estimation of the tenants benefits residing in public rental housing with unit size constraint in korea summary hicksian income equivalent variation ev has often been used to measure tenants benefits in evaluating public housing programmes a number of papers have so far attempted to apply hicksian ev under the implicit assumption of no constraint on unit size of public housing as a result overestimation of tenants benefits probably occurs where unit size constraints exist as in korea s public housing programme thus the purpose of the paper is to measure hicksian ev with the constraint in unit size of public housing by formulating a revised hicksian ev equation and comparing the result with constraint free cases it is found that hicksian ev with constraint in unit size decreases relative to that of the constraint free cases the extent of ev decrease depends on the income elasticity of demand for housing and the difference between the optimum consumption of public housing under rent support demand wanted and the actual constraint of unit size demand fulfilled

the environmental economic impact of woodland a two stage hedonic price model of the amenity value of forestry in britain woodland is an important part of the environment providing economic benefits through its use in commercial timber production and through its value as an amenity as well as providing recreation for visitors woodland is also important to local residents for whom it provides leisure opportunities and a source of aesthetic enjoyment it is well known that the price of a house may reflect a household s willingness to pay to live near an environmental amenity such as a forest and to gain access to it the nature of this relationship may be examined by applying the hedonic price technique an econometric method which investigates house prices and the variation in structural and environment characteristics over space this study uses a two stage hedonic price model to explore the impact of forest type on house price and to estimate the demand for broadleaved woodland for a sample of houses adjacent to forestry commission land

why do women still earn less than men decomposing the dutch gender pay gap 1996 2006 despite major improvements in women s labour market attachment women still earn considerably less than men international research shows that the persistence of the gender pay gap may be due to the fact that although the gap in characteristics between men and women is diminishing changes in the wage structure counteract this change this article will study whether this swimming upstream phenomenon is also playing a role in the rather slow convergence between male and female wages in the netherlands our results indicate that this is not the case most of the changes in the dutch wage structure have been rather favourable to women the lacking convergence in wages has to be explained from the fact that despite the favourable changes the dutch wage structure still contains a considerable implicit gender bias

a bid rent analysis of housing market discrimination the elimination of racial discrimination has long been a dominant american social concern laudably economists have contributed many studies which have attempted to identify and quantify such discrimination particularly in the area of the housing market the research reported here while following in this tradition employs a new approach in attempting to discover not only the magnitude of housing price discrimination but how its burden is incident upon different types of nonwhite households a model of urban housing markets will be developed from the bid rent theory which allows one to isolate empirically the distinct contributions to interracial housing price differentials made by variations in households preferences incomes and housing packages versus those made by discriminatory actions bid rent functions will be econometrically estimated for individual household observations stratified into groups of comparable age family size education socioeconomic class and race these functions will be used to estimate what the various nonwhite strata would be willing to bid for typical white occupied units the divergencies between such bids and prices actually paid by whites will provide a measure of the existence and magnitude of discrimination confronting nonwhite groups

identification and stochastic specification in rosen s hedonic price model abstract the use of an explicitly specified utility function to derive the inverse demand functions in s rosen s hedonic price model provides considerable insight into the correct stochastic specification of the model it turns out that except in special cases the inverse demand equations are nonlinear in parameters and cannot be formulated conveniently as regression models moreover the inverse demand functions and the hedonic price function must be estimated simultaneously to obtain consistent estimates of the parameters of these functions a tractable estimation technique is described it is desirable to derive the inverse demand functions from a utility specification that is not a strongly separable function of houses attributes since strong separability implies the existence of deterministic relations among incomes prices and observed housing attributes that may fail to hold in applications finally it is shown that the use of an explicitly specified utility function does not guarantee identification of the parameters of rosen s model

capital flows and gdp in emerging economies and the role of global spillovers abstract this paper provides a global analysis of capital flow impacts on gdp for selected emerging economies as additional control variables we also include currency reserves and effective exchange rates in our analysis we distinguish between gross and net capital flows and also assess the impact of both fdi and portfolio flows accounting for the fact that common factors have been the main drivers of capital flows while country specific determinants pull factors drive the response to such shocks we analyze shocks to country groups but consider country specific responses based on a bayesian time varying panel var framework in the spirit of canova and ciccarelli 2009 based on a sample of 24 economies our results show a robust positive effect of capital flows on gdp except for korea both gross and net capital flows display a positive impact for around two quarters the impact of effective exchange rates on gdp hardly offers an explanation for a possible transmission of capital flow effects with effective depreciations both positively and negatively linked to gdp we also find that the effect of net portfolio flows is even more positive compared to net fdi flows for emerging economies finally we provide evidence that the importance of global factors increases in times of crises

hedonic indices and housing programme benefits the availability of reliable measures of housing programme benefits is important for decisions that planners make about appropriate housing policies this paper advocates the use of hedonic price estimation techniques for the direct measurement of housing programme benefits in developing countries without restrictive characterisations of housing demand a market weighted economic welfare index is used to measure the housing benefits the benefits are the difference between estimated hedonic price equations before and after the implementation of a programme summed across all households and then multiplied by the cash equivalent of a unit of hedonic value the cash value of a unit of hedonic value is determined by dividing the observed aggregate market value of houses in an analysis sample by the estimated aggregate hedonic value for that sample measuring housing programme benefits from direct market valuation of programme induced changes in housing attributes does not imply that such programmes are necess

