How much larger are the consumption possibilities of an urban US household with per capita expenditures of 1,000 US dollars per month than a rural Indonesian household with per capita expenditures of 1,000,000 Indonesian Rupiah per month? Consumers in different markets face widely different consumption possibilities and prices and hence the conversion of incomes or expenditures to truly comparable units of purchasing power is extremely difficult. We propose a simple supplement to existing purchasing power adjusted currency conversions. The Pritchett-Spivack Ratio (PSR) estimates the differences in household per capita expenditure using a simple inversion of the Engel’s law relationship between the share of food in consumption and total income/expenditures. Intuitively, we ask: “How much higher (as a ratio) would the expenditures of a household at 1,000,000 Indonesian Rupiah need to be along a given Engel relationship before they were predicted to have the same food share as a US household with consumption of 1,000 US dollars?” The striking empirical stability of Working-Lesser Engel coefficient estimates across time and space and widely available estimates of consumptions expenditures and hence food shares allow us to make two robust points using the PSR. First, the consumption of the typical (median) household in a developing country would have to rise 5 to10 fold to reach that of a household at the poverty line in an OECD country. Second, even the “rich of the poor”—the 90th or 95th percentile in developing countries—have food shares substantially higher than the “poor of the rich.”
{"title":"Estimating Income/Expenditure Differences Across Populations: New Fun with Old Engel's Law","authors":"L. Pritchett, Marla Spivack","doi":"10.2139/ssrn.2364649","DOIUrl":"https://doi.org/10.2139/ssrn.2364649","url":null,"abstract":"How much larger are the consumption possibilities of an urban US household with per capita expenditures of 1,000 US dollars per month than a rural Indonesian household with per capita expenditures of 1,000,000 Indonesian Rupiah per month? Consumers in different markets face widely different consumption possibilities and prices and hence the conversion of incomes or expenditures to truly comparable units of purchasing power is extremely difficult. We propose a simple supplement to existing purchasing power adjusted currency conversions. The Pritchett-Spivack Ratio (PSR) estimates the differences in household per capita expenditure using a simple inversion of the Engel’s law relationship between the share of food in consumption and total income/expenditures. Intuitively, we ask: “How much higher (as a ratio) would the expenditures of a household at 1,000,000 Indonesian Rupiah need to be along a given Engel relationship before they were predicted to have the same food share as a US household with consumption of 1,000 US dollars?” The striking empirical stability of Working-Lesser Engel coefficient estimates across time and space and widely available estimates of consumptions expenditures and hence food shares allow us to make two robust points using the PSR. First, the consumption of the typical (median) household in a developing country would have to rise 5 to10 fold to reach that of a household at the poverty line in an OECD country. Second, even the “rich of the poor”—the 90th or 95th percentile in developing countries—have food shares substantially higher than the “poor of the rich.”","PeriodicalId":410291,"journal":{"name":"ERN: Analytical Models (Topic)","volume":"75 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124176289","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2013-06-28DOI: 10.5775/FG.2067-4635.2013.063.I
F. Mihai, A. Lamasanu
Open dumps was the main option of the local communities in household waste management, this practice being banned after July 16, 2009. The paper examines the correlation between dumpsites volumes, population density and local geographical conditions in the context that in most rural administrative-territorial units of the county there were no facilities for waste collection. The geographical distribution of dumpsites volumes reflects the disparities between different areas of the county and on the other hand, it highlights the spaces exposed to pollution. Also, the comparative analysis between 2004 (pre-accession) and 2009 (post-accession) reflects a rudimentary waste management system in this period which favored the waste dumping. This paper analyses the issues of rural waste management and its environmental implications at local scale. Such approaches are necessary for a proper analysis of EU environmental policies implementation at regional and local level.
