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

eco thermodynamics economics and the second law the laws of physics especially the first and second laws of thermodynamics have significant implications for economic theory the major implications of the first law conservation of mass energy are straightforward and have been discussed at length elsewhere in brief raw material inputs to economic processes are not consumed having been extracted from the environment in the first place they eventually return to the environment as wastes the economic implications of the second law entropy law are far more subtle there is considerable literature initiated by the work of georgescu roegen on the supposed constraints on economic growth imposed by the fact that economic processes utilize low entropy raw materials fossil fuels and high grade metal ores and discard high entropy wastes however as a practical matter the flux of available low entropy energy exergy from the sun is extremely large and certainly adequate to sustain economic activity in the solar system indefinitely even though fossil fuel and metal ore stocks may eventually be exhausted it is argued in this paper that the real economic significance of the second law lies in the fact that exergy is i not conserved and ii is a useful common measure of resource quality as well as quantity applicable to both materials and energy thus exergy can be used to measure and compare resource inputs and outputs including wastes and losses this is potentially important in itself moreover since exergy is not conserved it is truly consumed i e used up in economic processes hence exergy is no less a factor of production than labor or capital this fact has strong implications for economic growth theory especially with regard to assessing the role of technical progress

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

are green hopes too rosy employment and welfare impacts of renewable energy promotion in view of pressing unemployment problems policy makers across all parties jump on the prospects of renewable energy promotion as a job creation engine which can boost economic well being our analytical model shows that initial labor market rigidities in theory provide some scope for such a double dividend however the practical outcome of renewable energy promotion might be sobering our computable general equilibrium analysis of subsidized electricity production from renewable energy sources res e in germany suggests that the prospects for employment and welfare gains are quite limited and hinge crucially on the level of the subsidy rate and the financing mechanism if res e subsidies are financed by labor taxes welfare and employment effects are strictly negative for a broad range of subsidy rates the use of an electricity tax to fund res e subsidies generates minor benefits for small subsidy rates but these benefits quickly turn into significant losses as the subsidy rate exceeds some threshold value

useful exergy is key in obtaining plausible aggregate production functions and recognizing the role of energy in economic growth portugal 1960 2009 abstract the role of energy in economic growth is controversial models based on aggregate production functions apf range from the neoclassical which downplay energy due to a cost share theorem but typically rely on exogenous total factor productivity tfp to the ecological economic which acknowledge energy s importance the validity of the apf concept itself is questioned here we apply cointegration analysis to identify apfs between output capital labor and possibly energy measured as primary energy or useful exergy we test for tfp growth by including a time trend we require that plausible apfs verify cointegration non negative output elasticities and granger causality linking inputs to output our method recognizes cases where a plausible apfs do not exist thereby addressing the apf critique b energy impacts growth directly c energy impacts growth indirectly through capital and labor we apply the method to portugal 1960 2009 considering standard and quality adjusted capital labor measures with a time trend or disregarding energy plausible apfs are never found without a trend plausible apfs are found only when considering capital energy labor combinations within these with quality adjusted capital and labor and useful exergy results are consistent with the cost share theorem but energy plays a central role through a constraint on all factors of production

useful work and information as drivers of economic growth abstract a semi empirical endogenous growth theory was proposed by the authors in 2005 it is based on a model of the economy as a two stage materials energy processing system growth is simulated by a two parameter production function with two traditional factors labor and capital and a non traditional factor namely useful work the non traditional factor is calculated from primary energy inputs multiplied by an empirically estimated average energy conversion efficiency which is a function of changing technology over time this model explains past us growth from 1900 through 1973 74 with satisfactory accuracy but it slightly underestimates subsequent growth i e it leaves a small unexplained but increasing residual for the period after 1975 however by subdividing capital stock into traditional and ict components we are able to extend the theory to explain us economic growth accurately in this paper we also extend the results to japan the revised production function has only three independent parameters the new model also has implications for future economic growth energy and environmental policy that differ significantly from the traditional growth theory these implications are discussed briefly

evaluating relative benefits of different types of r d for clean energy technologies clean energy technologies that cost more than fossil fuel technologies require support through research and development r d learning by doing relates historical cost decreases to accumulation of experience a learning investment is the amount of subsidy that is required to reach cost parity between a new technology and a conventional technology we use learning investments to compare the relative impacts of two stylized types of r d we define curve following r d to be r d that lowers costs by producing knowledge that would have otherwise been gained through learning by doing we define curve shifting r d to be r d that lowers costs by producing innovations that would not have occurred through learning by doing we show that if an equal investment in curve following or curve shifting r d would produce the same reduction in cost the curve shifting r d would be more effective at reducing the learning investment needed to make the technology competitive the relative benefit of curve shifting over curve following r d is greater with a high starting cost and low learning rate our analysis suggests that other things equal investments in curve shifting r d have large benefits relative to curve following r d in setting research policy governments should consider the greater benefits of cost reductions brought about by transformational rather than incremental change

