Rosa Sanchis-Guarner

Take me to the Centre of your Town! Using Micro-Geographical Data to Identify Town Centres

We often talk about ‘Town Centres’ (TCs), but defining their location and extent is surprisingly difficult. Their boundaries are hard to pin down and intrinsically fuzzy. Nevertheless, policymakers often speak or act as if their definition was self-evident. The Dutch and later the British governments, for example, introduced very specific policies for them without ever clearly defining what or where they were. In this article, we propose a simple methodology to predict TC boundaries and extent. Using a range of micro-geographical data, we test our method for the whole of Great Britain in an attempt to capture all the dimensions of ‘town centredness’ in a 3D surface. We believe this is a contribution in its own right but is also an essential step if there is to be any rigorous analysis of TC or evaluation of policies directed at them. Our method should contribute to improve not just debates about cities, shopping hierarchies, and TCs but also to other more general debates where people and policy proceed ahead of any clear definition of what are the objects of interest.

Decomposing the Impact of Immigration on House Prices

An inflow of immigrants into a region impacts house prices in three ways. For a fixed level of local population, housing demand rises due to the increase in foreign-born population. In addition, immigrants can influence native location decisions and induce additional shifts in demand. Finally, changes in housing supply conditions can in turn affect prices. Existing reduced form estimates of the effect of immigration on house prices capture the sum of all these effects. In this paper, I propose a methodology to identify the different channels driving the total effect. I show that, conditional on supply, total changes in housing demand can be decomposed into the sum of direct immigrant demand and indirect demand changes from relocated population. The size and sign of the indirect demand effect depends on the impact of immigration on native mobility. I use Spanish data during the period 2001- 2012 to estimate the different elements of the decomposition, applying an instrumental variables strategy to obtain consistent coefficients. The results show that overlooking the impact of immigration on native location induces a sizeable difference between the total and the immigrant demand effects, affecting the interpretation of the estimates