|
on Urban and Real Estate Economics |
| By: | ChengHe Guan; Richard Peiser |
| Abstract: | The effects of metro system development and urban form on housing prices are highly depend on the spatial temporal conditions of the urban neighborhoods. However, scholars have not yet comprehensively examined these interactions at a neighborhood-scale. This study assesses metro access, urban form, and property value at both district- and neighborhood-levels. The study area is in Pudong, Shanghai where metro system development coincides with rapid urban growth. 279 neighborhoods are systematically and randomly selected for the district-level investigation and 31 neighborhoods are selected from Pudong for neighborhood-level investigation. The analysis of variance shows that metro access is more positively correlated to property price in Pudong. The Pearson correlation, principle component, and ordinary least square regression analyses find that while accessibility attributes have positive influence on housing prices, neighborhood characteristics also exhibit pronounced impact on property price change over time. This study extends our knowledge on how metro system development interacts with land use efficiency, and discusses planning policies corresponding to development stage that produce more sustainable urban form. |
| Keywords: | Accessibility; metro system; Property Values; Spatial Structure; Urban Form |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_330&r=ure |
| By: | Meagan McCollum; Stanimira Milcheva |
| Abstract: | This study investigates how location of US multifamily rental housing (MFRH) properties can impact on their investment performance. MFRH units are owned by companies and rented to households, including low and moderate-income households. In particular, we look at property performance characteristics such as occupancy rate, net operating income (NOI) and loan delinquency and assess how those are affected by within city variation of socio-economic and demographic factors. Such factors include household income, house prices, foreign capital flows into real estate, demographic factors such as age, race, ethnicity. We use data on securitized commercial mortgage loans between 1999 and 2016 in order to assess the relationship between property performance indications and the local economy. While the MFRH market provides opportunities for property investors and it should be better understood from an investor point of view, MFRH rental stock also is an important component of the alternatives to homeownership for households and is worthy of studying from this perspective as well highlighting the contribution of this study. |
| Keywords: | commercial loans; Delinquency; multifamily housing; socio-economic and demographic factors and corss border flows; zip-code level analysis |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_131&r=ure |
| By: | Jeremy Gabe; Spenser Robinson; Andrew Sanderford |
| Abstract: | Rising urban population growth increases demand for multi-family housing; sustainable urban form and building level sustainability represent vital planning areas for this demand . Here, the multi-family housing stock is used to examine consumer preferences about sustainability in growing urban areas. Drawing on a data set of more than 40,000 apartment buildings/complexes from Apartments.com and secondary data from the describing urban form, walkability, proximity, access to transit, schools, and crime, this paper addresses the question: what sustainability features are desirable both in building and locational form in the largest U.S. CBSAs? Methodologically, the paper uses the traditional hedonic modeling techniques that include both apartment complex and unit attributes. These models are augmented with spatial and locational attributes designed to reveal preferences for sustainability in cities. Further, the unique data reveals previously unobserved property and locational traits. Model results have implications for property investors, developers, asset managers, and urban policy makers |
| Keywords: | Multifamily; Sustainability; Sustainable Real Estate; Urban; Walkability |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_103&r=ure |
| By: | Andrea Morrison; Sergio Petralia; Dario Diodato |
| Abstract: | More than 30 million people migrated to the US between the 1850s and 1920s. In the order of thousands became inventors and patentees. Drawing on an original dataset of immigrant inventors to the US, we assess the city-level impact of immigrants patenting and their potential crowding out effects on US native inventors. Our study contributes to the different strands of literature in economics, innovation studies and economic geography on the role of immigrants as carriers of knowledge. Our results show that immigrants? patenting is positively associated with total patenting. We find also that immigrant inventors crowd-in US inventors. The growth in US inventors? productivity can be explained also in terms of knowledge spill-overs generate by immigrants. Our findings are robust to several checks and to the implementation of an instrumental variable strategy. |
| Keywords: | immigration, innovation, knowledge spill-over, patent, age of mass migration, US |
| JEL: | F22 J61 O31 R3 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1835&r=ure |
| By: | Tommaso Gabrieli; Theodore Panagiotidis; Yishuang Xu |
| Abstract: | This paper examines the long-run convergence of houses price across the eighteen Beijing districts using monthly dataset that span from January 2006 to December 2014. Following a pair-wise approach, we conduct unit root tests on all N(N-1)/2 possible pairs of housing price differentials across the N districts of Beijing. By doing so we do not select any base-district or regional average as the benchmark. A two-stage approach is employed . In the first stage, unit root tests are employed to investigate the convergence (stationarity) of house price differentials across Beijing. Over half of the intra-city house price differentials are found to be stationary. The second stage of the investigates the drivers of convergence. The probability of a pair being stationarity is affected by income differentials across the eighteen districts, as well as the demographics differentials and supply-side factors. Last we reveal that the half-life of a shock towards long-run price equilibrium is positively affected by distance and housing supply while little evidence can be found for the influence of income and population density. |
| Keywords: | Chinese House Prices; Cointegration; House Price Convergence; Pair-wise approach |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_236&r=ure |
| By: | Colin Jones; Neil Dunse; Terry Brooke |
| Abstract: | The research examines office property markets cycles in four Canadian cities - Calgary, Edmonton, Vancouver and Toronto. Each of the four cities has a different economic base and, as a result, have potentially significantly different commercial property development and investment cycles. The analysis examines cycles in annual office building construction in each market on a building by building basis over the past 100 years. The analysis of investment cycles is based on office building sales transactions and quarterly market rent data over the past 20 to 25 years. The four cities are shown to be rarely in the same phase of a development/investment cycle. There are significant differences in the primary office and industrial user groups that shape these markets and affect market cycles. The same major investment firms, pension funds and REITs, seek large office and industrial properties in all four cities as each progress through a complete development and investment cycle. However, each market also has a significant component of regional and local investors. The role of property market cycles in the emergence and changes in office sub-markets is also examined. |
| Keywords: | Commercial Property Sub-markets; Property Cycles; Property Investment |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_168&r=ure |
| By: | Mense, Andreas; Michelsen, Claus; Kholodilin, Konstantin |
| Abstract: | This paper analyzes empirically the effects of a second generation rent control. We investigate the consequences of an uncommon policy intervention in the German housing market in 2015. We rely on a difference-and-differences setup, augmented with elements of a discontinuity-in-time design, to identify the causal impact of rent control on controlled and uncontrolled prices, land values, and the short-run supply of (rental) housing. We exploit an exception for newly built units and compare these units to young regulated units in order to measure the relative effect of the regulation on these groups. We are able to decompose this total effect into a negative effect on regulated and a positive effect on unregulated units, by exploiting spatio-temporal variation in treatment and the _ne-grained temporal variation of the data. We document positive effects on rents and prices of unregulated units and negative effects on regulated units. Intra-market variation is not available for identifying effects on land values and supply. We thus use propensity score weighting and trimming for selecting comparable treatment and control units. We find a robust positive impact of the regulation on land values that is qualitatively and quantitatively in line with the results for rents. We then document that the rent control regime led to more demolitions of small residential units (single- and two-family homes demolished with the purpose of making room for a new residential building), but we do not find an effect for larger buildings. We take this as a first sign of positive long-run supply effects. We also provide evidence that landlords more often chose to sell rather than let vacant rental units and that maintenance effort decreased under rent control. Overall, these results _t the predictions of a standard comparative-static representation of a second-generation rent control, which sheds a more favorable light on rent control. |
| Keywords: | Housing policy,rent control,rental housing,Germany |
| JEL: | D2 D4 R31 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc18:181625&r=ure |