welfare measurement for environmental improvements using the hedonic model the case of nonparametric marginal prices abstract research in environmental and natural resource economics frequently requires the use of hedonic models because of the differentiated products involved this is true for studies of the relationship between environmental quality and property values or wages or between the characteristics of a recreation site and the demand for its services an obvious use of such studies is in estimating willingness to pay for improvements with differentiated products there are usually nonlinear hedonic price schedules and thus nonlinear budget constraints this makes welfare analysis difficult because standard duality results no longer hold this paper develops a technique for estimating a psuedo demand system that can be used to derive exact measures of consumer welfare change similar techniques are developed for producers with a psuedo profit function that can be converted to an exact measure of the change in quasi rents or rents the paper also shows that the distance function can be used to develop an ex ante measure of welfare change

efficient estimation of structural hedonic systems when a product or job is not homogeneous but instead embodies several different characteristics it is difficult to use price information about the product to learn anything about the structure of the supply and demand for the embodied characteristics s rosen 1974 highlighted this problem and suggested that the estimated slope of the price characteristic relation the marginal price could be used instead of standard prices in otherwise standard estimation of the supply and demand system however recently brown and h rosen 1982 brown 1983 and mendelsohn 1985 have pointed out that this method is applicable only when the marginal price depends on variables not found in the supply and demand equations in this paper we show that since the hedonic system matches consumers with high demand for the characteristic to firms with low costs of producing it exogenous variables from the supply equation are not valid instruments in the demand equation and vice versa therefore even when the brown rosen mendelsohn brm condition holds estimation of the identified system by standard simultaneous equations techniques will produce inconsistent estimates we then show that the system can be identified despite the absence of the standard instruments and develop an efficient estimator for the identified system since cross equation constraints make estimation of hedonic systems particularly vulnerable to specification error we also consider some specification tests in this section we consider a simple model with only one characteristic the extension to several characteristics is straightforward the basic model developed by rosen can be described as follows firms with different technologies produce products which provide consumers with varying levels of some characteristic z each consumer buys one unit of the good the product is such that an amount of z from two units of the good provides less utility than the same amount of z embodied in a single unit e g acceleration in a car safety in a job consumers

the estimation of demand parameters in hedonic price models this paper shows that the econometric problem of estimating hedonic demand parameters is not a standard identification problem caused by demand supply interaction as has been often assumed estimation procedures based on this assumption lead to biased results the hedonic estimation problem is instead caused by the endogeneity of both prices and quantities when households face a nonlinear budget constraint an instrumental variables solution to this problem is suggested using instruments that exogenously shift the budget constraint

the efficiency of demand oriented housing programs generalizing from experimental findings typical production oriented housing programs offer potential recipients a highly limited set of previously unattainable commodity bundles from the household s viewpoint such programs have been highly inefficient from society s viewpoint such housing programs are generally horizontally inequitable and inefficient given that housing programs are not likely to be fully cashed out and incorporated into general income maintenance could housing programs be restructured to increase their efficiency this paper examines this question results indicate that demand oriented housing programs are substantially more efficient than are production oriented programs in fact in the aggregate the former programs approach unrestricted cash payments in their transfer efficiency

the redistributive effect of public housing in hong kong public housing programmes in hong kong affect half of the population directly and the other half indirectly this paper assesses the redistributive effect of public rental housing on income distribution it uses a subsidised to market rent ratio method and an imputed rent method to convert transfer in kind of public rental housing into equivalent monetary value empirical results show that the provision of public housing alleviates the income inequality problem however the amount of public expenditure required achieving the same improvements in gini coefficient and other inequality measures is small relative to the actual public expenditure on housing policy makers should thoroughly review the existing public housing programmes

demand for housing attributes in developing countries a study of pakistan the paper has applied a conventional framework of analysis of implicit markets to determine the characteristics of demand for housing attributes of quantity and quality in the urban areas of a larg

hedonic prices and the benefits of public projects s scotchmer has shown that even if the population is homogeneous hedonic prices do not correctly measure long run benefit s of a large public project this paper examines the direction of err ors and shows that the use of cross sectional land rent differentials leads to overestimation of the benefits the short run benefits with fixed lot size are also considered copyright 1988 by the econometric society

measurement problems in quantifying the distributional effects of subsidy programs abstract use of estimated compensating or equivalent variation benefit measures to analyze the distributional effects of subsidy programs can lead to biased results the vast majority of previous studies have used average elasticity parameters to calculate individual compensating or equivalent variations this can lead to measurement errors which are systematically related to program targeting criteria and result in biased distributional impacts being identified from analysis of cross sectional estimated program benefits the seriousness of this problem is illustrated in a case study with simulated data the results suggest that much greater effort and care are warranted in ascertaining the robustness of estimates of the cross sectional variation in the benefits of many subsidy programs

