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on Urban and Real Estate Economics |
| By: | Sabrina-Sigrid Spiegel (University of Graz, Austria) |
| Abstract: | Austrian municipalities must re-evaluate their real estate portfolios every year. The existing Austrian house price datasets (based on the Austrian land register) cannot fully fulfill these requirements due to a lack of descriptive variables. When constructing a hedonic model, it is vital to assemble a dataset as complete as possible to minimize the extent of the omitted variables problem. This paper shows how an existing micro-level dataset can be improved and extended to raise the data’s explanatory power. Then these data are used to compile different temporal hedonic models for the nine regional capitals of Austria. The results show that the right choice of method is essential for smaller cities with fewer transactions. For bigger cities, with more transaction data, the choice of hedonic model is less important (with all suggested model formulations giving similar results). Thus, it is vital to consider the data structure and number of transactions when compiling indices for small regions (cities). |
| Keywords: | housing market; house price index; hedonic regression; rolling time dummy method; average characteristics method; repricing method; stratified median. |
| JEL: | C43 E47 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:grz:wpaper:2022-01&r= |
| By: | Nicole Loumeau (ETH Zurich, Switzerland) |
| Abstract: | This paper quantifies the causal effect of capital status on road network integration of U.S.micro/metropolitan statistical areas. Road network integration is defined using a class of measurements that evaluate how well a location is connected to all other locations through the National Highway System (NHS).To tackle the non-random placement of capital cities, I instrument capital status using a k-means clustering algorithm that predicts the boundaries of 48 U.S. states and defines the geographical center as a hypothetical capital location. Overall, I find significant and robust evidence that capital cities are more directly integrated in the NHS than non-capital cities of similar characteristics. I discuss two possible mechanisms behind the capital premium: (i) the favorable geographical position of capital cities within their state and (ii) a political interest in connecting capital cities well to major urban areas around. |
| Keywords: | capital cities, transport infrastructure, market access, clustering algorithm |
| JEL: | O18 R42 R42 R58 C26 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:21-498&r= |
| By: | David Guerrero (AME-SPLOTT - Systèmes Productifs, Logistique, Organisation des Transports et Travail - Université Gustave Eiffel); Jean Paul Hubert (AME-DEST - Dynamiques Economiques et Sociales des Transports - Université Gustave Eiffel); Martin Koning (AME-SPLOTT - Systèmes Productifs, Logistique, Organisation des Transports et Travail - Université Gustave Eiffel); Nicolas Roelandt (AME - Département Aménagement, Mobilités et Environnement - Université Gustave Eiffel) |
| Abstract: | This article analyses the relationship between the location of warehouses, the spatial scope of their activities and some of their operational characteristics. It uses the results of a French national survey providing detailed characteristics for 1,974 warehouses of more than 5,000 square metres. A typology of four spatial categories is built based on a population potential with different values of friction (?). Applying logistic regression, the four categories are related to survey data describing the spatial scope of the activities of warehouses, controlling for variations in other characteristics such as seasonality and vehicle movements. The results show a significant relationship between the location of warehouses and their spatial scope. As expected, warehouses with local origins are more frequent outside the core (inner Paris) and metropolitan location categories (outer Paris and other large urban areas). The findings suggest there may be significant differences in the spatial scope of warehouse activity even within the same urban area. |
| Keywords: | WAREHOUSE LOCATION,SPATIAL SCOPE,FREIGHT TRANSPORTATION,POPULATION POTENTIAL |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03551270&r= |
| By: | Nobuhiro Kiyotaki (Princeton University); Alexander Michaelides (Imperial College London); Kalin Nikolov (European Central Bank) |
| Abstract: | Housing is a long-lived asset whose value is sensitive to variations in long-term growth and interest rates. When a large fraction of the population is leveraged, housing price fluctuations cause large-scale redistribution and consumption volatility. We examine policies to mitigate the impact of housing fluctuations on vulnerable households. We find that the most practical way to insure the young and the poor from the housing cycle is through a well-functioning rental market. In practice, home-ownership subsidies keep the rental market small and the housing cycle affects aggregate consumption. Removing home-ownership subsidies hurts older home-owners, while leverage limits hurt younger home-owners. |
| Keywords: | Housing prices, credit constraints, distribution, rental markets, welfare |
| JEL: | D15 D58 E02 E21 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:pri:econom:2020-52&r= |
| By: | Ran Abramitzky (Stanford University); Leah Platt Boustan (Princeton University); Dylan Connor (Arizona State University) |
| Abstract: | We study a program that funded 39,000 Jewish households in New York City to leave enclave neighborhoods circa 1910. Compared to their neighbors with the same occupation and income score at baseline, program participants earned 4 percent more ten years after removal, and these gains persisted to the next generation. Men who left enclaves also married spouses with less Jewish names, but they did not choose less Jewish names for their children. Gains were largest for men who spent more years outside of an enclave. Our results suggest that leaving ethnic neighborhoods could facilitate economic advancement and assimilation into the broader society, but might make it more difficult to retain cultural identity. |
| Keywords: | New York City, urban, Jewish, ethnic neighborhoods, migration |
| JEL: | J15 N12 R23 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:pri:econom:2020-35&r= |
| By: | Sarah Quincy (Vanderbilt University); Rowena Gray (University of California, Merced) |
