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on Urban and Real Estate Economics |
| By: | Seth Gershenson; Constance A. Lindsay; Nicholas W. Papageorge; Romaine A. Campbell; Jessica H. Rendon |
| Abstract: | Do white teachers learn racial competency from their Black peers? We answer this question using a mixed-methods approach. Longitudinal administrative data from North Carolina show that having a Black same-grade peer significantly improves the achievement and reduces the suspension rates of white teachers’ Black students. Open-ended interviews of North Carolina public school teachers reaffirm these findings. Broadly, our findings suggest that the positive impact of Black teachers’ ability to successfully teach Black students is not limited to their direct interaction with Black students but is augmented by spillover effects on early-career white teachers, likely through peer learning. |
| JEL: | I20 J24 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31847&r=ure |
| By: | Riley Wilson |
| Abstract: | I document a new fact about mobility within the United States. County-to-county migration and commuting drop discretely at state borders. People are three times as likely to move to a county 15 miles away, but in the same state, than to an equally-distant county across state lines. Standard economic explanations, like differences in amenities or moving costs, have little explanatory power. Experimental evidence suggests many people experience “home state bias” and discount out-of-state moves, independent of whether social ties are present. This pattern has real economic costs, resulting in local labor markets that are less dynamic after negative economic shocks. |
| Keywords: | internal migration, commuting, social networks, home state bias, border discontinuities |
| JEL: | J61 R23 D91 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10724&r=ure |
| By: | David Mazáček |
| Abstract: | This study investigates the challenges of affordable housing, delving into its concept and the diverse metrics used for measuring housing affordability, which influences the formulation of relevant affordable housing policies. The primary focus of this paper centers on defining the concept of affordable housing, exploring its implications for enhancing quality of life, and addressing the complexities involved in measuring its affordability accurately. Building upon the research, the paper proposes a possible optimal methodology for measuring housing affordability. This method suggests employing a price/rent-to-income ratio, encompassing a comprehensive assessment of housing-related expenses and a refined calculation of household income. Importantly, the study highlights the need for policymakers to differentiate between home-renters and homeowners when discussing housing affordability as well as between the immediate and structural lack of affordability. |
| Keywords: | Affordable housing concept, Housing policy, Affordable housing measurements, Actual affordability, Long-term affordability |
| JEL: | D14 R21 R31 R38 |
| Date: | 2023–08–30 |
| URL: | http://d.repec.org/n?u=RePEc:prg:jnlwps:v:5:y:2023:id:5.008&r=ure |
| By: | Donato Masciandaro; Raffaella Barone |
| Abstract: | We offer a theoretical and empirical analysis of the intertwined relationships among environmental crime revenues, corruption, and money laundering, when the illegal cleaning process is implemented via the real-estate sector. Modelling such as relationships through a logistic function, we estimate the overall environmental crime revenues using Italian regional data from 1995 to 2020. |
| Keywords: | environmental crime, corruption, money laundering, real-estate sector, Italy |
| JEL: | D7 F18 K4 R30 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:baf:cbafwp:cbafwp23211&r=ure |
| By: | Garbarino, Nicola; Lee, Jonathan; Guin, Benjamin |
| JEL: | G21 Q54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277665&r=ure |
| By: | Fil Babalievsky; Kyle F. Herkenhoff; Lee E. Ohanian; Edward C. Prescott |
| Abstract: | Commercial real estate accounts for roughly 20% of the U.S. fixed asset stock, and commercial land use is highly regulated. However, little is known about the quantitative impact of these regulations on economic activity or consumer welfare. This paper develops a spatial general equilibrium model of the U.S. economy that includes commercial real estate regulations and congestion effects, the latter of which provide a rationale for such regulations. The model is tailored to exploit the near-universe of CoreLogic's commercial, parcel-level, property tax records to construct a quantitative index of commercial real estate regulations for nearly every commercial property. We use the model to evaluate the positive and normative impacts of commercial land use deregulations. Moderately relaxing commercial regulations across all U.S. cities yields large allocative efficiency effects, with output gains of about 3 percent to 6 percent and welfare gains of about 3 percent to 9 percent of lifetime consumption. We also find significant positive and normative gains from deregulation with 40 percent of the labor force working remotely. |
| JEL: | E02 K2 R2 R3 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31895&r=ure |
| By: | Vivek Sharma |
| Abstract: | Using a Two-Agent RBC model with time-varying shock to loan-to-value (LTV) ratios, I show that including housing (real estate or land) in the entrepreneurial production function has profound implications for results. In a model in which housing does not play a role as a production input, an LTV tightening has starkly different effects compared to a model in which it is a factor in the production process. In a setup devoid of a role for housing as a production input, differently from the results in the current literature, an LTV tightening leads to a spike in housing price at impact and a lesser fall afterwards. Other macroeconomic variables such as investment and output fall more at lower initial LTV ratios than at higher steady state LTV ratios. The findings of this paper indicate that housing plays an important role in shaping macroeconomic effects of LTV shocks. |
| Keywords: | Loan-to-Value (LTV) Shocks, Housing in the Production Function, Macroeconomic Fluctuations |
| JEL: | E32 E44 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2023-62&r=ure |
| By: | Silvia Peracchi (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)) |
| Abstract: | The massive inflows of migrants across the Mediterranean has generated widespread political attention and backlash. This paper explores the impact of migrants’ displacements at the EU’s internal borders, due to militarized border push-backs and arising from the European migrant crisis in the 2010s. It investigates how these displacements affect both the local news market and the local political economy. To do so, it relies on a policy implemented in June 2015, whereby French authorities introduced militarized controls at the Italian frontier to redirect migrants and asylum seekers, originally intending to cross the border irregularly, back to the Italian territory. These dynamics created a quasi-experimental setting, where natives in the Italian region were unevenly exposed to pushed back migrants: those residing close to the French border experienced more directly the evolution of events. Using novel text and count data from local news in the interested areas of Liguria, Italy, between 2012 and 2019, this study finds that, following the border push-backs, media coverage of migration decayed with commuting distance to the border. Conversely, anti-immigrant discourse in the news exhibited a relative increase in areas least directly impacted by the border events. Exploring further this framing dimension, the results turn out to be shaped by readers’ demand and to be closely associated with local news penetration. Finally, this study documents that voting preferences share a similar direction to news slant, while a related broad pattern also appears in hate-crime records. |