| By: | Rickard Engström; Söderberg Inga-Lill |
| Abstract: | The purpose of the paper is to investigate the effects of a number of broker characteristics – gender, age, previous experience as a real estate broker on the housing market as well as activity on a specific local business market – for different disciplinary sanctions issues by the The Swedish Estate Agents Inspectorate (FMI) between 2000 and 2016. FMI includes a Disciplinary Board, which consists of members appointed by the Government. The supervision entails ensuring that real estate brokers fulfil their obligations in accordance with the Swedish Estate Agents Act. The FMI's supervision can lead to a decision that the estate broker should be removed from the register or that the estate agent should be issued a disciplinary reminder or a warning. The reasons for the disciplinary sanctions differ and the study investigates factors possibly related to different types of complaints resulting in a disciplinary reminder or a warning.The study relies on data from FMI consisting of the collected decisions on sanctions issued 2000-2016. The number of registered brokers went from 4,574 to 6,910 during the period, and the complaints from 253 to 453. However, the number of disciplinary reminders, warnings or removal from the register stayed relative stable with an average of 65. Statistical methods are used to investigate the correlation between broker characteristics and the reasons for complaints leading to sanctions. |
| Keywords: | monitoring; Real Estate Broker |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_307&r=ure |
| By: | Marcelo Cajias; Philipp Freudenreich; Anna Heller; Wolfgang Schaefers |
| Abstract: | In this paper we analyze the liquidity (time on market) of rental dwellings and its determinants for different liquidity quantiles in the largest seven German cities. The determinants are estimated using censored quantile regressions in order to investigate the impact on very liquid to very illiquid dwellings. We use micro data to examine the time on market for about 400,000 observations from the first quarter of 2013 to the second quarter of 2017. Hedonic and socioeconomic characteristics as well as spatial gravity variables and various fixed effects are used as exogenous determinants. For almost all regression coefficients we find consistent signs across all quantiles of the time on market distribution, i.e. the proportional hazard assumption, underlying the Cox model, is not violated. However, we find substantial differences in the magnitude of the regression coefficients over the liquidity quantiles. This is the first paper, to the best of our knowledge, to apply censored quantile regressions to the liquidity analysis on the real estate market. |
| Keywords: | Censored quantile regressions; Cox-hazard; German housing; Real estate liquidity; Time on Market |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_203&r=ure |
| By: | Li, Leona Shao-Zhi (Faculty of Business Administration, University of Macau); Cui, Chuantao (School of Economics, Sichuan University) |
| Abstract: | Using a balanced panel of manufacturing firms from China between 2007 and 2013, we estimate that being connected to a high-speed rail system leads to 9.5% reduction in local firms' input inventory spending. The e ect is stronger for downstream industries and private enterprises. A back-of-envelope calculation suggests that each dollar of HSR investment reduces input inventory stock by 12 cents, which is significantly larger than the e ects found in previous studies based on highway or road investment. Declines in transportation and communication cost, as well as agglomeration e ect are identified as plausible mechanisms. Our findings reveal a micro channel through which improved transport infrastructure brings about economic gains, and contribute to the cost-benefit assessment of high-speed rail investment. |
| Keywords: | Transport infrastructure; high-speed rail; firm performance; inventory; China |
| JEL: | D21 H54 O18 R4 |
| Date: | 2018–10–04 |
| URL: | http://d.repec.org/n?u=RePEc:xjt:rieiwp:2018-08&r=ure |
| By: | Yongzheng Liu (Renmin University of China); Bingyang Lv (Renmin University of China); Hang Tai (People’s Bank of China); Chenping Yang (Renmin University of China) |
| Abstract: | This paper explores how fiscal incentives affect capital tax decisions by local governments in the Chinese context. We develop a model in which local governments, facing different fiscal incentives, compete for mobile capital over corporate taxes. The key prediction of the model, borne out in data from Chinese cities over the years 20042013, is that an increase in the local corporate income tax-sharing ratio, proxying local fiscal incentives, makes city governments’ horizontal tax reactions stronger. Our results contribute to the fiscal federalism literature by providing evidence in support of the argument that fiscal incentives faced by local governments significantly shape their policy choices. Additionally, we provide explicit evidence on local tax competition within provinces in China, which has long been regarded as one of the driving forces of China’s rapid economic growth. |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1817&r=ure |
| By: | Xiao, Wei (Research Institute of Economics and Management, Southwestern University of Finance and Economics); Zhao, Guochang (Research Institute of Economics and Management, Southwestern University of Finance and Economics) |
| Abstract: | This paper investigates the effects of agricultural land on rural-urban migration and the labor market outcomes in the context of China. We employ the rural sample of the 2009 RUMiC data, which cover approximately 8000 rural households in 82 counties of China. We find that an increase in the agricultural land of a household tends to increase the household members’ propensity for migration for working in cities. We also find that an increase in land significantly decreases the number of days of migration, increases the number of days of farming work, and decreases the number of days of local non-farming work. More interestingly, the negative effect on time for local non-farming work is much larger than that for non-local non-farming work. The increase in the amount of agricultural land also pushes household members to move further. These results show us a new pattern different from the literature. To explain such a difference, we compare the effect of land among different age-groups and find that the positive link between agricultural land and rural-urban migration only exists for young people. Therefore, our results may reflect the change of the role of agricultural land over time. Our finding that less agricultural land hinders rural-urban migration suggests that, to help rural residents access opportunities in cities, governments should implement policies targeting households with less agricultural land. |
| Keywords: | Agricultural land, rural-urban migration, time allocation, China; Transport infrastructure; high-speed rail; firm performance; inventory; China |
| Date: | 2018–10–04 |
| URL: | http://d.repec.org/n?u=RePEc:xjt:rieiwp:2018-09&r=ure |
| By: | Junxue Jia (Renmin University of China); Siying Ding (Renmin University of China & Indiana University Bloomington); Yongzheng Liu (Renmin University of China) |
| Abstract: | China initiated a major decentralization reform in recent years to simultaneously improve tax autonomy and scal transfers toward county governments. We use an instrumental variables strategy and a county-level panel dataset for years 1995-2014 to examine the incentive eects of the reform. We nd that the reform signicantly reduced tax enforcement of the county governments, for which the result appears to be driven by the opposing incentive eects of the increased local tax autonomy and scal transfers. In particular, while the reform motivated county governments to improve tax enforcement by enhancing local tax autonomy, it dampened local tax enforcement because of the increased scal transfers. Our ndings provide support to the argument in the decentralization literature that improving local tax autonomy, compared to increasing scal transfers, is a more eective way to nance local governments while strengthening local scal discipline. |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1819&r=ure |
| By: | Melanie Franke; Claudia Nadler |
| Abstract: | Improving the energy efficiency in the real estate sector plays a decisive key factor in the German energy and climate policy. In order to meet the EU-targets of reducing the energy consumption as well as CO2 emissions energy performance certificates (EPCs) have been introduced to prove the energy efficiency of commercial and residential properties. The aim of the present work is to determine the role of EPCs in the rental decision-making process by investigating their influence on tenants' preferences in the housing market. In this study, we apply a choice-based conjoint (CBC) analysis to investigate the relative importance of different housing characteristics including the apartments' energy efficiency represented by the buildings' EPC. The results suggest an ongoing change in the perception of energy efficiency in the housing market, as the attribute received the third highest importance score after monthly rent and residential area. Moreover, the analysis of different respondent segments provides new insights into the importance of EPCs that strongly depended on the awareness and conscious consideration of the provided information. Thus, the results emphasize a novel perspective on EPCs in the housing market and point out crucial factors for its success as a marketing tool. |
| Keywords: | CBC; Choice-based Conjoint analysis; energy performance certificates; EPC; Housing Market; Rental decision-making process |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_59&r=ure |
| By: | Burmaa Jamiyansuren |
