|
on Urban and Real Estate Economics |
| By: | Alex Chernoff; Andrea Craig |
| Abstract: | In this paper, we estimate the effect on housing prices of the expansion of the Vancouver SkyTrain rapid transit network during the period 2001–11. We extend the canonical residential sorting equilibrium framework to include commuting time in the household utility function. We estimate household preferences in the sorting model using confidential micro data and geographic information systems (GIS) data on the SkyTrain network. Using these preference estimates and observed data for 2001, we simulate the equilibrium effects of expanding the SkyTrain. In our counterfactual analysis, the SkyTrain expansion increases housing prices not only in neighborhoods where the expansion occurred, but also in those with access to pre-existing segments of the network. We show how these network housing price effects depend on household commuting patterns, and discuss the implications of our results for targeted taxation policies designed to capture the housing price appreciation stemming from a public transit investment. |
| Keywords: | Asset Pricing, Economic models, Housing |
| JEL: | H41 R21 R41 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:18-18&r=ure |
| By: | Mo Zheng |
| Abstract: | Many published indexes in North American and Europe are based on mean or median prices, or applied repeat-sale method for less requirements of characteristic related information on properties. But each house is unique. It is critical that the differences among properties could be captured in the house price indexes in the timely and comparable way. This paper constructed daily apartment price indices for entire Sweden and 3 major cities - Stockholm, Gothenburg, and Malmö. We applied hedonic regressions on a unique cross-sectional time series database of over 1 million apartment transactions in Sweden from January 2005 to May 2015. Our newly constructed daily indexes compared time dummy variable approach, characteristics prices approach and the imputations approach. We tested spatial dependence, and performed spatial econometrics models for regional comparison among major cities. |
| Keywords: | cross-sectional analysis; GARCH; Hedonic regression; Housing Index; Time Series |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_376&r=ure |
| By: | Paramita Sinha; Martha Caulkins; Maureen Cropper |
| Abstract: | Amenities that vary across cities are typically valued using either a hedonic model, in which amenities are capitalized into wages and housing prices, or a discrete model of household location choice. In this paper, we use the 2000 Public Use Microdata Sample (PUMS) to value climate amenities using both methods. We compare estimates of marginal willingness to pay (MWTP), first assuming homogeneous tastes for climate amenities and then allowing preferences for climate amenities to vary by location. We find that mean MWTP for warmer winters is about four times larger using the discrete choice approach than with the hedonic approach; mean MWTP for cooler summers is twice as large. The two approaches also differ in their estimates of taste sorting. The discrete choice model implies that households with the highest MWTP for warmer winters locate in cities with the mildest winters, while the hedonic model does not. Differences in estimates are due to three factors: (1) the discrete choice model incorporates the psychological costs of moving from one’s birthplace, which the hedonic models do not; (2) the discrete choice model allows for city-specific labor and housing markets, rather than assuming a national market; (3) the discrete choice model uses information on market shares (i.e., population) in estimating parameters, which the hedonic model does not. |
| Keywords: | amenity valuation, location choice, hedonic models, value of climate |
| JEL: | Q51 Q54 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201804&r=ure |
| By: | Michele Loberto (Bank of Italy); Andrea Luciani (Bank of Italy); Marco Pangallo (University of Oxford) |
| Abstract: | We present a new dataset of housing sales advertisements (ads) taken from Immobiliare.it, a popular online portal for real estate services in Italy. This dataset fills a big gap in Italian housing market statistics, namely the absence of detailed physical characteristics for houses sold. The granularity of online data also makes possible timely analyses at a very detailed geographical level. We first address the main problem of the dataset, i.e. the mismatch between ads and actual housing units - agencies have incentives for posting multiple ads for the same unit. We correct this distortion by using machine learning tools and provide evidence about its quantitative relevance. We then show that the information from this dataset is consistent with existing official statistical sources. Finally, we present some unique applications for these data. For example, we provide first evidence at the Italian level that online interest in a particular area is a leading indicator of prices. Our work is a concrete example of the potential of large user-generated online databases for institutional applications. |
| Keywords: | big data, machine learning, housing market |
| JEL: | C44 C81 R31 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1171_18&r=ure |
| By: | Masuda, Kazuya; Yamauchi, Chikako |
| Abstract: | This paper evaluates how the abolition of fees for public secondary education affects the access, sorting and achievement of students when it is accompanied by the Public-Private Partnership (PPP) scheme. In 2007, Uganda introduced the Universal Secondary Education policy, which solicited the participation of private schools to offer fee-free education by receiving public assistance. This has created (1) public schools (fee-free for all), (2) PPP private schools (accepting both fee-free and fee-paying students) and (3) private schools. We investigate the sorting across these types of schools, and further assess the impact on achievement, student composition, and learning environments by the type. In order to identify the effects of the policy, we utilize the across-cohort discontinuity in exposure to the program and across-district variation in the program intensity based on the pre-existing transition and retention rates. Our results suggest that the program increased the overall number of the students taking the secondary school exit exam by 16% in the median intensity district, the private school entry. It was not accompanied by a change in test scores, though learning environments worsened. Across the subsectors, the PPP and private schools experienced particularly large gains in the test scores. Our findings suggest that fee elimination can improve the access to secondary education with few negative effects on learning, and that PPP can provide one of the cost-effective means for financing it. |
| Keywords: | Post-primary education, Uganda, Access, Learning Achievement, Fee-free schooling program, Africa |
| JEL: | J13 J12 D10 O10 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hitcei:2018-4&r=ure |
| By: | Tom Gillespie (Socio-Economic Marine Research Unit, Whitaker Institute, NUI Galway); Stephen Hynes (Socio-Economic Marine Research Unit, Whitaker Institute, NUI Galway); Ronan C Lyons (Department of Economics, Trinity College Dublin) |
| Abstract: | As the world continues to urbanise, understanding housing market preferences can help planners accommodate the growth of cities. Housing is a bundle of both structural attributes and locational amenities, with “blue space” coastal amenities including both aesthetic (picture) and recreational (playground) services. We examine the effect of these different “blue space” coastal amenities, using both a novel measure of views, suitable for large datasets, and a dataset of almost 500,000 real estate listings, covering both sale and rental markets in Ireland for the period 2006-2017. We find that proximity to beaches and similar shorelines is rewarded in both sale and rental markets, as is the breadth and depth of sea-views. There is no evidence that urban sale or rental price premiums are larger (or smaller) than rural ones. However, there is clear evidence that sale price premiums are typically larger than their rental equivalents. In addition, sale price premiums are larger in times of falling prices, a finding consistent with “property ladder” effects in tighter markets. |
| Keywords: | Hedonic House Price Model, Coastal Valuation, Market Cycles, Urban Planning, Blue Flag Beach |
| JEL: | Q5 R21 R31 R58 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:tcd:tcduee:tep0518&r=ure |
