewhat inadequate because of their connection with the exchangeability as?sumption. Limitations and potential enhancements of the existing methods are discussed, and several directions for new research are highlighted. |
| Keywords: | Cross Sectional and Spatial Dependence, Spatial Weights Matrix, Interactions and Diffusion, Monetary Policy Committee, Generalised Method of Moments. |
| JEL: | E42 E43 E50 E58 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:san:cdmawp:1003&r=ure |
| By: | Waldron, Matt (Bank of England); Zampolli, Fabrizio (Bank of England) |
| Abstract: | Household debt and house prices in the United Kingdom rose substantially between 1987 and 2006. In this paper we use a calibrated overlapping generations model of the household sector to examine the extent to which changes in demographics, lower inflation, and a lower long-run real interest rate may explain the build-up of debt and the rise in house prices over that period. Our model suggests that lower real interest rates were particularly important. If households expected lower real interest rates to persist, then the model can more than explain the rise in debt and can explain most of the rise in house prices. However, the model leaves a puzzle because it predicts that an unanticipated fall in real interest rates should lead to a consumption boom that did not materialise in the data. |
| Keywords: | Consumption; housing market; collateral constraints; life cycle; OLG |
| JEL: | E21 R31 |
| Date: | 2010–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:boe:boeewp:0379&r=ure |
| By: | Martha Prevezer; Pietro Panzarasa; Tore Opsahl |
| Abstract: | This study examines the spatial distribution and social structure of processes of learning and knowledge creation within the context of the inventor network connecting Chinese patent teams. Results uncover mixed tendencies toward both geographic co-location and dispersion arising from combined processes of intra-cluster learning and extra-cluster networking. These processes unfold within a social network that becomes less fragmented over time: as a giant component emerges and increases in size, social distances among inventors become longer. The interplay between geographic and network proximity is assessed against China’s institutional environment. Implications of the findings are discussed for regional development and policy-making. |
| Keywords: | clusters; knowledge transfer; social networks; patenting |
| JEL: | L11 M13 O53 R12 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:32&r=ure |
| By: | Concetta Rondinelli (Banca d'Italia); Giovanni F. Veronese (Banca d'Italia) |
| Abstract: | In this paper we focus on tenant rents in Italy and compare results from several methods for the rent dynamic estimation. We first document the sources of data available and then introduce quality-adjusted techniques, which enable us to separate the price variation due to qualitative changes in housing attributes from pure price changes. Finally, we compare these measures with unconditional and matched-type price indices derived from microdata. Over the period 1998-2006, we estimate a cumulative rent increase ranging between 40 and 80%. The upper bound refers to the average dynamic for a subset of flats entering the market in a given period. The hedonic approach suggests a substantially lower overall growth in tenant rent, around 40% for the same period. |
| Keywords: | Hedonic regressions, Matched-models, CPI, Downward bias |
| JEL: | C21 C43 C81 E31 R21 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_62_10&r=ure |
| By: | Mancebón-Torrubia, María-Jesús; Calero, Jorge; Choi, Álvaro; Ximénez-de-Embún, Domingo P. |
| Abstract: | The purpose of this paper is to compare the efficiency of the Spanish public and publicly-subsidised private high schools using Data Envelopment Analysis (DEA) fed by the results provided by a hierarchical linear model (HLM) applied to PISA-2006 (Programme for International Students Assessment) microdata. This study places special emphasis on the estimation of the determinants of school outcomes, the educational production function being estimated through an HLM that takes into account the nested nature of PISA data. Inefficiencies are then measured through the DEA and decomposed into managerial (related to individual performance) and programme (related to structural differences between management models), following Silva Portela and Thanassoulis (2001) approach. Once differences in pupils’ background and individual management inefficiencies have been eliminated, results reveal that Spanish public high schools are more efficient than publicly-subsidised private ones. |
| Keywords: | Efficiency; data envelopment analysis; secondary education; educational outcome; PISA |
| JEL: | I21 I28 I22 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:21165&r=ure |
| By: | Swagel, Phillip |
