Housing Economics

for excellent comments and to Minye Zhang, Dawei Tian and Huanghai Li for outstanding research assistance. The authors also thank Mark Flannery and participants in the 2009 AEA session on the subprime crisis for helpful comments. All errors are our responsibility.

Option theory predicts that mortgage default or prepayment will be exercised if the call or put option is "in the money." We extend our analysis to commercial mortgages using data from commercial mortgage-backed securities (CMBS). The paper presents a model of the competing risks of mortgage termination (default and prepayment) using data from commercial mortgage-backed securities (CMBS) deals. Our results show that the option model explains both default and prepayment for commercial mortgages. We find that loan specific variables (such as loan-to-value ratio, debt service coverage ratio, loan-rate spread and prepayment prevention) are important explanatory variables for both default and prepayment. We also find that default and prepayment vary across regions of the country; given that regional economies do not move in perfect lock-step, we would expect there to be cross-sectional variation in default rates. However, the degree of variation across regions in terms of prepayments is not as predictable. The largest differences are across property types, both in terms of default and prepayment risk.

This paper discusses some of the key characteristics of the U.S. subprime mortgage boom and bust and discusses the causes, particularly related to the relationship between subprime mortgage defaults and housing prices. We observe that housing prices and mortgage defaults had distinctly localized trends, but those trends ceased by 2005 when several states studied in this paper (Arizona, California and Nevada) began to move together. Furthermore, we observe the seriously delinquent subprime mortgages increased much more rapidly than was anticipated by historically-based econometric models. As such, this paper offers a partial explanation for how financial institutions misunderstood the declining house prices and increasing subprime default.

for excellent comments and to Minye Zhang, Dawei Tian and Huanghai Li for outstanding research assistance. The authors also thank seminar participants at the Federal Reserve Board, UCLA, George Washington University, and the 2009 AEA session on the subprime crisis for helpful comments. All errors are our responsibility.

The recent rise in shared appreciation mortgage (SAM) availability motivates careful consideration of underlying borrower incentives. The lenderÕs share of appreciation in SAMs (share) is essentially a dynamic prepayment penalty imposed on the borrower. However, the borrower faces a moral hazard due to his ability to affect the penalty by reducing maintenance. We adapt a competing risks mortgage-pricing model to calculate SAM theoretical equilibrium rates. Our borrower possesses rational expectations of both the house price market and interest rates. Our simulation results may help explain the lack of secondary market interest for the UK SAMs containing extreme contract terms.

The real estate and urban economics literature has consistently shown that foreclosed homes adversely impact the selling price of surrounding real estate. In this study, we examine the external impact of foreclosures on nearby real estate liquidity in particular. In addition to using more traditional binary measures, we construct a continuous distance-weighted foreclosure externality measure that incorporates temporal overlap between a listed property's marketing period and nearby foreclosures. This approach allows us to estimate effects of nearby foreclosed homes at various points in a property's marketing period, allowing the spillover to vary in intuitive ways. While much of the literature shows that foreclosed properties have a modest effect on nearby home prices, our results show that foreclosed homes adversely impact the liquidity of nearby homes substantially, increasing a nearby home's time on market and significantly reducing the probability that it will sell. Further, the results suggest that foreclosure externality on liquidity is primarily driven by a disamenity effect, as the estimated external supply effect of a foreclosed property is approximately the same as a non-foreclosed property.

This review paper will discuss Redlining, the discriminatory practice of denying financial services to neighborhoods based on race or ethnicity, began in the 1930s as a method of housing discrimination that profoundly shaped American society. Through the Home Owners' Loan Corporation (HOLC), neighborhoods were rated by "investment risk," with red lines drawn on maps to mark areas where banks and federal agencies refused to invest, predominantly targeting African American communities. This practice, combined with other discriminatory tactics like steering and blockbusting, denied African Americans access to homeownership and wealth-building opportunities while directing white families toward desirable suburban areas with favorable mortgage terms. The consequences extended beyond housing access, as redlined neighborhoods suffered from deteriorating infrastructure, underfunded schools, limited public services, and poor health outcomes, with residents experiencing a 3.6-year lower life expectancy. Although the Fair Housing Act of 1968 prohibited such discrimination, the legacy of redlining persists today through continued disparities in homeownership rates, educational opportunities, and health outcomes, demonstrating how historical housing discrimination continues to preserve racial inequalities in America today.