| Abstract: | The 1920s in the United States were a time of high income and wealth growth and rising inequality, up to the peak in 1929. It was an era of technological innovations such as electrification as well as booms in consumer durables, housing, and asset markets. The degree to which these skill-biased opportunities shaped property wealth inequality depends on how local and macro-level industrial shocks were capitalized into real estate values. We uncover the pattern for California, a state where shocks in oil, housing and stocks were large, and which has annual data on city-level property values and population counts. We show that electricity both increased values and reduced inequality in property values, while other booms had more short-lived and localized effects. |
| Keywords: | wealth inequality, booms, Roaring 20s |
| JEL: | N12 N33 N92 R31 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:hes:wpaper:0223&r= |
| By: | Luca Marchiori (Banque centrale du Luxembourg, Département Économie et Recherche); Julien Pascal (Banque centrale du Luxembourg, Département Économie et Recherche); Olivier Pierrard (Banque centrale du Luxembourg, Département Économie et Recherche) |
| Abstract: | We develop a monocentric urban search-and-matching model in which workers can choose to commute or to migrate within the region. The equilibrium endogenously allocates the population into three categories: migrants (relocate from their hometown to the city), commuters (traveling to work in the city) and home stayers (remaining in their hometown). We prove that the market equilibrium is usually not optimal: a composition externality may generate under- or over-migration with respect to the central planner’s solution, which in all cases results in under-investment in job vacancies and therefore production. We calibrate the model to the Greater Paris area to reproduce several gradients observed in the data, suggesting over-migration. We show how policy interventions can help to reduce inefficiencies. |
| Keywords: | Migration, Commuting, Urban search-and-matching, Efficiency, Policy |
| JEL: | E24 J68 R13 R23 |
| Date: | 2022–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2022006&r= |
| By: | Bennour, Khaled |
| Abstract: | This study explores the role of bullying in Saudi schools to explain absenteeism, gender-gap and between-school variation in mathematics achievement. Using the 2015 Trends in the International Mathematics and Science Study (TIMSS) dataset, the mathematics achievement scores and questionnaire responses of 4337 fourth-graders from 189 single-sex schools are analyzed. A multilevel linear modeling is employed; the results indicate that the level of student bullying and the average bullying score for that student’s school have a limited but significant impact on the risk of the student missing school. We highlight the potential role of bullying in explaining girls’ advantage in mathematics. The bullying level in a school is largely more predictive of the school mathematics achievement than measures of home background of students. All these findings demonstrate the need to tackle the bullying phenomenon in Saudi Arabia, particularly in the most afflicted all-boys schools, to reduce variation in performance between schools, decrease significantly the gender difference with regard to mathematics, and improve the overall attainment of Saudi schools and students. |
| Keywords: | bullying, absenteeism, gender-gap, educational achievement, TIMSS |
| JEL: | I21 |
| Date: | 2021–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111995&r= |
| By: | John Gibson (University of Waikato); Yi Jiang (Asian Development Bank); Bambang Susantono (Asian Development Bank) |
| Abstract: | There is increasing interest in assessing whether growth of big cities has effects that differ from effects of growth of secondary towns, especially for impacts on poverty. It can be difficult to study these issues with typical sub-national economic data for administrative units because urban growth often occurs outside of the administrative boundaries of cities. An emerging literature therefore uses remote sensing to measure patterns of urban growth without being restricted by limitations of data for administrative areas. We add to this literature by combining remote sensing data on night-time lights for 41 big cities and 497 districts in Indonesia with annual poverty estimates from socio-economic surveys, using spatial econometric models to examine effects of urban growth on poverty during 2011-19. We measure growth on both the extensive (lit area) and intensive (brightness within lit area) margins, and distinguish between growth of big cities and of secondary towns. The extensive margin growth of secondary towns is associated with lower rates of poverty but there is no similar effect for growth of big cities. The productivity advantages of big cities and concerns about agricultural land loss to expanding towns and cities may imply that urban growth patterns favouring big cities are warranted, while on the other hand these new results suggest, from a poverty reduction point of view, that policies to favour secondary towns may be warranted. Policymakers in countries like Indonesia therefore face difficult trade-offs when developing their urbanization strategies. |
| Keywords: | big cities; night-time lights; poverty; secondary towns;Indonesia |
| JEL: | O15 R12 |
| Date: | 2022–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:wai:econwp:22/05&r= |
| By: | Lisa Taruttis (Chair for Management Sciences and Energy Economics, University of Duisburg-Essen) |
| Abstract: | Improving the energy efficiency of residential buildings is of paramount importance to reduce CO2 emissions and hence to achieve a climate-neutral building stock – the objective of the German government for 2045. Thereby, a focus on the existing building stock is needed, as regulations for new buildings are already quite tight in terms of energy efficiency, and a large proportion of the dwelling stock of 2045 already exists today. For the important segment of rental housing, split incentives are often invoked as an impediment for energy-related investments. Yet this implicitly takes the tenant-landlord relationship as given. On the market where prospective renters meet the dwelling offers, competitive forces and rational behavior on both sides would imply that the monthly net rent should reflect (with opposite sign) differences in expected monthly heating costs – other things being equal. We test this hypothesis by specifying a hedonic price model that reflects this gross-cost-of-renting perspective and applying it on a detailed dataset including dwelling and neighborhood characteristics. As a case study, we use data for the German state of North Rhine-Westphalia, which implies that variations in regulatory and meteorological conditions are small, while large socioeconomic differences across subregions exist (e.g., in terms of purchasing power or unemployment rates). Drawing on 844,229 observations from 2014 to 2020 on a small spatial scale, we find a premium for more efficient apartments; however, it is rather small. The expected energy cost savings exceed the premium by approximately a factor of six. Rather, we find large discounts if apartments use heating technologies that are known to be inefficient. The paper explores various explanations for these outcomes, considering both landlord and renter behavior as well as institutional settings. |