| By: | Vlachos, Jonas (Dept. of Economics, Stockholm University) |
| Abstract: | In Sweden, a trust-based system of school performance evaluation meets a market oriented school system with liberal entry conditions to voucher-funded private providers, several of which are for- profit corporations. National tests are administered but these are graded at the local school level and what ultimately matters to students are teacher-set grades. In relation to the achievement on national tests, privately run free schools systematically set higher grades than public schools. The differences between municipal and free schools are larger when more reliable tests are used to control for achievement. To some extent, the differences in grading standards can be accounted for by location and student demographics, but the differences between public and private providers remain substantial even after taking such factors into consideration. In particular, the grade-setting among schools that belong to two large corporate providers appear generous. The results indicate that different providers do not necessarily respond symmetrically when faced with similar market conditions and act under the same regulatory regime. |
| Keywords: | Private provision of public services; School performance evaluation; School vouchers |
| JEL: | H44 I28 L51 |
| Date: | 2018–05–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sunrpe:2018_0001&r=ure |
| By: | Thierry Mayer (Département d'économie); Florian Mayneris (Institut de recherches économiques et sociales); Loriane Py (Centre de recherche de la Banque de France) |
| Abstract: | In this article, we study the impact of a French enterprise zone program—the ‘Zones Franches Urbaines’ (ZFUs) policy—on establishment location decisions and on labor market outcomes. Our main identification strategy, which combines spatial and time differencing, shows that conditional on locating in a municipality that hosts a ZFU, the policy has a positive and sizable impact on the probability to locate in the ZFU part rather than in the non-ZFU part of municipalities. However, the impact is highly heterogeneous across zones, industries and firms. We also show that this positive effect is entirely due to within-municipality diversion effects. Regarding labor market outcomes, the policy has a positive effect on employment, especially for low-wage workers. As for wages, the effect is null for low-wage workers, and negative for high-wage ones. |
| Keywords: | Firm location; Enterprise zones; Employment; Wages; Spatial differencing |
| JEL: | R12 R38 R58 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/125h4fg7e89gi95ui3ml6ggod9&r=ure |
| By: | Jean Patrick Mfoulou Olugu (Université de Yaoundé II); Jean Patrick; Mfoulou Olugu |
| Abstract: | The objective of this chapter is to assess the relationship between urban form, mobility behavior, and dysfunction of transport supply in a large African city with high urban growth like Yaoundé in Cameroon. Specifically, the chapter aims at assessing the influence of urban, mobility, and socioeconomic characteristics of an origin area on the mobility choice of individuals. Using field data collected by the urban community of Yaoundé in 2010 and statistical tools such as multinomial logits, results show that urban form characteristics, such as human and establishment densities, accessibility, and origin-destination distances influence the choices of individual mobility. The urban form of major cities in Africa, due to a very high urban growth uncontrolled by the local authorities, plays a negative role on the operations of urban transport service in Africa because it promotes an artisanal supply characterized by a low capacity and reduces the efficiency and competitiveness of mass public transportation, which is cheaper. Based on results of this study, recommendations are: controlling urban sprawl, easing of accessibility to public transport, and developing an efficient and competitive mass transportation. |
| Keywords: | urban form,urban mobility,transport supply,agglomeration in Africa,Yaoundé |
| Date: | 2017–04–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01773468&r=ure |
| By: | Seow Eng Ong; Calvin Chau; Jianmei Wu |
| Abstract: | The Downtown Line was announced on 3 July 2009 providing a much needed mass rapid transit from the central part of Singapore to downtown CBD. This study studies the economic value of Downtown Line on property prices along Bukit Timah and Dunearn Road (prime residential areas) using a difference-in-difference approach. We seek to valide the premium for residential units located within walking distance of public rail network, as well as provide an added dimension on the Singapore's housing prices with proximity to a rail network, with an up-to-date look on the latest network addition. The policy implications, such as government intervention on the densification efforts surrounding stations located away from downtown, will be examined. |
| Keywords: | Accessibility; proximity; residential values; train lines; transport network |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_52&r=ure |
| By: | Justyna Tanas |
| Abstract: | After the system transformation in Poland, the development of land’s market for single-family housing in the suburban areas of large agglomerations has increased significantly. This is strongly related to suburbanization proces and connected with the intensified migration of people from the main cities. As a result, it increases of car’s traffic, which significantly extend the time of travel to the city center of Poznan. The aim of this paper is to estimate the impact of proximity to railway stations on the prices of land designated for single-family housing in Poznan’ suburban area. In order to estimate the impat of proximity to railway stations on the prices of land designated for single-family housing the hedonic methods were used. The analysis covers the years from 2010 to 2014. |
| Keywords: | Housing Market; Property Value; railway |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_248&r=ure |
| By: | Karolina Czechowska; Konrad Zelazowski |
| Abstract: | The functioning of housing sector is determined by a number of factors, among which particularly important is system for financing housing investments. Traditionally mortgage loan is one of the main instruments of housing finance. Empirical studies emphasize that the developed mortgage lending market has a positive effect on the housing conditions of households and also induces growth in the area of housing construction and housing resources. However, an excessive increase in the scale of mortgage lending can be a source of instability in the real estate market and the banking sector. The aim of this article is to empirically analyse the course of credit cycles and housing price cycles in selected European economies, as well as the assessment of the degree of cycles interdependence and synchronisation. |
| Keywords: | credit cycles; house price cycles; Housing Finance; synchronisation of economic cycles |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_254&r=ure |
| By: | Felipe Carozzi |
| Abstract: | Several governments throughout the world apply policies aimed to re-mediate and recover vacant or idle land for other uses. This paper provides estimates of the price sensitivity of redevelopment, a crucial parameter for the success of these policies. My cross-sectional estimates measure how prices affect long-run conversion of unused or underused previously developed land in England. In order to solve the classical problem in the estimation of supply elasticities from market outcomes, I exploit school quality information and school admission boundaries to obtain a demand-shifter that is orthogonal to re-development costs. Estimation is conducted using a boundary discontinuity design based on this instrument. Results show that the probability of re-development is effectively sensitive to housing prices. Estimates indicate that a 1% increase in housing prices leads to a 0.07 percentage point reduction in the fraction of hectares containing brownfield land. Back-of-the envelope calculations using these estimates suggest that a large increase of 21% in prices across locations, or an equivalent subsidy, would be required to eliminate most of these vacant or underused land plots. |
| Keywords: | re-development, supply elasticity, brownfields |
| JEL: | R14 R31 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1549&r=ure |
| By: | Prichard, Wilson; van den Boogaard, Vanessa |
