Relationship between city size and firm productivity – A new interpretation using the Chinese experience

This paper contributes to the literature on the relationship between city size and firm productivity by focusing on agglomeration, selection (market competition), and sorting (presence of firms with diverse productivity) effects using Chinese firm-level data for 1998–2013. Contrary to the existing literature, our parametric regression estimates from nearly two million firms show that when the selection effect is controlled, productivity advantage in big cities is reversed. This outcome is explained through a quantile regression showing the existence of left-sided sorting (inefficient firms sort themselves to larger cities) in big cities which is not captured in existing empirical literature. We further find that (1) left-sided sorting is stronger in exporters than non-exporters; (2) is also generated mainly in enterprises with high asset-liability ratios; and (3) selection has a positive effect on firm productivity, suggesting that market competition is key in an explanation of the rapid growth of big cities in China.     

The financial advice puzzle: The role of consumer heterogeneity in the advisor choice

We investigate motivational drivers of financial advisor use, accounting for investor heterogeneity, with the goal of helping institutions increase the use of financial advisor services. The results from a latent class choice model reveal two distinct segments that differ in their approach to the financial advice decision. While higher levels of risk tolerance, trust, and self-efficacy increase financial advice use for both segments, albeit at much higher propensities for Segment 1, personality only matters for Segment 1. Moreover, their regulatory focus differs with Segment 1 being promotion and Segment 2 being prevention focused. Using these results, we offer suggestions for marketing strategies.     

Heterogeneity and netting efficiency under central clearing: A stochastic network analysis

This paper examines the effect of heterogeneity in clearing members’ exposure management practices under central clearing. Our network model specifies the dynamics of prenetted interbank exposures to shape interdependent exposure distributions beyond normality. Employing over-the-counter derivatives market data from the U.S. Office of the Comptroller of the Currency, our simulation results indicate that heterogeneity in bank-to-bank exposure dynamics is systemically desirable, while the entire system benefits more from the central clearing in more homogeneous environments. Policymakers should incentivize individual clearing members to enhance resiliency and stability in counterparty exposure management to maximize netting efficiency under central clearing.     

Spatial and operational factors behind passenger yield of U.S. nonhub primary airports

Nonhub airports are an essential component in the National Plan of Integrated Airport Systems (NPIAS) of the United States in that they connect regional towns and small communities to the air transportation network. Understanding the interplay of operational and spatial factors in determining average passenger yield of nonhub airports provides airlines with valuable information for network planning and revenue management. This study examines factors contributing to the yield variation among nonhub airports in the U.S. Using ordinary least squares (OLS) based econometric models, this study captures the spatial dependence of passenger yield of nonhub airports, which tends to increase with a corresponding increase in distance to the nearest large hub airport. Nonhub airports surrounding large hub airports with higher passenger enplanements and higher average yields also have higher yields than other nonhub airports. In addition, this study finds the effect of Allegiant Airlines in lowering the average passenger yield of the nonhub airports served directly by the airline, which can be termed as ‘Allegiant Effect’. Findings of this study could provide valuable guidance for airlines to analyze network planning strategies and to identify future markets for growth and for policymakers when allocating resources to communities relying on these nonhub airports.     

Effects of investor tax heterogeneity on stock prices and trading behaviour around the ex-dividend day: the case of Australia

Using a sample of Australian stocks during the 1996–2014 period, this study examines how tax heterogeneity between domestic and foreign investors affects trading behaviour and stock prices around the ex-dividend day. Domestic investors prefer dividends and tend to buy stocks cum-dividend and sell them ex-dividend whereas foreign investors tend to trade in the opposite direction. Abnormal trading turnover increases with tax heterogeneity. Moreover, stocks with a larger domestic investor base are associated with a higher price drop-off ratio on the ex-dividend day and higher market value of franking credits. Overall, our findings support the dynamic dividend clientele hypothesis.     

