analysis of the changing influences on traditional households ownership patterns abstract sociological and economic forces have begun to alter ownership patterns in ways not yet captured by movements in the aggregate ownership rate while demographic factors such as marital status and family structure remain influential in determining tenure choice their impact has waned particularly among the best educated households and those with rising real incomes labor market conditions as evidenced by increasing returns to skill are more strongly felt than ever before in the housing market the impact on owning of being highly educated now rivals the influence of being married with minor children increasingly delayed ownership is a reality even for traditional family units with 36 to 45 year old heads that have not prospered in the labor market the rising real cost of even relatively inexpensive suburban housing is also beginning to be reflected in a heightened impact for real family income on tenure choice finally race currently is more adversely influential in determining suburban ownership for young middle aged minority families than it was in 1960 particularly if the household head is not well educated we suspect this is due to racially disparate impacts of increasingly rigorous zoning regulations and higher impact fees in the suburbs

household formation housing prices and public policy impacts abstract this paper specifies and estimates a model of housing demand that explicitly includes the decision of individuals to form independent households parameter estimates reveal a considerable response of headship rates not only to income but also to housing prices analysis of housing policies ignoring the endogeneity of household formation is thus potentially biased the model is employed to evaluate the effects of a housing voucher program simulated responses indicate that such a program creates a substantial additional demand for housing due to its positive impact on the propensity of young and elderly persons to live independently

living arrangement and university choice of dutch prospective students sa c florax r j g m and rietveld p living arrangement and university choice of dutch prospective students regional studies the nature of university choice and living arrangement decisions of dutch prospective students is analysed a random utility maximization nested logit model of living arrangement and university choice decisions is estimated estimation results show distance deters both prospective students living at the parental home and those living elsewhere dutch youngsters appear not to be guided by investment motives they attend the same university as their high school peers tight housing markets lower the probability of choosing a given university male and low income students stay longer with their parents in comparison with prospective students with non dutch parents sa c florax r j g m and rietveld p logit

local house prices parental background and young adults homeownership in england and wales this is the author accepted manuscript the final version is available from sage via https doi org 10 1177 0042098016668121

the impact of imf programs on asset values abstract this paper provides evidence on the effectiveness of the imf by examining the impact of its program on wealth we analyze all imf press releases about forthcoming aid for 16 emerging countries during the period 1989 1999 together with references in the financial times to possible imf support using event study methodology we measure the impact of these announcements on the prices of a number of assets including equities currencies domestic and foreign bank stocks and sovereign debt our findings suggest that neither the imf announcements nor the ft news have a measurable effect on asset values the exceptions are the announcements in the ft that suggest imf support is less likely to be forthcoming in these cases we observe negative abnormal returns

the impact of housing costs on the living arrangements of single mothers abstract this paper investigates the impact of housing costs on a single mother s living arrangement decision whether to head her own household or live in the household of other adults the empirical analysis is conducted using individual level data from the 1986 current population survey and msa level housing cost data based on hud s fair market rents consistent with a priori expectations the major finding is that increased housing costs significantly reduce a single mother s probability of household headship this result is especially pronounced for single mothers under age 36

intergenerational mobility and sample selection in short panels using data from the first 11 waves of the bhps this paper measures the extent of the selection bias induced by standard coresidence conditions bias that is expected to be severe in short panels on measures of intergenerational mobility in occupational prestige we try to limit the impact of other selection biases such as those induced by labour market restrictions that are typically imposed in intergenerational mobility studies by using different measures of socio economic status that account for missing labour market information we stress four main results first there is evidence of an underestimation of the true intergenerational elasticity the extent of which ranges between 12 and 39 second the proposed methods used to correct for the selection bias seem to be unable to attenuate it except for the propensity score weighting procedure which performs well in most circumstances this result is confirmed both under the assumption of missing at random data as well as under the assumption of not missing at random data third the two previous sets of results direction and extent of the bias and differential abilities to correct for it are also robust when we account for measurement error fourth restricting the sample to a period shorter than the 11 waves under analysis leads to a severe sample selection bias in the cases when the analysis is limited to eight waves this bias ranges from about 40 to 65 copyright 2006 john wiley sons ltd