| Abstract: | We have learned many practices of how other leading countries develop and implement their housing policies, especially in China and Malaysia. The essential parts of a multi-faceted housing policy is to provide housing for low-income areas and to determine housing policy by assessing supply, demand and mortgage rates. At the initial stage of housing market, the price is unstable, is in turmoil and is not regulated. At the second stage, a price stabilization program and supply of low-income area housing programs are implemented. In UB city of Mongolia, we are in greatest need of housing policy development as the majority of the cities population live in ""ger district"", these ""gers"", a traditional yurt, are not supplied with heating, plumbing or hot water. In order to stay warm in one of the coldest cities in the world, those people have to use coal extensively for home heat and cooking, causing extremely dangerous levels of air pollution in the city. It shows that we are in need of excellent housing policy to be developed and implemented immediately. The first part of the paper will discuss about applying the study of Chinese housing policy in Mongolia and reveal that our housing market is frozen, but has excess supply and is in high need of housing price and regulation. The second part of the paper will discuss about how bench marking from the housing policies of European countries were not suitable for Mongolia |
| Keywords: | housing bubble and dip; housing market segmentation; housing policy for heating and cooling down; housing price stabilization; multi-faceted housing policy |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_329&r=ure |
| By: | Nirav Mehta (University of Western Ontario); Ralph Stinebrickner (Berea College); Todd Stinebrickner (University of Western Ontario) |
| Abstract: | This paper examines academic peer effects in college. Unique new data from the Berea Panel Study allow us to focus on a mechanism wherein a student’s peers affect her achievement by changing her study effort. Although the potential relevance of this mechanism has been recognized, data limitations have made it difficult to provide direct evidence about its importance. We find that a student’s freshman grade point average is affected by the amount her peers studied in high school, suggesting the importance of this mechanism. Using time diary information, we confirm that college study time is actually being affected. |
| Keywords: | Peer effects; Time use; Higher education; Mechanisms |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:uwo:hcuwoc:20184&r=ure |
| By: | Felbermayr, Gabriel; Gröschl, Jasmin; Sanders, Mark; Schippers, Vincent; Steinwachs, Thomas |
| Abstract: | Climate research suggests that global warming will lead to more frequent and more extreme natural disasters. Most disasters are local events with effects on local economic activity. Hence, assessing their economic impacts with the help of econometric country-level analysis may lead to biased results. Moreover, correct identification is further complicated by the possibility that local shocks shift production and consumption to neighboring locations. In this paper, annual night-time light emission data covering about 24,000 grid cells for the years 1992-2013 are matched to geocoded information on meteorological and geological events. Spatial econometric panel methods are applied to account for interdependencies between locations. Interpreting variation in light emissions as reflecting changes in economic activity, findings convey evidence for pronounced local average treatment effects and strong spatial spillovers, particularly for weather shocks. Moreover, substantial heterogeneity across income groups and regions is identified. |
| Keywords: | natural disaster and weather shocks,night-time light emission,spatial spillovers,grid cell analysis |
| JEL: | F15 O18 O44 Q54 R12 F15 O18 O44 Q54 R12 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc18:181556&r=ure |
| By: | Bijwaard, Govert (NIDI - Netherlands Interdisciplinary Demographic Institute); Schluter, Christian (University of Southampton) |
| Abstract: | Consider the duration of stay of migrants in a host country. We propose a statistical model of locally interdependent return hazards in order to examine whet- her interactions at the level of the neighbourhood are present and lead to social multipliers. To estimate this model we develop and study two complementary estimation strategies, demonstrate their good performance while standard non-spatial estimators are shown to be heavily biased. Using a unique large administrative panel dataset for the population of recent labour immigrants to the Netherlands, we quantify the local social multipliers in several factual and counterfactual experiments, and demonstrate that these are substantial. |
| Keywords: | interdependent hazards, local interaction, social multipliers, return migration |
| JEL: | C41 C10 C31 J61 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11780&r=ure |
| By: | John Duca; Patric Hendershott; David Ling |
| Abstract: | In recent decades, problems in real estate have contributed much to U.S. business downturns and have challenged financial stability. Collapses in commercial real estate (CRE) prices sharply reduced construction outlays and—via their accompanying loan losses—induced bank credit crunches, thereby playing a large role in the recessions of 1990 and 2007-09 and the sluggish recoveries from them. Using quarterly data spanning a half century, our study begins by estimating how changes in taxes, interest rates, credit conditions, and capital requirements have affected CRE valuations for the four main types of commercial property. Using data covering several decades is needed because CRE activity tends to experience long cycles. We assess the extent to which CRE valuations respond to changes in macro-prudential capital requirements and real interest rates. We also develop models of office rents, vacancies and construction. Our results indicate that while current high valuations of CRE primarily reflect a low real interest rate environment, the impact on office construction has been muted by less pronounced changes in existing property prices relative to replacement costs. |
| Keywords: | cap rates; CRE rent; Office Construction; vacancy rates |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_62&r=ure |
| By: | Daniel Gama e Colombo (National Institute of Educational Studies and Research Anísio Teixeira, Brazil); Jorge Martinez-Vazque (International Center for Public Policy, Georgia State University, USA) |
| Abstract: | This paper examines the impact of fiscal decentralization on both public investment in innovation (measured as the share of research and development - R&D - spending in total government budget) and on the intensity of basic research within the public R&D bundle. We present a theoretical model where a ‘benevolent government’ invests in R&D aiming at maximizing net income available in the country (central government) or in the respective region (subnational government), where states compete to attract capital investment, and where R&D results are subject to interregional knowledge spillovers. The model predicts that decentralization leads to a lower level of public spending on innovation, and to a lower share of basic research in government R&D budget. The implications of the model are empirically tested utilizing country aggregate data. We find evidence that expenditure decentralization leads to lower intensity of basic research within public R&D, and that both revenue and expenditure decentralization negatively affect the size of innovation spending. The findings suggest that fiscal decentralization policy, expected to be beneficial in many other dimensions, should be accompanied by measures to compensate for the otherwise decrease in innovation spending, and that the assignment of expenditure responsibilities should have central government play a greater role in financing and carrying out basic research. |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1820&r=ure |
| By: | Odolinski, Kristofer (CTS - Centre for Transport Studies Stockholm (KTH and VTI)); Yarmukhamedov, Sherzod (The Swedish National Audit Office); Nilsson , Jan-Eric (CTS - Centre for Transport Studies Stockholm (KTH and VTI)); Haraldsson, Mattias (CTS - Centre for Transport Studies Stockholm (KTH and VTI)) |
| Abstract: | In this study, we analyze the difference between survival and corner solution models in estimating the marginal cost of reinvestments. Both approaches describe the reinvestment process in rather intuitively similar ways but have several methodological distinctions. We use Swedish railway data on track segment and section levels over the period 1999-2016 and focus on reinvestments in track superstructure. Results suggest the marginal costs from survival and corner solution models are SEK 0.0041 and SEK 0.0103, respectively. The conclusion is that the corner solution model is more appropriate, as this method consider the impact traffic has on the risk of reinvestment as well as on the size of the reinvestment cost. The survival approach does not consider the latter, which is problematic when we have systematic variations in costs due to traffic and infrastructure characteristics. |
| Keywords: | railways; reinvestment; renewal; survival model; corner solution model; two-part model; marginal cost |
| JEL: | C41 H54 L92 R48 |
| Date: | 2018–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2018_020&r=ure |
| By: | Isabelle CHORT; Philippe DE VREYER; Thomas ZUBER |
| Abstract: | This study explores internal migration patterns of men and women using individual panel data from a nationally representative survey collected in two waves, in 2006-2007 and 2010-2012, in Senegal. The data used are unique in that they contain the GPS coordinates of individuals' location in both waves. We are thus able to precisely calculate distances and map individual moves, avoiding limitations and constraints of migration definitions based on administrative units. Our results reveal major differences across gender. Women are found to be more likely to migrate than men. However, they move less far and are more likely to migrate to rural areas, especially when originating from rural areas. Education is found to increase the likelihood of migration to urban destinations, especially for women. An analysis of the motives for migrating confirms the existence of gendered migration patterns, as female mobility is mostly linked to marriage while labor mobility is frequently observed for men. |