| Abstract: | This paper reviews the policy response to the 2007–09 financial crisis from the perspective of a senior Treasury official at the time. Government agencies faced severe constraints in addressing the crisis: lack of legal authority for potentially helpful financial stabilization measures, a Congress reluctant to grant such authority, and the need to act quickly in the midst of a market panic. Treasury officials recognized the dangers arising from mounting foreclosures and worked to facilitate limited mortgage modifications, but going further was politically unacceptable because public funds would have gone to some irresponsible borrowers. The suddenness of Bear Stearns’ collapse in March 2008 made rescue necessary and led to preparation of emergency options should conditions worsen. The Treasury saw Fannie Mae and Freddie Mac’s rescue that summer as necessary to calm markets, despite the moral hazard created. After Lehman Brothers failed in September, the Treasury genuinely intended to buy illiquid securities from troubled institutions but turned to capital injections as the crisis deepened. |
| Keywords: | financial crisis; Treasury Department; TARP; housing; foreclosures; Lehman Brothers |
| JEL: | E0 N2 |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:21104&r=ure |
| By: | Büttner, Bettina; Thomsen, Stephan L. |
| Abstract: | This paper analyzes the impact of shortening the duration of secondary schooling on the accumulation of human capital. In 2003, an educational policy reform was enacted in Saxony-Anhalt, a German state, providing a natural experimental setting. The thirteenth year of schooling was eliminated for those students currently attending the ninth grade. Tenth grade students were unaffected. The academic curriculum remained almost unaltered. Using primary data from the double cohort of Abitur graduates in 2007, significant negative effects were discovered for both genders in mathematics and for females only in English. The effects on literature were not statistically significant. -- |
| Keywords: | student performance,school duration,learning intensity,natural experiment |
| JEL: | I21 J18 C21 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10011&r=ure |
| By: | Bronisz, Urszula; Heijman, Wim |
| Abstract: | This article aims at presenting different approaches to the phenomenon of social capital. The concept of social capital is ambiguous and that is why we will highlight a number of definitions of this notion. The central attention of the paper focuses on the relationship between social capital and regional development and competitiveness. The fundamental question concerns the impact of social capital on the regional economic performance. Hence, we will survey the empirical examination of 16 Polish regions in terms of social capital. We will also study whether the regional level of social capital depends on the level of competitiveness. The purpose of this article is also to make a contribution to the discussion concerning the relationship between economic development and social capital. |
| Keywords: | Social capital, Regional growth, Polish regions, Community/Rural/Urban Development, International Development, Labor and Human Capital, |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ea113a:57395&r=ure |
| By: | Jan van der Borg (Department of Economics, University Of Venice Cà Foscari); Erwin van Tuijl (Erasmus University Rotterdam); Alessandro Costa (Sino-Italian Cooperation Program for Environmental Protection) |
| Abstract: | After reading Richard Florida’s work (e.g. Florida, 2003) on the creative industry and on the importance of the creative class for urban development in post-industrial economies, many cities in Europe and the USA have started to invest in creativity in general and in design in particular. Much less is known about the role of creativity in industrial economies. This paper analyses the role of design in the economic and social development of China’s political and cultural capital Beijing. We will try to identify the main success factors and barriers for the design business and show how design can be further used for social and economic development of the city. Backed up by conspicuous state investments and by fast decision making, industrial areas have been transformed and neighbourhoods have been revitalised, infrastructure has been upgraded, and some modern iconic landmarks are added to the collection of old monuments. Moreover, priority has changed from “Made in China” to “Create in China”, allowing economic activities to move upwards in the value chain. Nevertheless, and despite the presence of key research and art institutes, further developments of the design sector and the use of design in other (manufacturing) sectors will still be a huge challenge. |
| Keywords: | Creative Industry, Design, Urban Development, Industrial Economy, Beijing, China |
| JEL: | P21 R11 R30 R38 R53 Z11 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2010_03&r=ure |
| By: | Consoli, Davide; Vona , Francesco; Saarivirta, Toni |
| Abstract: | The recent history of Finland has been shaped by the rollercoaster of the 1990s when the economy went from deep recession to becoming among the most innovative and competitive within merely a decade. Economic recovery driven by the surge of ICT-related industries with the active support of the higher education system gave way also to growing inequalities among regions, especially within graduate workers. The paper elaborates an empirical analysis of the returns to education of a cohort entering the labour force between 1995 and 2005; our objective is to capture the extent of spatial and occupational determinants on income distribution as Finland slid from its most troubled to most prosperous times. |