Closeness matters. Spatial autocorrelation and relationship between socioeconomic indices and distance to departmental Colombian capitals

Socioeconomic indices that developing economies use to combat poverty may show a limited picture of all the variables related to the problem. This study analyzes spatial autocorrelation and clusters of three socioeconomic indices—living conditions, multidimensional poverty, and unsatisfied basic needs—in Colombia to explore the relation of the identified clusters with their physical distance from departmental capitals. Using a local index of spatial autocorrelation, it evaluates spatial patterns and the clustering of socioeconomic indices. Correlation analysis tests the relation between clusters and their distance from departmental capitals in three departments. The spatial patterns of indices in Colombia correspond to the model of economic development in the country and reveal the regions where socioeconomic characteristics form clusters of desirable/undesirable conditions and departments where the distance from main cities may be seen as a condition for a higher quality of life.     

劳动异质情况下的产业结构偏离及其影响因素分析——基于2006～2013年全国产业行业数据

本文充分考虑劳动异质性，利用产业人力资本结构，重新核算三次产业结构偏离度，发现第一产业和第三产业结构偏离程度均被高估，第二产业结构偏离被低估，进而指出“民工荒”、大学生就业难等现象产生的原因是第一产业可转出人力资本减少，第二产业需求旺盛，而第三产业由于发展不足陷入低水平均衡状态。最后通过系统的影响因素分析发现，解决我国结构偏离和就业问题的重点在于优化需求结构、合理规划产业发展路径以及全面推进城镇化和市场化进程，关键更在于释放农村消费市场巨大潜力和全面加快第三产业发展。     

Negotiating climate change responses: Regional and local perspectives on transport and coastal zone planning in South Sweden

Putting climate change policy-integration into practice is challenged by problems of institutional misfit, due to, inter alia, deficient vertical administrative interplay. While most focus within the field of climate change research has targeted the national–local interplay, less is known about the interface of regional and local perspectives. Here, the aim is to study that interface with a specific focus on the relation between regional and local spatial planning actors, through a case-study of transport and coastal zone management in a Swedish municipality. The article is based on interviews (focus group and single in-depth) and official planning documents. The material reveals a tricky planning situation, replete with conflict. In practice, various institutional frameworks, claims and ambitions collide. The attempts to steer the local spatial planning initiatives from the regional level led to conflicts, which in turn seems to have hampered the overall work for climate change management through spatial planning. Furthermore, there are few traces of prospects of a smooth vertical institutional interplay able to support the overall aims related to integrating climate change mitigation and adaptation in spatial planning.     

Implementing efficient conservation portfolio design

Modern tools for cost-effective conservation reserve site planning require the planner to have information about spatial distributions of conservation costs and benefits. Climate change creates unprecedented uncertainty about future land values and species habitat ranges, such that conservation scientists cannot map costs and benefits with certainty anymore. This paper contributes to the literature on the economics of conservation in the face of climate change uncertainty. It advances a new method for using modern portfolio theory to choose lands to protect that yield total conservation returns with less uncertainty. It explores the implications for portfolio recommendations of variation in the correlations between ecological and land-value responses to climate change. It also tests the robustness of the method to shortcuts that might be taken to simplify analysis, identifying problems that arise if conservation costs are ignored in portfolio analysis and demonstrating when portfolio recommendations are sensitive to how ecological benefits are quantified.     

PERSONALITY TRAITS AND THE PERCEPTION OF MACROECONOMIC INDICATORS: SURVEY EVIDENCE

I examine the determinants of both perceived inflation and unemployment in one single survey and include Big Five traits in the analysis. This is the first survey on this topic in Germany. My sample consists of 1771 students from different fields and levels. Using PhD students’ estimates as a reference, I create categories for underestimation and overestimation of both variables. Multinomial logit regressions show that females overestimate both variables. Education and news consumption reduce misestimation. A higher level of Neuroticism is related with a higher probability to overestimate unemployment. Overstating (understating) one indicator is associated with overstating (understating) the other.