Pub Date : 2024-10-15DOI: 10.1007/s11187-024-00977-1
Christopher J. Boudreaux, Steven W. Bradley, Anand Jha, Joao F. Mazzoni
Social capital is important for organizational performance, but it can be a challenge for new firms to establish exchange relationships. While studies have focused on founder-level social ties and network effects on firm survival or performance, less attention has been given to the role of social capital within the community. We theorize that founder social ties are related to community social capital, which fosters varying levels of business opportunities. These relationships and business opportunities influence start-up survival. We test our hypotheses for a longitudinal cohort of new start-ups using Kauffman Firm Survey data merged with community social capital data. Our baseline model finds that a founder’s weak tie relationships—not strong ties—are associated with higher odds of start-up survival. Furthermore, we find that community-level social capital increases survival odds, particularly for founders who receive funding from weak-tie networks. Our study furthers our understanding of how community-level social engagement shapes founders’ social networks and firm survival odds through increased possibilities for exchange relationships.
{"title":"You are only as strong as your weakest link: Founder and community social capital and start-up survival","authors":"Christopher J. Boudreaux, Steven W. Bradley, Anand Jha, Joao F. Mazzoni","doi":"10.1007/s11187-024-00977-1","DOIUrl":"https://doi.org/10.1007/s11187-024-00977-1","url":null,"abstract":"<p>Social capital is important for organizational performance, but it can be a challenge for new firms to establish exchange relationships. While studies have focused on founder-level social ties and network effects on firm survival or performance, less attention has been given to the role of social capital within the community. We theorize that founder social ties are related to community social capital, which fosters varying levels of business opportunities. These relationships and business opportunities influence start-up survival. We test our hypotheses for a longitudinal cohort of new start-ups using Kauffman Firm Survey data merged with community social capital data. Our baseline model finds that a founder’s weak tie relationships—not strong ties—are associated with higher odds of start-up survival. Furthermore, we find that community-level social capital increases survival odds, particularly for founders who receive funding from weak-tie networks. Our study furthers our understanding of how community-level social engagement shapes founders’ social networks and firm survival odds through increased possibilities for exchange relationships.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":null,"pages":null},"PeriodicalIF":6.4,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142443796","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-15DOI: 10.1016/j.ecolecon.2024.108416
Anthropogenic environmental impacts substantially threaten the sustainable development of cities and counties. This paper offers an original assessment of the role played by population, economic growth and technology change in the evolution of local air pollution and soil sealing, using the STIRPAT approach. The analysis covers the development of 367 German counties and autonomous cities (NUTS 3 level) between 1990 and 2020. Results indicate that the development of NOx emissions and soil sealing is clearly related to car ownership, number of houses and regional population for all counties. In contrast to, environmental impacts related to GDP per capita, share of industrial manufacturing and urban density depend on the types of regions. Finally, results show non-linear (EKC) dynamics regarding the impacts of population and GDP per capita on NOx emissions. Environmental policies need to take care about the settlement structures and the level of relevant variables.