the contribution of environmental amenities to low income housing a comparative study of bangkok and jakarta central and local governments and their creditors are increasingly interested in cost recovery for public services these strategies have two aims increasing revenues and making a better connection between benefits received and consumer bills this paper estimates a hedonic model for household level data in a rare contrast of slums in two asian mega cities to provide comparative information about how the poor value environmental amenities and basic infrastructure access the results suggest that slum housing prices do reflect differentials in public service access and that rough estimates of the value of access can be cheaply and usefully obtained for planning purposes

influence of soil conservation on farm land values worldwide concern for the loss of agricultural soil has led many governments to establish programs to slow the loss of soil from farms mcconnell 1983 has shown however that in the absence of externalities farmer decisions on investment to reduce onfarm soil loss can be socially optimal and concludes p 188 as follows increasing soil loss does not imply that farmers ignore physical production relations if farmers know that the soil base affects farm resale value they will conserve it it suggests that the impact of soil depth on the value of farms be investigated earlier rausser 1980 reached a similar conclusion suggesting that land values which fail to reflect soil quality encourage the farmer to ignore his long run impact on the resource two recent studies failed to find clear cut relationships between soil erosion and farm land prices ervin and mill 1985 942 in a cross section study of farm land prices in page county iowa concluded the group of variables measuring past and future erosion damages and conservation structures did not exhibit large and reliable effects gardner and barrows 1985 studied the capitalization of the value of soil conservation practices into farm land prices in southwestern wisconsin and concluded p 946 the most reasonable conclusion is the most obvious conservation

estimating british workers demand for safety this paper estimates workers demand function for job safety using the british general household survey data the estimation employs rosen s two stage procedure the main difference between our study and those done in the past is that we estimate hedonic price equations with data sets from two labour markets our approach overcomes the usual identification problems associated with the application of rosen s method the estimation shows that there is a significant wage compensation for job risk in the uk the willingness to pay for a 1 100 000 decrease of annual job fatal accident rate from our estimated workers demand function is about 6 in 1973 prices the estimation of a demand function for safety also enables the derivation of workers willingness to pay for non marginal change of job risk and this can be used for cost benefit analysis on projects involving such non marginal changes

panel estimates of the earnings gap in norway do female immigrants experience a double earnings penalty this study explores the possibility that being both a female and an immigrant will impose an earnings disadvantage on immigrant women in norway well known techniques are used to decompose the earnings gap between norwegian men and immigrant women into portions attributable to productivity differentials portions attributable to a gender effect and portions attributable to an ethnic effect the analysis supports the following conclusions first there is evidence of a double negative effect on female immigrant earnings second gender effect is more important than ethnic effect finally the discrimination estimates are robust to the alternative methods used in decomposing norwegian men immigrant women earnings gap

hedonic amenity valuation and functional form specification this paper uses gis data to develop variables representing the physical extent and visibility of surrounding land use cover features in a hedonic model of a rural suburban residential housing market three equations are estimated to determine if views

benefits and consumption effects of public housing programs in belgium some aggregate results in this paper we estimate some aggregate consumption effects and the benefits of public housing programs in belgium on the basis of a small sample of individual households specifying a stone geary utility function defined on housing and other goods we develop estimates of all required inputs to calculate hick s equivalent variation we further analyze changes in consumption patterns as well as the distribution of benefits over the sample our results provide the first information on the effects of public housing in belgium derived from micro data

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

new estimates of climate demand evidence from location choice abstract we develop and apply to census data a new method for estimating climate demand the method is useful for ranking quality of life based upon a willingness to pay criterion our two major findings are that the willingness to pay quality of life index is correlated with the hedonic approach s ranking but that the migration approach generates much larger estimates of willingness to pay for a more moderate climate this finding is relevant for evaluating the economic impact of global warming

the benefits of in kind government programs abstract in this paper i present a methodology to calculate the benefits of in kind programs such as public housing which restrict consumption of some goods to the levels offered by the government most previous studies begin with an a priori specification of the direct utility function i begin with the ordinary demand function and then integrate demand to recover the indirect utility function and the expenditure function i argue that this approach gives additional flexibility in choosing a functional form which best describes the data i then use this methodology to estimate the benefits of the u s government s section 8 housing program

disequilibrium models of single family housing prices and transactions the case of chicago 1972 1976 abstract this paper reports a first application of fair jaffee type short side models of disequilibrium to the intraurban single family housing market in which the housing stock is divided into distinct geographic community areas data on single family dwelling transactions and prices in the city of chicago between 1972 1976 is used to estimate four versions of the fair jaffee type model the approach allows the simultaneous estimation of the price elasticity of the demand for and offer of existing single family dwellings the demand elasticity estimate of about 0 5 agrees with other estimates in the literature obtained from equilibrium models the price elasticity of offer has not been previously estimated for single family dwellings it is found to be around 2 1 elasticities are also computed with respect to the mortgage interest rate and the intensity of transactions in the dwelling s community area the disequilibrium models appear substantially superior to equilibrium specifications simulations with the estimated models predict that in the absence of external shocks transaction prices and quantities stabilize within 2 years

estimating the demand for the characteristics of housing a hstract estimates of the demand for the characteristics contained in a differentiated product such as housing can be based on hedonic regressions however previous studies have not dealt with several potential problems in such estimation a more appropriate framework for the estimation is provided in this paper also data from a number of cities are used to eliminate the identification problem and the endogeneity of the marginal prices derived from non linear hedonic equations is considered in the estimation the results on own and cross price elasticities expenditure elasticities and the effects of socio economic vafiables accord well with expectations