{"title":"Spatial Analysis of Dumpsites Volumes from Rural Territory Case Study: Neamt County, Romania","authors":"F. Mihai, A. Lamasanu","doi":"10.5775/FG.2067-4635.2013.063.I","DOIUrl":"https://doi.org/10.5775/FG.2067-4635.2013.063.I","url":null,"abstract":"Open dumps was the main option of the local communities in household waste management, this practice being banned after July 16, 2009. The paper examines the correlation between dumpsites volumes, population density and local geographical conditions in the context that in most rural administrative-territorial units of the county there were no facilities for waste collection. The geographical distribution of dumpsites volumes reflects the disparities between different areas of the county and on the other hand, it highlights the spaces exposed to pollution. Also, the comparative analysis between 2004 (pre-accession) and 2009 (post-accession) reflects a rudimentary waste management system in this period which favored the waste dumping. This paper analyses the issues of rural waste management and its environmental implications at local scale. Such approaches are necessary for a proper analysis of EU environmental policies implementation at regional and local level.","PeriodicalId":410291,"journal":{"name":"ERN: Analytical Models (Topic)","volume":"61 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-06-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115617040","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The presence of slums in a city is an indicator of poverty and its proper delimitation is a matter of interest for researchers and policy makers. Socio-economic data from surveys and censuses are the primary source of information to identify and quantify slumness within a city or a town. One problem of using survey data for quantifying slumness is that this type of data is usually collected every ten years and is an expensive and time consuming process. Based on the premise that the physical appearance of an urban settlement is a reflection of the society that created it and on the assumption that people living in urban areas with similar physical housing conditions will have similar social and demographic characteristics (Jain, 2008; Taubenb¨ock et al., 2009b); this paper uses data from Medellin City, Colombia, to estimate slum index using solely remote sensing data from an orthorectified, pan-sharpened, natural color Quickbird scene. For Medellin city, the percentage of clay roofs cover and the mean swimming pool density at the analytical region level can explain up to 59% of the variability in the slum index. Structure and texture measures are useful to characterize the differences in the homogeneity of the spatial pattern of the urban layout and they improve the explanatory power of the statistical models when taken into account. When no other information is used, they can explain up to 30% of the variability of the slum index. The results of this research are encouraging and many researchers, urban planners and policy makers could benefit from this rapid and low cost approach to characterize the intra-urban variations of slumness in cities with sparse data or no data at all.
一个城市是否有贫民窟是贫穷的一个指标，研究人员和决策者对贫民窟的合理界定很感兴趣。来自调查和人口普查的社会经济数据是确定和量化城市或城镇内的贫民窟的主要信息来源。使用调查数据量化睡眠的一个问题是，这种类型的数据通常每十年收集一次，这是一个昂贵且耗时的过程。基于城市住区的物理外观是创造它的社会的反映这一前提，并基于居住在具有相似物理住房条件的城市地区的人们将具有相似的社会和人口特征的假设(Jain, 2008;Taubenb¨ock et al.， 2009);本文使用哥伦比亚麦德林市的数据，仅使用来自正校正、泛化、自然彩色Quickbird场景的遥感数据来估计贫民窟指数。对于麦德林市来说，在分析区域层面上，粘土屋顶覆盖的百分比和平均游泳池密度可以解释高达59%的贫民窟指数变化。结构和质地度量有助于表征城市布局空间格局同质性的差异，并在考虑它们时提高统计模型的解释力。在不使用其他信息的情况下，它们可以解释高达30%的贫民窟指数变化。这项研究的结果令人鼓舞，许多研究人员、城市规划者和政策制定者可以从这种快速和低成本的方法中受益，以确定数据稀少或根本没有数据的城市中贫民窟的城市内部变化。
{"title":"Quantifying Slumness with Remote Sensing Data","authors":"J. Duque, Jorge E. Patiño, L. Ruiz, J. Pardo","doi":"10.2139/ssrn.2390737","DOIUrl":"https://doi.org/10.2139/ssrn.2390737","url":null,"abstract":"The presence of slums in a city is an indicator of poverty and its proper delimitation is a matter of interest for researchers and policy makers. Socio-economic data from surveys and censuses are the primary source of information to identify and quantify slumness within a city or a town. One problem of using survey data for quantifying slumness is that this type of data is usually collected every ten years and is an expensive and time consuming process. Based on the premise that the physical appearance of an urban settlement is a reflection of the society that created it and on the assumption that people living in urban areas with similar physical housing conditions will have similar social and demographic characteristics (Jain, 2008; Taubenb¨ock et al., 2009b); this paper uses data from Medellin City, Colombia, to estimate slum index using solely remote sensing data from an orthorectified, pan-sharpened, natural color Quickbird scene. For Medellin city, the percentage of clay roofs cover and the mean swimming pool density at the analytical region level can explain up to 59% of the variability in the slum index. Structure and texture measures are useful to characterize the differences in the homogeneity of the spatial pattern of the urban layout and they improve the explanatory power of the statistical models when taken into account. When no other information is used, they can explain up to 30% of the variability of the slum index. The results of this research are encouraging and many researchers, urban planners and policy makers could benefit from this rapid and low cost approach to characterize the intra-urban variations of slumness in cities with sparse data or no data at all.","PeriodicalId":410291,"journal":{"name":"ERN: Analytical Models (Topic)","volume":"44 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124360598","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This analysis examines the costs of everyday residential noise pollution using a series of “happiness regressions.” We control for both the possibility that an unobservable characteristic may cause omitted variable bias, as well as for the possibility of endogeneity bias if “effort” is not adequately taken into account. We find perceived noise pollution to exert a negative and highly significant effect on happiness. We then calculate the required income transfer to compensate for the noise and find the costs of noise pollution to be on the order of €172 per month per household.
