a model of rental housing choices in the korean market the main purpose of this study is to propose and estimate a model of korean rental housing choice using hierarchical logit analysis the study focuses on the examination of how households choose their dwelling units in a complex rental housing market the decision is viewed as a partial sequence process beginning with the choice of rental housing tenure and finishing with a decision on the type of occupation to examine an additional step in the urban spatial structure hedonic price technique is incorporated into a hierarchical logit model in addition the separate effects of permanent and transitory components of measured income are examined through the instrumental variables method based on human capital theory it is shown that the proposed model provides a potentially more useful method than another model the multinomial logit in analysing the korean rental housing market

housing careers in the united states 1968 93 modelling the sequencing of housing states the research in this paper focuses on the housing career during a household s life course the housing career is the sequence of housing states defined in terms of tenure and the quality price of t

pricing risk adjusted deposit insurance an option based model this paper presents a methodology for arriving at empirical estimates of deposit insurance premiums from market data by using isomorphic relationships betweeen equity and a call option and insurance and a put option the data utilizes the market value of equity to solve for the asset value and its volatility market perceptions of fdic bailout policies are explicitly modeled so as to eliminate the bias in inverted values of assets and their volatility sensitivity analyses are performed to show that rank orderings based on premiums are robust to changes in specification thus facilitating allocation of aggregate premium across banks while economists have long argued in favor of risk adjusted deposit insurance as both more equitable and more efficient than the current system of flatrate premiums various recent developments have further contributed to an increasing dissatisfaction with the current system first both the banking industry and the government seem to be tending to the view that deregulation of the banking industry would be necessary in order to meet more sophisticated future demands on the industry as well as desirable as a policy means of stimulating greater competition among banks moreover a sudden rise in the incidence of bank failures 1 and the vulnerability of the u s banks to the socalled international debt crisis have served to bring to the fore concern about the health of the banking industry in the absence of deposit insurance riskier banks will be able to attract deposits only at higher rates and these higher costs of funding serve as built in market regulated incentives to limit excessive risk taking by banks as introduction of deposit insurance makes deposits equally risk free across banks these incentives disappear and regulation and close supervision of the banking industry must necessarily replace them as deterrents to excessive risk taking thus when insurance is offered at a flat premium regulation is designed to ensure that the risk posed to the insurer both asset and financial risk is appropriately uniform

comparative analysis of the social demographic and economic factors that influenced housing choices in spain in 1990 and 2000 the housing market is an important sector in the economy of any country residential demand also referred to as housing consumption depends on many demographic and social characteristics of the country s population and is also related to economic factors the aim of the present paper was to evaluate the joint effects of economic demographic and social factors on household behaviour with respect to housing choices in addition an attempt was made to determine the impact of recent economic and structural changes in spanish society in 1990 and 2000 on residential demand it was found that the consequences of these structural changes will have medium and long term effects on housing demand and that the current economic situation has significantly affected the short term changes in this demand

the valuation of sequential exchange opportunities sequential exchange opportunities are valued using the techniques of modern option pricing theory the vehicle for analysis is the concept of a compound exchange option this security is shown to exist implicitly in several contractual settings a valuation formula for this option is derived the formula is shown to generalize much previous work in option pricing several applications of the formula are presented

the relative pay of public and private sector employees 1970 1984 this paper provides a more accurate picture of the changes that have taken place in the r elative pay of public and private sector employees than has hitherto been revealed changes in effective hourly rates of pay which abstra ct from changes in both the age and occupation composition of the wor kforce are used as the basis against which movements in the public p rivate sector pay differential are assessed copyright 1987 by oxford university press

deposit insurance and moral hazard problem the case of turkish banking system we investigate the effect of full deposit insurance introduced in 1994 on the financial performance of turkish commercial banks we construct a model under reasonable assumptions with deposit insurance where banks undertake excessive risk moral hazard risk empirical investigation using experimental design approach supports our moral hazard hypothesis our findings indicate that banks subject to the moral hazard behaviour show significant increases in foreign exchange position risk and deterioration in capital adequacy relative to their benchmark after introduction of full deposit insurance system we relate this excessive risk taking to the moral hazard behaviour by commercial banks the research results indicate that complete deposit insurance system distorts the incentive structure of commercial banks and thus prevents proper functioning of market discipline mechanism and leads to the taking excessive risk taking

