This paper studies whether house prices reflect belief differences about climate change. We show that in an equilibrium model of housing choice in which agents derive utility from ownership in a ...neighborhood of similar agents, prices exhibit different elasticities to climate risk. We use comprehensive transaction data to relate prices to inundation projections of individual homes and measures of beliefs about climate change. We find that houses projected to be underwater in believer neighborhoods sell at a discount compared to houses in denier neighborhoods. Our results suggest that house prices reflect heterogeneity in beliefs about long-run climate change risks.
We analyze changes in unemployment, marginal labor force attachment, and participation in Canada and the United States using consistent measurement concepts. We show the importance for the ...comparative evolution of aggregate unemployment of changes in the fraction of those “wanting work”—the unemployed and marginally attached. We also study changes in the fraction of the nonemployed who are unemployed. Using micro data on labor market transition behavior at these margins, we find remarkably consistent results in the two countries, with the marginally attached displaying behavior lying between unemployment and nonattachment. The three nonemployment states are distinct in both countries.
Abstract
We study how the growth of exchange-traded funds (ETFs) affects the sensitivity of international capital flows to the global financial cycle. Using comprehensive fund-level data on investor ...flows, we show that their sensitivity to global financial conditions for equity (bond) ETFs is 2.5 (2.25) times higher than for equity (bond) mutual funds. This higher sensitivity can be directly linked to ETFs underlying shorter-trading-horizon clientele that trades more often in response to shocks. Using country-level data, we find that where ETFs hold a larger share of financial assets, equity inflows and prices become more sensitive to global risk.
Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.
Abstract
We develop a novel 10-K text-based model of product life cycles and examine firm investment policies. Conditioning on the life cycle substantially improves the power of q to explain ...investment and reveals a natural ordering of investments over the life cycle. While R&D and CAPX sensitivity are high early in the cycle, acquisitions arise as products mature, and divestitures and product extension investments arise as products decline. q-sensitivities that condition on the life cycle can vary by as much as 400% from traditional sensitivities. The life cycle framework further reveals an enriched relationship between competition, investment, and corporate profits.
Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.
We use a structural framework to interpret trends related to Black entrepreneurship, and infer how race-specific barriers faced by Black entrepreneurs have changed since the Great Recession. While ...all barriers declined consistently before the Recession, we find only the cost of starting a firm has declined since, relative to the cost faced by non-Black entrepreneurs. Since the Recession, Black entrepreneurs have experienced sharply increasing costs of employing labor and capital, and declining demand relative to other entrepreneurs. As a result, convergence in entrepreneurship rates has stalled.
It is commonly found that the markets for long-term government bonds of Economic and Monetary Union (EMU) countries were integrated prior to the EMU debt crisis. Contrasting this, we show, based on ...the interrelation between market integration and fractional cointegration, that there were periods of integration and disintegration that coincide with bull and bear market periods in the stock market. An econometric argument about the spectral behavior of long-memory time series leads to the conclusion that there is a stronger differentiation between bonds with different default risks. This implied the possibility of macroeconomic and fiscal divergence between the EMU countries before the crisis periods.
This paper presents the results of the analysis of scientific and technological development in Russia in the period between 1997 and 2017, based on the example of creation and application of ...technological innovations. The empirical study is methodologically based on “The main provisions for the concept of innovative industrialization in Russia” 1, 2. The best performing groups of organizations are identified in the following innovation segments: development of advanced production technologies; application of advanced production technologies; production of novel innovative products for specific markets. The performance is assessed based on the number of created and applied production technologies, the volume of manufactured innovative products and a comparative analysis of labor productivity performed for technologically innovative organizations and organizations that are not engaged in technological innovation.
There are two different forms of property tax systems: value-based tax, which is used in most countries of the world, and area-based tax, which is used mainly in Central and Eastern Europe and ...developing countries in Africa. Area-based property tax provides more stable and predictable budget revenues. It is simpler to administer and scores worse on equity grounds from the perspective of the ability-to-pay principle of taxation. Against this background, Israel's property tax system, known as Arnona, is complex, spatially diversified, and causes a lack of uniformity that leads to tax distortion. This paper's primary purpose is to identify the weaknesses of Israeli property tax from 1997 to 2017 and indicate how to improve the property tax system. This paper is based on case studies from four of the most important cities in Israel: Tel Aviv, Jerusalem, Haifa, and Beersheba, which have four different measurement methods for calculating property tax. Unique data were collected from the Israel Central Bureau of Statistics. According to this analysis, it was found that there are substantial differences in property tax between the four cities over the two decades analyzed. The main weakness is the lack of uniformity of the taxation system; the solution is to unify the measurement of real estate area for tax purposes using drone technology.
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