| Abstract: | This article provides a ground-level view of market taxation in two local government areas in Ghana’s relatively disadvantaged northern region. It describes a system shaped by informal practices that are grounded in social relationships and collective norms, which sometimes foster greater equity and in other cases serve to reinforce existing inequalities. The evidence suggests the need for a more nuanced understanding of the highly informal and socially embedded realities of local tax collection, and the possibility that improved outcomes could be achieved by “working with the grain†of these inescapable local realities, while seeking to minimize potential costs of informality. |
| Keywords: | Governance, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:idq:ictduk:13742&r=ure |
| By: | Gunning, Jan Willem; Krishnan, Pramila; Mengistu, Andualem Telaye |
| Abstract: | The lack of market development in remote areas is usually measured by spatial variation in prices for a given set of consumer goods. We focus instead on the way distance constrains the choices consumers can make. We construct a model of monopolistic competition between traders moving goods from market towns to rural areas. An increase in transport costs reduces consumer welfare not only through lower incomes for farm households and higher prices for manufactures but also through reduced availability of manufactures: choice fades with distance. The model allows for heterogeneity of villages in terms of market size and the distribution of income. We test the model using data from a purpose-designed survey of shops and consumers in rural villages in Ethiopia. Falling transport costs, larger market size and higher inequality dramatically raise variety of items and brands available locally. We use data on prices of matched source and destination goods to estimate similar tastes for variety across space and estimate an average markup of 10-15 percent. We use these results to estimate the welfare costs of falling variety at between 5-7 percent of expenditures on manufactured consumer goods. Our results suggest ignoring the costs of lower variety in remote places will mean that the level of poverty is underestimated while the rate at which poverty declines is underestimated as well. |
| JEL: | F14 R12 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12910&r=ure |
| By: | Christian Dustmann (University College London and Centre for Research and Analysis of Migration (CReAM)); Rasmus Landersø (Rockwool Foundation Research Unit) |
| Abstract: | This paper studies whether an exogenous reduction in the criminal activity of one individual lowers crimes committed by other young men who live in the immediate neighborhood. Using the randomness of a child's gender, we first show that men who father their first child at a very young age are convicted of significantly fewer crimes in the first years after the birth if the child is a son rather than a daughter. We next show that this leads to behavioral spillovers that significantly reduce criminal convictions among other young men living in the same neighborhood as the father at the child's birth, as well as victimization rates, for at least five years after birth. Evaluating our estimates within a structural model shows that spillovers in crime generate crime multipliers that continue to increase even after the primary impact of the initial shock on the focal individual has dissipated. From the model we further illustrate that crime prevention policies that target high crime individuals at an early stage of their lives are likely to lead to far larger reductions in the cost of crime than suggested by the primary effects alone. |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1805&r=ure |
| By: | Kirchmaier, Tom (London School of Economics); Machin, Stephen (London School of Economics); Sandi, Matteo (University of Sussex); Witt, Robert (University of Surrey) |
| Abstract: | In many historical episodes, the extent of criminal activity has displayed booms and busts. One very clear example is the case of metal crime, where in the face of big increases in value driven by world commodity prices, the incidence of metal thefts in the UK (and elsewhere) rose very sharply in the 2000s. Early in the current decade, they fell sharply again. This paper studies the roles of prices, policing and policy in explaining these crime dynamics. The empirical analysis shows sizeable and significant metal crime-price elasticities, in line with the idea that changing economic returns do shape crime. However, the rapid upward and downward trends are not only due to price changes. Their temporal evolution is also explained by changes in policing and policy. On the former, a difference-in-differences approach is used to document an important role of policing as a consequence of an anti-metal crime operation introduced in 2012. On the latter, the introduction of the Scrap Metal Dealers Act 2013 is exploited to study the impact of policy on the economic activity of scrap metal dealers in England and Wales. Results from our difference-in-differences specification suggest that the tougher regulatory system introduced by the policy hindered the economic activity of pre-existing dealers, reflecting the reduced market size for potential metal criminals to sell what they have stolen. |
| Keywords: | metal crime, metal prices, commodity prices |
| JEL: | K42 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11490&r=ure |
| By: | Harbrecht, Alexander; McKenna, Russell; Fischer, David; Fichtner, Wolf |
| Abstract: | This paper presents a stochastic bottom-up model to assess electric vehicles' (EV) impact on load profiles at different parking locations as well as their load management potential assuming different charging strategies. The central innovation lies in the consideration of socio-economic, technical and spatial factors, all of which influence charging behavior and location. Based on a detailed statistical analysis of a large dataset on German mobility, the most statistically significant influencing factors on residential charging behavior could be identified. Whilst household type and economic status are the most important factors for the number of cars per household, the driver's occupation has the strongest influence on the first departure time and parking time whilst at work. An inhomogeneous Markov-chain is used to sample a sequence of destinations of each car trip, depending (amongst other factors) on the occupation of the driver, the weekday and the time of the day. Probability distributions for the driven kilometres, driving durations and parking durations are used to derive times and electricity demand. The probability distributions are retrieved from a national mobility dataset of 70,000 car trips and filtered for a set of socio-economic and demographic factors. Individual charging behaviour is included in the model using a logistic function accounting for the sensitivity of the driver towards (low) battery SOC. The presented model is validated with this mobility dataset and shown to have a deviation in key household mobility characteristics of just a few percentage points. The model is then employed to analyse the impact of uncontrolled charging of BEV on the residential load profile. It is found that the absolute load peaks will increase by up to factor 8.5 depending on the loading infrastructure, the load in high load hours will increase by approx. a factor of 3 and annual electricity demand will approximately double. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:29&r=ure |
| By: | Carolin Fritzsche; Lars Vandrei |
| Abstract: | This paper uses recent data for single-family home purchases to study the effects of the German real estate transfer tax. We aim to separate the tax’s short-term anticipatory effects from its long-term effects on real estate transactions. The data indicate that an increase in the transfer tax is negatively correlated with the number of transactions that take place in the market for single-family homes. We estimate that a one percentage point higher transfer tax produces enormous anticipation effects and yields approximately 6%fewer transactions over the long run. |
| Keywords: | anticipation effects; Housing Markets; property taxation; Real estate transfer tax |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_97&r=ure |
| By: | Bondy, Malvina (London School of Economics); Roth, Sefi (London School of Economics); Sager, Lutz (London School of Economics) |