dwelling unit choice in a condominium complex analysis of willingness to pay and preference heterogeneity we study the choice of dwelling units in a condominium complex a problem that has not been thoroughly investigated in the housing research literature we take a revealed preference approach to quantify home buyers preference toward attributes associated with a dwelling unit in particular we estimate a mixed logit model using the hierarchical bayes approach based on the markov chain monte carlo method we derive the willingness to pay measures for detailed attributes associated with a dwelling unit including its floor level orientation location in the complex location on a floor level and the type of bathrooms we also find strong evidence for the preference heterogeneity among home buyers and conduct regression analysis to explain the preference heterogeneity using home buyers socioeconomic characteristics our results show that home buyers with older ages and higher annual household income tend to focus more on the quality of the dwelling units while first time home buyers are more willing to accept dwelling units with less desirable attributes

the limitations of market value accounting and a more realistic alternative abstract market value accounting mva might improve market and regulatory discipline on financial institutions unfortunately there are serious conceptual measurement and incentive problems with implementing mva that have not received significant attention these problems are suggested by the theory of asymmetric information and the role intermediaries play in solving information and monitoring problems after analyzing the problems with mva we develop an alternative approach that applies mva principles where they are most feasible and uses a statistical procedure where asymmetric information problems make mva particularly problematic an empirical analysis suggests that this procedure may substantially improve the distribution of regulatory discipline

modelling the choice of tenure and building type a multinomial logistic mnl model and a naive nested logistic model are estimated to relate differences in household size age income and housing prices to differences in the choice of tenure and building type the estimated models show that the demand for lower density options decreases with a reduction in household size and increases with increasing age and real income higher rents increase the demand for owner occupied single family detached houses higher price levels for the ownership option shift demand toward all of the higher density options particularly toward high rise rental apartments the key assumption underlying the mnl model is examined and shown to not hold true however the differences in the predictions made by the two models are too small to matter in the study of the choices among the major building types issues regarding the choice of models are discussed in the conclusions

appearance and reality in deposit insurance the case for reform abstract this paper argues that the staffs and explicit insurance reserves of u s deposit insurers have been overwhelmed by de facto financial disaster the full costs of financing federal deposit insurance have become enormous and increasingly inequitable in distribution to reduce voluntary risk taking authorities must reprice and redesign the system of de facto deposit insurance coverage six complementary reforms are discussed 1 accounting for institutional assets liabilities and net worth at market value 2 enhancing opportunities for deposit insurers to manage their risk exposure 3 recalibrating insurance coverages 4 imposing risk rated premiums 5 mixed private and governmental competition in deposit insurance and 6 constraining insurance agency and federal reserve authority to bail out insolvent institutions

gender differences in housing demand this study examines the effect of gender differences in household formation tenure choice housing expenditure and location in vancouver and toronto it shows that the continuing increase in women s income prospects and career orientation will reduce family formation fertility and divorce rates and change housing demand in ways that will affect the growth and character of large canadian cities without in migration the demand for rental housing will decline while the demand for inner city condominiums will grow substantially as women s income prospects approach those of men s the proportion of non family households will continue to increase but the demand for single family suburban houses will continue to grow as the increase in income raises the propensity of both men and women family and non family to buy suburban houses the main reduction will be in the demand for higher density suburban housing the elimination of differences in employment opportunity and career outlook between men and women

housing and urban location decisions in spain an econometric analysis with unobserved heterogeneity this paper examines the simultaneous individual choices in spain as regards housing tenure choice and demand and urban location decisions taking into account certain unobserved heterogeneity exhibited by individuals a multinomial mixed logit model is proposed to portray household decisions considering four different options homeownership according to the type of urbanisation of the neighbourhood high level urban property medium inferior level urban property and rural property and renting finally housing demand is estimated controlling for sample selection the results confirm that both housing tenure and urban location in addition to the unobserved heterogeneity of individuals in this context could modify appreciably housing demand estimates for both owners and renters