Supportive policies that lead to significant relative price changes have widespread impact on income distribution that cannot be considered by adjusting expenditures with the consumer price index. While households have different consumption patterns in different income deciles, the Consumer Price Index (CPI) measures changes in prices based on the pattern of consumption in the average-income households. To overcome the issue, this paper examines the impact of relative price changes on distribution of real income (real expenditure) based on the HSPI Index, which is calculated using the weights of goods in each household's basket. The period under study is 2007-2015. To measure inequality, the Gini coefficient is used based on Ogwang method. The results show that in periods that price of foods increase more than other categories, income inequality is the more when calculated, respectively, based on Household Specific Price Index (HSPI) and Consumer Price Index (CPI) than Gini coef...

We use an empirical model of commercial mortgage spreads to examine how tenant diversification impacts credit spreads for mortgages on retail properties. We find that mortgages on properties with a highly diversified tenant base have spreads that are up to 8.5 basis points higher than spreads on mortgages for single-tenant properties, but that mortgages on properties with moderate levels of tenant diversification have spreads that are up to 5.5 basis points lower than mortgages on single-tenant properties. The spread discount for mortgages on properties with moderate levels of tenant diversification disappears when the lease of the property's largest tenant expires before the loan matures. Despite the spread discount that is given to properties with moderate levels of tenant diversification, we find that the likelihood with which a mortgage goes into default increases as tenant diversification increases.

We utilize the decennial U.S. Census to study social effects in housing consumption across 4 million households from 126 ethnic groups and 2,071 geographic locations in the United States. We find that the homeownership decisions within ethnic groups are locally correlated, after controlling for the homeownership rates within the group and the region. Social influence is stronger for younger, less educated, and lower-income individuals; immigrants; and Americans with ancestors from more unequal, uncertainty-avoiding, and collectivistic cultures. Our results suggest that both status and information considerations play an important role in the social comparison process in capital markets.

We estimate empirically the effect of immigration on house prices and residential construction activity in Spain over the period 1998-2008. This decade is characterized by both a spectacular housing market boom and a stunning immigration wave. We exploit the variation in immigration across Spanish provinces and construct an instrument based on the historical location patterns of immigrants by country of origin. The evidence points to a sizeable causal effect of immigration on both prices and quantities in the housing market. Between 1998 and 2008, the average Spanish province received an immigrant inflow equal to 17% of the initial working-age population. We estimate that this inflow increased house prices by about 52% and is responsible for 37% of the total construction of new housing units during the period. These figures imply that immigration can account for roughly one third of the housing boom, both in terms of prices and new construction.

Incorporating spatial econometric tools in Hedonic Pricing (HP) models for environmental valuation has become the standard approach in the literature. The effect of house prices on other house prices is taken into account and usually measured by distance or contiguity in spatial weight matrices. Disaggregate house sale datasets are composed from observations each at a specific location and time. Nevertheless, the symmetric spatial weight matrices commonly employed in HP studies ignore the temporal dimension in disaggregate house sale data. Thus not only are previous house sales taken to affect subsequent house prices, but so do future house sales. However, information does not travel backwards in time; hence there is a clear theoretical impossibility of actual future prices affecting current/past prices. Estimates derived from HP models where spatial dependence is incorrectly specified or ignored will exhibit inaccuracies. This paper proposes an alternative specification of spatial weights in HP that includes spatial effects on each sale price only from preceding house sales. The temporal aspect of spatial effects is then developed further by specifying a time decay rate to capture the diminishing effect over time of preceding sale prices to succeeding house prices. This novel specification of spatial weight matrices is shown to have a significant effect on estimates of house price depreciation from aircraft noise. Monetary values of aircraft noise externality are successfully derived from the HP models for Athens Airport.

