the impact of rent control on tenure discounts and residential mobility it is widely believed that rent control leads to a decline in the quality of rental housing this study examines the effect of rent control on the quality of rental housing in new york city quality change is linked to the suppression of rent below

learning from failure towards an evolutionary model of collaborative ventures this paper reports on a longitudinal case study of the interaction between two partners to a failed international joint venture we develop a model of the collaboration process in partnership and alliances based on earlier work by ring and van de ven 1994 and by doz 1996 we employ a series of events that occurred in the course of the relationship as the unit of analysis in order to trace the interactions between the partners and to explicate the impact that external shocks have on their perceptions of efficiency and equity the impact of these events as well as the responses they elicit on the quality of the relationship and vice versa are also considered we find that the partners assessments cause them to either engage in renegotiation of the terms of the contract or to modify their behavior unilaterally in an attempt to restore balance to the relationship the process feeds back until a new mutual understanding of equity is restored or else the relationship deteriorates gradually until a point when the venture is dissolved we conclude that positive feedback loops are critical in the evolutionary process that relationship quality is both an outcome and a mediating variable and that procedural issues are critical from the start in fostering a climate for positive reinforcement and the building of mutual trust and confidence in the relationship

permanent income hedonic prices and demand for housing new evidence abstract housing demand is examined by looking quite specifically at the income and price variables based on individual household data permanent and transitory incomes are computed through instrumental variables related to human and nonhuman wealth a price is constructed by spatially varying hedonic techniques separation of measured income into permanent and transitory components substantially improves the predictive power of the housing demand estimation and leads to demand elasticities of 1 and 1 with respect to permanent income and price the permanent income elasticity is roughly twice the measured income elasticity

partner nationality and the structure performance relationship in strategic alliances the dramatic growth of global strategic alliances between firms is fundamentally reshaping the nature of international business indeed interfirm cooperation has become a crucial component of the pursuit of global competitive advantage yet such alliances are enormously complex to manage successfully in part because of the opportunity and incentive to cheat and profit at the partner s expense that is an inescapable part of these relationships consequently strategic alliances are frequently subject to high instability poor performance and premature dissolution thus an important question arises is it possible to promote more stable cooperation and higher alliance performance through a realignment of companies incentives this question is addressed empirically in the present paper using recent work in game theory which suggests that high performance is linked to specific elements of the alliance structure further this study applies insights from international business literature suggesting th

control and performance of international joint ventures control is a critical concept for successful management and performance of international joint ventures ijvs this paper reviews and synthesizes prior studies addressing the conceptualization and operationalization of control within ijvs as well as the ijv control performance relationship the paper also presents a new conceptualization of ijv control as well as a conceptual frame work for studying control of ijvs

an empirical investigation of alternative approaches to estimating the equilibrium demand for housing two approaches to estimating the desired or equilibrium housing demand parameters have been utilized in recent literature one approach commonly referred to as the conventional model assumes that households continuously consume their temporal equilibrium housing services where a temporal equilibrium is defined with respect to the household s current economic and demographic characteristics based upon this assumption conventional demand studies have employed random samples which include a majority of households that have not recently moved see lee and kong 6 or carliner 2 a problem with this approach is its failure to recognize moving costs households must pay to alter their housing service consumption the existence of moving costs suggests that households may not respond rapidly to changes in their desired consumption of housing but instead remain in their dwelling unit until the cost incurred from consuming the non equilibrium level of services exceeds the cost of relocating if so demand samples employed in conventional studies may include a significant number of disequilibrium observations this causes two problems first there exist measurement errors in independent variables that have changed since the household was last in equilibrium second the true equilibrium effect of an independent variable may be incorrectly estimated due to its correlation with either the occurrence of disequilibrium or the length of the housing adjustment lag the second approach to estimating the equilibrium parameters attempts to minimize these problems by restricting the sample to households that have recently moved see hanushek and quigley 3 or aaron l

liquidity constraints and housing prices theory and evidence from the va mortgage program abstract this paper employs a simple intertemporal model to show that presence of liquidity constraints can depress the price of a durable good below its net present rental value regardless of the overall supply elasticity the existence of price effects implies that the relaxation of liquidity constraints is not pareto improving and may in fact be regressive historical evidence which exploits the fact that a clearly identifiable group war veterans enjoyed the most favored access to mortgage credit after world war ii supports the model the results suggest that more recent mortgage market innovations have served primarily to increase prices rather than home ownership rates and that such innovations have the potential to exacerbate socioeconomic disparities in ownership rates

are corporate tax rates or countries converging abstract the statutory rate and effective tax rate imposed on corporation income as well as the dispersion of these rates began to decline in the 1980s is this due to changes in the domestic determinants of corporate taxation or increases in international pressures for tax competition this paper finds clear evidence that the corporate tax rate is insulated from a country s revenue needs across countries there is no association of the expenditure gdp ratio with the corporate statutory rate and only weak evidence of a positive association with the average rate there is suggestive but not definitive evidence that the domestic role of the corporate tax as a backstop to the individual income tax is important across countries there is indeed a strong association between the top individual rate and the top statutory corporate rate there is intriguing evidence about the role of international competitive pressures on corporate taxation measures of openness are negatively associated with statutory corporate rates although not with revenues collected as a fraction of gdp strikingly larger more trade intensive countries do collect more corporate tax but this may be because these countries are more attractive venues for investment

fiscal paradise foreign tax havens and american business the tax haven affiliates of american corporations account for more than 20 percent of u s foreign direct investment and nearly a third of the foreign profits of u s firms american companies report extraordinarily high profit rates on their tax haven investments in 1982 this behavior implies that the revenue maximizing tax rate for a typical haven is around 5 8 percent american and foreign investment in tax havens has an uncertain effect on u s tax revenue but since low tax rates encourage american companies to shift profits out of high tax foreign countries it is possible that low foreign tax rates ultimately enhance u s tax collections