| Keywords: | Regional Development; Earning Distribution; Education and Skills; Spatial Inequalities |
| JEL: | J31 E24 J24 O33 R11 |
| Date: | 2010–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:21072&r=ure |
| By: | Carmen CAMACHO (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)) |
| Abstract: | The benchmark of this paper is the Fujita and Thisse (2002) core-periphery model, which adds a R&D sector with skilled labor to create new varieties for the modern sector. The number of R&D firms increases not only with the number of existing patents and knowledge spillovers but also with the number of skilled workers who can migrate and choose theregion offering the better lifetime salary.The main objective of the present work is to analyse the long-term consequences of the choice of the migration law in Fujita and Thisse(2002)and in other comparable models. After describing throughoutly our benchmark,we introduce a different migration law ˆ la Krugman (1991).Although the change in the migration law implies that individuals do not foresee price changes and hence their choice is somehow less optimal, the steady state outcome does not vary qualitatively:the unique steady state is a symmetric distribution of labor across regions. Later we change the benchmark model to avoid the so called monotonic convergence hypothesis, about which we discuss at large in the paper. When we model the economy using Romer (1990) two sector model applied to two regions allowing for skilled migration, then there exists a solution path that converges to a steady state which exhibits a distribution of skilled workers amongst regions which is no longer symmetric. In effect, the new steady state depends on technology, fixed costs, knowledge spill-overs and transportation costs. |
| Keywords: | Economic geography,Spatial Dynamics, Migrations, Growth |
| Date: | 2010–02–15 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2010004&r=ure |
| By: | Arnab Bhattacharjee; Sean Holly |
| Abstract: | While much of the literature on cross section dependence has fo?cused mainly on estimation of the regression coefficients in the under?lying model, estimation and inferences on the magnitude and strength of spill-overs and interactions has been largely ignored. At the same time, such inferences are important in many applications, not least because they have structural interpretations and provide useful inter?pretation and structural explanation for the strength of any interac?tions. In this paper we propose GMM methods designed to uncover underlying (hidden) interactions in social networks and committees. Special attention is paid to the interval censored regression model. Our methods are applied to a study of committee decision making within the Bank of England¡¯s monetary policy committee. |
| Keywords: | Committee Decision Making, Social Networks, Cross Section and Spatial Interaction, Generalised Method of Moments, Censored Regression Model, Expectation-Maximisation Algorithm, Monetary Policy, Interest Rates. |
| JEL: | D71 D85 E43 E52 C31 C34 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:san:cdmawp:1004&r=ure |
| By: | Valter Di Giacinto (Bank of Italy) |
| Abstract: | Despite the fact that it provides a potentially useful analytical tool, allowing for the joint modeling of dynamic interdependencies within a group of connected areas, until lately the VAR approach had received little attention in regional science and spatial economic analysis. This paper aims to contribute in this field by dealing with the issues of parameter identification and estimation and of structural impulse response analysis. In particular, there is a discussion of the adaptation of the recursive identification scheme (which represents one of the more common approaches in the time series VAR literature) to a space-time environment. Parameter estimation is subsequently based on the Full Information Maximum Likelihood (FIML) method, a standard approach in structural VAR analysis. As a convenient tool to summarize the information conveyed by regional dynamic multipliers with a specific emphasis on the scope of spatial spillover effects, a synthetic space-time impulse response function (STIR) is introduced, portraying average effects as a function of displacement in time and space. Asymptotic confidence bands for the STIR estimates are also derived from bootstrap estimates of the standard errors. Finally, to provide a basic illustration of the methodology, the paper presents an application of a simple bivariate fiscal model fitted to data for Italian NUTS 2 regions. |
| Keywords: | structural VAR model, spatial econometrics, identification, space-time impulse response analysis |
| JEL: | C32 C33 R10 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_746_10&r=ure |
| By: | Prady, Delphine; Ullrich, Hannes |
