Causal Inference in Urban and Regional Economics

Baum-Snow, Nathaniel; Ferreira, Fernando

doi:10.3386/w20535

Cited by 21 publications

(20 citation statements)

References 183 publications

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“…This should moderate the issue as households need time to move as well as to adjust housing characteristics to the new tax differential (Baum-Snow and Ferreira, 2014). It is unlikely that the population composition featured discontinuities in the absence of municipal boundaries and natural irregularities as the costs of social interactions are a smooth function of distance.…”

Section: Endogeneity Of Municipality Boundaries and Taxesmentioning

confidence: 99%

Income Taxes, Sorting and the Costs of Housing: Evidence from Municipal Boundaries in Switzerland*

Basten¹,

Ehrlich

Lassmann

2017

The Economic Journal

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We provide novel evidence on the role of income taxes for housing rents and spatial sorting. Drawing on comprehensive micro‐level data, we estimate the responsiveness of households to tax differentials across municipal boundaries. Correcting for unobservable location characteristics and isolating the residential sorting component, we identify an income tax elasticity of rents of about −0.27 to −0.35. In line with non‐homothetic preferences, we find that the marginal willingness to pay for lower taxes increases with income. Counterfactual calculations show how an homogenisation of taxes across jurisdictions and an increase in variation of taxes affect rents and income stratification across space.

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Section: Endogeneity Of Municipality Boundaries and Taxesmentioning

confidence: 99%

Income Taxes, Sorting and the Costs of Housing: Evidence from Municipal Boundaries in Switzerland*

Basten¹,

Ehrlich

Lassmann

2017

The Economic Journal

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“…3 The agglomeration of firms can assume two forms: clustering or colocation of several firms that belong to the same industry and clustering of many firms that belong to many different types of industries. The former may cause localisation economies, but the latter is expected to bring about urbanisation economies, where diversity and size of demand are essential features (Johansson 2004). clear that the interpretation of average differences in outcomes between treatment and control groups as treatment effects requires that the strong hypothesis of no direct or indirect influence of the treatment of one observation on outcomes of control observations must hold (e.g., Baum-Snow and Ferreira 2015). Recent studies can be split into two categories: those focusing on the plausibility of the SUTVA and those focusing on the methods for dealing with the impact evaluation of incentives in presence of spillovers.…”

Section: The Previous Literature On Industrial Policies' Spilloversmentioning

confidence: 99%

“…Recent studies can be split into two categories: those focusing on the plausibility of the SUTVA and those focusing on the methods for dealing with the impact evaluation of incentives in presence of spillovers. In the first category, the emphasis is largely placed on procedures that can minimise the possibility of SUTVA violations, like spatial aggregation, when spillovers occur between spatially proximate geographic units with different levels of treatment, as described in Baum-Snow and Ferreira (2015) or by exclusion of surrounding areas that are more inclined to spillover effects, as in Kline and Moretti (2014 The studies just presented make use of local areas as units, i.e. they try to evaluate the macro effects of a regional policy.…”

Section: The Previous Literature On Industrial Policies' Spilloversmentioning

confidence: 99%

Industrial policy evaluation in the presence of spillovers

Cerqua

Pellegrini

2017

Small Bus Econ

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The shortage of studies on spatial spillovers of capital subsidy policies is rather surprising, considering that such policies are usually designed to generate spatial externalities. We propose a new framework that allows positive agglomeration effects to be contrasted with the negative cross-sectional substitution and the crowding-out effect. The global evaluation of the ATT and the spillover parameters shifts the spotlight from the policy effect on subsidised firms to the global effect of capital subsidy policies on the targeted territory. The empirical evaluation of a policy in Italy mainly directed towards small-and medium-sized firms shows that the impact on investments, turnover and employment is positive and large, but is negative on TFP. However, the employment growth is partially determined to the detriment of the untreated firms.

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“…This section examines these various strategies. The reader may also refer to the chapter by Baum-Snow and Ferreira (2015) for additional considerations on causality.…”

Section: Dealing With Endogenous Local Determinantsmentioning

confidence: 99%

The Empirics of Agglomeration Economies

Combes¹,

Gobillon²

2015

Handbook of Regional and Urban Economics

471

410

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The empirics of agglomeration economies* We propose an integrated framework to discuss the empirical literature on the local determinants of agglomeration effects. We start by presenting the theoretical mechanisms that ground individual and aggregate empirical specifications. We gradually introduce static effects, dynamic effects, and workers' endogenous location choices. We emphasise the impact of local density on productivity but we also consider many other local determinants supported by theory. Empirical issues are then addressed. Most important concerns are about endogeneity at the local and individual levels, the choice of a productivity measure between wage and TFP, and the roles of spatial scale, firms' characteristics, and functional forms. Estimated impacts of local determinants of productivity, employment, and firms' locations choices are surveyed for both developed and developing economies. We finally provide a discussion of attempts to identify and quantify specific agglomeration mechanisms.JEL Classification: J31, R12 and R23

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Causal Inference in Urban and Regional Economics

Cited by 21 publications

References 183 publications

Income Taxes, Sorting and the Costs of Housing: Evidence from Municipal Boundaries in Switzerland*

Income Taxes, Sorting and the Costs of Housing: Evidence from Municipal Boundaries in Switzerland*

Industrial policy evaluation in the presence of spillovers

The Empirics of Agglomeration Economies

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