| Keywords: | Internal Migration ; Gender Inequalities ; Rural-Urban Migration ; Senegal |
| JEL: | J16 O15 O18 R23 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:tac:wpaper:2018-2019_1&r=ure |
| By: | Mishal Ahmed (School of Economics, Georgia Institute of Technology, 221 Bobby Dodd Way, Atlanta, GA 30313, USA); Erik Johnson (University of Alabama, Culverhouse College of Business, Department of Economics, Finance and Legal Studies, Tuscaloosa, AL 35487, USA); Byung-Cheol Kim (University of Alabama, Culverhouse College of Business, Department of Economics, Finance and Legal Studies, Tuscaloosa, AL 35487, USA) |
| Abstract: | Using detailed trip-level taxi and for-hire-vehicle data and new incident-level complaints data, we study how the entry of Uber and Lyft has affected the quality of taxi services in New York City. In a panel setting with 263 NYC taxi-zones over the time period from 2014 to 2017, we find that increased competition measured by the number of daily Uber/Lyft trips in a given taxi-zone has led to more complaints regarding a variety of service quality dimensions such as unsafe driving, rude behavior and fare refusal. Our results are robust to accounting for potential simultaneity in the determination of complaints and Uber and Lyft penetration. |
| Keywords: | ride-sharing applications; taxi; competition; service quality |
| JEL: | D01 L91 O18 R4 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:1816&r=ure |
| By: | Marte C.W. Solheim; Ron Boschma; Sverre Herstad |
| Abstract: | In this paper, we investigate whether the composition of experience-based knowledge accumulated by firms in urban and rural locations is reflected in the novelty content of their innovations. Looking at the manufacturing industry, and using Norwegian Linked Employer- Employee register data (LEED) merged with Community Innovation Survey (CIS) data, we find that unrelated experience variety within firms increases the probability of radical innovation, independently of firms' location, whereas related variety increases the probability of incremental innovation in large-city regions. These results demonstrate that innovation capacity cannot be understood from the single perspective of R&D efforts and strategy as it also depends on experiences accumulated in 'entire organizations' and the locations in which accumulation occurs. Moreover, they suggest that for manufacturing firms, urban locations are not hot spot for radical change. Instead, they support incremental innovative activities by facilitating effective sharing of knowledge between related sectors. |
| Keywords: | immigration, Diversity, Innovation, Related Variety, Unrelated Variety, Urban, Rural |
| JEL: | O31 P25 O15 O14 J24 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1836&r=ure |
| By: | De Groote, Olivier; Declercq, Koen |
| Abstract: | We analyze the impact of choosing for an elite school on high school graduation in an early tracking system. We apply our analysis to Belgium, where schools can offer one or more tracks, but elite schools offer only the academic track. We derive a non-significant average effect, but there is substantial heterogeneity. Students who self- select into elite schools experience a 4 percentage point drop in their chances to obtain a degree. This can be explained by track switching. Students with a high preference for elite schools do not want to leave this school to sort into a better suited track. |
| Keywords: | elite schools; early tracking; marginal treatment effects |
| JEL: | C31 I28 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:32967&r=ure |
| By: | Lok Man Michel Tong; Gianluca Marcato |
| Abstract: | We build a two-stage competing risk model for pricing four types of early Termination options written on commercial mortgages: default vs restructuring and prepayment vs defeasance as two pairs of competitions. It is the first study to consider restructuring as a “competitor” with default. The key feature of our model is to introduce collateral underlying property market supply constraints into a property Price process which would determine values of early termination options. Our simulations find out greater probability to restructure mortgages by reducing interest and extending maturity and to prepay in cash. We also prove that tightening property supply constraints pushes up values of default, restructuring and prepayment by pricing their analogous options: default (a series of compound European Call on Put options), mortgage restructuring (an exchange option between mortgages with different cash flow structures), prepayment in cash (a series of compound European Call on Call options),and defeasance (an exchange option of more liquid assets with less liquid ones)in different scenarios. Therefore, we suggest controlling property supply constraints as an alternative risk management measure for mortgage markets. |
| Keywords: | Defeasance; Mortgage Default; Prepayment; Property Supply Constraints; Restructuring |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_300&r=ure |
| By: | Dorinth van Dijk; David Geltner; Alex van de Minne |
| Abstract: | In this paper we disentangle reservation prices of buyers and sellers for commercial real estate at the city level. To do so, we further develop and extend the cite{fisher03,fisher07} methodology to a repeat sales indexing framework. This has the advantage that it takes care of all unobserved heterogeneity, which is an important consideration in commercial real estate. Furthermore, it allows for the construction of supply and demand indexes without the need for many property characteristics or assessed values. A key innovation in our methodology, which also enables granular index production, is our use of a Bayesian, structural time series model for index estimation. By introducing these new methodological developments, we are able to estimate reliable, robust supply and demand indexes for all major metropolitan areas in the US. Here we focus on two very different urban markets: New York and Phoenix. Consistent with the notion of pro-cyclical liquidity, we find that buyers' reservation prices move much more extremely and earlier than sellers' reservation prices. Our results show that the demand indexes in both New York and Phoenix went down a full year earlier than the supply indexes during the crisis. |
| Keywords: | Commercial Real Estate; Liquidity; Price index |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_41&r=ure |
| By: | Umut M. Dur; Parag A. Pathak; Fei Song; Tayfun Sönmez |
| Abstract: | This paper analyzes the properties of the Taiwan mechanism, used for high school placement nationwide starting in 2014. In the Taiwan mechanism, points are deducted from an applicant's score with larger penalties for lower ranked choices. Deduction makes the mechanism a new hybrid between the well-known Boston and deferred acceptance mechanisms. Our analysis sheds light on why Taiwan's new mechanism has led to massive nationwide demonstrations and why it nonetheless still remains in use. |
| JEL: | I20 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25024&r=ure |
| By: | Song Zhang |
| Abstract: | Shops are important facilities that provide people with goods and services. Just like many other commercial sectors, shops are inclined to concentrate or agglomerate within a certain area. Retail mix measures the diversity of shop types in a shopping district, which is an important factor that influences the attractivity of a shopping district. A proper retail mix improve the attractivity of a shopping district to consumers and thus improve sales turnover of shops in this shopping district. According to theory, this benefit brought by retail mix is expected to be capitalized into the rents of shops in corresponding shopping districts. However, we know little empirical evidence about how retail mix is going to affect the attractivity of shopping districts and thus rents of retail properties in these districts. We estimate the relationship between retail mix and retail rents by using a dataset containing information about rents of 10,808 retail transactions spreading from 1996 to 2011 in the Netherlands. We construct shopping districts based on the job density of retail sectors year by year and use Herfindahl Index to measure the level of retail mix in a certain shopping district. Our empirical results show that retail mix has a strong positive relationship with retail rent, after controlling for other variables. This result suggests the importance of building a shopping district with more diverse shop types and choices of goods and services. |
| Keywords: | Agglomeration Economies; retail mix; retail rent |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_319&r=ure |
| By: | Johansson , Fredrik (CTS - Centre for Transport Studies Stockholm (KTH and VTI)) |
| Abstract: | Planning for bicycle traffic is getting increasingly popular in cities, often motivated by that it is beneficial for the environment and the public health, and that it is a space efficient mode of transport. However, research on bicycle traffic has traditionally focused mainly on safety and mode choice, and less on traffic engineering topics such as investigating travel times, delays, and capacities. This study contributes to filling this gap by presenting a general method to estimate a volume -- delay function for bicycle traffic based on point measurements of passage time, speed, and lateral position, and, using estimates of the value of time in bicycle traffic, estimating the marginal cost of the interaction delay. The proposed method is based on an established method to estimate the distribution of desired speeds, and extends this to estimate the delay of the observed cyclists. The method is demonstrated using a data set from a bridge in Stockholm, Sweden, showing that there is significant interaction delay and associated cost even for relatively modest volumes, implying that interaction delay and its cost should be considered when planning for bicycle traffic. |