on the imputation of rental prices to owner occupied housing this paper challenges the usual objections to the possibility of applying the rental equivalent approach to determine the weight that nonrental housing services should have in the consumer price index cpi using data from two spanish household budget surveys it is shown that market rents can be well represented in terms of an index of housing quality two geographical variables and the year of occupancy this parsimonious empirical model is used to impute a rental value to nonrental housing units taking into account the possible selection bias induced by systematic differences in housing characteristics between the market rental sector and the nonrental stock on average the estimated hedonic values are relatively close to the self imputations provided in the household surveys by the occupants of such dwellings therefore using either of the two alternatives to assess the importance of nonrental housing services in the cpi have small consequences for inflation instead dropping these services from the cpi creates a downward bias in the measurement of inflation of 0 33 percentage points per year during 1985 1992 and an upward bias of 0 38 percentage points per year during 1993 to 2000 jel c43 d12 r21 c21 e31

monetary policy housing and heterogeneous regional markets we quantify the importance of heterogeneity for monetary policy using a new heterogeneous agent var havar model that integrates national monetary financial markets with regional housing markets via the mortgage rate although the havar model has linear regional vars its aggregate impulse responses exhibit two nonlinearities 1 time variation stemming from aggregation over heterogeneous regions and 2 state dependence on initial economic conditions in regions thus monetary policy has long and variable lags because monetary transmission depends on the extent and nature of regional heterogeneity which both vary over time the model is estimated with data for u s regions from 1986 to 1996 and simulated to show how coastal housing booms might influence the efficacy of monetary policy

residential construction using the urban growth model to estimate housing supply abstract this article presents an empirical model of housing supply derived from urban growth theory this approach describes new housing construction as a function of changes in house prices and costs rather than as a function of the levels of those variables which previous studies have used empirical tests support this specification over the leading alternative models our estimates show that a 10 rise in real prices leads to an 0 8 increase in the housing stock which is accomplished by a temporary 60 increase in the annual number of starts spread over four quarters

measuring the cost of shelter for homeowners theoretical and empirical considerations recent economic developments have aroused substantial interest in the treatment in the consumer price index cpi of the cost of shelter for homeowners from december 1977 when the latest version of the cpi was introduced until december 1980 the all items cpi increased at an average annual rate of 11 6 while the homeownership component increased at an average annual rate of 16 2 relative to all of the other goods and services in the cpi the homeownership component has increased by 17 5 over the same time period if the relative price of homeownership had remained constant the growth rate of the cpi would have been reduced to 10 1 the question which has been raised is whether the rapid relative increase in the homeownership component which has had such an important impact on the cpi truly reflects changes in the cost of shelter this question is not only important but difficult encompassing many subsidiary questions and auxiliary issues the purposes of this paper are threefold 1 to outline briefly a conceptual framework for the cpi which leads to a straightforward specification of what the shelter component of the cpi should measure 2 to evaluate the theoretical properties of alternative procedures designed to approximate this measurement objective and 3 present empirical evidence on the operational difficulties involved in pursuing a new approach to shelter cost measurement two main conclusions are reached first on both theoretical and empirical grounds a rental equivalence approach to measuring shelter costs for owner occupants is preferred second an estimated rental equivalence measure has grown more slowly over at least the past six years than the official cpi homeownership component given the way in which the cpi is used to escalate both private and public expenditures these results demonstrate that the choice of measurement technique has important distributional implications

the future price of houses mortgage market conditions and the returns to homeownership the purpose of this paper is to provide a simple framework in which to analyze the impact of a perfectly anticipated increase in the future selling price of houses on current house purchase decisions in the presence of capital market imperfections since implicitly it is the after tax selling price of houses that is considered this analysis is equivalent to one of a decrease in the capital gains tax on houses at retirement in this paper assumptions about homeownership mortgage markets and liquidity constraints are added to a life cycle model of asset accumulation taking the date of house purchase as exogenous it is shown that the impact of an exogenous increase in the expected future price of houses depends on current mortgage market conditions the future price of houses relative to the current price and the ratio of liquid assets to future labor income as well as preferences also a simple model of a market for houses is presented to analyze the impact of an increase in the expected future price of houses on the current market clearing price the mortgage market and the redistribution of the housing stock to consumers according to their wealth and liquidity characteristics in the life cycle model as exposited by franco modigliani and robert brumberg an increase in consumption in one period requires a decrease in consumption in another period when owner occupied housing is added to the model the tradeoff between consumption in different periods becomes more complex purchasing a larger house entails an increase in the consumption of housing services and an increase in assets held in the form of a house but a decrease in either nonhousing consumption or the holdings of an alternative asset or both the response of the consumer to price or income changes is also limited by financial market constraints capital market imperfections have been introduced into the life cycle model by a number of authors see for example lester thurow thayer watkins thomas russell clark wiseman and christopher pissarides and several authors have explicitly considered the impact of capital market imperfections on the house purchase decision see william dolde and james tobin william poole donald lessard and modigliani and dolde most similar to this study although developed independently roland artle and p varaiya s paper includes the theoretical incorporation of the house purchase decision into a life cycle model they consider the problem of choosing the date of house purchase while treating the level of consumption of housing services as exogenous in the life cycle model in this paper the consumer chooses the size of house to purchase at an exogenous date to use the life cycle model in the framework of a market of houses it is assumed that the stock of houses and the prices of all other goods including the rate of return on the alternative asset are fixed all consumers are identical except perhaps for initial wealth as noted by irving fisher p 325 in a world of perfect foresight and perfect markets the rates of return on all assets are equated in equilibrium if markets are perfect with the stock of houses and other prices fixed the present price of houses will rise by an amount equal to the present value of an exogenous increase in a future price of houses when mortgage market imperfections are introduced this relationship no longer holds and a future price increase may result in a redistribution of the current stock assistant professor of economics university of michigan this paper is an extension of a chapter of my doctoral thesis at the university of wisconsin madison the helpful comments of donald d hester charles a wilson hal varian and george borts are gratefully acknowledged

