Dusan ParedesUniversidad Católica del Norte (Chile) · Department of Economics
Dusan Paredes
PhD
About
94
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Introduction
I am Full Professor at the Department of Economics, Universidad Católica del Norte, Chile. My research focuses on the theoretical and empirical link between the spatial concentration of economic activity and welfare. Currently, I use spatial quantitive models to understand how the local public finance system affects the spatial distribution of population, wages, and other fundamentals in Chile.
Additional affiliations
October 2018 - October 2020
June 2018 - present
August 2014 - June 2016
Education
August 2008 - May 2012
Publications
Publications (94)
Difference in terms of cost-of-living between rural and urban areas is a frequent theoretical analysis in Regional Economics. Lack of routine measures in rural areas does not usually allow to observe changes in rural costs. We adapt the Big Mac index, typically used to measure purchasing power parity between countries, as a potential quick and inex...
Urban sustainability and sustainable mobility have become the central focus of sustainable development initiatives. The city of 15 models seeks to ensure that urban development is sustainable. This paper evaluates the current state of mobility and the use of sustainable transport in the specific context of the city of Antofagasta, which, due to its...
Urban blight is a complex problem that has been challenging for cities in the United States “Rust Belt” region for many decades. However, in the wake of the real estate and financial crisis, it is also a growing challenge for urban communities in many states such as California, Arizona, Nevada, and Texas. Detroit was particularly hit hard, where mo...
This article evaluates economies of scale in local public spending in Chile, emphasizing the country’s geographical features and high fiscal heterogeneity. We leverage balanced panel data for ten years and 307 municipalities in order to estimate the population level at which a reduction in the average cost of local public goods provision occurs and...
We explore how spatial interaction affects the strategic use of municipal income when deciding between 1) an optimal long-run expenditure strategy versus 2) using the current income to finance current activities, a phenomenon known as the permanent income hypothesis. Even when this hypothesis is grounded in temporal logic, insufficient attention ha...
This article evaluates the impacts of reductions in residential effective tax rates on homeownership in Detroit, Michigan. The decline in effective tax rates was driven by a citywide reassessment that significantly reduced effective tax rates. These estimates are used to infer the potential impacts of moving from a traditional property tax to a spl...
Fiscal stress is a common condition in shrinking cities such as Detroit. Among the contributing factors, property tax delinquency is a significant consideration due to the unwillingness or inability to pay property taxes. The literature shows that improvement in the quality of public goods and services can increase tax compliance and strengthen the...
Although the resource curse offers evidence for the national crowding out generated by resource windfalls from mining, subnational crowding is not fully understood. This knowledge gap is problematic because these windfalls should cover the negative externalities that exist in host zones. Additionally, these communities have different fiscal respons...
Although mining is a capital-intensive industry, its contribution to employment creation is generally praised as a leading local benefit to justify new or expanding extraction projects. However, labour substitution from automation and robotics is increasing in a wide range of modern mining processes. Such labour replacement is likely to intensify i...
Despite the efficiency produced by long-distance commuting (LDC) as an adjustment mechanism between local labor markets, the impact that it has on the equilibrium of labor markets has not been studied in depth. This paper uses the case of Chile, since in the last two decades the LDC has increased its importance as a strategy of labor mobility for w...
Intellectual property is related to industrial property and copyright,
and in both cases is considered to be an indicator of innovation and
development. The study of innovation subsidies given to innovative firms has
been widely reviewed in developed economies, but there is very little empirical
evidence for developing countries. And this study loo...
There is abundant empirical evidence supporting the relationship between cooperation and innovative entrepreneurial activity, but the conversation continues to be limited to the context of developing countries. This study contributes to the academic debate on this topic with an empirical evaluation of the effect of cooperation networks on innovatio...
The purpose of this article is to evaluate the degree to which the demolition of low-quality structures affects property tax compliance in Detroit. During the real estate crisis, the rate of property tax delinquency in the city exceeded 50%. The demolition of dilapidated structures could lead to improvements in tax compliance in two ways. The first...