| Keywords: | Bicycle traffic; Marginal cost; Delay |
| JEL: | R40 R41 |
| Date: | 2018–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2018_018&r=ure |
| By: | Francesco Flaviano Russo (Università di Napoli Federico II and CSEF) |
| Abstract: | Increased immigration in Italy has been coupled with a change in the composition of the stock of immigrants by nationality. Migrants that come from different coun- tries and cultures bring with them different languages, habits, norms, religions and, in general, interact differently with the local population, thereby generating different re- sponses to immigration. I study the relationship between this changes in the identity of the migrants and the electoral outcomes in Italy computing several measures of distance between immigrants and natives with respect to the language spoken, to religion and to genetic factors that, being correlated with the vertical transmission of norms and values, proxy for a wide range of both cultural and individual traits. I find that the increased distance between immigrants and natives is associated with more votes for nationalist, anti-immigration political parties. |
| Keywords: | Elections, Culture, Language, Religion. |
| JEL: | D72 J61 |
| Date: | 2018–10–13 |
| URL: | http://d.repec.org/n?u=RePEc:sef:csefwp:511&r=ure |
| By: | Silvia Rocchetta; Andrea Mina |
| Abstract: | This paper explores the effect of different regional technological profiles on the resilience of regional economies to exogenous shocks. It presents an empirical examination of the determinants of resilience through panel analyses of UK NUTS III level data for the 2004-2012 period. The results indicate that regions endowed with technologically coherent -- and not simply diversified-- knowledge bases are better prepared to face an unforeseen downturn and display adaptive resilience. Moreover, local economies tend to be more adaptable if they innovate in sectors with the strongest growth opportunities, even though firms' net entry does not appear to contribute significantly towards resilience. |
| Keywords: | resilience, adaptation, innovation, technological variety, financial crisis |
| Date: | 2018–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2018/30&r=ure |
| By: | Stefano BRESCHI; Francesco LISSONI; Ernest MIGUELEZ |
| Abstract: | Based on an original dataset linking patent data and biographical information for a large sample of US immigrant inventors with Indian names and surnames, specialized in ICT technologies, we investigate the rate and determinants of return migration. For each individual in the dataset, we both estimate the year of entry in the United States, the likely entry channel (work or education), and the permanence spell up to either the return to India or right truncation. By means of survival analysis, we then provide exploratory estimates of the probability of return migration as a function of the conditions at migration (age, education, patenting record, migration motives, and migration cohort) as well as of some activities undertaken while abroad (education and patenting). We find both evidence of negative self-selection with respect to educational achievements in the US and of positive self-selection with respect to patenting propensity. Based on the analysis of time-dependence of the return hazard ratios, return work migrants appear to be negatively self-selected with respect to unobservable skills acquired abroad, while evidence for education migrants is less conclusive. |
| Keywords: | immigration, innovation, inventor data, patent data |
| JEL: | F22 O15 O31 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2018-20&r=ure |
| By: | Marc Francke |
| Abstract: | The paper shows that the average periodic return decreases with the holding period, both for residential real estate in the Netherlands and England and Wales, as well as for commercial real estate in the United States: The longer the holding period is, the lower on average the periodic return is.The literature provides several reasons why the average periodic returns are higher for shorter holding periods. The first reason is the disposition effect: investors tend to sell more quickly a `winner' and to hold onto a lower-performing property longer. The second reason is that there might be improvements just after purchasing the property. The first implication of this finding is that the widely used repeat sales (RS) model is misspecified, because it does not differentiate between holding periods. The second implication is that systematic revisions in RS indices are due to the changing distribution of holding periods over time. This link has so far not been provided in the RS literature on index revision.This paper proposes an adjustment to the RS model by including dummy variables for each holding period, apart from a baseline holding period to avoid perfect collinearity. The estimated price index represents the left-out holding period. This model solves the misspecification issue. Moreover, it is shown that (systematic) index revisions are much smaller in RS models including holding period dummy variables compared to a standard RS model. |
| Keywords: | holding period; index revision; property price indices; repeat sales |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_270&r=ure |
| By: | Gianluca Marcato; Rafal Wojakowski |
| Abstract: | Accessibility to homeownership in western countries, especially for middle to low income earners has decreased over time due to several factors such as stringent covenants, pressure of rental growth on household income expenditure and a negative gap between wage and house price growth. Moreover, young households face higher accumulated student loans and, in a steadily rising and strong rental market, they are not able to generate enough savings to cover the initial deposit necessary to become homeowners. We design an income sharing mortgage product where borrowers accept to pledge a portion of their future income to anticipate the time necessary to become homeowners by obtaining a higher LTV (up to 100%). Our analysis nds that this mortgage may be useful for lower income households in periods of higher uncertainty and that it may become less expensive in a high interest rate environment. Finally, this product also embeds an incentive to save, with potential benefits for the overall systemic risk of the banking sector. As a consequence we find that the defaultrisk is not higher than a plain vanilla mortgage with lower LTV. |
| Keywords: | Affordability; Borrowing Constraint; Economic Shocks; Mortgage Product; Risk Transfer |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_298&r=ure |
| By: | Robert Hill; Michael Scholz; Chihiro Shimizu; Miriam Steurer |
| Abstract: | Since 2012 Eurostat requires the national statistical institutes (NSIs) in all European Union (EU) countries to compute official House Price Indices (HPIs) at a quarterly frequency. Eurostat recommends computing the HPI using a hedonic method. Most NSIs have followed this advice, although they differ in their choice of method. Some NSIs use stratified medians instead of hedonic methods. We evaluate the theoretical and empirical properties of these methods. Of particular concern is the comparability of the HPIs across countries when computed using different methods. Our empirical comparisons use detailed micro-level data sets for Sydney and Tokyo, containing about 867,000 actual housing transactions. All the hedonic methods perform better than stratified medians. The hedonic methods generate quite similar results, except when applied to new dwellings in Tokyo. This finding shows that the choice of hedonic method can become important for smaller data sets. Also, the widely used hedonic repricing method becomes unreliable when the reference shadow prices are not updated frequently. |
| Keywords: | Average characteristucs; Hedonic imputation; House price index; Repricing; Rolling time dummy |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_201&r=ure |
| By: | Stephen Roulac |
| Abstract: | It is broadly recognized that real estate has been subjected to a veritable tsunami of change forces dramatically impacting and buffeting:Property use - Air BnB; Retail shopping - Amazon; Workspaces - WeWork and other co-working models; Capital access - FinTech innovations and crowd funding; Urbanization - prospectively to be accelerated by autonomous vehicles and exemplified by proliferating high-rise construction.These changes are not necessarily reflected in the focus of research topics investigated by the property research community. Mainstream real estate textbooks are even more innocent of these forces and their implications. Consequently, the academy is not well serving students studying property, as learning resources are predominantly anchored in conventional practices applicable in the pre-innovation, pre-information era.This paper explores how the implications of change influence the concerns of property scholars, generally, and the contents of property curriculums, specifically. The study emphasis is on textbooks targeted to the introductory real estate principles/overview, this research revisits, updates and extends two significant prior research studies, which were published in Journal of Real Estate Literature a more than two decades ago (“Foundation of the Knowledge Structure: Review of Real Estate Principles Texts, Journal of Real Estate Literature, January 1994: 37-65) and a decade plus ago (“Shifting Foundations of the Real Estate Knowledge Structure: Revisiting the Review of Real Estate Principles Texts,- Journal of Real Estate Literature, Vol. 12, No. 2, 2004: 237-265). |
| Keywords: | Education; Property; Real Estate; Textbooks |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_339&r=ure |
| By: | David Mcilhatton; Jim Berry; David Chapman; Pernille Christensen |
