|
on Urban and Real Estate Economics |
| By: | Guglielmo Barone (University of Padua); Francesco David (Bank of Italy); Guido de Blasio (Bank of Italy); Sauro Mocetti (Bank of Italy) |
| Abstract: | We examine the impact of household mortgages on house prices. Using biannual data on Italian cities for the years 2003-2015, we build an exogenous and fully data-driven indicator of mortgage supply stances and use it as an instrument for actual extended mortgages. Our results indicate that mortgages have a positive and significant causal effect on house prices, with an estimated elasticity of around 0.1. The estimated effect is larger during the expansionary phase of the housing cycle. We also find evidence of significant spatial heterogeneity: mortgages push real estate values higher in cities where the housing supply curve is less elastic or households are more dependent on external finance. |
| Keywords: | mortgage supply, house prices, local housing market |
| JEL: | G21 R21 R51 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1282_20&r=all |
| By: | Krenz, Astrid |
| Abstract: | Almost 30 years after German reunification, a persistent gap in different firm performance measures exists between East and West Germany. In this paper I focus on the differences in new German manufacturing plants' location choices across the German district-free cities and districts and investigate its regional determinants. For that purpose, I construct a novel, rich regional- and plant-level dataset based on the Official Firm Statistics from the German Federal Statistical Office and the Offices of the Laender. The analysis provides first-time evidence regarding how in particular the location decision of plants in the German economy is in uenced by regional road infrastructure as well as regional structural funding. The effects are economically important and significant. The results reveal that a 10 percent increase in plant agglomeration increases the odds of a new plant to locate in the region by 12 percent. A 10 percent decrease of travel time on roads increases the odds of a plant to locate by 4 percent in Germany overall, by 7.6 percent among East German regions and by 26.5 percent in particular for large plants in the East German regions. A 10 percent larger population increases the odds to locate by 8.7 percent. A 10 percent increase in regional structural funding for infrastructure purposes increases the odds to locate in a region in East Germany by 8.3 percent in particular for large plants. Policy implications emerge that address in particular the improvement of infrastructure and support to reap the benefits that arise from agglomeration externalities. |
| Keywords: | Firm location choice,regional road infrastructure,Germany,agglomeration economies,regional structural funding,East-West gap,conditional logit,nested logit. |
| JEL: | D22 L25 R11 R12 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224614&r=all |
| By: | Taruttis, Lisa; Weber, Christoph |
| Abstract: | The German government aims at a climate-neutral building stock by 2050 to reach the goals defined in the Climate Action Plan 2050. Increasing the energy efficiency of existing buildings is therefore a high priority. For this purpose, investments of private homeowners will play a major role since about 46.5% of the German dwellings are owner-occupied. To identify potential monetary benefits of investing in energetic retrofits, we investigate whether energy efficiency is reflected in property values of single-family houses in Germany. Thereby we examine possible heterogeneous effects among regions. With 455,413 individual observations on a 1km²-grid level for 2014 to 2018, this study adds to the literature 1) by examining the effect of energy efficiency on housing values for Germany on a more small-scale level and specifically investigating regional disparities in this context and 2) by estimating an energy efficiency value-to-cost ratio. Applying a hedonic analysis, we find a positive relationship between energy efficiency and asking prices. We also find evidence for regional disparities. Effects are significantly weaker in large cities compared to other urban areas, whereas the impact in rural areas is much stronger. Since property values are expected to decline in rural regions, homeowners could alleviate this development by increasing the energy efficiency of their dwellings. |
| Keywords: | Energy efficiency,residential buildings,regional disparities,German housing market,hedonic analysis,housing value |
| JEL: | C31 Q40 R21 R31 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224582&r=all |
| By: | Liao, Yu (Clark University); Zhang, Junfu (Clark University) |
| Abstract: | In Chinese cities, migrants with rural hukou, compared to residents with local urban hukou, face more uncertainty, have limited access to mortgage finance, and are less eligible for low-cost housing. A simple model demonstrates that for these reasons, rural- to-urban migrants are less likely to own housing units in cities and as a result accumulate less wealth. Our empirical analysis examines a nationally representative household survey from 2013 and uses mother's hukou status as an instrumental variable. We find that household heads with rural hukou are about 20 percentage points less likely to own housing units in cities than comparable household heads with local urban hukou. Consequently, the average household head with a rural hukou owns 310 thousand yuan less housing wealth and 213 thousand yuan less total wealth than comparable household heads with local urban hukou. The average household head with a rural hukou has 286 thousand yuan less in housing capital gains than comparable household heads with local urban hukou. Moreover, we find that these differences are much larger in the first- and second-tier cities, cities with more stringent hukou regulations, and among younger cohorts. |
| Keywords: | hukou, tenure choice, wealth, Chinese economy |
| JEL: | R0 R2 H0 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13836&r=all |
| By: | Dolls, Mathias; Fuest, Clemens; Krolage, Carla; Neumeier, Florian |
| Abstract: | This paper examines the effects of real estate transfer taxes (RETT) on house prices using a rich micro dataset on German properties covering the period from 2005 to 2018. We exploit a 2006 constitutional reform that allowed states to set their own RETT rates, leading to frequent increases in states' tax rates in subsequent years. Our monthly event study estimates indicate a price response that strongly exceeds the change in the tax burden for single transactions. I.e., twelve months after a reform, a one percentage point increase in the tax rate reduces property prices by on average 3.5%. Effects are stronger for apartments and apartment buildings than for singlefamily houses. We interpret these results in the context of a theoretical model that accounts for the effects of RETT on a property's resale value. If a property is expected to be traded more frequently in the future, the decline in its price can exceed the increase in the tax burden. Moreover, larger price effects can be explained by higher bargaining power of sellers. |
| Keywords: | Real estate transfer taxes,property taxes,housing market |
| JEL: | H22 H71 R32 R38 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224525&r=all |
| By: | Quitz\'e Valenzuela-Stookey |