the repeat rent index abstract we employ a weighted repeat rent estimator to construct quarterly indexes that expand the profession s ability to make cross sectional comparisons of housing markets our analysis shows that there is considerable heterogeneity in the behavior of rents across cities over the 2000 2010 decade but the number of cities and years for which nominal rents fell is substantial rents fell in many cities following the onset of the housing crisis in 2007 and the repeat rent and bureau of labor statistics indexes differ due to sampling and construction methods

income housing wealth and gender inequality gender inequalities in income are relatively widely documented but their realisation in the housing system is less well understood this paper examines the relationship between incomes access to housing and housing costs among widowed divorced separated and never married single people in australia while the relative financial advantages of single men are sustained throughout the housing system there is some evidence that gender discrepancies in income are reduced once housing costs are taken into account lone mothers however fare least well and face a disproportionate loss of disposable income through housing expenditures

inflation capital taxation and housing the long run in a small open economy this paper deals with the consequences of inflation and capital income taxes for the accumulation of wealth in a small open economy with a housing sector particular attention is paid to the incentive and intergenerational redistribution effects stemming from the interaction of inflation and capital income taxation and to portfolio shifts between housing assets and other assets the authors find that the intergenerational distribution effects and the incentive effects on overall savings tend to offset and sometimes even to dominate several of the expected interasset substitution effects of a change in inflation and capital taxes

robust methods of building regression models an application to the housing sector this article studies robustification strategies for the linear model in the presence of outliers the advantages of an internal analysis of the robustness of least squares for a given sample are pointed out the application of this methodology is illustrated by building an explicit model of the determinants of rental housing values in the madrid metropolitan area

measures of strategic alliance performance an analysis of construct validity this study evaluates the construct validity of measures of the performance of strategic alliances in 34 equity strategic alliances sas and 45 contractual sas we discuss the content validity of existing measures in the light of current concepts of sa performance empirical results show that the fulfilment of strategic goals and other organizational effectiveness measures of sa performance such as overall performance satisfaction and net spillover effects capture different underlying factors the latter two measures display convergent validity the results also support the discriminant validity of these two measures with respect to contractual changes and survival but not with respect to longevity building on our findings we propose an expanded definition of sa performance that considers both outcome and process performance

the effect of housing on portfolio choice we show that characterizing the effects of housing on portfolios requires distinguishing between the effects of home equity and mortgage debt we isolate exogenous variation in home equity and mortgages by using differences across housing markets in house prices and housing supply elasticities as instruments increases in property value holding home equity constant reduce stockholdings while increases in home equity wealth holding property value constant raise stockholdings the stock share of liquid wealth would rise by 1 percentage point 6 of the mean stock share if a household were to spend 10 less on its house holding fixed wealth

developing successful trust based international exchange relationships trust is a central construct in relationship marketing yet the literature provides mixed empirical evidence on the trust performance linkage also there is limited research on how to build trusting international buyer seller relations we develop a comprehensive model integrating performance enhancing mechanisms and antecedent processes of trust in import export relationships our survey results from importers trading with overseas manufacturers suggest that existing levels of trust have a positive effect on relationship performance outcomes achieved 1 year later importantly trust takes on greater importance in enhancing performance under conditions of high interdependence whereas in circumstances of low interdependence trust has no discernible effect the findings also indicate that interfirm psychic distance internal uncertainty and exporter transaction specific assets and opportunism are related to importer trust implications for academics and practitioners are addressed

estimation and policy implications of rental housing demand abstract the demand for rental housing using the annual housing survey smsa sample for 1977 is estimated the principal determinants of rental housing demand namely housing price and permanent transitory income are computed through spatially varying hedonic price techniques and instrumental variables methods relating to human and nonhuman capital respectively based on the demand estimation results impacts of hypothetical cash and rent subsidy programs are analyzed in terms of housing and welfare effects it is found that a rent subsidy achieves considerably larger effects than does a cash subsidy

the effects of anticipated inflation on housing market equilibrium an increase in the anticipated rate of inflation causes distortions in the housing market due to a nonindexed tax system since nominal rather than real interest payments are tax deductible an increase in inflation decreases the aftertax cost of capital for homeowners which in turn increases the demand for housing and increases its real price this tax gain is shown to be larger for rental housing than for owner occupied housing in a competitive market this implies that although the real price of housing increases with a rise in anticipated inflation real rental rates fall in the last decade the real price of corporate capital fell while the price of housing increased dramatically during this same period the rate of inflation increased substantially empirical studies have found a negative relationship between stock returns and the inflation rate 1 while housing has been found to have been a good hedge against inflation 2 tax distortions related to the change in the rate of inflation provide one popular explanation for the negative relationship between stock prices and inflation 3 the effect of similar tax induced distortions on the equilibrium in the housing market will be studied in this paper it is shown that the real price of housing increases with the anticipated rate of inflation while the real rental rate declines these results are consistent with published data for the period 1967 77 during which the anticipated rate of inflation increased substantially 4 the general price level as measured by the consumer price index increased 81 5 percent between 1967 and 1977 5 in this

the new political economy of taxation in advanced capitalist democracies earlier versions of this paper were presented at the 1999 annual meeting of the american political science association september 1 5 atlanta ga and the 2000 annual meeting of the midwest political science association april 27 30 chicago il the authors thank steffen ganghof philip genschel mark hallerberg alex hicks william keech dennis quinn and the anonymous reviewers and editor of this journal for many helpful comments and dennis quinn for generously sharing data duane swank thanks the german marshal fund of the united states and marquette university for support of work incorporated in this paper data utilized in this paper are available from duane swank marquette edu

trust and performance in cross border marketing partnerships a behavioral approach existing research on international partnerships focuses primarily on the ex ante structuring of interorganizational relationships this study departs from this research by taking a behavioral approach to understand the ex post maintenance of cross border marketing partnerships a conceptual model is developed by identifying the antecedents of trust and performance in such partnerships the model is empirically tested on a sample of u s firms having distributor and licensing relationships with firms from asia europe and central south america findings support the importance of bilateral relational norms and informal monitoring mechanism in building interorganizational trust and improving market performance of international partnerships