did amakudari undermine the effectiveness of regulator monitoring in japan the principal agent problem between the regulator regulated banks and taxpayers is critical to the viability of the financial system s safety net there exists the danger that the regulator will collude with regulated banks to pursue their benefits at the expense of taxpayers thereby reducing effectiveness of financial supervision this paper proposes that the human relationship prevailing between the regulatory authorities and private banks referred to as amakudari is a form of collusion between the regulator and banks that endangers the safety net mechanism in japan statistical analysis of data on regional banks shows that those banks accepting post retirement officials from the ministry of finance have reduced capital adequacy levels and increased non performing loans thus the statistical result supports the hypothesis proposed in this paper

the s l debacle public policy lessons for bank and thrift regulation this book describes the period of failures of savings and loan associations and sets out a program of policies to prevent future debacles it explains the regulatory actions and inactions that created the incentives for large numbers of thrifts to make excessively risky and ill conceived and in some cases fraudulent and criminal investments it describes the failure of the accounting system to provide adequate information to regulators and in many cases even to the managers of the thrifts themselves concerning the health and riskiness of individual thrifts it also discusses how the regulatory system that had been conceived in an earlier and highly regulated era was overwhelmed in the deregulated environment of the early 1980s it shows how the reforms that were made in response to the growing crisis were too little and too late and finally it offers a set of policy reforms that could prevent future crises in the savings and loan industry this work should be of interest to political and financial economists

a contracting theory interpretation of the origins of federal deposit insurance conventional wisdom holds that the enactment of federal deposit insurance helped small rural banks at the expense of large urban institutions this paper uses asymmetricinformation agency cost paradigms from corporate finance theory and data on bank stock prices to show how deposit insurance could and did help stockholders of large banks the broadening stockholder distribution of large banks during the stock market bubble of the late 1920s undermined the efficiency of double liability provisions in controlling incentive conflict among large bank stakeholders federal deposit insurance restored depositor confidence by asking government officials to take over and bond the task of monitoring managerial performance and solvency at u s banks

an alternative test of the hedonic theory of housing markets abstract in this paper the hedonic theory of housing markets is used to generate a multinomial logit model of household behavior in an urban housing market application of hedonic theory to housing markets is by now fairly familiar and a link to multinomial logit has also been established however by emphasizing more heavily the bid price interpretation of hedonic theory this paper develops a new connection to econometric estimation that essentially involves running the usual logit equations in reverse one advantage of this approach is that the link between the logit equations and hedonic theory involves bid price rather than utility functions and this in turn permits the empirical results to be given an extremely clear interpretation furthermore in contrast to the standard logit model the extreme value distribution required to justify the estimation technique emerges endogenously as part of the analysis

determinants of canadian headship rates this article shows how regional differences in household formation relate to differences in income and housing prices it presents an assessment of the effect of housing prices and income expectations on household formation decisions gender differences are revealed differences between spatial and temporal variation in headship rate changes are illustrated along with the inappropriateness of using coefficients obtained through cross sectional analysis in forecasting exercises or impact assessments normative conclusions are developed

the central government private sector wage differential since ehrenberg and schwarz 1986 there has been a plethora of articles investigating the relationship between public and private sector wages this article examines part of this post 1986 literature by reviewing articles that examine central government private sector wage differentials in sum most articles find that there is a premium paid to central government workers although the premium has declined in recent years in developing countries however the differential is usually negative women and minorities tend to do better in the public sector relative to their private sector counterparts the evidence on union premiums between sectors is mixed although the premium tends to be higher in the private sector however public sector union workers do not do much better than private sector union members the magnitude of all of the wage differentials discussed are sensitive to the estimation technique and data source used the most common explanation for the public sector wage premium is economic rent accruing to government workers although the public sector wage determination literature suggests that the differential is due to returns to political and vote producing activities not relevant in the private sector

