bluuebunny/crossref_metadata_2025 huggingface dataset:
Retinal function and morphology in two zebrafish models of oculo‐renal syndromes
Authors: Bahadori Ronja , Huber Matthias , Rinner Oliver , Seeliger Mathias W. , Geiger‐Rudolph Silke , Geisler Robert , Neuhauss Stephan C.F.
Published: September 2003

We characterized visual system defects in two recessive zebrafish mutantsovalandelipsa. These mutants share the syndromic phenotype of outer retinal dystrophy in conjunction with cystic renal disorder. We tested the function of the larval visual system in a behavioural assay, eliciting optokinetic eye movements by high‐contrast motion stimulation while recording eye movements in parallel. Visual stimulation did not elicit eye movements in mutant larvae, while spontaneous eye movements could be observed. The retina proved to be unresponsive to light using electroretinography, indicative of a defect in the outer retina. Histological analysis of mutant retinas revealed progressive degeneration of photoreceptors, initiated in central retinal locations and spreading to more peripheral regions with increasing age. The inner retina remains unaffected by the mutation. Photoreceptors display cell type‐specific immunoreactivity prior to apoptotic cell death, arguing for a dystrophic defect. Genomic mapping employing simple sequence‐length polymorphisms located both mutations on different regions of zebrafish linkage group 9. These mutants may serve as accessible animal models of human outer retinal dystrophies, including oculo‐renal diseases, and show the general usefulness of a behavioural genetic approach to study visual system development in the model vertebrate zebrafish.
Involvement of poly ADP ribosyl polymerase‐1 in acute but not chronic zinc toxicity
Authors: Sheline Christian T. , Wang Hongmin , Cai Ai‐Li , Dawson Valina L. , Choi Dennis W.
Published: September 2003

We have previously suggested that zinc‐induced neuronal death may be mediated in part by inhibition of the glycolytic enzyme glyceraldehyde‐3‐phosphate dehydrogenase (GAPDH), secondary to depletion of the essential cosubstrate NAD+. Given convergent evidence implicating the NAD+‐catabolizing enzyme, poly ADP ribosyl polymerase (PARP) in mediating ATP depletion and neuronal death after excitotoxic and ischemic insults, we tested the specific hypothesis that the neuronal death induced by exposure to toxic levels of extracellular zinc might be partly mediated by PARP. PARP was activated in cultured mouse cortical astrocytes after a toxic acute Zn2+ exposure (350 µm Zn2+ for 15 min), but not in cortical neurons or glia after exposure to a toxic chronic Zn2+ exposure (40 µm Zn2+ for 1–4 h), an exposure sufficient to deplete NAD+ and ATP levels. Furthermore, the neurotoxicity induced by acute, but not chronic, Zn2+ exposure was reduced in mixed neuronal‐glial cultures prepared from mutant mice lacking the PARP gene. These data suggest PARP activation may contribute to more fulminant forms of Zn2+‐induced neuronal death.
Nuclear localization of diacylglycerol kinase ζ in neurons
Authors: Hozumi Yasukazu , Ito Tsukasa , Nakano Tomoyuki , Nakagawa Tamotsu , Aoyagi Masaru , Kondo Hisatake , Goto Kaoru
Published: September 2003

Diacylglycerol kinase (DGK) is involved in intracellular signal transduction as a regulator of levels of diacylglycerol which leads to protein kinase C activation. Previous studies have revealed that DGK consists of a family of isozymes in mammalian species and that most if not all of them show abundant expression in the central nervous system, suggesting the importance of this enzyme in neuronal function. Among the isozymes, DGKζ (previously also known as DGK‐IV for the rat clone) has unique structural features, such as four ankyrin‐like repeats and a nuclear localization signal (NLS), and shows intense mRNA expression in neurons of the olfactory bulb, hippocampus and cerebral and cerebellar cortices (Goto, K. & Kondo, H. (1996), Proc. Natl Acad. Sci. USA, 93, 11196–11201). However, previous studies have given conflicting results about whether or not DGKζ localizes to the nucleus in these cells. In this study, we have used immunohistochemistry with specific antibodies in brain tissues and cDNA transfection into primary cultured neurons to address this question. We have shown that, while DGKζ is primarily a nuclear protein in neurons, it can also be cytoplasmic in some conditions, and the subcellular location depends not only on the cell type but also on the developmental state or growth conditions of the cell. In addition, we have used deletion mutants to show that nuclear transport of DGKζ depends on a cooperative interaction between the NLS and the C‐terminal region including ankyrin repeats in a manner which suggests that the NLS is a cryptic site whose exposure is regulated by the C‐terminal region. Together, these results support the hypothesis that the localization of DGKζ may be regulated by differential expression of these various proteins which interact with its C‐terminal region.
Steroidogenic acute regulatory protein in the rat brain: cellular distribution, developmental regulation and overexpression after injury
Authors: Sierra Amanda , Lavaque Esteban , Perez‐Martin Margarita , Azcoitia Iñigo , Hales Dale Buchanan , Garcia‐Segura Luis M.
Published: September 2003