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

caught in the housing bubble immigrants housing outcomes in traditional gateways and newly emerging destinations research has documented that immigrants have moved in large numbers to almost every metropolitan area and select rural areas in the us in the midst of these demographic shifts the country has experienced a profound recession to date there has been little research on the impact of the recession on immigrants across the us using 2006 and 2009 american community survey microdata the paper assesses how the recent economic crisis has affected latino and asian immigrants with respect to two housing outcomes homeownership and headship over two important time points in the recent economic cycle immigrants have worse housing outcomes and significantly lower mobility rates after the recession regression results suggest that the negative impacts from the recession are strongest in the gateway metropolitan areas and that after controlling for residence in the hardest hit areas increases in metropolitan level unemployment and mortgage delinquency rates have a negative impact on homeownership rates the results also suggest that even though the recession has disrupted immigrants upward trajectory in the housing markets the effect has not been as severe on immigrants as one might expect in particular the places where immigrant populations are newest have not experienced as large a reduction in homeownership as those in the large immigrant gateways even in the established gateways the decline in homeownership has been smaller for immigrants than for us born households

household formation by the young in the united states a model of household formation by the young is specified and estimated it was found that the headship rate for the young in the united states depends on income the cost of housing the number of families receiving afdc payments the age at first marriage for females and for males and the percentage of males enrolled in college household formation by the young is much more sensitive to changes in income and the price of housing than household formation by the entire adult population the estimated results are used to examine the change in the headship rate from 1961 to 1979 and from 1979 to 1987

tax subsidies to owner occupied housing an asset market approach inflation reduces the effective cost of homeownership and raises the tax subsidy to owner occupation this paper presents an asset market model of the housing market and estimates how changes in the expected inflation rate affect the real price of houses and the equilibrium size of the housing capital stock simulation results suggest that the accelerating inflation of the 1970s which substantially reduced homeowners user costs could have accounted for as much as a 30 percent increase in real house prices persistent high inflation rates could lead ultimately to a sizable increase in the stock of owner occupied housing

observing bailout expectations during a total eclipse of the sun abstract the literature has not reached a consensus yet regarding the existence of sovereign creditor moral hazard exploiting an exceptional historical example this paper proposes an original method to address this issue as the corona which is observable only during a total eclipse of the sun market specific prices of repudiated bonds are observable only when extreme conditions segment the markets such very rare events allow for isolating pure country specific bailout expectations the paper shows that bailouts do create creditor moral hazard based on an impulse response analysis the econometric results further emphasize the influence of bailout expectations in sovereign bonds valuation

vertical debt spillovers in emu countries abstract this article examines the extent to which subnational governments may drive sovereign risk premiums is subnational fiscal policy affecting the interest rates on central government bonds furthermore we focus on a number of causal mechanisms that may mitigate or reinforce these upstream vertical spillovers i e the presence of bailout expectations and subnational borrowing autonomy our findings indicate that debt accumulation by subnational governments sng spills over onto sovereign risk premiums when the restrictions on sng borrowing are weak and when investors believe that subsovereign debts are backed by the center the results suggest that spillovers may be reduced through a proper design of a country s fiscal and institutional framework countries should either bolster the sovereignty of subnational governments by increasing sng fiscal autonomy or tightening up sng borrowing constraints

a semi nonparametric approach to the demand for uk monetary assets we estimate an asymptotically ideal model of the demand for uk personal sector monetary assets we use data that are consistent with utility maximizing behaviour and find that uk monetary assets are generally substitutes in use the estimated elasticities of substitution during the 1980s and the early 1990s indicate that a relatively broad monetary aggregate should be used in economic studies the results also suggest that any policy based on interest or user cost elasticities of substitution between financial assets should be based on the morishima elasticities as the allen uzawa calculation can give misleading results

