the demand for housing in sweden equilibrium choice of tenure and type of dwelling abstract most studies of housing demand and tenure choice only identify two modes of tenure owner occupied one family houses and rental apartments furthermore they are typically based on a cross section across all households in this study we use recent swedish data to overcome these weaknesses we identify owner occupied apartments coop shares as a third mode of tenure and show that this should be treated separately we also use information about the household s own assessment of its probability of moving during the next year we demonstrate that it makes a large difference if likely movers are eliminated from the sample

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

eaere award for the best paper published in environmental and resource economics during 2019 we present details of the eaere award for the best paper published in environmental and resource economics during 2019 together with those highly commended papers published during this period

residential attachment and housing demand in this paper a model of housing demand behavior is proposed in which both monetary and non monetary adjustment costs termed attachment are allowed to affect demand levels an empirical implication of the model is that the individual variance around the housing demand curve is likely to increase directly with total adjustment costs a cross section housing demand curve is estimated with the variance specified as a linear function of variables thought to be correlated with total adjustment costs the results provide qualified support for the assertion that adjustment costs influence housing demand behavior in the manner suggested by the theoretical model

understanding corporate coherence theory and evidence abstract multiproduct firms are perceived to be coherent in their scope yet there is no strong theoretical foundations to explain coherence in modern industrial organization theory this paper shows that as u s manufacturing firms grow more diverse they maintain a constant level of coherence between neighboring activities this finding runs counter to the idea that firms with many activities are generally more incoherent a framework is then presented which appeals to the nature of enterprise learning path dependencies and the nature of the selection environment to explain the ubiquity of coherent diversifiers

a status based model of market competition this article explores the significance of status processes for generating and reproducing hierarchy among producers in a market it develops a conception of a market as a status order in which each

maximum score estimates of the determinants of residential mobility implications for the value of residential attachment and neighborhood amenities abstract this paper uses a semiparametric empirical technique maximum score to estimate the determinants of the decision of low income renters to move out of their dwelling the maximum score estimates prove to be far more precise than probit estimates the estimates are used to show that low income residents highly value remaining in their dwelling in addition these estimates are used to illustrate an alternative method to measure willingness to pay for neighborhood amenities which we argue to be superior to hedonic based wtp measures

tenure changes in the context of micro level family and macro level economic shifts almost all the work to date on tenure changes specifically the move from rent to own has been derived from cross sectional analysis of this important housing market decision economists have emphasised the investment nature of the housing consumption decision while demographers and geographers have investigated tenure change in relationship to the demographic characteristics of the household now the developing notions of life course analysis and the availability of longer panel series enable us to investigate not just the demographic relatives of tenure change but the critical aspects of timing as well specifically many couples choose to buy and make the transition to a family within 2 3 years we show also that tenure change is influenced by both spatial and temporal economic contexts

entry to home ownership in germany some comparisons with the united states new research on migration mobility and housing tenure choice using the concept of the life course is providing an enriched analysis of the context within which housing choices are made and of the demographic and economic variables which are critical determinants of the decisions to move and to change tenures the availability of panel series data for the us and germany allows cross national comparisons of the migration and tenure choice processes there are substantial differences in the rates of mobility and the rates of moves of households from the rental sector to ownership especially for couples but the results confirm the overall similarities in the mobility and tenure choice processes despite the differing government commitments to housing policy the models show that it is primarily couples and families who make the transition to ownership and that income and number of earners are important in both contexts and german households have even higher incomes before they make the transition to ownersh

the demand for rental housing evidence from the housing allowance demand experiment abstract this paper provides new evidence on the price and income elasticities of demand for rental housing by low income households housing expenditures of households participating in the housing allowance demand experiment and receiving housing allowances in the form of a proportional rent rebate are analyzed these rent rebates experimentally vary the effective relative price of housing and thus enable estimation of the price elasticities natural income variation enables estimation of income elasticities analysis is carried out using two functional forms and a variety of models of housing dynamics the estimated income and price elasticities of demand are 0 36 and 0 22 respectively when the sample is restricted to include only households headed by couples the elasticity estimates are 0 47 for income and 0 36 for price these estimates are lower in absolute value than have been previously estimated and it is suggested that this may be due to the low income nature of the sample

