housing finance and urban infrastructure finance financing issues received major attention in the discussions of human settlement development policy through the preparatory process for habitat ii and at the conference itself this paper presents

urban bias the political economy of development and urban policies for developing countries theories of urban overdevelopment and urban bias have a long but discontinuous history dating from the 1920s when policy makers in the former soviet union considered urban rural sectoral balanc

residential energy demand in oecd countries and the role of irreversible efficiency improvements abstract after undergoing substantial changes during a period of high energy prices household energy demand did not rebound in times of declining energy prices as might have been expected hence other factors such as irreversible improvements in technical efficiency must be understood in order to describe both past and future household energy demand in this paper we consider irreversible efficiency improvements as a major reason for the moderate growth in energy demand after the plummeting of the oil price in 1985 we test different econometric models to take into account efficiency indicators the major conclusions of our investigation are i price elasticities are different for rising and falling prices for the latter they are close to zero implying a low rebound effect in the residential sector ii technical efficiency is an important parameter for describing and forecasting energy demand and iii income elasticities turn out to be higher once we incorporate indicators of technological efficiency in the process of estimating energy demand

the value of squatter dwellings in developing countries the value of squatter dwellings for a sample in the philippines is estimated and the statistical relationship between value and housing characteristics is described the results of a survey approach indicate that while the discrepancies in the estimates are quite large for individual properties they are offset by using sufficiently large samples in addition when two estimates are highly correlated with one another they yield similar results when they are used as dependent variables in a hedonic price equation methodological considerations aside the determinants of the value of squatter dwellings tend to be similar to those of conventional formal sector dwellings the external appearance and quality of materials used in construction are among the most important variables water and sanitary facilities may not be valued as much as expected age may be positively correlated with value because housing services are improved more gradually in squatter communities and because longevity in a particular area is a sign of reduced risk overall squatter housing markets appear to behave as economically rational entities that valuate dwelling units similarly to conventional markets

a model of residential demand for electricity using a national household sample abstract using a three equation model demand price appliance stock index and a current national household data set this study develops partial and total elasticity estimates for the usa partial elasticities are 0 102 for income and 0 193 for price while total elasticities are 0 410 for income and 1 403 for price

the gains from trade for a monetary economy once again the authors examine the effects of free trade on a small open economy within a dynamic generalized cash in advance model they provide a complete characterization for the possibility of harmful trade and suggest alternative economic policies that can convert the loss associated with free trade into a gain they authors also find contrary to standard results that there exists an optimal tariff for a small open economy and they use calibration methods to assess its value

the economics of development a survey i the subject our definition of the subject will be the use of economic analysis to understand the economies of poor or developing countries this includes in particular how standards of living in the population are determined and how they change over time and further how policy can or should be used in the influence of these processes the definition contains in principle much or most of analytical methods in economics insofar as they can be put to use in the examination of the issues of interest this is as it should be but it poses a problem for a survey in a journal a comprehensive treatment is infeasible so we shall follow a different route the survey will focus on what i take to be the major themes and approaches which characterise the productive aspects of the subject there is therefore no pretence at being exhaustive the purpose is rather to highlight some of the advances many of these have been of real substance there are a number of possible purposes for a survey and it is important to be clear at the outset for whom it is intended what it is and what it is not this survey is addressed to economists and students of economics who know the tools of their trade but not necessarily how they have been applied to and fashioned for the analysis of the economics of developing countries it is a description of the ways in which problems can be productively formulated and approached in terms of examples chosen for their intrinsic importance and interest the vastness of the subject means that we have to be highly selective it does not seek to provide a summary evaluation of the current view of the appropriate response to immediate policy questions it is not a history of thought nor a research manifesto nor an attempt to adjudicate or settle the major debates where they arise naturally from the major purpose some judgements on these subjects will be offered but they do not themselves constitute the primary intent of this survey there are three lines of enquiry or sets of questions which have i suggest been distinctive of the most fruitful work in development economics they will

a time series analysis of representative agent models of consumption andleisure choice under uncertainty this paper investigates empirically a model of aggregate consumption and leisure decisions in which utility from goods and leisure is nontime separable the nonseparability of preferences accommodates intertemporal substitution or complementarity of leisure and thereby affects the comovements in aggregate compensation and hours worked these cross relations are examined empirically using postwar monthly u s data on quantities real wages and the real return on the one month treasury bill the estimated values of the parameters governing preferences differ significantly from the values assumed in several studies of real business models several possible explanations of these discrepancies are discussed