| Keywords: | Media slant, EU borders, immigration, diff-in-diff |
| JEL: | F22 L82 F50 |
| Date: | 2023–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2023021&r=ure |
| By: | Subash Sasidharan (Indian Institute of Technology (IIT), Madras); Shandre Thangavelu (Jeffrey Cheah Institute of Southeast Asia, Sunway University and Institute for International Trade, University of Adelaide) |
| Abstract: | Industrial agglomeration is an important component to create efficiency and externalities for industrial growth and competitiveness for the Indian economy. In this paper, we examine the spatial location of Indian firms and industry agglomeration at district and township level for the Indian economy. Particularly, we examine the impact of urban amenities in driving the industrial agglomeration in the Indian economy using firm-level data. We carefully control for township-level urban amenities, as well as firm level characteristics in affecting the industry agglomeration. As opposed to previous stateand district-level studies, we examine the impact of urban amenities at a more disaggregated township level for 2011. The study also examines the impact of urban amenities on manufacturing, as well as the services sector. The empirical analysis findings indicate a positive correlation between town-level disparities in industry agglomeration and various amenities, including education, healthcare, energy, transportation, finance, and cultural resources. These results remain consistent when considering alternative measures of agglomeration and conducting sub-sample analyses. |
| Keywords: | Industrial Agglomeration; Urban Amenities |
| JEL: | F15 O15 |
| Date: | 2023–09–13 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2023-14&r=ure |
| By: | OECD |
| Abstract: | This case study assesses the strategies of the Museum of Lisbon as well as the related policies of Lisbon City Council to support local development. Through its five branches located across the city and its diverse partnerships with local stakeholders, the Museum of Lisbon has cemented its role as a community anchor institution. This case study focuses on the five dimensions featured in the OECD-ICOM Guide for Local Governments, Communities and Museums, namely the role of museums in: i) economic development, ii) urban regeneration, iii) education and creativity, iv) inclusion, health and well-being, and on iv) ways to mainstream the role of museums in local development. |
| Keywords: | cultural heritage, culture, Lisbon, local development, museum, Portugal |
| JEL: | H41 O10 Z18 |
| Date: | 2023–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2023/22-en&r=ure |
| By: | Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Damien Moodley (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa) |
| Abstract: | Recent evidence from a linear econometric framework, tend to suggest that housing search activity, as captured from Google Trends data, can predict housing returns of the overall United States (US), as well as at the regional-level for Metropolitan Statistical Areas (MSAs). Based on search-theory, we, however, postulate that search activity can also predict housing returns volatility. Given this, we use a k-th order nonparametric causality-in-quantiles test, which in turn, allows us to test for predictability in a robust manner over the entire conditional distribution of not only housing price returns, but also its volatility (i.e., squared returns), by controlling for nonlinearity and structural breaks that exists in the data. Using this model, over the monthly period of 2004:01 to 2021:01, we show that while housing search activity continues to predict aggregate US house price returns barring the extreme ends of the conditional distribution, volatility is relatively strongly predicted over the entire quantile range considered. Our results tend to carry over to an alternative (the Generalized Autoregressive Conditional Heteroskedasticity (GARCH)-based) metric of volatility, higher (weekly)-frequency data (over January, 2018-March, 2021), as well as to over 84% of the seventy-seven MSAs considered. Our findings have important implications for investors and policymakers, as well as academics. |
| Keywords: | Housing Search Activity, Housing Returns and Volatility, Higher-Order Nonparametric Causality in Quantiles Test |
| JEL: | C22 R30 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202335&r=ure |
| By: | Cygan-Rehm, Kamila |
| JEL: | I21 I26 J24 J17 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277608&r=ure |
| By: | Aurore Fransolet; Julien Vastenaekels |
| Abstract: | Just transition occupies an increasingly important place in political agendas from global to local levels. In recent years, this concept has evolved from a reactive social project aimed at protecting industrial workers affected by environmental regulations to a proactive social-ecological project aimed at simultaneously reducing social inequalities and environmental degradation. This ambition of bridging social justice and sustainability objectives is particularly relevant for the urban context, where social and environmental issues tend to concentrate and intertwine. However, questions of what a just and sustainable city could and should look like remain largely unexplored. While there exist several urban visions that centre social justice (most notably Susan Fainstein’s “Just City”), sustainability issues are not central to these visions. At the same time, it remains unclear whether and how urban visions that do focus on sustainability (e.g. sustainable cities, eco-cities, green cities, low-carbon cities.) consider social justice concerns. This research has two main goals: first, to identify and analyse the role of sustainability in the prominent just city visions and, second, to examine visions of sustainable cities and their conceptualization of justice. The research is based on an analysis of several seminal texts on just cities and sustainable city visions. The visions are analysed through a framework that highlights considerations of distributional, procedural and recognition-based justice. By analysing the place of sustainability within just city visions and the place of social justice in sustainable city visions, we give direction to and open discussion about the contours of possible just and sustainable urban futures. |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/364471&r=ure |
| By: | Noemí Katzkowicz; Victor Lavy; Martina Querejeta; Tatiana Rosá |
