Regional Science and Urban Economics最新文献

Whether citizens like or dislike federal policies often depends on regional differences. Because of geography, (economic) history or other path-dependent factors, certain regions are perceived to get more out of the union than others. We show that citizens, therefore, have a strategic incentive to elect Federal delegates that are more extreme than the representative voter. The intensity of such strategic delegation is U-shaped in expected benefits. The predictions of our model hence rationalise the voting differences we observe in the data between national and EU elections.

Despite its importance as a public good, little research studies how fire protection services affect housing markets or other economic outcomes. We focus on fire levies that are up for renewal so that the timing of the levy is exogenous, to help preserve the independence of votes. We use regression discontinuity to compare the price of houses in fire districts that barely pass and fail to renew a fire tax levy. House values drop at least 6.7 % the year after a community votes to cut fire protection funding, which is a quarter of a standard deviation of sale price and larger than the capitalization of crime, school quality, or environmental quality. Tax levies representing more than the median 18.8 % funding drop elicit a larger drop in house prices. The short-term decrease does not persist, though, suggesting limited awareness and a decline in risk perception over time by buyers and sellers.

This paper examines the challenges and opportunities in decarbonizing the passenger road transportation sector by reviewing recent empirical evidence and drawing lessons for developing countries. It first identifies the advantages and disadvantages of various policy instruments to promote modal shifts and vehicle fuel efficiency, and then discusses the potential impacts of electrification and ride-hailing in transportation decarbonization. While developing countries face formidable challenges in reducing carbon emissions from passenger transportation due to income and population growth, the paper argues that a unique window of opportunity exists to foster a culture of sustainable travel behavior by expanding public transit in combination with market-based pricing policies.

Does spending time in a location cause a person to stay there longer? We use a 1999 change in Danish refugee settlement policy to address this question. The policy change strongly encouraged refugees to stay in their assigned settlement municipality for at least three years. Using empirical designs for natural experiments, we find that treated refugees were more likely to be in their assigned location many years after their residence was granted. In a difference-in-differences specification, treated refugees were 4.8 percentage points more likely to remain in their first commuting zone 13 years later. A regression discontinuity design delivers a larger but less precise point estimate.

In our evaluation of the housing expenditure share cap, a macroprudential policy, we discover the importance of modeling space. In a spatial model, the equilibrium features income-based spatial sorting where a household competes with households of their own income type for residential space. As a result, the cap policy causes a larger drop in housing demand, and consequently a larger reduction in equilibrium housing prices, for constrained low-income families than for unconstrained high-income families. Depending on the assumption on households’ preference, this mechanism leads to a smaller increase or even a modest decrease in welfare inequality in a spatial model than in a spaceless model.

We discuss two approaches to estimating the air quality impacts of public transit projects, focusing on Metro projects in the context of developing countries: air quality modeling and reduced-form econometric methods. As we illustrate, pollution reductions due to Metro projects implied by pollutant chemistry, vehicle emissions factors, and modal shifts may differ from econometric estimates of the impact of transit projects on ambient pollution concentrations. We discuss both approaches and illustrate how economics researchers can use estimated emissions reductions associated with a transit project and pollutant chemistry as a check on their estimates of changes in ambient concentrations.

We consider the implications of unifying the distinct literatures on residential sorting and human capital dynamics. We argue that integrating insights from recent work in both areas has important implications for future research at the intersection of environmental and urban economics. To focus attention on these implications, we summarize stylized facts from recent empirical work on residential sorting and on the effects of exposures to environmental factors on human capital. Then we outline a simple overlapping generations model that reproduces these stylized facts and use it to guide our discussion on directions for future research.

Do environmental conditions pose greater health risks to individuals living in urban or rural areas? The answer is theoretically ambiguous: while urban areas have traditionally been associated with heightened exposure to environmental pollutants, the economies of scale and density inherent to urban environments offer unique opportunities for mitigating or adapting to these harmful exposures. To make progress on this question, we focus on the United States and consider how exposures – to air pollution, drinking water pollution, and extreme temperatures – and the response to those exposures differ across urban and rural settings. While prior studies have addressed some aspects of these issues, substantial gaps in knowledge remain, in large part due to historical deficiencies in monitoring and reporting, especially in rural areas. As a step toward closing these gaps, we present new evidence on urban–rural differences in air quality and population sensitivity to air pollution, leveraging recent advances in remote sensing measurement and machine learning. We find that the urban–rural gap in fine particulate matter (PM_2.5) has converged over the last two decades and the remaining gap is small relative to the overall declines. Furthermore, we find that residents of urban counties are, on average, less vulnerable to the mortality effects of PM_2.5 exposure. We also discuss promising areas for future research.

This paper investigates how the local COVID-19 outbreak, acting as a sudden negative shock to mobility and accessibility, led to a significant generational disparity, with younger people benefiting disproportionately from the ability to transition to online consumption. Employing credit card transaction data linked to cardholders’ demographic characteristics, we construct online spending shares by age group to study the generational disparity in online consumption when consumer mobility was constrained. We estimate a difference-in-difference model based on an exogenous regional outbreak of COVID-19 in South Korea. Our results show that when the mobility costs to offline stores unexpectedly increased due to the pandemic, middle-aged and older adults (aged 45 and above) were less likely to shift their spending online than younger adults (aged 20–44). The limited shift to the online consumption of older people resulted in decreases in their total consumption, while that of younger ones changed little, thereby increasing generational consumption inequality. With the rising trend in e-commerce, our findings emphasize the growing importance of generational differences in adapting to new shopping technologies.

Lack of access to affordable transportation has been hypothesized to be a barrier to employment among low-wage workers. We build a structural job search model to investigate how commuting costs influence the employment decisions of low-wage workers in the United States, and whether differences in commuting by race and education can explain observed disparities in employment. We find that commuting itself poses a significant barrier to overall low-wage employment, as the associated costs are high relative to potential wages. However, we find that inter-group differences in commuting costs account for a much smaller fraction of inter-group employment disparities than do differences in other labor market factors such as the wage offer distribution and offer arrival rates.