short term and long term interest rates in a monetary model of a small open economy abstract this paper analyzes the effects of both anticipated and unanticipated monetary and fiscal disturbances on the dynamic behavior of a monetary model of a small open economy it focuses on the adjustment of the short term and long term interest rates and the divergence of their transitional paths particularly in anticipation of these disturbances the analysis demonstrates how anticipation of a future policy change can generate perverse short run behavior the essential reason for the divergence between the short and long rates is that the latter is dominated by long term expectations while the former is primarily determined by current influences

instability of electricity demand functions in the post oil embargo period abstract the temporal stability of electricity demand functions with distributed lags is examined over the 1961 1980 period the distributed lag models considered include the partial adjustment model the unconstrained lag model and the almon polynomial lag procedure demand functions are estimated for the residential commercial and industrial sectors and tested for stability in the pre and post oil embargo period most of the demand functions estimated are statistically unstable over these periods although a partial adjustment specification of the industrial demand equation appears to be stable the income price and cross elasticities are significantly different over the subperiods for the residential and commercial demand equations

government spending and private consumption this paper investigates the macroeconomic effects of anticipations about future fiscal expenditures within a simple perfect foresight general equilibrium model this paper extends s djajic 1987 by investigating an anticipated permanent increase in government spending an anticipated permanent increase may temporarily stimulate capital accumulation the questions of whether anticipated or unanticipated changes in government spending have a larger effect on capital accumulation and output is related to the questions of whether government spending is initially above or below the optimal level

structural changes in residential energy demand abstract residential energy consumers in the usa faced several demand shocks in the 1970s and 1980s these included price rises engineered by the organization of petroleum exporting countries natural gas curtailments shortages of petroleum products and deregulation of energy markets one result of these events has been structural change in the demand for electricity and petroleum by residential consumers demand functions are now more responsive to price changes and consumers react more quickly in adjusting their capital stocks to new levels

electricity demand for south korean residential sector abstract this study estimates the electricity demand function for the residential sector of south korea with the aim of examining the effects of improved energy efficiency structural factors and household lifestyles on electricity consumption in the study time series data for the period from 1973 to 2007 is used in a structural time series model to estimate the long term price and income elasticities and annual growth of underlying energy demand trend uedt at the end of the estimation period the result shows a long term income elasticity of 1 33 and a long term price elasticity of 0 27 with 0 93 as the percentage growth of uedt at the end of the estimation period this result suggests that in order to encourage energy efficiency in the residential sector the government should complement the market based pricing policies with non market policies such as minimum energy efficiency standards and public enlightenment

government spending and the optimal rates of consumption and capital accumulation this paper investigates the effects of a temporary change in government expendit ure on private consumption and investment the model employed is one of a closed economy populated by infinitely lived utility maximizing individuals the analysis focuses on the implications of alternative assumptions concerning the relationship between public and private c onsumption in the household s utility function a temporary increase in government expenditure is found to reduce investment if public and private goods are edgeworth complements or independent however if they are substitutes there exists the possibility of an increase in investment

output effects of government purchases the theoretical analysis focuses on the distinction between temporary and permanent movements in government purchases under plausible conditions the temporary case involves an output response that is positive less than one to one with the change in government purchases and larger than that generated by an equal sized but permanent shift in purchase the equilibrium real rate of return rise in the temporary case but changes little in the permanent one defense purchases are divided empirically into permanent and temporary components by considering the role of temporary wars no temporary shifts in nondefense purchases were isolated empirical results verify an expansionary output effect for temporary purchases that exceeds that of permanent purchases the results for some other expectational hypotheses are found to be generally supportive of the theory

land tenure issues in economic development land property and construction are reckoned to account for around 20 per cent of the gross domestic product of many nations the relationship between people and the land is complex and differs between nations depending on their history culture and legal system many countries especially those in transition from command to market driven economies are re engineering their cadastral and land registration systems in order to provide cheaper faster and more secure ways of transacting land this paper focuses on the importance of land tenure arrangements and the need to manage information about land and property in support of land markets and sustainable development

a simple dynamic general equilibrium model abstract we analyse a single sector economy with h 1 infinitely lived agents that operate in a continuous time framework utility functions are recursive but not additive both efficient and perfect foresight competitive equilibrium allocations are considered the existence and stability of such allocations are investigated locally i e in a neighbourhood of steady state allocations the model is shown to be useful for explaining the distribution of wealth and consumption across agents and for analysing the way in which wealth redistribution can affect the dynamics of aggregate economic variables

postwar british economic growth and the legacy of keynes the policies used by britain to finance world war ii represented a dramatic departure from the policies used to finance earlier wars and were very different from the policies used by the united states during the war following keynes s recommendations britain taxed capital income at a much higher rate than the united states during the war and for much of the postwar period we analyze quantitatively the policies designed by keneys using an endogenous growth model and the ncoclassical growth model we also evaluate the implications of tax smoothing policies we find that the welfare costs of keynes s policies were very high relative to a tax smoothing policy and argue that britain s poor macroeconomic performance in the early postwar period is a consequence of the high tax rates levied on capital income

