Brookings-Wharton Papers on Urban Affairs 2009 by Gary Burtless, Janet Rothenberg Pack

By Gary Burtless, Janet Rothenberg Pack

Designed to arrive a large viewers of students and policymakers, the Brookings-Wharton Papers on city Affairs is an annual sequence that serves as a discussion board for state-of-the-art, available examine on city coverage. The editors search to combine broader learn into the city coverage dialogue via bringing city reviews students including economists and researchers learning topics with very important city implications.In this factor, papers research a number concerns which are correct to city economics: —the results of task situation in an city zone on residential selection styles —the influence of race, ethnicity, and gender on loan lending —the results of city features at the improvement of latest patentsThe quantity additionally includes 3 papers on city improvement open air of the USA: —urban sprawl in Europe —rural-to-urban migration styles in Brazil —location styles of agglomeration throughout eastern towns

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The views expressed are those of the authors and do not necessarily reflect the views of the Federal Reserve Bank of New York or the Federal Reserve System. 33 34 Brookings-Wharton Papers on Urban Affairs: 2009 Gabriel, and Wooley (1991) argued that minorities still face reduced access to conventional lending markets. Recent studies of consumer loans have amplified concerns that minorities still face disparate treatment when applying for credit. For example, Charles, Hurst, and Stephens (2008) showed that blacks pay appreciably higher rates than other borrowers when financing a new car.

Or to put it another way, we are not estimating a structural model linking household and firm location decisions to preferences and technology. For an example of such a structural estimation, see Kopecky and Suen (2009). Leah Platt Boustan and Robert A. Margo 13 their place of residence. However, we cannot directly rule out an alternative model: individuals choose their residential location for other reasons—for example, because of amenities or proximity to family—and then select a job that maximizes wages net of commuting costs conditional on their place of residence.

In columns 1 and 2 we report coefficients for the main effects of being a state worker in the capital city along with the interaction with the demographic variable in question. Column 3 reports the parallel IV regression in which the main effect of being a state worker in the capital city is used to instrument for working in the central city. The rows report coefficients on being a state worker in a capital city (or working in the central city) and the interaction with the relevant demographic variable.

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