| Abstract: | We analyze the expected effects of building a rail tunnel between Lyon and Turin on i) the market shares of the established and the new suppliers, and ii) consumer surplus. The prospective project consists of a 53km rail tunnel providing freight shippers with a new alpine path. We calibrate an equilibrium model where freight shippers choose a mode and alpine path to ship goods from a given origin to a given destination. Freight carriers strategically set prices for the differentiated products they supply. Deriving the market equilibrium, we simulate the entry of a quality-improved product and test its competitive viability. The prospective alpine path proves both competitive and welfare-enhancing on the regional market, loses its competitive edge on the wider North-South market, and leads to a modal shift on the West-East market. We argue that the new infrastructure is only one tool out of a global modal shift-oriented policy toolbox. -- |
| Keywords: | Transalpine freight,New rail infrastructure,Simulation model,Competition |
| JEL: | R41 L92 H54 L13 C63 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10010&r=ure |
| By: | Stijn Broeke (Department of Economics, Royal Holloway) |
| Abstract: | I estimate the effects of an education policy (Triple Science) in England aimed at increasing the take-up and attainment of young people in science subjects. I identify the effect of the policy by comparing two adjacent cohorts of pupils in schools that offer Triple Science to one cohort, but not to the other. I find some large and significant effects on later subject choice and attainment, and these appear to be particularly strong for boys and pupils from more deprived backgrounds. |
| Keywords: | triple science, subject choice, attainment |
| JEL: | I20 I21 I28 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:hol:holodi:1001&r=ure |
| By: | Rachel LEVY (LEREPS); Damien TALBOT (GREThA UMR CNRS 5113) |
| Abstract: | The objective of this paper is to determine how the proximity in its various dimensions (geographical and organisational in particular) supports the relations of control between actors. Based on an empirical analysis of the network of collaboration of the competitiveness cluster Aerospace Valley, we propose indicators allowing to clarify this control. This analysis enables us to identify the actors in position to exert this control in the cluster. By using centrality indicators of the actors within the network, we could observe the position of control of certain establishments and groups in the cluster. We show that the historically central actors preserve the control of the relations within the cluster, characterized by a geographical proximity between the partners. We also show that major suppliers, such as Safran or Thales, exert a control more targeted through a strategic management of the collaborations portfolio of their establishments. Lastly, the public laboratories and the universities occupy a place of intermediary in the network of innovation. |
| Keywords: | proximities, control, competitiveness cluster, network, aeronautics |
| JEL: | L14 R38 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2010-08&r=ure |
| By: | Lorenzo Masiero (Istituto Ricerche Economiche (IRE), Università della Svizzera Italiana, Svizzera); Rico Maggi (Istituto Ricerche Economiche (IRE), Università della Svizzera Italiana, Svizzera) |
| Abstract: | Infrastructure vulnerability is a topic of rising interest in the scientific literature for both the general increase of unexpected events and the strategic importance of certain links. Protective investments are extremely costly and risks are distributed in space and time which poses important decision problems to the public sector decision makers. In an economic prospective, the evaluation of infrastructure vulnerability is oriented on the estimation of direct and indirect costs of hazards. Although the estimation of direct costs is straightforward, the evaluation of indirect cost involves factors non-directly observable making the approximation a difficult issue. This paper provides an estimate of the indirect costs caused by a two weeks closure of the north-south Gotthard road corridor, one of the most important infrastructure links in Europe, and implements a cost-benefit analysis tool that allows the evaluation of measures ensuring a full protection along the corridor. The identification of the indirect cost relies on the generalized cost estimation, which parameters come from two stated preference experiments, the first based on actual condition whereas the second assumes a road closure. The procedure outlined in this paper proposes a methodology aimed to identify and quantify the economic vulnerability associated with a road transport infrastructure and, to evaluate the economic and social efficiency of a vulnerability reduction by the consideration of protective measures. |
| Keywords: | infrastructure vulnerability, choice experiment, cost-benefit analysis, freight transport |
| JEL: | C25 L91 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:lug:wpaper:1003&r=ure |
| By: | Nishimura, Junichi; Okamuro, Hiroyuki |