moving back home insurance against labor market risk this paper demonstrates that the option to move in and out of the parental home is a valuable insurance channel against labor market risk which facilitates the pursuit of jobs with the potential for high earnings growth using monthly panel data i document an empirical relationship among coresidence individual labor market events and subsequent earnings growth i estimate the parameters of a dynamic game between youths and parents to show that the option to live at home can account for features of aggregate data for low skilled young workers small consumption responses to shocks high labor elasticities and low savings rates

mexico s balance of payments crisis a chronicle of a death foretold this paper claims that the roots of mexico s balance of payments crisis are found in the prevailing high degree of capital mobility and financial globalization under these circumstances shifts in foreign capital flows and anticipation of a banking system bailout may produce large imbalances between stocks of financial assets and foreign reserves threatening the sustainability of currency pegs econometric analysis suggests that half of mexico s reserve losses could be accounted for by these phenomena large financial imbalances are also fertile ground for self fulfilling prophesy crises which lead devaluations to produce deep recessions these difficulties can be partly remedied by appropriate policies

housing decisions of american youth abstract prior studies of household tenure choice have not accounted for possible simultaneity with household formation and labor supply decisions we address these methodological issues and introduce new measures of the relative cost of homeowning and potential earnings capacity we also estimate the demand for the quantity of owner occupied housing accounting for the limitation of the sample to those choosing to live alone and be homeowners potential earnings and housing rental costs affect young adults decisions of whether to live alone as single or married or with parents or some other group of adults tenure choice is influenced by wealth the relative cost of homeowning and a number of demographic variables housing demand depends on owner costs elasticity near 0 5 and potential earnings elasticity near 0 5

how do official bailouts affect the risk of investing in emerging markets we analyze the effects of bailout expectations on sovereign bond spreads in emerging markets the non bailout of russia in august 1998 is interpreted as an event that decreased the perceived probability of future crisis lending to emerging markets if official rescues are expected to mitigate the losses of investors in the event of a crisis such an event should raise the cross country dispersion of spreads because investors pay more attention to differences in risk characteristics across countries we find strong evidence for such an effect this is consistent with the existence of investor moral hazard at least prior to 1998

an empirical comparison of flexible demand system functional forms this paper compares the performance of eight frequently used flexible forms that are either 1 locally flexible 2 effectively globally regular or 3 asymptotically globally flexible results show that the functions with global properties generally perform better particularly those models having asymptotic properties results using us consumption data indicate substitutability among the components of consumption at most data points there is also some interesting substitution volatility around the time of recessions in the usa copyright 2001 john wiley sons ltd

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

the demand for housing household headship rates and household formation an international analysis this study investigates the influence of availability and affordability of housing on demographic changes through an international analysis of the relationship between age specific headship rates and housing availability and affordability the researchers describe the basic trends in household formation and headship rates in canada france great britain and the united states investigate the economic determinants of age specific household headship rates in the four countries and discuss the implications for future housing analysis the findings indicate that the considerable increase in household headship rate during the recent postwar period has been facilitated in these four countries by the increasing real affordability of housing in addition there was a clear relationship between the household age category and the responsiveness to economic variables excerpt