| Abstract: | Many empirical studies have examined various determinants of crime. However, the link between crime and air pollution has been surprisingly overlooked despite several potential pathways. In this paper, we study whether exposure to ambient air pollution affects crime by using daily administrative data for the years 2004-05 in London. For identification, we mainly rely on the panel structure of the data to estimate models with ward fixed effects. We complement our main analysis with an instrumental variable approach where we use wind direction as an exogenous shock to local air pollution concentrations. We find that elevated levels of air pollution have a positive and statistically significant impact on overall crime and that the effect is stronger for types of crime which tend to be less severe. We formally explore the underlying mechanism for our finding and conclude that the effect of air pollution on crime is likely mediated by higher discounting of future punishment. Importantly, we also find that these effects are present at levels which are well below current regulatory standards and that the effect of air pollution on crime appears to be unevenly distributed across the income distribution. Overall, our results suggest that reducing air pollution in urban areas may be a cost effective measure to reduce crime. |
| Keywords: | air pollution, crime, economic incentives |
| JEL: | H23 K42 Q53 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11492&r=ure |
| By: | Sullivan, Riley (Federal Reserve Bank of Boston) |
| Abstract: | The rise in the abuse of—and addiction to—opioids and the rapid increase in the number of fatal overdoses in recent years have made the opioid epidemic a priority for local, state, and federal policymakers. Understanding the epidemic’s direct fiscal impact is key to acknowledging its scope and magnitude. While opioid abuse has many direct and indirect fiscal costs, few studies quantify them. This report assembles available data on the impact of opioid epidemic on criminal justice, treatment, and related health expenditures in the New England states. The research finds that state governments in the region spend a higher percentage on total opioid-related costs and more per capita than the national averages. Across the region, treating opioid-use disorder—on both an emergency and a long-term basis—accounts for the majority of the costs. Estimates for medical treatment expenditures associated with opioid abuse reach as high as $340 million annually in Massachusetts alone. While providing new insight the author acknowledges that the costs considered in this policy report are incomplete. It’s plausible that the opioid epidemic’s impact on state revenues is also significant and could affect regional fiscal health. For example, individuals incarcerated for drug crimes or in residential treatment programs are not earning wages. Evidence also suggests that non-institutionalized individuals abusing opioids are more likely out of work than employed, likewise resulting in lost revenue (Krueger 2017). The author plans to conduct further research on opioid abuse’s impact on employment and labor force participation, which should contribute to a fuller understanding of the epidemic’s fiscal cost to the region. However, beyond the fiscal cost is the toll opioid abuse has taken on individuals, families, and communities. The costs analyzed in this report are just a small part of the greater damage inflicted across the region and the country. |
| Keywords: | opioids; New England; fiscal |
| Date: | 2018–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbpr:2018_001&r=ure |
| By: | Kortelainen, Mika; Manninen, Kalle |
| Abstract: | A number of papers have compared the effectiveness of private and public schools in different institutional settings. However, most of these studies are observational and do not utilize experimental or quasi-experimental design to evaluate the value-added or the effectiveness of private schools in comparison to public schools. This study focuses on private and public high schools in Helsinki, the capital city of Finland. We use two different methods to compare private and public schools, value-added estimation and regression discontinuity design (RDD). Although based on somewhat different assumptions, both methods allow us to evaluate the causal effect of private schools on the exit exam results in high school. We find that private schools perform marginally better than public schools, but the difference in performance is small and statistically insignificant according to both methods. Various robustness and validity checks strengthen our RDD results and the validity of the discontinuity design. |
| Keywords: | education, public sector outsourcing, regression discontinuity, school choice, value-added, H44, I21, I26, J24, |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:fer:wpaper:108&r=ure |
| By: | David Card (Department of Economics, University of California, Berkeley; and National Bureau of Economic Research); A. Abigail Payne (Melbourne Institute: Applied Economic & Social Research and Department of Economics, The University of Melbourne; and Department of Economics, McMaster University) |
| Abstract: | Women who graduate from university are less likely than men to specialize in science, technology, engineering, or math (STEM). We use detailed administrative data for a recent cohort of high school students in Ontario, Canada, combined with data from the province's university admission system to analyze the dynamic process leading to this gap. We show that entry to STEM programs is mediated through an index of STEM readiness based on end-ofhigh-school courses in math and science. Most of the gender gap in STEM entry can be traced to differences in the rate of STEM readiness; less than a fifth is due to differences in the choice of major conditional on readiness. We then use high school course data to decompose the gap in STEM readiness among university entrants into two channels: one reflecting the gender gap in the fraction of high school students with the necessary prerequisites to enter STEM, and a second arising from differences in the fractions of females and males who enter university. The gender gap in the fraction of students with STEM prerequisites is small. The main factor is the lower university entry rate by men -- a difference that is due to the lower fraction of non-science oriented males who complete enough advanced level courses to qualify for university entry. We conclude that differences in course-taking patterns and preferences for STEM conditional on readiness contribute to male-female differences in the rate of entering STEM, but that the main source of the gap is the lower overall rate of university attendance by men. |
| Keywords: | Post-secondary education, gender, STEM |
| JEL: | I23 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2017n25&r=ure |
| By: | Brigitte Frutig; Prashant Das |
| Abstract: | We examine how the systematic risk of large commercial real estate owners is associated with geographic diversification. In particular, we analyze time-varying equity betas and geographic exposure of publicly traded pure-play lodging REITs. Contrary to popular expectation, we find that stock investors perceive smaller risk in geographic focus rather than diversification. Further, regional focus becomes insignificant in reducing the risk if the focus expands beyond two or three regions. The findings are robust to multiple measures of geographic diversification. Our study re-affirms the impact of geographic focus in the context of commercial real estate as a risk minimization strategy. |
| Keywords: | REIT; stock beta |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_369&r=ure |
| By: | Theis Theisen |
| Abstract: | When individuals are ageing, they may lose some of their functional abilities. This may have important consequences for their optimal form of housing arrangement. We set up a theoretical model for the optimal choice of housing in the later part of life. In the empirical part of the paper we estimate a multinomial logit model for choice of housing. Four modes of housing are distinguished: ordinary private housing, specially designed private housing, sheltered dwellings, and nursing homes. The model is estimated from a nation-wide Norwegian sample containing all individuals who have had some problems related to functionality. All households not included in the sample reside in ordinary private dwellings. We find a strong impact of weak functional abilities on the choice of housing, but the capacity of the nursing home sector and specially designed dwellings also plays an important role. Moreover, municipality-specific affects are important. |
| Keywords: | Housing; Nursing Homes; Optimal mod of housing; Sheltered dwellings |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_246&r=ure |