| Abstract: | This paper studies politically feasible policy solutions to inequities in local public goods provision. I focus in particular on the entwined issues of high property taxes, geographic income disparities, and inequalities in public education prevalent in the United States. It has long been recognized that with a mobile population, local administration and funding of schools leads to competition between districts. By accounting for heterogeneity in incomes and home qualities, I am able to shed new light on this phenomenon, and make novel policy recommendations. I characterize the equilibrium in a dynamic general equilibrium model of location choice and education investment with a competitive housing market, heterogeneous wealth levels and home qualities, and strategic district governments. When all homes are owner-occupied, I show that competition between strategic districts leads to over-taxation in an attempt to attract wealthier residents. A simple class of policies that cap and/or tax the expenditure of richer districts are Pareto improving, and thus politically feasible. These policies reduce inequality in access to education while increasing expenditure for under-funded schools. Gains are driven by mitigation of the negative externalities generated by excessive spending among wealthier districts. I also discuss the policy implications of the degree of homeownership. The model sheds new light on observed patterns of homeownership, location choice, and income. Finally, I test the assumptions and implications empirically using a regression discontinuity design and data on property tax referenda in Massachusetts. |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2011.03878&r=all |
| By: | Araujo, Maria Daniela (University of Bamberg); Heineck, Guido (University of Bamberg); Cruz-Aguayo, Yyannú (Inter-American Development Bank) |
| Abstract: | Since 2007, the Ecuadorian government has required teacher candidates to pass national skill and content knowledge tests before they are allowed to participate in merit-based selection competitions for tenured positions at public schools in an attempt to raise teacher quality. We evaluate the impact of this policy using linked administrative teacher information to data from a unique experimental study where almost 15,000 kindergarten children were randomly assigned to their teachers in the 2012-2013 school year in Ecuador. We find positive and significant effects of test-screened tenured teachers of at least a 0.105 standard deviation for language and a 0.085 standard deviation for math, which persist even after controlling for teacher education, experience, cognitive ability, personality traits and classroom practices. |
| Keywords: | teacher quality, education policy evaluation, Latin America |
| JEL: | I20 I21 I25 I28 J45 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13830&r=all |
| By: | Xu, Yuanwei; Wang, Feicheng |
| Abstract: | China has experienced a rapid boom in real estate prices in the last few decades, leading to a substantial increase in living costs and heavy financial burdens on households. Using an instrumental variable approach, this paper exploits spatial and temporal variation in housing price appreciation linked to individual-level health data in China from 2000 to 2011. We find robust evidence that increases in housing prices significantly raise the probability of residents having chronic diseases. This negative health impact is more pronounced among individuals from low-income families, households that purchased rather than inherited or was allocated the home, and those who migrated from rural to urban areas. We also find evidence that marriage market competition exacerbates these negative health effects, particularly for males and parents with young adult sons. Further empirical results suggest that housing price appreciation induces negative health consequences through increased work intensity, higher mental stress, and reduced sleep time. This paper provides a novel explanation to the increased prevalence of chronic diseases in China. |
| Keywords: | Housing Prices,Chronic Diseases,Health,Marriage Competition,China |
| JEL: | R20 R21 R31 I12 I14 I15 I31 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224570&r=all |
| By: | Mense, Andreas |
| Abstract: | I estimate the impact of market-rate new housing supply on the local rent distribution. As an exogenous shifter of new housing supply, I exploit local weather shocks during the construction phase that lead to temporary delays in housing completions at the municipal level. Adding one new housing unit to the stock for every 100 rental housing units offered on the market in a given month reduces rents by 0.4-0.7%. A series of instrumental variable quantile regressions show that shocks to new housing supply shift the rent distribution as a whole, suggesting that market-rate new housing supply effectively reduces housing costs of all renter households. I rationalize this finding by analyzing moving decisions in the German Socio-Economic Panel. The housing quality at a household's previous address is a poor predictor of the housing quality at the current address, suggesting that new housing supply triggers supply of (rental) housing units across the housing quality spectrum. |
| Keywords: | Rental housing,new housing supply,housing demand elasticity,housing supply elasticity,filtering |
| JEL: | R21 R31 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224569&r=all |
| By: | Umbach, Tim |
| Abstract: | Much research has been done showing that unemployment can cause crime, and that crime adversely impacts economic activity. However, very few authors have considered a simultaneous relationship. Using an IV-setup and regional panel-data, I find evidence for the possibility of a vicious cycle, with unemployment leading to higher crime rates and crime rates raising unemployment. I further find that especially employment in low-skill service jobs is adversely affected by crime, that many types of crime are impacted by unemployment differently and that both apartment rents and GDP-growth decrease if crime increases. The spatial dependencies found further raise the possibility that these vicious cycles could spill over into neighboring regions. |
| Keywords: | Crime,Unemployment,Amenities,spatial autregresssive model,SARAR,endogenous regessors. |
| JEL: | J21 J32 K42 R11 R23 R30 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224611&r=all |
| By: | Treb Allen; Dave Donaldson |
| Abstract: | How much of the spatial distribution of economic activity today is determined by history rather than by geographic fundamentals? And if history matters for the distribution, does it also affect overall efficiency? This paper develops a tractable theoretical and empirical framework that aims to provide answers to these questions. We derive conditions on the strength of agglomeration externalities, valid for any geography, under which temporary historical shocks can have extremely persistent effects and even permanent consequences (path dependence). We also obtain new analytical expressions, functions of the particular geography in question, that bound the aggregate welfare level that can be sustained in any steady-state, thereby bounding the potential impact of history. Our simulations—based on parameters estimated from spatial variation across U.S. counties from 1800-2000—imply that small variations in historical conditions have substantial consequences for both the spatial distribution and the efficiency of U.S. economic activity, both today and in the long-run. |
| JEL: | C33 C62 F1 R11 R13 R23 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28059&r=all |
| By: | Elisa Borowski; Jason Soria; Joseph Schofer; Amanda Stathopoulos |