three paradigms for the role of capitalization requirements in insured financial institutions standard models for deposit insurance strike analogies to more familiar financial contracts and conceive of risk as exogenous the oldest model of deposit insurance likens it to passively underwriting casualty insurance a more sophisticated but still bilateral model likens deposit insurance to writing a passive put option on the enterprise whose funding is insured delays in acknowledging the wreck of the s l industry and its federal insurer fslic discredit these models as guides to managing a deposit insurance fund deposit insurance is better interpreted as a trilateral performance bond that enhances the credit of an insured institution this interpretation endogenizes risk emphasizes incentive conflict and underscores the need to optimize loss control activity the bonding model clarifies that a subset of the monitoring and disciplinary activities traditionally undertaken by government officials can usefully be privatized

federal deposit insurance regulatory policy and optimal bank capital this paper seeks to explain the combination of explicit and implicit pricing for deposit insurance employed by the fdic essentially the fdic sells two products insurance and regulation to span the product space it must and does set two prices we argue that the need to establish regulatory disincentives to bank risk taking is the heart of the controversy over the adequacy of bank capital and that the ability to close risky banks before exhausting their charter value i e the value of their right to continue in business stands at the center of these disincentives and in front of the fdic s insurance reserves just as a book shouldn t be judged by its cover a government agency shouldn t be judged by the words behind its initials with the fdic federal deposit insurance corporation the agency s name describes only part of its formal operations the fdic is quasi governmental has a regional structure and sells deposit insurance however the initials fail to convey the fdic s critical place in the governmental regulatory structure as the sole federal overseer of the approximately 8900 state chartered commercial banks that have chosen not to belong the federal reserve system reflecting the federal reserve s membership problem the number of these banks is growing year by year besides selling deposit insurance at bargain explicit rates the fdic performs four regulatory functions 1 entry regulation it passes on new banks applications for deposit insurance and on branch and merger proposals as well thereby protecting the value of existing bank charters 2 examination two thirds of fdic employees are concerned with inspecting bank records and supervising managerial activity 3 regulation of deposit rates and conditions for withdrawal by tradition fdic policies on these matters conform entirely with regulations applicable to federal reserve member banks and 4 disposition of failed banks when an insured bank fails the fdic usually chooses not to liquidate it 2

management of common property resources limits to voluntary collective action this paper finds that the voluntary collective action may be an alternative to market and government in the management of common property resources in developing countries the people s capabilities to harness the preserved commons and the fairness in the appropriation of benefits from them are the limits on the voluntary collective action it shows that collective action is possible if an outside agency plays the role of a catalyst in mitigating these limits it also shows that there can be mutually beneficial sharing arrangements between government and village communities for the management of local forest resources the standard result that common and state property resources turn into open access resources as population grows also holds good for the natural resources jointly managed by government and people

deposit insurance around the world in the past two decades in a series of banking crises around the world banks have become systematically insolvent these crises have occurred in developed and developing economies alike to make such financial system breakdowns less likely and to limit their costs if they occur policymakers feel the need for financial safety nets these include such policies as implicit or explicit deposit insurance a lender of last resort function of the central bank bank insolvency resolution procedures and bank regulation and supervision of these policies explicit deposit insurance has been gaining popularity in recent years since the 1980s the number of countries with explicit deposit insurance schemes almost tripled with most oecd countries and an increasing number of developing economies adopting some form of explicit depositor protection in 1994 deposit insurance became the standard for the newly created single banking market of the european union establishing an explicit deposit insurance scheme became part of the generally accepted best practice advice given to developing economies

