Syllabus: Advanced Regional Economics 2

AEDE 7415: Advanced Regional Economics 2 Spring 2018, Monday/Wednesday 11:10 to 12:30 Agricultural Admin. Bldg., 246 Ohio State University Professor Matthew B. Ross Syllabus: Advanced Regional Economics 2 This course is one of two that comprise the graduate sequence in regional economics. The goal of the course is to provide limited coverage of standard theory and to expose you broadly to common research techniques within the literature. There is no required text for the course as we will primarily cover journal articles, most of which are available through online retrieval services offered through the university library. Grading and Assignments Assignments and grading in this course are geared towards the development of critical skills related to professional responsibilities in the economics profession: i.e. discussant presentations and referee reports. Specifically, everyone will be responsible for two referee reports and one discussant presentation. These assignments should be based on a paper from the reading list that is NOT designated as one of the core readings. Details related to each assignment Referee Reports (2 at 30%): The peer review process is an important part of professional service in the economics discipline. In this course, you will be responsible for conducting two mock peer reviews. The format of the referee reports should follow the outline discussed in class and be between 2 to 3 pages in length. These assignments will receive a weight of 30 percent each, totaling 60 percent of the final course grade. AEA Guidelines: https://www.aeaweb.org/content/file?id=222 Discussant Presentation (1 at 40%): Conference presentations, both of your own work and as a discussant for others, are crucial aspects of professional development within the economics profession. In this course, you ll be expected to present one paper throughout the course when it is your group s week. The format of the presentation should follow the outline discussed in class and be 10 to 15 minutes in length. This assignment will receive a weight of 40 percent of the final course grade. Helpful Resource: http://sites.utexas.edu/ecoadvising/files/2012/05/esp-tips-on-being-a-gooddiscussant1.pdf

Topical Overview Week 1: Machine Learning Approaches Week 2: Spatial Labor Dynamics Assignments: Group 1 presentation due, Groups 3 and 5 referee reports due Week 3: Agglomeration and Spillovers Assignments: Group 2 presentation due, Group 4 referee reports due Week 4: Technology, Innovation, and Growing Inequality Assignments: Group 3 presentation due, Groups 1 and 5 referee reports due Week 5: (1) Immigration (2) The Effects of Segregation Assignments: Group 4 presentation due, Group 2 referee reports due Week 6: Networks and Neighborhood Effects Assignments: Group 5 presentation due, Groups 1 and 3 referee reports due Week 7: (1) Understanding Tests of Discrimination (2) The Effects of Crime Assignments: Group 2 and 4 referee reports due Detailed Outline and Assigned Readings Machine Learning Approaches Athey, Susan and Guido Imbens. 2015. Machine Learning for Estimating Heterogeneous Causal Effects. GSB Stanford Working Paper. Glaeser, Edward L. and Scott Duke Kominers and Michael Luca and Nikhil Naik. 2015. Big Data and Big Cities: The Promises and Limitations of Improved Measures of Urban Life. NBER Working Paper No. 21778. Jon Kleinberg and Himabindu Lakkaraju and Jure Leskovec and Jens Ludwig and Sendhil Mullainathan. 2017. Human Decisions and Machine Predictions. NBER Working Paper No. 23180. Spatial and Regional Labor Dynamics Eeckhout, J., R. Pinheiro, and K. Schmidheiny. 2014. Spatial sorting. Journal of Political Economy.

Glaeser, Edward. 2011. The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States. National Bureau of Economic Research Working Paper No. 14806. Mellander, Charlotta and Richard Florida. 2014. The Rise of Skills: Human Capital, the Creative Class and Regional Development. Lucas, R.E. Jr. and E. Rossi-Hansberg, 2002. On the Internal Structure of Cities. Econometrica. *Beaudry, Paul and Green, David A. and Sand, Benjamin M. 2014. Spatial equilibrium with unemployment and wage bargaining: Theory and estimation. Journal of Urban *Kline, P. and E. Moretti. 2014. Local economic development, agglomeration economies, and the big push: 100 years of evidence from the Tennessee valley authority. The Quarterly Journal of *Molloy, R., C. L. Smith, and A. Wozniak. 2011. Internal migration in the united states. The Journal of Economic Perspectives. *Timothy, D. and W. C. Wheaton. 2001. Intra-Urban Wage Variation, Employment Location, and Commuting Times. Journal of Urban Economics *Wheeler, C.H. 2006. Cities and the Growth of Wages Among Young Workers: Evidence from the NLSY. Journal of Urban *Yinger, J. 1992. City and Suburb: Urban Models with More than One Employment Center. Journal of Urban *Yankow, J.J. 2006. Why Do Cities Pay More? An Empirical Examination of Some Competing Theories of the Urban Wage Premium. Journal of Urban Agglomeration and Spillovers Audretsch, David B. and Feldman, Maryann P. 1996. RandD Spillovers and the Geography of Innovation and Production. American Economic Review. Ellison, Glenn, Edward L. Glaeser, and William Kerr. 2010. What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns. American Economic Review. Greenstone, Hornbeck and Moretti. 2010. Identifying Agglomeration Spillovers: Evidence from Winners and Losers of Large Plant Openings. Journal of Political Economy.

