Essays on the Empirical Analysis of Economic and Political Development in Sub-Saharan Africa

In Sub-Saharan Africa, non-democratic events, like civil wars and coup d'etat, destroy economic development. This study investigates both domestic and spatial effects on the likelihood of civil wars and coup d'etat. To civil wars, an increase of income growth is one of common research conclusions to stop wars. This study adds a concern on ethnic fractionalization. IV-2SLS is applied to overcome causality problem. The findings document that income growth is significant to reduce number and degree of violence in high ethnic fractionalized countries, otherwise they are trade-off. Income growth reduces amount of wars, but increases its violent level, in the countries with few large ethnic groups. Promoting growth should consider ethnic composition. This study also investigates the clustering and contagion of civil wars using spatial panel data models. Onset, incidence and end of civil conflicts spread across the network of neighboring countries while peace, the end of conflicts, diffuse only with the nearest neighbor. There is an evidence of indirect links from neighboring income growth, without too much inequality, to reduce the likelihood of civil wars. To coup d'etat, this study revisits its diffusion for both all types of coups and only successful ones. The results find an existence of both domestic and spatial determinants in different periods. Domestic income growth plays major role to reduce the likelihood of coup before cold war ends, while spatial effects do negative afterward. Results on probability to succeed coup are similar. After cold war ends, international organisations seriously promote democracy with pressure against coup d'etat, and it seems to be effective. In sum, this study indicates the role of domestic ethnic fractionalization and the spread of neighboring effects to the likelihood of non-democratic events in a country. Policy implementation should concern these factors.

Shareholder protection and stock market development

The dissertation contains five parts: An introduction, three major chapters, and a short conclusion. The First Chapter starts from a survey and discussion of the studies on corporate law and financial development literature. The commonly used methods in these cross-sectional analyses are biased as legal origins are no longer valid instruments. Hence, the model uncertainty becomes a salient problem. The Bayesian Model Averaging algorithm is applied to test the robustness of empirical results in Djankov et al. (2008). The analysis finds that their constructed legal index is not robustly correlated with most of the various stock market outcome variables. The second Chapter looks into the effects of minority shareholders protection in corporate governance regime on entrepreneurs' ex ante incentives to undertake IPO. Most of the current literature focuses on the beneficial part of minority shareholder protection on valuation, while overlooks its private costs on entrepreneur's control. As a result, the entrepreneur trade-offs the costs of monitoring with the benefits of cheap sources of finance when minority shareholder protection improves. The theoretical predictions are empirically tested using panel data and GMM-sys estimator. The third Chapter investigates the corporate law and corporate governance reform in China. The corporate law in China regards shareholder control as the means to the ends of pursuing the interests of stakeholders, which is inefficient. The Chapter combines the recent development of theories of the firm, i.e., the team production theory and the property rights theory, to solve such problem. The enlightened shareholder value, which emphasizes on the long term valuation of the firm, should be adopted as objectives of listed firms. In addition, a move from the mandatory division of power between shareholder meeting and board meeting to the default regime, is proposed.

Topics in Local Economic Development

This thesis contributes to the current debate in literature about local economic development by considering two different topics: quality of institutions, and the role of clusters in innovation and productivity growth. The research is built upon three papers. The first paper deals with the analysis of the effect of administrative continuity on administrative efficiency. The analysis underlines the importance of different typologies of social capital. Findings reveal a positive impact on administrative efficiency (AE) by administrative continuity (AC) when it is coupled by bridging and linking social capital. On the contrary, bonding social capital influences negatively the effect by AC on AE. The second paper investigates the spatial interaction in levels of quality of government (QoG) among European regions. Notwithstanding the largely recognised role by institutions in the design of regional policies, no study has been conducted about the mechanisms of interaction and diffusion of QoG at regional level. This research wants to overcome this knowledge gap in literature. Findings reveal a heterogeneity in spatial interaction among groups of regions, i.e. ‘leader regions’ (Northern regions) and ‘lagging regions’ (Southern regions), when considering different mechanisms of interaction (learning / imitating competition and pure competition). Moreover, the effect of wealth on the levels of QoG is nonlinear. Finally, the third paper analyses the relation among specialization and productivity within the agricultural sector. In literature, the study of clusters dynamics has long neglected agriculture. The analysis describes the changes in sectorial specialization for eight main crop groups in Italian regions (NUTS 3), assessing the existence of spatial autocorrelations by using an exploratory data analysis. Furthermore, the effect of specialization on productivity is analysed within the main crop groups using a spatial panel data model. Findings reveal a marked tendency to specialization in the Italian agriculture, and a heterogeneous effect by specialization on productivity.