{"title":"Impacts of population, affluence and urbanization on local air pollution and land transformation – A regional STIRPAT analysis for German districts","authors":"","doi":"10.1016/j.ecolecon.2024.108416","DOIUrl":"10.1016/j.ecolecon.2024.108416","url":null,"abstract":"<div><div>Anthropogenic environmental impacts substantially threaten the sustainable development of cities and counties. This paper offers an original assessment of the role played by population, economic growth and technology change in the evolution of local air pollution and soil sealing, using the STIRPAT approach. The analysis covers the development of 367 German counties and autonomous cities (NUTS 3 level) between 1990 and 2020. Results indicate that the development of NO<sub>x</sub> emissions and soil sealing is clearly related to car ownership, number of houses and regional population for all counties. In contrast to, environmental impacts related to GDP per capita, share of industrial manufacturing and urban density depend on the types of regions. Finally, results show non-linear (EKC) dynamics regarding the impacts of population and GDP per capita on NO<sub>x</sub> emissions. Environmental policies need to take care about the settlement structures and the level of relevant variables.</div></div>","PeriodicalId":51021,"journal":{"name":"Ecological Economics","volume":null,"pages":null},"PeriodicalIF":6.6,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142433462","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-15DOI: 10.1016/j.econmod.2024.106915
Is the fine wine market segmented? The literature shows that this is the case for ordinary wines, and this has significant implications for hedonic analysis. We apply a finite mixture model to a 20-year dataset of auction prices. Our results reveal the existence of five segments in the fine wine market that differ in both their composition and the effects of scores, age, and market conditions on prices. This segmentation helps reconcile the divergent findings in existing research: some wines are highly sensitive to market conditions and have yielded significant returns (investment wines), while prices of other wines are primarily influenced by age (collectible wines) or quality (drinking wines). Our findings enhance the understanding of fine wine pricing and offer new insights into the age-price relationship, which is generally linear but varies by segment and vintage quality.
{"title":"Market segments and pricing of fine wines over their lifecycle","authors":"","doi":"10.1016/j.econmod.2024.106915","DOIUrl":"10.1016/j.econmod.2024.106915","url":null,"abstract":"<div><div>Is the fine wine market segmented? The literature shows that this is the case for ordinary wines, and this has significant implications for hedonic analysis. We apply a finite mixture model to a 20-year dataset of auction prices. Our results reveal the existence of five segments in the fine wine market that differ in both their composition and the effects of scores, age, and market conditions on prices. This segmentation helps reconcile the divergent findings in existing research: some wines are highly sensitive to market conditions and have yielded significant returns (investment wines), while prices of other wines are primarily influenced by age (collectible wines) or quality (drinking wines). Our findings enhance the understanding of fine wine pricing and offer new insights into the age-price relationship, which is generally linear but varies by segment and vintage quality.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":null,"pages":null},"PeriodicalIF":4.2,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142444656","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-15DOI: 10.1016/j.eap.2024.10.010
Green innovation is a crucial strategy for fostering a green economy and achieving sustainable development. This paper focuses on the role of government debt in the sustainability of firm green innovation, particularly in the context of Chinese local government debt governance reform in 2014 (CLGDGR2014). By analyzing annual data of Chinese publicly listed firms from 2011 to 2018, the study explores the impact of CLGDGR2014 on firm green innovation and the underlying driving mechanisms. The findings suggest that CLGDGR2014 improves the firm green innovation, by alleviating firms' financing constraints and underscoring the productive function of local government debt in advancing new infrastructure development. The further analysis explores the impact of various types of debt on green innovation after CLGDGR2014 and indicates that explicit local government debt has a promoting effect while implicit local government debt is not obvious. In conclusion, this research offers new insights into leveraging and managing local government debt to stimulate green innovation.