the demand for housing in britain and population ageing microeconometric evidence the paper estimates a household s demand function for housing using household data esti mates of the price and current income elasticities are robust at about 0 4 and 0 5 respec tively independent of price and income effects there is a strong age pattern to household demand in conjunction with the age profile of household formation this pattern implies that changes in the age distribution of the population have important effects on aggregate housing demand although economic growth dominates in determining its rate of growth during the 1980s there was a dramatic boom in british house prices followed by large declines in the early 1990s while financial deregulation and rapid growth in real incomes for people in non manual occupations contributed to the rise in housing demand and prices changes in the population s age distribu tion also played a role ermisch 1990 in particular the number of people in the prime ages for first house purchase increased as a consequence of the baby boom of the 1960s the fall in birth rates during the 1970s and continued low fertility during the 1980s entail smaller numbers in these prime ages and an ageing of the population more generally what effect will these changes in the age distribution of the population in britain have on housing demand and house prices it may be possible to use aggregate data to answer this question e g in fair and dominguez 1991 but as recently stressed by stoker 1993 the most informative assessments of such distributional effects on demand come from studying individual level cross section or panel data a recent study in this vein by mankiw and weil 1989 of the us housing market experience has attracted a great deal of attention because it suggests that house prices are going to fall dramatically in the coming years because of the ageing of the population while their study estimates an age pattern of housing demand from micro data they admit it is a biased estimate and their conclusions concerning the impact of age distribution on house prices are based on a simple aggregate time series equation which omits income and other housing demand and sup ply shifters this paper takes a microeconometric approach it estimates a demand func tion for housing in britain and then examines the implications of prospective changes in the age distribution for housing demand an important by product in estimating the demand function is an estimate of the price elasticity of housing demand despite the importance of this parameter in assessing the impact of policy changes estimates of it for britain are few and existing ones are questionable because of the absence of appropriate data for its estimation

the year of the cat taxing nuclear risk with the help of capital markets abstract this paper proposes new regulation for nuclear power reactors aimed at increasing their safety we begin by describing how limited liability leads to risk loving behaviour in nuclear power companies and unsafe nuclear power reactors by reviewing current regulatory regimes we show that this issue is not being sufficiently addressed today therefore we evaluate five regulatory instruments 1 safety regulation 2 minimum equity requirements 3 mandatory insurance 4 risk sharing pools and 5 catastrophe bonds we conclude that any of these instruments either cannot be recommended in its pure form or is infeasible in reality we therefore propose a new approach that in its core consists of a two stage procedure in the first stage capital markets assess the risk stemming from each nuclear reactor via catastrophe bonds in the second step the regulator uses this private risk assessment and intervenes by charging an actuarially fair premium in the form of a pigouvian risk tax society ultimately acts as an explicit insurer for nuclear risk and is on average fairly compensated for the risk it is taking over

first time house buying and catch up a cohort study 2015 the london school of economics and political science we investigate whether different ages of first time house buying lead to persistent differences in homeownership between cohorts our data span nearly 40 years and multiple cycles of england s volatile house prices ownership rates at thirty have differed substantially with a significant negative association with prices the persistence of differences is assessed using synthetic cohort techniques two methods of dealing with measurement error problems both indicate that cohorts with low ownership rates at thirty catch up almost all of the ownership gap by forty earlier access to homeownership may result in the ownership of slightly larger homes at around forty

the changing route to owner occupation the impact of borrowing constraints on young adult homeownership transitions in britain in the 1990s the reduction in young adult homeownership rates in britain in the 1990s was partly caused by demographics and partly by a shift in the income distribution most of their relative income deteriorat

measuring substitution in monetary asset demand systems the allen elasticity of substitution aes is widely used to study monetary asset substitution and structural demand stability blackorby and russell showed that the aes is uninformative and that the morishima elasticity of substitution mes is the appropriate measure a point overlooked in the monetary literature use of improper measures can lead to incorrect inferences this article considers five alternative measures of substitution the aes the mes the hicksian and marshallian elasticities of demand and mundlak s unencountered but appealing constant cost elasticity of substitution selection of the substitution measure appropriate to respective research questions is addressed

intergenerational support and the life cycle incomes of young men and their parents human capital investments coresidence and intergenerational financial transfers this article examines the resource allocations of parents in the form of both shared residence with and financial transfers to their young adult sons based on an overlapping generations model incorporating a game between parents and adult children estimates of the determinants of such transfers are obtained from the kinship linked cohorts of the national longitudinal surveys the estimates suggest that both types of parental assistance are as important as governmental transfers in supporting young men and are responsive to the current and anticipated earnings of their offspring suggesting that young men cannot adequately smooth their consumption without parental help