Intellectual property is related to industrial property and copyright, and in both cases is considered to be an indicator of innovation and development. The study of innovation subsidies given to innovative firms has been widely reviewed in developed economies, but there is very little empirical evidence for developing countries. And this study loo...
Literature on the resource curse argues that resource windfalls, such as those resulting from a commodity price boom, crowd out several determinants of long-term fiscal income (Papyrakis and Gerlagh, 2006). Although empirical literature tests this theory at an intercountry context, similar attention has not been paid to that of subnational governme...
Literature on the resource curse argues that resource windfalls, such as those resulting from a commodity price boom, crowd out several determinants of long-term fiscal income (Papyrakis and Gerlagh, 2006). Although empirical literature tests this theory at an intercountry context, similar attention has not been paid to that of subnational governme...
Aunque existe evidencia empírica sobre la demanda de vivienda y su dinámica de ajuste, es escasa la evidencia sobre el ajuste vía oferta. En particular, mínima es la evidencia sobre la cuantificación de elasticidad de la curva de oferta, elemento clave para equilibrar los mercados inmobiliarios. Este artículo estima la función de oferta de servicio...
Despite the literature on urban economics has devoted a lot of attention to analyzing housing demand and its adjustment dynamics across markets, not a similar attention has been given to housing supply. In particular, there is limited knowledge on the way the supply curve would help to understand the urban equilibrium in highly dynamic markets as t...
The β-convergence model is based on the neoclassical framework in which the spatial level of analysis is not relevant. These levels will result in decreasing returns. However, local processes of agglomeration, spillover effects, or other forces could operate differently depending on the level of spatial disaggregation. The primary objective of this...
Using electric cooperative service area data at the zip code level, we estimate the county-level share of electricity produced by locally owned electric cooperatives. We then estimate the impact of this share on county level 2010–14 growth while controlling for rurality and other factors. We find that electric cooperative share is positively relate...
Chilean mining municipalities collect a mineral tax to compensate for the negative externalities associated with resource extraction. Although this implies a positive marginal impact on local finance, there is not enough empirical evidence to support that this improves the quality of life in these communities. This article attempts to bridge this k...
This article evaluates the impact of entrepreneurship on income inequality in Chile. We use data from Nueva Encuesta Suplementaria de Ingresos between 2011 and 2014. Our results show that effects vary according to we use opportunity entrepreneurship versus formal entrepreneurship activities. In particular, a traditional entrepreneurship activity ex...
El objetivo de este artículo es cuantificar el impacto del emprendimiento en la desigualdad de ingresos en Chile. Utilizando datos de la Nueva Encuesta Suplementaria de Ingresos del 2011 al 2014, confirmamos que el emprendimiento contribuye a dicha desigualdad. Más aun, el emprendimiento genera diferentes impactos dependiendo si se trata de emplead...
Fiscal regimes to the mining industry facilitate the revenue-raising task of resource-dependent economies as they reduce the local tax burden of their residents. Whether these fiscal arrangements translate into a higher allocation of public goods in these economies remains yet unclear. We analyze the effects that local mineral taxation has on the p...
Chilean mining municipalities collect a mineral tax to compensate the negative externalities associated with resource extraction. This collection implies a positive marginal impact on local finance to improve the quality of life in the mining communities. However, there is not enough empirical evidence to support this causal mechanism. This article...
This paper analyzes the importance of individual and place characteristics on the selection into self-employment in Chile. Following a structural and multilevel empirical approach, we test whether both sets of variables explain the variation of individual wages, self-employed earnings, and the propensity of being in independent work. The results in...
Since Roback’s seminal work (J Polit Econ 90(6):1257–1278, 1982), theliterature on hedonic prices has evaluated the role of amenities in equilibrating regionaldifferentials in nominal wages and prices.While these studies generally find evidencefor traditional amenities and disamenities in developed countries, there remains little research on how ch...