alternative policy impacts on us ghg emissions and energy security a hybrid modeling approach abstract this study addresses the possible impacts of energy and climate policies namely corporate average fleet efficiency cafe standard renewable fuel standard rfs and clean energy standard ces and an economy wide equivalent carbon tax on ghg emissions in the us to the year 2045 bottom up and top down modeling approaches find widespread use in energy economic modeling and policy analysis in which they differ mainly with respect to the emphasis placed on technology of the energy system and or the comprehensiveness of endogenous market adjustments for this study we use a hybrid energy modeling approach markal macro that combines the characteristics of two divergent approaches in order to investigate and quantify the cost of climate policies for the us and an equivalent carbon tax the approach incorporates macro economic feedbacks through a single sector neoclassical growth model while maintaining sectoral and technological detail of the bottom up optimization framework with endogenous aggregated energy demand our analysis is done for two important objectives of the us energy policy ghg reduction and increased energy security our results suggest that the emission tax achieves results quite similar to the ces policy but very different results in the transportation sector the cafe standard and rfs are more expensive than a carbon tax for emission reductions however the cafe standard and rfs are much more efficient at achieving crude oil import reductions the gdp losses are 2 0 and 1 2 relative to the base case for the policy case and carbon tax that difference may be perceived as being small given the increased energy security gained from the cafe and rfs policy measures and the uncertainty inherent in this type of analysis

media legitimation effects in the market for initial public offerings in this study we argue that media provided information affects investors impressions of newly public firms in 225 initial public offerings ipos the volume of mediaprovided information had a negative diminishing relationship with underpricing and a positive diminishing relationship with stock turnover on the first day of trading the relationship between the tenor of media provided information and underpricing increases at a nonlinear rate and decreases similarly for turnover findings provide important evidence that publicly available information not only reflects ipos legitimacy but also adds to their legitimacy and influences investor behavior in the last 20 years an increasing amount of research on markets has been conducted from a social constructionist perspective emphasizing how social structures enhance the flow of useful and credible information that market participants use to reduce the uncertainty of market exchanges e g aldrich fiol 1994 zuckerman 1999 further recent organizational research has begun to stress the influence of information intermediaries such as financial analysts and the media on mar

a structural model of the demand for owner occupied housing abstract the goal of the analysis in this paper is to estimate a structural model of the demand for owner occupied housing in our framework the buyer selects the value of the house the size of the mortgage and the length of stay in the house we estimate a housing demand equation which includes both the length of stay and the loan to value ratio as endogenous variables one empirical result of interest is that the income elasticity of demand for housing found in the structural housing demand equation is much larger than the value estimated in the reduced form we also point out some occasions when it is important to distinguish between a reduced form and a structural model of housing choices

entry into emergent and uncertain product markets the role of associative rhetoric we analyze how firms use media associative rhetoric in their decisions to enter emergent and uncertain product markets in the context of our study this type of rhetoric associates the logics of firms existing markets with the not yet legitimated logics of a newly emerging market our panel study shows that firms enter such markets faster when the associative rhetoric has higher versus lower volume positive versus negative tenor firms versus journalists analysts as the source of information and generalizations versus specific cases as the focus we discuss the implications of our findings for institutional theory and market entry

minimum cost strategies for sequestering carbon in forests this paper examines the costs of meeting explicit targets for increments of carbon sequestered in forests when both forest management decisions and the area of forests can be varied costs are estimated as welfare losses in markets for forest and agricultural products results show greatest change in management actions when targets require large near term flux increments while land area change is largest when long term increments are needed marginal costs per tonne of carbon flux do not vary greatly with the form of the target and are similar to findings of earlier studies for comparable size of average carbon flux increment