| Abstract: | Mobility resilience refers to the ability of individuals to complete their desired travel despite unplanned disruptions to the transportation system. The potential of new on-demand mobility options, such as ridesourcing services, to fill unpredicted gaps in mobility is an underexplored source of adaptive capacity. Applying a natural experiment approach to newly released ridesourcing data, we examine variation in the gap-filling role of on-demand mobility during sudden shocks to a transportation system by analyzing the change in use of ridesourcing during unexpected rail transit service disruptions across the racially and economically diverse city of Chicago. Using a multilevel mixed model, we control not only for the immediate station attributes where the disruption occurs, but also for the broader context of the community area and city quadrant in a three-level structure. Thereby the unobserved variability across neighborhoods can be associated with differences in factors such as transit ridership, or socio-economic status of residents, in addition to controlling for station level effects. Our findings reveal that individuals use ridesourcing as a gap-filling mechanism during rail transit disruptions, but there is strong variation across situational and locational contexts. Specifically, our results show larger increases in transit disruption responsive ridesourcing during weekdays, nonholidays, and more severe disruptions, as well as in community areas that have higher percentages of White residents and transit commuters, and on the more affluent northside of the city. These findings point to new insights with far-reaching implications on how ridesourcing complements existing transport networks by providing added capacity during disruptions but does not appear to bring equitable gap-filling benefits to low-income communities of color that typically have more limited mobility options. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2010.15889&r=all |
| By: | Miller, Amalia (University of Virginia); Segal, Carmit (University of Zurich); Spencer, Melissa K. (University of Virginia) |
| Abstract: | Around the world, policymakers and news reports have warned that domestic violence (DV) could increase as a result of the COVID-19 pandemic and the attendant restrictions on individual mobility and commercial activity. However, both anecdotal accounts and academic research have found inconsistent effects of the pandemic on DV across measures and cities. We use high-frequency, real-time data from Los Angeles on 911 calls, crime incidents, arrests, and calls to a DV hotline to study the effects of COVID-19 shutdowns on DV. We find conflicting effects within that single city and even across measures from the same source. We also find varying effects between the initial shutdown period and the one following the initial re-opening. DV calls to police and to the hotline increased during the initial shutdown, but DV crimes decreased, as did arrests for those crimes. The period following re-opening showed a continued decrease in DV crimes and arrests, as well as decreases in calls to the police and to the hotline. Our results highlight the heterogeneous effects of the pandemic across DV measures and caution against relying on a single data type or source. |
| Keywords: | domestic violence, COVID-19, pandemic, crime reporting, police data |
| JEL: | I18 J12 J16 K14 K42 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13841&r=all |
| By: | Bach, Maximilian (ZEW Mannheim); Fischer, Mira |
| Abstract: | This paper studies responses to high-stakes incentives arising from early ability tracking. We use three complementary research designs exploiting differences in school track admission rules at the end of primary school in Germany's early ability tracking system. Our results show that the need to perform well to qualify for a better track raises students' math, reading, listening, and orthography skills in grade 4, the final grade before students are sorted into tracks. Evidence from self-reported behavior suggests that these effects are driven by greater study effort but not parental responses. However, we also observe that stronger incentives decrease student well-being and intrinsic motivation to study. |
| Keywords: | student effort, tracking, incentives |
| JEL: | I20 I28 I29 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13845&r=all |
| By: | Zorlu, Aslan (University of Amsterdam); van Gent, Wouter (University of Amsterdam) |
| Abstract: | This paper examines ethnic disparities in intergenerational economic mobility for the children of second-generation "migrants." Using rich register data for adult children aged 20 to 30, we provide empirical evidence on the economic assimilation outcomes of the descendants of immigrants who mainly arrived in the Netherlands in the post-World War II period. Acknowledging a high degree of diversity in the starting positions of immigrants associated with their dominant migration motives, we estimate the Dutch-migrant group gap in incomes from an intergenerational mobility perspective. Our descriptive rank-rank analysis reveals significant ethnic disparities in absolute and relative intergenerational income mobility. The absolute mobility of the ethnic groups we study appears to have the following rank order: Moroccan, Turkish Surinamese, Indish, German, and Dutch. While a higher level of intergenerational transmission of parental income narrows the gap for Turkish and Surinamese children, it widens the gap for Indish and Moroccan children. Our decomposition analysis shows that the ethnic disparities found for the Moroccan, Turkish, and Surinamese third generation are entirely explained by their relatively young ages and associated unfavorable socioeconomic positions, and by their lower parental income levels. |
| Keywords: | income, third generation, second generation, immigrants |
| JEL: | J15 J31 J61 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13855&r=all |
| By: | Steven Brakman; Tijl Hendrich; Charles van Marrewijk; Jennifer Olsen |
| Abstract: | The trade literature often treats countries as dimensionless points, which is a strong assumption. Agglomeration or lumpiness of production factors within countries can affect the national pattern of trade. In this paper we analyze comparative advantage patterns for 22 cities and 4 regions for (a selection of) 83 sectors within The Netherlands. Our findings are as follows. First, analysis of the lens condition indicates that the regional concentration of production factors (lumpiness) does not affect the Dutch national trade pattern. This suggests that the mobility of firms and factors of production is consistent with the so-called welfare maximizing integrated equilibrium. Second, despite the fact that the lens condition is verified, comparative advantage patterns across locations differ significantly from each other. We show this by comparing location specific distributions of the Balassa-Index (BI). Third, the differences across locations of comparative advantage patterns is determined by the interaction of local skill-abundance and sector skill-intensity, in line with the predictions of the factor abundance model. Moreover, at the sectoral level, location-specific variables such as market access or density, have limited effects. Fourth, most locations that house sectors that have a strong comparative (dis-) advantage relative to the Netherlands also have a strong comparative (dis-) advantage relative to the world. Only a few locations house sectors that are locally strong, but globally weak, and vice versa. The results indicate that international trade policies and disputes, such as Brexit or the US-China trade war, can have strong local consequences. |
| Keywords: | comparative advantage, cities, Heckscher-Ohlin, factor abundance |
| JEL: | F11 F15 R12 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8649&r=all |
| By: | Rozo, Sandra V. (USC Marshall School of Business); Urbina, Maria J. (USC Marshall School of Business) |
| Abstract: | We exploit the quasi-random settlement of refugees in Sweden between 1985 and 1994 to examine the characteristics of individuals showing a disproportionate negative response to migration flows and whether these responses differ when the arrival of refugees occurred concurrently with economic shocks. We document that, on average, migration shocks translate to lower support for immigration. These responses are disproportionately driven by the changes in attitudes of young males, with less wealth, and who work in blue-collar occupations. Also, we find more support for immigration where employment increased and tax collection was lower concurrent with the arrival of refugees. |
| Keywords: | migration, attitudes, demography |
| JEL: | D72 F2 O15 R23 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13842&r=all |