{"title":"The Happiness‐Reducing Costs of Noise Pollution","authors":"Diana M. Weinhold","doi":"10.1111/jors.12001","DOIUrl":"https://doi.org/10.1111/jors.12001","url":null,"abstract":"This analysis examines the costs of everyday residential noise pollution using a series of “happiness regressions.” We control for both the possibility that an unobservable characteristic may cause omitted variable bias, as well as for the possibility of endogeneity bias if “effort” is not adequately taken into account. We find perceived noise pollution to exert a negative and highly significant effect on happiness. We then calculate the required income transfer to compensate for the noise and find the costs of noise pollution to be on the order of €172 per month per household.","PeriodicalId":410291,"journal":{"name":"ERN: Analytical Models (Topic)","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"118756123","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Direct trade between establishments, coupled with costs of trading goods and information across space, has long been considered a primary determinant of industrial colocation. However, researchers have had difficulty decomposing the effects of interindustry trade into these two cost components. Using new techniques for separately estimating shipping and information costs, this paper provides an empirical framework for identifying the various sources of industrial coagglomeration among U.S. manufacturing industries. My findings suggest that both interindustry shipping costs and information costs influence metropolitan‐level coagglomeration. Additional evidence points to the significant role of direct information costs in determining intraindustry agglomerations.
{"title":"Shipping Costs, Information Costs, and the Sources of Industrial Coagglomeration","authors":"Ryan M. Gallagher","doi":"10.1111/jors.12002","DOIUrl":"https://doi.org/10.1111/jors.12002","url":null,"abstract":"Direct trade between establishments, coupled with costs of trading goods and information across space, has long been considered a primary determinant of industrial colocation. However, researchers have had difficulty decomposing the effects of interindustry trade into these two cost components. Using new techniques for separately estimating shipping and information costs, this paper provides an empirical framework for identifying the various sources of industrial coagglomeration among U.S. manufacturing industries. My findings suggest that both interindustry shipping costs and information costs influence metropolitan‐level coagglomeration. Additional evidence points to the significant role of direct information costs in determining intraindustry agglomerations.","PeriodicalId":410291,"journal":{"name":"ERN: Analytical Models (Topic)","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"120449618","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2013-03-01DOI: 10.1111/j.1540-6229.2012.00332.x
Stephen B. Billings, T. Thibodeau
This paper empirically examines the extent to which the property tax liability created by financing residential infrastructure using special district bonds is capitalized in house prices. We compare house prices for single‐family detached homes built within development districts to similar properties located outside development districts. Our hedonic specification includes the usual housing characteristics and controls for the influence of spatial attributes using Census Block Group “neighborhood” fixed effects. The preferred empirical specification restricts the data to neighborhoods that have numerous sales of recently constructed single‐family detached homes located both within and outside development districts. The empirical results indicate that house prices for homes located within development districts are lower than house prices for similar homes located outside of development districts, but the amount of property tax capitalization is significantly less than full. Results depend on our Generalized Methods of Moments estimator, which instruments property tax rates using the characteristics of development districts. We identify valid instruments by restricting transactions to properties located in rapidly growing suburban developments.
{"title":"Financing Residential Development with Special Districts","authors":"Stephen B. Billings, T. Thibodeau","doi":"10.1111/j.1540-6229.2012.00332.x","DOIUrl":"https://doi.org/10.1111/j.1540-6229.2012.00332.x","url":null,"abstract":"This paper empirically examines the extent to which the property tax liability created by financing residential infrastructure using special district bonds is capitalized in house prices. We compare house prices for single‐family detached homes built within development districts to similar properties located outside development districts. Our hedonic specification includes the usual housing characteristics and controls for the influence of spatial attributes using Census Block Group “neighborhood” fixed effects. The preferred empirical specification restricts the data to neighborhoods that have numerous sales of recently constructed single‐family detached homes located both within and outside development districts. The empirical results indicate that house prices for homes located within development districts are lower than house prices for similar homes located outside of development districts, but the amount of property tax capitalization is significantly less than full. Results depend on our Generalized Methods of Moments estimator, which instruments property tax rates using the characteristics of development districts. We identify valid instruments by restricting transactions to properties located in rapidly growing suburban developments.","PeriodicalId":410291,"journal":{"name":"ERN: Analytical Models (Topic)","volume":"67 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122404747","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Filipe R. Campante, Quoc-Anh Do, Bernardo Guimaraes
Motivated by a novel stylized fact -- countries with isolated capital cities display worse quality of governance -- we provide a framework of endogenous institutional choice based on the idea that elites are constrained by the threat of rebellion, and that this threat is rendered less effective by distance from the seat of political power. In established democracies, the threat of insurgencies is not a binding constraint, and the model predicts no correlation between isolated capitals and misgovernance. In contrast, a correlation emerges in equilibrium in the case of autocracies. Causality runs both ways: broader power sharing (associated with better governance) means that any rents have to be shared more broadly, hence the elite has less of an incentive to protect its position by isolating the capital city; conversely, a more isolated capital city allows the elite to appropriate a larger share of output, so the costs of better governance for the elite, in terms of rents that would have to be shared, are larger. We show evidence that this pattern holds true robustly in the data. We also show that isolated capitals are associated with less power sharing, a larger income premium enjoyed by capital city inhabitants, and lower levels of military spending by ruling elites, as predicted by the theory.