parental wealth and first time homeownership a cohort study of family background and young adults housing situation in sweden this paper investigates whether family background seems to have any influence on first time homeownership recent studies have indicated that it has become more difficult to become established in the housing market and such situations may increase the importance of parental wealth in this study parental wealth is estimated as family background information on parents homeownership father s socioeconomic status and single parenting unique cohort data for three birth cohorts suggest that there is a significant cohort effect in young adults tenure decision furthermore the results imply that parents homeownership has become a more important predictor of the transition to first time homeownership for those young adults facing increasing problems in the housing market

firm and guarantor risk risk contagion and the interfirm spread among insured deposits we develop a model of third party guaranteed debt and show that interest rate premiums are multiplicatively related to firm and guarantor risk we apply the model to thrifts issuing cds guaranteed by the fslic and then estimate firm probabilities of insolvency and guarantor risk across 20 observed months this time period spans the insolvency of the guarantor followed by two recapitalizations the relative stability in firm risk across time offers no evidence of generalized risk contagion among firms we attribute elevated cd premiums and rate spreads to increases in guarantor risk rather than changes in firm risk on third party guaranteed debt the risk of both the issuing firm and guarantor determines the interest rate we show that the interest premium above the riskless treasury rate for guaranteed debt is multiplicatively related to two factors the probability of firm insolvency and the expected cost of an incomplete guarantor payoff we demonstrate that the presence of the guarantor obscures firm risk despite this our model provides the basis for measuring firm risk as well as guarantor risk we explain how different rates can exist on different firms debt with the same guarantor and how spreads among the different firms rates widen when the guarantor becomes riskier only a riskless guarantor causes the spreads to disappear our model fits nicely the case where savings and loans issue certificates of deposit cds and the guarantor is the government s deposit insuring agency the federal savings and loan insurance corporation fslic in this case the debt instrument the guarantor and the guarantee are the same for all the firms we apply the model over a 20 month period beginning in january 1987 when fol lowing hundreds of thrift failures the fslic announced its own insolvency the

parental and public transfers to young women and their children this paper presents estimates of how an increase in welfare benefits for the welfare eligible affects the provision of parental support in the form of both financial transfers and shared residence based on an overlapping generations framework incorporating game theoretic interactions among parents their adult children and the government the empirical results obtained from two longitudinal data sets indicate that the parents view a dollar of income earned by their daughters as equivalent to a dollar increase in welfare benefits however there exists only a small trade off between the generosity of government aid and the incidence of parental aid data are for the united states and are from the national longitudinal survey of young women for 1968 1984 and the national longitudinal survey of youth for 1979 1984 excerpt

prices parents and young people s household formation an economic theory of young people s decision to live apart from parents is presented and used to structure econometric analyses of the processes of leaving the parental home and returning to it which employ data from the british household panel survey for the first half of the 1990s the econometric estimates support the predictions of the theory in particular tighter housing markets as indicated by higher regional relative house prices significantly retard home leaving especially the formation of partnerships and encourage returns to the parental home young people with larger current income are more likely to leave but less likely to return to the parental home

who marries whom in a surging housing market abstract this paper investigates the impact of a surging housing market on marital sorting our empirical analysis shows that there is increasing assortativeness on original family background in response to housing price appreciation that is for husbands when the down payment doubles one more year of paternal schooling predicts a marriage in which the father in law s schooling is 0 057 year greater than in a scenario in which the down payment does not increase the rising assortativeness could exacerbate the already expanding inequality caused by the booming housing market in addition to the benchmark analysis we find that a divorce reform which awards assets proportionate to the shares the spouses paid for the initial down payment rather than awarding equal shares upon divorce alleviates assortativeness the evidence suggests that joint investment in housing is likely to be a significant consideration in marital sorting

imf bailouts and moral hazard this paper empirically investigates the extent of investor moral hazard associated with imf bailouts by analyzing the responses of sovereign bond spreads to the changes in the perceived probability of imf bailouts of countries undergoing financial crisis we do not find strong evidence that the extent of investor moral hazard changed after the non bailout of russia in august 1998 that signaled a modification to imf intervention policy in contrast we find evidence that investor moral hazard is intensified for those countries that have stronger political connections to the imf and that are thereby more likely to be bailed out by the imf this pattern prevailed even after the russian crisis

the impact of real rents and wages on household formation although the economic literature has analyzed some components of the headship decision study of household formation has been primarily in the realm of demography the authors expand the demographic model to include economic determinants of the decision to remain with parents or not and to live with a group or separately they focus on measuring the effect of spatial variations in rental costs on the probability of forming a household the authors results based on a sample of 2 573 youths in their twenties indicate that the cost of housing and potential labor earnings are important variables in explaining this probability copyright 1993 by mit press