{"title":"Does local government debt promote firm green innovation? Evidence from the Chinese local government debt governance reform","authors":"","doi":"10.1016/j.eap.2024.10.010","DOIUrl":"10.1016/j.eap.2024.10.010","url":null,"abstract":"<div><div>Green innovation is a crucial strategy for fostering a green economy and achieving sustainable development. This paper focuses on the role of government debt in the sustainability of firm green innovation, particularly in the context of Chinese local government debt governance reform in 2014 (CLGDGR2014). By analyzing annual data of Chinese publicly listed firms from 2011 to 2018, the study explores the impact of CLGDGR2014 on firm green innovation and the underlying driving mechanisms. The findings suggest that CLGDGR2014 improves the firm green innovation, by alleviating firms' financing constraints and underscoring the productive function of local government debt in advancing new infrastructure development. The further analysis explores the impact of various types of debt on green innovation after CLGDGR2014 and indicates that explicit local government debt has a promoting effect while implicit local government debt is not obvious. In conclusion, this research offers new insights into leveraging and managing local government debt to stimulate green innovation.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":null,"pages":null},"PeriodicalIF":7.9,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142445446","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-15DOI: 10.1016/j.erss.2024.103788
Achieving universal access to electricity is central to the Agenda for Sustainable Development. However, over half a billion people in Sub-Saharan Africa are currently at risk of being left without electricity access by 2030. A rapid scale up of off-grid renewable electrification is needed to close the energy access gap, requiring innovation and new collaborations between private actors, the public sector, and service users. Several critical challenges to scaling access to mini-grids remain, most notably a lack of investment, and the uncertain regulatory environment in many sub-Saharan African countries. This study aimed to provide evidence about how external risks affect mini-grid business models and the strategies that developers apply to manage challenges. We compared two case studies of private sector-led mini-grids in Kenya interviewing a range of key stakeholders for each case. The data were analysed using a framework informed by business model innovation, frugal innovation, and the service design concept of value co-creation. We found that value co-creation is influenced by factors including political interference, regulatory uncertainty and customers' previous experiences with other energy services and their expectations of the new service. The strategies that developers use to address these challenges can have both positive and negative consequences for value co-creation. The ability to maintain focus on delivering a service that incorporates the core frugal aspects of reliability, affordability, simplicity and adaptability appears to be a key factor determining how well a firm navigates external pressures, influencing the overall viability of the business model.
{"title":"Grid expectations: How service design and business model innovation can support mini-grid development in Kenya","authors":"","doi":"10.1016/j.erss.2024.103788","DOIUrl":"10.1016/j.erss.2024.103788","url":null,"abstract":"<div><div>Achieving universal access to electricity is central to the Agenda for Sustainable Development. However, over half a billion people in Sub-Saharan Africa are currently at risk of being left without electricity access by 2030. A rapid scale up of off-grid renewable electrification is needed to close the energy access gap, requiring innovation and new collaborations between private actors, the public sector, and service users. Several critical challenges to scaling access to mini-grids remain, most notably a lack of investment, and the uncertain regulatory environment in many sub-Saharan African countries. This study aimed to provide evidence about how external risks affect mini-grid business models and the strategies that developers apply to manage challenges. We compared two case studies of private sector-led mini-grids in Kenya interviewing a range of key stakeholders for each case. The data were analysed using a framework informed by business model innovation, frugal innovation, and the service design concept of value co-creation. We found that value co-creation is influenced by factors including political interference, regulatory uncertainty and customers' previous experiences with other energy services and their expectations of the new service. The strategies that developers use to address these challenges can have both positive and negative consequences for value co-creation. The ability to maintain focus on delivering a service that incorporates the core frugal aspects of reliability, affordability, simplicity and adaptability appears to be a key factor determining how well a firm navigates external pressures, influencing the overall viability of the business model.</div></div>","PeriodicalId":48384,"journal":{"name":"Energy Research & Social Science","volume":null,"pages":null},"PeriodicalIF":6.9,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142441846","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-15DOI: 10.1016/j.habitatint.2024.103196
This paper rethinks participation in slum upgrading beyond a well-established dichotomy of “top-down” and “bottom-up” processes and instead proposes a relational and strategic approach to urban transformation. Based on qualitative research with a small informal settlement, Barrio Saldías, in Buenos Aires, that fell off the city government's agenda, this paper explores the role of participation in promoting upgrading from the margins. It argues that Saldías differs from instances of community-led upgrading due to the central role of party brokers and political representatives (especially from the local state) alongside residents, all of whom participate together in a political climate dominated by the discourses of citizen participation and slum upgrading. Rather than collapsing these experiences into the logic of clientelism, participation is centred as the articulatory logic based on a shared desire and commitment to transforming urban space, towards multiple political ends. Participatory upgrading in Saldías exceeds the narrow focus of project-centric approaches and draws on a wider trajectory of participation in Buenos Aires. It demonstrates this through an analysis of three moments of participatory upgrading in Saldías.
