Do local governments use business tax incentives to compensate for high business property taxes?
Publication date: Available online 29 November 2019Source: Regional Science and Urban EconomicsAuthor(s): Joshua Drucker, Richard Funderburg, David Merriman, Rachel WeberAbstractWhy do municipalities set business property taxes higher than the costs of business services when, in competitive markets, this would result in the inefficient provision of public goods? Statutory tax rates may be set artificially high to allow selective reductions for targeted firms through incentives. We examine the nearly 2500 tax codes—sub-municipal geographic areas—that host business locations in 134 municipalities in Cook County, ...
Source: Regional Science and Urban Economics - November 29, 2019 Category: Science Source Type: research

Prescription drug monitoring programs and neonatal outcomes
Publication date: Available online 25 November 2019Source: Regional Science and Urban EconomicsAuthor(s): Rania Gihleb, Osea Giuntella, Ning ZhangAbstractOver the last two decades, the number of delivering mothers using or dependent on opiates has increased dramatically, giving rise to a five-fold increase in the proportion of babies born with neonatal abstinence syndrome (NAS). First, the current study documents NAS trends in the United States and their substantial variation across states. Second, it explores the relationship, if any, between the adoption of prescription drug monitoring programs (PDMPs) and reductions in ...
Source: Regional Science and Urban Economics - November 26, 2019 Category: Science Source Type: research

Localized knowledge spillovers: Evidence from the spatial clustering of R&D labs and patent citations
Publication date: Available online 25 November 2019Source: Regional Science and Urban EconomicsAuthor(s): Kristy Buzard, Gerald A. Carlino, Robert M. Hunt, Jake K. Carr, Tony E. SmithAbstractBuzard et al. (2017) show that American R&D labs are highly spatially concentrated even within a given metropolitan area. We argue that the geography of their clusters is better suited for studying knowledge spillovers than are states, metropolitan areas, or other political or administrative boundaries that have predominantly been used in previous studies. In this paper, we assign patents and citations to these newly defined cluste...
Source: Regional Science and Urban Economics - November 25, 2019 Category: Science Source Type: research

Editorial Board
Publication date: November 2019Source: Regional Science and Urban Economics, Volume 79Author(s): (Source: Regional Science and Urban Economics)
Source: Regional Science and Urban Economics - November 22, 2019 Category: Science Source Type: research

Prolonging coal’s sunset: Local demand for local supply
Publication date: March 2020Source: Regional Science and Urban Economics, Volume 81Author(s): Jonathan Eyer, Matthew E. KahnAbstractThe share of U.S electricity generated by coal has fallen from nearly 50% to 33%. This transition offers social environmental benefits but spatially concentrated costs as coal miners and their local communities have suffered. Coal states have responded to shifting demand conditions by introducing incentives for local power plants to purchase coal from local mines. We document that power plants in areas with mining activity are more likely to be coal-fired and to purchase more coal from mines w...
Source: Regional Science and Urban Economics - November 20, 2019 Category: Science Source Type: research

Household residential location choice in retirement: The role of climate amenities
Publication date: Available online 18 November 2019Source: Regional Science and Urban EconomicsAuthor(s): Jiajun LuAbstractThe paper examines the relationship between climate amenities and locational choices in retirement. Using data from 2017 release of the American Community Survey, I construct a household residential location choice model and value climate amenities from the trade-offs among housing cost, climate amenities, and other locational attributes in a metropolitan statistical area (MSA). On average, a retired household is willing to pay $1209 for a 1○C drop in average summer temperature, $1114 for a 1○C inc...
Source: Regional Science and Urban Economics - November 19, 2019 Category: Science Source Type: research

Specification tests for temporal heterogeneity in spatial panel data models with fixed effects
Publication date: Available online 9 November 2019Source: Regional Science and Urban EconomicsAuthor(s): Yuhong Xu, Zhenlin YangAbstractWe propose adjusted quasi score (AQS) tests for testing the existence of temporal heterogeneity in slope and spatial parameters in spatial panel data (SPD) models, allowing for the presence of individual-specific and/or time-specific fixed effects (or in general intercept heterogeneity). The SPD model with spatial lag is treated in detail by first considering the model with individual fixed effects only, and then extending it to the model with both individual and time fixed effects. Two ty...
Source: Regional Science and Urban Economics - November 10, 2019 Category: Science Source Type: research