does trade liberalization trigger tax competition theory and evidence from oecd countries this article aims at assessing the empirical relevance of new economic geography models of tax competition we rely on a simple model to specify tax reactions functions which we estimate with a panel covering up to 26 oecd countries over the period 1982 to 2006 we provide striking support for the two main predictions regarding the slope and the constant of the reaction function national governments seem to adjust their corporate tax rate towards the level chosen in countries that are more populated and they tend to set higher corporate tax rates when their country enjoys a high real market potential through the latter effect trade integration exerts a positive influence on the level of corporate taxation however using a theoretically grounded index of bilateral trade integration we also show that trade liberalization gives rise to significant tax interactions in the setting of effective average tax rates in the case of european countries thus exerting a downward pressure on corporate tax rates

homeownership community interactions and segregation the authors consider a multi community city where community quality is linked to residents civic efforts such as being proactive in preventing crime and ensuring the quality of publicly provided goods homeownership increases incentives for such efforts but credit market imperfections force the poor to rent within community externalities can lead to segregated cities with the rich living with the rich in healthy homeowner communities and the poor living with the poor in dysfunctional renter communities the pattern of tenure segregation across communities in the united states accords well with the study s prediction the authors analyze alternative tax subsidy policies to alleviate inefficiencies in the housing market and identify the winners and losers under such policies

length of residence discounts and rental housing demand theory and evidence the improved availability of crosssectional household level data over the past decade has led to substantive improvements in estimates of housing demand better techniques have been developed to measure permanent income and housing price to determine proper functional forms for demand equations and to consider the endogenous nature of the mobility move non move and or the tenure own rent decision this paper examines two rental housing market features which have been alluded to elsewhere but which have not received systematic attention first many analysts have estimated substantial length of residence discounts for example merrill 1977 lowery 1980 follain and malpezzi 1980 downs 1980 and marshall and guasch 1983 35778 these discounts are consistent with several explanations including turnover minimization by landlords screening of good tenants or sample truncation due to random error in the setting of rental prices irrespective of the source they imply that any crosssection sample of tenants will indicate rental prices that decrease all else equal with length of residence their pervasive nature suggests that they will be expected by consumers who will act accordingly in housing demand decisions this consumer optimization is the second feature of the analysis in what might be termed the equilibrium disequilibrium question the substantial search and moving costs that often accompany a housing purchase suggest that the random cross sectional

identifying willingness to pay for heterogeneous goods with factorial survey methods abstract it has been difficult to estimate underlying willingness to pay parameters for attributes of heterogeneous goods such as environmental quality though hedonic price functions this paper links sociological factorial survey analysis with hedonic price analysis vignettes are multidimensional vectors constructed orthogonally differences among vignette ratings allow estimation of individual valuations of the attributes the paper establishes a theoretical framework linking the two analyses vignette and hedonic price functions are then estimated and linked at the margin to provide dollar values for marginal vignette ratings ratios of these ratings are then used to impute willingness to pay for attributes

an econometric analysis of choice of mortgage design in the united kingdom the research seks to better understand the choice of mortgage design by households in the united kingdom family expenditures survey data is used to test the various hypotheses on the determinants of the choice between an endowment and a repayment mortgage a bivariate probit model with sample selection is estimated to detect any likely selectivity bias arising out of tenure choice the theoretical modelling reflects the behaviour of liquidity constrained households comparing comparative periodic mortgage costs and households concerned with the oppurtunity cost of equity in a property actual choices appear to reflect the impact of nominal interest rates income and cash flow considerations there is little direct evidence that the choice of mortgage repayment vehicle is motivated by portfolio design there is some tentative evidence of supply side pressure on endowment mortgage take up

the stability of joint ventures reciprocity and competitive rivalry the focus of the following empirical analysis is the influence of reciprocity and long term relationships on the stability of joint ventures these cooperative incentives are offset by industry structural conditions which may promote competitive rivalry among the partners to separate these effects on joint venture survival the hypothesized relationships are proxied by variables drawn from industry and questionnaire data and estimated under a hazard model specification a theoretical implication of the findings is to suggest a shift of attention from the transaction to the economic relationship as the unit of analysis copyright 1989 by blackwell publishing ltd

security of tenure costly tenants and rent regulation many jurisdictions give residential tenants legislated packages of rights known generically as security of tenure and some protect tenants further by prohibiting unjustified rent increases the paper considers the effects of security of tenure on a competitive rental housing market to illustrate the concepts the paper describes current security of tenure and rent regulation provisions in the province of ontario canada a model of rational behaviour by landlords is then presented in which landlords choose simultaneously a rent for a standard lease and the quality of tenant to be accepted heterogeneity among landlords and tenants and imperfect information are introduced the effect of security of tenure legislation on this behaviour is assessed the paper then considers the difficulty of defining an unjustified rent increase when some tenants are more costly to serve than others and when the landlords have imperfect information about prospective tenants

the determinants of cross border equity flows abstract we explore a new panel data set on bilateral gross cross border equity flows between 14 countries 1989 1996 we show that a gravity model explains international transactions in financial assets at least as well as goods trade transactions gross transaction flows depend on market size in source and destination country as well as trading costs in which both information and the transaction technology play a role distance proxies some information costs and other variables explicitly represent information transmission an information asymmetry between domestic and foreign investors and the efficiency of transactions the geography of information is the main determinant of the pattern of international transactions while there is weak support in our data for the diversification motive once we control for the informational friction we broaden the scope of our results by presenting some evidence linking the results on equity transactions to equity holdings