| Abstract: | In recent times, attacks on crowded places such as Helsinki in August 2017, Las Ramblas, Barcelona in August 2017, London Bridge and Borough Market in June 2017, Manchester Arena in May 2017, Stockholm in April 2017, Westminster Bridge in March 2017, Berlin Christmas Market in December 2016 and Nice in July 2016, have powerfully illustrated the devastating impact terrorism can have on society. The purpose of this research, the first such study of its kind, is concerned with understanding how the real estate development process is used, and could be used, as the foundation of counter terrorism protective security at crowded places of all sizes. It is designed to develop knowledge of the current considerations of counter terrorism protective security across core sectors involved in the real estate development process, the current barriers to adoption of such measures, and the methods which could potentially incentivize counter terrorism protective security. in real estate development. The research is based on 134 interviews carried out in Belfast, London and Manchester in the UK; New York City, Washington DC and Oklahoma City in the US; and Sydney, Canberra and Melbourne in Australia in 2017. |
| Keywords: | Asset Management; Terrorism |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_308&r=ure |
| By: | Sarah Miller; Cindy K. Soo |
| Abstract: | This paper provides new evidence on the role of neighborhood in the financial decisions and outcomes of low-income borrowers. We link participants in the Moving to Opportunity experiment to credit reports and "alternative" credit bureau data that tracks payday loan usage. We find that participants who were randomly selected to receive a voucher experienced better access to credit in adulthood; we also find evidence that, among some subgroups, moving to a lower poverty neighborhood reduced payday loan usage and delinquency behavior. We explore the mechanisms underlying our results by investigating the credit market behavior of peers, the presence of banks and payday loan stores, and approval rates in the neighborhoods in which MTO participants live as adults. Our analysis suggests that the presence of payday loan stores and peer behavior play an important role in the observed improvements in credit market outcomes. |
| JEL: | D12 D14 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25023&r=ure |
| By: | Mi Diao; Yi Fan; Tien Foo Sing |
| Abstract: | Singapore's government imposes demand restrictions in 2011 and 2013 disallowing Singaporean residents to concurrently own a private housing unit and a resale public housing flat. The restrictions, however, do not affect public housing owners, who fulfill the minimum occupation period requirement. This paper uses the policy shocks to set up a quasi-experiment to test if differential housing purchasing behaviors exist between the private housing and the public housing buyers. Using private housing transaction data between 2005 and 2015, we find that prices decline by 2.4% and 1.8% for the private housing owners’ purchases after the policy took effects in 2010 and 2013, respectively, relative to public housing owners' purchases. Public housing owners could be motivated by housing wealth accrued to their existing flats to pay higher prices in their private housing purchases. We also find stronger treatment effects in resale market, core central region, medium to high-end market, and market with large size units. |
| Keywords: | Demand restrictions; government interventions; housing wealth; private housing market; resale public housing market |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_32&r=ure |
| By: | Dorn, Florian; Fuest, Clemens; Immel, Lea; Neumeier, Florian |
| Abstract: | This paper studies the impact of economic inequality on political polarization. Using a unique dataset covering different measures of regional income inequality as well as federal and state election outcomes at the county level in Germany, we investigate whether inequality influences the share of votes for right-wing and left-wing extremist parties using instrumental variable estimation. Our results suggest that an increase in income inequality has a sizeable influence on the support for extremist parties. The poorer a county is compared to the national average, the higher is the share of votes both nationalist and leftist parties receive. Our findings thus indicate that the rise in economic inequality may be a threat to political stability. |
| Keywords: | Inequality,political polarization,extremist voting,Germany |
| JEL: | C26 D31 D63 D72 R1 C26 D31 D63 D72 R1 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc18:181598&r=ure |
| By: | Rosli Said; Nasir Daud; Tham Kuen Wei |
| Abstract: | Non-performing property loans pose a huge threat to any country’s economic stability. This paper examines the effects and relationships of macroeconomic factors in determining the possible outcomes of non-performing real estate loans in Malaysia. It also examines some banking sentiments in their receptivity towards the conditions in terms of number of loans approved, rejected and applied. Using Stepwise Regression Approach, it was shown that Gross National Income responded significantly negative to the number of Non-performing Property Loans in Malaysia relatively close to the study conducted in Greece where GDP growth seems to be the dominant and main determinant in terms of non-performing loans compared to other macroeconomic determinants. At the same time, Unemployment responded significantly positive, where levels of unemployment would cause the inability of private individuals to repay their loans or debts. At the same time, sentiments of consumers shown that Applications for Non-residential Loans decreases as Non-performing Property Loans increases. Surprisingly, this study also shows that as Non-Performing Property Loans increases, the number of Loans Approved for Non-Housing Property Loans increases as well. This shows that Banking Sentiments in loan approvals are not affected by the conditions of economy when it comes to Non-Residential Properties. |
| Keywords: | Macroeconomic Determinants; Non-performing Property Loans; Stepwise Regression |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_328&r=ure |
| By: | Qi, Shusen; de Haas, Ralph (Tilburg University, Center For Economic Research); Ongena, S.R.G. (Tilburg University, Center For Economic Research); Straetmans, Stefan |
| Abstract: | We study how information sharing between banks influences the geographical clustering of branches. We construct a spatial oligopoly model with price competition that explains why bank branches cluster and how the introduction of information sharing impacts clustering. Dynamic data on 59,333 branches operated by 676 banks in 22 countries between 1995 and 2012 allow us to test the hypotheses derived from our model. We find that information sharing spurs banks to open branches in localities that are new to them, but that are already well served by other banks. Information sharing also allows firms to borrow from more distant banks. |
| Keywords: | branch clustering; informatio sharing; spatial oligolopy model |
| JEL: | D43 G21 G28 L13 R51 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:1e778553-0ab1-43c2-90ba-a306a5059ff0&r=ure |
| By: | Nengeze, Munatswi |
| Abstract: | This paper explores administrative challenges that developing countries face in property tax administration. It is internationally acknowledged that local authorities play a vital role in enhancing a country’s economic growth and provision of public goods. Their activities rely on revenue collection. It is therefore in the public interest and the interest of all governments to support their activities. The author identified that the main source of revenue for the City of Harare is property tax. Property tax has the potential to perform better given the boom in urban population. Despite the potential of property tax, it has not been able to generate more revenue because local authorities lack capacity and face a number of challenges. This paper argues that, in addition to solutions intended to resolve the usual technical and political difficulties associated with property taxation, it is crucial for Harare to improve systems for property taxation. There is a need to invest in information technology, including the use of digital technology, electronic billing and payment systems. |
| Keywords: | Governance, |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:idq:ictduk:14087&r=ure |
| By: | Lars Vandrei |
| Abstract: | We analyze to what extend sales prices for residential housing prices reacttowards rent-price regulation. We do this exploiting a quasi-natural designin the German federal state of Brandenburg while using actual transactionprice data, provided by the committee of evaluation experts. Brandenburg announced and introduced both a capping limit for existing rental contracts as well as a price ceiling for new contracts for municipalities with ”tight housing markets” in 2014. Whether or not a municipality falls under this classification is based upon a region’s housing data that is translated into a specific score that ranges from 0 to 100. The regulations were introduced in municipalities with scores of above the average plus two standard deviations. We exploit this sharp cut-off point in a regression discontinuity design. First, we standardize prices in a hedonic regression model. Then we compare prices in regions that are located marginally above this threshold with prices in those slightly below. The analysis contains 15 municipalities in the treatment and 20 in the control group. An analysis of media citations shows that the public discussion of the two instruments did not start before the year 2013. We therefore compare a time frame before 2013 with one after 2014 to exclude anticipation effects. We expect to find no significant effects when we use a time-frame prior to media coverage of the regulations. When people are generally informed, however, apartment prices should be lower in regulated regions. |
| Keywords: | German housing market; regression discontinuity design; rent-price regulation; sales prices |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_321&r=ure |
| By: | Keeler, Zachary T.; Stephens, Heather |
| Keywords: | Environmental and Nonmarket Valuation, Rural/Community Development, Resource and Environmental Policy Analysis |
| Date: | 2018–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea18:274004&r=ure |