Why do Municipalities Recycle?

The disposal of municipal solid waste is believed to emit foul odor, threaten groundwater, and increase road congestion. As remote regional landfills have replaced local town dumps, these costs are no longer internalized by garbage-producing households or their municipalities. Instead, rural property owners located adjacent to large regional landfills and along the roadways accessing those landfills bear the external costs of garbage disposal. This paper uses a comprehensive nine-year panel data set of aggregated state data to empirically examine why 8,937 municipalities continue to operate costly recycling programs designed to reduce the external costs of garbage disposal. Results suggest that local tastes for recycling drive municipal decisions. If household preferences for recycling are short lived, then we can expect a future decrease in the number of municipal recycling programs. Recent data indicate the number of recycling programs in operation in the U.S. has indeed fallen.

The Effects of Interstate Speed Limit Increases: Fatality Rates and Traffic Diversion Versus Speed Spillover

This thesis examines two panel data sets of 48 states from 1981 to 2009 and utilizes ordinary least squares (OLS) and fixed effects models to explore the relationship between rural Interstate speed limits and fatality rates and whether rural Interstate speed limits affect non-Interstate safety. Models provide evidence that rural Interstate speed limits higher than 55 MPH lead to higher fatality rates on rural Interstates though this effect is somewhat tempered by reductions in fatality rates for roads other than rural Interstates. These results provide some but not unanimous support for the traffic diversion hypothesis that rural Interstate speed limit increases lead to decreases in fatality rates of other roads. To the author’s knowledge, this paper is the first econometric study to differentiate between the effects of 70 MPH speed limits and speed limits above 70 MPH on fatality rates using a multi-state data set. Considering both rural Interstates and other roads, rural Interstate speed limit increases above 55 MPH are responsible for 39,700 net fatalities, 4.1 percent of total fatalities from 1987, the year limits were first raised, to 2009.

The Returns to Migration: The Influence of Education and Migration Type

We show the impact of migration type on real wages over time. We create a migration and earnings history from the National Longitudinal Survey of Youth over the period 1979-2002. We estimate the effects of primary, onward, and two types of return migration on real wages using a panel data model with individual, location, and time fixed effects. Panel data are well suited for the study of the returns to U.S. internal migration because the influence of migration on wages has been found to occur years after the event. We differentiate return migration into two types: return to a location with ties that form a geographical anchor (home) and return to a prior place of work. We find that real wage growth varies by migration type. Education attainment is a significant factor in real wage growth. Our results show that onward migration is an important channel by which the monetary rewards to a college education are manifested.

Gender differences at the transition to higher education between migrants and non-migrants: A comparison between Switzerland and France

Within Western societies women or girls meanwhile outperform men or boys with regard to attainments in primary and secondary education. For example concerning upper secondary degrees the share of females attaining the Matura approaches two thirds in Switzerland, while the share of females attaining the Baccalaureate exceeds fifty per cent in France. However, if transitions to higher education are regarded, the share of entitled females entering such institutions is significantly lower than among men in Switzerland. An opposite pattern is observed in France where females outperform men at this educational stage, too. With regard to migrant background, it has been shown by previous research focussing on secondary effects of ethnic origin that such youths enter the more demanding educational tracks (e.g. higher education) more often than their non-migrant peers if controlled for eligibility, their lower socioeconomic status and performances. However, so far only a few studies refer to the question of a possible gender gap regarding secondary effects of ethnic origin (e.g. Fleischmann et al., mimeo). Thus, with regard to a possible interaction of a migrant background and - for example - a female gender, it is important to note that in both countries many migrant groups have their origins in countries and regions where male advantage remains very strong. This is in particular the case for migrant groups from non-Western countries, e.g. Turkey, Algeria, Marocco or Tunisie, where gender gaps in the literacy rates of up to 18 per cent are still observed. In order to investigate the question of a possible disadvantages of women with a migrant background stemming from such countries when compared to non-migrant females two panel studies - the Tree data in Switzerland and the Panel d’élèves 1995 in France -, are analysed.