budget spillovers and fiscal policy interdependence evidence from the states abstract this paper formalizes and tests the notion that states expenditures depend on the spending of similarly situated states we find that even after allowing for fixed state effects year effects and common random shocks among neighbors a state government s level of per capita expenditure is positively and significantly affected by the expenditure levels of its neighbors ceteris paribus a one dollar increase in a state s neighbors expenditures increases its own expenditure by over 70 cents

instabilities of strategic alliances an internal tensions perspective the instabilities of strategic alliances have been examined in the literature through a number of theoretical approaches alliance instabilities refer to major changes or dissolutions of alliances that are unplanned from the perspective of one or more partners although the literature identifies certain characteristics of strategic alliances that may lead to their unplanned dissolution the extent of our understanding of this subject appears to be fragmented and incomplete in this article we propose a comprehensive framework for adequately understanding alliance instabilities based on the notion of internal tensions we suggest that strategic alliances are sites in which conflicting forces develop and which can be viewed as being constituted by three key pairs of competing forces namely cooperation versus competition rigidity versus flexibility and short term versus long term orientation this tensions framework helps us in explaining the intrinsic vulnerability of alliances in terms of a wide range of internal contradictions and enables us to examine in an integrated manner the incidence dynamics and eventual dissipation of the inherent instabilities we discuss the interrelationships among the different internal tensions and their impacts on different types of strategic alliances we also examine the termination of alliances through mergers acquisitions and dissolution finally we suggest ways to empirically test the various ideas and propositions developed here and indicate directions for further research

performance and survival of joint ventures with non conventional ownership structures the international joint venture jv literature has focused on two parent jvs formed between one foreign and one local firm yet other types of jvs exist this paper identifies four distinct forms of jvs based on the jv partners nationality and equity affiliation these are i jvs that are formed between affiliated home country based firms ii jvs that are formed between unaffiliated home country based firmsl iii jvs that are formed between home country based and local firms and iv jvs that are formed between home country and third country based firms our analysis of 737 japanese jvs in asia demonstrates that the conventionally assumed form of jv represented only 30 percent of the total further each of the four jv forms significantly differed in terms of incidence performance and survival likelihood

is australia s home ownership rate really stable an examination of change between 1975 and 1994 australia has exhibited a remarkably stable home ownership rate of 70 per cent for over thee decades however this paper questions whether this rate is sustainable decomposition techniques based on tenure choice models are used to provide evidence of changing homeownership patterns in australia between 1975 and 1994 the results indicate a distinct change in home ownership propensities which is neither uniform across age groups nor uniform for different household types with both the same and with different levels of income a number of tentative explanations are proposed each of which provides the basis for further research on the factors affecting household tenure decisions this is essential if the potential for a significant decline in home ownership is to be seen as a matter of concern

what drives corporate tax rates down a reassessment of globalization tax competition and dynamic adjustment to shocks we reassess the driving forces behind the recent decline of corporate tax rates in europe using data for up to 32 countries from 1983 to 2006 we analyze the roles of economic and financial openness as well as tax competition while allowing for dynamic adjustment to shocks and period specific and country specific effects while there is no evidence that countries that have become more open have reduced their tax rates more our findings suggest that countries strongly compete over statutory tax rates a simulation of tax rates in a scenario with no cross sectional dependence in tax setting suggests that in the absence of tax competition the mean statutory tax rate of western european countries in 2006 would have been about 12 5 percentage points above its actual level we conclude that the recent downward trend in corporate taxes is mainly a result of tax competition

consumer prices the consumer price index and the cost of living after presenting major findings and recommendations the cpi commission reiterates the estimate of a 1 1 percentage point per annum upward bias it rejects the contention that the bls already makes substantial corrections for quality change that quality improvements and new products accrue only to the rich and that procedures to make more extensive quality adjustments valuations of new products and adjustments for commodity and outlet substitution are impractical the bias in the cpi can be sharply reduced as the authors detail in this paper coauthors are ellen r dulberger robert j gordon zvi griliches and dale w jorgenson

using house prices to compute the price of housing in the cpi abstract rental equivalence is often used in computing price changes of owner occupied housing in the cpi we use an alternative approach employing interest adjusted house prices for norway 2000 2008 our method yielded a 30 cpi increase compared to the official 17

interfirm diversity organizational learning and longevity in global strategic alliances organizational theorists have correctly argued that the emergence and maintenance of robust cooperation between global strategic alliance partners is related to the diversity in the partners characteristics yet previous research has failed to systematically delineate the important dimensions of interfirm diversity and integrate the dimensions into a unified framework of analysis this paper develops a multilevel typology of interfirm diversity and focuses on organizational learning and adaptation as critical processes that dynamically moderate diversity s impact on alliance longevity and effectiveness

capital market integration and fiscal sustainability abstract by constructing a two country endogenous growth model with a debt financing government this paper studies the relationship between the sustainability of public finance and increases in inter regional factor mobility to this end it identifies the minimum tax rate that ensures fiscal sustainability against the backdrop of capital tax competition and studies whether competition for mobile capital lowers or improves fiscal sustainability the main findings are as follows i when countries are symmetric increasing capital flows promotes economic growth through the expansion of romer type knowledge spillovers resulting in increased fiscal sustainability in all countries and ii when a marked difference exists between countries tax competition caused by capital movements might lower fiscal sustainability in a country with abundant capital and large outstanding debt

the bumpy road of technology partnerships understanding causes and consequences of partnership mal functioning abstract research on technological partnerships has traditionally sought explanation of their high failure rates in partner characteristics and relationship features this study introduces the notion of a bumpy road in technology partnerships which refers to undesired outcomes such as partnership mal functioning and instability to the degree to which innovation activities are hampered we explain how firm level strategies can reduce the probability of a bumpy road in partnerships we also assess the impact of this bumpy road on innovative performance we find that firms that excel in diversification of external activities in terms of different types of partners perform best moreover a persistent product oriented innovation strategy geared at developing new products new markets or higher product quality will yield more stable partnership outcomes our results confirm that engagement in partnerships is beneficial for innovative performance however firms that experienced a bumpy road in their technological partnerships have to pay a price in terms of a negative effect on their innovative performance