The central nervous system synthesizes steroids which regulate the development and function of neurons and glia and have neuroprotective properties. The first step in this process involves the delivery of free cholesterol to the inner mitochondrial membrane where it can be converted into pregnenolone. This delivery is mediated by steroidogenic acute regulatory protein (StAR). Here, we present a detailed analysis of the distribution of StAR expression in neurons and glia, in the developing, adult and aged male rat brain. Immunohistochemical analysis revealed that StAR is widely distributed throughout the brain, although in each brain area it is restricted to very specific neuronal and astroglial populations. In most regions expressing StAR, immunoreactivity appeared at P10 and the levels of expression then either increased or remained constant until adulthood. In 2‐year‐old rat brains, StAR immunoreactivity was increased compared to young adults. StAR was expressed in the subventricular zone of the adult brain, in proliferating cells which incorporate BrdU as well as in germinal layers in the developing brain. These findings indicate that StAR expression is developmentally regulated and that StAR may play some function in regulating cell proliferation in the brain. Furthermore, StAR mRNA and protein levels were acutely and transiently increased in the hippocampus following excitotoxic brain injury induced by the administration of kainic acid. This raises the possibility that the up‐regulation of StAR expression and the subsequent modifications in steroidogenesis may be part of the mechanisms used by the brain to cope with neurodegeneration.
Expression and activation of caspase 3 following status epilepticus in the rat
Authors: Narkilahti Susanna , Pirttilä Terhi J. , Lukasiuk Katarzyna , Tuunanen Jarkko , Pitkänen Asla
Published: September 2003

It is in dispute whether caspase 3 contributes to status epilepticus (SE)‐induced cell loss. We hypothesized that caspase 3‐mediated cell death continues beyond the acute phase of SE. We induced SE with either kainic acid or electrical stimulation of the amygdala in Wistar and Sprague‐Dawley rats. Caspase 3 immunohistochemistry, Western blot analysis and enzyme activity measurements were used to determine cellular localization and the time course of caspase 3 expression and activation. Immunohistochemistry indicated that caspase 3 protein expression increased following SE, peaking at 16–24 h. Cleavage of procaspase 3 to active fragments (p20–17) was detected 2–7 days after SE. Caspase 3 enzyme activity was elevated at 8 h and further increased up to 19.4‐fold at 7 days following SE. Activation of caspase 3 after SE occurred in the hippocampus and the extrahippocampal temporal lobe but not in the thalamus. Caspase 3‐immunoreactive cells represented only a minority of degenerating cells as assessed by Fluoro‐Jade B and TUNEL staining. Analysis of double‐labelled sections indicated that active caspase 3 was located in astrocytes rather than neurons or microglia. There was increased caspase 3 expression in both rat strains, and it was independent of the method used to induce SE. These data demonstrate that caspase 3 contributes to the cell death occurring within the first week after SE, but in only a small proportion of degenerating cells. These results suggest that, contrary to expectations, caspase 3 inhibitors would have only limited benefits in the treatment of SE.
Analysis of EphB receptors and their ligands in the developing retinocollicular system of the wallaby reveals dynamic patterns of expression in the retina
Authors: Vidovic Maria , Marotte Lauren R.
Published: September 2003

The expression of EphB1 and B2 receptors and ephrins‐B1, ‐B2 and ‐B3 in the retina and superior colliculus of the wallaby (Macropus eugenii) was examined during the development of the retinocollicular projection, using reverse transcription–polymerase chain reaction and immunohistochemistry. There was an early transient differential expression of EphB2 that was higher in ventral retina and restricted to the outer neuroblast layer, whereas a high ventral to low dorsal gradient of ephrin‐B2 expression occurred there throughout the study period. However, there was no dorsoventral gradient of receptors or ligands in retinal ganglion cells or a mediolateral gradient of ephrins in the colliculus. These findings suggest a limited role for these molecules in topographic mapping across the mediolateral colliculus in the wallaby. Early in retinal development there is a complementary pattern of expression of ephrin‐B1 and ‐B2 in the outer neuroblast layer that overlaps with expression of EphB2. Ganglion and amacrine cells also express EphB2. As development proceeds subpopulations of putative horizontal and bipolar cells, also expressing EphB2, come to reside in the inner nuclear layer and ephrin‐B1 is expressed throughout the outer nuclear layer. At the same time cells expressing ephrin‐B2, and subpopulations of horizontal and bipolar cells come to reside in the inner nuclear layer and there is a corresponding decrease in ephrin‐B2 expression in the outer nuclear layer. This pattern of coexpression of receptors and ligands suggests a role for them in cell migration and maintenance of laminar boundaries.
Associative and recognition memory for novel objects in dementia: implications for diagnosis
Authors: Lee Andy C. H. , Rahman Shibley , Hodges John R. , Sahakian Barbara J. , Graham Kim S.
Published: September 2003