The fly-in/fly-Out (FIFO) or, drive-in/drive-out (DIDO) labour system is a long-distance commuting work arrangement to attract workers towards remote mineral or fossil fuel extraction areas, where they work in shifts and then return to their usual place of residence located in a different region. Along with more and cheaper transportation alternati...
The extensive literature on economic convergence has explored a wide variety of ways of measuring convergence in addition to finely tuning and improving the applicable econometric techniques. However, very few contributions analyze the relevance of the spatial level of analysis. Our hypothesis is that studying the convergence at the level of large...
We conduct an analysis of the costs and benefits of public investment in demolishing dilapidated residential housing in Detroit. While we estimate a positive net impact of demolitions on nearby property values, we also calculate a low marginal impact on local property tax collections. Under existing housing market conditions in Detroit, demolition...
We conduct an analysis of the costs and benefits of public investment in demolishing dilapidated residential housing in Detroit. While we estimate a positive net impact of teardowns on nearby property values, we also calculate a low marginal impact on local property tax collections. Under existing housing market conditions in Detroit, demolition co...
Understanding household preferences for housing attributes is imperative for developing countries after years of housing policies that failed mostly due to the mismatch between housing solutions and needs. This paper provides income and price elasticity estimates of the demand for housing attributes as an indicator to measure how households perceiv...
This paper analyses the role of FCM on the convergence process of local government incomes. This analysis was performed using a panel data of 345 chilean municipalities for the period between 2001 and 2011. By using quasi-experiments and dynamic equations is demonstrated that FCM does not have a significant effect in the increment of the municipal...
In this paper, we estimate the size of the wage premium necessary to compensate for remoteness incurred by workers compared to the city size productivity effects. We construct five urban hierarchy tiers for cities in Chile based on their level of remoteness from the urban system. We then contrast the effect generated by these variables on worker wa...
Rural leaders can point to low housing costs as a reason that their area should be competitive for business attraction. To what extent do rural housing costs offset transportation and other locational disadvantages in costs structures? The US lacks information to systematically answer the question. We adapt a strategy employed by The Economist in e...
The Fly-in/Fly-Out (FIFO) labor system is a long-distance commuting work arrangement to attract workers toward remote mineral or fossil fuel extraction areas, where they work in shifts and then return to their usual place of residence located in a different region. Along with more and cheaper transportation alternatives, the use of FIFO systems hav...
The relationship between resource extraction activity and economic development has been widely studied in the literature and the resources curse hypothesis emerged as important theory to explain the effects of resource windfalls on national economies. However, within countries, resource booms and busts can have distinctive effects across local econ...
This paper attempts to identify the existence of displacement in Mexico caused by drug-related violence. We identify two types of migrants: (i) migrants moving from nonviolent to violent states, driven by better
economic opportunities and less expensive cost of living at destination and (ii) migrants moving from violent to nonviolent states: they s...
A true cost of living (COL) index should compare the cost derived by two consumption levels and two price vectors maintaining the same utility in the two cases. Its application and empirical testing has been, generally, focalized on a temporal perspective. A spatial perspective it is also interesting for economic analysis because it allows for maki...
Since Roback (1982)’s seminal work, the literature has evaluated the role of the amenities to equilibrate the regional differentials of nominal wages and prices. While these studies generally find evidence for traditional amenities and disamenities in developed countries, it still exists a scarce exploration on how those characteristics assessed, l...
La desigualdad espacial de ingresos en los países latinoamericanos es un tema que ha despertado reciente interés académico. Particularmente, Chile se destaca mundialmente por sus altas tasas de desigualdad espacial e individual. Este artículo analiza la desigualdad espacial de ingresos en Chile durante 1992 2011 evaluando el rol de la localización...
The relationship between resource extraction activity and economic growth has been widely studied in the literature, and the resource curse hypotheses emerged as a theory to explain the effects of resource windfalls on national economies. However, within countries, resource booms and busts can have distinctive effects across local economies, as ext...
