Found 80 article(s) for author 'Edward Glaeser'

Infrastructure, Incentives and Institutions

Infrastructure, Incentives and Institutions. Edward Glaeser, January 2016, Paper. “Cities generate negative, as well as positive, externalities; addressing those externalities requires both infrastructure and institutions. Providing clean water and removing refuse requires water and sewer pipes, but the urban poor are often unwilling to pay for the costs of that piping. Standard welfare economics teaches us that either subsidies or Pigouvian fines can solve that problem, but both solution are problematic when institutions are weak. Subsidies lead to waste and corruption; fines lead to extortion of the innocent. Zambia has attempted to solve its problem with subsidies alone, but the subsidies have been too small to solve the “last-mile problem” and so most poor households remain unconnected to the water and sewer system. In nineteenth-century New York, subsidies also proved insufficient and were largely replaced by a penalty-based system … Link

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Cities Need To Encourage Entrepreneurship, Not Class Warfare

Cities Need To Encourage Entrepreneurship, Not Class Warfare. Edward Glaeser, December 1, 2015, Opinion. “Urban America’s problems of poverty and joblessness are real. Progressives have been elected to address those problems, but their simple big-government solutions — updated but essentially the same as those tried in the past — are almost sure to fail. We need a more forward-looking urban-policy approach.  While many agree that entrepreneurship is good for cities and their residents, little consensus exists about what policymakers can do to promote it, especially in high-poverty areas. Public loans or loan guarantees for entrepreneurs are the most commonly applied policies. Unfortunately, we have no examples of truly randomized lending, which is what would be necessary in order to evaluate whether the government loan programs worked. Absent such experiments, the best we can do is compare companies that received such aid with similar firms that didn’t, and see how they fared …” Link

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Urban Networks: Connecting Markets, People, and Ideas

Urban Networks: Connecting Markets, People, and Ideas. Edward Glaeser, December 2015, Paper. “Should China build mega-cities or a network of linked middle-sized metropolises? Can Europe’s mid-sized cities compete with global agglomeration by forging stronger inter-urban links? This paper examines these questions within a model of recombinant growth and endogenous local amenities. Three primary factors determine the trade-off between networks and big cities: local returns to scale in innovation, the elasticity of housing supply, and the importance of local amenities. Even if there are global increasing returns…Link

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Reviving Economic Growth: Policy Proposals from 51 Leading Experts

Reviving Economic Growth: Policy Proposals from 51 Leading Experts. Edward Glaeser, 2015, Book Chapter. “If you could wave a magic wand and make one or two policy or institutional changes to brighten the U.S. economy’s long-term growth prospects, what would you change and why? That was the question asked to the 51 contributors to this volume. These essays originally appeared in conjunction with a conference on the future of U.S. economic growth held at the Cato Institute in December 2014…Link

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Encourage Enterprise, Empower Cities: The Promise of Entrepreneurship Zones

Encourage Enterprise, Empower Cities: The Promise of Entrepreneurship Zones. Edward Glaeser, 2015, Book Chapter (starting on p.41). “Can cities be pro-poor as well as pro-business? Many popular progressive policies, such as raising taxes on rich urbanites, are likely to send successful entrepreneurs to some other locale. This essay argues that entrepreneurship districts located in high-poverty areas may encourage economic success among the less fortunate in a way that lifts up the entire city. Three decades ago, Sir Peter Hall persuaded Margaret Thatcher…” Link

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Urban Networks: Spreading the Flow of Goods, People, and Ideas

Urban Networks: Spreading the Flow of Goods, People, and Ideas. Edward Glaeser, September 7, 2015, Paper. “Should China build mega-cities or a network of linked middle-sized metropolises? Can Europe’s mid-sized cities compete with global agglomeration by forging stronger inter-urban links? This paper examines these questions within a model of recombinant growth and endogenous local amenities. Three primary factors determine the trade-off’s between networks and big cities: local returns to scale in innovation, the elasticity of housing supply, and the importance of local amenities…Link

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An Extrapolative Model of House Price Dynamics

An Extrapolative Model of House Price Dynamics. Edward Glaeser, March 2015, Paper. “A modest approximation by homebuyers leads house prices to display three features that are present in the data but usually missing from perfectly rational models: momentum at one-year horizons, mean reversion at five-year horizons, and excess longer-term volatility relative to fundamentals. Valuing a house involves forecasting the current and future demand to live in the surrounding area. Buyers forecast using past transaction prices. Approximating buyers do not adjust for the expectations of past buyers, and instead assume that past prices reflect only contemporaneous demand, as with a capitalization rate formula…”  Link

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An Extrapolative Model of House Price Dynamics

An Extrapolative Model of House Price Dynamics. Edward Glaeser, March 2015, Paper. “A modest approximation by homebuyers leads house prices to display three attributes that are present in the data but usually missing from perfectly rational models of housing dynamics: momentum at one-year horizons, mean reversion at five-year horizons, and excess longer-term volatility relative to fundamentals. Valuing a house involves forecasting the current and future demand to live in the surrounding area. Buyers forecast using the history of transaction prices. Approximating buyers do not adjust for the expectations of past buyers, and instead assume…Link

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Maximising happiness does not maximise welfare

Maximising happiness does not maximise welfare, Edward Glaeser, October 15, 2014, Opinion. “Governments are now measuring happiness, or subjective wellbeing, and some have begun trying to maximise it. This column discusses recent research showing that happiness is not the same thing as utility. The choices people make suggest that they have desires and objectives other than happiness. It is therefore possible to make people worse off while increasing their reported subjective wellbeing…” Link

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Preserving History or Hindering Growth? The Heterogeneous Effects of Historic Districts on Local Housing Markets in New York City

Preserving History or Hindering Growth? The Heterogeneous Effects of Historic Districts on Local Housing Markets in New York City. Edward Glaeser, September 2014, Paper. “Since Brooklyn Heights was designated as New York City’s first landmarked neighborhood in 1965, the Landmarks Preservation Commission has designated 120 historic neighborhoods in the city. This paper develops a theory of heterogeneous impacts across neighborhoods and exploits variation in the timing of historic district designations in New York City to identify the effects of preservation policies on residential property markets. We combine an extensive…” Link

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