NYU – Trade Day #1
NYU Stern School of Business
40 West 4th Street
Room: T201 (Tisch Hall)
New York, NY 10012
| 11:45 AM – 1:00 PM |
Lunch Break
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| 1:00 PM – 2:00 PM |
 Marco Gonzalez-Navarro (University of California, Berkely)
Title: “Immigration and Slums“
Joint with
Raimundo Undurraga(Universidad de Chile)
Paperlink
Abstract: South-South international migration is an increasingly important phe- nomenon, yet we know little about its impact on housing dynamics in developing country cities, where informal housing supply in the form of slums is a key consid- eration. This paper investigates the causal effect of international immigration on slum formation and growth in Chile, a country that experienced a fourfold increase in immigration in the past decade. To do this, we create a unique panel dataset with information on all slums in Chile as well as the universe of international immi- grants and their destination municipalities. Using both a high-frequency within-slum analysis as well as a long-difference shift-share instrumental variable approach at the municipal level, we find a robust positive relationship between international immigration and slum creation and growth. This is evident from observed incre- ments in the number of slums, the population residing in slums (both native and migrant), and the expansion of slum footprints. Notably, international immigration can account for all of the observed slum expansion in the study period. We further provide evidence of the important role that the market for affordable housing plays in mediating the relationship between immigration and slums. The surge in demand for housing, unmet by a concomitant increase in affordable housing supply, resulted in increases in rental prices, which in turn compelled low-income households to seek accommodation in informal slum settlements. Consistent with the housing market mechanism, the effects of immigration on slums are stronger in more rugged municipalities, where we show housing supply elasticities are also lower. Alternative mechanisms such as immigration effects on wages, employment, or poverty rates do not explain these results.
Presenter’s Bio
Presentation Slides
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02:30 PM – 03:30 PM
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 Olivia Bordeu (Princeton University)
Title: “Commuting Infrastructure in Fragmented Cities“
PaperlinkAbstract: Cities are divided into local governments responsible for local commuting infrastructure that is used by both their residents and outsiders. In this paper, I study how metropolitan fragmentation affects the provision of commuting infrastructure and the distribution of eco- nomic activity. I develop a quantitative spatial model in which municipalities compete for residents and workers by investing in commuting infrastructure to maximize net land value in their jurisdictions. In equilibrium, relative to a central metropolitan planner, municipal- ities underinvest in areas near their boundaries and overinvest in core areas away from the boundary. Infrastructure investment in fragmented cities results in higher cross-jurisdiction commuting costs, more dispersed employment, and more polycentric patterns of economic activity. Estimating the model using data from Santiago, Chile, I find substantial gains from centralizing investment decisions. Centralization increases aggregate infrastructure invest- ment and population. More importantly, for a given amount of investment, centralization yields large welfare gains due solely to more efficient infrastructure allocation.Presenter’s BioPresentation Slides |
| 4:00 PM – 5:00 PM |
 Fernando Parro (University of Rochester)
Title: “Learning and Expectations in Dynamic Spatial Economies“
Joint withJingting Fan (Pennsylvania State University) and Sungwan Hong(Pennsylvania State University)PaperlinkAbstract: The impact of shocks in dynamic environments depends on how forward-looking agents anticipate the path of future fundamentals that shape their decisions. We incorporate exible beliefs about future fundamentals into a general class of dynamic spatial models, allowing beliefs to be evolving, uncertain, and heterogeneous across groups of agents. We show how to implement our methodology to study both ex-ante and ex-post shocks to fundamentals. We apply our method to two settings: an ex-ante study of the economic impacts of climate change, and an ex-post evaluation of the China productivity shock on the U.S. economy. In both cases, we study the impact of deviations from perfect foresight on different outcomes.Presenter’s BioPresentation Slides |
Organizers are:
Prof. Martin Rotemberg (New York University, Arts & Science)
Prof. Sharon Traiberman (New York University, Arts & Science)
Prof. Simone Lenzu (New York University, Stern School of Business)
Prof. Anna Vitali (New York University, Arts & Science)