| Abstract: | Poor post-secondary education infrastructure and opportunities partly explain the low higher education rates in developing countries. This paper estimates the effect of a program that improved post-secondary education infrastructure by building many university campuses across Uruguay. Leveraging temporal and geographic variation in program implementation, we use a two-way fixed effect design and comprehensive administrative records to assess the program’s causal impact. By lowering the distance to a university campus, the program successfully increased university enrollment, particularly of less privileged students who are the first in their families to attend a university. The program impacted students from localities up to 30 kilometers from the new campus, reducing spatial inequality. Importantly, this expansion did not lower university completion rates. Furthermore, the program increased high school attendance and completion rates and the proportion of educated workers in the affected localities. |
| JEL: | D63 I23 I28 J16 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31906&r=ure |
| By: | Ngai, L. Rachel (London School of Economics); Sheedy, Kevin D. (London School of Economics) |
| Abstract: | The housing market is subject to search frictions in buying and selling houses. This paper documents the role of inflows (new listings) and outflows (sales) in explaining the volatility and co-movement of housing-market variables. An 'ins versus outs' decomposition shows that both inflows and outflows are quantitatively important in understanding fluctuations in houses for sale. The correlations between sales, prices, new listings, and time-to-sell are shown to be stable over time, while the signs of their correlations with houses for sale are found to be time varying. A calibrated search-and-matching model with endogenous inflows and outflows and shocks to housing demand matches many of the stable correlations and predicts that correlations with houses for sale depend on the source and persistence of shocks. |
| Keywords: | housing-market cyclicality, inflows and outflows, search frictions, match quality |
| JEL: | E32 E22 R21 R31 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16603&r=ure |
| By: | Stefan Jestl (The Vienna Institute for International Economic Studies, wiiw); Roman Römisch (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | The paper analyses drivers of migration in carbon-intensive and non-carbon-intensive regions in the EU. Using a mix of econometric methods, such as spatial panel and spatial cross-sectional methods, as well as geographically weighted regressions on data for EU NUTS-2 and NUTS-3 regions, the results indicate that particularly carbon-intensive regions in Central and Eastern Europe are not only challenged by a potential decline in carbon-intensive employment but also by outward migration flows that could diminish their prospects for longer-term economic prosperity. From a policy point of view, the results indicate that policies focusing on the replacement of the lost jobs in carbon-intensive industries might not be enough for the carbon-intensive regions in Central and Eastern Europe. Instead, these regions need a simultaneous package of additional policies to improve their attractiveness. |
| Keywords: | carbon-intensive regions, green transition, regional migration |
| JEL: | Q50 R11 R23 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:236&r=ure |
| By: | Chen, Natalie (University of Warwick); Novy, Dennis (University of Warwick); , Perroni, Carlo (University of Warwick); Chern Wong, Horng Chern (Stockholm University) |
| Abstract: | Using firm-level data from France, we document that the shift of economic activity from manufacturing to services over the last few decades has been urban-biased : structural change has been more pronounced in areas with higher population density. This bias can be accounted for by the location choices of large services firms that sort into big cities and large manufacturing firms that increasingly locate in suburban and rural areas. Motivated by these findings, we estimate a structural model of city formation with heterogeneous firms and international trade. We find that agglomeration economies have strengthened for services but weakened for manufacturing. This divergence is a key driver of the urban bias but it dampens aggregate structural change. Rising manufacturing productivity and falling international trade costs further contribute to the growth of large services firms in the densest urban areas, boosting services productivity and services exports, but also land prices. |
| Keywords: | Agglomeration ; Cities, Export ; Firm Sorting ; Manufacturing ; Productivity ; Services ; Trade Costs |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1484&r=ure |
| By: | Khan, Sarah; Seltzer, Andrew J. |
| Abstract: | This paper investigates the Pakistani Taliban's terror campaign against girls' education in the Khyber Pakhtunkhwa province. We measure individual exposure to terror using the time and location of attacks against schools. The evidence suggests that the impact of the campaign was limited. We find limited evidence of reduced enrolment in response to terror, except during a 21-month period when the Taliban controlled the district of Swat. Where we do find evidence of reduced enrolment, it's generally small and diminishes over time. We also find no evidence of increased enrolment in religious schools, which were not targeted by the Taliban. |
| Keywords: | education; terrorism; Pakistan |
| JEL: | O15 I20 D74 O53 N15 |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:wpaper:120987&r=ure |
| By: | Seebacher, Moritz |
| JEL: | O18 I21 I28 H42 J16 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277569&r=ure |
| By: | DIJKSTRA Lewis (European Commission - JRC); JACOBS-CRISIONI Chris |
| Abstract: | This paper develops a methodology to define functional rural areas in the EU and seeks feedback on the method and the results. Functional rural areas are designed to cover all the territories outside functional urban areas. They are constructed in three steps. First, we define rural centres: they are the largest town or village within a 10-minute drive. Second, we create catchment areas by assigning every grid cell to the nearby rural centre that has the greatest gravitational pull. Third, we combine small and nearby catchment areas. We combine catchment area until each has at least 25, 000 inhabitants or is more than an hour’s drive away from the surrounding catchment areas. We also combine catchment areas that have centres that are less than a 30-minute drive apart, even if they have a population of at least 25, 000 inhabitants. Next, we show that functional rural areas are more harmonised in terms of population and area size than LAUs and NUTS-3 regions. The analysis of population change and of the distance to the nearest school shows that the results by functional area are less volatile than the results per LAU and show more detail than the results per NUTS-3 regions. Functional rural areas can inform policies that promote access to services and that respond to demographic change. They can also be used to inform transport infrastructure investments and public transport provision. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:termod:202311&r=ure |
| By: | Donghoon Lee; Joseph Tracy |
| Abstract: | An important part of the mission of the Federal Housing Administration (FHA) is to provide affordable mortgages that both promote the transition from renting to owning and create “sustainable” homeownership. The FHA has never defined what it means by sustainability. However, we developed a scorecard in 2018 that tracks the long-term outcomes of FHA first-time buyers (FTBs) and update it again in this post. The data show that from 2011 to 2016 roughly 21.8 percent of FHA FTBs failed to sustain their homeownership. |
| Keywords: | first-time home buyers |