the valuation of fdic deposit insurance using option pricing estimates when congress set the premium rate for fdic deposit insurance in the banking act of 1935 which authorized a permanent federal insurance system neither experience nor theory could offer much guidance regarding an appropriate fee structure although rates have since been periodically revised the fdic has yet to attempt to set the insurance rate at a ifair level that is a level equal to administrative costs plus the ex ante value of the insurance such a premium is the rate that would be charged by competitive private insurers however7 the garn st germain act of 1982 directed the fdic to consider the feasibility of a risk based premium structure in response the fdic has suggested a trial system in which each insured bank will be placed in one of three risk classes based on credit and interest rate risk relative to capital and a premium rate will be assigned to each group those rates will be determined in part by the loss experience of the entire banking system fdic 1983 another approach to the determination of the appropriate insurance premium has been offered by merton 1977 who suggested using the analogous relationship between deposit guarantees and put options to value fdic insurance in this paper we follow merton s suggestion and calculate bank specific estimates of the proper premium for deposit insurance for the banks in our sample we find that fdic rates greatly exceed estimates of the fair value of the insurance derived from the blackscholes 1972 option pricing model

the congressional bureaucratic system a principal agent perspective with applications to the sec this paper provides the theoretical perspective and empirical support for congressional dominance of agency decisions my thesis is twofold first because much of the previous evidence on this question is not evidence at all many scholars intuition and conclusions are based on a logically flawed foundation second i have provided here and in previous work a look at a variety of different agencies and in each case have shown how the events can plausibly be interpreted as involving congress agency problems within the congressional bureaucratic system are real and substantial just as they are within corporations however as in the latter institutional forms develop within the congressional system to partially if not wholly mitigate these problems the logical perspective together with the evidence provide a strong case against the agency dominance hypothesis as typified by the early sections of niskanen 1971 and wilson 1980

on discrete choice models of housing demand abstract this paper explores several specifications of discrete choice models in estimating housing consumption for purposes of projection and policy simulation we view housing consumption comprehensively as it includes the choice between three types of homeownership five types of rented housing and as a ninth alternative not heading a household the familiar multinomial logit specification is rejected by several specification tests the paper therefore studies a variety of nested multinomial logit models of hierarchical choice that allow a richer substitution pattern among the very disparate housing choices enumerated above estimations of different nesting structures reveal strong and plausible differences among nesting structures

restoring banking stability beyond supervised capital requirements emerging economies have been particularly prone to financial sector crises reflecting marked information asymmetries and political interference as well as the substantial volatility in underlying economic conditions and the vulnerability of banking and finance when structural economic changes create a new and uncharted operating environment the standard regulatory paradigm relies mainly on supervised capital adequacy but it may not be enough other measures to improve the incentive structure for bankers regulators and other market participants could effectively increase the number of concerned skilled and watchful eyes intermittent application of supplementary blunt instruments could also be useful

is fairly priced deposit insurance possible we analyze risk sensitive incentive compatible deposit insurance in the presence of private information and moral hazard without deposit linked subsidies it is impossible to implement risk sensitive incentive compatible deposit insurance pricing in a competitive deregulated environment except when the deposit insurer is the least risk averse agent in the economy we establish this formally in the context of an insurance scheme in which privately informed depository institutions are offered deposit insurance premia contingent on reported capital the result holds for alternative sorting instruments as well this suggests a contradiction between deregulation and fairly priced risk sensitive deposit insurance this paper exposes a conflict between a deregulated competitive financial services industry on the one hand and fairly priced risk sensitive deposit insurance on the other we show that if depository institutions dis are perfectly competitive i e each makes zero profits on average then it is impossible to implement incentive compatible risk sensitive deposit insurance pricing recent distress among dis has fueled debate about reform of the existing deposit insurance system many believe that the prevailing risk insensitive premium structure encourages dis to choose excessively risky assets and that it should be replaced by deposit insurance premia linked to the dis choices of risk 2 risk sensitive deposit insurance pricing however imposes greater informational demands on the deposit insurer and runs afoul of both