Assessing the Potential of Multiple Imputation in Sequence Analysis

Sequence analysis and optimal matching are useful heuristic tools for the descriptive analysis of heterogeneous individual pathways such as educational careers, job sequences or patterns of family formation. However, to date it remains unclear how to handle the inevitable problems caused by missing values with regard to such analysis. Multiple Imputation (MI) offers a possible solution for this problem but it has not been tested in the context of sequence analysis. Against this background, we contribute to the literature by assessing the potential of MI in the context of sequence analyses using an empirical example. Methodologically, we draw upon the work of Brendan Halpin and extend it to additional types of missing value patterns. Our empirical case is a sequence analysis of panel data with substantial attrition that examines the typical patterns and the persistence of sex segregation in school-to-work transitions in Switzerland. The preliminary results indicate that MI is a valuable methodology for handling missing values due to panel mortality in the context of sequence analysis. MI is especially useful in facilitating a sound interpretation of the resulting sequence types.

Consistent estimation of the fixed effects ordered logit model

The paper considers panel data methods for estimating ordered logit models with individual-specific correlated unobserved heterogeneity. We show that a popular approach is inconsistent, whereas some consistent and efficient estimators are available, including minimum distance and generalized method-of-moment estimators. A Monte Carlo study reveals the good properties of an alternative estimator that has not been considered in econometric applications before, is simple to implement and almost as efficient. An illustrative application based on data from the German Socio-Economic Panel confirms the large negative effect of unemployment on life satisfaction that has been found in the previous literature.

Educational Systems and Gender Segregation in Education: A Three-Country Comparison of Germany, Norway and Canada

How do institutional settings and their embedded policy principles affect gender-typed enrolment in educational programmes? Based on gender-sensitive theories on career choice, we hypothesised that gender segregation in education is higher with a wider range of offers of vocational programmes. By analysing youth survey and panel data, we tested this assumption for Germany, Norway and Canada, three countries whose educational systems represent a different mix of academic, vocational and universalistic education principles. We found that vocational programmes are considerably more gender-segregated than are academic (e.g. university) programmes. Men, more so than women, can avoid gender-typed programmes by passing on to a university education. This in turn means that as long as their secondary school achievement does not allow for a higher education career, they have a higher likelihood of being allocated to male-typed programmes in the vocational education and training (VET) system. In addition, social background and the age at which students have to choose educational offers impact on the transition to gendered educational programmes. Overall, gender segregation in education is highest in Germany and the lowest in Canada. We interpret the differences between these countries with respect to the constellations of educational principles and policies in the respective countries.

Geschlechtsspezifische Berufswünsche und Ausbildungsentscheidungen

Dass es geschlechtstypische Berufe gibt, und dass die Berufsaspirationen und die Wahl der Berufsausbildung nach der Pflichtschulzeit zwischen den Geschlechtern deutlich differieren, ist eine vielfach empirisch belegte Tatsache. Diese geschlechtstypische Segregation bei der Berufswahl und der zum ausgewählten Beruf führenden schulischen und beruflichen Ausbildung wird bei der Erklärung oftmals (pauschal) auf die geschlechtsspezifische Sozialisation und darin vermittelte Geschlechterstereotype zurückgeführt. Im vorliegenden Beitrag werden aus strukturell-individualistischer Sicht Mechanismen der geschlechtstypischen Berufsaspiration und Berufsbildungsentscheidung beschrieben, die theoriegeleitet empirisch aufgedeckt werden sollen. Für die Analysen werden Daten der drei Wellen des DAB-Panels verwendet, die für die Deutschschweiz Informationen von 203 Schulklassen mit rund 3.300 Schülerinnen und Schüler zur Verfügung stellen. Mittels dieser Paneldaten wird für Jugendliche der Deutschschweiz gezeigt, dass der sozioökonomische Status des Elternhauses, das damit einhergehende Motiv des intergenerationalen Statuserhalts sowie der Lebenslaufplanungen wichtige Beiträge zur Erklärung der Segregation der Berufswahl nach Geschlecht liefern. Diese mit dem Sozialstatus des Elternhauses verbundenen Mechanismen sind weitaus einflussreicher als die geschlechtsspezifische Sozialisation.