Prolonging coal's sunset: Local demand for local supply
Publication date: Available online 6 November 2019Source: Regional Science and Urban EconomicsAuthor(s): Jonathan Eyer, Matthew E. KahnAbstractThe share of U.S electricity generated by coal has fallen from nearly 50% to 33%. This transition offers social environmental benefits but spatially concentrated costs as coal miners and their local communities have suffered. Coal states have responded to shifting demand conditions by introducing incentives for local power plants to purchase coal from local mines. We document that power plants in areas with mining activity are more likely to be coal-fired and to purchase more coal f...
Source: Regional Science and Urban Economics - November 6, 2019 Category: Science Source Type: research

Backyarding: Theory and evidence for South Africa
Publication date: Available online 24 October 2019Source: Regional Science and Urban EconomicsAuthor(s): Jan K. Brueckner, Claus Rabe, Harris SelodAbstractThis paper explores the incentives for backyarding, an expanding category of urban land-use in developing countries that has proliferated South Africa. The theoretical model exposes the trade-off faced by the homeowner in deciding how much backyard land to rent out: loss of yard space consumption in return for a gain in rental income. Under common forms for preferences, the homeowner's own-consumption of yard space falls as land rent increases, causing more land to be re...
Source: Regional Science and Urban Economics - October 26, 2019 Category: Science Source Type: research

The political economy of interregional competition for firms
Publication date: Available online 17 October 2019Source: Regional Science and Urban EconomicsAuthor(s): Daniel Hopp, Michael KriebelAbstractThis paper studies interregional competition for a multinational firm when the bidding is decided by the median voter. We model the competition as an auction under full information between two asymmetric regions inhabited by low- and high-skilled individuals. We derive two results: First, the location decision is inefficient in most cases. Second, winning the auction is harmful for the region, if the political process and strong competition lead to subsidies which exceed the surplus c...
Source: Regional Science and Urban Economics - October 19, 2019 Category: Science Source Type: research

Editorial Board
Publication date: September 2019Source: Regional Science and Urban Economics, Volume 78Author(s): (Source: Regional Science and Urban Economics)
Source: Regional Science and Urban Economics - October 16, 2019 Category: Science Source Type: research

Publisher's note
Publication date: September 2019Source: Regional Science and Urban Economics, Volume 78Author(s): (Source: Regional Science and Urban Economics)
Source: Regional Science and Urban Economics - October 16, 2019 Category: Science Source Type: research

The regional effects of a place-based policy – Causal evidence from Germany
Publication date: Available online 7 October 2019Source: Regional Science and Urban EconomicsAuthor(s): Matthias Brachert, Eva Dettmann, Mirko TitzeAbstractThe German government provides discretionary investment grants to structurally weak regions in order to reduce regional inequality. We use a regression discontinuity design that exploits an exogenous discrete jump in the probability of regional actors to receive investment grants to identify the causal effects of the policy. We find positive effects of the programme on district-level gross value-added and productivity growth, but no effects on employment and gross wage ...
Source: Regional Science and Urban Economics - October 10, 2019 Category: Science Source Type: research

Evaluating a place-based innovation policy: Evidence from the innovative Regional Growth Cores Program in east Germany
Publication date: Available online 5 October 2019Source: Regional Science and Urban EconomicsAuthor(s): Oliver Falck, Johannes Koenen, Tobias LohseAbstractWe evaluate one of the largest place-based innovation policies in Germany – the Innovative Regional Growth Cores (IRGC) program. It subsidizes collaborative development and commercialization projects of firms and public research institutes co-located in regions in eastern Germany, with the explicit goal of generating local spillovers to promote regional economic development. We evaluate three potential types of effects with regard to a broad set of outcomes at the ...
Source: Regional Science and Urban Economics - October 7, 2019 Category: Science Source Type: research

Does gentrification displace poor children and their families? new evidence from medicaid data in New York City
Publication date: Available online 28 September 2019Source: Regional Science and Urban EconomicsAuthor(s): Kacie Dragan, Ingrid Gould Ellen, Sherry GliedAbstractThe pace of gentrification has accelerated in cities across the country since 2000, and many observers fear that it is displacing low-income populations from their homes and communities. We offer new evidence about the consequences of gentrification on mobility, building and neighborhood conditions, using longitudinal New York City Medicaid records from January 2009 to December 2015 to track the movement of a cohort of low-income children over seven years, during a...
Source: Regional Science and Urban Economics - September 30, 2019 Category: Science Source Type: research