estimation of dynamic linear expenditure functions for housing the effectiveness of programs designed to improve the housing of low income renter households by increasing their demand for housing through income supplements or price discounts has recently been questioned based largely on the results of the experimental housing allowance program ehap the results from ehap generally indicate small consumption responses on the part of low income households i e inelastic price and income elasticities of demand for housing see friedman and weinberg 1978 mulford 1979 and hanushek and quigley 1979 however using a cross section of households sampled before the experiment began and a static linear expenditure specification cronin 1979 obtains static price elasticity estimates substantially exceeding in absolute value those estimated with experimental data i e 0 53 to 1 00 for the former versus 0 16 to 0 21 for the latter the estimates of static current income elasticities about 0 2 to 0 3 were similar to those found in ehap this paper extends the previous analysis by obtaining dynamic estimates of housing income and price elasticities from the linear expenditure system results indicate that the responsiveness of households may be greater than previously indicated short run elasticities are found to be highly inelastic however when households are stratified by the time period since their move to allow for varying adjustment toward equilibrium long run elasticities are often found to approach unity the conceptual framework for the analysis is presented in section ii data samples of households and definitions of variables are discussed in the first part of section iii results are presented and discussed in the second part

dynamic incentives of environmental regulations the effects of alternative policy instruments on technology diffusion abstract we develop a framework for comparing empirically the effects of alternative environmental policy instruments on the diffusion of new technology market based and command and control approaches can he quantitatively compared by estimating the economic penalty that firms through their actions reveal to be associated with violation of standards in the context of concerns about global climate change we empirically examine the likely effects of pigouvian taxes technology adoption subsidies and technology standards we employ state level data on the diffusion of thermal insulation in new home construction comparing the effects of energy prices insulation cost and building codes

moving costs and housing demand abstract several recent housing demand studies use samples of recent movers based on the presumption that only such households are on their demand curves we find contrary to this presumption that the absolute values of the residuals from a standard housing demand equation fall with duration in the present dwelling this shows that the correlation pattern between housing and the explanatory variables at the moving date does not correspond to the average pattern over a typical housing spell we interpret this as evidence of forward looking behavior and show how it may be handled in econometric work with cross section samples

the costs of carbon sequestration a revealed preference approach increased concem by policy makers with the threat of global climate change has brought with it considerable attention to the possibility of encouraging the growth of forests as a means of sequestering carbon dioxide national academy of sciences nas 1992 james p bruce et al 1996 1 the kyoto protocol to the united nations framework convention on climate change 1997 which establishes emission reduction targets for the united states and other industrialized nations states that carbon sequestration can be used by participating nations to achieve their targets moreover even before the kyoto agreement this approach had become an explicit element of both u s and intemational climate policies u s department of energy 1991 united nations general assembly 1992 william j clinton and albert gore 1993 this high level of interest has been due in part to suggestions that sufficient lands are available to use the approach to mitigate a substantial share of annual carbon dioxide c02 emissions greg marland 1988 daniel a lashof and dennis a tirpak 1989 mark c trexler 1991 and claims that growing trees to sequester carbon is a relatively inexpensive means of combating climate change roger a sedjo and allen m solomon 1989 daniel j dudek and alice leblanc 1990 nas 1992 in other words the serious attention given by policy makers to carbon sequestration can partly be explained by implicit assertions about respective marginal cost functions i develop and demonstrate a method by which the costs of carbon sequestration can be estimated on the basis of evidence from landowners behavior when confronted with the opportunity costs of alternative land uses the simplest of previous economic analyses derived single point estimates of average costs associated with particular sequestration levels marland 1988 sedjo and solomon 1989 dudek and leblanc 1990 edwin s rubin et al 1992 omar masera et al 1995 often it has been assumed that land opportunity costs are zero g van kooten et al 1992 j k winjum et al 1992 new york state energy office 1993 robert k dixon et al 1994 another set of studies essentially engineering costing models has constructed marginal cost schedules by using information on revenues and costs of production for altemative uses on representative types or locations of land and then sorting these in ascending order of cost robert j moulton and kenneth r richards 1990 richards et al 1993 simulation models include a model of the lost profits due to removing land from agricultural production peter j parks and ian w hardie 1995 a mathematical programming model of the agricultural sector and the timber market richard m adams et al 1993 a related model incorporating the effects of agricultural price support programs j m callaway and bruce mccarl 1996 and a dynamic simulation model of forestry susan swinehart 1996 lastly an analysis by andrew j plantinga 1995 adopts land use elasticities from an econometric study to estimate sequestration costs we draw on some of the best features of the previous studies including the carbon levelization method of moulton and richards john f kennedy school of government harvard university 79 john f kennedy street cambridge ma 02138 and resources for the future richard newell supplied excellent research assistance and valuable comments on a previous version were provided by lawrence goulder william nordhaus andrew plantinga kenneth richards two anonymous referees participants in seminars at the universities of california at los angeles and santa barbara the university of maryland the university of michigan the university of texas harvard university stanford university yale university resources for the future and the national bureau of economic research the author alone is resdonsible for any errors 1 after fossil fuel combustion deforestation is the second largest source of carbon dioxide emissions estimates of annual global emissions from deforestation range from 0 6 to 2 8 billion tons compared with slightly less than 6 0 billion tons annually from fossil fuel combustion cement manufacturing and natural gas flaring combined r a houghton 1991 t m smith et al 1993