| By: | Yao Liming |
| Abstract: | ‘Housing affordability’ has been widely used as the key criteria to examine the ability of households to afford the housing expenditures. However, much less attention has been paid to the housing affordability issues that faced by Chinese households. This paper examines factors which would impact housing affordability, by linking the theoretical understandings in the macroeconomic environment, housing market and liquidity constraints. Quarterly time series data at the national level are employed for empirical investigation. The instrumental variable approach is employed to resolve the endogeneity issues and obtain the consistent estimators. Suggestions of taking measures to mitigating housing affordability difficulties would be discussed according to the empirical findings. |
| Keywords: | Housing Affordability; instrumental variable approach; regional variances; Tenure Choice |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_117&r=ure |
| By: | Marcelo Cajias |
| Abstract: | Hedonic modelling is essential for institutional investors, researchers and urban policy-makers in order to identify the factors affecting the value and future development of rents over time and space. While statistical models in this field have advanced substantially over the last decades, new statistical approaches have emerged expanding the conventional understanding of real estate markets. This paper explores the in-sample explanatory and out-of-sample forecasting accuracy of the Generalized Additive Model for Location, Scale and Shape (GAMLSS) model in contrast to traditional methods in Munich’s residential market. The results show that the complexity of asking rents in Munich is more accurately captured by the GAMLSS approach, leading to a significant increase in the out-of-sample forecasting accuracy. |
| Keywords: | GAM; GAMLSS; Hedonic Modelling; Out-of-sample bootstrap; Residential Housing |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_226&r=ure |
| By: | Tamara ?maguc (Faculty of Organization and Informatics, University of Zagreb); Ksenija Vukovi? (Faculty of Organization and Informatics, University of Zagreb) |
| Abstract: | The promise of entrepreneurial zones development in Northern Croatia has been huge. In the last decade 282,2 million kuna has been invested on the area of Vara?din and Me?imurje county in the Republic of Croatia and the result has been activation of 52 zones financed from public sources and generation of 14,4 thousand working vacancies (Republic of Croatia, Ministry of Entrepreneurship and Crafts, 2015). Despite certain employment capacity there is still a large number of non-active or half-filled entrepreneurial zones that are a reason for suspicion in cost effectiveness of these investments. In this paper investment efficiency of local self-government units (municipalities and towns) on the area of Vara?din and Me?imurje county in the Republic of Croatia has been assessed by using data envelopment analysis. The analysis has been conducted by using CCR and BCC model oriented on outputs. Concretely, the results of the conducted analysis are valuable due to the fact that political management of towns and municipalities ? that has been non-efficient investor in entrepreneurial zones ? is given information on necessary changes and their extent and also on good practice examples from neighbour towns and municipalities. |
| Keywords: | entrepreneurial zones, relative efficiency assessment, data envelopment analysis, Vara?din county, Me?imurje county |
| JEL: | L26 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7508474&r=ure |
| By: | Goodness C. Aye (Department of Economics, University of Pretoria, Pretoria, South Africa); Rangan Gupta (Department of Economics, University of Pretoria, Pretoria, South Africa) |
| Abstract: | This paper characterizes the sources of the comovement in the U.S metropolitan buy-rent growth rate. The analysis is based on quarterly buy-rent indices from 1982:Q1 to 2016:Q4. To this end, we used the dynamic factor model to decompose the index into national and local factors. The national component contributed more to the variation in the buy-rent indices relative to the local component with variance decomposition values of 72% and 27% respectively albeit this varied across the cities. We further examined the sensitivity of the national buy-rent factor to macroeconomic uncertainty. Our full sample results show that uncertainty has a significant negative effect on the buy-rent behavior thus favouring buying a home as a wealth accumulation channel relative to renting a similar home. The results from the recursive estimation further confirmed a dominant negative relationship with fewer periods of positive relationship. The implications of these findings are drawn. |
| Keywords: | Buy-rent choice, consumer behavior, dynamic latent factor model, development, economic uncertainty |
| JEL: | C32 C38 E21 E30 R31 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:201832&r=ure |
| By: | Louis-Philippe Beland; Daniel A. Brent |
| Abstract: | We examine the relationship between traffic congestion and emergency response times by match- ing traffic data at a fine spatial and temporal scale to incident report data from fire departments in California. Our results show that traffic slows down fire trucks arriving at the scene of an emergency and increases the average monetary damages from fires. Allocating more funding to fire departments decreases response times, but not the marginal effect of traffic. We document an additional externality of traffic congestion and highlight the negative effect of traffic on one of the many public goods that rely on well-functioning road infrastructure. |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:lsu:lsuwpp:2018-04&r=ure |
| By: | Tobias Schmidt; Julia Le Blanc |
| Abstract: | In this paper we analyse the impact of property ownership on the saving behaviour of households. We are particularly interested in investigating whether homeowners save more than renters or not. A related question is whether mortgage payments and other regular savings are substitutes or complements for German households. To answer these questions we use a large cross-sectional dataset on individual households’ finances and employ a matching estimator. We find that households owning property and repaying mortgages do save more than renters, if contractual savings and mortgage payments are summed up. However, the difference between regular savings flows of renters and owners is small and insignificant. Owners do not seem to substitute contractual savings with mortgage payments. |
| Keywords: | Homeownership; household saving; survey data |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_110&r=ure |
| By: | Lorenzo Cherubini (Brock University St. Catharines, Ontario) |
| Abstract: | The education of Aboriginal youth is, in some respects, in crisis. Aboriginal communities in Ontario are as a group currently experiencing marginalization within the education system. As such it is imperative that efforts be made to better understand the system to improve the success rate for Aboriginal youth. The Ontario First Nation, Métis and Inuit Education Policy Framework (2007) has committed to “improve achievement among First Nation, Métis and Inuit students and to close the gap between Aboriginal and non-Aboriginal students†. English and Language Arts teachers are compelled to consider how the policy discourse of the 2007 Aboriginal Policy Framework implicates upon the socio-political and socio-historical currency of literacy in their instruction. Consequently, this qualitative study examined one component of a large-scale project, in the tradition of grounded theory, including the implications of Aboriginal education policy discourse on literacy instruction as it applies to over 200 prospective teachers enrolled in a Teacher Education Program in Ontario, Canada. Participants identified two themes that they believed Aboriginal students would find most challenging, including: tension with provincial curriculum and, feelings of misrepresentation. |
| Keywords: | Aboriginal students, critical literacy, education policy |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:smo:tpaper:009&r=ure |
| By: | Aliprantis, Dionissi (Federal Reserve Bank of Cleveland); Schweitzer, Mark E. (Federal Reserve Bank of Cleveland) |