asymptotic behavior and optimal properties of a consumption investment model with variable time preference abstract this paper analyzes the convergence properties and the determination of an optimal consumption path in the consumption investment model of uzawa 1968 sufficient conditions for the existence and uniqueness of the optimal path are presented components of the utility functional are recovered when the optimal path is piecewise affine the model is applied to the determination of the interest rate and income distribution under time preference differentials

household production in the philippines a non neoclassical approach the starting point of any economic analysis is a microeconomic theory of the decision making unit by providing a set of explicit assumptions regarding individual choices a microeconomic theory lays the necessary foundation for the explanation of economic behavior just as a theory of the firm underlies analyses of market production a theory of the family underlies analyses of household production explanations of long run trends such as fertility decline grow out of assumptions regarding the nature of household decision making developing what they term the economic approach to human behavior gary becker and other neoclassical economists forcefully argue that household behavior is motivated primarily by a collective concern for economic efficiency they assume that households seek to maximize exogenously given joint utility functions and they hypothesize that differences in household behavior represent efficient responses to differences in the prices and incomes which households face this approach provides the foundation for an explanation of fertility decline based on long run changes in relative prices associated with economic development simply stated the argument runs as follows as the rate of return to human capital rises and levels of education increase the cost of rearing children goes up as higher wages draw women out of the household into the labor force the opportunity cost of mothers time goes up further increasing the cost of children the demand for children decreases and fertility levels gradually adjust 2 the assumption that joint utility functions are exogenous constant over time and vary randomly if at all across households is crucial to this argument systematic differences in unobservable joint utility functions could seriously confound the interpretation of observed relationships between changes in household behavior and changes in rela

habits and time preference this paper proposes a utility function incorporating both habit formation and an endogenous rate of time preference in a manner consistent with the intuition of irving fisher regarding the influence of past consumption on impatience it is shown that the ne w specification is tractable and generates new predictions in the cont ext of three model economies 1 a closed economy with heterogeneous agents 2 a small open economy with one traded good and one nontra ded good and 3 a small open economy with a traded good and domestic money copyright 1993 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

poverty and progress reflections on housing and urban policies in developing countries 1976 96 the habitat ii conference in june 1996 was more determined by retrospect and prospect than by the discussions during the several days in istanbul the policy outcomes were fashioned by reforms and

the estimation of short run household electricity demand using pooled aggregate data short run household electricity demand has been estimated with conditional demand models by a variety of authors using both aggregate data and disaggregate data disaggregate data are most desirable for estimating these models however in many cases available disaggregate data may be inappropriate furthermore disaggregate data may be unavailable altogether in these cases readily available aggregate data may be more appropriate this article develops and evaluates an econometric technique to generate unbiased estimates of household electricity demand using such aggregate data

stagnating energy efficiency in the swedish building sector economic and organisational explanations the development towards higher energy efficiency in the swedish building sector stagnated in the late 1980s and 1990s in new buildings the average specific energy use for heating is twice as high as in the best performing buildings 20 years ago by combining econometric studies and interviews with actors in the building sector we analyse the underlying economic and organisational causes for this development in the stock of buildings specific energy use for heating kwh m2 yr has a high correlation with increasing energy prices and price elasticities have not changed markedly over time this implies that the stagnation to a large extent can be explained by energy price trends on the contrary in new buildings the correlation between energy prices and specific energy use is much weaker one important cause of low sensitivity to price changes is that information about the life cycle cost lcc of different investment alternatives is often not available to the involved actors the most common investment criterion is instead the requirements of the national building energy standard which has developed into a norm rather than a minimum for energy performance in this paper we also discuss potential improvements in the learning processes within the sector

government purchases and real interest rates with endogenous time preference abstract the observation of low real interest rates during periods of high temporary government purchases such as wars can be reconciled with the neoclassical growth model extended to allow for endogenous time preference temporary increases in government purchases lead to a fall in the instantaneous rate of time preference this may result in rising investment and falling real interest rates along an adjustment path

government spending interest rates and capital accumulation in a two sector model this paper investigates dynamic impacts of a temporary fiscal expansion in a two sector growth model if the expansion falls on consumption investment commodities capital accumulation can be either promoted or reduced and the short term interest rate unambigu ously rises if the expansion falls on consumption commodities capital accumulation is crowded out and the short term interest rate declines during the period of the fiscal expan sion it is also shown that fiscal spending on the consumption commodity can move the short and long term interest rates in opposite directions jel classification e43 e62 041