It has been demonstrated that patients with dementia of the Alzheimer's type show particular difficulties with a task that measures memory for object locations [R. Swainson et al. (2001) Dement. Geriatr. Cogn. Disord. 12, 265–80]. The present study followed on from this report by asking whether the deficits seen in dementia of the Alzheimer's type were specific to this condition, or whether they would also be seen in another common neurodegenerative syndrome, frontotemporal dementia. To investigate this important issue, we examined memory for object–location pairs and visual recognition memory for novel patterns using two tests, the Paired Associates Learning and Matching to Sample tasks, from the Cambridge Neuropsychological Testing Automated Battery. The performance of a subset of the patients with dementia of the Alzheimer's type described by Swainson et al., selected on the basis of age and education, was compared with matched groups of frontal variant frontotemporal dementia, semantic dementia and control subjects. In contrast to the patients with dementia of the Alzheimer's type, who showed significant impairment on both memory tests, the two frontotemporal dementia groups did not perform significantly poorer compared with control subjects on nearly all memory measures, other than ‘memory score’ from the paired associates learning task. These findings confirm that tests of episodic memory, especially for the location of objects in space, may be useful in the early diagnosis and differentiation of dementia of the Alzheimer's type.
Highly regionalized distribution of stromal cell‐derived factor‐1/CXCL12 in adult rat brain: constitutive expression in cholinergic, dopaminergic and vasopressinergic neurons
Authors: Banisadr Ghazal , Skrzydelski Delphine , Kitabgi Patrick , Rostène William , Parsadaniantz Stéphane Mélik
Published: September 2003

The stromal cell‐derived factor‐1 (SDF‐1)/CXCL12 and its receptor CXCR4 are key modulators of immune functions. In the nervous system, SDF‐1/CXCL12 is crucial for neuronal guidance in developing brain, intercellular communication and the neuropathogenesis of acquired immunodeficiency syndrome. However, cerebral functions of SDF‐1/CXCL12 in adult brain are poorly understood. The understanding of its role in the adult brain needs a detailed neuroanatomical mapping of SDF‐1/CXCL12. By dual immunohistochemistry we demonstrate that this chemokine is constitutively expressed not only in astrocytes and microglia but also in neurons, in discrete neuroanatomical regions. Indeed, neuronal expression of SDF‐1/CXCL12 is mainly found in cerebral cortex, substantia innominata, globus pallidus, hippocampus, paraventricular and supraoptic hypothalamic nuclei, lateral hypothalamus, substantia nigra and oculomotor nuclei. Moreover, we provide the first evidence that SDF‐1/CXCL12 is constitutively expressed in cholinergic neurons in the medial septum and substantia innominata and in dopaminergic neurons in substantia nigra pars compacta and the ventral tegmental area. Interestingly we also show, for the first time, a selective co‐localization of SDF‐1/CXCL12 with vasopressin‐expressing neurons in the supraoptic and paraventricular hypothalamic nuclei. In addition, in the lateral hypothalamic area, SDF‐1/CXCL12 was found to be located on melanin concentrating hormone‐expressing neurons. Altogether, these original data suggest that SDF‐1/CXCL12 could be a modulatory neuropeptide regulating both central cholinergic and dopaminergic systems. In addition, a key role for SDF‐1/CXCL12 in neuroendocrine regulation of vasopressin‐expressing neurons represents an exciting new field of research.
Long‐term Changes in Postnatal Susceptibility to Pilocarpine‐induced Seizures in Rats Exposed to Gamma Radiation at Different Stages of Prenatal Development
Authors: Setkowicz Zuzanna , Kłak Kinga , Janeczko Krzysztof
Published: September 2003

Summary:  Purpose: To determine whether brains irradiated at different stages of prenatal development also have different postnatal susceptibility to seizures evoked by pilocarpine.

Methods: Pregnant Wistar rats were exposed to a single 1.0‐Gy dose of gamma rays on gestation days 13, 15, 17, or 19 (E13, E15, E17, and E19, respectively). On postnatal day 60, their offspring received i.p. pilocarpine injections to evoke status epilepticus. Behavior of the animals was observed continuously for 6 h after the injection, and motor manifestations of seizure activity were rated, and survival times recorded. After 7‐day survival, the animals were killed, and their brains were weighed.

Results: The average brain weight of animals exposed to irradiation at earlier prenatal stages (E13 or E15) was significantly lower than that after irradiation on E17 or E19. However, effects of the irradiation on the susceptibility to pilocarpine‐induced seizures were quite opposite. The intensity of status epilepticus evoked in rats irradiated on E13 or E15 was significantly lower than that in nonirradiated controls or in those irradiated on E17 or E19. Moreover, after irradiation on E13 or E15, survival of the animals was significantly higher in relation not only to other irradiated groups but also to the controls.

Conclusions: The results suggest than the extent of neuronal deficit, even if relatively greater, cannot always lead to higher susceptibility of the dysplastic brain to seizures. Functional consequences of the deficit, even if its magnitude is relatively smaller but involving specific brain areas, appear to be critical for the epileptogenesis.
Ictal Magnetoencephalography in Temporal and Extratemporal Lobe Epilepsy
Authors: Assaf Bassam A. , Karkar Kameel M. , Laxer Kenneth D. , Garcia Paul A. , Austin Everett J. , Barbaro Nicholas M. , Aminoff Michael J.
Published: September 2003

Summary:  Purpose: We evaluated visual patterns and source localization of ictal magnetoencephalography (MEG) in patients with intractable temporal lobe epilepsy (TLE) and extratemporal epilepsy (ETE).