Elastisitas dalam mikroekonomi merupakan konsep penting yang menggambarkan responsivitas permintaan atau penawaran terhadap perubahan variabel ekonomi, seperti harga, pendapatan, dan harga barang terkait. Penelitian ini bertujuan untuk menganalisis jenis-jenis elastisitas, termasuk elastisitas harga permintaan, elastisitas pendapatan, dan elastisitas silang, serta implikasinya terhadap pengambilan keputusan produsen dan konsumen. Melalui pendekatan kualitatif deskriptif, kajian ini menunjukkan bahwa pemahaman terhadap elastisitas membantu pelaku ekonomi dalam menentukan strategi harga, mengestimasi pendapatan, dan menilai dampak kebijakan pemerintah. Hasil analisis menunjukkan bahwa produk dengan elastisitas tinggi cenderung mengalami perubahan permintaan yang signifikan terhadap perubahan harga, sementara produk inelastis cenderung stabil. Dengan demikian, elastisitas menjadi alat analisis vital dalam memahami dinamika pasar dan perilaku ekonomi mikro secara lebih mendalam.

This paper analyzes price elasticity of demand by comparing two small businesses: a meatball (bakso) food stall and a rental boarding house (kos-kosan). The study reveals that bakso, a daily-consumed product, shows relatively elastic demand, where a price increase reduces consumption significantly. In contrast, the kos-kosan service, which fulfills a primary need for housing, demonstrates inelastic demand with relatively stable occupancy rates despite rising rental fees. This real-life comparison highlights the importance of understanding elasticity in setting pricing strategies and sustaining business performance.

With recourse to data obtained from the online multiple listing services (MLS) of the Nigerian Property Centre, this study evaluated the efficiency of sale of distressed properties in Lagos city using a 6-month interval of observations protocol, comprising of listings of less than 6 months, 7 to 12 months, 13 to 18 months, and 19 to 24 months respectively. Time-on-the-market (TOM) in this study was perceived to be the duration (in months) from the listing date to the date of data collection. Results of selected parametric and non-parametric statistical tests indicated that there was an insignificant difference in the observation of distressed properties that have remained on the market for at most 6 months and those with marketing time beyond 6 months. Similarly, properties listed for distressed sales in Lagos city were found to have continuously attracted lower purchase rates in the same manner as the non-distressed properties. These results avowed the phenomenon of inefficient sale of distressed properties in Lagos city, Nigeria. It was recommended by the study that individuals and institutions in property brokerage business in Lagos city should conduct a risk assessment of the diminishing likelihood of distressed sales and the incremental losses associated with lengthy listing periods.

This small study/letter develops a unified framework for studying housing‐search frictions by integrating classical random‐matching, directed‐search, and block‐recursive equilibrium models into a single tractable structure. We begin by re-deriving the canonical DMP Bellman equations and free‐entry and surplus‐sharing conditions under random search, then extend the analysis to a directed‐search environment in which students optimally allocate search effort across rent quality sub‐markets, proving the existence and uniqueness of equilibrium tightness and showing that the Hosios efficiency condition naturally emerges under constant‐returns matching . For theoretical application purposes, we fit our model into a two-state housing scenario with condos and legacy housing in Kingston, Ontario, where the introduction of fixed‐supply legacy units allows landlords to charge an above‐competitive markup that exacts a welfare loss equal to the excess rent and violates the Hosios condition. The results deliver clear guidance for designing housing policies that reinstate competitive rents and maximize match surplus in the presence of quality heterogeneity and legacy‐stock constraints.

Land use regulation per se is neither good nor bad. What matters is the cost and benefit of specific regulations in specific market conditions. This paper presents a straightforward cost-benefit framework for analyzing land use and related regulations in such a context, and presents an application of the method to Malaysia. We use these results to illuminate several important issues, namely the effects of such land use regulations on housing markets, how to use such analyses to suggest revisions to common land use regulations, and what changes in higher-order incentives facing regulatory authorities might be required to encourage an appropriate regulatory environment for urban land.