{"title":"Slum upgrading and participation: Insights from a marginalized neighbourhood in Buenos Aires","authors":"","doi":"10.1016/j.habitatint.2024.103196","DOIUrl":"10.1016/j.habitatint.2024.103196","url":null,"abstract":"<div><div>This paper rethinks participation in slum upgrading beyond a well-established dichotomy of “top-down” and “bottom-up” processes and instead proposes a relational and strategic approach to urban transformation. Based on qualitative research with a small informal settlement, Barrio Saldías, in Buenos Aires, that fell off the city government's agenda, this paper explores the role of participation in promoting upgrading from the margins. It argues that Saldías differs from instances of community-led upgrading due to the central role of party brokers and political representatives (especially from the local state) alongside residents, all of whom participate together in a political climate dominated by the discourses of citizen participation and slum upgrading. Rather than collapsing these experiences into the logic of clientelism, participation is centred as the articulatory logic based on a shared desire and commitment to transforming urban space, towards multiple political ends. Participatory upgrading in Saldías exceeds the narrow focus of project-centric approaches and draws on a wider trajectory of <em>participation</em> in Buenos Aires. It demonstrates this through an analysis of three moments of participatory upgrading in Saldías.</div></div>","PeriodicalId":48376,"journal":{"name":"Habitat International","volume":null,"pages":null},"PeriodicalIF":6.5,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142434180","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-15DOI: 10.1016/j.cities.2024.105447
This study aims to delve into the effectiveness of cultural urban regeneration projects in mitigating the challenges associated with Shrinking Cities. Busan City, South Korea's second most populous metropolitan area, has encountered a recent population decline, driven by factors like an aging demographic, youth outmigration, and plummeting birth rates. These trends have exacerbated the phenomenon of urban emptiness, particularly in the old downtown area of Busan. To counteract this trend, an urban regeneration initiative was launched near Busan Station, strategically positioned at the heart of the old downtown. The primary objective of this project was to reimagine Busan Station as more than just a public service facility but as a bustling center for commerce, culture, and information exchange. Against this background, this study sets out to evaluate the impact of the urban regeneration project at Busan Station through the lens of DID analysis. The empirical findings validate the research hypotheses, suggesting that cultural urban regeneration positively influences both the vibrancy of the local community and the revitalization of commercial districts. Since the inception of the urban regeneration efforts, there has been a discernible uptick in the vitality of the local community. While the DID coefficient for the number of businesses did not yield statistically significant results, the Parallel-trend test uncovered significant differences after the establishment of the creative knowledge platform in 2019. This underscores the potential role of physical infrastructure development and external factors like tourism in shaping the surrounding commercial landscape.
本研究旨在深入探讨城市文化复兴项目在缓解与 "城市萎缩 "相关的挑战方面的有效性。釜山市是韩国人口第二多的大都会区,受人口老龄化、青年外流和出生率急剧下降等因素的影响,近期人口数量有所下降。这些趋势加剧了城市空虚现象,尤其是在釜山老城区。为了应对这一趋势,釜山站附近启动了一项城市更新计划,该站位于老城区的中心,地理位置十分优越。该项目的主要目标是重新规划釜山站,使其不仅仅是一个公共服务设施,而是一个繁华的商业、文化和信息交流中心。在此背景下,本研究旨在通过 DID 分析,评估釜山站城市改造项目的影响。实证研究结果验证了研究假设,表明城市文化复兴对当地社区的活力和商业区的振兴都有积极影响。自城市更新工作启动以来,当地社区的活力明显增强。虽然企业数量的 DID 系数在统计上没有显著结果,但平行趋势检验发现,在 2019 年建立创意知识平台后,两者之间存在显著差异。这凸显了有形基础设施发展和旅游业等外部因素在塑造周边商业景观方面的潜在作用。
{"title":"Response to shrinking cities: Cultural urban regeneration","authors":"","doi":"10.1016/j.cities.2024.105447","DOIUrl":"10.1016/j.cities.2024.105447","url":null,"abstract":"<div><div>This study aims to delve into the effectiveness of cultural urban regeneration projects in mitigating the challenges associated with Shrinking Cities. Busan City, South Korea's second most populous metropolitan area, has encountered a recent population decline, driven by factors like an aging demographic, youth outmigration, and plummeting birth rates. These trends have exacerbated the phenomenon of urban emptiness, particularly in the old downtown area of Busan. To counteract this trend, an urban regeneration initiative was launched near Busan Station, strategically positioned at the heart of the old downtown. The primary objective of this project was to reimagine Busan Station as more than just a public service facility but as a bustling center for commerce, culture, and information exchange. Against this background, this study sets out to evaluate the impact of the urban regeneration project at Busan Station through the lens of DID analysis. The empirical findings validate the research hypotheses, suggesting that cultural urban regeneration positively influences both the vibrancy of the local community and the revitalization of commercial districts. Since the inception of the urban regeneration efforts, there has been a discernible uptick in the vitality of the local community. While the DID coefficient for the number of businesses did not yield statistically significant results, the Parallel-trend test uncovered significant differences after the establishment of the creative knowledge platform in 2019. This underscores the potential role of physical infrastructure development and external factors like tourism in shaping the surrounding commercial landscape.