Methods: We performed spike and seizure recording simultaneously with EEG and MEG on two patients with TLE and five patients with ETE. Scalp EEG was recorded from 21 channels (10‐20 international system), whereas MEG was recorded from two 37‐channel sensors. We compared ictal EEG and MEG onset, frequency, and evolution and performed MEG dipole source localization of interictal spikes and early ictal discharges and co‐registered dipoles to brain magnetic resonance imaging (MRI). We correlated dipole characteristics with intracranial EEG, surgical resection, and outcome.

Results: Ictal MEG lateralized seizure onset in both TLE patients and demonstrated ictal onset, frequency, and evolution in accordance with EEG. Ictal MEG source analysis revealed tangential vertical dipoles in the anterolateral angle in one patient, and anterior dipoles with anteroposterior orientation in the other. Intracranial EEG revealed regional entorhinal seizure onset in the first patient. Both patients became seizure free after temporal lobectomy. In ETE, ictal MEG demonstrated visual patterns similar to ictal EEG and had concordant localization with interictal MEG in all five patients. Two patients underwent surgery. Ictal MEG localization was concordant with intracranial EEG in both cases. One patient had successful outcome after surgery. The second patient did not improve after limited resection and multiple subpial transections.

Conclusions: Ictal MEG can demonstrate ictal onset frequency and evolution and provide useful localizing information before epilepsy surgery.
Attentional Ability in Children with Epilepsy
Authors: Sánchez‐Carpintero Rocio , Neville Brian G. R.
Published: September 2003

Summary:  Attention problems are frequently seen in children with epilepsy. This review gives an overview of the most used constructs of attention and analyzes the available evidence for attention deficits in children with epilepsy, the effects of epilepsy variables on attention, and the possible pathophysiological mechanisms involved. Children with benign childhood epilepsy with centrotemporal spikes (BCECTS) have sustained attention difficulties. Right (R)‐sided interictal epileptiform activity in these children interferes with R hemisphere function including sustained attention. Children with BCECTS also show selective and divided attention deficits if they have epileptiform discharges during sleep. Children with complex partial seizures (CPSs) have sustained attention deficits but no difficulties in selective or divided attention. Cognitive difficulties in children with epilepsy arise more frequently the earlier the onset of the epilepsy, and this could influence attentional ability development. Antiepileptic drug treatment is unlikely to impair attention, but phenobarbital has behavioral side effects similar to those in attention deficit–hyperactivity disorder. Concerning pathophysiology, evidence indicates that interictal epileptiform activity in children with BCECTS impairs sustained attention and that ongoing epileptiform discharges during sleep may impair attention. Further systematic studies of different aspects of attention in children with epilepsy are needed. Attention in children with drug‐resistant epilepsy has not been addressed, and prospective studies before and after epilepsy surgery could be a useful model to study the influence of seizures on attentional ability.
Autosomal Dominant Lateral Temporal Epilepsy: Clinical Spectrum, New Epitempin Mutations, and Genetic Heterogeneity in Seven European Families
Authors: Michelucci Roberto , Poza Juan Jose , Sofia Vito , Feo Maria Rita de , Binelli Simona , Bisulli Francesca , Scudellaro Evan , Simionati Barbara , Zimbello Rosanna , D'Orsi Giuseppe , Passarelli Daniela , Avoni Patrizia , Avanzini Giuliano , Tinuper Paolo , Biondi Roberto , Valle Giorgio , Mautner Victor F. , Stephani Ulrich , Tassinari Carlo Alberto , Moschonas Nicholas K. , Siebert Reiner , Munain Adolpho Lopez de , Perez‐Tur Jordi , Nobile Carlo
Published: September 2003

Summary: Purpose:To describe the clinical and genetic findings of seven additional pedigrees with autosomal dominant lateral temporal epilepsy (ADLTE).

Methods:A personal and family history was obtained from each affected and unaffected member, along with a physical and neurologic examination. Routine and sleep EEGs, computed tomography (CT), or magnetic resonance imaging (MRI) were performed in almost all the patients. DNAs from family members were typed with several microsatellite markers localized on either side of LGI1 at 10q24 and screened for LGI1 mutations.

Results:  The seven families included a total of 34 affected individuals (10 deceased). The age at onset ranged between 8 and 50 years (average, 22 years). Twenty‐six patients had clear‐cut focal (elementary, complex, or secondarily generalized) seizures, characterized by prominent auditory auras in 68% of the cases. Less frequent ictal symptoms were visual, psychic, or aphasic seizures, the latter occurring in isolation in one family. The attacks were rare and well controlled by antiepileptic drug treatment but recurred after drug discontinuation. Interictal EEGs were usually unrevealing. MRI or CT scans were negative. Analysis of LGI1/Epitempin exons failed to show mutations in three pedigrees. Linkage analysis strongly suggested exclusion of linkage in one of these families. We found two novel missense mutations, a T→C substitution in exon 6 at position 598, and a T→A transition in exon 8 at position 1295, the latter being detected in a family with aphasic seizures.