Dynamics of policy adoption with state dependence
Publication date: Available online 21 September 2019Source: Regional Science and Urban EconomicsAuthor(s): David R. Agrawal, A. TrandelAbstractWe consider the dynamics of policy diffusion when a first-moving jurisdiction that legalizes an activity reduces the probability of legalization in nearby later-acting jurisdictions. If a jurisdiction's firms can sell to neighboring residents, but if the good is competitively sold at every location, then policies converge: all jurisdictions legalize or all jurisdictions ban. If firms have some market power, and if the location of firms depends on the order of legalization, an early-...
Source: Regional Science and Urban Economics - September 22, 2019 Category: Science Source Type: research

The side effects on health of a recovery plan in Italy: A nonparametric bounding approach
Publication date: September 2019Source: Regional Science and Urban Economics, Volume 78Author(s): Domenico DepaloAbstractThis paper estimates the causal effects on health-related outcomes of recovery plans that were implemented in some Italian regions in the period 2007–12. Using administrative data, for regions that underwent the program the paper estimates negative effects on hospitalization and (to some extent) mortality rates, without gains in terms of efficiency. The lower the reduction of expenditures, the less severe the consequences on health outcomes. Since the assumptions required by standard methods do not...
Source: Regional Science and Urban Economics - September 21, 2019 Category: Science Source Type: research

Tests for spatial dependence and heterogeneity in spatially autoregressive varying coefficient models with application to Boston house price analysis
Publication date: Available online 18 September 2019Source: Regional Science and Urban EconomicsAuthor(s): Deng-Kui Li, Chang-Lin Mei, Ning WangAbstractSpatially autoregressive varying coefficient models are a powerful tool for simultaneously dealing with spatial dependence and spatial heterogeneity in spatial data analysis. Different methods have been developed for estimating the models. Nevertheless, little work has been devoted to their statistical inference issues. In this paper, two generalized-likelihood-ratio-statistic-based bootstrap tests are developed to detect spatial autocorrelation in the response variable and...
Source: Regional Science and Urban Economics - September 19, 2019 Category: Science Source Type: research

Migration deflection: The role of Preferential Trade Agreements
Publication date: Available online 5 September 2019Source: Regional Science and Urban EconomicsAuthor(s): Cosimo Beverelli, Gianluca OreficeAbstractWe derive and estimate a migration gravity equation featuring bilateral and third country migration and offshoring costs to investigate whether there is migration deflection across origin countries. Such deflection occurs if migration from an origin country to a destination country is negatively affected by reductions in the costs of migrating from third origin countries to the destination country. Using information on migration- and offshoring-related provisions contained in P...
Source: Regional Science and Urban Economics - September 6, 2019 Category: Science Source Type: research

Locus of control and internal migration
Publication date: Available online 5 September 2019Source: Regional Science and Urban EconomicsAuthor(s): Marco Caliendo, Deborah A. Cobb-Clark, Juliane Hennecke, Arne UhlendorffAbstractWe model migration across domestic labor markets (internal migration) as the outcome of a job search process in which job seekers form subjective beliefs about the return search effort that are related to their locus of control. Job seekers with an internal locus of control are predicted to search across larger geographic areas and migrate more frequently as a result. We empirically test the relationship between locus of control and the pro...
Source: Regional Science and Urban Economics - September 6, 2019 Category: Science Source Type: research

All roads lead to Rome … and to sprawl? Evidence from European cities
Publication date: Available online 31 August 2019Source: Regional Science and Urban EconomicsAuthor(s): Miquel-Àngel Garcia-LópezAbstractOver the last 15 years, we have learned that highways cause suburbanization and population growth. However, little is known about the resulting residential land use patterns. This paper aims to fill this gap by being the first to comprehensively analyze the effects of highways on sprawl. Using data from the Corine Land Cover project and the highway network for 579 European cities in 1990, 2000 and 2012, I find that a 10% increase in the stock of highways (km) causes a 1.1% g...
Source: Regional Science and Urban Economics - September 1, 2019 Category: Science Source Type: research