| By: | Machin, Stephen (London School of Economics); McNally, Sandra (University of Surrey); Terrier, Camille; Ventura, Guglielmo (London School of Economics) |
| Abstract: | Some countries, notably those which have long had a weak history of vocational education like the UK and the US, have recently seen a rapid expansion of hybrid schools which provide both general and vocational education. England introduced 'University Technical Colleges' (UTCs) in 2010 for students aged 14 to 18. 49 UTCs have been created since then. We use a spatial instrumental variable approach based on geographical availability to evaluate the causal effect of attending a UTC on student academic and vocational achievement and on their labour market outcomes. For those pupils who enter the UTC at a non-standard transition age of 14, UTCs dramatically reduce their academic achievement on national exams at age 16. However, for students who enter at a more conventional transition age of 16, UTCs boost vocational achievement without harming academic achievement. They also improve achievement in STEM qualifications, and enrolment in apprenticeships. By age 19, UTC students are less likely to be unemployed and more likely to study STEM at university. |
| Keywords: | tracking, technical education, school value-added |
| JEL: | I20 I21 I28 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13837&r=all |
| By: | Batabyal, Amitrajeet; Higano, Yoshiro; Nijkamp, Peter |
| Abstract: | Following this introductory chapter which comprises Part I of the book, there are eleven chapters and each of these chapters—written by an expert or by a team of experts—discusses a particular research question or questions about rural-urban dichotomies and spatial development in Asia. For ease of comprehension, we have divided the present volume containing twelve chapters into five parts. Part II of this book focuses on migration and this part consists of two chapters. Part III concentrates on the provision of goods and services and this part of the book consists of three chapters. Part IV focuses on conflict and this part consists of two chapters. The focus of the four chapters that comprise part V of this book is on reforms and their impacts. |
| Keywords: | Asia, Regional Impacts, Rural-Urban Dichotomy, Spatial Economic Development |
| JEL: | R11 R23 R28 |
| Date: | 2020–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:103916&r=all |
| By: | Mathilde POULHES (CREST, SDES (Ministry of Housing), Insee and SciencesPo (Paris)) |
| Abstract: | This paper estimates the impact of the rise in the housing transfer tax (the régime de droit commun) in France in 2014. It exploits both time and geographical discontinuities in the implementation of this reform that gave the right to local authorities to raise their housing transfer tax, an entitlement that most départements have chosen to exercise. In the short term, I provide evidence that buyers anticipated the reform to avoid the additional tax burden. I then use an event-study design to examine whether there was any lock-in effect in the volume of dwelling sales. I show there is evidence of a long-term negative effect of the tax increase on the number of transactions, but only in markets where supply was high relative to demand. Finally, I find no effect on pre-tax sale prices, meaning that the burden of the transfer tax rests now on the buyer. My findings highlight the price rigidity of the French housing market and suggest that lowering housing transfer taxes could be used as a fiscal stimulus in the short term. |
| Date: | 2020–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:crs:wpaper:2020-23&r=all |
| By: | Kennedy, Kendall; Shen, Danqing |
| Abstract: | We study how educational attainment and school enrollment status differentially affect Black and White teen part-time employment in the context of No Pass, No Drive policies. These policies require that teens maintain enrollment and regular attendance in school in order to hold a driver’s license, and previous research (Barua and Vidal-Fernandez 2014; Kennedy 2020) shows they cause large increases in school enrollment and educational attainment. Using difference-in-differences estimation, we find that No Pass, No Drive policies cause a 5 percentage point increase in Black teen part-time employment, but do not cause an associated change in White teen employment. Rather, this increase in Black teen part-time employment is offset by a 1.7 percentage point decrease in part-time employment for White young adults (aged 18-25). Event study specifications show that these patterns are driven by long-term compositional changes in the young adult workforce. There are no immediate effects of No Pass, No Drive policies on employment, but these policies cause an increase in the educational attainment of teens, who then become less likely to accept part-time work as young adults. This evidence suggests substantial “crowding out” of Black teens by young adults in part-time work, and that efforts to promote full-time work or post-secondary school attendance for young adults may additionally aid Black teens in part-time job finding. |
| Keywords: | No Pass No Drive, Black-White Discrimination, Teen Employment |
| JEL: | I28 J24 J71 J78 |
| Date: | 2020–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:103788&r=all |
| By: | Rhiannon Jerch; Matthew E. Kahn; Gary C. Lin |
| Abstract: | Since 1980, over 2,000 local governments in US Atlantic and Gulf states have been hit by a hurricane. Such natural disasters can exert severe budgetary pressure on local governments' ability to provide critical infrastructure, goods, and services. We study local government revenue, expenditure, and borrowing dynamics in the aftermath of hurricanes. These shocks impact, both, current local public resources through reducing tax revenues and expenditures, as well as future local public resources through increasing the cost of debt. Major hurricanes have much larger effects than minor hurricanes: major storms cause local revenues to fall by 6 to 7%. These losses persist at least ten years after a hurricane strike, leading to a 6% decline in expenditures on important public goods and services and a significant increase in the risk of default on municipal debt. Our results reveal how hurricanes can create a "vicious cycle" for local governments by increasing the cost of debt at critical moments after a hurricane strike, when localities are in greatest need of funding sources. Cities deemed riskier by ratings agencies face higher borrowing costs and thereby face constraints to invest in climate change adaptation. Municipalities with a racial minority composition above their state median suffer expenditure losses 9% greater and debt default risk 8 times larger than white communities in the decade following a hurricane strike. These results suggest that climate change can exacerbate environmental justice challenges. |
| JEL: | H72 H74 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28050&r=all |
| By: | Huning, Thilo R.; Wahl, Fabian |
| Abstract: | How can agricultural inheritance traditions affect structural change and economic development in rural areas? The most prominent historical traditions are primogeniture, where the oldest son inherits the whole farm, and equal partition, where land is split and each heir inherits an equal share. In this paper, we provide a theoretical model that links these inheritance traditions to the local allocation of labor and capital and to municipal development. First, we show that among contemporary municipalities inWest Germany, equal partition is significantly related to measures of economic development. Second, we conduct OLS and fuzzy spatial RDD estimates for Baden-Württemberg in the 1950s and today. We find that inheritance rules caused, in line with our theoretical predictions, higher incomes, population densities, and industrialization levels in areas with equal partition. Results suggest that more than a third of the overall inter-regional difference in average per capita income in present-day Baden Württemberg, or 597 Euro, can be explained by equal partition. |