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

the demand for assets and optimal monetary aggregation this paper uses a highly disaggregated demand system to estimate the degree of substitutability among monetary assets and to address the issue of optimal monetary aggregation in the united states we address the problems of dimensionality and nonlinearity estimating a very detailed monetary asset demand system encompassing the full range of assets based on the locally flexible normalized quadratic expenditure function we treat the concavity property as a maintained hypothesis and provide evidence consistent with neoclassical microeconomic theory statistical tests reject the appropriateness of the aggregation assumptions for all the money measures published by the federal reserve as well as for a large number of groupings suggested by earlier studies this supports and reinforces barnett s 2016 assertion that we should employ the broadest m4 monetary aggregate published by the center for financial stability

the social and private micro level consequences of homeownership abstract this paper reviews the literature that describes the micro level economic and social consequences of homeownership we adopt an interdisciplinary approach and include studies from economics sociology geography political science psychology and other disciplines our focus is on the set of consequences of homeownership in developed countries our list of potential outcomes of homeownership includes the impact on household wealth and portfolio choice mobility labor force participation urban structure and segregation home maintenance political and social activities health demographics self esteem and child outcomes there is substantial evidence that homeownership has important effects on some household behaviors and outcomes however we find that much of the past 30 year s literature on consequences of homeowning is deficient from a theoretical or econometric perspective we suggest solutions and identify research gaps present in the literature

results of a study of the stability of cointegrating relations comprised of broad monetary aggregates abstract we find strong evidence of a stable money demand relationship for mzm and m2m through the 1990s though the m2 relation breaks down somewhere around 1990 evidence has been accumulating that the disturbance is well characterized as a permanent upward shift in m2 velocity which began around 1990 and was largely over by 1994 taken together our results support the hypothesis that households permanently reallocated a portion of their wealth from time deposits to mutual funds although this reallocation may have been induced by depository restructuring we argue that the substitution could be explained by appropriately measured opportunity cost

educational choice families and young people s earnings this paper presents two optimizing models of educational choice discusses issues of identification estimates earnings equations in the context of these models and presents conditions under which we can test one against the other the estimates indicate that education is endogenous for young people s earnings creating a downward bias in estimated returns from education that assume exogeneity identification and estimation relies on family background information from a special sample from the british household panel study 1991 95 which matches mothers and their young adult children our estimates favor a family model over an individual model and they suggest that parents allocate resources to education to compensate for differences in their children s earnings endowments

what happens to household formation in a recession abstract while many studies have investigated the determinants of housing demand very few studies have focused on how economic conditions affect the formation of potential households directly potential households may choose to delay entry into the housing market by remaining with one s parents during times of economic hardship or by combining with other persons to share housing costs using a variety of modeling approaches we find that both the increase in the unemployment rate and the presence of recessions reduce the rate of household formation simulations suggest that these declines are substantively important for example in a recession the likelihood that a young adult will form an independent household falls by 1 9 points depending on the age of the person by way of comparison if an individual is unemployed the likelihood of leaving the parental home is up to 11 points lower

the economic determinants of young people s household formation the paper derives predictions about the impact of the price of housing young adults income and parental income on the probability that a young adult in the united kingdom lives apart from his her parents it shows that the predicted effect of the price of housing is intimately related to the price elasticity of housing demand it uses longitudinal data on a cohort of britons born in 1958 surveyed in the national child development study to estimate dynamic models of first departure from the parental home and particularly to estimate the impact of housing price on the timing and destination of first departure excerpt