Investments in Geothermal Energy Development Projects (GEPs) are still considered high-risk and capital-intensive with unpredictable completion even amidst the adoption of Public Private Partnership (PPP) financing models particularly in sub-Saharan Africa (SSA). Numerous GEP completion bottlenecks affecting timely project completion have been documented lately; these challenges have caused delayed delivery of critical path milestones, project stalling, and even outright project failures. Recent empirical studies focused more on developed countries' longitudinal secondary databases covering the wider energy sector, with minimal attention paid to the situation of GEPs in developing countries. Anchored on the positivism and pragmatism foundations, this study examined the mediating influence of delivery capability on the relationship between PPP financing structure and the completion of GEPs in Kenya. Using a census survey design, data from 48 geothermal energy projects (private sector project managers and implementation team leaders from the public sector) and key informants was collected and analyzed using mixed methods. Data triangulation and diagnostic tests were performed. The results and findings revealed that while PPP financing structure alone explains 43.9% of the variance in project completion, the inclusion of delivery capability substantially increases the explained variance to 66.1%. A balanced PPP financing structure and delivery capability have statistically significant effects on project completion outcomes, with delivery capability (β = 0.579) having a stronger isolated effect than the PPP financing structure (β = 0.326). The reduction in the PPP financing structure coefficient from the first to the second model suggests that some of its effect is shared with or mediated by delivery capability. The study concluded that completing PPP-financed GEPs requires an integrated approach that considers both predictor variables: A balanced PPP financing structure comprising private equity, commercial and concessional loans, grants and government contributions; and strong delivery capability including geological, technological, PPP modelling and agile project management competencies. Geothermal sectorspecific government support measures and industry recommendations are provided to enhance the completion of PPP-financed geothermal energy development projects mainly in the SSA region.

This paper examines residential sale mechanisms from an appraisal perspective and empirically tests for differences in the valuation process for auctioned and private treaty sales. We test the hypothesis that agents use different criteria in preparing the guide prices for auctioned housing, with an element of under pricing in order to aid in the marketing of the property. The empirical tests are undertaken on a sample of auctioned and private treaty sales in Dublin, Ireland for the period of 1997-2004. We find that the evidence is consistent with the hypothesis that agents do adjust valuations for auctions to attract additional potential bidders.

This paper examines the long-term impact and short-term dynamics of macroeconomic variables on international housing prices. Since adequate housing market data are generally not available and usually of low frequency, a panel cointegration analysis consisting of 15 countries over a period of thirty years is applied. Pooling the observations allows us to overcome the data restrictions which researchers face when testing long-term relationships among single real estate time series. This study does not only confirm results from previous studies but also allows for a comparison of single country estimations in an integrated equilibrium framework. The empirical results indicate positive effects on house prices arising from an increase in economic activity, construction costs, and the short-term interest rate and negative effects stemming from an increase in the long-term interest rate. Deviations from the long-term equilibrium result in a dynamic adjustment process that can take several years.

Over the last three decades, the growth in housing costs relative to household incomes across cities in the United States has dramatically affected households' housing options. For this study, we apply a logit model to data from the American Housing Survey to provide evidence on how rising house costs affect female-headed households' decisions to move from the current home to another. Estimates reveal that total housing cost is a significant determinant of a female-headed household's decision to move. We also found that lower-income female-headed households are more likely to move to a new location than higher-income female-headed households. These results support the idea that affordable housing programs should be maintained and expanded to offer some alleviation to the burden of rising housing costs on lower-income female-headed households and other vulnerable groups.

Over two million children experience homelessness annually in the United States, often disrupting their healthcare. The purpose of this study, spearheaded by the National Network to End Family Homelessness (NNEFH), was to understand the role of primary care providers who serve children and families experiencing homelessness. Specifically, we sought to describe best practices for screening for housing-unstable families and providing optimal care for these patients once identified.In addition to a thorough literature review on screening for housing instability, we conducted a qualitative study employing semi-structured, in-depth interviews with clinicians and administrators working in healthcare organizations serving children and families.All clinics performed housing screening, applying a mix of validated and unique tools based on their patient population; also providers were well-versed on common health challenges among persons experiencing homelessness. Most clinics reported that t...

The Digital finance services help in creating an opportunity to access the financial services for those people who are unable to visit banks to make transactions. Portable installment stages enable their clients to pay and move assets in versatile cash yet in addition offer access to other finance related items, for example, reserve finances or protection. Installments are the connective tissue of a monetary framework. They empower individuals to purchase merchandise, buy water and power, and transfer money to companions, family and colleagues. They empower government to gather imposes and dispense social installments. Furthermore, they empower providers to gather installments from purchasers. Computerized finance and finance related incorporation has a few advantages to budgetary administrations clients, advanced back suppliers, governments and the economy; in any case, various issues still endure which whenever tended to can improve computerized finance work for people, organizations and governments.