functional form and rental housing market analysis this paper tests functional form for hedonic rent regressions and for rental housing demand regressions for 19 united states metropolitan areas in the hedonic rent regressions both linear and loglinear forms are rejected through box cox maximum likelihood procedures similar tests for demand regressions also reject both linear and loglinear forms these results have useful applications to the analysis of rental housing demand by low income households the more popular logarithmic and linear forms lead to very low estimated income elasticities for households in the low income range whereas the preferred form provides elasticities that are significantly higher this implies greater responsiveness to income subsidies than might otherwise be estimated

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

does corporate r d investment affect firm environmental performance evidence from g 6 countries the rate of climate change due to global warming has become a substantial concern and appeared as a real world phenomenon in the recent years however it is imperative to know how business enterprises alter such concern recent studies involve a variety of firm level factors to create a robust link between business enterprises environmental and financial performance however little is known regarding the role of research and development r d investment on firms environmental performance using a firm level data for the period 2004 2016 from g 6 countries this study empirically investigates how r d investment affects the firm environmental performance measured by energy and carbon emissions intensities we find that r d investment improves the firm s environmental performance consistent with the theoretical argument of natural resource based view nrbv our findings are robust to alternative econometric specifications alternative variable specifications and sub samples our findings offer novel insights to the policymakers business managers and regulators

credit rationing and the demand for owner occupied housing abstract this study applies cross sectional data to test whether default risk induced credit constraints affect the demand for owner occupied housing credit constrained households are argued to exhibit different elasticities of demand for housing than less constrained households housing demand elasticities are then estimated separately for households obtaining va insured and non va loans the government guarantee on va loans insures lenders against default enabling lenders to apply easier nonprice terms of credit results indicate that observed demand elasticities differ significantly across va and conventional mortgage holders that marginal changes in credit constraints affect housing demand and that fha financing mitigates the effect of mortgage constraints

a quantitative analysis of chinese industrial structure and technological change production functions for aggregate industry sectoral industries and small scale industry in this study we estimate the chinese aggregate sectoral and small scale industrial production functions based of three models the ces 1 ces 2 and cobb douglas production functions testing the estimated results we find that the cobb douglas production function is the appropriate functional form for underlying chinese industrial struture the study indicates some serious structural and technological problems such as decreasing returns to scale unitary substitution between labour and capital slow technical progress and low economic efficienty the findings suggest that an intensive industrial development policy should be pursued in china

a novel approach for analyzing the effectiveness of the r d capital for resource conservation comparative study on germany and uk electricity sectors abstract limited access to energy resources and increasing demand for mitigation of the environmental impacts have necessitated higher production efficiencies therefore the promotion of r d activities has been one of the main parts of national energy policies in this research work two methods are used for assessing the effectiveness of the r d capital on resource conservation first by developing the resource included knowledge production function of the energy sector and second through direct assessment of the functionality of resource productivity from r d capital based on official data provided by national statistical centers a comparative analysis has been conducted to examine the effectiveness of r d in the electricity generation sectors in the united kingdom and germany in these analyses non renewable exergy cost is used as an index of resource depletion and environmental burden it is shown that due to non economic energy transition policies the inclusion of the r d investment does not result in statistically meaningful elasticity of production for the r d capital however according to the second method it is shown that the r d investment in the united kingdom has been more effective in resource conservation than in germany possible reasons for such differences are discussed and recommendations for further investigations are presented

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

permanent and transitory income in models of housing demand abstract permanent income has for some time been recognized as the appropriate income variable for models of housing demand this paper examines a recently developed model wherein permanent and transitory income are considered to be the fitted and residual components respectively of a regression of actual income on several household characteristics an important caveat for these models is pointed out one logical remedial strategy is shown to result in underidentification for the coefficient on permanent income however the technique uncovers a tangential result which summarizes why an alternative class of models can be expected to underestimate income elasticities

economic effects of renewable energy expansion a model based analysis for germany abstract the increasing utilization of renewable energy sources res is a major energy policy strategy in many countries worldwide germany is a forerunner in the deployment of res and has ambitious goals for the future the support and use of renewables affects the economy it creates business opportunities in sectors producing renewable energy facilities but comes with costs related to supporting its deployment this paper analyses and quantifies the net balance of economic effects associated with renewable energy deployment in germany until 2030 to this end we use a novel model the sectoral energy economic econometric model this is an econometric multi country model which for germany contains a detailed representation of industries including 14 renewable energy technology sectors our results show that renewable energy expansion can be achieved without compromising growth or employment the analysis reveals a positive net effect on economic growth in germany net employment effects are small but also positive their size depends strongly on labour market conditions and policies results at the industry level indicate the size and direction of the need for restructuring across the sectors of the germany economy