| JEL: | D14 |
| Date: | 2023–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:97396&r=ure |
| By: | Archibong, Belinda; Moerenhout, Tom; Osabuohien, Evans |
| Abstract: | Can citizen-led protests lead to meaningful economic redistribution and nudge governments to increase their efforts to redistribute fiscal resources? We study the effects of protests on fiscal redistribution using evidence from Nigeria. We digitised 26 years of public finance data from 1988 to 2016 to examine the effects of protests on intergovernmental transfers. We find that protests increase transfers to protesting regions, but only in areas that are politically aligned with disbursing governments. Protesters also face increased police violence. Non-protest conflicts do not affect transfers and protests do not affect non-transfer revenue. The results show that protests can influence fiscal redistribution. |
| Keywords: | Economic Development, |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:idq:ictduk:18195&r=ure |
| By: | Merino, Fernando; Prats, María a.; Prieto-Sánchez, Carlos-Javier |
| Abstract: | The aim of this paper is to analyze at what extent the connectivity of small localities is a determinant of their demography. Specifically, we pay attention to three factors: the evolution of the population; the distance, measured both in kilometres and travel time, to the province capital, the usual city where the largest set of services is available; and finally, the coverage of different kinds of broadband services (from ADSL or 3.5 G to the fastest ones FTTH) in rural areas. An econometric model was estimated where the dependent variable captures the increase of inhabitants along 2017–2020 of the 5955 Spanish municipalities with a population between 101 and 10, 000 inhabitants (73.3 % of all municipalities). The results point out to the following facts: digital connectivity of small localities is a determinant of their demography, whatever the technology used, but physical distance remains being a significant factor on the population growth (both if it is measured of physical distance or travelling time) to explain the population growth of each locality. |
| Keywords: | internet connexions; broadband; sustainability; territorial cohesion |
| JEL: | J1 |
| Date: | 2024–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120866&r=ure |
| By: | Antonio Cutanda (Universidad de Valencia, Valencia, Spain. ORCID number: 0000-0003-2066-4632); Juan A. Juan A. Sanchis-Llopis (Universidad de Valencia and ERICES, Valencia, Spain. ORCID number: 0000-0001-9664-4668) |
| Abstract: | In this paper we estimate the housing wealth effect on non-durable consumption using data from the Spanish Survey on Household Finances (Encuesta Financiera de las Familias, SHF), for the period 2002-2017. We aim at identifying the effect of anticipated and unanticipated housing wealth changes on consumption with the sample of homeowners, following Jappelli and Pistaferri (2017). Our results lead us to conclude that there exists a strong housing wealth effect on consumption for the Spanish households. This provides evidence against the permanent income model. Further, we detect a high excess sensitivity of consumption to income reinforcing the above conclusion. Finally, by adding the mortgage growth rate to the estimated equation, we do not detect evidence that the Spanish data support the collateral channel hypothesis. |
| Keywords: | Wealth effect on consumption, Subjective expectations, Collateral channel hypothesis, Instrumental variables, Panel data. |
| JEL: | C23 C26 D12 D15 E21 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:2309&r=ure |
| By: | Di Stefano, Roberta; Resce, Giuliano |
| Abstract: | This research investigates how local governments overlook competitive funding opportunities within cohesion policies, utilizing machine learning and analyzing data from open calls within the European Next Generation EU funds. The focus is on predicting which local governments may face challenges in utilizing available funding, specifically examining the allocation of funds for Italian childcare services. The results demonstrate that it is possible to make out-of-sample predictions of municipalities that are likely to abstain from invitations, also identifying key determinants. Population-related factors play a pivotal role in predicting inertia, alongside other service-demand-related elements, particularly in regions with limited services. The study emphasizes the importance of local institutional quality and individual attributes of policymakers. The adverse effects on participation resulting from factors that justify fund allocation may place regions with higher investment needs at a competitive disadvantage. Anticipating potential non-participants in calls can aid in achieving policy targets and optimizing the allocation of funds across various local governments. |
| Keywords: | Competitive funding; Cohesion policies; Predictive modeling; Machine learning. |
| JEL: | H5 H7 I3 J1 R5 |
| URL: | http://d.repec.org/n?u=RePEc:mol:ecsdps:esdp23092&r=ure |
| By: | Angus Holford; Sonkurt Sen |
| Abstract: | We study the impact of racial representation among academic staff on university students’ academic and labor market outcomes. We use administrative data on the universe of staff and students at all UK universities, linked to representative survey data on students’ post-graduation outcomes, exploiting idiosyncratic variation (conditional on a rich set of fixed effects and observable student, staff, and university-department level characteristics) in the proportion of racial minority academic staff to whom students are exposed. We find that own-race representation benefits the academic outcomes of South Asian students but not Black students, and no beneficial impacts of own-race representation on the labor market outcomes of either group. However, we do find that same race representation among academic staff significantly increases progression of Black and South Asian students to graduate study, suggesting that there may be benefits of same-race representation operating through provision of role models or domain-specific advice and guidance. |
| Keywords: | minorities, representation, returns to education, labor market outcomes |
| JEL: | I23 I26 J15 J24 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2023_471&r=ure |
| By: | Miguel Risco |
| Abstract: | In today’s world, social networks have a significant impact on information processes, shaping individuals’ beliefs and influencing their decisions. This paper proposes a model to understand how boundedly rational (DeGroot) individuals behave when seeking information to make decisions in situations where both social communication and private learning take place. The model assumes that information is a local public good, and individuals must decide how much effort to invest in costly information sources to improve their knowledge of the state of the world. Depending on the network structure and agents’ positions, some individuals will invest in private learning, while others will free-ride on the social supply of information. The model shows that multiple equilibria can arise, and uniqueness is controlled by the lowest eigenvalue of a matrix determined by the network. The lowest eigenvalue roughly captures how two-sided a network is. Two-sided networks feature multiple equilibria. Under a utilitarian perspective, agents would be more informed than they are in equilibrium. Social welfare would be improved if influential agents increased their information acquisition levels. |