</div></div>","PeriodicalId":48405,"journal":{"name":"Cities","volume":null,"pages":null},"PeriodicalIF":6.0,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142438404","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-15DOI: 10.1016/j.cities.2024.105458
In an era of rapid urbanisation and an ageing population, innovative urban planning paradigms and tools are essential for creating inclusive, safe, resilient, and sustainable cities. Moreover, in the digital age, untapped potential exists for using disruptive technologies in urban planning to enhance evidence-based decision-making.
This study explored the promotion of age-friendly environments through the transformative potential of Local Digital Twins (LDTs) by integrating geographic information system (GIS) data, data analytics, and artificial intelligence. Tested in the European Commission-funded URBANAGE project, this study presents a digital twin-based Long-Term Urban Planner tool with simulation capabilities that allow for a comprehensive analysis and modelling of the effects of urban interventions. Two use cases are showcased: one suggesting public space intervention and the other tackling future demographic trends.
The main contribution of this study is the definition and development of an LDT using a modular-component-based approach that facilitates reuse and adaptation. Unlike isolated approaches, it provides a holistic solution that integrates social and technological domains. This study advances the understanding of the use of LDTs to create inclusive neighbourhoods by assessing neighbourhood age-friendliness and proposing informed urban interventions while underscoring the importance of robust data governance and capacity building among civil servants.
{"title":"Leveraging Local Digital Twins for planning age-friendly urban environments","authors":"","doi":"10.1016/j.cities.2024.105458","DOIUrl":"10.1016/j.cities.2024.105458","url":null,"abstract":"<div><div>In an era of rapid urbanisation and an ageing population, innovative urban planning paradigms and tools are essential for creating inclusive, safe, resilient, and sustainable cities. Moreover, in the digital age, untapped potential exists for using disruptive technologies in urban planning to enhance evidence-based decision-making.</div><div>This study explored the promotion of age-friendly environments through the transformative potential of Local Digital Twins (LDTs) by integrating geographic information system (GIS) data, data analytics, and artificial intelligence. Tested in the European Commission-funded URBANAGE project, this study presents a digital twin-based Long-Term Urban Planner tool with simulation capabilities that allow for a comprehensive analysis and modelling of the effects of urban interventions. Two use cases are showcased: one suggesting public space intervention and the other tackling future demographic trends.</div><div>The main contribution of this study is the definition and development of an LDT using a modular-component-based approach that facilitates reuse and adaptation. Unlike isolated approaches, it provides a holistic solution that integrates social and technological domains. This study advances the understanding of the use of LDTs to create inclusive neighbourhoods by assessing neighbourhood age-friendliness and proposing informed urban interventions while underscoring the importance of robust data governance and capacity building among civil servants.</div></div>","PeriodicalId":48405,"journal":{"name":"Cities","volume":null,"pages":null},"PeriodicalIF":6.0,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142433860","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The increase in farmland prices in many parts of the world over the past decade has sparked discussions about whether non-farmers pay higher prices for farmland. This study uses a causal machine learning approach with a rich data set of land transactions in Germany to quantify the potential price premium paid by non-farmers. By applying the causal forest method, we uncover the heterogeneity of price premiums and reveal moderating effects of covariates. We find that the average positive price premium by non-farmers decreases with parcel size and distance to a highway exit.