the joint determination of household membership and market work the case of young men except in special cases market work and household membership are jointly chosen a nash bargaining model of family behavior is used to specify stochastic structural relationships two indirect utility functions and a market and a reservation wage function that jointly determine work consumption and household membership the maximum likelihood estimates of the implied trinomial probit model differ sharply from those obtained when either market work or household membership is taken as exogenous this application to white male youths from the national longitudinal surveys shows the insurance function of families parents insure their sons against poor market opportunities

monetary aggregation and the demand for assets in this paper we consider and illustrate a solution to the inter related problems of monetary aggregation and estimation of money demand the problem with the definition of money is that the relative prices of the monetary components fluctuate over time rendering simple sum aggregates inefficient the authors apply revealed preference tests to the u s monthly data to determine admissible and separable components these components are then aggregated using the divisia technique to deal with the problem of money demand the dynamic fourier expenditure system is used to provide estimates of the elasticities of substitution these while showing general substitution among the liquid assets studied are quite variable over time this finding underscores the inefficiency of both simple sum aggregation and single equation log linear money demand estimation copyright 1997 by ohio state university press

decomposing canada s growing housing affordability problem do city differences matter this article examines the role of eight factors that affect the prevalence and incidence of housing affordability problems geography demography migration immigration ethnicity income recipients income source employment and education it develops bivariate probit models that use the 1991 and 1996 canadian census public use microdata to predict the joint probability that a household spends more than half of its income on housing and that its income is below the poverty line the conclusions show that city and regional differences are negligible after the effects of the factors common to all the cities have been accounted for changing employment levels and sources of household income are the most important factors explaining the prevalence and growth of housing poverty while single parents have the highest incidence the growth of the problem is mostly in the young non family households migration immigration and ethnicity play a role that is independent of the other factors education has almost n

exploring the household impacts of migration in britain using panel survey data bramley g champion t and fisher t 2006 exploring the household impacts of migration in britain using panel survey data regional studies 40 907 926 this paper explores the relationship between migration and household formation drawing on british panel data the starting point is a hypothesis that migration might be associated with higher rates of separate household formation the paper asks whether this is the case how this comes about and why using data from the british household panel survey bhps this paper assesses this link and explores two distinct approaches to measuring it based on household headship rates and household transitions descriptive data show an apparently strong link at least for younger age groups the transitions approach provides more insights into how migration affects different kinds of household changing events the paper offers hypotheses about possible causal effects and goes on to use multivariate models to explain the levels of and changes in household status

sovereign bond market reactions to no bailout clauses and fiscal rules the swiss experience abstract we analyse the effects of a credible no bailout policy and stringent sub national fiscal rules on the risk premia of swiss sub national government bonds in the period from 1981 to 2007 in july 2003 the swiss supreme court decided that the canton of valais is not liable for municipal debt this landmark decision reduced cantonal risk premia by about 26 basis points and cut the link between cantonal risk premia and the financial situation of the municipalities that existed before the result demonstrates that a not fully credible no bailout commitment can entail high costs for the potential guarantor additionally strong and credible balanced budget rules reduce risk premia

sweep programs and optimal monetary aggregation abstract this paper examines the admissibility of monetary aggregate groupings for the us over 1993 2001 based upon weak separability we investigate the impact of retail and commercial demand deposit sweep programs on the separability of monetary asset groupings weak separability is tested using the swofford whitney and fleissig whitney tests we use varian s measurement error adjustment procedure to eliminate violations of the generalized axiom of revealed preference garp when funds from both retail and commercial demand deposit sweep programs are placed within checkable deposits all groupings narrow and broad pass garp and weak separability for groupings based on conventional money measures tests tend to favor broad aggregates

monetary policy and monetary asset substitution abstract this paper shows that changing the target federal funds rate induces changes in relative user costs of monetary assets estimated morishima elasticities of substitution from the fourier flexible form reveal greater substitution from transactions assets and savings deposits into small time deposits than into retail money market mutual funds