Found 97 article(s) for author 'Edward Glaeser'

Rule of Law and Female Entrepreneurship

Rule of Law and Female Entrepreneurship. Edward Glaeser, October 2019, Paper, “Commerce requires trust, but trust is difficult when one group consistently fears expropriation by another. If men have a comparative advantage at violence and there is little rule-of-law, then unequal bargaining power can lead women to segregate into low-return industries and avoid entrepreneurship altogether. In this paper, we present a model of female entrepreneurship and rule of law that predicts that women will only start businesses when they have both formal legal protection and informal bargaining power. The model’s predictions are supported both in cross-national data and with a new census of Zambian manufacturers. In Zambia, female entrepreneurs collaborate less, learn less from fellow entrepreneurs, earn less and segregate into industries with more women, but gender differences are ameliorated when women have access to adjudicating institutions, such as Lusaka’s “Market Chiefs” who are empowered to adjudicate small commercial disputes. We experimentally induce variation in local institutional quality in an adapted trust game, and find that this also reduces the gender gap in trust and economic activity.Link

Tags: , , , , ,

Should We All Be Living in Cities?

Should We All Be Living in Cities? Edward Glaeser, September 30, 2019, Audio, “Cities are an integral part of Earth’s future: by 2050, 68 percent of the world’s population will be living in an urban area. Solutions to social problems, from climate change to poverty, will therefore be tied to the fates of cities. In this episode, Glimp professor of economics Edward Glaeser explains why he is overwhelmingly optimistic about urban growth. Cities, he says, are engines of innovation and economic activity that create opportunity. “Humans,” he explains, “are a social species that gets smart by being around other smart people.” When they do, their impact on the planet’s climate is lessened in surprising ways—and in surprising places across the United States.Link

Tags: , , ,

Cities and Big Data

Cities and Big Data. Edward Glaeser, September 2019, Paper, “Historically, there has been a divide between urban economics and the physical aspects of the city itself. Social scientific research has been detached from subjects such as architecture and streetscapes. This lack of connection has been driven in part by a lack of data on the physical attributes of urban spaces. The “big data” revolution will change this. Big data turns a cross section of space into living data, offering a broader and finer picture of urban life than has ever been available before. Moreover, in combination with predictive algorithms, big data may allow us to extrapolate outcome variables such as house prices or income to previously unmeasured parts of a population. This policy brief showcases some examples of how big data can be used to develop cities.Link

Tags: , , , ,

Securing Property Rights

Securing Property Rights. Edward Glaeser, Andrei Shleifer, August 19, 2019, Paper, “A central challenge in securing property rights is the subversion of justice through legal skill, bribery, or physical force by the strong—the state or its powerful citizens—against the weak. We present evidence that undue influence on judges is a common concern in many countries, especially among the poor. We then present a model of a water polluter whose discharges contaminate adjacent land. If this polluter can subvert the assessment of damages caused by his activity, there is an efficiency case for granting the landowner the right to an injunction that stops the polluter, rather than the right to compensation for the harm. If the polluter can subvert even the determination of his responsibility for harm, there is an efficiency case for regulation that restricts pollution regardless of its effects. We then conduct an empirical analysis of water quality in the U.S. before and after the Clean Water Act, and show how regulation brought about cleaner water, particularly in states with higher corruption.Link

Tags: , , , , , ,

The Macroeconomic Implications of Housing Supply Restrictions

The Macroeconomic Implications of Housing Supply Restrictions. Edward Glaeser, June 15, 2019, Paper, “Housing supply restrictions, including historic preservation policies, minimum lot sizes and height limitations, are typically approached with static Pigouvian tools, but these policies also have dynamic implications. Restricted supply will typically make quantities, which determine construction employment, less volatile, and prices, which determine financial stability, more volatile. A prominent exception occurs when supply-unconstrained areas build so much during a boom that construction halts during the bust, and in that case, elastic supply can be associated with both price volatility and a limited ability to use credit instruments to boost employment during a bust. As institutions with counter-cyclical missions grapple with housing policies, they must recognize that housing regulation interacts with monetary policy, and that reforming housing policy may have implications for the business cycle.Link