{"title":"Do non-farmers pay more for land than farmers?","authors":"Lorenz Schmidt, Martin Odening, Matthias Ritter","doi":"10.1093/erae/jbae023","DOIUrl":"https://doi.org/10.1093/erae/jbae023","url":null,"abstract":"The increase in farmland prices in many parts of the world over the past decade has sparked discussions about whether non-farmers pay higher prices for farmland. This study uses a causal machine learning approach with a rich data set of land transactions in Germany to quantify the potential price premium paid by non-farmers. By applying the causal forest method, we uncover the heterogeneity of price premiums and reveal moderating effects of covariates. We find that the average positive price premium by non-farmers decreases with parcel size and distance to a highway exit.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":null,"pages":null},"PeriodicalIF":3.4,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142440238","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-15DOI: 10.1016/j.jet.2024.105925
We consider the problem of finding the best time to stop a diffusion process for an agent with a preference model that is a mixture of expected utility theory (EUT) and cumulative prospect theory (CPT). In view of time-inconsistency, we consider two types of agents: a naive agent, who is not aware of the time-inconsistency and thus re-plans at every instant, and a sophisticated agent, who is aware of the time-inconsistency and takes a so-called intra-personal equilibrium strategy by correctly anticipating her actions in the future. We show that under a wide range of the CPT preference parameter values, the naive agent will never stop. For a sophisticated agent, we use a different notion of intra-personal equilibrium from the one employed by Ebert and Strack (2018). We show that any two-threshold strategy, which is to stop when the diffusion process reaches either an upper threshold or a lower threshold, cannot be an intra-personal equilibrium if the agent overweights worst, unlikely outcomes disproportionally. We derive a sufficient and necessary condition for the strategy of stopping everywhere to be an intra-personal equilibrium and show that this condition does not hold and thus the sophisticated agent may choose to start the diffusion process for some commonly used probability weighting functions.
{"title":"Never stop or never start? Optimal stopping under a mixture of CPT and EUT preferences","authors":"","doi":"10.1016/j.jet.2024.105925","DOIUrl":"10.1016/j.jet.2024.105925","url":null,"abstract":"<div><div>We consider the problem of finding the best time to stop a diffusion process for an agent with a preference model that is a mixture of expected utility theory (EUT) and cumulative prospect theory (CPT). In view of time-inconsistency, we consider two types of agents: a naive agent, who is not aware of the time-inconsistency and thus re-plans at every instant, and a sophisticated agent, who is aware of the time-inconsistency and takes a so-called intra-personal equilibrium strategy by correctly anticipating her actions in the future. We show that under a wide range of the CPT preference parameter values, the naive agent will never stop. For a sophisticated agent, we use a different notion of intra-personal equilibrium from the one employed by <span><span>Ebert and Strack (2018)</span></span>. We show that any two-threshold strategy, which is to stop when the diffusion process reaches either an upper threshold or a lower threshold, cannot be an intra-personal equilibrium if the agent overweights worst, unlikely outcomes disproportionally. We derive a sufficient and necessary condition for the strategy of stopping everywhere to be an intra-personal equilibrium and show that this condition does not hold and thus the sophisticated agent may choose to start the diffusion process for some commonly used probability weighting functions.</div></div>","PeriodicalId":48393,"journal":{"name":"Journal of Economic Theory","volume":null,"pages":null},"PeriodicalIF":1.4,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142442900","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}