in kind transfers cash grants and the supply of labour abstract this paper corrects the notion that somehow benefits given in kind interfere less with the work leisure choice than cash grants of equivalent monetary value in a simple model the analysis proves that the true effect depends on the extent of the in kind transfer and the substitutability of the good in question with leisure

an alternative approach to the measurement of sex discrimination an illustration from university entrance the most frequently adopted approach to the measurement of sex discrimination in recent years has been to estimate hedonic earnings functions relating earnings to the characteristics of workers these earnings functions have frequently been derived within a mincerian human capital framework mincer i974 but often also include the addition of ad hoc variables depending on the data source used different restrictions have been imposed by different authors for example some have merely included a sex dummy in an attempt to assess the existence of discrimination thus constraining all the other coefficients to equality between the sexes the more general approach however has been to allow all coefficients to vary by estimating separate earnings functions for males and females possibly further stratified by race and or marital status a chow test is usually applied to the hypothesis that the two earnings functions are the same and if the hypothesis is rejected at an appropriate significance level normally i the presumption is made that discrimination exists thus differences in the coefficients between the earnings functions are taken as a priori evidence of discrimination the assumptions and difficulties inherent in this approach have been subject to considerable criticism 1 even accepting the underlying presumption there are questions of measurement relating to the index number problem first expounded in this context by oaxaca i973 and the criteria proposed by boulet and rowley i977 the correct specification of the equation is vital since discrimination is evaluated as a residual the problem is however wider than the standard specification error since it should include the reasonableness or otherwise of the criteria adopted by the firm in determining earnings in addition the estimated earnings functions can be regarded as reduced forms of the supply and demand equations in the labour market whereas the identification of the hedonic offer curve of the employer is required in order to estimate the extent of discrimination within firms as far as the author is aware there have been no attempts to identify such a hedonic function which is one of the structural equations in the labour market the earnings functions as estimated

is the gender wage gap declining in the netherlands in this paper i try to answer the question whether the gender wage gap in the netherlands is declining i posed this question because on several other indicators labour market differences between men and women in the netherlands declined or disappeared altogether first of all the labour market participation of women has increased and women on the labour market are no longer a small minority second the difference in productive characteristics between men and women is disappearing third both product and labour markets have become increasingly competitive due to changes in regulation like anti trust laws which should have an effect on the gender wage gap contrary to these expectations i did not find a declining gender wage gap the data in dutch institute for labour studies osa labour supply panel show a steady gender gap of approximately nineteen per cent at most twenty five to thirty per cent of the gap can be explained by productivity differences the largest part of the gender wage gap is due

optimal reserve composition in the presence of sudden stops abstract we analytically derive optimal central bank portfolios in a minimum variance framework with two assets and transaction demands caused by sudden stops in capital inflows in this model transaction demands become less important relative to traditional portfolio objectives as debt to reserve ratios decrease we empirically estimate optimal dollar and euro shares for 23 emerging market countries and find that optimal reserve portfolios are dominated by anchor currencies and at current debt to reserve ratios introducing transaction demand has a relatively modest effect for most countries we find that in general the dollar acts as a safe haven currency during sudden stops for country specific and global sudden stops increasing the optimal share of dollar bonds in central bank portfolios correspondingly our model predicts that dollar shares should decline as debt to reserve ratios fall as observed in recent data we also find that the denomination of foreign currency debt has little importance for optimal reserve portfolios

the cost of quality in existing housing estimates from an implicit markets model abstract rosen s implicit markets approach is used to model and estimate the cost of improving the state of repair of rental housing in existing structures particular attention is devoted to potential errors in the measurement of state of repair and to the inconsistent estimates of supply and demand parameters implied by rosen s original econometric technique cost estimates imply that improvements in low income housing could be provided much less expensively in existing housing than by either public new construction or the section 8 existing housing program

hedonic analysis of a housing market in disequilibrium abstract this paper tests the hypothesis that information about housing market activity and about specific dwellings becomes capitalized into single family dwelling prices through a disequilibrium adjustment process a dynamic price adjustment model which is an extension of the standard hedonic model widely used in the literature is derived specified and tested with both micro and aggregated data from the city of chicago and for the period 1972 1976 the results show that from 32 to 75 of the variance in dwelling prices unexplained by the standard hedonic attributes under assumptions of equilibrium is explained by market activity signals such as mortgage interest rates and neighborhood transaction rates of the preceding period dwellings about which there is less information making comparison pricing difficult are shown to command a price premium the standard equilibrium hypothesis appears readily rejectable and better predictions are obtained from the disequilibrium specifications several directions for extending this line of research are discussed

an empirical analysis of the demand for housing attributes in a third world city this paper presents estimates of the demand for a set of housing attributes using data drawn from the renter and owner occupier housing submarkets for ibadan nigeria the empirical analysis based on an adaptation of rosen s two step model reveals that the most important determinants of the demand for housing attributes are income price of the attribute in question household size and the occupational status of the head of household the paper further indicates that the demand for housing attributes is inelastic since all estimated coefficients are below unity