Rosenthal, S.S., Strange, W.C., 2003. Geography, industrial organization, and agglomeration. Review of Economics and Statistics. *Arzaghi, M., Henderson, J.V. 2008. Networking off Madison avenue. Review of Economic Studies. *Billings, Stephen B. and Erik B. Johnson. 2012. A Non-Parametric Test for Industrial Specialization. Journal of Urban *Ciccone Antonio and Robert E. Hall. 1996. Productivity and the Density of Economic Activity. American Economic Review. *Duranton and Puga. 2004. Micro-Foundations of Urban Agglomeration Economies. Handbook of Urban and Regional *Duranton, G., Overman, H.G. 2008. Exploring the detailed location patterns of UK manufacturing industries using microgeographic data. Journal of Regional Science. *Moretti, Enrico. 2004. Human Capital Externalities in Cities. Handbook of Urban and Regional Technology, Innovation, and Growing Inequality Autor, D., F. Levy, and R. J. Murnane. 2003. The skill content of recent technological change: An empirical exploration. The Quarterly Journal of David H. Autor and David Dorn and Gordon H. Hanson, 2015. "Untangling Trade and Technology: Evidence from Local Labour Markets," Economic Journal, Royal Economic Society, vol. 0(584), pages 621-646, 05. Akerman, A., I. Gaarder, and M. Mogstad. 2015. The skill complementarity of broadband internet. The Quarterly Journal of Downey, M. 2016.. Partial automation: Routine-biased technical change, deskilling, and the minimum wage. Working Paper. Autor, David H. and Lawrence F. Katz and Melissa S. Kearney. 2006. The Polarization of the U.S. Labor Market. American Economic Review. *Beaudry, P., M. Doms, and E. Lewis. 2010. Should the personal computer be considered a technological revolution? evidence from us metropolitan areas. Journal of Political Economy.

Immigration *Cortes, Matias. 2016. Where Have the Middle-Wage Workers Gone? A Study of Polarization using Panel Data. Journal of Labor *Gaggl, P. and G. C. Wright. 2016.. A short-run view of what computers do: evidence from a UK tax incentive. American Economic Journal: Applied *Michaels, G., A. Natraj, and J. Van Reenen. 2014. Has ICT polarized skill demand? evidence from eleven countries over twenty-five years. Review of Economics and Statistics. *Michaels, Guy. 2008. The Effect of Trade on the Demand for Skill: Evidence from the Interstate Highway System," The Review of Economics and Statistics. Borjas, George. 2003. The Labor Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market. Quarterly Journal of Card, David. 1990. The Impact of the Mariel Boatlift on the Miami Labor Market. Industrial and Labor Relations Review. Peri, Giovanni and Chad Sparber. 2009. Task Specialization, Immigration and Wages. American Economic Journal, Applied *Card, David. 2001. Immigrant Inflows, Native Outflows, and the Local Market Impacts of Higher Immigration. Journal of Labor *Cadena, Brian and Kovak, Brian. 2013. Immigrants Equilibrate Local Labor Markets: Evidence from the Great Recession. NBER Working Paper No. 19272. Published version: 2016. American Economic Journal: Applied *Foged, Mette and Peri, Giovanni. 2015. Immigrants' Effect on Native Workers: New Analysis on Longitudinal Data. American Economic Journal, Applied *Kato, Takao and Sparber, Chad. 2013. Quotas and Quality: The Effect of H-1B Visa Restrictions on the Pool of Prospective Undergraduate Students from Abroad. Review of Economics and Statistics. *Peri, Giovanni and Gianmarco I.P. Ottaviano. 2008. Immigration and National Wages: Clarifying the Theory and the Empirics. NBER Working Paper No. 14188. *Sparber, Chad, Peri, Giovanni and Shih, Kevin. 2015. Foreign and Native Skilled Workers: What Can We Learn from H-1B Lotteries? NBER Working Paper 21175.