economic development and time preference schedule the case of japan and east asian nics the constancy of the time preference rate has been a traditional assumption of the literature on intertemporal choice of consumers this chapter examines empirically the validity of the constancy hypothesis of the time preference schedule three alternative hypotheses concerning the time preference rate are investigated the first hypothesis posits that the time preference rate decreases as the economy develops fisher hypothesis the second hypothesis posits that the time preference rate increases as the economy develops uzawa hypothesis the third hypothesis which is a combination of the second and third hypotheses posits that as a nation develops the time preference rate decreases up to a certain point and thereafter the time preference rate increases fukao hamada hypothesis post war annual time series data from taiwan japan and korea are employed to examine these hypotheses i find that the fukao hamada hypothesis is supported for taiwan and japan while the time preference rate is constant for korea

estimating residential demand for electricity in the united states 1965 2006 abstract this paper examines the residential demand for electricity in the us economy as a function of the per capita income the price of electricity the price of oil for heating purposes the weather conditions and the stock of occupied housing over the period 1965 2006 this paper has two novelties first the occupied stock of houses as a proxy for the stock of electrical appliances and second the identification of a possible equilibrium relationship among the variables is ascertained through the recently advanced ardl approach to cointegration our empirical findings give support to a stable long run relationship implying also short run and long run elasticities whose size and sign are comparable to other similar studies

estimating short and long term residential demand for electricity new evidence from sri lanka this study investigates the short run dynamics and long run equilibrium relationship between residential electricity demand and factors influencing demand per capita income price of electricity price of kerosene oil and price of liquefied petroleum gas using annual data for sri lanka for the period 1960 2007 the study uses unit root cointegration and error correction models the long run demand elasticities of income own price and price of kerosene oil substitute were estimated to be 0 78 0 62 and 0 14 respectively the short run elasticities for the same variables were estimated to be 032 0 16 and 0 10 respectively liquefied petroleum lp gas is a substitute for electricity only in the short run with an elasticity 0 09 the main findings of the paper support the following 1 increasing the price of electricity is not the most effective tool to reduce electricity consumption 2 existing subsidies on electricity consumption can be removed without reducing government revenue 3 the long run income elasticity of demand shows that any future increase in household incomes is likely to significantly increase the demand for electricity and 4 any power generation plans which consider only current per capita consumption and population growth should be revised taking into account the potential future income increases in order to avoid power shortages ill the country

the permanent income hypothesis and consumption durability analysis based on japanese panel data the permanent income hypothesis with durability of commodities is tested on a panel of about 2 000 japanese households for several commodity groups under static expectations about real interest rates and for some class of utility functions consumption which is a distributed lag function of current and past expenditure follows a martingale main empirical results are i the durability of commodities usually classified as services is substantial ii the hypothesis applies to about 85 percent of the population consisting of wage earners and iii income changes explain only a small fraction of the movements in expenditure

macroeconomic policy exchange rate dynamics and optimal asset accumulation the paper develops a model of exchange rate and current account determination for a small economy peopled by infinitely lived utility maximizing households in this setting a central bank purchase of foreign exchange has no real effects when central bank foreign reserves earn interest at the world rate and proceeds are returned to the public in contrast an increase in the monetary growth rate does have real effects even in the long run the model developed here implies that an increase in government spending may lead to a surplus on current account the external adjustment process predicted by the model is one in which consumption real balances and external assets all rise or fall simultaneously

government spending and capital accumulation with endogenous time preference this paper extends s djajic 1987 to allow for an endogenous rate of time preference and reexamines djajic s experiment how the optimal rates of private consumption and capital accumulation will respond to an unanticipated temporary expansion in government spending the key factors determining the adjustment patterns are the difference between the marginal utility of private consumption and that of public spending the timing of policy reversion and the relationship between private and public consumption in household utility if private and public consumption are edgeworth independent whether investment increases with the length of fiscal expansion depends on whether the marginal utility of private consumption exceeds that of public consumption

the demand for electricity and natural gas in the northeastern united states the demand for natural gas and electricity for the residential commercial and industrial sectors was estimated using a combination of the error components model and seemingly unrelated regressions the estimated demand models showed both natural gas and electricity to be price elastic in the long run and price inelastic in the short run in all sectors except the commercial sector in which electricity demand is unresponsive to its own price natural gas had negligible income elasticities in the residential and commercial sectors and a long run income elasticity of 2 86 in the industrial sector electricity had an insignificant income effect in all sectors but the industrial where its long run elasticity was unitary only in the residential demand for natural gas is the cross price elasticity substantial with the price of electricity having a long run cross elasticity of 1 70 fuel oil prices generally had a negative impact probably indicating a large income effect the elasticities of adjustment were higher for natural gas than electricity indicating a faster adjustment to change either in response to greater instability in energy availability or reflecting more alternative fuels or both 16 references 4 tables