Not in my backyard? Not so fast. The effect of marijuana legalization on neighborhood crime
Publication date: Available online 24 August 2019Source: Regional Science and Urban EconomicsAuthor(s): Jeffrey Brinkman, David Mok-LammeAbstractThis paper studies the effects of marijuana legalization on neighborhood crime and documents the patterns in retail dispensary locations over time using detailed micro-level data from Denver, Colorado. To account for endogenous retail dispensary locations, we use a novel identification strategy that exploits exogenous changes in demand across different locations arising from the increased importance of external markets after the legalization of recreational marijuana sales. The re...
Source: Regional Science and Urban Economics - August 25, 2019 Category: Science Source Type: research

Mapping China’s time-varying house price landscape
Publication date: September 2019Source: Regional Science and Urban Economics, Volume 78Author(s): Michael Funke, Danilo Leiva-Leon, Andrew TsangAbstractThe recent increase in China’s house prices at the national level masks tremendous variation at the city level – a feature largely overlooked in the macroprudential literature. This paper measures the evolving heterogeneity in China’s house price dynamics across 70 major cities and assesses its relationship with housing market characteristics. We gauge the heterogeneity of house price dynamics using a novel regime-switching modelling approach to estimate t...
Source: Regional Science and Urban Economics - August 25, 2019 Category: Science Source Type: research

Enterprise zones, poverty, and labor market outcomes: Resolving conflicting evidence
Publication date: Available online 21 August 2019Source: Regional Science and Urban EconomicsAuthor(s): David Neumark, Timothy YoungAbstractThis paper revisits an important analysis of enterprise zones (EZs) by Ham et al. (2011), who report substantial poverty reductions from state and federal EZs, as well as improvements in other labor market outcomes. In our re-analysis, we find that a data error accounts for a large share of the estimated impact of state EZs in reducing poverty. More generally, we find that both state and federal EZs appear to be endogenously selected based on prior changes in poverty and other labor ma...
Source: Regional Science and Urban Economics - August 22, 2019 Category: Science Source Type: research

Heterogeneity in the effect of federal spending on local crime: Evidence from causal forests
Publication date: Available online 13 August 2019Source: Regional Science and Urban EconomicsAuthor(s): Ian Hoffman, Evan MastAbstractFederal place-based policy could improve efficiency if it targets areas with large amenity or agglomeration externalities. We begin by showing that positive shocks to federal spending in a county and their associated economic stimulus substantially decrease crime, an important amenity. We then employ two machine learning algorithms—causal trees and causal forests—to conduct a data-driven search for heterogeneity in this effect. The effect is larger in below-median income counties...
Source: Regional Science and Urban Economics - August 14, 2019 Category: Science Source Type: research

The side effects on health of a recovery plan in Italy A nonparametric bounding approach
Publication date: Available online 13 August 2019Source: Regional Science and Urban EconomicsAuthor(s): Domenico DepaloAbstractThis paper estimates the causal effects on health-related outcomes of recovery plans that were implemented in some Italian regions in the period 2007–12. Using administrative data, for regions that underwent the program the paper estimates negative effects on hospitalization and (to some extent) mortality rates, without gains in terms of efficiency. The lower the reduction of expenditures, the less severe the consequences on health outcomes. Since the assumptions required by standard methods ...
Source: Regional Science and Urban Economics - August 14, 2019 Category: Science Source Type: research

Mapping China's time-varying house price landscape
Publication date: Available online 9 August 2019Source: Regional Science and Urban EconomicsAuthor(s): Michael Funke, Danilo Leiva-Leon, Andrew TsangAbstractThe recent increase in China's house prices at the national level masks tremendous variation at the city level – a feature largely overlooked in the macroprudential literature. This paper measures the evolving heterogeneity in China's house price dynamics across 70 major cities and assesses its relationship with housing market characteristics. We gauge the heterogeneity of house price dynamics using a novel regime-switching modelling approach to estimate the time...
Source: Regional Science and Urban Economics - August 10, 2019 Category: Science Source Type: research

Does fiscal decentralization affect regional disparities in health? Quasi-experimental evidence from Italy
Publication date: Available online 9 August 2019Source: Regional Science and Urban EconomicsAuthor(s): Cinzia Di Novi, Massimiliano Piacenza, Silvana Robone, Gilberto TuratiAbstractRecent theories on fiscal decentralization support the view that sub-national governments who finance a larger share of their spending with taxes raised locally by themselves are more accountable towards their citizens. Whilst evidence on improvements in spending efficiency is relatively common, little is known about the effects on inequalities amongst the population. In this paper we exploit a reform aimed at increasing regional tax autonomy in...
Source: Regional Science and Urban Economics - August 10, 2019 Category: Science Source Type: research