climate change interactions with agriculture forestry sequestration and food security climate change can negatively affect crop productivity decreasing food production in many regions across the world literature suggests forest carbon sequestration fcs is a good alternative to mitigate climate change due to its ability to sequester carbon at low cost nevertheless fcs subsidies have not been addressed together with impacts on food security and climate change reduced crop yields in our multidisciplinary work we collected the crop yield shocks from global circulation crop modeling we also developed a new version of a computable general equilibrium model for the economic analysis thus we evaluate the global economic impacts of using carbon taxes and fcs to achieve 50 emission reductions we find that implementing an aggressive fcs incentive can cause substantial increases in food prices because of land competition between forest and crop production without climate induced yield reductions fcs is attractive but not with the yield reductions with the climate induced yield shocks food price increases are huge so large that it is clear this approach could not be adopted in the real world the results cry out for investment in agricultural research on climate adaptation our findings suggest economic well being falls more without mitigation than with 50 emission reductions

the impact of dwelling quality and neighbourhood quality on the estimation of the income elasticity of demand for rental housing in jeddah saudi arabia this study provides new evidence on the estimation of the income elasticity of demand for rental housing based on individual interviews with 405 households it looks specifically at the impact of both dwelling and neighbourhood quality aspects on the evaluation of this elasticity the study finds that the income elasticity of demand for rental housing in jeddah is 0 519 when the sample is restricted to include saudi households only the elasticity estimate is 0 465 these values are within the range of previous empirical estimates the results also indicate that for a range of various quality measures the income elasticity is estimated to be less than unity but our suggested quality aspects were found to exert sizeable differences on the magnitude of this elasticity for the full sample from 0 351 to 0 802 as well as for the saudi sample from 0 382 to 0 603 stratified income elasticity estimates for saudis were also found to be generally less than those for the whole sample

dynamic modeling of housing tenure choice abstract in this study a dynamic random effects simultaneous equation model is developed to model household tenure choice decision the novelty of the study lies in accounting for the dynamic aspects of housing tenure mode namely a move is prerequisite to a change in tenure mode and they are determined jointly expected mobility and tenure choice are interdependent decisions and tenure choice may be state dependent i e taste for ownership acquired or reinforced through the experience of being an owner in addition unobservable household heterogeneity is controlled by imposing a random effects specification the estimation is based on panel data from the psid using the method of maximum simulated likelihood