| Keywords: | Information Acquisition, Learning, Public Goods, Network Effects, Information Diffusion, Bounded Rationality |
| JEL: | C72 D61 D83 D85 H41 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2023_420v2&r=ure |
| By: | Schirner, Sebastian; Hessami, Zohal |
| JEL: | D72 J15 H70 F22 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277670&r=ure |
| By: | Bhalotra, Sonia (University of Warwick); Clots-Figueras, Irma (University of Kent); Iyer, Lakshmi (University of Notre Dame) |
| Abstract: | We investigate the impact of the political representation of minority groups on the incidence of ethnic conflict in India. We code data on Hindu-Muslim violence and Muslim political representation in India and leverage quasi-random variation in legislator religion generated by the results of close elections. We find that the presence of Muslim legislators results in a large and significant decline in Hindu-Muslim conflict. The average result is driven by richer states and those with greater police strength. Our results suggest that the political empowerment of minority communities can contribute to curbing civil conflict. |
| Keywords: | conflict ; violence ; religion ; political representation ; police ; close elections JEL codes: D72 ; D74 ; J15 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:wqapec:19&r=ure |
| By: | Khondaker Golam Moazzem; ASM Shamim Alam Shibly; Moumita A Mallick |
| Abstract: | Migrant workers make significant contributions to national development, yet their essential needs are frequently overlooked in national budget allocations. The FY2023–24 budget lacks migrant-focused programmes. Challenges persist in the different stages of migration: pre-migration, in the destination countries, and during reintegration. The Ministry of Expatriates’ Welfare and Overseas Employment is not solely responsible for the welfare and rights of migrant workers. This study identified eleven different ministries and divisions that are responsible for the implementation of welfare projects targeted towards migrant workers. This study examines these issues, reviews previous budgetary allocations, and suggests a BDT 4, 550 crore budget for the three stages of migration to strengthen ministries’ assistance for migrants. This research emphasises targeted measures to improve migrant welfare and recognises their critical economic contribution. |
| Keywords: | Migrant workers, Migrant Communities, Welfare and Rights, National Budget, FY2023–24 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:pdb:report:40&r=ure |
| By: | Rodríguez-Pose, Andrés; Bartalucci, Federico |
| Abstract: | The impacts of climate change are unevenly distributed across territories. Less is known about the potential effects of climate policies aimed at mitigating the negative consequences of climate change while transitioning economies towards low-carbon standards. This paper presents an analytical framework for identifying and assessing the regional impacts of the green transition. We develop a Regional Green Transition Vulnerability Index, a composite measure of the regional vulnerability of European regions to the socio-economic reconfigurations prompted by the green transition. The index brings to light strong regional variations in vulnerability, with less developed, peri-urban and rural regions in Southern and Eastern Europe more exposed to the foreseeable changes brought about by the green transition. We also draw attention to the potential rise of pockets of growing ‘green’ discontent, especially if the green transition contributes, as is likely to be the case, to leaving already left-behind regions further behind. |
| Keywords: | green transition; environment; left-behind regions; development trap; European Union |
| JEL: | O56 R11 |
| Date: | 2023–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120536&r=ure |
| By: | Patrick Fève; Alban Moura |
| Abstract: | This paper establishes that frictionless, rational-expectations models driven by specific ARMA(2, 1) forcing processes are consistent with equilibrium asset-price dynamics featuring momentum. To reach this result, we first document that AR(2) models adequately capture the cyclical dynamics found in U.S. house prices, in particular the strong positive first-order autocorrelation in their first difference. Then, we show analytically that ARMA(2, 1) exogenous drivers give rise to equilibrium AR(2) asset-price dynamics in a simple present-value model. Our pen-and-paper approach yields a straightforward economic interpretation of the results, emphasizing the contribution of anticipated shocks to generating asset-price momentum. We document the empirical relevance of our theoretical results by estimating the model from house-price data. Our findings suggest that house-price momentum does not necessarily signal irrational exuberance or strong frictions in housing markets. |
| Keywords: | house prices; momentum; AR(2) process; rational expectations; news shocks. |
| JEL: | C32 E32 G12 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:bcl:bclwop:bclwp177&r=ure |
| By: | Maaß, Christina H. |
| JEL: | E26 K42 C40 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277607&r=ure |
| By: | CAPPELLANO Francesco; MARQUES SANTOS Anabela (European Commission - JRC); DOTTI Nicola Francesco |
| Abstract: | This paper provides quantitative evidence on the geography of regional readiness to tackle climate change using data from France, Germany, Italy, Poland, and Spain. Following Cappellano et al. (2022), we estimate a composite indicator that reports the situation of regions in these countries between 2009 and 2020 regarding the directionality of their Science and Technological Innovation and policy priorities to fight climate change. Using regression analysis, we assess the relationship between such directionality and the degree of risk of disasters (coastal floods, river floods, and landslides) they face in the short, medium, and long-term as a result of climate change effects. Results shows a positive relationship between estimated risk projection and climate change preparedness. However, a more in-depth analysis demonstrates the complexity of such geographical “problem-solution convergence”. Indeed, more developed regions are the ones that appear more ready to tackle climate change effects compared with transition and less developed regions. |
| Keywords: | Climate Change; Innovation; Public Policy; Regional Economics; Europe |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:termod:202310&r=ure |
| By: | Charalambous, Efrosini |