| Keywords: | Inheritance rules,sectoral change,regional economic development,Baden-Württemberg,spatial inequalities |
| JEL: | D02 D31 N00 O18 Z00 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224512&r=all |
| By: | Seidel, André |
| Abstract: | I analyze the effects of ethnic divisions on the provision of public goods. Using OpenStreetMap data, I construct a new global dataset of locations of public amenities, such as schools, hospital and libraries. I allow for the possibility that the data may be systematically incomplete using two new proxies for mapping completeness. I provide strong evidence that more autonomous subnational regions with a high degree of ethnic fractionalization provide significantly fewer productive public goods. Therefore, my findings indicate that decentralization can lead to a failure in the provision of local public goods when it increases ethnical fractionalization among the policy makers responsible for collectively supplying public goods. |
| Keywords: | public goods,amenities,decentralization,ethnic fractionalization,OpenStreetMap |
| JEL: | H41 H77 H75 D72 R53 C82 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224555&r=all |
| By: | Alda, Erik |
| Abstract: | Do Body-Worn Cameras improve police efficiency? This study answers this question in the context of a sample of local police agencies in the US, where the adoption of BWCs by police agencies has increased significantly in recent years. To estimate the effects of BWCs on police efficiency, I exploited the differences in the adoption of BWCs between agencies that acquired them ("acquirers") and agencies that deployed them ("deployers"). Using a multiple stage approach, in the first stage I estimated the efficiency of local police agencies using a robust order-m model In the second stage, I estimated the effects of BWCs using a range of matching estimators and an instrumental variable model. The first stage results show that police agencies could improve their efficiency by 35 percent from 0.76 to 1. The second stage matching and IV estimates suggest that BWCs can help improve police efficiency between eight and 21 percent. The effects are larger for those agencies that fully deployed BWCs with their officers. Overall, this study’s results support the argument that BWCs can help improve police efficiency. |
| Keywords: | Police, Performance, Efficiency, Data Envelopment Analysis, Matching Estimators, Instrumental Variables |
| JEL: | C26 D24 H11 H44 L23 |
| Date: | 2020–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:103887&r=all |
| By: | Sarah Schneider-Strawczynski (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Does exposure to refugees change the political preferences of natives towards far-right parties, and how does this change in preferences occur? This paper examines the political economy of refugee-hosting. Using the opening of refugee centers in France between 1995 and 2017, I show that voting for far-right parties in cities with such opening between two presidential elections has fallen by about 2 percent. The drop in far-right voting is higher in municipalities with a small population, working in the primary and secondary sectors, with low educational levels and few migrants. I show that this negative effect can not be explained by an economic channel , but rather by a composition channel, through natives' avoidance, and a contact channel, through natives' exposure to refugees. I provide suggestive evidence that too-disruptive exposure to refugees, as measured by the magnitude of the inflows, the cultural distance and the media salience of refugees, can mitigate the beneficial effects of contact on reducing far-right support. |
| Keywords: | Migration,Refugees,Political Economy,Preferences Keywords: Migration,Preferences |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-02982827&r=all |
| By: | Natacha Aveline-Dubach (GC (UMR_8504) - Géographie-cités - UP1 - Université Panthéon-Sorbonne - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - UP - Université de Paris); Natacha Aveline |
| Abstract: | Since 2008, China has been currently experiencing a disjuncture between house prices and economic fundamentals. This paper highlights the drivers of the speculative mechanism in China's residential markets, and shows that the pandemic is not likely to call them into question, quite the contrary. |
| Date: | 2020–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02986738&r=all |
| By: | Alix Le Goff (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Guillaume Monchambert (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Charles Raux (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We conduct a discrete choice experiment on 931 solo-driving commuters in Lyon, France to estimate the values of end-to-end travel time (VoTT) in the presence of an HOV lane for four modes: Solo Driver, Carpool Driver, Carpool Passenger and Public Transport. Mixed and latent class logit models are estimated. We find that Carpool Passenger, Carpool Driver and Public Transport median VoTTs are respectively around 20%, 40% and 60% higher than Solo Driver VoTT. The analysis of individual heterogeneity distinguishes three classes of behavior in our sample: open to carpool as a driver (41%), open to passenger modes (32%) and resistant to all alternatives to solo driving (28%). These three categories allow to identify solo drivers who could switch to carpool as drivers. We show that encouraging current solo drivers to switch to carpool as passengers will be more sensitive if public transport services are also improved. |
| Keywords: | HOV-lane,Commuting Trips,Carpool,Values of Time,Discrete Choice Experiment,Working Papers du LAET |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-02988756&r=all |
| By: | Riina Vuorikari (European Commission - JRC); Anca Velicu; Stephane Chaudron (European Commission - JRC); Romina Cachia (European Commission - JRC); Rosanna Di Gioia (European Commission - JRC) |
| Abstract: | How did families handle remote schooling during the time of Covid-19 lockdown during spring 2020? Perceptions on remote schooling activities were gathered from parents and their children at the end of primary education and in secondary education (10-18 years old) from 9 EU countries (Austria, France, Germany, Ireland, Italy, Portugal, Romania, Slovenia and Spain) in addition to Switzerland and Norway. The findings show that almost all children who participated in the survey were able to conduct some school-related activities using digital technologies, and many reported that their schools had provided them with both digital communication and learning platforms. The findings also point out to large variations in terms of how children were able to interact with their teachers in learning activities and how often children were in contact with their teachers through online means. In addition to learning activities provided by the school, parents also engaged in complementary learning activities with their children, for example by using free of charge online learning material and exercises, such as video recordings and online quizzes. Both children and parents were worried about the pandemic's negative impact on education, generally parents more so than children. Families voiced the need for better guidelines on how to support children with distance education activities and how to support the child psychologically during the confinement. Parents also expressed their need for more counselling and psychological support. These early results from the survey can guide future activities of schools and education systems in their move to digital education that can deliver more even, and better, pedagogical and social outcomes. They can also guide planning of practices that suite local context and needs. More in-depth analysis of this data will be made available throughout 2020-2021. |
| Keywords: | education, remote schooling, distance education, covid-19 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc122303&r=all |
