This paper analyses the relationship between road infrastructure improvements and investment in capital assets. Using aggregate data at a provincial level for 1977-2008, an equation for machinery and equipment investment is estimated applying Panel Corrected Standard Errors. The results indicate that the long-term elasticities of investment in relation to market potential, GDP and average years of schooling are 0.90, 0.75 and 0.80, respectively. Additionally, the long run impact of a road infrastructure investment policy is assessed. We find that the elasticities of investment in machinery and equipment, capital stock and GDP in relation to travel time are 1.18, 0.33 and 0.11, respectively.
Ruíz, A. (GEAP, XREAP), Matas, A. (GEAP, XREAP), Raymond, J. Ll. (GEAP, XREAP)
We show how data collected from a GPS device can be incorporated in motor insurance ratemaking. The calculation of premium rates based upon driver behaviour represents an opportunity for the insurance sector. Our approach is based on count data regression models for frequency, where exposure is driven by the distance travelled and additional parameters that capture characteristics of automobile usage and which may affect claiming behaviour. We propose implementing a classical frequency model that is updated with telemetrics information. We illustrate the method using real data from usage-based insurance policies. Results show that not only the distance travelled by the driver, but also driver habits, significantly influence the expected number of accidents and, hence, the cost of insurance coverage. Telemetry should facilitate the inclusion within insurance pricing of those factors that traffic authorities identify as being associated with risky drivers, including, for example, traffic violations.
Ayuso, M. (Riskcenter, XREAP); Guillén, M. (Riskcenter, XREAP); Nielsen, J. P.
Tourism is a highly dynamic sector. An example of this is the boom that cruise tourism has seen in recent years, leading many countries to consider cruises a key product in their development of tourism. The Port of Barcelona has become the leading cruise port in the Mediterranean area (2.4 million cruise passengers in 2014), highlighting its role as both a port of call and a homeport. Such leadership is explained by the conjunction of several factors: its strategic geographical position, its high quality port and transportation infrastructures, and the attractiveness of the city of Barcelona itself, for both its cultural and artistic heritage and its leisure and shopping opportunities.
This article quantifies the local and regional economic impact generated by cruise activity in the Port of Barcelona. Using input-output methodology, its overall impact is computed for the year 2014 as the sum of three partial impacts: direct effect, indirect effect and induced effect. This article is pioneering at the European level, in combining different issues: estimating the impact of the Barcelona Cruise Port activity, presenting these impacts disaggregated at a sectoral level, using a rigorous methodology and carrying out extensive fieldwork. The estimated impacts demonstrate that all sectors, not just traditional tourism-related sectors, benefit from cruise tourism.
Despite the significant economic benefits that cruise activity has generated over the whole Catalan economy, it is important to note that such activity also generates negative externalities associated with congestion and environmental issues. The reduction of these negative effects is one of the major challenges in making the development of cruise tourism sustainable in a city like Barcelona.
Vayá, E. (AQR-IREA, XREAP), García, J. R. (AQR-IREA, XREAP), Murillo, J. ( (AQR-IREA, XREAP), Romaní, J. (AQR-IREA, XREAP), Suriñach, J. (AQR-IREA, XREAP)
Recent evidence reveals that transportation’s improvements within metropolitan areas have a clear effect on population and job decentralization processes. Yet, very little has been said on how these improvements affect the spatial organization of the economic activity in the suburbs. This paper analyses the effects of transportation’s changes on employment subcenters formation. Using data from metropolitan Paris between 1968 and 2010, we first show that
rail network improvements cause the expected job decentralization by attracting jobs to suburban municipalities. Our main contribution is to show that the new rail transit clearly affects the spatial organization of employment through the number and size of the employment subcenters: not only does the presence of a rail station increase the probability of a suburban municipality of belonging to a subcenter by 5 to 10 %, but a 10 % increase in municipality proximity to a suburban station is found to increase its chance to be part of a subcenter by 3 to 5 %.
Garcia-López, M. A. (IEB, XREAP), Hemet, C.,Viladecans-Marsal, E. (IEB, XREAP)
This paper quantifies the impact of public employment on local labor markets in the long-run. We adopt two quantitative approaches and apply them to the case of Spanish cities. In the first, we develop a 3-sector (public, tradable and non-tradable) search and matching model embedded within a spatial equilibrium model. We characterize the steady state of the model, which we calibrate to match the labor market characteristics of the average Spanish city. The model is then used to simulate the local labor market effects of expanding public sector employment. In the second empirical approach, we use regression analysis to estimate the effects of public sector job expansions on decadal changes (1980-1990 and 1990-2001) in the employment and population of Spanish cities. This analysis exploits the dramatic expansion of public employment that followed the advent of democracy in the period 1980 to 2001. The instrumental variables’ approach thatwe adopt uses the capital status of cities to instrument for changes in public sector employment. The two empirical approaches yield qualitatively similar results and, thus, cross-check each other. One additional public sector job creates about 1.3 jobs in the private sector. However, these new jobs do not translate into a substantial reduction in the local unemployment rate as better labor market conditions attract new workers to the city. Increasing public employment by 50% only reduces unemployment from 0.156 to 0.150.