Conclusions:Our data confirm the inclusion of aphasic seizures within the ADLTE clinical spectrum, suggest the existence of locus heterogeneity in ADLTE, and provide new familial cases with LGI1 missense mutations associated with the disease.
Developmental Outcome of Levetiracetam, Its Major Metabolite in Humans, 2‐Pyrrolidinone N‐Butyric Acid, and Its Enantiomer (R)‐α‐ethyl‐oxo‐pyrrolidine Acetamide in a Mouse Model of Teratogenicity
Authors: Isoherranen Nina , Spiegelstein Ofer , Bialer Meir , Zhang Jing , Merriweather Michelle , Yagen Boris , Roeder Michael , Triplett Aleata A. , Schurig Volker , Finnell Richard H.
Published: September 2003

Summary:  Purpose: The purpose of this study was to test the teratogenic potential of the antiepileptic drug (AED) levetiracetam (LEV), its major metabolite in humans, 2‐pyrrolidone‐N‐butyric acid (PBA), and enantiomer, (R)‐α‐ethyl‐oxo‐pyrrolidine acetamide (REV), in a well‐established mouse model.

Methods: All compounds were administered by intraperitoneal injections once daily to SWV/Fnn mice on gestational days 8½ to 12½. LEV was administered at doses of 600, 1,200, and 2,000 mg/kg/day, piracetam (PIR) and PBA, at 600 and 1,200 mg/kg/day, and REV, at 600 mg/kg/day. On gestational day 18½, fetuses were examined for gross external malformations and prepared for skeletal analysis by using Alizarin Red S staining.

Results: No significant gross external malformations were observed in any of the study groups. Fetal weights were significantly reduced in most study groups. Resorption rates were significantly increased only in the 2,000‐mg/kg/day LEV group. The overall incidence of skeletal abnormalities and specifically of hypoplastic phalanges was significantly increased in both PBA treatments and in the intermediate 1,200‐mg/kg/day LEV group. In contrast to that in humans, 24‐h urinary excretion analysis in mice showed that 65–100% of the LEV doses were excreted unchanged, whereas only 4% was excreted as the metabolite PBA.

Conclusions: Results of this study demonstrate that both LEV and its major metabolite in humans, PBA, do not induce major structural malformations in developing SWV/Fnn embryos and suggest that they provide a margin of reproductive safety for the pregnant epileptic population when compared with other AEDs tested in this mouse model.
Public finance and the optimal speed of transition*
Authors: Castanheira Micael
Published: September 2003

We develop a general equilibrium model that jointly considers the influence of capital accumulation constraints and of labour market frictions on the process of transition. We endogenize the economic and budgetary costs of different government policies and show that, early in transition, governments ought to subsidize state firms. Provided that intertemporal commitment is feasible, this policy limits the initial output fall, which relaxes capital accumulation constraints, accelerates transition, and increases welfare. Moreover, by resorting to indirect – instead of direct – taxes, governments can bring the path of transition closer to the first best. Yet, political pressures may induce a policy of suboptimal subsidization.
Market integration in Russia during the transformation years*
Authors: Gluschenko Konstantin
Published: September 2003

A cross‐sectional relationship among Russian regions between price dispersion and per capita income dispersion is used to measure the degree of integration between regional commodity markets. The sequence of cross‐sectional estimations for each month of the period spanning 1992 through 2000 provides the temporal pattern of market integration in Russia, yielding an integration trajectory. The regional fragmentation of the national market increased during the early years of transition but integration has subsequently tended to improve notwithstanding occasional deviations from this trend.
Does foreign ownership matter?
Authors: Yudaeva Ksenia , Kozlov Konstantin , Melentieva Natalia , Ponomareva Natalia
Published: September 2003

The paper both compares productivity of Russian firms that have foreign direct investments with productivity of fully domestically owned firms and analyses spillovers from foreign‐owned firms to domestic firms. Foreign firms are found to be more productive than domestic ones, but productivity of the former is negatively affected by slow progress of reforms in the regions where they operate. It is also found that there are positive spillovers from foreign‐owned firms to domestic firms in the same industry, but negative effects on domestic firms that are vertically related to foreign‐owned firms. The stock of human capital in regions where foreign firms operate is one of the factors which help domestic firms to benefit from the entry of foreign firms.
Wage arrears uncertainty and precautionary saving in Russia1
Authors: Guariglia Alessandra , Kim Byung‐Yeon
Published: September 2003

Wage arrears are widespread in Russia, and are one of the main causes of uncertainty in the labour market. In this paper, we use the Russian Longitudinal Monitoring Survey over the period 1994–98 to construct a new and improved measure of household income risk, based on the uncertainty due to wage arrears. We then use this measure of uncertainty to test the precautionary saving hypothesis, according to which households save to self‐insure against risk. We find significant evidence of additional saving by those households whose head is more likely to suffer from wage arrears one year hence. This suggests the existence of a strong precautionary saving motive.
Determinants of household savings in China and their role in quasi‐money supply1
Authors: Qin Duo
Published: September 2003

This study derives household saving potential empirically from econometric models of Chinese urban and rural household consumption and uses this potential to explain household bank deposits. Model simulations are performed to analyse the effects of interest rates, income and income uncertainty on the saving potential and the bank deposits. The bank deposits variable is then used to explain quasi‐money supply. High bank absorption of household savings is found to account mainly for the rapid growth in quasi‐money, which in turn explains the exceptionally highM2/GDP ratio. Households’ savings are largely predictable from their regular consumption.
State Lotteries for Public Revenue
Authors: Mikesell John L. , Zorn Kurt
Published: September 2003