| By: | Felipe Barrera-Osorio; Paul Gertler; Nozomi Nakajima; Harry Patrinos |
| Abstract: | Parental involvement programs aim to increase school-and-parent communication and support children’s overall learning environment. This paper examines the effects of low-cost, group-based parental involvement interventions in Mexico using data from two randomized controlled trials. The first experiment provided financial resources to parent associations. The second experiment provided information to parents about how to support their children’s learning. Overall, the interventions induced different types of parental engagement in schools. The information intervention changed parenting behavior at home – with large effects among indigenous parents who have historically been discriminated and socially excluded – and improved student behavior in school. The grants did not impact parent or student behaviors. Notably, we do not find impacts of either intervention on educational achievement. To understand these null effects, we explore how social ties between parents and teachers evolved over the course of the two interventions. Parental involvement interventions led to significant changes in perceived trustworthiness between teachers and parents. The results suggest that parental involvement interventions can backfire if institutional rules are unclear about the expectations of parents and teachers as parents increase their involvement in schools. |
| JEL: | I20 I25 O15 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28040&r=all |
| By: | Jessup, Eric; Casavant, Ken; Tolliver, Denver |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cantrf:306021&r=all |
| By: | Genthner, Robert; Kis-Katos, Krisztina |
| Abstract: | Using yearly Indonesian labor market data for 2000 to 2015, we investigate the impact of a protectionist foreign direct investment (FDI) policy reform on employment and wages. The so-called negative investment list regulates FDI at the highly granular product level and has been repeatedly revised throughout time. We construct spatial measures of regulatory penetration based on firm-level data and thereby exploit the exposure of local manufacturing industry employment to the negative investment list. Controlling for time and locality fixed effects as well as trends in initial district conditions, our findings suggest an overall positive effect of local regulatory penetration on employment, which is especially pronounced among young, females and low-skilled workers and mostly driven by job creation in the manufacturing sector. We also present evidence in support of positive wage effects. |
| Keywords: | FDI regulation,Indonesia,local labor markets |
| JEL: | F16 F21 F23 J23 J31 L51 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224524&r=all |
| By: | Amuedo-Dorantes, Catalina (University of California, Merced); Marcén, Miriam (University of Zaragoza); Morales, Marina (University of Zaragoza); Sevilla, Almudena (University College London) |
| Abstract: | We examine the role of school closures in contributing to the negative labor market impacts of the COVID-19 pandemic. We collect detailed daily information on school closures at the school-district level, which we merge to individual level data on various employment and socio- demographic characteristics from the monthly Current Population Survey from January 2019 through May 2020. Using a difference-in-differences estimation approach, we gauge how the intensity of school closures affects the labor supply of mothers and fathers of young school-age children. We find evidence of non-negligible labor supply reductions, particularly among mothers. These impacts prove robust to endogeneity checks and persist after accounting for other social-distancing measures in place. |
| Keywords: | COVID-19, school closures, parental labor supply, United States |
| JEL: | D1 J1 J16 J2 J23 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13827&r=all |
| By: | Duncan, Merriene M. |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ctrf20:305904&r=all |
| By: | Huang, Donna; Mason, Chris; Moran, Michael; Earles, Amber |
| Abstract: | This study gathered data on the scale and scope of policy interventions in the housing system during the COVID-19 pandemic in Australia—a critical first step for on-going assessment of the outcomes and impacts of the broad suite of initiatives deployed by governments in response to the pandemic. It will help build a preliminary evidence base to assess the whole-of-government response and to prepare policy makers for future crises with similar system-wide implications |
| Date: | 2020–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:8sr2u&r=all |
| By: | Arenas, Andreu (University of Barcelona); Calsamiglia, Caterina (IPEG); Loviglio, Annalisa (Universitat Autònoma de Barcelona) |
| Abstract: | The outbreak of COVID-19 in 2020 inhibited face-to-face education and constrained exam taking. In many countries worldwide, high-stakes exams happening at the end of the school year determine college admissions. This paper investigates the impact of using historical data of school and high-stakes exams results to train a model to predict high-stakes exams given the available data in the Spring. The most transparent and accurate model turns out to be a linear regression model with high school GPA as the main predictor. Further analysis of the predictions reflect how high-stakes exams relate to GPA in high school for different subgroups in the population. Predicted scores slightly advantage females and low SES individuals, who perform relatively worse in high-stakes exams than in high school. Our preferred model accounts for about 50% of the out-of- sample variation in the high-stakes exam. On average, the student rank using predicted scores differs from the actual rank by almost 17 percentiles. This suggests that either high-stakes exams capture individual skills that are not measured by high school grades or that high-stakes exams are a noisy measure of the same skill. |
| Keywords: | performance prediction, high-stakes exams, college allocation, COVID-19 |
| JEL: | I23 I24 I28 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13838&r=all |
| By: | Raffer, Christian |
| Abstract: | The transition from cash to accrual accounting is said to change a government's perception of its budget quite fundamentally. Although an exorbitant number of governments have reformed the mode of accounting at high costs in past years, reliable empirical evidence of consequences on their financial situation and decision-making is still scarce. In this paper, budget variables are analysed which are hypothesized to react to the reform: investment expenditure and revenue from asset sales. Microdata from 1,100 local governments in the German state of Baden-Württemberg over the period 2005-2016 is exploited with different matching techniques combined with the conditional DiD estimator. Results imply a robust effect on municipal investment behaviour and indicate an impact on sales revenue. This corroborates the latest empirical results. This not only provides external validation. For the first time a common understanding of the budgetary effects of the accrual accounting reform based on econometric analyses seems to be emerging. |
| Keywords: | Accrual Accounting,Propensity Score Matching,Public Finance |
| JEL: | H72 H83 M41 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224630&r=all |
| By: | Neis, Doug; Rachar, Paul; Nixon, Daryl |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cantrf:306085&r=all |
| By: | Fox, Mark; Silver, Daniel; Adler, Patrick |