Human capital spillovers and the churning phenomenon: Analysing wage effects from gross in- and outflows of high-skilled workers
Publication date: Available online 6 August 2019Source: Regional Science and Urban EconomicsAuthor(s): Johann Eppelsheimer, Joachim MöllerThe article estimates human capital externalities on wages originating from internal gross migration flows of high-skilled workers. We draw on rich administrative micro panel data that allow us to disentangle externalities from sorting and labour market supply and demand effects through an extensive set of time-varying fixed effects. We show that regional inflows and outflows of high-skilled workers occur simultaneously and that both are positively correlated. Given the existence of...
Source: Regional Science and Urban Economics - August 6, 2019 Category: Science Source Type: research

Editorial Board
Publication date: July 2019Source: Regional Science and Urban Economics, Volume 77Author(s): (Source: Regional Science and Urban Economics)
Source: Regional Science and Urban Economics - July 25, 2019 Category: Science Source Type: research

Negative house price co-movements and US recessions
Publication date: Available online 1 July 2019Source: Regional Science and Urban EconomicsAuthor(s): Charlotte Christiansen, Jonas N. Eriksen, Stig V. MøllerAbstractWe investigate the relation between large negative house price co-movements in the cross-section of US cities and the national business cycle. The occurrences of large negative house price co-movements across cities cluster over time and these clusters are closely linked to NBER recession dates. A simple co-movement measure that aggregates large negative city-level house price returns reliably predicts future recession periods. Weighting cities according...
Source: Regional Science and Urban Economics - July 3, 2019 Category: Science Source Type: research

How small are small markets? Local market size for child care services
Publication date: Available online 26 June 2019Source: Regional Science and Urban EconomicsAuthor(s): Astrid Pennerstorfer, Dieter PennerstorferAbstractIn this article, we propose an innovative way of delineating local markets based on easily accessible data. We apply this concept to the day care industry and investigate providers' location choices relative to local market characteristics to evaluate the widespread presumption that local markets for child care services are geographically very small. Using a panel of all day care centers for the metropolitan region of Vienna, Austria, for nearly a decade, as well as geograp...
Source: Regional Science and Urban Economics - June 27, 2019 Category: Science Source Type: research

Public transport and urban pollution
Publication date: Available online 23 June 2019Source: Regional Science and Urban EconomicsAuthor(s): Rainald BorckAbstractThis paper studies the effect of public transport policies on urban pollution. It uses a quantitative equilibrium model with residential choice and mode choice. Pollution comes from commuting and residential energy use. The model parameters are calibrated to replicate key variables for American metropolitan areas. In the counterfactual, I study how free public transport coupled with increasing transit speed affects the equilibrium. In the baseline simulation, total pollution falls by 0.4%, as decreasin...
Source: Regional Science and Urban Economics - June 24, 2019 Category: Science Source Type: research

Heterogeneous labor and agglomeration over generations
Publication date: Available online 23 June 2019Source: Regional Science and Urban EconomicsAuthor(s): Ryusuke IharaAbstractProductivity in cities is enhanced by diverse workers from various regions and countries. However, agglomeration can homogenize the workers over time. To investigate the transition of labor diversity in the agglomeration process, this paper presents a two-region non-overlapping generations model. Workers are assumed to be differentiated in terms of their birthplaces, and the distribution of the birthplaces depends on their previous generation's residency choices. As a main result, this paper shows that...
Source: Regional Science and Urban Economics - June 24, 2019 Category: Science Source Type: research

Do tax incentives affect business location and economic development? Evidence from state film incentives
Publication date: Available online 20 June 2019Source: Regional Science and Urban EconomicsAuthor(s): Patrick ButtonAbstractI estimate the impacts of recently-popular U.S. state film incentives on filming location, film industry employment, wages, and establishments, and spillover impacts on related industries. I compile a detailed database of incentives, matching this with TV series and feature film data from the Internet Movie Database (IMDb) and Studio System, and establishment and employment data from the Quarterly Census of Employment and Wages and Country Business Patterns. I compare these outcomes in states before a...
Source: Regional Science and Urban Economics - June 21, 2019 Category: Science Source Type: research