| By: | Hamed Ghiaie (Département d'économique, Université de Cergy-Pontoise); Jean-François Rouillard (Département d'économique, Université de Sherbrooke) |
| Abstract: | Alpanda and Zubairy (2016) examine the effects of permanent changes to four types of housing-related tax policies in the context of a multi-agent DGE model. They find long-run tax multipliers that range from -2.21 to -1.53. However, we find an error in their codes that has a significant impact on the size of these multipliers. We correct their error and re-simulate their model. The long-run multipliers we find are reduced almost in half—they now range from -1.25 to -0.84. We also com- pute short-run multipliers at a 20-quarter horizon and find much lower multipliers, ranging between -0.14 to -0.02. |
| Keywords: | Housing taxation, banking, dynamic general equilibrium. |
| JEL: | E62 G28 H24 R38 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:shr:wpaper:18-06&r=ure |
| By: | Chen Zheng; David Ling; Gianluca Marcato |
| Abstract: | Following the recent developments in the asset pricing literature of geographic diversification, we abandon classic theories based on information asymmetry and explain the short-run performance of REIT IPOs over history though an investor base mechanism. We analyse the US market and find evidence that issuers are less likely to underprice (or more likely to overprice) when the REIT is more diversified and therefore the investor base is bigger. Even if both types of diversification are significant, geographic diversification shows a stronger impact on initial returns than property-type diversification. Our argument and the deadweight cost theory complement each other as lower deadweight cost associated with the IPO weakens the influence of the geographic diversification on the initial returns of IPOs. Our results are robust to different measures of private market returns and time fixed effects. In the end we show that a Herfindahl index should be preferred as a measure of geographic diversification, which is not the case for property-type diversification. |
| Keywords: | Asset Type; Herfindahl Index; Investor Base; Ipos; REITs |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_299&r=ure |
| By: | Ksenija Bogosavljevic; Ken Johnson; Anita Pennathur |
| Abstract: | In residential real estate, sellers often revise their initial listing price. Our paper investigates the impact of such price changes on the final result of the sales transaction. Using a sample of single family home sales transactions in Palm Beach, Florida for the period 2006-2016, we find that 45% of transactions show a price change after the initial listing price. We examine both price change up and price change down on the probability of sale, time on market, and the selling price received by the seller. In our first set of estimations, we examine the impact of a price change on the probability of sale. We next employ Lewbel's (2012) two-stage least squares estimation to examine how the degree of overpricing impacts time on market and the sales price. Our results show that change in the list price, that is, not pricing correctly in the initial stage of the selling process is costly for the seller as it decreases the probability of sale, significantly increases the time on market, and also decreases the final sales price for the property. |
| Keywords: | Listing Price Change; Probability of Sale; Sales Price; Time on Market |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_325&r=ure |
| By: | Chasapopoulos, Panagiotis (Tilburg University, School of Economics and Management) |
| Abstract: | The dissertation consists of three empirical studies in the field of International Immigration. The first chapter examines whether the effect of cultural diversity on economic performance of European regions is influenced by the level of generalized social trust and individuals’ trust in public institutions. The second chapter investigates how the origin and the skill level of immigrants in European regions affect natives’ attitudes toward them. The last chapter examines the impact of international immigration on electoral support for the radical right in Dutch municipalities. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:d4a10f2a-c1a2-4edd-9887-203d697a5560&r=ure |
| By: | Stefan Borsky (University of Graz, Austria); Katja Kalkschmied (University of Graz, Austria) |
| Abstract: | The level of corruption differs not only between countries, but also between subnations within countries. In this paper, we analyze spatial interdependencies in corruption levels for a large sample of 1,232 subnations in 81 countries. Based on a spatial autoregressive model, which additionally corrects for spatial autocorrelation in the error term, we find that a subnation’s corruption level is positively affected by neighboring subnations’ corruption levels. This suggests that subnational corruption levels are strategic complements. Extending the core model and allowing for heterogeneous spatial interdependencies our results indicate that in particular high income subnations and subnations with a relative low corruption level tend to spill in space. This is due to their high degree of connectivity in terms of economic, sociocultural and political exchange with other subnations. Our findings underline the importance to consider not only a subnation’s own characteristics but also their degree of connectivity with other subnations when implementing effective anti-corruption policies on a local level. |
| Keywords: | Subnational corruption; heterogenous spatial impact; spatial econometrics |
| JEL: | C21 D02 D73 P48 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:grz:wpaper:2018-18&r=ure |
| By: | Ryan Chacon; Dan French; Kuntara Pukthuanthong |
| Abstract: | In this study, we examine the release of analysts’ net asset value estimates of firms and ask whether they transmit new information to security markets. We find that net asset value estimates do contain new information as measured both by abnormal returns and by abnormal share turnover. Our findings remain significant after controlling for concurrent analyst FFO forecasts, buy/sell recommendations, and price targets. Consistent with efficient information transmission, the information is absorbed quickly and permanently by market participants. Analysts of most companies seldom release definite net asset value estimates. The exception is real estate investment trusts (REITs), whose analysts regularly issue estimates of net asset values (NAV) based on the value of their underlying real estate portfolio. We are the first to our knowledge to examine whether analyst estimates of REIT NAVs transmit new information to securities markets. |
| Keywords: | Analysts; Information Content; REITs; Valuation |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_82&r=ure |
| By: | Boon Ping Calvi Chua; Seow Eng Ong |
| Abstract: | Discrimination is prevalent in the world. There are many pieces of research literature undertaken that studied the various forms of discrimination in the labour market. Discrimination occurs due to different reasons such as nationalities, skin colours, genders, performances, physically handicapped and looks. We used a unique dataset of over 1600 realtors working in two of the more established real estate agencies in Singapore to study whether beauty premium exists in this labour market. The study used commission data, from 2013 to 2016, the demographics, and photographs of all agents involved. We estimated the real estate agents’ look by applying golden ratio theory and a series of surveys conducted by the reviewers using the Likert scale. The study found that there was a compelling and negative correlation between beauty and commission. We further explore why beauty premium does not apply to this industry; we selected a smaller sample size of realtors, 93, and conducted a series of personality profiling tests to determine the traits that allowed them to perform well in the real estate industry. Our results showed that top realtors tend to display dominance, a little shy, higher educated, self-disciple and were more experience. |
| Keywords: | beauty; commission; labour discrimination; real estate agency; Real Estate Agents |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_305&r=ure |
| By: | Yadavalli, Anita; Delgado, Michael |
| Keywords: | Rural/Community Development, Research Methods/Econometrics/Stats, Environmental and Nonmarket Valuation |
| Date: | 2018–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea18:274490&r=ure |
| By: | Graham Squires |
| Abstract: | Institutions providing access to housing in all tenures have become further entrenched and exposed to financial risk. Literature on housing policy trends and financial risk cover drivers such as liberalisation, monetary approaches, innovation, political commitment, and asset management. A conceptual model is put forward for framing housing policy trends that engage with financial risk. This allows documentary analysis of national housing policy trends to be carried out in a taxonomy of financial risk sources, financial risk types, and financial risk measurements – focussing on UK, US, and China national cases. Qualitative primary findings are integrated from multiple key stakeholder interviewees in residential real estate, particularly those engaged with financial risks of housing policy in New Zealand. Findings show that contemporary housing policy trends have incentivised institutions to take on greater financial risk, whilst simultaneously institutions have encouraged financial risk exposure. Discussion centres on systematic and unsystematic risk ‘in’ the finance of housing policy trends, that often work counter-intuitively to the financial risk ‘of’ housing policy trends. Especially as there are financial risks of a housing policy trend that focus on a single tenure. Plus, there is tendency to focus on the downside financial risk of known probabilities, rather than seek out unknown upside financial risks that may have escaped detection. |
| Keywords: | Financial Risk; Housing Policy; Institutionalism; Residential Property |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_74&r=ure |