the interjurisdictional effects of growth controls on housing prices institute of university of i 39 business and california at i economic research berkeley fisher center for real estate and urban economics working paper series working paper no 84 83 the interjurisdictional effects of growth controls on housing prices l by these papers are preliminary in nature their purpose is to stimulate discussion and lawrence katz comment therefore they kenneth t rosen are not to be cited or quoted in any publication without the ex press permission of the author walter a haas school of business

time for revisionism on rent control economists traditional hostility to rent contols is based on models that treat the housing market as perfectly competitive and on the experience with hard controls in new york city and many european countries following world war ii the current soft rent control systems in north america are varied and qualitatively different from earlier hard controls the theoretical case against them is weak particularly when the housing market is viewed as imperfectly competitive the empirical case against them is weak too economists should reconsider their blanket opposition to current rent control systems and evaluate them on a case by case basis

equity joint ventures and the theory of the multinational enterprise this paper extends the internalization approach to the theory of the multinational enterprise mne to include an expanded role for equity joint ventures using the transaction cost paradigm of williamson this paper explains why joint ventures may sometimes be preferred over wholly owned subsidiaries also presented is empirical work on joint venture performance in developing countries which demonstrates that under certain conditions joint ventures can be the optimal mode of foreign direct investment

moving costs nondurable consumption and portfolio choice the substantial adjustment cost for housing affects nondurable consumption and portfolio allocations as well as the frequency of housing transactions a simple theoretical model roughly calibrated is used to assess the quantitative impact of adjustment costs on those decisions the impact on portfolios is found to be significant suggesting that housing wealth should be useful in empirical studies of portfolio choice the welfare loss from the transaction cost is also substantial the effect on nondurable consumption is small however so adjustment costs can explain only a small part of the equity premium puzzle

should the cost of living index provide the conceptual framework for a consumer price index in some countries the cost of living col index serves as the conceptual framework for the cpi but it has been rejected in others this paper reviews issues that have arisen in the statistical agency debate and in the economics literature on the col index including rhetorical matters which have influenced the debate i contend that col theoiy is useful as a decision making framework in estimating components of the cpi and that col index theory provides appropriate guidance for measuring consumer inflation contrary to the view that has been adopted for the european hicp and expressed by an advisory committee for the rpi in several countries the united states netherlands sweden the theory of the cost of living col index provides the conceptual framework for the country s consumer price index cpi see united states department of labor 1997 balk 1994 and dalen 1999 others reject the cost of living index framework an example is the australian bureau of statistics 1997 rejection of the col index is also explicit in an rpi advisory committee recommendation in the united kingdom in still other countries canada being an example official documents for the cpi are ambiguous about the role of the col index statistics canada 1995 the international guideline for consumer price indexes the ilo manual turvey 1989 does not even mention the col index the question has taken on heightened interest recently part of the stimulus comes from the european union s relatively new harmonised indexes of consumer prices hicp for the hicps eurostat has rejected the col

do countries compete over corporate tax rates this paper tests whether oecd countries compete with each other over corporate taxes in order to attract investment we develop two models with firm mobility countries compete only over the statutory tax rate or the effective average tax rate while with capital mobility countries compete only over the effective marginal tax rate we estimate the parameters of reaction functions using data from 21 countries between 1983 99 we find evidence that countries compete over all three measures but particularly over the statutory tax rate and the effective average tax rate this is consistent with a belief amongst governments that location choices by multinational firms are discrete we also find evidence of concave reaction functions consistent with the model outlined in the paper

consumption and investment motives in housing wealth accumulation a french study abstract the dual motives of housing behavior consumption and investment make the analysis of housing purchases quite difficult nevertheless it is better to refer to a model that keeps the two dimensional aspect of housing henderson and ioannides am econ rev 73 93 111 1983 in the absence of institutional considerations this model predicts that it is the difference between the investment demand for housing and the consumption demand that explains decisions to purchase dwellings for owner occupation and for renting out we have tested the model on the french data of the survey actifs financiers 1992 results show that the difference between the two demands cannot in itself explain housing purchases transaction costs the tax system the public aid policies for home ownership and other market imperfections are inadequately dealt with moreover estimation and identification of housing demand functions both for consumption and investment tend to show that there are portfolio motives in the factors that determine housing demand for owner occupation french households behave in a different way than u s households for them the difference between the two demands for housing explains behavior and consumption motives dominate primary residence purchase ioannides and rosenthal rev econ statist xx 127 141 1994

the economics of tenancy rent control we consider a rent control regime where rent increases on and eviction of a sitting tenant are forbidden when apartments become vacant landlords may negotiate new rents if inflation exists landlords prefer to rent to short staying tenants since departure date contingent contracts are forbidden and landlords cannot tell whether tenants are short stayers an adverse selection problem arises with a pareto inefficient equilibrium when tenant types are determined endogenously multiple equilibria can arise where one equilibrium is pareto dominated abolition of the rent control regime cannot only shift the equilibrium out of this inferior outcome but also result in across the board lowering of rents

a general equilibrium model of housing taxes and portfolio choice we describe a model in which rental and owner housing are risky assets tenure choice is endogenous and each household is constrained to consume the same amount of owner housing that it has in its investment portfolio at each iteration in the search for an equilibrium we determine the new taxable income for each of 3 578 households from the survey of consumer finances and we use statutory schedules to find the marginal rate and tax paid equilibrium net rates of return are major determinants of the amount of owner housing but a logit model indicates that demographic factors are the main determinants of ownership rates in our simulation taxes on owner housing would raise welfare not only by reallocating capital but also by the government s taking part of the risk from individual properties and diversifying it away measures to disallow property tax or mortgage interest deductions do not help share this risk simulations of the 1986 tax reform indicate a small shift from rental to owner housing and