Tags: , , , , ,

Urban management in the 21st century Ten insights from Professor Ed Glaeser

Urban management in the 21st century Ten insights from Professor Ed Glaeser. Edward Glaeser, June 2019, Paper, “In August 2018, CDE hosted Professor Ed Glaeser, the world’s leading urban economist and the Fred and Eleanor Glimp Professor of Economics in the Faculty of Arts and Sciences at Harvard University. He shared his critical insights based on vast experience during a series of seminars and engagements with leaders, policy makers and officials from the Johannesburg and Cape Town metro governments. To help improve the quality of South Africa’s discussion about cities’ vital role in growth and development, we are publishing here, in collaboration with Professor Glaeser, a summary of the key lessons that we drew from the questions he asked and the talks he gave.Link

Tags: , , , ,

The Spatial Mismatch Between Innovation and Joblessness

The Spatial Mismatch Between Innovation and Joblessness. Edward Glaeser, April 9, 2019, Paper, “American technological creativity is geographically concentrated in areas that are generally distant from the country’s most persistent pockets of joblessness. Should innovation policy attempt to engender more innovation is distressed areas? The primarily inventive parts of innovation policy, such as N.I.H. grants, can aid underperforming areas, possibly through health improvements that reduce the share of people on Disability Insurance, without any spatial reallocation. Moreover, since research funding is presumably already designed to maximize knowledge production, spatial reallocation may come at a considerable cost. The educational aspects of innovation policy, such as Pell Grants, work-study and Federal overhead reimbursement on grants, can reflect regional realities better and do more to encourage employment in distressed areas. Lifting the cap on H1B visas in poorer places can also enhance local human capital. Finally, there is particular scope for geographically targeted entrepreneurship policy, such as eliminating the barriers to new business formation near universities and in distressed places. Spatially targeted employment subsidies can also encourage more labor-intensive innovation in depressed areas.Link

Tags: , , , ,

Human-Capital Externalities in China

Human-Capital Externalities in China. Edward Glaeser, August 2018, Paper, “This paper provides evidences of heterogeneous human-capital externality using CHIP 2002, 2007 and 2013 data from urban China. After instrumenting city-level education using the number of relocated university departments across cities in the 1950s, one year more city-level education increases individual hourly wage by 22.0 percent, more than twice the OLS estimate. Human-capital externality is found to be greater for all groups of urban residents in the instrumental variable estimation.Link

Tags: , , , , , ,

Measuring Gentrification: Using Yelp Data to Quantify Neighborhood Change

Measuring Gentrification: Using Yelp Data to Quantify Neighborhood Change. Edward Glaeser, August 2018, Paper, “We demonstrate that data from digital platforms such as Yelp have the potential to improve our understanding of gentrification, both by providing data in close to real time (i.e. nowcasting and forecasting) and by providing additional context about how the local economy is changing. Combining Yelp and Census data, we find that gentrification, as measured by changes in the educational, age, and racial composition within a ZIP code, is strongly associated with increases in the numbers of grocery stores, cafes, restaurants, and bars, with little evidence of crowd-out of other categories of businesses. We also find that changes in the local business landscape is a leading indicator of housing price changes, and that the entry of Starbucks (and coffee shops more generally) into a neighborhood predicts gentrification. Each additional Starbucks that enters a zip code is associated with a 0.5% increase in housing prices.Link

Tags: , ,

The Role of Industry, Occupation, and Location-Specific Knowledge in the Survival of New Firms

The Role of Industry, Occupation, and Location-Specific Knowledge in the Survival of New Firms. Edward Glaeser, July 2018, Paper, “How do regions acquire the knowledge they need to diversify their economic activities? How does the migration of workers among firms and industries contribute to the diffusion of that knowledge? Here we measure the industry, occupation, and location specific knowledge carried by workers from one establishment to the next using a dataset summarizing the individual work history for an entire country. We study pioneer firms-firms operating in an industry that was not present in a region-because the success of pioneers is the basic unit of regional economic diversification. We find that the growth and survival of pioneers increase significantly when their first hires are workers with experience in a related industry, and with work experience in the same location, but not with past experience in a related occupation.Link

Tags: , , ,