| Keywords: | Hedonic Analysis, Rental market, Housing market, Energy Efficiency, Residential Buildings |
| JEL: | C21 Q40 R21 R31 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:dui:wpaper:2202&r= |
| By: | Riccardo Ciacci (Universidad Pontificia Comillas); María Micaela María (Princeton University) |
| Abstract: | This paper studies how the presence of adult entertainment establishments affects the incidence of sex crimes, including sexual abuse and rape. We build a high frequency daily and weekly panel that combines the exact location of not-self-reported sex crimes with the day of opening and exact location of adult entertainment establishments in New York City. We find that these businesses decrease sex crime by 13% per police precinct one week after the opening, and have no effect on other types of crimes. The results imply that the reduction is mostly driven by potential sex offenders frequenting these establishments rather than committing crimes. We also rule out the possibility that other mechanisms are driving our results, such as an increase in the number of police officers, a reduction in the number of street prostitutes and a possible reduction in the number of potential victims in areas where these businesses opened. The effects are robust to using alternative measures of sex crimes. |
| Keywords: | Sex crimes, rape, adult entertainment establishments, substitute services |
| JEL: | I18 J16 J47 K14 K42 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:pri:econom:2020-44&r= |
| By: | Adam Altmejd (Stockholm University); Andrés Barrios-Fernández (MIT); Marin Drlje (CERGE-EI); Joshua Goodman (Boston University); Michael Hurwitz (College Board) |
| Abstract: | Family and social networks are widely believed to influence important life decisions but identifying their causal effects is notoriously difficult. Using admissions thresholds that directly affect older but not younger siblings’ college options, we present evidence from the United States, Chile, Sweden and Croatia that older siblings’ college and major choices can significantly influence their younger siblings’ college and major choices. On the extensive margin, an older sibling’s enrollment in a better college increases a younger sibling’s probability of enrolling in college at all, especially for families with low predicted probabilities of enrollment. On the intensive margin, an older sibling’s choice of college or major increases the probability that a younger sibling applies to and enrolls in that same college or major. Spillovers in major choice are stronger when older siblings enroll and succeed in more selective and higher-earning majors. The observed spillovers are not well explained by price, income, proximity or legacy effects, but are most consistent with older siblings transmitting otherwise unavailable information about the college experience and its potential returns. The importance of such personally salient information may partly explain persistent differences in college-going rates by geography, income, and other determinants of social networks. |
| Keywords: | Sibling Effects, College and Major Choice, Peer and Social Network Effects, United States, Chile, Sweden, Croatia |
| JEL: | I21 I24 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:pri:econom:2020-41&r= |
| By: | Singh, Suraj Shirodkar; Javanmard, Reyhane; Lee, Jinhyung; Kim, Junghwan; Diab, Ehab |
| Abstract: | Recently, in Winnipeg, the implementation of new bus rapid transit (BRT) system in the middle of the COVID-19 pandemic has raised many concerns, challenging the rationale behind the untimely release. However, the new BRT service can benefit low-income, socio-economically vulnerable, and transit captive passengers who must travel to essential services and work opportunities during the pandemic. This study evaluates whether the new BRT system has positive impacts on accessibility to such essential services during the pandemic. Isochrones with different time budgets as well as times of a day are generated based on high-resolution public transit network via the General Transit Feed Specification (GTFS) data and used for evaluating accessibility benefits before and after the BRT construction. The new BRT service in Winnipeg demonstrates varying accessibility impacts across different parts of the BRT corridor. Areas near dedicated lane-section show a significant increase, whereas areas near non-dedicated lane sections show a decrease in accessibility. Nevertheless, across the whole BRT corridor, the new BRT service presents an overall increase in accessibility to essential services. This demonstrates the positive accessibility benefits of the new BRT service to residents seeking essential services during the COVID-19 pandemic. A decrease in accessibility along some parts suggests the necessity of using local transit improvement strategies (e.g., dedicated lanes) to improve service speed when planning BRT services within urban areas. |
| Date: | 2021–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:anjd7&r= |
| By: | Paula Prenzel; Niels Bosma; Veronique Schutjens; Erik Stam |
| Abstract: | A growing empirical literature has established a positive relationship between cultural diversity and entrepreneurship rates, often attributing this effect to innovative benefits of diversity. However, not all entrepreneurship is inherently innovative, raising the question of whether cultural diversity may increase the relative prevalence of entrepreneurs pursuing innovative instead of more replicative strategies. This study investigates the relationship between regional cultural diversity and the innovation-orientation of early-stage entrepreneurs and considers moderating factors by decomposing shares of foreign-born population by origin within and outside of the EU and by education level. Combining survey data from the Global Entrepreneurship Monitor with various measures of cultural diversity, we carry out a multilevel analysis for 166 European regions. The results suggest that entrepreneurs in more culturally diverse regions are significantly more likely to exhibit innovation-orientation. We find some evidence that this effect is supported by cognitive proximity as the share of EU-born foreign population is driving this result. Moreover, our analysis suggests that the effect of cultural diversity on innovative entrepreneurship is not due to human capital availability or moderated by entrepreneurs' absorptive capacity but rather stems from the diversity in cultural background itself. |