In this paper, we investigate the effect of the spatial density of firms on gender wage gap. We formalize this relationship using a monopsonistic approach in which women face higher travel costs due to domestic responsibilities. This creates not only bargaining power at the firm level but wage discrimination as well. This bargaining power is reduce...
The spatial income inequality in Latin American countries is a recent academic affair. Particularly, the case of Chile highlights around the world because it has one of the highest individual and spatial inequality rates. This article analyzes the spatial income inequality in Chile during 1992-2011 evaluating the role of the spatial labor sorting t...
This paper suggests that long distance commuters in Chile obtain a wage compensation of 8.7% on average when they commute among functional areas using data for 2009, while previous work identifies an average compensation of 19% using counties. Also, we estimated a higher compensation per hour. This estimated wage-gradient is 6.1% per commuted hour...
New technologies combining hydraulic fracturing and horizontal drilling in oil and gas extraction are creating a sudden expansion of production. Residents of places where deep underground oil and gas deposits are found want to know about the broader economic, social, and environmental impacts of these activities that generate windfall income for so...
The New Economic Geography (NEG) has been tested to explain the spatial concentration of wages in developed countries, but it has not been evaluated for developingcountries where the excessive spatial concentration seems to be related with negative consequences on the economic development. This paper covers this gap in the literature estimating by...
The relationship between resource extraction activity and economic growth has been widely studied in the literature and the resource curse hypotheses emerged as a theory to explain the effects of resource windfalls on national economies. However, within countries, resource booms and busts can have distinctive effects across local economies, as extr...
Social and economic interaction among small spatial units is a phenomenon that has undoubtedly become persistent across time. This implies that labor markets expand through space mainly due to the continuous decrease of transport costs. Thus, greater interaction among spatial units suggests the potential existence of macro labor markets labeled as...
We show evidence about the unequal spatial distribution of population toward the northern and southern side of Chile imply than even when geographical distances to the main urban center are similar, the distances in a urban hierarchy sense is absolute different one. Given this economic geography, we postulate that Central Place Theory provides a be...
We present evidence regarding the unequal spatial distribution of population in the north and south of Chile which implies that even when geographical distances to the main urban center are similar, the distances in a context of urban hierarchy are completely different. Given this economic geography, we postulate that Central Place Theory provides...
Previous literature identifies the high and persistent income inequality of Chile, but the geographic heterogeneity of the inequality is still unexplored. This lack of discussion encourages spatially blind policy that ignores the interaction between individual and spatial inequality. To evaluate its magnitude, we propose a spatial decomposition at...
We show evidence about the unequal spatial distribution of population toward the northern and southern side of Chile implies than even when geographical distance to the Metropolitan Region are similar, the distance in a urban hierarchy sense is absolute different one. Given this economic geography, we postulate than Central Place Theory provides a...
Social and economic interaction among small spatial units is a phenomenon that has undoubtedly become more and more persistent in time. This implies that labor markets expand through space mainly due to the continuous decrease of transport costs. Thus, greater interaction among spatial units suggests the potential existence of macro labor markets l...
Are food price elasticities different across city sizes? The aim of this article is to estimate expenditure and own-price elasticities for 10 aggregated food product groups using the Spanish Household Budget Survey for the year 2010. These products are the ones for which the survey provides information regarding prices and quantities, thus allowing...
The New Economic Geography (NEG) has been tested to explain the spatial concentration of wages in developed countries, but it has not been evaluated for developingcountries where the excessive spatial concentration seems to be related with negative consequences on the economic development. This paper covers this gap in the literature estimating by...
The aim of this article is to build a spatial housing price index for the Chilean communes (the commune political body similar to a municipality or county). The first step is to recover hedonic prices of three housing attributes by estimating a mixed index model (Bowden, 1992) using a generalized method of moments procedure. Secondly, a censored al...
This paper presents an empirical framework for analysing spatial wage inequality in Chile. Chile is primarily characterized by two stylized facts: the high spatial concentration around the metropolitan area and the key role of natural resources in the country. The paper considers both elements in a competition between NEG (new economic geography) a...