| Abstract: | This paper finds evidence that opioid availability decreases labor force participation while a large labor market shock does not influence the share of opioid abusers. We first identify the effect of availability on participation using the geographic variation in opioid prescription rates. We use a combination of the American Community Survey (ACS) and Centers for Disease Control and Prevention (CDC) county-level prescription data to examine labor market patterns across both rural and metropolitan areas of the United States from 2007 to 2016. Individuals in areas with higher prescription rates are less likely to participate after accounting for standard demographic factors and regional controls. This relationship remains significant for important demographic groups when increasingly strong panel data controls, including a full set of geographic fixed effects and measures of local labor market conditions in 2000, are introduced to the regressions. We also investigate the possibility of reverse causality, using the Great Recession as an instrument to identify the effect of weak labor demand on opioid abuse. The share abusing opioids did not increase after the onset of the Great Recession. The evidence on the frequency of abuse is more ambiguous since the identified increases could be the continuation of a pre-trend. |
| Keywords: | Opioid Prescription Rate; Labor Force Participation; Great Recession; Opioid Abuse; |
| JEL: | I10 J22 J28 R12 |
| Date: | 2018–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedcwp:1807&r=ure |
| By: | Katarzyna Growiec; Jakub Growiec; Bogumil Kaminski |
| Abstract: | Based on a calibrated computational multi-agent model with an overlapping generations structure, we investigate society-level consequences of creation and destruction of social ties at the individual level. The steady state of the simulated social network exhibits realistic small-world topology. We also find that societies whose social networks are relatively frequently reconfigured, display relatively higher social trust, willingness to cooperate, and economic performance - at the cost of lower social utility. Similar outcomes are found for societies where social tie dissolution is relatively weakly linked to family closeness. |
| Keywords: | social network structure, social network dynamics, social trust, willingness to cooperate, economic performance, computational multi-agent model. |
| JEL: | C63 D85 J31 L14 Z13 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:sgh:kaewps:2018036&r=ure |
| By: | Nano Barahona; Francisco Gallego; Juan-Pablo Montero |
| Abstract: | Local air pollution has led authorities in many cities around the world to impose limits on car use, increasingly by means of driving restrictions or license-plate bans. With some exceptions, these restrictions tend to be poorly designed creating incentives for drivers to buy additional, more polluting cars. We study vintage-specific restrictions that place heavy limits on older, polluting vehicles and none on newer, cleaner ones. A novel model of the car market and evidence from Santiago’s 1992 program, the earliest attempt to use vintage-specific restrictions, are used to show that these restrictions can be welfare enhancing by accelerating fleet turnover toward cleaner cars. These policies compare well to alternative instruments such as scrappage subsidies and pollution-based registration fees. |
| Keywords: | Driving restrictions, Local Pollution, Car Turnover |
| JEL: | R41 Q53 Q58 |
| Date: | 2018–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:col:000518:016259&r=ure |
| By: | Bence Zuti (University of Szeged, Hungary) |
| Abstract: | Digitalization is one of the key drivers of accelerated change in our everyday lives, both on an economic and social level. With solutions enabled through ICT technologies, we are more connected than ever on the global scale. In this next chapter of globalization, we currently experience significant transition in the structure of industries, consumer behavior and how we collect and manage data. This transition requires a shift in mindset, as we need to reevaluate the key factors of competitiveness, in order to prepare ourselves for rapid and presumably disruptive changes. These changes, however, mean to ease our everyday lives in the long run. The presence of an advanced regional infrastructure is a crucial factor in enhancing the competitiveness of regional economies, hence the opportunities in mobility in the digital age need to be revised. The aim of the paper is to systematize the key connections between digitalization, mobility and regional competitiveness while mapping potential challenges in the topic as well. |
| Keywords: | regional competitiveness, digitalization, globalization, regional mobility, urban mobility |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:smo:tpaper:006&r=ure |
| By: | ITO Tadashi; SAITO Yukiko |
| Abstract: | This paper presents empirical facts on wholesalers' location pattern of establishments and their roles in manufacturers' indirect trade by using micro data of firms and establishments, and focuses on regional economies. The following are the main findings. Concerning the exporting probability of wholesale establishments, 1) location of their headquarters matters more than location of establishments, 2) size dependency of exporting probability is small in the periphery area, 3) exporting probability is high when there are other exporting establishments within the same firm. Concerning the domestic transaction network between wholesalers and manufacturers, 4) manufacturing firms in periphery regions tend to export indirectly though wholesale firms located remotely in core regions considering headquarter locations while the distance between establishments are from one-third to one-fourth of that between headquarters. The facts on exporting probability of wholesale establishments suggest that information from headquarters and other exporting establishments within the same firm is more important than infrastructures, etc., i.e., physical access from the establishment. Furthermore, the fact on domestic transaction networks suggests that wholesale firms in core regions expand their establishments in periphery regions and create bases for supplier search to reduce search cost. |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rpdpjp:18010&r=ure |
| By: | Agarwal, Sumit (Georgetown University); Amromin, Gene (Federal Reserve Bank of Chicago); Ben-David, Itzhak (Ohio State University); Dinc, Serdar (Rutgers University) |
| Abstract: | U.S. House of Representatives Financial Services Committee considered many important banking reforms in 2009-2010 including the Dodd-Frank Act. We show that during this period, the foreclosure starts on delinquent mortgages were delayed in the districts of committee members even though there was no difference in delinquency rates between committee and non-committee districts. In these areas, banks delayed the start of the foreclosure process by 0.5 months (relative to the 12-month average). The total estimated cost of delay to lenders is an order of magnitude greater than the campaign contributions by the Political Action Committees of the largest mortgage servicing banks to the committee members in that period and is comparable to these banks’ lobbying expenditures. |
| JEL: | D72 G01 G21 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:ohidic:2017-21&r=ure |
| By: | Leung, Charles Ka Yui (City University of Hong Kong); Ng, Joe Cho Yiu (City University of Hong Kong) |
| Abstract: | This paper aims to achieve two objectives. First, we demonstrate that with respect to business cycle frequency (Burns and Mitchell, 1946), there was a general decrease in the association between macroeconomic variables (MV) and housing market variables (HMV) following the global financial crisis (GFC). However, there are macro-finance variables that exhibited a strong association with the HMV following the GFC. For the medium-term business cycle frequency (Comin and Gertler, 2006), we find that while some correlations exhibit the same change as the business cycle counterparts, others do not. These “new stylized facts” suggest that a reconsideration and refinement of existing “macro-housing” theories would be appropriate. We also provide a review of the recent literature, which may enhance our understanding of the evolving macro-housing-finance linkage. |
| Keywords: | Stylized facts; macro-housing-finance linkage; global financial crisis; business cycle frequency; housing market variables |
| JEL: | E30 G10 R30 |
| Date: | 2018–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddgw:340&r=ure |
| By: | Facundo Albornoz; Antonio Cabrales; Paula Calvo; Esther Hauk |