The Turkish housing market has come under the pressure of different factors that are directly affecting housing policies. In Turkey, the housing market is the main driver of the economy, with the private sector providing a continuous supply of housing to the market in order to keep the construction sector alive. Unfortunately, this ongoing housing supply is not part of a specific plan, and so several physical and social problems are emerging, especially in Turkey's metropolitan cities. This study aims to identify these problems through an examination of the reflections of the economic and political environment of the country on the housing market. The Turkish economy has faced several economic crises since the 2000s, with most economic indicators highlighting significant problems following the 2018 crisis. The results of the study reveal that the unstable economic environment in the country has also had an impact on the housing market, especially after 2018. While the Turkish housing market started to show a positive trend in 2020 after some temporary efforts to stimulate the economy, the purchasing power of the low- and moderate-income groups has decreased continuously up until 2020, due to the lack of improvement in the general economic situation of the country.

In the United States, the residential housing market went through important changes over the period from the 1970s to the mid-1990s. Although the aggregate homeownership rate was relatively stable during that period, the distribution of homeownership rates by age changed in remarkable ways. While younger households saw substantial declines in homeownership rates, the opposite happened for older households. In this paper, we argue that the skill-biased technological change (SBTC) that began during the 1970s has been an important factor behind the observed change in the distribution of homeownership rates by age. We build a life cycle model in which skills are accumulated on-the-job through experience: learning by doing. Early in life, households have lower levels of skills and therefore lower earnings. SBTC increases the returns to skill, widening the wage gap between young and old ages. As a consequence, it takes more time for young households to become homeowners given frictions in financial markets (e.g. downpayment requirements) and housing markets (e.g. large and indivisible houses), in line with consumption smoothing behavior. On the other hand, older households that could not afford a house before may now become homeowners, given higher returns to skill. Our analysis confirms this conjecture, namely, that SBTC shifts the distribution of homeownership from the young to the old.

This paper examines the determinants of tenure choice in two cities of the Third World. Empirical analyses of the factors that motivate a particular household to become a tenant, squatter, or legal owner can shed light on the types of strategies that are most likely to affect tenure choice. A relatively straightforward application of a logit model is used to analyze tenure choice in both cities. In each case, households are assumed to maximize utility subject to a budget constraint for rental, squatting, and owning modes of tenure. The model predicts tenure choice correctly 63% of the time for Manila households and 77% of the time for Cairo residents. The findings also suggest that squatter households may have more in common with owners than renters, especially in terms of mobility considerations.

The Housing Choice Voucher program was created, in part, to help low income households reach a broader range of neighborhoods and schools. Rather than concentrating low income households in designated developments, vouchers allow families to choose their housing units and neighborhoods. In this project we explore whether low income households use the flexibility provided by vouchers to reach neighborhoods with high performing schools. Unlike previous experimental work, which has focused on a small sample of voucher holders constrained to live in low-poverty neighborhoods, we look at the voucher population as a whole and explore the broad range of neighborhoods in which they live. Relying on internal data from HUD on the location of assisted households, we link each voucher holder in the country to the closest elementary school within their school district. We compare the characteristics of the schools that voucher holders are likely to attend to the characteristics of those accessible to other households receiving place based housing subsidies, other similar, unsubsidized households and fair market rent units within the same state and metropolitan area. These comparisons provide us with a portrait of the schools that children might have attended absent HUD assistance. In comparison to other poor households in the same metropolitan areas, we find that the schools near voucher holders have lower performing students than the schools near other poor households without a housing subsidy. We probe this surprising finding by exploring whether differences between the demographic characteristics of voucher holders and other poor households explain the differences in the characteristics of nearby schools, and whether school characteristics vary with length of time in the voucher program. We also examine variation across metropolitan areas in the relative quality of schools near to voucher holders and whether this variation is explained by economic, socio-demographic or policy differences across cities. 1 1. 1 Based on the Department of Housing and Urban Development's 2013 Budget available at 2 To receive a voucher households apply to the local Public Housing Authority (PHA), who determines eligibility based on local Area Median Income (AMI) as well as some local priorities. All PHAs require that a family's income does not exceed 80 percent of AMI, but the majority of PHAs require that the family's income does not exceed 50 percent of area median income (AMI). By law PHAs are required to award 75 percent of their vouchers to households whose incomes do not exceed 30 percent of AMI. During the application process the PHA collects information on the family's income, assets and composition. Once the family is deemed eligible they are put on a waiting list for a voucher. As demand usually exceeds supply many waitlists are quite long. According to the New York City Housing Authority (NYCHA) the average waiting period in New York City is around 5 years. Some PHAs also specify particular preferences, such as prioritizing a family who is (1) homeless, (2) paying more than 50 percent of their income on rent or (3) involuntarily displaced. Once a household receives a voucher they then must find a unit which meets an acceptable level of health and safety before the PHA can approve the unit. Each PHA determines a payment standard, which is the amount needed to rent a moderately priced dwelling unit in the local housing market (generally based on Fair Market Rents which are determined by HUD). A household is then required to pay up to 30 percent of their income on rent and the remainder (up to the payment standard) is covered by the PHA. Additional information on the Housing Choice Voucher program is available through HUD.