reserve accumulation and financial crises from individual protection to systemic risk abstract this paper provides a new perspective on the relationship between countries international reserve holdings and financial crises while the local view holds that reserves may prevent domestic crises it overlooks that the accumulation of reserves relaxes the financing constraint of the reserve currency country and may cause a financial crisis in the centre which is transmitted globally according to this global view reserve accumulation might destabilize the international financial system since the crisis affects all countries alike the accumulation of reserves imposes a negative externality on non accumulating countries we integrate this idea in a theoretical model of the optimal amount of reserves and illustrate the gap between local and global optimality the consideration of systemic risk lowers the demand for reserves moreover if a supranational authority determines the optimal level of reserves it internalizes the negative externality and accumulates fewer reserves a macroprudential tax on reserve hoardings might implement the socially optimal solution our calibration analysis shows that these considerations are economically significant they lower the optimal amount of reserves in the benchmark case by 45

the welfare cost of housing standards theory with application to jakarta abstract housing standards are likely to impose quantity constraints on the consumption possibilities of the poor this paper shows how an exact money metric of the welfare loss from such standards can be derived for any well behaved preference ordering recent results from the theory of consumer behavior under rationing permit the cost of standards to be interpreted in terms of the compensated demand function for the standardized good a housing demand function for the poor in jakarta is estimated using household level data and is used to calculate numerically the cost to them of introducing uniformly binding housing standards at unsubsidized prices estimates are also presented of the rate of price subsidy on housing needed for compensation

the demand for tenure security in developing countries abstract we use survey data for manila the philippines to estimate hedonic functions for formal and squatter housing values we show that on average a rented squatter unit in manila would rent for 15 percent more if it were a formal sector unit an owned squatter unit would sell for 25 percent more if it were a formal sector unit these percentages are interpreted as eviction risk discount for squatter dwellings we conclude that assistance projects that provide secure tenure over a wide area will bestow comparatively greater benefits on lower income households and to those in newer less established settlements since the risks that they bear initially are greater

housing quality differentials in urban areas abstract this paper applies an equilibrium quality theory for differentiated products to estimate the willingness to pay for improvements in the air quality of chicago cleveland dallas houston and indianapolis the empirical results show i that the structural approach and the standard nonstructural approach give very different benefit figures even for small improvements in air quality and ii that a uniform improvement in air quality implies significant distributional effects

modeling winegrape prices in disequilibrium this article presents an econometric model of winegrape prices which recognizes the existence of demand and supply imbalances in the australian market a markets in disequilibrium framework is employed to motivate modeling price changes as responding to variations in excess demand solidus supply the disequilibrium price equation provides estimates of regional and varietal price discounts solidus premiums and a measure of the speed of disequilibrium price adjustment the equilibrium assumption is rejected for the market and substantial differences between equilibrium and disequilibrium estimates point to the inaccuracies of assuming market clearing disequilibrium estimates point to significant differences between warm and cool regions and changing speed of disequilibrium adjustment over time

the short run and long run benefits of environmental improvement abstract the social value of a nonmarginal improvement to amentities is not related to hedonic prices in a simple way furthermore hedonic price data do not completely reveal preferences in order to evaluate short run benefits of an improvement the rate of change of the hedonic price function must be normalized by a ratio of population densities to calculate long run benefits of the improvement one must calculate the responsiveness of population densities to the nonmarginal improvement a technique to do so is suggested

simultaneity in the market for housing characteristics abstract the nature of simultaneity in the markets for housing characteristics is examined simultaneity is found to arise in the implicit markets for individual characteristics because of the presence of nonlinearity in the market hedonic price function for housing however this simultaneity is not the kind discussed by s rosen j political econ 82 34 55 1974 between firm supplies and household demands as a result the rosen suggestion of identifying demand with firm supply shifters is inappropriate among the alternative approaches to identification the most desirable involve use of data over two or more markets in which residence for a given household is exogenous to the choice of housing

personality and the gender wage gap in this study we investigate whether personality traits contribute towards a better understanding of the reasons for the gender wage gap we explore whether two of the personality factors put forward by bowles et al 2001 as likely to be incentive enhancing in the employer employee relationship can explain the difference in wages for women and men these are 1 personal self efficacy locus of control loc and 2 time preference we also study the role of the so called big five personality traits extraversion emotional stability agreeableness openness intellect and conscientiousness which have been associated with earnings in several recent studies using a sample of dutch employees we found that 11 5 of the observed gender wage gap could be ascribed to differences in the personality trait scores mainly in agreeableness and intellect while less than 0 5 could be ascribed to gender differences in the returns to the traits the addition of personality traits to a traditional human capital

an analysis of the housing market in the netherlands housing research in the netherlands has long been dominated by demographic orientated research this was quite logical because of the distinctive demographic development of the netherlands relative to other west european countries the rate of increase in population in the period 1960 1981 was among the highest in western europe economic influences on housing consumption have therefore long been neglected in the 1980s a period with declining incomes and a government policy to increase rents suddenly economic influences came into the picture housing demand tends to diminish and the traditional housing shortage since the second world war seems to disappear rising rents can even lead to rising vacancy rates because demand diminishes and supply increases because of higher rates of return the reverse of the consequences of rent control this article presents a recent econometric analysis of the housing market in the netherlands and places the results in the context of the broad and sometimes confusing