| Abstract: | This note provides evidence on how immigration costs affect school performance of immigrant children exploiting the information provided by the CDI; a standardized exam for all students enrolled in the last year of Primary education in the Madrid region. For a given socio-economic background and parent characteristics, school performance of immigrant children improves with parental immigration costs. |
| Keywords: | school performance; immigration; parental involvement; immigration costs |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:not:notgep:18/06&r=ure |
| By: | East, Chloe N. (University of Colorado Denver); Luck, Philip (University of Colorado Denver); Mansour, Hani (University of Colorado Denver); Velasquez, Andrea (University of Colorado Denver) |
| Abstract: | This paper examines the effects of reducing the supply of low-skilled immigrant workers on the labor market outcomes of domestic workers. We use temporal and geographic variation in the introduction of Secure Communities (SC), a county-based immigration enforcement policy, combined with data over 2005-2014 from the American Community Survey to estimate a difference-in-difference model with geographic and time fixed effects. We find evidence that SC had a negative impact on the employment of low-skilled non-citizen workers, who are likely to be directly affected by the policy. Importantly, we also find that SC negatively impacted the employment of citizens working in middle to high-skill occupations. This is the first paper to provide quasi- experimental evidence on the labor market effects of immigration enforcement policies on citizens across the occupational skill distribution, which is of paramount importance given the current immigration policy debates. |
| Keywords: | international migration, labor demand, immigration policy |
| JEL: | F22 J11 J23 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11486&r=ure |
| By: | Shoag, Daniel (Harvard University); Veuger, Stan (American Enterprise Institute) |
| Abstract: | We study the local economic spillovers generated by LeBron James' presence on a team in the National Basketball Association. Mr. James, the first overall pick of the 2003 NBA draft, spent the first seven seasons of his career at the Cleveland Cavaliers, and then moved to the Miami Heat in 2010, only to return to Cleveland in 2014. Long considered one of the NBA's superstars, he has received the league's MVP award four times, won three NBA championships, and been a part of two victorious US teams at the Olympics. We trace the impact a star of Mr. James' caliber can have on economic activity by analyzing the impact his departures and arrivals had on business activity close to the Cleveland Cavaliers and Miami Heat stadiums. We find that Mr. James has a statistically and economically significant positive effect on both the number of restaurants and other eating and drinking establishments near the stadium where he is based, and on aggregate employment at those establishments. Specifically, his presence increases the number of such establishments within one mile of the stadium by about 13%, and employment by about 23.5%. These effects are very local, in that they decay rapidly as one moves farther from the stadium. |
| JEL: | J44 J61 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp17-019&r=ure |
| By: | Bouscasse, H. |
| Abstract: | Mode choice depends on observable characteristics of the transport modes and of the decision maker, but also on unobservable characteristics, known as latent variables. By means of an integrated choice and latent variable (ICLV) model, which is a combination of structural equation model and discrete choice model, it is theoretically possible to integrate both types of variables in a psychologically and economically sound mode choice model. To achieve such a goal requires clear positioning on the four dimensions covered by ICLV models: survey methods, econometrics, psychology and economics. This article presents a comprehensive survey of the ICLV literature applied to mode choice modelling. I review how latent variables are measured and incorporated in the ICLV models, how they contribute to explaining mode choice and how they are used to derive economic outputs. The main results are: 1) the latent variables used to explain mode choice are linked to individual mental states, perceptions of transport modes, or an actual performed behaviour; 2) the richness of structural equation models still needs to be explored to fully embody the psychological theories explaining mode choice; 3) the integration of latent variables helps to improve our understanding of mode choice and to adapt public policies. |
| Keywords: | MODE CHOICE;SURVEY;INTEGRATED CHOICE;LATENT VARIABLE MODEL;STRUCTURAL EQUATION MODELLING;BEHAVOURAL THEORIES;ECONOMIC OUTPUTS |
| JEL: | C25 D9 R41 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:2018-07&r=ure |
| By: | Catalina Amuedo-Dorantes (Department of Economics, San Diego State University); Cristina Borra (University of Seville) |
| Abstract: | The Spanish welfare state was practically inexistent in the 1980s. It expanded throughout the 1990s and became fully in place by the 2000s. At the same time, internal migration rates dropped to less than 0.3 percent –among the lowest in the world. In a country with large labor market imbalances, internal mobility can prove crucial to economic growth. We look at the role that non-contributory pensions might have played on inter-provincial mobility over the past two decades. We find that the expansion of the welfare state has curtailed the mobility of young working-age individuals, especially less educated women. The effects are unique to non-contributory pensions, and are not restricted to cohabitating family members or tied to the care for disabled relatives, signaling the need for policy measures that facilitate the mobility of the young from lower income households. |
| Keywords: | internal migration, labor mobility, welfare benefits |
| JEL: | I38 J61 R23 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1806&r=ure |
| By: | Bernardo Fanfani (Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino, Italy) |
| Abstract: | We study a model where wage differences between men and women arise from taste-based discrimination and monopsonistic mechanisms. We show how preferences against women affect heterogeneity in firms' pay policies in the context of an imperfect labour market, deriving a rigorous test for the presence of taste-based discrimination and of other firm-level mechanisms driving the gender wage gap, in particular compensating wage differentials. These results inform an analysis of sex pay differences in the Italian manufacturing sector showing that taste-based discrimination and preferences for workplaces providing more flexible schedules are two significant determinants of the gender wage gap. |
| Keywords: | Gender Wage Gap; Taste-Based Discrimination; Monopsonistic Discrimination; Compensating Wage Differentials; Firm Wage Policy; Matched Employer-Employee Data. |
| JEL: | J00 J16 J31 J71 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:tur:wpapnw:054&r=ure |
| By: | Junbyoung Oh (Department of Economics, Inha University); Wonchang Hur (College of Business Administration, Inha University) |
| Abstract: | Inventing is a recombinant process that involves searching and recombining differ- ent streams of knowledge. The value of invention is associated with not only how many prior inventions are considered, but also how they are related to each other. We introduce social network analysis broadly used in the social capital theory, and extend the dimension of analysis for the evaluation of patent value. This study em- ploys U.S. pharmaceutical patent data and investigates whether the network charac- teristic of backward citations have significant effect on the future patent value. The empirical results suggest that the network features of backward citations measured by cohesion, constraint, and efficiency have statistically significant implication on the value of invention in both level and depreciation rate. The study also provides empirical evidence that the exploration strategy is more significantly and positively correlated with the future value of invention compared to the exploitation strategy of inventors. |
| Keywords: | Patent value, Social network analysis, Network structure of backward citation |
| JEL: | H23 O31 O38 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:inh:wpaper:2018-3&r=ure |
| By: | Eric Fesselmeyer; Kiat Ying Seah |