the economic growth enigma capital labour and useful energy abstract we show that the application of flexible semi parametric statistical techniques enables significant improvements in model fitting of macroeconomic models as applied to the explanation of the past economic growth since 1900 in us uk and japan the new results demonstrate quite conclusively the non linear relationships between capital labour and useful energy with economic growth they also indicate that output elasticities of capital labour and useful energy are extremely variable over time we suggest that these results confirm the economic intuition that growth since the industrial revolution has been driven largely by declining energy costs due to the discovery and exploitation of relatively inexpensive fossil fuel resources implications for the 21st century which are also discussed briefly by exploring the implications of an aceges based scenario of oil production are as follows a the provision of adequate and affordable quantities of useful energy as a pre condition for economic growth and b the design of energy systems as technology incubators for a prosperous 21st century

tenure choice and housing demand in japan abstract this paper reports the results of an empirical analysis of tenure choice and housing demand that makes use of household level data from japan the paper finds that the price and permanent income elasticities of demand for owneroccupied housing are approximately 0 8 and 1 4 respectively and that these estimates are highly robust the price elasticity estimate is comparable to those for other countries but the income elasticity estimate is much higher possibly because of the greater accuracy of the income variable it is also found that the tenure choice and housing demand decisions are apparently not made simultaneously

employment trends in the u s electricity sector 2008 2012 abstract between 2008 2012 electricity generated gwh from coal the longtime dominant fuel for electric power in the us declined 24 while electricity generated from natural gas wind and solar grew by 39 154 and 400 respectively these shifts had major effects on domestic employment in those sectors of the coal natural gas wind and solar industries involved in operations and maintenance o m activities for electricity generation using an economic input output model we estimate that the coal industry lost more than 49 000 jobs 12 nationally over the five year period while in the natural gas solar and wind industries employment increased by nearly 175 000 jobs 21 we also combine published ratios for jobs per unit of fuel production and per megawatt of power plant capacity with site specific data on fuel production and power plant retirements additions and capacity changes to estimate and map direct job changes at the county level the maps show that job increases in the natural gas solar and wind industries generally did not occur where there were significant job losses in the coal industry particularly in west virginia and kentucky

green jobs economic impacts of renewable energy in germany abstract the labor market implications of large investment into renewable energy re are analyzed in this text although a growing re industry can be observed in germany the overall effect of large increases of re based electricity and heat generating technologies on the german economy require a careful model based analysis the applied model panta rhei has been used among others to evaluate the german energy concept in 2010 it takes positive and negative impacts of re into account the paper shows the overall effects under different assumptions for fossil fuel prices domestic installations and international trade the results are sensitive to assumptions on the development of re world markets and german exports to these markets almost all of these scenarios exhibit positive net employment effects under medium assumptions net employment of re expansion will reach around 150 thousand in 2030 only with assumptions for german re exports below today s level net impacts are slightly negative gross employment will increase from 340 thousand in 2009 to between 500 and 600 thousand in 2030

buying beauty on prices and returns in the art market this paper investigates the price determinants and investment performance of art we apply a hedonic regression analysis to a new data set of more than one million auction transactions of paintings and works on paper based on the resulting price index we conclude that art has appreciated in value by a moderate 3 97 per year in real u s dollar terms between 1957 and 2007 this is a performance similar to that of corporate bonds at much higher risk a repeat sales regression on a subset of the data demonstrates the robustness of our index next quantile regressions document larger average price appreciations and higher volatilities in more expensive price brackets we also find variation in historical returns across mediums and movements finally we show that measures of high income consumer confidence and art market sentiment predict art price trends this paper was accepted by wei xiong finance

on the choice of production functions the case of us manufacturing industries a new ces bairam 1989 1991 production function that has the cobb douglas and leontief functions as special cases is considered and estimated for the nondurable goods and durable goods sectors in us manufacturing the translog and ces functions cannot be estimated properly due to multicollinearity whereas the cobb douglas and new ces functions yield coefficients that have the correct sign and are significant at the 1 or 5 level both sectors exhibited increasing returns to scale though the nondurable goods sector is more efficient than the other sector although the cobb douglas function cannot be rejected the new ces functions has the maximized value of the log likelihood function and the advantage that the variable output elasticity with respect to inputs can be tested