Lotteries, the state fiscal gimmick of the eighties, operate in jurisdictions encompassing substantially more than half the nation's population and enjoy considerable public acceptance. The revenue they generate is small, rarely more than two percent of state general revenue, it is subject to major year‐to‐year swings, and it is very expensive to generate, particularly when vendor commissions are recognized as part of cost. Furthermore, lotteries bear a high implicit excise tax rate and, because of the pattern of play across income classes, appears to worsen the overall equity of the revenue system. Their economic impact appears to be that of an internal transfer, although states with major lottery equipment suppliers have most to gain, particularly if they do not operate their own lottery. Lotteries are not destined to become mainstays of government finance, although their spread is likely, even with the fiscal questions they raise.
Intergovernmental Relations in the Reagan Era
Authors: Nathan Richard P. , Lago John R.
Published: September 2003

This article reviews federal Reagan‐era policies that affected grant‐in‐aid programs to state and local governments. We find the most important developments in federal aid policies of the Reagan years are twofold—the relative decline in the national government’s involvement in domestic affairs and the concomitant rise in the role of the states. The administration achieved these effects by devolving federal authority to states and by reducing grant spending. Reagan’s biggest cuts in federal aid outlays came in 1981; in subsequent years, total grant outlays began to rebound, increasing in nominal dollars to levels above those in the Carter years, though still below the high‐water mark reached in 1978 in real terms. Medicaid, the largest federal aid program, accounts for most of the overall growth, masking cuts in operating and capital grant programs. Reagan’s devolutionary and retrenchment policies are one of several factors we see as contributing to the rising role of states in domestic affairs, a trend we think is likely to continue in the next administration.
Offsetting Collections in the Federal Budget
Authors: Cuny Thomas J.
Published: September 2003

Offsetting collections are one of the largest and least understood types of transactions in the federal budget. This article discusses a number of the most common questions that arise with regard to offsetting collections.
The OMB Budget Examiner and The Congressional Budget Process
Authors: Johnson Bruce
Published: September 2003

This is the second of a two‐part retrospective on the evolving role of the OMB budget examiner. The examiner has become more active in negotiations with the legislative branch and tracking the legislative status of various fiscal measures. A new central budget management system was created to monitor appropriation bills. The OMB budget examiner has also been increasingly used to provide information for advocacy purposes before Congress and the public. The institutional effect on OMB of these changing roles is examined and suggestions for organizational reform are made.
The President's FY 1990 Budget: The Last Act in a Decade of Change
Authors: Edwin Kee James
Published: September 2003

This article examines the budget requests of Presidents Reagan and Bush for fiscal year 1990, and how the federal budget has changed during the decade of the 1980s. The author concludes that the federal budget has become less controllable, as the priorities and composition of federal expenditures have shifted during the Reagan years. While the Reagan and Bush budgets do not differ significantly, the manner in which they were constructed does. The effort of President Bush to define his budgetary version of a “kinder, gentler” America may be more illusory than real. The author also traces the change in federal assistance to state and local governments, concluding that, apart from transfer payments, the federal role has markedly declined.
Assessing the Performance of Real Estate Auctions
Authors: Mayer Christopher J.
Published: September 2003

This article investigates the performance of real estate auctions relative to negotiated sales. It uses a repeat‐sales methodology to control for unobserved differences in the quality of auction properties. Properties auctioned in Los Angeles during the 1980s boom sold at an estimated discount of 0%–9%, while sales in Dallas following the oil bust obtained discounts of 9%–21%. This evidence is consistent with the theoretical prediction that the auction discount increases in downturns when a seller trades‐off a longer expected selling time in a search market against an immediate auction sale. The study finds no evidence of the declining price anomaly.
The Cyclic Behavior of the U.S. Lodging Industry
Authors: Wheaton William C. , Rossoff Lawrence
Published: September 2003

A recently constructed data series suggests that the hotel industry has experienced two rather large building booms from 1969 to 1994. By contrast, hotel demand seems to move closely with the United States economy, at a much higher cyclic frequency. Occupancy and room rental rates follow the slower movements in supply. A structural model is estimated over this series which displays long lags between occupancy and room rental rate changes, as well as between room rental rates and new supply. These lags create a system of difference equations that is close to being dynamically unstable. Forecasting forward with smooth economic growth, yields a new and even larger future building boom.
Chicago's Office Market: Price Indices, Location and Time
Authors: Colwell Peter F. , Munneke Henry J. , Trefzger Joseph W.
Published: September 2003

Conventional wisdom holds that overbuilding and high vacancy, coupled with curtailed tax benefits, have led to reduced office property values since the late 1980s. Yet assertions that office real estate values fell between the mid‐1980s and mid‐1990s are not supported everywhere by convincing evidence. This study offers a hedonic analysis of Chicago area office properties that sold from 1986 through 1993. Whereas earlier office market studies generally have been based on rents, this study focuses on variation in actual sale prices (although the prices were not adjusted for financing differences). The transaction‐based index estimated here does not support the existence of a nominal office property price level decline beginning in the mid‐to‐late 1980s. In fact, the results show an upward trend in office property values after 1986, with nominal declines in office market price levels occurring only in the latter portion of the study period.
Managerial Style and Firm Value
Authors: Capozza Dennis R. , Seguin Paul J.
Published: September 2003