| Keywords: | cultural diversity, entrepreneurship, innovation, European regions, multilevel analysis |
| JEL: | F22 L26 O30 R1 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2205&r= |
| By: | Briones, Kristine Joy; Del Mundo, Michael Dominic |
| Abstract: | The COVID-19 pandemic has created economic disruption in the Philippines, resulting in loss of income for many workers. Because of this, many internal migrants, particularly those who continued to have close ties to their place of origin, returned home. This report investigates internal migrants in the country using preliminary data from the 2020 Census of Population and Housing (CPH) by the Philippine Statistics Authority. While not completely exhaustive, the 2020 CPH may help identify arease where the population has increased or decreased compared to expectations or population projections. Higher-than-expected population is due to relocation of families from danger zones to resettlement areas. Lower-than expected population, on the other hand, is seen areas where natural calamities frequently strike and in urbanized areas usually populated by students and worker residents before the pandemic. |
| Keywords: | COVID-19, internal migration, population, Philippines |
| JEL: | I1 J6 |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111917&r= |
| By: | Antonin Bergeaud (Banque de France - Banque de France - Banque de France, CEPR - Center for Economic Policy Research - CEPR); Jean-Benoît Eymeoud (Banque de France - Banque de France - Banque de France, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques [Sciences Po] - Sciences Po - Sciences Po); Thomas Garcia (Banque de France - Banque de France - Banque de France); Dorian Henricot (Banque de France - Banque de France - Banque de France, ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We examine how corporate real estate market participants adjust to the take-off of teleworking. We develop an indicator of the exposure of counties to teleworking in France by combining teleworking capacity with incentives and frictions to its deployment. We study how this indicator relates to prices and quantities in the corporate real estate market. We find that for offices in counties more exposed, the Covid-19 crisis has led to (1) higher vacancy rates, (2) less construction, (3) lower prices. Our findings reveal that teleworking has already an impact on the office market. Furthermore, forward-looking indicators suggest that market participants are anticipating the shift to teleworking to be durable. |
| Keywords: | Teleworking,Commercial real estate,Corporate real estate |
| Date: | 2022–01–27 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03548889&r= |
| By: | Federico Maggio (Free University of Bozen-Bolzano, Italy); Carlo Caporali (Gran Sasso Science Institute, Italy) |
| Abstract: | During the 2010s, Venezuela underwent the worst and deepest crisis of any nonwar- ridden country in modern history. The failure of the socialist utopia, the economic crisis, the increasing lack of primary resources, and the dictatorial turn have caused the third, most dramatic, and complex Venezuelan out-migration wave in the past decade. Drawing on exclusive and georeferenced survey data collected in Venezuela and providing information on 21,382 individuals, this paper investigates the role of the police force militarization in the Venezuelan migration crisis of 2018. We find that the higher is the level of authoritative violence - proxied by the share of homicides committed by the security forces - the higher is the likelihood for an individual to migrate. The effect is significant only among males with a lower level of education. Estimates which rely on the travel time from the capital to each state’s most populated city as an instrumental variable, are robust to the inclusion of several households, environmental and sociodemographic characteristics, including the overall level of violence represented by the number of violent deaths per 100,000 inhabitants. |
| Keywords: | Venezuela, Diaspora, State Violence, Police militarization. |
| JEL: | F22 O15 R23 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:bzn:wpaper:bemps92&r= |
| By: | Tokey, Ahmad Ilderim |
| Abstract: | This article examines the social equity of e-scooter availability across different socially disadvantaged groups in Minneapolis, MN (USA). The city’s northwestern part with high poverty rates has a higher e-scooter availability rate than its counterparts. Also, this study did not find any significant inequality involved with race or educational attainment. However, while the city performed well on these, areas with a high percentage of commuters, dependent on transit, bike, and walking, have fewer e-scooters available on their streets. As such an area, the local models of this study underscore the need for more e-scooter deployment in areas close to downtown. |
| Date: | 2021–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:fj63h&r= |
| By: | Daniel L. Dench; Theodore J. Joyce |
| Abstract: | The rapid increase in online instruction in higher education has heightened concerns about cheating. We use a randomized control design to test whether informing students that we can detect plagiarism reduces cheating. We further test whether informing students they have been caught cheating reduces subsequent cheating. We find informing students about our capability to detect plagiarism has little effect on cheating. Notifying students that they have been caught cheating and are on a watch list reduces subsequent cheating attempts by at least 65 percent depending on the class and sample. We test for peer effects but conclude we cannot credibly identify peer effects distinct from own-cheating propensities. |
| JEL: | I23 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29755&r= |
| By: | Thanh Nguyen, Phong; Anh Nguyen, Thu; Huynh Tat Tran, Thang |