| Abstract: | This paper is part II of “Towards a model of urban evolution.” This paper defines a formal model of the Signature of an urban space, comprised of: an urban genome which captures the expected groups (i.e., users) and activities (i.e., uses) of physical forms; a description of the actual activities and groups of the physical forms; and the signals that are communicated within and among urban spaces. Central to the model is a formeme, which provides the building blocks for a Signature. A formeme captures the interactions among physical forms, groups and activities. We then show how various metrics can define an urban area based on its Signature, and that these metrics can be used to measure similarity of urban spaces. The Signature and its underlying formemes capture the sources of variations in urban evolution. |
| Date: | 2020–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:9pvq2&r=all |
| By: | Rode, Johannes; Müller, Sven |
| Abstract: | We study variation of peer effects in rooftop photovoltaic adoption by households. Our investigation employs geocoded data on all potential adopters and on all grid-connected photovoltaic systems set up in Germany through 2010. We construct an individual measure of peer effects for each potential adopter. For identification, we exploit exogenous variation in two dimensions of photovoltaic system roof appropriateness of neighbors: their inclination and their orientation. Using discrete choice models with panel data, we find evidence for causal peer effects. However, the impact of one previously installed PV system on current adoption decreases over time. We also show that visible PV systems cause an increase in the odds of installing which is up to three times higher in comparison to all PV systems. At rural locations visibility may be less important, which indicates that word-of-mouth communication plays a stronger role. |
| Keywords: | Causal peer effects,installed base,discrete choice,technology adoption and diffusion,solar photovoltaic panels,visibility |
| JEL: | O33 C35 Q55 R10 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224644&r=all |
| By: | Fu, Jiang; Huijun, Han |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ctrf29:306043&r=all |
| By: | Bein, Peter |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ctrf29:306049&r=all |
| By: | Hermes, Henning; Huschens, Martin; Rothlauf, Franz; Schunk, Daniel |
| Abstract: | Relative performance feedback (RPF) has often been shown to improve effort and performance in the workplace and educational settings. Yet, many studies also document substantial negative effects of RPF, in particular for low-achievers. We study a novel type of RPF designed to overcome these negative effects of RPF on low-achievers by scoring individual performance improvements. With a sample of 400 children, we conduct a class-wise randomized-controlled trial using an e-learning software in regular teaching lessons in primary schools. We demonstrate that this type of RPF significantly increases motivation, effort, and performance in math for low-achieving children, without hurting high-achieving children. Among low-achievers, those receiving more points and moving up in the ranking improved strongest on motivation and math performance. In addition, we document substantial gender differences in response to this type of RPF: improvements in motivation and learning are much stronger for girls. We argue that using this new type of RPF could potentially reduce inequalities, especially in educational settings. |
| Keywords: | relative performance feedback,rankings,randomized-controlled trial,education,gender differences |
| JEL: | I20 I24 C93 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224532&r=all |
| By: | Rodolfo Sejas-Portillo; David Comerford; Mirko Moro; Till Stowasser |
| Abstract: | We study the effects of limited attention on property prices and energy efficiency (EE) investments in the housing market. Using a novel dataset, we analyse over 5 million residential property sale transactions in England and Wales, each containing information about sale price, property and location characteristics, and a mandatory energy performance certificate (EPC). The EPC includes a continuous energy cost rating (SAP rating) which is mapped into seven colour-coded rating bands (ranging from green A to red G). Applying a Regression Discontinuity Design (RDD), we document significant price discontinuities at the rating band thresholds. We estimate that - holding the underlying SAP score equal - being in a higher rating band increases the final sale price of a property between 0.8% and 2.5% ($2,000 and $6,625 based on average sale prices) depending on the threshold crossed. The presence of price discontinuities suggests that individuals are attentive to the simpler colour-coded rating band and partially inattentive to the more precise SAP rating. We present a simple model for estimating the degree of inattention and show that, for a given level of attention, rating bands reduce attention to the SAP rating by 25% on average. Importantly, the detected price discontinuities appear to influence market behaviour: Sellers whose property receives an EPC rating just below a threshold to the next-higher rating band are between 0.4% and 11% more likely to make last-minute EE investments before placing their property on the market. We discuss a number of recommendations of how to best leverage these threshold effects to improve policy design, which can be extended to other settings where the provision of simplified information creates reference thresholds. |
| Keywords: | limited attention, heuristic decision-making, price discontinuities, housing market, anchoring and adjustment, energy policy, energy efficiency, energy performance certificates, EPC |
| JEL: | D12 D83 L15 R21 R31 Q48 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8669&r=all |
| By: | Ekbote, Deepak; Laferriere, Richard |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cantrf:306037&r=all |
| By: | Pauser, Johannes |
| Abstract: | This paper examines efficiency in the provision and utilization of a congestible public input in a symmetric tax competition framework with wage rigidities. Despite the fact that also lump-sum taxation is available for regional governments, second-best efficiency emerges only as a special case in the non-cooperative equilibrium. In the special case with Cobb-Douglas production, the congestion technology can be shown to be crucial for the analysis of efficiency in the decentralized equilibrium. Assuming decreasing marginal congestion, efficiency in the non-cooperative equilibrium is determined alone by the production and congestion elasticities. In contrast, factor prices such as the level of the wage rigidity and corresponding employment levels are, in addition, important to determine whether both provision and utilization levels of the public input are efficient in case of increasing marginal congestion. |
| Keywords: | Fiscal competition,public inputs,wage rigidities,congestion |
| JEL: | H41 H21 H25 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224625&r=all |
| By: | Edoardo Gallo; Alastair Langtry |
| Abstract: | In recent years online social networks have become increasingly prominent in political campaigns and, concurrently, several countries have experienced shock election outcomes. This paper proposes a model that links these two phenomena. In our set-up, the process of learning from others on a network is influenced by confirmation bias, i.e. the tendency to ignore contrary evidence and interpret it as consistent with one's own belief. When agents pay enough attention to themselves, confirmation bias leads to slower learning in any symmetric network, and it increases polarization in society. We identify a subset of agents that become more/less influential with confirmation bias. The socially optimal network structure depends critically on the information available to the social planner. When she cannot observe agents' beliefs, the optimal network is symmetric, vertex-transitive and has no self-loops. We explore the implications of these results for electoral outcomes and media markets. Confirmation bias increases the likelihood of shock elections, and it pushes fringe media to take a more extreme ideology. |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2011.00520&r=all |
| By: | Heads, Jonathan |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ctrf29:306010&r=all |