Qualifikationsnachfrage und Arbeitsmarkteintritt in der Schweiz: Arbeit im erlernten Beruf, Berufswechsel oder Arbeitslosigkeit

Berufsorientierte Bildungssysteme sind auf die Vermittlung von spezialisierten beruflichen Qualifikationen ausgelegt. Werden diese nach Abschluss einer beruflichen Grundbildung auf dem Arbeitsmarkt wenig nachgefragt, riskieren die Absolventen, die erworbenen berufsspezifischen Qualifikationen nicht verwerten zu können. Dies trifft nicht nur zu, wenn Arbeitsmarkteinsteiger arbeitslos werden, sondern auch, wenn sie den Beruf wechseln müssen. Für die drei verschiedenen Optionen des Arbeitsmarkteinstiegs – Arbeit im erlernten Beruf, Berufswechsel und Arbeitslosigkeit – wird erstens untersucht, welche Bedeutung das individuell passende und das fachfremde Stellenangebot hat. Zweitens wird analysiert, wie eine unterschiedlich ausgeprägte Nachfrage nach fachspezifischen Qualifikationen die Bedeutung ausbildungsbezogener und individueller Merkmale für den Berufseinstieg verändert. Die Schweiz mit ihrem berufsorientierten Bildungssystem und berufsfachlich segmentieren Arbeitsmarkt dient als empirische Referenz. Die multinominalen logistischen Regressionsmodelle basieren auf den Daten des Schweizer Jugendpanels PISA2000/TREE. Die Individualdaten von Lehrabgänger werden auf Berufsebene, zeitpunkt- und regionsspezifisch mit dem individuell passenden und fachfremden Stellenangebot verknüpft, das auf den Stelleninseratendaten des Stellenmarktmonitors Schweiz (SMM) beruht. Dank dieser Verknüpfung von Angebot und Nachfrage nach beruflichen Qualifikationen auf der Mikroebene kann zum ersten Mal die grundlegende Bedeutung der Personalnachfrage für den Berufseinstieg nachgewiesen werden.

Property Condition Disclosure Law: Does 'Seller Tell All' Matter in Property Values?

At the time when at least two-thirds of the US states have already mandated some form of seller's property condition disclosure statement and there is a movement in this direction nationally, this paper examines the impact of seller's property condition disclosure law on the residential real estate values, the information asymmetry in housing transactions and shift of risk from buyers and brokers to the sellers, and attempts to ascertain the factors that lead to adoption of the disclosur law. The analytical structure employs parametric panel data models, semi-parametric propensity score matching models, and an event study framework using a unique set of economic and institutional attributes for a quarterly panel of 291 US Metropolitan Statistical Areas (MSAs) and 50 US States spanning 21 years from 1984 to 2004. Exploiting the MSA level variation in house prices, the study finds that the average seller may be able to fetch a higher price (about three to four percent) for the house if she furnishes a state-mandated seller's property condition disclosure statement to the buyer.

Cost Improvements, Returns to Scale, and Cost Inefficiencies for Real Estate Investment Trusts

This paper extends the existing research on real estate investment trust (REIT) operating efficiencies. We estimate stochastic-frontier, panel-data models specifying a translog cost function. The specified model updates the cost frontier with new information as it becomes available over time. The model can identify frontier cost improvements, returns to scale, and cost inefficiencies over time. The results disagree with most previous research in that we find no evidence of scale economies and some evidence of scale diseconomies. Moreover, we also generally find smaller inefficiencies than those shown by other REIT studies. Contrary to previous research, higher leverage associates with more efficiency.