measuring performance of international joint ventures international joint ventures ijvs are increasing in frequency and strategic importance however efforts to identify variables associated with ijv performance have been constrained by disagreements regarding the comparability and reliability of alternative performance measures and methods this study tests several hypotheses regarding the reliability and comparability of a range of objective and subjective measures of ijv performance as well as evaluating the relative utility of different data collection approaches

national culture transaction costs and the choice between joint venture and wholly owned subsidiary transaction cost theory posits that culture plays a limited role in the choice between jv and wos in contrast research suggests that firms preferred level of ownership in their foreign subsidiaries is influenced primarily by cultural traits this study provides additional evidence in this ongoing debate by replicating hennart s transaction cost model of entry mode choice in two different national contexts japanese firms investing in the u s and the u s firms investing in japan the results suggest that the transaction cost explanation for the ownership choice holds in the both national contexts yet the propensity to choose jv or wos significantly varied between japanese and the u s firms

the heterogeneity of housing tenure choice in urban china a case study based in guangzhou this paper investigates the heterogeneity of housing tenure choice in the city of guangzhou based on a household survey using methods of finite mixture regression we identified three groups with

competition from low wage countries and the decline of corporate tax rates evidence from european integration we exploit the rapid economic integration of eastern and western europe after 1989 as a natural experiment to assess the eect of international competition for mobile capital on corporate tax rates by means of a series of dierence in dier ence estimations we show

do countries compensate firms for international wage differentials we address the role of labor cost differentials for national tax policies modeling a tax competition race between two countries competing for a population of mobile firms we show that in equilibrium the high wage country charges a lower tax than the low wage country moreover under tax competition the high wage country attracts more firms than in a setting without taxation exploiting exogenous variation in labor cost differentials induced by the breakdown of communism in eastern europe we find that tax policies are in line with the model prediction our most conservative estimates suggest that a one dollar increase in the compensation cost differential in prices as of 2000 triggers a cut of the statutory corporate income tax rate by about one percentage point

owner occupiers and the price index the treatment of owner occupied dwellings in consumer price indexes varies between countries and is the subject of continuing controversy ralph turvey explains the alternative possible treatments and reasons for disagreement

revisiting multinational firms tolerance for joint ventures a trust based approach in spite of the increasing popularity of international joint ventures managers express a high level of dissatisfaction with them this paper argues that overemphasis on the outcome has resulted in a neglect of the social processes underlying the outcome the paper elaborates upon the rationale for a cooperative approach towards interorganizational collaborative relationships based on trust and discusses it in the context of joint ventures this is then applied towards understanding multinational ownership preferences and tolerance for joint ventures it is argued that trust centered logic is largely consistent with approaches that emphasize the issue of ownership and deepens and enriches the insights provided by the latter a shift in focus from ownership to relational dynamics is encouraged

borrower risk under alternative mortgage instruments this paper analyzes differences in borrower risk under alternative mortgage instruments and various borrower characteristics the traditional approach of measuring borrower risk in terms of actual delinquency and foreclosure data is rejected in favor of a model based on potential delinquency that is changes in the mortgage payment to income ratio the combinations of mortgage terms and borrower characteristics that are most likely to produce a potential delinquency are isolated based on the calculation of hypothetical payment to income ratios over an eight year period recent studies have attributed problems of instability in the housing market to a combination of inflation and the terms of the traditional mortgage instrument 1 these studies have concluded that the standard mortgage instrument with a fixed nominal interest rate is incapable of meeting the needs of either borrowers or lenders during inflationary periods lenders may earn negative real rates of return while borrowers must face a time stream of real payments which is unlikely to match their real income alternative mortgage instruments ami s with payments that are allowed to vary have been proposed as a partial solution to these problems 2 the prospect of the widespread use of mortgages whose payments have the potential for variation has not met with universal enthusiasm however particularly important is the assertion that such mortgage instruments would increase risk to borrowers while under the standard fixed rate mortgage the risk of unanticipated inflation is carried by the lender the use of ami s would shift this risk to the borrower in addition it is argued that lenders would be reluctant to grant such mortgages to borrowers felt to be more prone to income fluctuations such as young or minority families if lending institutions offered only variable payment mortgages these groups could be squeezed out of the mortgage market 3 while there seems to be a consensus that mortgages with variable payments will involve higher borrower risk few studies have been undertaken to examine

economics and underdetermination a case study of urban land and housing economics underdetermination associated with the duhem quine thesis is a familiar if under researched theme in economics in the light of this we examine the development of urban land and housing economics through its cartesian dualistic delineation of theory and data the contemporary mainstream approach appears unable to circumvent the problem of underdetermination in effect it employs the strong version of duhem quine in its retention of the assumption of a single unitary competitive market and associated access space trade off conversely we highlight the affinity of ely s and the later columbia school s approach to pragmatists dewey and peirce which provides a more fruitful basis for explanation

theory and estimation in the economics of housing demand the main purpose of this paper is to review recent theoretical and empirical developments in the economics of housing demand in particular we ask what is known concerning the permanent income elasticity of housing demand vis a vis the current or measured income elasticity what is known concerning price elasticities what is the appropriate functional form for housing demand equations what is the role of demographic variables what is known concerning dynamic aspects of housing demand what appear to be the major sources of bias in existing estimates of demand equations

tax competition as a cause of falling corporate income tax rates a survey of empirical literature since the mid 1980s tax rates on corporate income have declined in most industrialized countries tax competition between countries for mobile capital has frequently been mentioned as an explanation for this development a vast empirical literature dealing with tax competition for mobile capital has emerged this paper categorizes and summarizes the existing empirical studies on this issue particular focus is placed on the isolation of the substantive implications the quantitative study outcomes convey given the empirical evidence surveyed it appears that tax rates indeed decline due to tax competition between countries and in particular due to competition for profits in addition to summarizing the substantive implications of the existing empirical literature the paper addresses the question of whether the existing studies can convincingly isolate tax competition as a driver of falling corporate income tax rates