optimal bank reorganization policies and the pricing of federal deposit insurance optimal dynamic regulatory policies for closing ailing banks and for deposit insurance premia are derived as functions of the rate of flow of bank deposits and interest rate on deposits the economy s risk free interest rate and the regulators bank audit administration costs under competitive conditions the threshold assets to deposits ratio below which a bank should be optimally closed is shown to be greater than or equal to one optimal deposit insurance premia and probabilities of bank closure are shown to be nondecreasing in the bank s risk on investment and nonincreasing in the bank s current assets to deposits ratio should regulatory agencies close reorganize an ailing federally insured financial institution if so when the recent record rate of failures of savings and loans associations s ls has renewed the urgency of this question the regulatory agencies are empowered but not required to reorganize financial institutions that are statutorily insolvent i e have zero or negative regulatory net worth recently regulators have in many instances permitted insolvent financial institutions to remain in operation 2 also while debating on the increase of the proposed funding of the federal deposit insurers the u s congress argued whether it would be desirable and if so when to close more s ls thus when regulators should close a troubled financial institution has become a major question of bank regulatory policy while the existing academic literature provides powerful insights into the structure and pricing of the insurers liability this literature offers very little guidance regarding the timing of bank reorganizations 3 indeed to the best of our knowledge the value of the federal

location choice and labour market perceptions a discrete choice study henley a carruth a thomas a and vickerman r 1989 location choice and labour market perceptions a discrete choice study reg studies 23 431 445 the location of industry in an economy raises many important issues for economists and governments interested in economic efficiency and equity one interesting question is whether economic factors have an important role to play in explaining location patterns this paper uses a survey data set of uk establishments in growth activities it implements a discrete choice framework to contrast the performance of economic variables with that of establishments perceptions about these economic conditions in explaining location choice henley a carruth a thomas a et vickerman r 1989 le choix de localisation et les perceptions du marche de l emploi une etude par choix discret reg studies 23 431 445 dans une economie la localisation de l industrie souleve de nombreuses questions importantes a la fois pour les economistes et pour les gouvernements qu

misleading comparisons of homeownership rates when the variable effect of household formation is ignored explaining rising homeownership and the homeownership gap between blacks and asians in the us despite ominous signs of housing market stress in the us the homeownership rate reached an all time high in 2006 the conventional definition of homeownership which is based on the share of households and ignores the effects of variable household formation confounds the measurement of success in achieving homeownership it is found that from 1990 to 2006 declining household formation led to an elevated homeownership rate in the us and that this effect varies substantially between racial ethnic groups asians who achieve high homeownership rates have the lowest propensity to form independent households in sharp contrast to african americans asians do not have better access per capita to owner occupied housing than do blacks the conventional measure of homeownership is an incomplete measure of homeownership opportunity because it fails to account for variable household formation the changing population mix in the us includes groups with different propensities for household formation thus confusing future assessments of homeownership and the housing market

a reexamination of the over or under pricing of deposit insurance this study shows how fair deposit insurance premia can be calculated using data on bank stock prices interest rate movements and income and balance sheet accounts fair insurance premia are estimat ed under the alternative assumptions that the fdic provides either a limited term variable rate or unlimited term insurance cont ract to banks the paper s results suggest that for nearly all of the large commerical banks in the sample the actual insurance premium c harged by the fdic falls between the bounds of fair limited term and unlimited term insurance premia copyright 1987 by ohio state university press

determinants of thrift institution resolution costs this paper provides a detailed examination of the cost imposed by thrift institutions resolved during the period 1980 1988 a simple model is presented to explain the cost of resolution this model is tested empirically with a comprehensive data set that permits us to avoid some of the econometric problems present in earlier studies the empirical evidence suggests that the model that explains resolution costs in the late 1980s is significantly different from the model for either the middle or early 1980s this evidence is consistent with the changing nature of the thrift crisis and changes in the regulator s closure rule our econometric evidence moreover is consistent with the hypothesis that for troubled institutions tangible net worth systematically understates market value net worth in addition the importance of including time effects as well as institution effects as determinants of the cost of resolution is revealed the sharp increase in market interest rates in late 1979 and early 1980 and the deregulation of deposit rates led to record losses in the thrift industry in the early 1980s and to a major erosion of the industry s capital many institutions never fully recovered from these problems and most currently insolvent thrift