| Abstract: | Research on the relationship between the built environment and human perception, behaviour and experience is by no means new to the fields of architectural and urban studies. Relevant traditional methods used to address these issues include post-occupancy surveys, ethnographic and phenomenological approaches as well as observations of behaviours and movements in spatial settings (e.g. space syntax). However, a fresh perspective into the embodied experience of the built environment comes to complement these attempts. Neuroacrhitecture and neurourbanism are two emerging research fields that take advantage of the advancements in neuroscientific knowledge, and cutting-edge technology e.g. VR and biosensing (eye-tracking, EEG) to gain a deeper understanding of the brain-body-environment relationship. These fields are rapidly gaining traction and the translation of research findings into evidence-based design parameters is vital for creating spaces that fit our situated emotional and cognitive needs. The paper adopts a theoretical stance inviting the reader to re-imagine how neuroscientific knowledge on the mind-body-environment interaction can be generated and translated in formats that can inform architectural and urban design. The paper offers a brief review of the neural turn in architectural and urban studies, followed by a detailed discussion of the main challenges (and potential remedies) related to the translation of such biological evidence into design research and practice. The paper aims to draw attention to the potential valuable contribution of neuroarchitecture and neurourbanism in evidence-based design practices and the development of urban policies that can positively shape our everyday experience. |
| Date: | 2023–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:6f4uc&r=ure |
| By: | Fahmida Khatun; Syed Yusuf Saadat; Afrin Mahbub; Marium Binte Islam |
| Abstract: | In this report, the Green Cities Initiative adds significantly to its study by presenting an analysis of the public attitudes and behaviours associated with air and plastic pollution, complementing the existing work focused on structural and systemic factors. The Green Cities Initiative undertook a survey of 500 households in Dhaka city to understand the perceptions of the problem of pollution, and attitudes towards different policy solutions. This survey explored residents’ perceptions of the scale of air and plastic pollution, their understanding of the causes and impacts of pollution and their willingness to change their own behaviour or support policies with the aim of reducing pollution in the city. |
| Keywords: | Plastic Pollution, Air Pollution, Green Cities Initiative, systemic factors, structural factors, Bangladesh |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:pdb:report:41&r=ure |
| By: | Barthélémy Bonadio |
| Abstract: | Migrants shape market access: first, they reduce international trade frictions and second, they change the geographical location of domestic demand. This paper shows that both effects are quantitatively relevant. It estimates the sensitivity of exports and imports to immigrant population and quantifies these effects in a model of inter- and intra-national trade and migration calibrated to US states and foreign countries. Reducing US migrant population shares back to 1980s levels increases import (export) trade costs by 7% (2.5%) on average and decreases US natives’ real wages by more than 2%. States with higher exposure to immigrant consumer demand (both from within the state and from other states) than to migrant labor supply competition suffer more from the removal of migrants. States with higher export and import exposure suffer more from the increased trade costs. |
| Keywords: | migration, market access, trade |
| JEL: | F16 F22 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10737&r=ure |
| By: | Li, Ying; Li, Lingxiao; Zhu, Bing |
| JEL: | G3 R3 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277606&r=ure |
| By: | Pat Armstrong; Daniella Balasal; Nadia De Santi; Shirley Hoy; Gabriel Eidelman; Kass Forman; Spencer Neufeld (University of Toronto) |
| Abstract: | By the mid-2030s, approximately 1 in 4 Canadians could be over the age of 65. This demographic shift, combined with the acute crisis brought on by the COVID-19 pandemic, has made reforming long-term and seniors’ care an urgent issue. In general, responsibility for providing care to seniors falls to provinces, which in turn benefit from significant federal transfers to help fund services in this area. In Ontario, however, municipalities share in the delivery of seniors’ care, and are required to run a minimum number of long-term care homes. Moreover, their responsibilities in urban planning extend to designing age-friendly communities that meet the needs of older populations. The seventh report in the Who Does What series from the Institute on Municipal Finance and Governance (IMFG) and the Urban Policy Lab examines the role that municipalities play in long-term and elder care, with a special focus on Ontario municipalities. Pat Armstrong argues that municipal long-term care facilities provide the best care and working conditions relative to private and for-profit homes. She calls for Ontario to build upon its role with respect to funding and regulating municipal long-term care homes by improving wages for workers in these facilities. She also suggests that the federal government apply conditions to transfer payments to encourage other orders of government to adopt higher standards of care. Daniella Balasal and Nadia De Santi discuss the concept of age-friendly communities, describing how municipalities are developing strategies and plans to meet the needs of their aging populations outside institutional settings. They cite Ontario’s age-friendly community planning guide as an overarching framework for municipalities to develop local strategies and plans. Shirley Hoy advocates for a foundational restructuring of the long-term care sector. Hoy calls for deep integration of provincial health services, such as doctors and hospitals, with the broader elder care system. Given their role in providing both long-term care and social services, municipalities have a critical part to play in coordinating primary care, long-term care, and community-based supports. Hoy adds that the 2023 health care funding deal between the federal government and the provinces could act as the impetus to strengthen long-term care at the local level. |
| Keywords: | Canada, municipalities, long-term care, intergovernmental relations, seniors, age-friendly communities |
| JEL: | J14 J18 H70 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:mfg:mfgwdw:7&r=ure |
| By: | Natee Amornsiripanitch; David Wylie |
| Abstract: | This paper combines data on current and future property-level physical risk from major climate-related perils (storms, floods, hurricanes, and wildfires) that owner-occupied single-family residences face with data on local economic characteristics to study the geographic and demographic distribution of such risks in the contiguous United States. Current expected damage from climate-related perils is approximately $19 billion per year. Severe convective storms and inland floods account for almost half of the expected damage. The central and southern parts of the U.S. are most exposed to climate-related physical risk, with hurricane-exposed areas on the Gulf and South Atlantic coasts being the riskiest areas. Relative to currently low-risk areas, currently high-risk areas have lower household incomes, lower labor market participation rates, and lower education attainment, suggesting that the distribution of climate-related physical risk is correlated with economic inequality. By 2050, under business-as-usual emissions, average expected damage is projected to increase monotonically with current average expected damage, which implies that long-term policies that aim to mitigate climate-related physical risk are likely to be progressive. |
| Keywords: | Climate Risk; Physical Risk; Inequality; Housing |
| JEL: | D63 G5 Q54 |
| Date: | 2023–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:97399&r=ure |
| By: | Liliana Cuccu (AQR-IREA, University of Barcelona); Vicente Royuela (AQR-IREA, University of Barcelona); Sergio Scicchitano (John Cabot University) |