knowledge acquisition from foreign parents in international joint ventures an empirical examination in the hungarian context in this paper we examine organizational characteristics structural mechanisms and contextual factors that influence knowledge acquisition from the foreign parent in international joint ventures ijvs we in turn relate assessments of knowledge acquisition to ijv performance the data come from a survey of ijvs in the hungarian context where learning and knowledge acquisition from the foreign parent is thought to be particularly critical adaptation mechanisms such as capacity to learn articulated goals and structural mechanisms such as the provision of training technology and managerial assistance by foreign parents all were positively associated with the degree to which ijvs reported acquiring knowledge from their foreign parents we also found limited support for the belief that cultural conflicts can impede knowledge acquisition but only for two party joint ventures with 50 50 equity arrangements we also looked at the relationship between knowledge acquisition and different dimensions for evaluating ijv performance the relationship between knowledge acquisition and performance was significant for all indicators of performance through knowledge acquisition from the foreign parent and the organizational characteristics hypothesized to enhance ijv knowledge acquisition affected assessments of some dimensions of performance more than others our findings contribute to advancing knowledge about the relationship between organizational characteristics and organizational knowledge acquisition in ijvs as well as the relationships between knowledge acquisition and different dimensions of ijv performance

the price adjustment process for rental housing and the natural vacancy rate institute of a university of ii business and california economic research berkeley center for real estate and urban economics working paper series working paper 82 53 the price adjustment process for rental housing and the natural vacancy rate by kenneth t rosen lawrence b smith these ers are preliminary in natu heir purpose 39 to stimulate discussion comm therefore t are n ted or q d in any pub on wit the express permissi the author graduate school of business administration

housing depreciation and aging bias in the consumer price index i use hedonic regression methods to estimate average rental housing physical depreciation for areas of the united states i estimate downward quality bias of the u s consumer price index cpi caused by rental housing physical depreciation and i develop methods to correct the cpi for such aging bias my physical depreciation estimates imply that recent percentage changes in the u s cpi shelter cost indexes are downward biased by 3 to 4 annually such bias is nonnegligible because recent annual changes in the cpi shelter cost indexes have ranged between 3 5 and 6 8 for various regions my results also imply that rent controlled housing has depreciated faster than other rental housing

compensation of regional unemployment in housing markets why are regional unemployment differentials in europe so persistent if as the wage curve literature demonstrates there is no compensation in labour markets we hypothesize that workers in high unemployment regions are compensated in housing markets modelling regional unemployment differentials as a consequence of centralized wage bargaining we show that clearing of land markets may undo the incentive for workers to migrate to low unemployment regions in general equilibrium the compensating differentials hypothesis is tested on city level data for several countries controlling for variation in income and amenities housing is found to be about 3 percent less expensive on average in cities where unemployment is 10 percent up an analysis of housing demand survey data which takes account of housing heterogeneity yields a similar negative relationship the magnitude of the income effect generated by this compensating differential is consistent with a 0 10 wage curve elasticity these findings weaken the case for regional support programs

sustaining satisfactory joint venture relationships the role of conflict resolution strategy the paper presents a conceptual framework that links international joint venture context cultural similarity relative power and relationship age and partners conflict resolution strategies to satisfaction special attention is paid to the mediation effect of conflict resolution behavior on the linkage from context to satisfaction the framework is assessed empirically using a sample of u s and chinese joint venture managers in china

a theoretical and empirical analysis of the length of residency discount in the rental housing market abstract we present an analysis of occupancy discounts and suggest a decomposition of the discount into two components a sit discount and a length of residency discount data from the national longitudinal survey of the annual housing survey in which 75 000 housing units from around the united states were followed from 1974 to 1977 are used to obtain consistent and efficient estimates of those discounts the econometric models account for censoring in the data by endogenously treating the tenant s staying decision the estimation indicates that neither discount is significant this result is contrary to the commonly accepted result in the urban literature that landlords offer discounts to their current tenants when contracts are renegotiated

international profit shifting within multinationals a multi country perspective abstract we model the opportunities and incentives generated by international tax differences for international profit shifting by multinationals the model considers not only profit shifting arising from international tax differences between affiliates and parent companies but also from tax differences between affiliates in different host countries our model yields the prediction that a multinational s profit shifting in a country depends on a weighted average of international tax rate differences between all countries where the multinational is active using a unique dataset containing detailed firm level information on the parent companies and subsidiaries of european multinationals and information about the international tax system we test our model and empirically examine the extent of intra european profit shifting by european multinationals on average we find a semi elasticity of reported profits with respect to the top statutory tax rate of 1 3 while shifting costs are estimated to be 0 6 of the tax base international profit shifting leads to a substantial redistribution of national corporate tax revenues many european nations appear to gain revenues from profit shifting by multinationals largely at the expense of germany

strategic pollution control and capital tax competition abstract in an analytical model of symmetric countries with mobile capital and local or transboundary pollution we investigate whether competition in emissions taxes or emissions caps and capital taxes leads to efficient outcomes when governments act strategically when they have capital taxes and emissions caps at their disposal they refrain from taxing capital and set their caps inefficiently lax efficient for transboundary local pollution when they have the option to tax capital and emissions capital is subsidized untaxed and emissions taxes are inefficiently low efficient for transboundary local pollution in case of transboundary pollution emissions caps are pareto superior to emissions taxes that holds regardless of whether the environmental policy is applied as stand alone policy or combined with capital tax competition

housing price functions and ownership capitalization rates abstract in this paper we examine the problem of consistently estimating capitalization rates and hedonic housing prices we specify a hedonic pricing model for housing that combines owner occupied and rental unit samples in a manner yielding hedonic prices not subject to selection bias and capitalization rates which vary with the age and family income of the residents we use the 1982 annual housing survey ahs for metropolitan philadelphia to obtain parameter estimates for this model our findings indicate that selectivity bias is present in price functions utilizing only owner occupied or rental unit samples our results further indicate that the mean annual capitalization rate for owner occupied units is approximately 10 however the capitalization rate is non monotonically related to both age of the head and family income