| Abstract: | Subsidy and networking: The effects of direct and indirect support programs in the cluster policy Industrial clusters have attracted considerable attention worldwide for regional innovation. Thus, policymakers in various countries have recently developed their specific cluster policies. However, there are few empirical studies yet on cluster policies. This paper empirically evaluates the “Industrial Cluster Project” (ICP) initiated by the Ministry of Economy, Trade and Industry (METI) in 2001, using original questionnaire data. We address two research questions on the effect of the ICP: if the participants of this project that exploit various support programs are more successful in alliance/network formation within the cluster than the others, and which kind of support program of the ICP contributes to firm performance. Different from similar preceding projects, the ICP aims at the autonomous development of regional industries and comprises both direct R&D support and indirect networking/coordination support. The main idea of public support of local firms clearly shifted toward networking and coordination for those who can help themselves. Thus, our special attention is paid to the differences between the direct R&D support and indirect networking/coordination support, which bring out the conditions necessary for the effective organization of cluster policies for improving firm performance. Our empirical evaluation is based on a sample of 511 firms from a recent original survey. We first employ the propensity score and the difference-in-differences (DID) estimation to analyze the degree of alliance/network formation before and after participating in the ICP. Then we use Heckman’s two-step procedure and the negative binomial model to examine the effects of support programs on firm performance. The estimation results suggest that cluster participants that exploit support programs (especially indirect support measures) expand industry-university-government network after participating in the ICP. Moreover, we find that not every support program contributes to firm performance, thus firms should select the most effective program according to their aims. Indirect support programs have an extensive and strong impact on outputs, especially innovation outcomes, while direct R&D support has a weak effect except for R&D subsidy. |
| Keywords: | Cluster policy, industrial cluster, R&D support, subsidy, networking |
| JEL: | O25 O38 R11 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:hit:ccesdp:24&r=ure |
| By: | Sauro Mocetti (Bank of Italy); Carmine Porello (Financial Attaché - Beijing) |
| Abstract: | The paper provides an analysis of labour mobility in Italy, with a joint analysis of residence transfers and "long-range†commuting. In the period 1990-2005, migration inflows have increased in the Centre North, both in short- and long-range component. In the South, by contrast, the low short-range mobility has decreased further, while the emigration toward the North remained significant; moreover, the high-educated outflows have increased significantly. The empirical findings show that South-North migration continues to be driven by the large economic differentials between the two areas. In the second half of the nineties, the widening gap on the employment rate, the downsizing of the public sector and the reduction of the gap on house prices have prompted a growing number of people to emigrate. In the current decade the strong growth of house prices in the Centre North has contributed to reduce the phenomenon. The spread of temporary contracts and immigration from abroad have also affected the migration propensity of natives and structurally changed the nature of mobility. |
| Keywords: | internal migration, commuting |
| JEL: | J61 O15 R23 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_61_10&r=ure |
| By: | Lorenzo Masiero (Istituto Ricerche Economiche (IRE), Università della Svizzera Italiana, Svizzera); David A. Hensher (Institute of Transport and Logistics Studies (ITLS), The University of Sydney, Australia) |
| Abstract: | Choice behaviour might be determined by asymmetric preferences whether the consumers are faced with gains or losses. This paper investigates loss aversion and diminishing sensitivity, and analyzes their implications on willingness to pay and willingness to accept measures in a reference pivoted choice experiment in a freight transport framework. The results suggest a significant model fit improvement when preferences are treated as asymmetric, proving both loss aversion and diminishing sensitivity. The implications on willingness to pay and willingness to accept indicators are particular relevant showing a remarkable difference between symmetric and asymmetric model specifications. Not accounting for loss aversion and diminishing sensitivity, when present, produces misleading results and might affect significantly the policy decisions. |
| Keywords: | freight transport, choice experiments, willingness to pay, preference asymmetry |
| JEL: | C25 L91 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:lug:wpaper:1004&r=ure |
| By: | Micklewright, John (Institute of Education, University of London); Schnepf, Sylke V. (University of Southampton); Skinner, Chris (University of Southampton) |