| Abstract: | This paper investigates the surge in Involuntary Part-Time (IPT) employment in Italy from 2004 to 2019, exploring its impact on various socio-economic groups and adopting a spatial perspective. Our study tests the hypothesis that technological shifts, specifically routine biased technological change (RBTC), and the expansion of household substitution services contribute to IPT growth. We uncover a widening negative gap in IPT prevalence among marginalized groups- women, young, and less skilled workers. After controlling for sector and occupation, the higher IPT propensity diminishes but remains significant, hinting at persistent discrimination. Additionally, segregation into more exposed occupations and sectors intensifies over time. Leveraging province-level indicators, and using a Partial Adjustment model, we find support for RBTC’s correlation with IPT, especially among women. The impact of household substitution services is notably pronounced for women, highlighting sector segregation and gender norms’ influence |
| Keywords: | Involuntary part-time, Precarisation of labour, Automation JEL classification: J21, J24, O33. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:aqr:wpaper:202307&r=ure |
| By: | Li, Jinkai (Ghent University); Luo, Erga (Zhejiang University); Cockx, Bart (Ghent University) |
| Abstract: | In 2015, 15% of all children in China were left behind in the countryside because at least one of their parents migrated to a city. We implement an event study analysis between 2010 and 2018 on five waves of the China Family Panel Studies (CFPS) to investigate the dynamic effects of parental migration on the health of left behind young children (LBC). While we find a gradual increase in medical expenditures, we do not detect any significant impact on the incidence of sickness. Furthermore, the analysis shows that the incidence of overweight declines gradually since their parents' first migration and reports suggestive evidence for mental health improvement. We argue that these long-term positive effects on health and health consumption can be explained by the transitory nature of migration, the high-quality substitution of the caregiver role by grandparents, and by a reorientation in family expenditures, partly induced by government policy. |
| Keywords: | young left-behind children, parental migration, Hukou system, long-term impact on health, event study analysis, mechanisms analysis |
| JEL: | I15 J10 J61 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16596&r=ure |
| By: | Ian Coxhead (University of Wisconsin-Madison and Institute of Developing Economies (IDE-JETRO), Tokyo); Nguyen Dinh Tuan Vuong (University of Wisconsin-Madison) |
| Abstract: | Viet Nam's economy has grown and changed in dramatic ways since WTO accession in 2007. Much of the growth and change is due to expanded international trade and FDI. These in turn have greatly increased domestic labour demand. However, growth that exploits the country's abundant supply of low-skill labour may depress the relative demand for skills. In this paper we ask whether the skill premium-the relative price of skills, which also measures the gross economic benefit to schooling at high school and beyond-plays an influential role in schooling decisions amongst teenagers for whom wage-work is an alternative to continued education. We first use event study methods to clarify trends in wages and skill premia. We then decompose influences on upper secondary school enrolments from income growth, demographic change, and skill premia. We find that the college skill premium has a positive influence on enrolments, whereas the premium from upper secondary completion has no significant effect. Our conclusions explore implications for future productivity growth as well as economic and educational policies. |
| Keywords: | Skill premium, wages, enrolments, Viet Nam |
| JEL: | O15 J24 J31 |
| Date: | 2023–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2023-03&r=ure |
| By: | Sumit Agarwal; Wenli Li; Raluca Roman; Nonna Sorokina |
| Abstract: | Using a unique data set of unsolicited credit card offer mailings by banks to consumers, we investigate how opioid abuse affects consumer credit supply in the U.S. To identify causal effects, we employ instrumental variables, propensity score matching, and contiguous counties techniques and control for varying local economic conditions and demographics. We find that banks contract credit supply to consumers in counties highly exposed to opioid abuse by offering higher interest rates, lower credit card limits, and fewer rewards and reducing credit offers overall. Further analyses using the supervisory Federal Reserve Y-14M credit card data set confirm these effects. What is more, the credit contraction disproportionately impacts riskier consumers, minorities (particularly Black people), low-income consumers, and younger individuals. Our examination of various state-level anti-opioid abuse legislation shows that opioid supply-oriented laws are somewhat helpful in curbing opioid overdoses or mitigating the credit supply contraction, but demand-oriented laws are not. Finally, we uncover the real effects associated with the opioid abuse-induced credit contraction: Local consumer spending significantly declines in the highly affected areas, with important macro-policy implications. |
| Keywords: | Opioid Epidemic; Household Finance; Credit Supply; Spending; Risk |
| JEL: | G01 G28 D10 D12 E58 |
| Date: | 2023–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:97380&r=ure |
| By: | Yoko Konishi (Research Institute of Economy, Trade and Industry, Japan); Takashi Saito (Ministry of Economy, Trade and Industry, Japan and Research Institute of Economy, Trade and Industry, Japan) |
| Abstract: | Since 2012, the number of inbound tourists to Japan has increased every year, and new records of tourism-related economic indicators are being updated. On the other hand, the sudden inbound boom has led to a concentration of travel destinations, and overtourism has become a problem. In this paper, we first statistically observe the concentration of tourists by accommodation type for each country of origin. Second, by identifying tourism amenities that contribute to inbound demand, we gain the knowledge necessary to shift demand from facilities with a high concentration of inbound tourists to facilities with lower occupancy. For the analysis, we utilised establishment data from the Online Travel Agency 'Accommodation Travel Statistics Survey' and data on tourism resources by region. The results show that the number of rooms, average price, membership of the hotel in a chain, internet availability, room type, number of World Heritage sites, and number of direct flights positively affect inbound demand. In particular, for ryokan (Japanese-style inns) with low occupancy rates and inbound guest ratios, their independence, internet availability, Western-style room availability, number of World Heritage sites, and hot spring facilities are effective in capturing demand. |
| Keywords: | Tourism Amenities; Accommodation Facilities Level-data; RevPAR |
| JEL: | L84 D24 R32 |
| Date: | 2023–08–14 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2023-09&r=ure |
| By: | Jinkai Li; Erga Luo; Bart Cockx |