insurance markets with loss prevention activity profits market structure and consumer welfare this article considers the joint production of insurance protection and loss prevention by insurers we first examine the loss distribution of consumers that is potentially the most profitable for insurers unlike in the preponderance of the insurance literature which assumes cost based pricing of insurance policies we allow the insurer to charge whatever price the market will bear we then examine the expected profit maximizing strategy of assumes cost based pricing of insurance policies we allow the insurer to charge whatever price the market will bear we then examine the expected profit maximizing strategy of the insurer in several different market settings whether the insurance protection and loss prevention services can be perfectly bundled plays a key roll in the insurer s pricing decision we consider consumer welfare under various market settings and demonstrate that a consumer may be better off when the insurance market is monopolistic rather than competitive finally we consider whether monopoly power in the loss prevention market leads to monopoly power in an otherwise perfectly contestable insurance market we also show conditions under which a loss prevention monopolist would increase expected profit by integrating into the insurance market

fair insurance guaranty premia in the presence of risk based capital regulations stochastic interest rate and catastrophe risk abstract a multiperiod model is developed to measure the costs posed to the guaranty fund in a setting that incorporates risk based capital regulations interest rate risk and the possibility of catastrophic losses the guaranty contract is modeled as a put option on the asset of the insurance company with a stochastic strike price and an uncertain maturity the impacts of the key factors of this model are examined numerically and shown to make material differences in the costs to the guaranty fund

does deposit insurance improve financial intermediation evidence from the russian experiment this study examines how the introduction of deposit insurance affects depositors and banks using the deposit insurance scheme introduced into the russian banking system as a natural experiment the fundamental research question is whether the introduction of deposit insurance leads to a more effective banking system as evidenced by increased deposit taking and decreased reliance upon state owned banks as custodians of retail deposits we find that banks entering the new deposit insurance system increase both their level of retail deposits and their ratios of retail deposits to total assets relative to banks that do not enter the new deposit insurance system these results hold up in a multivariate panel data analysis that controls for bank and time random effects the longer a bank has been entered into the deposit insurance system the greater is its level of deposits and its ratio of deposits to assets moreover this effect is stronger for regional banks and for smaller banks we also find that implementation of the new deposit insurance system has the effect of leveling the playing field between state owned banks and privately owned banks finally we find strong evidence of moral hazard following implementation of deposit insurance in the form of increased bank risk taking financial risk and to a lesser degree operating risk increase following implementation

discrete choice modelling of urban housing markets a critical review and an application the housing choice literature is a vast area of housing research which has resulted in giant leaps forward in recent years in terms of its econometric modelling this is due in large part to the significant increases now available in computing power allowing researchers to combine the latest advances in theory with empirical application this paper brings together and critically reviews the housing choice literature and techniques that have been used to model the household s housing choice decision the basic multinomial logit model is reviewed alongside the more recent advances in discrete choice modelling the nested multinomial logit model and the heteroscedastic extreme value model the various techniques are illustrated using data from the australian census of 1986 and 1996 to model housing choice in sydney the results show that careful consideration must be given to the assumptions underlying any chosen modelling technique if one is not to draw misleading conclusions from the analysis

the pricing of deposit insurance considering bankruptcy costs and closure policies the paper aims to study the pricing issue of deposit insurance with explicit consideration of bankruptcy costs and closure policies full coverage from deposit insurance is imposed by many regulators to stabilize the banking system in the current financial crisis despite of the potential moral hazard problems we argue that bankruptcy cost is an important factor in pricing deposit insurance especially when the insured institution is insolvent applying the isomorphic relationship between deposit insurance and put option we first derive a closed form solution for the pricing model with bankruptcy costs and closure policies then we modify the barrier option approach to price the deposit insurance in which the bankruptcy cost is set as a function of asset return volatility and more realistic closure policies considering possible forbearance can be accounted for the properties of the models are supported by numerical simulations and are consistent with the risk based pricing scheme

the housing ladder the housing life cycle and the housing life course upward and downward movement among repeat home buyers in a us metropolitan housing market this research models us home owners decisions to move up or down in price the models are based on three common conceptualisations the housing ladder the housing life cycle and the housing life

joint choice of tenure and dwelling type a multinomial logit analysis for the city of chongju this paper explores the plausible variables that influence choices in the chongju housing market a joint model of tenure and dwelling type is estimated within the multinomial logit framework the