The Effects of Segregation Ananat, Elizabeth. 2007. The Wrong Side(s) of the Tracks: Estimating the Causal Effects of Segregation on City Outcomes. NBER Working Paper No. 13343. Cutler, David and Edward Glaeser. 1997. Are Ghettos Good or Bad? Quarterly Journal of Weinberg, Bruce. 2000. Black Residential Centralization and the Spatial Mismatch Hypothesis. Journal of Urban *Card, David and Jesse Rothstein. 2007. Racial Segregation and the Black-White Test Score Gap. Journal of Public *Cutler, David M. and Glaeser, Edward L. and Vigdor, Jacob L. 2008. When are ghettos bad? Lessons from immigrant segregation in the United States. Journal of Urban *Cutler, David M., Edward L. Glaeser, and Jacob L. Vigdor. 1999. The Rise and Decline of the American Ghetto. Journal of Political Economy. *Lutz, Byron. 2011. The End of Court-Ordered Desegregation. American Economic Journal, Economic Policy. *Ross, Stephen L. 1998. Racial Differences in Residential and Job Mobility. Journal of Urban *Weinberg, Bruce. 2004. Testing the Spatial Mismatch Hypothesis Using Inter-city Variations in Industrial Composition. Regional Science and Urban Networks and Neighborhood Effects Aaronson, Daniel. 1998. Using sibling data to estimate the impact of neighborhoods on children s educational outcomes. Journal of Human Resources. Currie, Janet and Aaron Yelowitz. 2000. Are Public Housing Projects Good for Kids? Journal of Public Kling, J.R., J.B. Liebman, and L. Katz. 2007. Experimental Analysis of Neighborhood Effects. Econometrica. Oreopoulos, Philip. 2003. The Long-Run Consequences of Living in a Poor Neighborhood. Quarterly Journal of

*Edin, Per-Anders, Peter Fredriksson, and Olof A slund. 2003. Ethnic Enclaves and the Economic Success of Immigrants Evidence from a Natural Experiment. Quarterly Journal of *Grinblatt, Mark, Matti Keloharju, and Seppo Ikaheimo. 2004. Interpersonal Effects in Consumption: Evidence from the Automobile Purchases on Neighbors. NBER Working Paper No. 10226. *Ioannides, Yannis M. and Linda Datcher Loury. 2004. Job Information Networks, Neighborhood Effects, and Inequality. Journal of Economic Literature. *Paserman, Daniele, Eric Gould and Victor Lavy. 2011. Sixty Years after the Magic Carpet Ride: The Long-Run Effect of the Early Childhood Environment on Social and Economic Outcomes. Review of Economic Studies. Understanding Tests of Discrimination Kahn, Lawrence M., and Peter D. Sherer. 1988. "Racial Differences in Professional Basketball Players' Compensation." Journal of Labor Economics 6(1): 40-61. Knowles, John, Nicola Persico, and Petra Todd. 2001. Racial Bias in Motor Vehicle Searches: Theory and Evidence. Journal of Political Economy, 109, 203-229. Ross, Stephen L. 2000. "Mortgage Lending, Sample Selection, and Default." Real Estate Economics 28: 581-621. Grogger, Jeff and Greg Ridgeway. 2006. Testing for Racial Profiling in Traffic Stops From Behind a Veil of Darkness. Journal of the American Statistical Association. *Altonji, James G., and Charles R. Pierret. 2001. "Employer Learning and Statistical Discrimination." The Quarterly Journal of Economics CXVI(1) (February): 313-348. *Anwar, Shamena and Hanming Fang. 2006. An Alternative Test of Racial Prejudice in Motor Vehicle Searches: Theory and Evidence. American Economic Review. *Becker, Gary S. 1993. Nobel Lecture: The Economic Way of Looking at Behavior. Journal of Political Economy. *Berkovec, James A., Glenn B. Canner, Stuart A. Gabriel, and Timothy H. Hannan. 1994. Race, Redlining, and Residential Mortgage Loan Performance. Journal of Real Estate Finance and *Charles, K. and J. Guryan. 2008. Prejudice and Wages: An Empirical Assessment of Becker s The Economics of Discrimination. Journal of Political Economy.

*Kalinowski, Jesse and Stephen L. Ross and Matthew B. Ross. 2017. Endogenous Driving Behavior in Veil of Darkness Tests for Racial Profiling. HCE Working Paper. *Rodgers, W. M. 1997. Male Sub-Metropolitan Black-White Wage Gaps: New Evidence for the 1980s. Urban Studies. The Effects of Crime Machin, Marie. 2011. Crime and Police Resources: The Street Crime Initiative. Journal of the European Economic Association. Ludwig, Jens, Greg J. Duncan and Paul Hirschfield. 2001. Urban Poverty and Juvenile Crime: Evidence from a Randomized Housing-Mobility Experiment. Quarterly Journal of *Bayer, Hjalmarsson, Pozen. 2009. Building Criminal Capital behind Bars: Peer Effects in Juvenile Corrections. The Quarterly Journal of *Ihlanfeldt, Keith R. 2007. Neighborhood Drug Crime and Young Males' Job Accessibility. Review of Economics and Statistics. *Ludwig, Jens; Jeffrey Kling. 2007. Is Crime Contagious. Jeffrey R. Journal of Law and *Weiner, David A., Byron F. Lutz, and Jens Ludwig. 2009. The Effects of School Desegregation on Crime. NBER Working Paper No. 15380.