| Abstract: | This paper identifies potential barrier factors affecting effectiveness and development (ED) of ITS projects as well as criteria for measuring ED of ITS projects in Ho Chi Minh City, Vietnam. The study discovers the barrier constructs, and analyzes data using the Partial Least Squares Structural Equation Modeling method (PLS-SEM). The results provides a general and comprehensive overview of the main issues of ITS, and identifies 28 barrier factors with five main constructs affecting ED of ITS projects, namely the lack of undivided attention from the government (AG), financial constraints for ITS (FC), inadequate transport infrastructure (ITI), the over-development of urbanization (ODU), and the readiness and integration for ITS (RI). This paper fill the knowledge gap by discovering the causal relationships between barrier constructs and ED of ITS projects in Vietnam. Also it proposes several solutions for these issues, which are also a useful measurement tool for government agencies, planners, and traffic system designers to help them self-assess and make action plans now or in the near future. |
| Keywords: | Barrier Factors, PLS-SEM, Intelligent Transport Systems (ITS), Smart City, Vietnam |
| JEL: | O18 O22 R4 R48 |
| Date: | 2021–11–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:112006&r= |
| By: | Irene González Rodríguez; Marta Pascual Sáez; David Cantarero Prieto |
| Abstract: | The impact of the COVID-19 pandemic is not the same between regions. The aim of this study is to assess whether the infection rate depends on socioeconomic factors and whether there are spatial interactions between the Spanish regions. To this end, the Moran's test and spatial econometric models are used. The results suggest that the COVID-19 cases tends to form spatial clusters. In addition, the population density, the illiteracy rate and the unemployment rate are found to influence the spread of the coronavirus. Our analysis can be considered to apply policy intervention measures to reduce health population inequalities. |
| Keywords: | COVID-19, spatial econometrics, socioeconomic inequalities, Spain. |
| JEL: | I14 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:gov:wpregi:2201&r= |
| By: | Pieroni, Luca; d'Agostino, Giorgio; Lanari, Donatella; Scarlato, Margherita |
| Abstract: | In this paper, we examine how immigrants' proficiency in the Italian language affects their labour market performance using hitherto unexploited immigration survey published by the Italian Institute of Statistics. With respect to immigrants with good proficiency in the Italian language, our empirical findings suggest that weak language proficiency reduces employment by about 25-30 percentage points. Language proficiency in Italian also significantly affects the hourly wages of immigrants. The point estimates suggest an hourly wage gap of more than 30% between immigrants with good proficiency in the Italian language compared to those with weak proficiency, irrespective of gender. Robustness checks confirmed our estimates. |
| Keywords: | Immigrants, Language skills, Employment, Hourly wages |
| JEL: | J15 J20 J31 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111991&r= |
| By: | Patricio Dom\'inguez; Nicol\'as Grau; Dami\'an Vergara |
| Abstract: | This paper tests for discrimination against immigrant defendants in the criminal justice system in Chile using a decade of nationwide administrative records on pretrial detentions. Observational benchmark regressions show that immigrant defendants are 8.6 percentage points less likely to be released pretrial relative to Chilean defendants with similar proxies for pretrial misconduct potential. Diagnostics for omitted variable bias -- including a novel test to assess the quality of the proxy vector based on comparisons of pretrial misconduct rates among released defendants -- suggest that the discrimination estimates are not driven by omitted variable bias and that, if anything, failing to fully account for differences in misconduct potential leads to an underestimation of discrimination. Our estimates suggest that discrimination stems from an informational problem because judges do not observe criminal records in origin countries, with stereotypes and taste-based discrimination playing a role in the problem's resolution. We find that discrimination is especially large for drug offenses and that discrimination increased after a recent immigration wave. |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2202.10685&r= |
| By: | Sumit Agarwal (National University of Singapore); John R. Grigsby (Princeton University); Ali Hortaçsu (University of Chicago); Gregor Matvos (Northwestern University); Amit Seru (Stanford University) |
| Abstract: | We study the interaction of search and application approval in credit markets. We combine a unique dataset, which details search behavior for a large sample of mortgage borrowers, with loan application and rejection decisions. Our data reveal substantial dispersion in mortgage rates and search intensity, conditional on observables. However, in contrast to predictions of standard search models, we find a novel non-monotonic relationship between search and realized prices: borrowers, who search a lot, obtain more expensive mortgages than borrowers' with less frequent search. The evidence suggests that this occurs because lenders screen borrowers' creditworthiness, rejecting unworthy borrowers, which differentiates consumer credit markets from other search markets. Based on these insights, we build a model that combines search and screening in presence of asymmetric information. Risky borrowers internalize the probability that their application is rejected, and behave as if they had higher search costs. The model rationalizes the relationship between search, interest rates, defaults, and application rejections, and highlights the tight link between credit standards and pricing. We estimate the parameters of the model and study several counterfactuals. The model suggests that "overpayment" may be a poor proxy for consumer unsophistication since it partly represents rational search in presence of rejections. Moreover, the development of improved screening technologies from AI and big data (i.e., fintech lending) could endogenously lead to more severe adverse selection in credit markets. Finally, place based policies, such as the Community Reinvestment Act, may affect equilibrium prices through endogenous search responses rather than increased credit risk. |
| Keywords: | credit markets, household finance |
| JEL: | G21 G50 G51 G53 L00 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:pri:econom:2020-01&r= |
| By: | Tomomi Miyazaki (Graduate School of Economics, Kobe University); Haruo Kondoh (Department of Economics, Seinan Gakuin University) |