| Abstract: | In 2015, 15% of all children in China were left behind in the countryside because at least one of their parents migrated to a city. We implement an event study analysis between 2010 and 2018 on five waves of the China Family Panel Studies (CFPS) to investigate the dynamic effects of parental migration on the health of left behind young children (LBC). While we find a gradual increase in medical expenditures, we do not detect any significant impact on the incidence of sickness. Furthermore, the analysis shows that the incidence of overweight declines gradually since their parents’ first migration and reports suggestive evidence for mental health improvement. We argue that these long-term positive effects on health and health consumption can be explained by the transitory nature of migration, the high-quality substitution of the caregiver role by grandparents, and by a reorientation in family expenditures, partly induced by government policy. |
| Keywords: | young left-behind children, parental migration, Hukou system, long-term impact on health, event study analysis, mechanisms analysis |
| JEL: | I15 J10 J61 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10780&r=ure |
| By: | Frohnweiler, Sarah; Beber, Bernd; Ebert, Cara |
| JEL: | J31 J68 O15 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277583&r=ure |
| By: | Cristiano Ricci |
| Abstract: | This paper deals with the positivity condition of an infinite-dimensional evolutionary equation, associated with a control problem for the optimal consumption over space. We consider a spatial growth model for capital, with production generating endogenous growth and technology of the form AK. We show that for certain initial data, even in the case of heterogeneous spatial distribution of technology and population, the solution to an auxiliary control problem that is commonly used as a candidate for the original problem is not admissible. In particular, we show that initial conditions that are non-negative, under the auxiliary optimal consumption strategy, may lead to negative capital allocations over time. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.06811&r=ure |
| By: | Celislami, Elda (University of Reading); Kastoryano, Stephen (University of Reading); Mastrobuoni, Giovanni (Collegio Carlo Alberto) |
| Abstract: | Police accountability is essential to uphold the social contract. Monitoring the monitors is, however, not without difficulty. This paper reveals how police departments exploit specific laws surrounding death investigations to facilitate the underreporting of police killings. Our results show that US counties in which law enforcement can certify the cause of death, including counties which appoint the sheriff as the lead death investigator, display 46% more underreported police killings than their comparable adjacent counties. Drawing on a novel adapted-LATE potential outcomes framework, we demonstrate that underreported police killings are most often reclassified as 'circumstances undetermined' homicides. We also show that law enforcement agencies in counties with permissive death certification laws withhold more homicide reports from the public. The main underreporting results are primarily driven by underreporting of White and Hispanic deaths in our analysis sample, with the effect on Hispanic people particularly pronounced along the US-Mexico border. We do not find that excess underreported killings are associated with more violence directed towards police. We do, however, note a nationwide positive correlation between the permissiveness of gun-laws and underreported police killings. In addition, we find more underreporting in counties which have both high per-capita Google searches for Black Lives Matter and which allow law enforcement to certify the cause of death. Our results do not indicate that other differences in death investigation systems - coroner vs. medical examiner, appointed vs. elected, or physician vs. non-physician - affect the underreporting of police killings. |
| Keywords: | police killings, police violence, death investigations, coroner, medical examiner, policing |
| JEL: | K42 H11 K13 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16609&r=ure |
| By: | Chen, Yunsong; Ju, Guodong |
| Abstract: | Population density affects human behavior. A dense population has been shown to exacerbate impulses such as, “fight” (aggression stimulated by crowding) or “flight” (withdrawal from social life for escape). This paper explores the impact of population density on the level of generalized trust that lies in China, a topic understated by extant empirical studies so far. Drawing data from Chinese General Social Survey (2010–2013), we attempt to examine the density-trust link. China provides a context-specific case because: (1) the narrow “radius” of generalized trust (people’s notion of “most people” is more in-group connoted than out-group connoted) derived from Confucian tradition decreases the probability of interacting with out-group members, suggesting that both “fight” and “flight” that rely on out-group interactions have little effect in this context, and (2) hukou (household registration) restrictions force rural-to-urban migrants into the secondary labor market, leading to social segregation producing distrust in cities. The results of hierarchical models on data from 17, 331 individuals and panel models on data from four waves of 114 counties both revealed that (1) population density negatively predicts the level of generalized trust among urban residents and (2) it is “friction, ” or occupational segregation by hukou restrictions, that mediates the density-trust relation, neither “fight” nor “flight” does. |
| Keywords: | Taylor & Francis deal |
| JEL: | J1 |
| Date: | 2023–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118836&r=ure |
| By: | Klaus Eisenack |
| Abstract: | Cities increasingly address climate change, e.g. by pledging city-level emission reduction targets. This is puzzling for the provision of a global public good: what are city governments’ reasons for doing so, and do pledges actually translate into emission reductions? Empirical studies have found a set of common factors which relate to these questions, but also mixed evidence. What is still pending is a theoretical framework to explain those findings and gaps. This paper thus develops an abstract public choice model. The model features economies of scale and distinguishes urban reduction targets from actual emission reductions. It is able to support some stylized facts from the empirical literature and to resolve some mixed evidence as special cases. Two city types result. One type does not achieve its target, but reduces more emissions than a free-riding city. These relations reverse for the other type. The type determines whether cities with lower abatement costs more likely set targets. A third type does not exist. For both types, cities which set targets and have higher private costs of carbon are more ambitious. If marginal net benefits of mitigation rise with city size, then larger cities gain more from setting climate targets. Findings are contrasted with an alternative model where targets reduce abatement costs. Some effects remain qualitatively the same, while others clearly differ. The model can thus guide further empirical and theoretical work. |
| Keywords: | Local provision of public goods; public choice; voters; lobbyists; cobenefits; private costs of carbon |
| JEL: | Q54 Q58 D72 |
| Date: | 2023–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:bdp:dpaper:0029&r=ure |
| By: | Joël Kapasi Lutete |
| Date: | 2023–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/360465&r=ure |