La conmutación de larga distancia (CLD) ha cobrado importancia producto de la continua reducción en costos de transporte. Este paper formaliza la relación CLD y salario mediante un modelo de búsqueda de trabajo que incluye como variable el tiempo conmutado. Se plantea que la CLD debe ser compensada en salario, ser creciente en distancia, y regiones...
Empirical evidence on consumer behavior is of major importance in the formulation and analysis of economic policies. Changes in prices, income level, or decisions regarding taxes or other structural reforms that affect relative prices may produce very different effects depending on family income distribution or also across space. The aim of this pa...
The importance of Long Distance Commuting (LDC) has increased as a result of the continuous reduction of transport costs. This paper formalizes the relationship between LDC and wage through a job search model where a commuting time variable is included. The paper proposes that LDC be compensated in wage and be increasing in distance, and that the r...
This paper estimates the Urban Wage Premium for the Chilean case, but proposing three contributions to the literature. First, the geographical space is reconfigured using functional regions instead administrative regions. This process is carried out using techniques from the spatial econometric literature. Second, we exploit the use of micro data....
We empirically test the positive relationship between market access and wages stated by New Economic Geography. Contrary to most estimations in other countries, we find evidence of significant spatial heterogeneity of this elasticity across Chilean communities.
The previous literature identifies the high and persistent income inequality of Chile, but the geography of this inequality is still unexplored. To evaluate this dimension, we propose a three-stage decomposition of the Theil index at regional, province and county level. Our decomposition indicates that between 1992 and 2009, 21% of the inequality i...
The spatial convergence has been widely discussed from a neoclassical perspective. After the convergence-model proposed by [1], a new literature wave has focused on spatial convergence, especially at the within-country level. Despite its contribution to formalize the discussion about regional growth, the convergence- model does not seem to fit the...
This paper presents an empirical framework for analysing spatial wage inequality in Chile. Chile is primarily characterized by two stylized facts: the high spatial concentration around the metropolitan area and the key role of natural resources in the country. The paper considers both elements in a competition between NEG (new economic geography) a...
This paper presents a methodology to estimate the individual gender wage gap as the difference between wages of the women and their counterfactuals defined by Coarsened Exact Matching. If the women show a higher wage than comparable men, then it is called positive gap. Using eight surveys between 1992 and 2009 for Chile, a stable average of 44% of...
This paper presents an empirical framework for analyzing the spatial wage inequality in a Latin American country: Chile. This country is mainly characterized by two stylized facts: the high spatial concentration around metropolitan areas and the key role of natural resources. We consider both elements with a competition between NEG versus amenity f...
We estimate the spatial substitution bias based on the difference between a price index (PI) and the true cost of living (COL). This bias is computed at three geographical scales, using several fixed baskets and across different expenditures quartiles. Our results show a significant substitution bias for small geographical units. The choice of the...
This article describes a methodology to calculate a Spatial Cost of Living (SCOL) index using the Colombian data for 2006 that considers the microeconomic behaviour of households. Estimating an Almost Ideal Demand System (AIDS) to recover the expenditure function of the 23 main Colombian cities, the index is compared to the fixed basket approach an...
This paper proposes a methodology for a spatial cost index of housing that considers spatial heterogeneity in properties across regions. The index is built by combining three different techniques to reduce the spatial heterogeneity in housing: Quasi-experimental methods, hedonic prices and Fisher spatial price index. Using microdata from the Chilea...
This paper proposes a methodology for a spatial cost index of housing that considers spatial heterogeneity in properties across
regions. The index is built by combining three different techniques to reduce the spatial heterogeneity in housing: Quasi-experimental
methods, hedonic prices and Fisher spatial price index. Using microdata from the Chilea...
El objetivo de este artículo es proponer una metodología para construir un índice regional de costo de vivienda que tome en consideración la heterogeneidad espacial de éstas. Trabajando con la encuesta CASEN 2003, se muestra que los precios promedios entre regiones así como la estimación de regresiones hedónicas pueden generar resultados sesgados p...