High-skilled immigration and native task specialization in U.S. cities
This study examines the effect of high-skilled immigration on the occupational structure of native-born workers in U.S. cities. Results indicate that increases in foreign college workers in STEM occupations, where they hold a comparative advantage over native-born workers, increase the specialization of college natives in social-intensive tasks. Consistent with the productivity effect of task specialization, I find no evidence of displacement effects but do find evidence of positive wage effects of foreign STEM flows on college natives, particularly for those in high-social occupations. Identification strategy relies on an...
Source: Regional Science and Urban Economics - June 18, 2019 Category: Science Source Type: research

The disutility of commuting? The effect of gender and local labor markets
Publication date: Available online 10 June 2019Source: Regional Science and Urban EconomicsAuthor(s): Nikita Jacob, Luke Munford, Nigel Rice, Jennifer RobertsAbstractStandard economic theory postulates that commuting is a choice behavior undertaken when compensated through either lower rents or greater amenities in the housing market or through higher wages in the labor market. By exploiting exogenous shocks to commuting time, this paper investigates the impact on well-being of increased commuting. Ceteris paribus, exogenous increases in commuting time are expected to lower well-being. We find this holds for women but not ...
Source: Regional Science and Urban Economics - June 12, 2019 Category: Science Source Type: research

Editorial Board
Publication date: May 2019Source: Regional Science and Urban Economics, Volume 76Author(s): (Source: Regional Science and Urban Economics)
Source: Regional Science and Urban Economics - June 5, 2019 Category: Science Source Type: research

Editorial introduction to the special issue entitled: Spatial econometrics: New methods and applications
Publication date: May 2019Source: Regional Science and Urban Economics, Volume 76Author(s): Zhenlin Yang (Source: Regional Science and Urban Economics)
Source: Regional Science and Urban Economics - June 5, 2019 Category: Science Source Type: research

Gender segregation within neighborhoods
Publication date: Available online 31 May 2019Source: Regional Science and Urban EconomicsAuthor(s): Gregorio Caetano, Vikram MaheshriAbstractHomophily generates segregation, which reduces diversity in peer groups and leads to narrower social interactions. Using novel data from Foursquare, a popular mobile app that documents the activity of millions of people, we document robust, highly localized gender segregation within neighborhoods: most venues (e.g., shops, restaurants, parks, museums) in eight major US cities are highly gender segregated, and over half of the gender segregation across cities occurs within Census bloc...
Source: Regional Science and Urban Economics - May 31, 2019 Category: Science Source Type: research

Residential parking costs and car ownership: Implications for parking policy and automated vehicles
Publication date: Available online 30 May 2019Source: Regional Science and Urban EconomicsAuthor(s): Francis Ostermeijer, Hans RA. Koster, Jos van OmmerenAbstractResidents are often offered on-street parking at a fraction of the market price which may cause excess car ownership. However, residential parking costs are difficult to observe, so we propose an approach to estimate implicit residential parking costs and then examine the effect of these costs on household car ownership. We apply our approach to the four largest metropolitan areas of the Netherlands. Our results indicate that for city centres, annual residential p...
Source: Regional Science and Urban Economics - May 30, 2019 Category: Science Source Type: research

City size and the risk of being unemployed. Job pooling vs. job competition
Publication date: Available online 19 May 2019Source: Regional Science and Urban EconomicsAuthor(s): Carl Gaigné, Mathieu Sanch-MaritanAbstractWe study the relationship between city size and the risk of being unemployed. We introduce a new mechanism, job pooling, as a source of agglomeration economies in a model of risk sharing with an imperfect labor market and risk-neutral agents. Despite competition across workers for jobs in the largest cities (job competition), workers tend to be located in large cities because tight labor markets yield income gains from the sharing of firms among workers that do not know ex an...
Source: Regional Science and Urban Economics - May 19, 2019 Category: Science Source Type: research

Commuting and land use in a city with bottlenecks: Theory and evidence
We present a new monocentric city framework that combines a discrete urban space with multiple Vickrey (1969)-type bottlenecks. The model illustrates commute scheduling patterns by residents at different locations in the city. We confirm empirically the relationship between residential location and commute timing choices predicted by the model. In particular, we find that commuters traveling a longer distance tend to arrive at work at the edge of the morning peak time while commuters with a shorter distance tend to arrive at the peak time. We also characterize the optimal policy of congestion toll and analyzes its impact o...
Source: Regional Science and Urban Economics - May 18, 2019 Category: Science Source Type: research