the macroeconomic role of currency reserve accumulation in emerging markets the asian experience the impact of currency reserve accumulation is controversially discussed since reserve accumulation potentially destabilises the international financial system and causes crises due to higher systemic risk the main aim of this paper is to put the macroeconomic role of currency reserve accumulation for four asian economies under closer scrutiny the key question is whether accumulating currency reserves is beneficial from a long run perspective based on a vector error correction approach we start by analysing long run steady state relationships between currency reserves exchange rates against the us dollar real gdp and interest rates our findings show that cumulated currency reserve shocks significantly affect real gdp a likely explanation for our finding is that accumulation of reserves has supported growth through providing liquidity and supporting the development of the financial sector for the economies under observation

the impact of rental properties on the value of single family residences abstract this study examines the effects that single family rental properties in a residential neighborhood have on the value of single family residences in that area the analysis blends real estate valuation concepts with evidence found in the housing maintenance literature and urban succession theory to develop testable hypotheses regarding the property specific proximity related and neighborhood wide impacts of rental properties on property values the data used to test the hypotheses include the tenure status of 23 119 single family residences and 1 162 single family sales regression results support all three hypotheses although numerous studies on the value impacts of other externalities have been published this is the first study to examine the separation of property rights the results of this study provide additional insights into housing maintenance and also have implications for neighborhood zoning regulations

nonlinear budget constraints and consumer demand an application to public programs for residential housing abstract this study presents a methodology for exploiting the nonlinear hedonic nature of housing prices to estimate the compensated demands of households for particular housing attributes the methodology is employed to provide hicksian benefit measures of a particular housing subsidy program typical of those undertaken recently in developing countries

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

housing values census estimates disequilibrium and the environmental cost of airport noise a case study of atlanta abstract two unresolved issues about airport noise property value studies are addressed the first issue concerns the comparability of empirical results from aggregate census data vs individual sales values and the second issue concerns the homogeneity and stability of results from housing price studies over time and across markets hedonic price models from two sets of data for a residential area near the atlanta international airport are estimated at two points in time 1979 1980 and 1970 1972 the available data yield similar estimates of the noise discount over time and from the prices of individual house sales vs owner appraised census block aggregates

collapsing exchange rate regimes some linear examples abstract we construct a pair of linear examples to study the collapse time of a fixed exchange rate regime the first example is a perfect foresight continuous time model which allows calculation of the exact collapse time and the tracking of reserves the second example is a discrete time stochastic model which yields an endogenous probability distribution over the collapse time and produces a forward discount of the exchange rate

the household s decision to accept or reject a conditional transfer offer households deemed by society to have insufficient resources to purchase an adequate commodity bundle are often offered aid i e additional resources conditional upon the households purchasing a given level of some commodity e g food fuel or housing such conditional transfers attempt to modify the households normal behavior i e if the households would normally purchase the required level of the designated commodity upon receipt of the transfer the constraint would not be necessary how these incentives and constraints interact to affect the households behavior determines in large part the number and type of eligibles aided by the program aggregate program costs given payment levels and the types of commodity bundles purchased by the recipient households clearly understanding the decision to accept or reject a conditional transfer offer has widespread implications for the costs of the transfer program the impact on eligible households and the attainment of society s objectives numerous studies have investigated the size and distribution of recipient benefits in conditional transfer programs 1 3 6 8 9 14 16 21 to this author s knowledge however no analysis has estimated a model of the household s decision to participate in a conditional transfer program using household data and a theoretically appropriate measure for the household s net gain to overcome this gap in our understanding of the household s

costs and benefits of housing subsidies to tenants from voluntary and involuntary rent control a comparison between tenures and income groups this paper estimates the economic subsides to housing for different groups using the 1988 joseph rowntree memorial trust sample survey of households an olsen type model is used to estimate consumber surplus to households from subsidized housing these estimates are compared to costs and housing services in the owner occupier market poorer families receive larger benefits than richer families transfer efficiency is not high but the local authority sector receives the greatest benefits from controlled rents

benefit transfer via preference calibration prudential algebra for policy this paper proposes a new approach to benefit transfer the method assumes a specific form for preferences and uses available benefit information to identify and calibrate the preference parameters to match the existing benefit estimates this approach assures economic consistency of the transfers benefit measures can never be inconsistent with household income the logic also offers a series of potentially observable predictions that can be used to gauge the plausibility of benefit transfers when multiple benefit estimates from different methods are available such as hedonic property value travel cost demand and contingent valuation the framework uses the definition of the benefit concept from each method in a single preference function to reconcile differences it provides a specific way to take account of baseline conditions and scope effects i e the size of the proposed change consistently in the transfer the method is illustrated using estimates for benefit measure changes in water quality from three studies travel cost demand hedonic property value and contingent valuation analysis q26