This study analyzes the effect of managerial style on firm value by partitioning general and administrative (G&A) expenses in the real estate investment trust industry into a nondiscretionary “structural” component associated with the costs of asset and liability management and a discretionary or “style” component. The discretionary component is significantly related to at least one measure of style—specifically, the portfolio focus/diversification of the firm. Gross (project‐level) cash flows are invariant to the nondiscretionary or structural component of G&A but are positively related to the style component of G&A. The structural component has a negative impact on share price while the style component has a neutral impact. Therefore, for this industry, creating larger, less‐levered firms would result in enhanced value.
Dwelling Age Heteroskedasticity in Repeat Sales House Price Equations
Authors: Goodman Allen C. , Thibodeau Thomas G.
Published: September 2003

Several authors have attributed the heteroskedasticity observed in repeat sales house price equations to the length of time between sales. Recently, Goodman and Thibodeau (1995) developed a theoretical model that relates heteroskedasticity in hedonic house price equations to dwelling age. Using data for nearly 2,000 repeat sales in Dallas, Texas, this research examines whether repeat sales heteroskedasticity is related to dwelling age, to the length of time between sales, or to both. An iterative generalized least squares procedure that explicitly models the residual variance is used to obtain robust parameter estimates and to increase the efficiency of the usual repeat sales price indices.
New Place‐to‐Place Housing Price Indexes for U.S. Metropolitan Areas, and Their Determinants
Authors: Malpezzi Stephen , Chun Gregory H. , Green Richard K.
Published: September 2003

Housing prices vary widely from market to market in the United States. The purpose of this study is to (1) construct new place‐to‐place indexes of the price of housing, using the 1990 Census, and (2) analyze the determinants of housing prices, with a particular focus on the supply side determinants—regulatory and natural constraint—as well as the usual demand determinants.
Continental Factors in International Real Estate Returns
Authors: Eichholtz Piet , Huisman Ronald , Koedijk Kees , Schuin Lisa
Published: September 2003

This paper examines the extent to which real estate returns are driven by continental factors. This subject is relevant for determining the country allocation of international real estate portfolios. If returns are driven by a continental factor, investors should look for diversification opportunities outside their own continent. This paper finds strong continental factors in North America and especially in the United States. For the Asia–Pacific region, real estate returns are not driven by a continental factor. The results suggest that, for European, North American and Asia—Pacific real estate portfolio managers, the Asia—Pacific region provides attractive international diversification opportunities.
Appraisal Smoothing: The Other Side of the Story
Authors: Lai Tsong‐Yue , Wang Ko
Published: September 2003

Appraisal smoothing has been widely accepted as an important factor to consider when analyzing real estate returns using appraisal‐based data. In this paper, we demonstrate that the general applicability of the appraisal‐smoothing arguments developed so far in the literature is limited by the assumptions upon which the arguments are based. We further show that the use of appraisal‐based data can result in a higher (not lower) variance than that of true returns. Given this, it might be more fruitful to analyze the unique characteristics of real estate markets as possible explanations for the seemingly low variance observed in appraisal‐based (or transaction‐based) return indexes.
The Value in Targeting Institutional Investors: Evidence from the Five‐or‐Fewer Rule Change
Authors: Downs David H.
Published: September 2003

This article examines a recent relaxation in the ownership qualifications for real estate investment trusts that is popularly referred to as the five‐or‐fewer rule change. The motivation for this rule change leads to an analogy between the ownership change process and an industry‐wide investor targeting strategy. The findings reveal a significant wealth effect based on the targeting strategy; however, there is no evidence to suggest this heterogeneous effect was intended. In addition, the targeted investors' ex post trading behavior is linked directly to the targeting strategy. These findings support the value‐based strategy of targeting institutional investors where, in this case, value creation is associated with the increased concentration of a dispersed base of sophisticated investors.
The Performance of Commercial Mortgages
Authors: Ciochetti Brian A. , Vandell Kerry D.
Published: September 2003

This study examines the return characteristics of a large, well‐diversified commercial mortgage portfolio. Mortgage‐specific cash‐flow histories are constructed for 2,480 loans originated over the period 1974 through 1990, and a contingent‐claims approach to pricing risky debt is used to estimate inter‐temporal market values. Quarterly holding‐period returns are compared across selected mortgage groups and to alternate asset classes. Our findings suggest that both mortgage returns and volatility of return are comparable to those of other forms of fixed‐income assets over the study period. Implied property price volatility is found to average 17%, a result significantly higher than reported in earlier studies. While mortgage returns are found to vary by property type and region of origin, cross correlation of returns is found to be high, illustrating the systematic effect of interest rates on the performance of commercial mortgages over the period 1974 through 1990. However, an increase in credit risk in the latter years of the study suggests that diversification may be a worthwhile objective for holders of these assets. We do not find evidence to suggest that abnormal returns were earned on commercial mortgage portfolios over the study period.
The Effect of Residential Crowding on Labor Productivity with Evidence from the Twilight of Polish Socialism
Authors: Hacker R. Scott
Published: September 2003