housing demand and disequilibrium abstract researchers have recently begun relying heavily on samples of recent movers to estimate housing demand parameters estimates from mover equilibrium and disequilibrium samples are compared to determine whether significant differences exist the results suggest that income elasticities are not affected by the sample distinctions but demographic effects vary across the different subsamples

moving and improving strategies for attaining housing equilibrium the concept of equilibrium consumption is central to much housing market analysis yet analysts must contend with the likelihood that many housing consumers are not at an exact equilibrium level of

does investment risk affect the housing decisions of families i introduction the purpose of this article is to investigate the effect of heightened price volatility in housing markets on homeownership and housing demand the literature on housing markets has recognized that buying a home involves consumption and investment motives as in ranney 1981 henderson and ioannides 1983 and fu 1995 purchasing a home requires a concentrated investment in housing stock that for most families is not easily diversified caplin et al 1997 indeed in 1995 the typical american household had most of its gross assets in real estate and held no corporate equity and only households in the top 10 of the wealth distribution held portfolios that were diversified tracy et al 1999 in 1998 despite strong stock market gains home equity was a dominant investment for most households although roughly two thirds owned their homes less than half of all households held stock of those households owning both stocks and homes 60 had more wealth in home equity than in stocks di 2001 nominal house prices in u s cities have generally risen over time with some cities experiencing periods of steep house price appreciation however homeowners in many cities have been exposed to considerable downside risk according to repeat sales price indexes published by the federal home loan mortgage corporation freddie mac significant one year declines in home prices are not uncommon for example nominal declines of 15 5 and 9 occurred in san antonio in 1985 denver in 1987 and boston in 1990 respectively sustained house price declines have occurred in texas california and the eastern states for example in the long beach los angeles metropolitan area the nominal price of single family homes declined 22 from 1990 to 1996 1 furthermore there is evidence that losses at the time of sale are surprisingly common 2 what is not clearly understood is the extent to which families are responsive to such house price risk the investment literature has demonstrated that risk averse households prefer to hold less risk at a given expected rate of return when house prices are uncertain homeownership and demand relationships depend on the distribution of the random price variable 3 fu 1991 characterizes the price distribution by its first and second moments and shows that the likelihood of homeownersbip and the demand for owner occupied housing are increasing in the expected rate of house price appreciation and decreasing in house price volatility these results do not hold however for liquidity constrained households when households cannot borrow against the expected future gains of housing investment for current consumption the theoretical effects on housing choices of the expected rate of return and house price uncertainty are ambiguous fu 1995 thus the effect of price volatility on housing choices remains to be determined empirically the empirical research on housing markets includes a number of micro level econometric studies on the determinants of homeownership and housing demand these studies provide a framework for the present study and have shown that a household s after tax relative cost of homeownership permanent and transitory income and family composition are important in explaining housing decisions e g see rosen 1979 dynarski and sheffrin 1985 henderson and ioannides 1987 1989 in addition homeownership is negatively impacted by income uncertainty haurin 1991 and by an inability to generate savings for a down payment as in henderson and ioannides 1987 linneman and wachter 1989 haurin et al 1994 and gyourko et al 1999 nevertheless despite the importance of owner occupied housing in the portfolios of homeowners surprisingly little empirical work exists on the housing choices of families in the presence of house price uncertainty rosen et al 1984 provide some empirical evidence on the question of housing choices and risk

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

unintended impacts of public investments on private decisions the depletion of forested wetlands by affecting relative economic returns infrastructure investments can induce major changes in private land use the authors find that 30 percent of forested wetland depletion in the mississippi valley has resulted from private decisions induced by federal flood control projects despite explicit federal policy to preserve wetlands the model aggregates individual land use decisions using a parametric distribution of unobserved land quality dynamic simulations are used to quantify the impacts on wetlands of federal projects and other factors copyright 1990 by american economic association