| Abstract: | This study examines the effects of the interaction between unconventional monetary policy and fiscal stimulus on regional employment in Japan. A mixed vector autoregressions (VARs)/event study approach is used. Our empirical findings first show that whereas employment recovery was salient in western Japan, it was not the case in Tokyo metropolitan areas, the country’s main economic hub. Second, we confirm employment recovery on female employees in all regions. However, we do not observe this on male employees, implying the policy interaction did not necessarily increase the number of regular workers, which might suppress a wage hike in the entire country. |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:2206&r= |
| By: | Atsushi Yamagishi (Faculty of Economics, Princeton University); Yasuhiro Sato (Faculty of Economics, The University of Tokyo) |
| URL: | http://d.repec.org/n?u=RePEc:tky:fseres:2022cf1188&r= |
| By: | Anne Plunket (RITM - Réseaux Innovation Territoires et Mondialisation - UP11 - Université Paris-Sud - Paris 11); Felipe Starosta de Waldemar (RITM - Réseaux Innovation Territoires et Mondialisation - UP11 - Université Paris-Sud - Paris 11) |
| Abstract: | This paper investigates the impact of regional technological relatedness on the emergence of recombinant novelty (i.e. new combinations of subclasses occurring for the first time) in French regions using patent data over 1990-2010. We find that relatedness favors incremental innovations which reuse already applied combinations, whereas increasing levels of relatedness reduces the likelihood of novelty. However, the impact is less negative when combined technologies are new, unrelated or not locally specialized because it facilitates learning and technological recombination. We also find that universities and large incumbents are less dependent on relatedness than small and novel players to create novelty. |
| Keywords: | innovation,recombinant novelty,technological relatedness,Regional development |
| Date: | 2022–02–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03567051&r= |
| By: | Celia P. Vera (Universidad de Piura); Bruno Jiménez (Universidad Nacional de La Plata) |
| Abstract: | Peru is the second largest host nation of Venezuelan migrants. This paper combines newly available data on Venezuelans residing in Peru and the Peruvian Household Survey to assess the impact of migration on natives? labor market outcomes. We first rely upon education-experience groups to define labor markets and find that immigration does not affect the wages of competing native workers. We then slice the labor market into occupations based on the observation that in Peru, immigrants and natives with similar education and experience are likely to work in different occupations. Our instrumental variable estimates confirm the null effect on wages. We finally examine whether natives respond with changes in employment and find that 10 Venezuelan workers create informal employment for 38 Peruvians and displace 13 Peruvians from formal jobs, suggesting a change in the Peruvian employment composition toward informality. |
| Keywords: | Immigration, education-experience cells, occupation cells, informality |
| JEL: | J24 J31 J46 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:ima:wpaper:2022-018&r= |
| By: | Helle, Joose; Poom, Age; Willberg, Elias S; Toivonen, Tuuli |
| Abstract: | Green Paths is a prototype of route planning software for finding exposure-optimised routes for active travel. It incorporates external data on environmental exposures, including traffic noise levels, air quality, and street-level greenery into the street and paths network produced by the OpenStreetMap project. Written in the Python programming language, the software applies a novel environmental impedance function in the least cost path routing to find exposure-optimised routes. Routes for externally defined origin-destination pairs can be queried via a RESTful API. The API returns alternative routes equipped with rich exposure data. The published version of the software has been applied in population level environmental exposure assessment and in an end-user-oriented web-based route planner application designed for use in the Helsinki Metropolitan Area. |
| Date: | 2021–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:vxcp3&r= |
| By: | Carole Brunet (carole.brunet@univ-paris8.fr); Thierry Kamionka (kamionka@ensae.fr); Guy Lacroix (guy.lacroix@ecn.ulaval.ca) |
| Abstract: | The paper investigates the links between home ownership, employment and earnings. The motivation stems from the lack of consensus in the literature linking these outcomes. Our analysis is cast within a dynamic setting and the endogeneity of each outcome is assessed through the estimation of a flexible panel multivariate model with random effects. The data we use are drawn from the French sample of the EU Survey on Income and Living Conditions for the years 2004–2013. Our results show that while homeowners have longer employment and unemployment spells, they must contend with lower earnings than tenants upon reemployment. Importantly, our results highlight the importance of distinguishing between outright and indebted home owners. Indeed, the latter are found to behave more or less like tenants on the labour market. At the aggregate level, thus, the positive relationship between home ownership and unemployment rate, known as Oswald’s conjecture, might thus depend on the share of leveraged homeowners in the population. |
| Keywords: | Home Ownership, Unemployment, Earnings, Heterogeneity, Simulation base destimation, Paneldata |
| JEL: | J21 J64 J31 C33 C35 |
| Date: | 2022–03–14 |
| URL: | http://d.repec.org/n?u=RePEc:crs:wpaper:2022-05&r= |
| By: | Emanuele Millemaci (University of Messina); Alessandra Patti (University of Messina) |
| Abstract: | In recent years, young brain drain within Italian provinces has increased at higher speed than ever. While is premature to assess whether this process is transitory or permanent, it should be analysed and monitored by researchers and policy makers for its many socio-economic consequences. Previous empirical studies have demonstrated that Italian net skilled migration is influenced by economic factors, such as income per capita and employment, and, with a less extent, by the search of places endowed with more amenities. In the crossroad between these factors, this paper investigates corruption as key element of the Italian skilled mobility. To this end, a comprehensive framework with Zero-Inflated Poisson and Pseudo-Poisson Maximum Likelihood with High Dimensional Fixed Effects models for bilateral data on the Italian students’ flows is used. Results suggest the dual role of push and pull mechanisms at play, as high corruption incentivizes Italian skilled mobility to destinations that, instead, exhibit lower corruption. Moreover, sensitivity of the prospective tertiary students to corruption varies according to their field of study of interest. Finally, empirical evidence on skilled flows from the lagging Mezzogiorno to the North of Italy, suggests that the push and pull effects of corruption stir up the endurance of the well-known socio-economic dualism between these two parts of the country. |