| Abstract: | We examine the causal effect of neighborhood segregation on black entrepreneurship. We address neighborhood sorting by analyzing city averages and omitted variable bias by instrumenting for segregation using historical railroad configurations. We find that segregation has a significant positive effect. Additionally, in order to minimize the effect of cross-city sorting, we use a narrower sample constructed from outcomes of young adults and find a similar effect. Our findings are important because historically entrepreneurship has been an avenue out of poverty, and entrepreneurship has been promoted as a way to decrease welfare and unemployment. |
| Keywords: | Entrepreneurship; Inequality; Segregation |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_277&r=ure |
| By: | Sarkar Saikat; Tuomala Matti (Faculty of Management, University of Tampere) |
| Abstract: | Our empirical analysis provides support for the view that asset-bubbles togetherwith economic fundamentals such as caused by increases in innovation-led growth are an important part of story in explaining increasing top income inequality. Moreover, top tax rates have played an important role. At the same time with large growth in top income shares over the past few decades, top tax rates on upper income earners have declined signiÖcantly in many advanced countries |
| Keywords: | top income shares, bubbles and crashes, innovations, top tax rates |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:tam:wpaper:1821&r=ure |
| By: | Beata Guziejewska (University of Lodz) |
| Abstract: | The presentation deals with the problem of shaping the decentralized system of public finance and interpretation of fiscal autonomy indicators. The analysis is theoretical and empirical. In the theory we can discuss two extreme scenarios: decentralised (60% own revenue, 40 % external revenue) and centralised system of public finance (40% own revenue, 60 % external revenue). If we assume only 40% share of own revenue, taxes, in the structure of financing sources for local government units, the consequence of this is low budget resilience to unfavourable external and internal factors and high probability of occurrence of broadly understood negative income shocks. The aim of the discussion is to analyse the trends in the practice of local government finances in Poland and selected countries of Central and Eastern Europe. The literature of the subject, studies by international institutions as well as data from Eurostat and EC are used in the deliberations. The discussed countries differ significantly in the scope of fiscal decentralisation. Latvia, the Czech Republic and Poland seem to be most advanced in the process. However the example of Poland shows limits and difficulties with interpretation of statistical measures. It is necessary to look at the categories of revenues which belong to the so-called "own revenues". It is questionable that in Poland we treat in the statistics the shares in Personal Income Tax and Corporate Income Tax as own revenues. Local government units do not exert any influence on the structure and amount of PIT and CIT (category of shared taxes). The autonomy in expenditure without real fiscal autonomy and responsibility leads to fiscal illusions and undermine the local democracy. |
| Keywords: | public finance, fiscal decentralization, local self-government, fiscal autonomy |
| JEL: | H70 H71 H77 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7508533&r=ure |
| By: | François Viruly; Stan Garrun |
| Abstract: | Market maturity is closely associated with the availability of market data . This paper provides a comprehensive analysis of the availability of Commercial property market data in Sub-Saharan Africa. It also adds to the existing body of literature, which suggests that the availability of data has a critical role to play in improving market transparency, the quality of valuations , and the analysis of risk . Indirectly the availability of data affects the appetite of investors to enter these markets. The research also considers the importance that South African investors who have entered these markets place on existing data. It concludes with suggestions for potential interventions that could considerably improve the availability of data across the Sub-Sharan continent. |
| Keywords: | Ipd; Market Data; Market maturity; MSCI; Risk Analysis; Sub-saharan africa |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_34&r=ure |
| By: | Rita Yi Man Li; Beiqi Tang |
| Abstract: | Since the mid-1970s, at least six banking crises correlated with housing bubbles. When housing prices reach the peak or fall sharply, financial crises occur. In some places, housing is an economic growth driver and corner stone of social stability. Whilst mortgage finance plays indispensable role financial system stability, regulations provide useful framework in governing the rules of games for many homeowners. Well or poor design of mortgage regulations often affects economy from this perspective. History tells many of the changes in regulations are due to the major economic incidents. In this paper, we aim to study the evolution of mortgage finance regulation in Japan, Hong Kong, China, Korea, Singapore and Thailand. |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_350&r=ure |
| By: | Gianmarco León; Lukas Kleine-Rueschkamp |
| Abstract: | We estimate the effects of political accountability on the selection of politicians when accountability mechanisms are prone to political capture. Using a comprehensive dataset that records characteristics of candidates for mayor in the last three local elections in Perú, and a close election sharp regression discontinuity design, we compare candidates running for mayor in districts where the incumbent was ousted from office through a recall referendum in the previous electoral term with those who run in districts where the recall referendum failed by a small margin. Candidates in municipalities where the incumbent was recalled are less educated, have less experience in elected offices and in the public sector, and are younger. These findings are consistent with a framework where potential candidates learn about an accountability mechanism which is prone to capture, distorting the main objectives of improving the quality of government, and instead discouraging high quality candidates to run. The negative selection of candidates is partially offset by voters, who elect the best politician out of a lower quality pool of candidates. |
| Keywords: | accountability, selection into Politics, Peru |
| JEL: | O10 D72 O53 D71 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1041&r=ure |
| By: | Magdalena Zaleczna |
| Abstract: | In EU countries an assistance in meeting citizens’ housing needs has been an important task carried out by the local government for decades. Most typically the municipal housing stock was the basis in the allocation of housing to those recognized as entitled to the aid. Many reforms have been provided to modify applied solutions, they have had form of new rules for the privatization of both public stock and its management, new application of used measures and new solutions. There is a need of a comparison of instruments in use and consequences of their application among EU countries. The author is particularly interested in the differences and similarities between reforms and their consequences in the countries of the "old EU" and the post-socialist countries. It appears that not only the economic issues have an importance for results of reforms, but also the social perception and assessments of reforms. |
| Keywords: | municipal housing; post-socialist; Reform; social perception |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_181&r=ure |
| By: | Xiaolong Liu; Arno Van der Vlist |
| Abstract: | Listing your house for sale has been referred to as ‘the most agonizing and among the most stressful decision’ that go with selling a home. This may seem particularly so for homeowners expecting to sell for less than their original purchase price. In this paper, we investigate whether listing strategies among homeowners who experience a potential loss differ from those not experiencing a potential loss. We use MLS data from the Randstad area of The Netherlands over 2008 - 2013 for which we have detailed information regarding the listing strategies. We find that those homeowners who expect a loss; set higher initial list prices, are more likely to and more aggressively revising their list prices downwards, and set final list prices still above those of homeowners not expecting a loss upon initial listing. Further, we find sellers' motivation to be an important underlying driver in listing strategies. |
| Keywords: | Housing; list price revision; loss; property transaction |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_366&r=ure |