trends in the well being of american women 1970 1995 this paper examines the trends in the well being of american women over the last 25 years a time of significant changes in the relative economic status of women and in the labor market as a whole a broad range of indicators are considered to capture changes in women s well being in the family as well as in the labor market for virtually all age and education groups substantial evidence is obtained of rising gender equality in labor market outcomes notably labor force participation wages and occupational distributions broad evidence is also found of greater gender parity within married couple families as the housework time of husbands increased relative to wives and the relative wages of wives rose compared to their husbands however parallel to the recent evidence of the declining labor market position of lower skilled men there has been a similar deterioration in the economic status of less educated women especially high school dropouts their labor force participation rates and wages have risen at a much slower pace than those of more highly educated women while their incidence of single headship has increased much more rapidly these findings for less educated women serve to underscore the widening gap between more and less skilled americans of both sexes as well as to emphasize its broad dimensions

alternative housing concepts and the benefits of public housing programs abstract almost all previous studies analyzing the benefits and consumption effects of public housing programs have used aggregation theorems to construct composite goods housing and all other goods in this paper we show that if it is more realistically assumed that households have preferences defined on housing characteristics benefits estimated using the composite approach are upward biased some empirical work suggests that the bias is large we therefore strongly advise to take into account the composition of the bundle of housing attributes provided under a public housing program when evaluating the program s economic effects

hedonic prices and cost benefit analysis abstract hedonic prices have been used to evaluate the willingness to pay for attributes we reformulate the notion of hedonic price from a composite price on housing to a unit price on traded quantities in conformity with long run competitive equilibrium theory this formulation was suggested but not developed by rosen j polit econ 82 no 1 1974 34 35 by first characterizing an efficient allocation of consumers to space we show that hedonic unit prices can be understood as a bid rent function which supports the efficient allocation this is despite the fact that the lots over which consumers bid are themselves endogenous we show that unit hedonic prices reveal preferences in a manner different from composite hedonic expenditures

an analysis of the demand for housing attributes this paper uses a two step approach to estimate a system of structural demand equations for housing attributes estimation of a hedonic price regression in the first step yields implicit prices for housing attributes for the toronto metropolitan area in 1978 which are then used to estimate the expenditure share equations derived from the indirect translog utility function empirical results indicate that the composite housing attributes used in the second stage model are own price elastic while an examination of cross price relationships reveals that these attributes are reasonably substitutable

participation behavior and distributional consequences under a multiple constrained housing program abstract a distinguishing feature of supply side housing subsidy programs is that potential participants must jointly accept the multiple constraints imposed by the programs in order to get the subsidy this paper investigates how information about this feature and the characteristics of the participants can be used to model the conditional probability of participation and to determine the sources of equity inequity in the distribution of benefit from such programs the benefit is explicitly estimated in terms of the hicksian consumer surplus measure using data from the section 8 new construction program among other findings it is shown that the probability of participation is a positive function of the perceived benefit but a negative function of the participants income

automobiles and implicit markets an estimate of a structural demand model for automobile characteristics economists have always found it difficult to investigate the demand for the automobile good due to its heterogeneity in this paper the automobile is treated as a differentiated product and a two step approach is used to estimate a system of structural demand equations for automobile attributes the obtained results are statistically sound and in conformity with theoretical expectations this should be taken as an indication of the validity and robustness of the procedure used in this analysis

gender pay gaps and the restructuring of graduate labour markets in southern europe in this article we investigate whether education job mismatches and growing occupational diversity are important explanatory factors of gender pay gaps amongst university graduates in southern europe namely in portugal spain and italy we use standard decomposition techniques and test the implications of controlling for selection bias our results indicate that over education and greater occupational segregation associated with the emergence of new graduate job profiles are important determinants of earnings inequality whilst our focus is on graduates early careers demonstrating that occupational assignment and selection into employment shape gender pay gaps amongst the highly skilled provides a more pessimistic view on the ability of educational expansion or equal pay legislation to significantly reduce gender pay inequality southern european economies are also particularly interesting to look at since there may be a greater degree of mismatch between the pace of higher education expansion and the changes in the job structure making women particularly vulnerable to over education

estimation of complete demand systems from household budget data the linear and quadratic expenditure systems in this paper we explore two issues in empirical demand analysis the estimation of complete systems of demand equations using household budget data section i and the incorporation of demographic characteristics into such systems section ii although there are numerous studies which use time series data to estimate complete demand systems and many which estimate engel curves from household budget data there are virtually none which combine budget data from different periods to estimate complete systems since each budget study corresponds to a single price situation one might conjecture that estimation of complete systems would not be possible unless budget studies were available from a large number of periods this is incorrect in section i we argue that interesting complete demand systems can be estimated from a small number of budget studies despite the limited price variability represented in such data to demonstrate this we use budget study data for two periods to estimate a pair of related demand systems the familiar linear expenditure system les and a quadratic expenditure system qes a generalization of les in which the demand equations are quadratic in total expenditure the inclusion of demographic variables in the analysis of household consumption patterns is desirable because there are likely to be systematic differences in the consumption behavior of households with different demographic characteristics but the effects of demographic characteristics have seldom been studied within the framework of complete demand systems in section ii we propose translating as a general method for incorporating demographic variables into complete systems of demand equations this method has not previously been discussed as a general technique for bringing demographic variables into demand systems although it has been employed in several studies to improve the estimates of the les and the qes presented in section i we reestimate these two systems using translating to incorporate family size