{"title":"Isolated Capital Cities and Misgovernance: Theory and Evidence","authors":"Filipe R. Campante, Quoc-Anh Do, Bernardo Guimaraes","doi":"10.3386/W19028","DOIUrl":"https://doi.org/10.3386/W19028","url":null,"abstract":"Motivated by a novel stylized fact -- countries with isolated capital cities display worse quality of governance -- we provide a framework of endogenous institutional choice based on the idea that elites are constrained by the threat of rebellion, and that this threat is rendered less effective by distance from the seat of political power. In established democracies, the threat of insurgencies is not a binding constraint, and the model predicts no correlation between isolated capitals and misgovernance. In contrast, a correlation emerges in equilibrium in the case of autocracies. Causality runs both ways: broader power sharing (associated with better governance) means that any rents have to be shared more broadly, hence the elite has less of an incentive to protect its position by isolating the capital city; conversely, a more isolated capital city allows the elite to appropriate a larger share of output, so the costs of better governance for the elite, in terms of rents that would have to be shared, are larger. We show evidence that this pattern holds true robustly in the data. We also show that isolated capitals are associated with less power sharing, a larger income premium enjoyed by capital city inhabitants, and lower levels of military spending by ruling elites, as predicted by the theory.","PeriodicalId":410291,"journal":{"name":"ERN: Analytical Models (Topic)","volume":"44 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125052488","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper tests the impact of National Rural Employment Guarantee Scheme (NREGS) on rural-urban migration and urban unemployment in India. We use the Harris-Todaro framework to analyze labor market outcomes of this policy intervention. Using data from two rounds of National Sample Survey, we exploit quasi experiment setting where the NREGS was launched in phases across districts, over time. Results show that the NREGS reduced rural-urban migration and urban unemployment in India. Results are heterogeneous as this job scheme reduced migration for employment and marriage, but not for education. It lowered migration of unskilled labor but did not affect skilled labor.
{"title":"The Impact of NREGS on Urbanization in India","authors":"S. Ravi, M. Kapoor, Rahul Ahluwalia","doi":"10.2139/ssrn.2134778","DOIUrl":"https://doi.org/10.2139/ssrn.2134778","url":null,"abstract":"This paper tests the impact of National Rural Employment Guarantee Scheme (NREGS) on rural-urban migration and urban unemployment in India. We use the Harris-Todaro framework to analyze labor market outcomes of this policy intervention. Using data from two rounds of National Sample Survey, we exploit quasi experiment setting where the NREGS was launched in phases across districts, over time. Results show that the NREGS reduced rural-urban migration and urban unemployment in India. Results are heterogeneous as this job scheme reduced migration for employment and marriage, but not for education. It lowered migration of unskilled labor but did not affect skilled labor.","PeriodicalId":410291,"journal":{"name":"ERN: Analytical Models (Topic)","volume":"63 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-08-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127222936","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Leading empiricists and theorists of cities have recently argued that the generation and exchange of ideas must play a more central role in the analysis of cities. This paper develops the first system of cities model with costly idea exchange as the agglomeration force. The model replicates a broad set of established facts about the cross section of cities. It provides the first spatial equilibrium theory of why skill premia are higher in larger cities and how variation in these premia emerges from symmetric fundamentals. (JEL J24, J31, O31, R12, R23)
{"title":"A Spatial Knowledge Economy","authors":"D. Davis, Jonathan I. Dingel","doi":"10.1257/AER.20130249","DOIUrl":"https://doi.org/10.1257/AER.20130249","url":null,"abstract":"Leading empiricists and theorists of cities have recently argued that the generation and exchange of ideas must play a more central role in the analysis of cities. This paper develops the first system of cities model with costly idea exchange as the agglomeration force. The model replicates a broad set of established facts about the cross section of cities. It provides the first spatial equilibrium theory of why skill premia are higher in larger cities and how variation in these premia emerges from symmetric fundamentals. (JEL J24, J31, O31, R12, R23)","PeriodicalId":410291,"journal":{"name":"ERN: Analytical Models (Topic)","volume":"97 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114871503","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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