| Keywords: | Brain drain, Corruption, Panel data, Gravity, Zip, Ppmlhdfe |
| JEL: | D73 F12 R23 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2022.10&r= |
| By: | Adam Kapor (Princeton University) |
| Abstract: | This paper compares the impacts of providing information about college admissions and financial aid at scale to those of large-scale policies which directly impact admissions and financial aid offers. It uses variation induced by the "Top Ten Percent" policy in Texas, which guaranteed admissions to each in-state public university to all students ranking in the top decile of their high school class, to estimate a model of college applications, admissions, and achievement. Texas Top Ten caused more students from high-poverty schools to enroll at the flagship universities. Moreover, students who enrolled under it achieved higher GPAs than those who would have enrolled at flagships in its absence, primarily because the admissions guarantee induced strong students to submit applications. Texas Top Ten had small effects on minority enrollment. An expansion of a targeted scholarship program would enroll more students from high-poverty schools than would purely-informative interventions. |
| Keywords: | Affirmative Action, Higher Education, Financial Aid |
| JEL: | I22 I23 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:pri:econom:2020-51&r= |
| By: | Kaur, Amandeep; Mohanty, Ranjan; Chakraborty, Lekha S; Rangan, Divy |
| Abstract: | This paper examines the empirical evidence of flypaper effects in the ecological fiscal spending in India. Using the panel data models, we analyse whether the intergovernmental fiscal transfers, or the states’ own income determine the expenditure commitments on ecology at the State level. The econometric results show that the intergovernmental fiscal transfers rather than the states’ own income determines ecological expenditure at subnational levels in India. The results hold, when the models are controlled for ecological outcomes and demographic variables. |
| Keywords: | Intergovernmental Transfers, Flypaper effect, Environmental Economics, Macroeconomic Policy, National Government Expenditures |
| JEL: | E6 H5 H7 Q5 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111947&r= |
| By: | Maximilian Benner |
| Abstract: | The legitimation of new industrial regional paths has become a crucial issue in path development since it touches the institutional foundations of regional evolution. In institutional theory, legitimacy is considered a critical fundament of institutionalization, and the institutional logics perspective draws attention to the different material and symbolic sources of legitimacy. Drawing on neo-institutional sociology, this article proposes a nuanced understanding of legitimation dynamics in regional industrial path development by arguing that new paths are legitimized by interlinking different institutional logics through symbolic constructions used for meaning-making such as future-oriented visions. Empirical examples from two tourism destinations in Israel’s Negev desert illustrate this mechanism. |
| Keywords: | evolutionary economic geography; institutional logics; legitimacy; path development |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwpeg:geo-disc-2022_01&r= |
| By: | Resce, Giuliano |
| Abstract: | This paper investigates the impact of non-political administrators on the financial management of local governments. The activity of prefectorial officials is compared with the activity of elected mayors exploiting data extracted from a panel of 7826 Italian municipalities from 2007 to 2018. To address the potential confounding effects and selection biases, we combine a Difference in Difference strategy with machine learning methods for counterfactual analysis. Results show that non-political administrators bring higher financial autonomy and higher collection capacity, raising more revenues at local level. This is consistent with the hypothesis that, since they do not respond to electoral incentives, non-political administrators have lower motivations to behave strategically, not taking their own interests about electoral successes into account when they have to choose the proportion of local versus external revenues for financing local expenditure. |
| Keywords: | Local Government, Electoral Incentives, Accountability |
| JEL: | D7 H2 H77 |
| Date: | 2022–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:mol:ecsdps:esdp22079&r= |
| By: | Millemaci, Emanuele; Patti, Alessandra |
| Abstract: | In recent years, young brain drain within Italian provinces has increased at higher speed than ever. While is premature to assess whether this process is transitory or permanent, it should be analysed and monitored by researchers and policy makers for its many socio-economic consequences. Previous empirical studies have demonstrated that Italian net skilled migration is influenced by economic factors, such as income per capita and employment, and, with a less extent, by the search of places endowed with more amenities. In the crossroad between these factors, this paper investigates corruption as key element of the Italian skilled mobility. To this end, a comprehensive framework with Zero-Inflated Poisson and Pseudo-Poisson Maximum Likelihood with High Dimensional Fixed Effects models for bilateral data on the Italian students’ flows is used. Results suggest the dual role of push and pull mechanisms at play, as high corruption incentivizes Italian skilled mobility to destinations that, instead, exhibit lower corruption. Moreover, sensitivity of the prospective tertiary students to corruption varies according to their field of study of interest. Finally, empirical evidence on skilled flows from the lagging Mezzogiorno to the North of Italy, suggests that the push and pull effects of corruption stir up the endurance of the well-known socio-economic dualism between these two parts of the country. |
| Keywords: | Labor and Human Capital, Research Methods/ Statistical Methods |
| Date: | 2022–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:319966&r= |
| By: | Albuquerque, Bruno (International Monetary Fund); Varadi, Alexandra (Bank of England) |