| By: | Karadja, Mounir (Department of Economics); Prawitz, Erik (Research Institute of Industrial Economics (IFN)) |
| Abstract: | We study the political effects of mass emigration to the United States in the 19th century using data from Sweden. To instrument for total emigration over several decades, we exploit severe local frost shocks that sparked an initial wave of emigration, interacted with within-country travel costs. Our estimates show that emigration substantially increased the local demand for political change, as measured by labor movement membership, strike participation and voting. Emigration also led to de facto political change, increasing welfare expenditures as well as the likelihood of adopting more inclusive political institutions. |
| Keywords: | Migration; Political change; Labor mobility; Economic history |
| JEL: | D72 J61 P16 |
| Date: | 2018–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1237&r=ure |
| By: | Dieter Rebitzer; Mark Renz; Martin Tomasson |
| Abstract: | “Mycelium is the network that a fungi has underground. This network connects all the fruit hats of the fungi that is spread out through the forest”Our approach is based on the idea of the mycelium, the transformation from single office headquarters to a decentralized connected network of offices embedded in the future smart city while at the same time forming it. This approach is of today new for both investors and potential users why Mycelium offers a first mover advantage where the investor will be a pioneer in a completely new type of real estate investment. A major focus on real estate in the last years have been on smart buildings, the problem is that most conventional approaches views a smart building as a structure filled to the max with the latest technology. This presents a problem otherwise small in the real estate market, lifetime. The technology invested in a building today will be outdated within 5 - 10 years rendering the smart building unsmart. The focus on smart buildings therefore needs to shift, from an economic perspective, to something more sustainable throughout time by substituting most of classic office buildings. In our paper we calculated the estimated yield rates, the space and money savings and the agility advantage through a comparison of the traditional office and Mycelium. Furthermore we make an outlook on the implementation in the smart city. |
| Keywords: | Future; Office Buildings; Smart City; Smart office; Sustainability |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_161&r=ure |
| By: | Mathieu Bunel (LARJE - Laboratoire de Recherches Juridique et Economique - Université de la Nouvelle-Calédonie, TEPP - Travail, Emploi et Politiques Publiques - CNRS - Centre National de la Recherche Scientifique - UPEM - Université Paris-Est Marne-la-Vallée); Samuel Gorohouna (LARJE - Laboratoire de Recherches Juridique et Economique - Université de la Nouvelle-Calédonie); Yannick L'Horty (TEPP - Travail, Emploi et Politiques Publiques - CNRS - Centre National de la Recherche Scientifique - UPEM - Université Paris-Est Marne-la-Vallée, ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12); Pascale Petit (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12, TEPP - Travail, Emploi et Politiques Publiques - CNRS - Centre National de la Recherche Scientifique - UPEM - Université Paris-Est Marne-la-Vallée); Catherine Ris (LARJE - Laboratoire de Recherches Juridique et Economique - Université de la Nouvelle-Calédonie) |
| Date: | 2018–09–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01879553&r=ure |
| By: | Carolyn W. Chang; Kian Guan Lim; Tien Foo Sing |
| Abstract: | This paper studies the optimal leverage strategies for REITs in three major Asian markets - Hong Kong, Japan, and Singapore, from 2001 to 2013. REITs are a real-estate-focused investment holding and management companies that are subject to the REIT rules with respect to tax transparency, earning distribution, real estate holding and leverage limit. REITs use relatively less debt than other real estate operating firms, after controlling for agency risks, dividend yields, market risks, and also property sector, country, and year fixed effects. We find that dividend payouts have no effect on the leverage strategies; and the tax ratio increases debt usage of REITs. We also analyse the liquidation costs and business uniqueness effects. We find real estate value to total firm value ratio, as a proxy of liquidation cost, has negative effects on debt ratios for both real estate firms. For the uniqueness reason, REITs with a high concentration of rental revenue stream are more vulnerable to liquidation risks, and thus are more likely to have lower debt ratio. |
| Keywords: | Capital Structure; Dividend Payout; Liquidation Value; REIT; Uniqueness of Business |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_71&r=ure |
| By: | Barriga-Cabanillas, Oscar |
| Keywords: | Productivity Analysis and Emerging Technologies, Industrial Org./Supply Chain Management, Demand and Price Analysis |
| Date: | 2018–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea18:274371&r=ure |
| By: | Annalisa Mastri |
| Abstract: | Many state and local agencies want to use evidence to make progress on improving their services but don’t know where to start. |
| Keywords: | SkillUp, Self-Sufficiency, Youth |
| JEL: | I J |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:6fa6042bf25748a497ab0f8bf90d9ef4&r=ure |
| By: | Pascal Baur |
| Abstract: | Corporate sales through mergers and acquisitions constitute a large marketss and are, thus, frequently examined in financial research. By the use of micro-level data from deal backgrounds, previous academic work depicted the bidding behavior and further peculiarities of competition and valuation in non-public takeover auction processes for a broad range of operating companies. The presented research provides an enhancement on the perspective of the previous contributions by adding the particular scope on real estate operating companies (REOCs) and real estate investment trusts (REITs), as well as an auction theoretic perspective. Specifically, it analyses valuation patterns in auction-like takeover deals and reports similarities and differences to prior evidence in that field. In accordance with earlier contributions, a hand-collected dataset of takeover deal-disclosure filings was used to assess the bidding behavior of potential buyers and the strategic interaction of buyers and sellers. Preliminary evidence suggests that heterogeneous types of buyers value real estate industry members differently when it comes to corporate sales and depicts characteristic patterns in valuation. The presented research may help to develop a deeper understanding of the strategic interactions in real estate corporate sales. From a practical perspective, the deal design in corporate sales appears to be of utmost importance. The implications are relevant for both, corporate governance and investment decision making. |
| Keywords: | Corporate Valuation; Heterogeneous Buyers; Mergers and Acquisitions in Real Estate; Takeover Auctions; Textual Analysis |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_337&r=ure |
| By: | Graeme Newell; Jufri Marzuki; Robin Goodchild; Jeremy Kelly |
| Abstract: | Improved real estate transparency is fundamental to successful strategic decision-making in the real estate investment sector. Using the JLL global real estate transparency index, countries are classified as high transparency, transparent, semi-transparent, low transparency and opaque. As well as the composite real estate transparency measure, the five real estate transparency sub-indices for investment performance measurement, market fundamentals, governance of listed vehicles, regulatory/legal and the transaction process are also produced. This paper assesses the dynamics, linkages and changes in these real estate market transparency sub-indices for 109 real estate markets over 2004-2016, comprising 88 emerging markets and 21 developed markets. This is also assessed in a regional and global real estate market context. Differences in these real estate transparency sub-indices between the emerging and developed markets are also highlighted. The ongoing real estate investment implications are also identified. |
| Keywords: | Developed and emerging markets; Dynamics and linkages; Jll; Real Estate Market Transparency; Real estate market transparency sub-indices |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_5&r=ure |
| By: | Rutledge, Zach; Kane, Tim |
| Keywords: | Household and Labor Economics, Research Methods/Econometrics/Stats, Rural/Community Development |
| Date: | 2018–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea18:273917&r=ure |
| By: | Christopher Kowalke |
| Abstract: | Investing in real estate through investment funds in many highly developed countries is extremely profitable and is becoming a viable alternative to investment in stocks. Investment funds allocating capital to real estate are also present in Poland. However, the Polish market is relatively underdeveloped. There are only a few funds of this type available, and capitalisation of these funds does not exceed a few hundred million zlotys. There are no REIT type investment funds, in their traditional form, on the Polish market, because of the missing legislation. However, an act is being prepared, which aims at regulating the functioning of REITs in Poland and facilitating a dynamic development of this form of capital allocation for individual investors.The aim of the first part of the article will be to present the current state of the Polish investment fund market, with funds allocating capital to real estate. Capitalisation of these funds, rates of return and possible reasons for the poor development of the Polish real estate investment funds market will be presented. The second part of the article will present the main provisions of the act, which is being prepared and aims at regulating the functioning of REIT funds in Poland, and the act’s objectives according to its authors. |
| Keywords: | rate of return; Real Estate Investments; Real Estate Market; REIT |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_57&r=ure |