| Abstract: | We analyse response patterns to an important survey of school children, exploiting rich auxiliary information on respondents' and non-respondents' cognitive ability that is correlated both with response and the learning achievement that the survey aims to measure. The survey is the Programme for International Student Assessment (PISA), which sets response thresholds in an attempt to control data quality. We analyse the case of England for 2000 when response rates were deemed high enough by the PISA organisers to publish the results, and 2003, when response rates were a little lower and deemed of sufficient concern for the results not to be published. We construct weights that account for the pattern of non-response using two methods, propensity scores and the GREG estimator. There is clear evidence of biases, but there is no indication that the slightly higher response rates in 2000 were associated with higher quality data. This underlines the danger of using response rate thresholds as a guide to data quality. |
| Keywords: | non-response, bias, school survey, data linkage, PISA |
| JEL: | I21 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4789&r=ure |
| By: | Dohmen Thomas; Falk Armin (ROA rm) |
| Abstract: | We analyse worker self-selection with a special focus on teachers. The point of the paper is that worker composition is generally endogenous, due to worker self-selection. In a first step we analyse lab experimental data to provide causal evidence on particular sorting patterns. This evidence sets the stage for our field data analysis, which focuses specifically on selection patterns of teachers. We find that teachers are more risk averse than employees in other professions, which indicates that relatively risk averse individuals sort into teaching occupations under the current system. Using survey measures on trust and reciprocity we also find that teachers trust more and are less negatively reciprocal than other employees. Finally, we establish differences in personality based on the Big Five concept. |
| Keywords: | education, training and the labour market; |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:umaror:2010002&r=ure |
| By: | Fernando Albornoz; Antonio Cabrales |
| Abstract: | We study the dynamic support for fiscal decentralization in a political agency model from the perspective of a region. We show that corruption opportunities are lower under centralization at each period of time. However, centralization makes more difficult for citizens to detect corrupt incumbents. Thus, corruption is easier under centralization for low levels of political competition. We show that the relative advantage of centralization depends negatively on the quality of the local political class, but it is greater if the center and the region are subject to similar government productivity shocks. When we endogenize the quality of local politicians, we establish a positive link between the development of the private sector and the support for decentralization. Since political support to centralization evolves over time, driven either by economic/political development or by exogenous changes in preferences over public good consumption, it is possible that voters are (rationally) discontent about it. Also, preferences of voters and the politicians about centralization can diverge when political competition is weak. |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaddt:2010-02&r=ure |
| By: | Seth R. Gitter (Department of Economics, Towson University); Thomas Rhoads (Department of Economics, Towson University) |
| Abstract: | The established literature shows that new stadium construction for major league baseball (MLB) teams can increase attendance, but there are limited studies at the minor league level. We use a data set encompassing all A, AA, and AAA minor league baseball teams from 1992 to 2006 to estimate the impact of stadium construction on minor league attendance. This data set includes almost 200 teams, over half of which constructed a new stadium during the 15-year observation period. Over a ten year period our results show that new stadiums increase attendance by 1.2 million fans at the AAA level, 0.4 million at the AA and high A level, and 0.2 million at short season low A. Additionally, we find evidence that minor and major league baseball are potentially substitutes as increased ticket prices for the nearest MLB team lead to higher minor league attendance. However, a new stadium for local MLB teams does not seem to negatively impact minor league attendance. |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:tow:wpaper:2010-06&r=ure |
| By: | Barbara Despiney (Centre d'Economie de la Sorbonne); Waldemar Karpa (Ecole Nationale Supérieure de Techniques Avancées ParisTech) |
| Abstract: | In 2007 Poland and Ukraine were awarded by UEFA to co-host the 2012 European Football Championships. This first "mega-event" to take place in the transition countries is commonly intended to yield large and lasting economic bebefits to the host cities. This point of view is rarely shared by economists, who are aware of misuse of economic impact estimates. In this paper, we modify the Keynesian-style multiplier model to investigate the effects of Euro 2012-related spending on local economies. Our goal is two-fold : on the one hand, we can easily investigate the impact on each demand component, on the other hand, we wish to calculate the magnitudes of these multipliers in order to judge the credibility of potential regional welfare benefits. This analysis is strenghtened by taking into account the regional supply constraints. Our study also reviews the existent body of work on mega-sporting events and our results are in line with those researches who argue that the true economic impact of these competitions is overestimated by a large margin. Finally, we stress the organizational and institutional dimension of hosting a "mega-event" by the transition and developing countries that are constantly struggled to tackle the colossal tasks of upgrading stadiums and modernizing airports, rail and road networks and hotels. |