| Abstract: | We use UK transaction-level data during the Covid-19 pandemic to study whether mortgage payment holidays (PH) can act as a mechanism for smoothing household consumption following negative aggregate shocks. Our results suggest that mortgage PH were accessed by both households with pre-existing financial vulnerabilities and by those with stronger balance sheets, including buy-to-let investors. We also find that the temporary liquidity relief provided by PH allowed liquidity-constrained households to maintain higher annual consumption growth compared to those non-eligible for the policy. Finally, we find that mortgage PH led to higher saving rates for more financially-stable households. |
| Keywords: | Mortgage payment holidays; household behaviour; consumption; high-frequency data; difference-in-differences; panel data |
| JEL: | D14 E21 G51 |
| Date: | 2022–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:boe:boeewp:0963&r= |
| By: | Emiliano A. Carlevaro (Economics Department, Business School, The University of Western Australia) |
| Keywords: | Spatial autoregressive, Banking crises, Financial contagion, Argentina |
| JEL: | C21 E44 G01 G21 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:22-01&r= |
| By: | Ignacio Lago |
| Abstract: | I rely on data from 31,754 electoral districts in the United States from 1834 until 2016 to explore how the nationalization of politics occurs within districts. I argue that in the early stages of the American democracy local concerns were more prominent in the distant districts from the capital city than in the nearby districts, and therefore the number of parties was greater in the former than in the latter. However, these differences vanished after the New Deal, when authority was centralized. Nationalization reduced the number of parties everywhere, but above all in the most distant district from Washington, D.C. |
| Keywords: | Country Size; Decentralization; District; Nationalization; United States. |
| JEL: | H72 H74 H77 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:gov:wpaper:2201&r= |
| By: | Bertrand Garbinti (CREST-ENSAE-Institut Polytechnique Paris); Pierre Lamarche (CREST-INSEE); Fredérique Savignac (Banque de France) |
| Abstract: | We study how the marginal propensity to consume out of wealth (MPC) varies across households depending on the level and composition of their wealth. We build a unique household-level panel dataset which combines wealth and consumption surveys for five European countries to estimate country-specific marginal propensity to consume out wealth. We use instrumented household-level panel regressions. First, we show that the MPC out of total wealth is higher for lowwealth households, whatever the country. Second, we find that the MPC out of housing assets is significant and decreasing along the wealth distribution in all countries. Third, we show that the observed cross-country heterogeneity in MPC is strongly correlated with the use of mortgages, suggesting a collateral channel. Finally, we conduct a simulation exercise to investigate to what extent heterogeneous MPC and wealth inequality affect consumption inequality. |
| Keywords: | consumption, marginal propensity to consume out of wealth, collateral channel, household surveys |
| JEL: | D12 E21 C21 |
| Date: | 2022–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:crs:wpaper:2022-02&r= |
| By: | Mina Cikara (Harvard University); Vasiliki Fouka (Stanford University); Marco Tabellini (Harvard Business School, Business, Government and the International Economy Unit) |
| Abstract: | People are on the move in unprecedented numbers within and between countries. How does demographic change affect local intergroup dynamics? In complement to accounts that emphasize stereotypical features of groups as determinants of their treatment, we propose the group reference dependence hypothesis: violence and negative attitudes toward each minoritized group will depend on the number and size of other minoritized groups in a community. Specifically, as groups increase or decrease in rank in terms of their size (e.g., to largest minority within a community), discriminatory behavior and attitudes toward them should change accordingly. We test this hypothesis for hate crimes in U.S. counties between 1990 and 2010 and attitudes in the U.S. and U.K. over the last two decades. Consistent with this prediction, we find that, as Black, Hispanic/Latinx, Asian, and Arab populations increase in rank relative to one another, they become more likely to be targeted with hate crimes and more negative attitudes. The rank effect holds above and beyond group size/proportion, growth rate, and many other alternative explanations. This framework makes novel predictions about how demographic shifts may affect coalitional structures in the coming years and helps explain previous findings in the literature. Our results also indicate that attitudes and behaviors toward social categories are not intransigent or driven only by features associated with those groups, such as stereotypes. |
| Keywords: | hate crimes, prejudice, minority, reference dependence, demographics, rank and position, prejudice and bias, crime and corruption, |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:21-075&r= |
| By: | Wall, Howard |
| Abstract: | This paper examines state-level differences in the effects of the Great Recession. It finds that several states were in recession prior to the official start of the recession, while more than a dozen states didn’t enter recession until six months or more after the official start. States’ exits from recession were similarly staggered. As a result, 11 states’ recessions lasted one year or shorter, while the recessions for five states lasted two years or longer. Further, there were geographic patterns to the spread of the recession across states. I use these state-level estimates to introduce a new approach for calculating the total effects of recessions on employment, one that accounts for lost employment growth as well the decrease in employment. States formed distinct geographic groupings according to these total effects, with states in the West and Southeast tending to have seen the greatest harm. Finally, many of the state-level differences in the effects of the Great Recession were related to differences in industry mix and the prevalence of sub-prime mortgages. The states with the longest and deepest recessions also tended to have been those with the highest shares of subprime mortgages. |
| Keywords: | State recessions |
| JEL: | E24 E32 R12 |
| Date: | 2022–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:112005&r= |