| By: | Robinson, Raymond M. |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ctrf17:305879&r=all |
| By: | Little, Greg; Raney, Bill |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ctrf29:306040&r=all |
| By: | Alpern, Michael; Seddon, Gordon |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ctrf29:306026&r=all |
| By: | Michael Pollmann |
| Abstract: | I propose a framework, estimators, and inference procedures for the analysis of causal effects in a setting with spatial treatments. Many events and policies (treatments), such as opening of businesses, building of hospitals, and sources of pollution, occur at specific spatial locations, with researchers interested in their effects on nearby individuals or businesses (outcome units). However, the existing treatment effects literature primarily considers treatments that could be assigned directly at the level of the outcome units, potentially with spillover effects. I approach the spatial treatment setting from a similar experimental perspective: What ideal experiment would we design to estimate the causal effects of spatial treatments? This perspective motivates a comparison between individuals near realized treatment locations and individuals near unrealized candidate locations, which is distinct from current empirical practice. Furthermore, I show how to find such candidate locations and apply the proposed methods with observational data. I apply the proposed methods to study the causal effects of grocery stores on foot traffic to nearby businesses during COVID-19 lockdowns. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2011.00373&r=all |
| By: | Sparks, Gordon A.; Nix, Fred |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cantrf:305847&r=all |
| By: | Johnson, Jan A. |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ctrf29:306033&r=all |
| By: | Perl, Anthony |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ctrf29:306045&r=all |
| By: | Miller, Eric J. |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ctrf20:305892&r=all |
| By: | Banks, Robert L.; Howard, F.H. |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ctrf29:306038&r=all |
| By: | Alfa, Attahiru Sule; Heads, Jonathan |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cantrf:305981&r=all |
| By: | Kozhaya, Mireille; Martínez Flores, Fernanda |
| Abstract: | This paper examines the effect of a program that extended the length of a school day to improve schooling quality in Mexico, on school enrollment, time spent on schooling activities, and child labor of children aged 7 to 14. We take advantage of the staggered implementation of the FTS program across municipalities. Results show that the program has no effect on being enrolled in school, but affects weekly hours allocated to schooling activities. Moreover, exposure to the program reduces the prevalence of child labor. For boys, we see a decrease in engaging in market work, for girls in domestic work. |
| Keywords: | child labor,all-day schools,schooling,after-school programs |
| JEL: | J13 J21 J22 O12 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224567&r=all |
| By: | Heads, John |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ctrf29:306022&r=all |
| By: | Martin F. Hellwig (Max Planck Institute for Research on Collective Goods, Bonn) |
| Abstract: | According to Homburg’s (2014) comment on Kim and Lee (1997), an ad-valorem property tax on land cannot cause dynamic ineffciency of equilibrium allocations in an overlapping-generations model unless the tax is "confiscatory", i.e., equal to or greater than land rents. With such a tax, Homburg claims, land would be intrinsically worthless and the market for land would be closed. The latter claims are invalid because, as a store of value, land can be traded at a positive price even if the net rate of return on land is negative. |
| Keywords: | Property taxes, dynamic inefficiency, overaccumulation of capital, land |
| JEL: | D9 E62 H21 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:mpg:wpaper:2020_15&r=all |
| By: | Shanjukta Nath |
| Abstract: | The Deferred Acceptance algorithm is a popular school allocation mechanism thanks to its strategy proofness. However, with application costs, strategy proofness fails, leading to an identification problem. In this paper, I address this identification problem by developing a new Threshold Rank setting that models the entire rank order list as a one-step utility maximization problem. I apply this framework to study student assignments in Chile. There are three critical contributions of the paper. I develop a recursive algorithm to compute the likelihood of my one-step decision model. Partial identification is addressed by incorporating the outside value and the expected probability of admission into a linear cost framework. The empirical application reveals that although school proximity is a vital variable in school choice, student ability is critical for ranking high academic score schools. The results suggest that policy interventions such as tutoring aimed at improving student ability can help increase the representation of low-income low-ability students in better quality schools in Chile. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2010.15960&r=all |
| By: | Tamar Shuali Trachtenberg (Universidad Católica de Valencia San Vicente Mártir, España); Zvi Bekerman (The Hebrew University of Jerusalem, Israel); Antonio Bar Cendon (Universidad de Valencia, España); Miriam Prieto Egido (Universidad Autónoma de Madrid, España); Victoria Tenreiro Rodriguez (Universidad Católica de Valencia San Vicente Mártir, España); Iris Serrat Roozen (Universidad Católica de Valencia San Vicente Mártir, España); Clara Centeno (European Commission - JRC) |
| Abstract: | In spite of policy impetus, research shows that teachers struggle to address the increasing diversity in classrooms, among others, due to the lack of competences to deal with it. The acquisition of Intercultural Competence (IC), which could be defined as “the ability to mobilise and deploy relevant attitudes, skills, knowledge and values in order to interact effectively and appropriately in different intercultural situations†, is a crucial need for teachers to deal with diversity and to be successful in their teaching. In this context, in 2019 the JRC launched the INNO4DIV project with the aim to support polices in the field of IC of teachers, through the analysis of literature and innovative good practices which have successfully addressed the existing barriers for teacher´s IC development. The conceptual framework presented in this report aims at providing, for the purpose of the research project, a model of reference for the development of IC in teacher’s education in Europe. It offers an overview of international frameworks elaborated during the last decade in order to provide teachers with competences for addressing cultural diversity in the classroom, including the UNESCO Intercultural Competence, OECD Global Competence and Council of Europe (CoE) Competence for Democratic Culture frameworks, analysed within the perspective of the EU 2018 European Council Recommendation on Key Competences for Lifelong learning. The first part concludes by posing the CoE Reference Framework on Competences for Democratic Culture as the most suitable framework model for the research purpose, for its comprehensiveness and policy endorsement at EU level. The report also elaborates on the additional requirements for developing IC among teachers, such as institutional support, pedagogical approaches, assessment methods and tools, as well as personal and professional transformation. |
| Keywords: | education, intercultural competence, democratic competence, cultural diversity, inclusive education inclusion, intercultural pedagogy, key competences, teachers´ education. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc121348&r=all |
| By: | Detmold, Peter J. |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ctrf17:305877&r=all |