This paper considers the effect of low per capita housing stock on labor productivity. Theoretically, a negative effect may be expected. Low per capita housing leads to greater difficulty in finding housing, which in turn leads to reduced labor mobility and a less productive allocation of labor. A dynamic model is developed which displays this relationship and which takes into account inter‐regional migratory flows induced by regional labor productivity differentials. The empirical part of the paper focuses on cross‐sectional information, using primarily 1989 Polish data aggregated at the regional level.
Search, Bargaining and Optimal Asking Prices
Authors: Arnold Michael A.
Published: September 2003

This paper analyzes a search‐and‐bargaining model in which the asking price influences the rate at which potential customers arrive to inspect the seller's house, and the buyer's valuation of the asset is not learned until after the seller makes his initial offer (the asking price). The optimal asking and reservation prices are characterized, and the existence of a subgame‐perfect equilibrium asking‐price—reservation‐price strategy is established. Comparative‐statics analysis illustrates how seller and buyer discount rates and the buyer's outside opportunity affect the optimal reservation and asking prices.
The Integration of Commercial Real Estate Markets and Stock Markets
Authors: Ling David C. , Naranjo Andy
Published: September 2003

This paper tests whether commercial real estate markets (both exchange‐traded and non‐exchange‐traded) are integrated with stock markets using multifactor asset pricing models. The results support the hypothesis that the market for exchange‐traded real estate companies, including REITs, is integrated with the market for exchange‐traded (non‐real‐estate) stocks. Moreover, the degree of integration has significantly increased during the 1990s. However, when appraisal‐based returns (adjusted for smoothing) are used to construct real estate portfolio returns, the results fail to support the integration hypothesis, although this may reflect the inability of these estimated private market returns to accurately proxy for commercial real estate returns. Interestingly, the growth rate in real per capita consumption is consistently priced in both commercial real estate markets and stock markets, whereas previous studies have found mixed evidence on the role of consumption in explaining ex ante stock returns.
An Empirical Study of Derivatives use in the REIT Industry
Authors: Horng Yuh‐Sheng , Wei Peihwang
Published: September 2003

We examine the use of derivatives in the real estate investment trust (REIT) industry. Tax considerations and speculative motives should not be important factors here, as REITs pay no corporate income tax and their speculative activities are limited by regulations. We find that 41 % of REITs use interest‐rate derivatives, although the amount of derivatives on average is not high. Our principal results are that larger REITs and mortgage REITs are more likely to use derivatives. However, in terms of the amount of derivatives, REITs that are smaller and have a larger amount of debt tend to use more derivatives. We interpret the results as evidence supportive of substantial entry costs for hedging and financial‐distress costs being a major consideration for the level of hedging. REITs with greater ratio of market to book value of assets also tend to use more derivatives. However, this result is not robust across different sample sets. We therefore view this as weak evidence supporting the agency‐cost explanation for hedging. Additional analysis on interest‐rate risk and hedging activities finds that mortgage REITs tend to increase their hedging activities when interest rates decrease, while the opposite is true for equity REITs. We interpret this as evidence consistent with prepayment risk being a major factor for mortgage REITs, while equity REITs primarily hedge to control funding costs.
Focus, Transparency and Value: The REIT Evidence
Authors: Capozza Dennis R. , Seguin Paul J.
Published: September 2003

We trace the effects of corporate focus by examining the relationships among focus, cash flows and firm value. In contrast to past studies that examine the effects of diversifying across SIC‐code‐defined industries, we show that diversification, even within a single industry, reduces value. Our evidence, drawn from a panel of real estate investment trusts, indicates that this reduction is not due to poor managerial performance. Project‐level cash flows are actually higher for less focused firms. However, these gains are offset by higher management, administrative and interest expenses. Thus, the corporate cash flows available to shareholders are not related to focus. Finally, we provide empirical evidence that links the effect of focus on value to informational asymmetries which cause the equity of diversified firms to be less liquid. We attribute some of the effect of focus on the cost of both debt and equity to informational asymmetries or transparency costs.
The Suburban Housing Market: Effects of City and Suburban Employment Growth
Authors: Voith Richard
Published: September 2003

Using a data set of over 88,000 housing sales, we find that city employment growth has a significant positive effect on suburban house values; this effect is largest for housing closest to the central business district and declines with increasing distance from it. City employment growth has a negative effect on the rate of suburban house construction; the magnitude of the effect increases with distance. Suburban employment growth has little aggregate effect on house prices, and there is less variation by distance. Suburban growth has a significant effect on construction rates, especially at locations near the urban fringe.
The Urban Homeowner's Residential Location Decision in an Asset‐Pricing Context
Authors: Wieand Kenneth
Published: September 2003

Homeowners determine the maximum site bid price for homeowner housing within a two‐period expected‐utility model. The bid price is a function of the expected cash flows to sites, the quantity of housing consumed and a relocation option. The bid price is derived in the general case as a function of the homeowner's portfolio risk, including the total risk to the site, and the market price of risk. The bid price is derived under a spatial measure as a function of distance from an arbitrary location. Specific results are obtained when the household experiences log‐linear utility for housing and other goods. Use of the market price of risk simplifies analytical solutions to the bid price equation.