Jofre-Monseny, J. (IEB, XREAP), Silva, J. I., Vázquez-Grenno, J. (IEB, XREAP)
This paper implements both stochastic production and cost frontier analyses to estimate the efficiency of toll motorway companies in Spain, the country with the largest number of private concessionaires in this economic sector. Our dataset includes 32 concessionaires with different features for a time span of 26 years (1988-2014). The results support the existence of scale and density economies, showing that an increase in vehicle-kilometers is more important for cost efficiency than extending the motorway. The differences between transient and persistent efficiency are significant, so that we can test for regulatory and ownership differences. The price cap regulation seems to increase management technical efficiency. Regional governments grant better projects than central governments and, as shareholders, they also perform better. However, their performance is not significantly differently from that of full private concessionaires. We also find limited evidence of efficiency gains from privatization. These results help us provide new insights to evaluate policy and regulatory reforms aimed at enhancing technical efficiency in the sector.
Albalate, D. (GiM-IREA, XREAP), Rosell, J. (GiM-IREA, XREAP)
This paper discusses the determinants of two alternative measures of innovative success/output by looking at firm’s innovation strategies. These relationships are also discussed by distinguishing between firms belonging to manufacturing and services sectors.Our econometric analysis is based on an extensive sample of 3,919 firms taken from the Spanish Technological Innovation Panel (PITEC) for the period 2008–2012. Alongside the empirical analysis we applied a two-step procedure. We first identified a diverse range of innovation strategies by applying a principal component analysis (absence, mixed and oriented). Then, after controlling for positive skewness of the dependent variables, we used a generalized linear model (GLM) to examine the impact of these strategies. Our empirical results have some interesting aspects. Firstly, firms that do not design innovation strategies have a lower probability of being a successful innovative firm. Secondly, firms that design a strategy, but one that is not oriented on any specific direction, are prone to achieving lower success rates than firms with an oriented strategy. Finally, the results also show that there is a good fit between the oriented strategy pursued by a firm and its innovation success.
Jové-Llopis, E. (GRIT, XREAP); Segarra, A. (GRIT, XREAP)
Theoretical and empirical approaches have stressed the existence of financial constraints in firms’ innovative activities. Although a large number of innovation projects are abandoned before their completion, the empirical evidence has focused on the determinants of innovation while failed projects have received little attention. This paper analyses the role of financial obstacles on the likelihood of abandoning an innovation project by using panel data of potential innovative Spanish firms for the period 2005–2013. Our analysis differentiates between internal and external barriers on the probability of abandoning a project and we examine whether the effects are different depending on the stage of the innovation process. Controlling for potential endogeneity, we use a bivariate probit model to take into account the simultaneity of financial constraints and the decision to abandon an innovation project. Our results show that financial constraints most affect the probability of abandoning an innovation project during the concept stage.
García-Quevedo, J. (IEB, XREAP); Segarra, A. (GRIT, XREAP); Teruel, M. (GRIT, XREAP)
En este trabajo se estudia el efecto de la dependencia entre dos subcarteras en el requerimiento de capital obligatorio (SCR) por primas y reservas en una cartera de seguros no vida. Para ello, la dependencia se establece entre el número de siniestros de cada subcartera, que se modeliza mediante un choque común. A continuación, se plantean diversas opciones para el cálculo de la distribución del coste total en la cartera agregada, obteniéndose fórmulas explícitas en algunos casos. Finalmente, se incluye una aplicación práctica a partir de datos de una cartera real de seguros de automóviles.
Castañer, A. (CREB, XREAP); Claramunt, M M. (CREB, XREAP); Tadeo, A.; Varea, J. (CREB, XREAP)
The Korean government has struggled against the proliferation of private tutoring for more than four decades. In 2006, state education authorities imposed a restriction on operating hours of hagwon (private tutoring academies or cram schools) in an attempt at reducing the economic and time resources spent on private tutoring. Since then, some provincial authorities have modified the curfew on hagwon. We take advantage of these policy shifts to identify average treatment effects taking a difference-in-differences approach. Our findings suggest that enforcing the curfew did not generate a significant reduction in the hours and resources spent on private tutoring, our results being heterogeneous by school level and socioeconomic status. Demand for private tutoring seems to be especially inelastic for high school students, who increased their consumption of alternative forms of private tutoring. As the consumption of private tutoring is positively correlated with academic performance and socioeconomic status, the curfew may have a negative effect on the equality of educational opportunities.
Choi, H. (AQR); Choi, A. (IEB)