| Keywords: | Economic impact, sports, sport economics, mega-events. |
| JEL: | L83 R13 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:10006&r=ure |
| By: | Barbara Despiney (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I); Waldemar Karpa (ENSTA - Ecole Nationale Supérieure de Techniques Avancées ParisTech) |
| Abstract: | In 2007 Poland and Ukraine were awarded by UEFA to co-host the 2012 European Football Championships. This first "mega-event" to take place in the transition countries is commonly intended to yield large and lasting economic bebefits to the host cities. This point of view is rarely shared by economists, who are aware of misuse of economic impact estimates. In this paper, we modify the Keynesian-style multiplier model to investigate the effects of Euro 2012-related spending on local economies. Our goal is two-fold : on the one hand, we can easily investigate the impact on each demand component, on the other hand, we wish to calculate the magnitudes of these multipliers in order to judge the credibility of potential regional welfare benefits. This analysis is strenghtened by taking into account the regional supply constraints. Our study also reviews the existent body of work on mega-sporting events and our results are in line with those researches who argue that the true economic impact of these competitions is overestimated by a large margin. Finally, we stress the organizational and institutional dimension of hosting a "mega-event" by the transition and developing countries that are constantly struggled to tackle the colossal tasks of upgrading stadiums and modernizing airports, rail and road networks and hotels. |
| Keywords: | Transition, sport economics, Economic impact, mega-events. |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00461458_v1&r=ure |
| By: | Kenneth P. Brevoort; John A. Holmes; John D. Wolken |
| Abstract: | In a seminal article on small business lending, Petersen & Rajan (2002) argue that technological changes have revolutionized small business lending markets, weakening the reliance of small businesses on local lenders and increasing geographic distances between firms and their credit suppliers. While their data only cover through 1993, they conjecture that the pace of change accelerated after 1993. Using the 1993, 1998, and 2003 Surveys of Small Business Finances (SSBFs), we test whether the distance changes identified by Petersen and Rajan continued or accelerated during the following decade. Using a novel application of Oaxaca-Blinder decomposition, we identify the extent to which specific observable characteristics are associated with distance changes and draw three conclusions. First, while distances increased between 1993 and 1998 at a faster rate than found by Petersen & Rajan, distance increases appear to have halted or possibly reversed between 1998 and 2003. Second, rather than increasing proportionally for all small firms, distance increases were uneven across firms over the decade, with higher credit quality firms and firms with more experienced ownership realizing greater gains in distance than other firms. Finally, distances increased faster at older firms and, regardless of firm age, increases in distance have only affected some product types, primarily those involving asset-back loans (including mortgages). For relationships that involved the provision of either lines of credit or multiple types of credit, distances increased very little or not at all during the decade. This analysis provides a detailed and nuanced view of how the market for small business credit has evolved during a period of rapid technological change. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2010-08&r=ure |
| By: | Agatz, N.A.H.; Erera, A.; Savelsbergh, M.W.P.; Wang, X. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | Ride-share systems, which aim to bring together travelers with similar itineraries and time schedules, may provide significant societal and environmental benefits by reducing the number of cars used for personal travel and improving the utilization of available seat capacity. Effective and efficient optimization technology that matches drivers and riders in real-time is one of the necessary components for a successful ride-share system. We formally define dynamic ride-sharing and outline the optimization challenges that arise when developing technology to support ride-sharing. We hope that this paper will encourage more research by the transportation science and logistics community in this exciting, emerging area of public transportation. |
| Keywords: | ride-sharing;dynamic;passenger transportation;carpool;sustainability |
| Date: | 2010–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:1765018429&r=ure |