The effect of education on health: Evidence from the 1997 compulsory schooling reform in Turkey
Publication date: Available online 14 May 2019Source: Regional Science and Urban EconomicsAuthor(s): Badi H. Baltagi, Alfonso Flores-Lagunes, Haci M. KaratasAbstractThis paper analyzes the relationship between education and health outcomes using a natural experiment in Turkey. The compulsory schooling increased from 5 to 8 years in 1997. This increase was accompanied by a massive construction of classrooms and recruitment of teachers in a differential rate across regions. As in previous studies, we confirm that the 1997 reform substantially increased education in Turkey. Using the number of new middle school class openings...
Source: Regional Science and Urban Economics - May 16, 2019 Category: Science Source Type: research

Learning from man or machine: Spatial fixed effects in urban econometrics
Publication date: Available online 15 May 2019Source: Regional Science and Urban EconomicsAuthor(s): Åvald Sommervoll, Dag Einar SommervollAbstractEconometric models with spatial fixed effects (FE) require some kind of spatial aggregation. This aggregation may be based on postcode, school district, county or some other spatial subdivision. Common sense would suggest that the less aggregated, the better inasmuch as aggregation over larger areas tends to gloss over systematic spatial variation. On the other hand, low spatial aggregation results in thin data sets and potentially noisy spatial fixed effects. We show, how...
Source: Regional Science and Urban Economics - May 16, 2019 Category: Science Source Type: research

Deadlier road accidents? Traffic safety regulations and heterogeneous motorists’ behavior
Publication date: Available online 22 April 2019Source: Regional Science and Urban EconomicsAuthor(s): Madhav S. Aney, Christine HoAbstractIn 2003, China enacted the Road Traffic Safety Law in an attempt to promote traffic safety. We employ a difference-in-differences strategy on province level data, where fire accidents are used as a control group for road accidents, to estimate the effects of the law on road accidents and casualties. Our findings suggest that while the law was successful in decreasing the number of accidents and casualties, the ratio of deaths to accidents and injuries to accidents increased. Exploring t...
Source: Regional Science and Urban Economics - April 23, 2019 Category: Science Source Type: research

Agglomeration economies in creative industries
Publication date: Available online 12 April 2019Source: Regional Science and Urban EconomicsAuthor(s): Jin Tao, Chun-Yu Ho, Shougui Luo, Yue ShengAbstractThis paper examines agglomeration effects on the productivity of Chinese firms in the creative industries between 2012 and 2014. We estimate productivity with a production function approach, and test whether three measures of agglomeration—namely, specialization, diversity, and density—affect the productivity of firms in creative industries. According to our results, that the density elasticity of productivity is 0.31, which suggests that agglomeration economi...
Source: Regional Science and Urban Economics - April 13, 2019 Category: Science Source Type: research

Introduction to the special issue on “Public policies, cities and regions”
Publication date: Available online 12 April 2019Source: Regional Science and Urban EconomicsAuthor(s): Florian Mayneris, Elisabet Viladecans-Marsal (Source: Regional Science and Urban Economics)
Source: Regional Science and Urban Economics - April 13, 2019 Category: Science Source Type: research

Schools as places of crime? Evidence from closing chronically underperforming schools
Publication date: Available online 5 April 2019Source: Regional Science and Urban EconomicsAuthor(s): Matthew P. Steinberg, Benjamin Ukert, John M. MacDonaldAbstractWe leverage the closing of chronically underperforming public schools in Philadelphia to estimate their impact on neighborhood crime. Employing a difference-in-differences strategy comparing monthly crime in blocks where school buildings closed to blocks where schools remained open or were never located, we find significant and substantive declines in crime following school closure. The decline in crime is driven by reductions in violent crime, is concentrated ...
Source: Regional Science and Urban Economics - April 5, 2019 Category: Science Source Type: research

Land-assembly and externalities: How do positive post-development externalities affect land aggregation outcomes?
Publication date: Available online 28 March 2019Source: Regional Science and Urban EconomicsAuthor(s): Javier E. PortilloAbstractLarge-scale developments often require developers to aggregate multiple parcels of land to proceed with construction; this process is known as land assembly. Frequently, developers fail to assemble land due to a key landowner, or holdout, who seeks to extract monopoly rents. While, the holdout problem has been studied extensively in the literature, an additional and equally important source of friction involves positive post-development externalities. These externalities manifest when a developer...
Source: Regional Science and Urban Economics - March 28, 2019 Category: Science Source Type: research