the efficiency of housing search previous research in the housing market has largely focused on housing market outcomes e g the quantity of housing services demanded or supplied or the determination of equilibrium prices scant attention has been directed at the processes producing these outcomes recently economists have developed models of buyer and seller search processes in housing markets 6 22 but almost no empirical testing of these models has been done the importance of search in economic markets has been discussed by lippman and mccall 15 the difficulties encountered by deterministic theories of economic markets in explaining different prices for identical commodities and persistent positive levels of unemployed resources are overcome when search is introduced search may be of even greater importance in housing markets than in most other economic markets housing generally accounts for the largest item of consumption for most households for homeowners housing is usually the household s largest asset housing is a heterogeneous commodity that is traded in highly decentralized markets 2 the costs of moving can be substantial reducing the gains from relocation the consumption of housing also involves externalities that add to the heterogeneity of the consumption bundle finally recent theoretical work by courant 6 suggests that the rational search behavior of households facing discrimination in housing markets might act to perpetuate adverse market conditions facing such households given the importance of housing as a consumption commodity and as an asset and the above characteristics of housing and housing markets previous descriptive examinations

hedonics and demand analysis the implicit demand for player attributes i introduction hedonic analysis is the standard technique of applied econometrics for modeling differentiated products a hedonic price function relates the observed price of a differentiated good to the bundle of characteristics of which the good is composed the derivatives of the function with respect to the characteristics are the implied hedonic prices which empirical work typically seeks to estimate as has been recognized since at least the work of rosen 1974 underlying the hedonic price function is an implicit market for these characteristics a number of studies have attempted to estimate the associated supply demand system in particular applied contexts based on data on the quantities of the characteristics used in the estimation of the hedonic price function and the resulting estimated hedonic prices examples include nelson 1978 witte sumka and erekson 1979 and thomas 1993 rather than a complete supply demand system other authors focus only on the implicit demand for characteristics for example polinsky and rubinfeld 1977 harrison and rubinfeld 1978 agarwal and ratchford 1980 bender gronberg and hwang 1980 blomquist and worley 1981 quigley 1982 mendelsohn 1984 and palmquist 1984 a curious aspect of these studies which appears to have gone unrecognized is the failure to draw on modern econometric demand analysis in the estimation of the implied demand system for the characteristics instead the analysis of the implicit market proceeds on the basis of ad hoc typically linear or loglinear functional forms which involve no explicit derivation from consumer theory and which impose arbitrary and non testable restrictions on preferences as a consequence there is little means beyond descriptive econometric measures goodness of fit examination of signs and t ratios and so on for judging the adequacy or legitimacy of the results no use is made of contemporary flexible functional form methodology which provides a second order approximation to arbitrary preferences and which permits in addition to the calculation of elasticities the testing of fundamental hypotheses of consumer theory such as demand homogeneity and symmetry of the slutsky matrix and numerical checks on the concavity of the associated implied expenditure function the present work attempts to fill this gap however instead of a differentiated good in a product market to which consumer demand theory would apply we choose to study a good in a factor market so that the relevant demand equations are a system of factor demands for the underlying characteristics the good in question is the service of baseball players to major league baseball teams which is a differentiated good in that different players represent different bundles of alternative attributes such as pitching or hitting skills our focus is solely on the implicit demand system for these attributes no attempt is made to estimate the associated supply system reflecting player behavior there are several reasons for this seemingly peculiar choice of commodity first the factor market for baseball players is of some intrinsic interest as evidenced by the extent to which it has been studied by economists for a taste of this see the entry by quirk 1987 in the new palgrave and the recent survey by fort and quirk 1995 in particular the market has been the focus of work by labor economists examples are blass 1992 khan 1993a 1993b and sommers 1992 much of this literature derives from the seminal work of scully 1974 who estimated equations for baseball player salaries as functions of player skills although not previously recognized in these terms underlying scully s salary equations are implicit markets for player skills the previous work involving baseball salary equations by scully 1974 1989 and others for example blass 1992 hill and spellman 1984 fort 1992 pascal and rapping 1972 raimondo 1983 and sommers 1990 is useful because it provides guidance as to the appropriate specification of the hedonic price equation

the local housing sub market structure and its properties this paper gives a definition of urban owner occupier housing sub market structure a dynamic stock flow approach is applied to this structure to understand its short term equilibrium properties and long term dynamic process the paper concludes by investigating the connections between urban owner occupier housing sub market operation and some wider urban issues with further reflections on new research directions which can provide a deeper insight into the urban system

tenure security and urban squatting while recent studies have shown that up to 35 of the total urban population of the third world live in squatter settlements there is a dearth of economic analysis on the phenomenon of squatting this paper attempts to fill this gap the equilibrium model argues that the difference in unit housing prices between the non squatting formal sector of a city and its squatting informal sector reflects the premium associated with a secure tenure status the empirical portion of this paper uses hedonic price techniques to derive the average premium on tenure security in a medium sized philippine city davao results show that formal sector unit dwelling prices are about 18 renters to 58 owners more than in the informal sector these equilibrium price differentials were found to be greater for lower income groups larger household sizes and households with older heads for renters and younger heads for