Do Good Cause eviction protections reduce the rate of housing production? Our preliminary analysis suggests not; housing production in California, Oregon, and New Hampshire did not decline after passage of Good or Just Cause relative to nearby states without the legislation. Across the USA, state legislatures are considering legislation that requires landlords to document “Good Cause” when evicting renters. Stakeholders make contrasting claims about the potential impact of the policy. In support, tenant advocates argue that it helps families stay in their homes amidst a housing affordability and homelessness crisis. In opposition, landlord lobbyists suggest that Good Cause will disincentivize developers from building new multifamily rental housing and lead to a decline in housing supply, and, thus, exacerbate the housing crisis. We set out to investigate the existing empirical research, and, subsequently, identified a gap across the fields of housing economics and policy studies on the impact of Good Cause on housing markets. We gathered data from three states – California, Oregon, and New Hampshire – where “Good” or “Just Cause” laws passed over the last decade. We conducted a difference-in-difference analysis on whether the trend in new permits at the county-level in states subject to the passage of Good Cause were different from the trends in nearby counties in states not subject to the law. The model controlled for other factors: county-level GDP, population, unemployment and per capita income. We found that permits did not decline in California, Oregon, or New Hampshire counties relative to the changes occurring in surrounding states, ceteris paribus. Building on existing research that suggests that Good Cause will keep families in their homes because it results in lower rates of evictions and displacement, our findings suggest that passing Good Cause eviction protections will not result in reduced rates of new housing production or, subsequently, housing supply.

This study has found that Tax Service Reliability and responsiveness has no significant influence on presumptive tax payer's compliance in Ilala Tax Region. Also the study revealed Tax Service Tangibility to have a significant positive influence on presumptive taxpayers' compliance in the Ilala tax region. From the results, this study recommends Tanzania Revenue Authority (TRA) to focus on enhancing the perceived reliability of their tax services, including measures to ensure consistent interpretation and application of tax regulations, improving the accuracy of tax assessments, expediting the issuance of tax-related documents, enhancing the transparency of tax procedures and policies, and maintaining reliable online tax filing systems. Additionally, they should prioritize improving responsiveness to taxpayers' needs by enhancing the promptness of addressing inquiries and concerns, making tax authority representatives more accessible through various communication channels, offering comprehensive assistance and guidance, and ensuring clarity in tax-related communication materials to enhance taxpayers' understanding and compliance.

A general equilibrium model, that incorporates endogenous production and local housing markets, is developed in order to explain the price relationship among human capital, housing, and stocks, and to uncover the role of housing in asset pricing. Housing serves as an asset as well as a durable consumption good. It is shown that housing market conditions critically a¤ect asset price correlations and risk premia. The …rst result is that the covariation of housing prices and stock prices can be negative if land supply is elastic. Data from OECD countries roughly support the model's predictions on the relationship among land supply elasticity, asset price correlations, and households'equity holdings. The second result is that housing rent growth serves as a risk factor in the pricing kernel. The risk premium becomes higher as land supply becomes inelastic and as housing services become more complementary with other goods. Finally, the housing component in the pricing kernel is shown to mitigate the equity premium puzzle and the risk-free rate puzzle.

In this paper, we use analyze data from a survey of over thirteen hundred household housing-tenures in Panama. Our objective is to identify the features which determine whether households in a developing country such as Panama choose to rent or to buy housing properties, or alternatively to seek somewhat alternative tenure arrangements. In particular, we investigate the common characteristic of Panamanian households undertaking plot purchases with a view to future building. In order to analyze these alternative tenure arrangements we develop a series of log-linear models, in which dichotomous rent-versus-buy models are extended to include the possibility of plot purchasing with a view to future building. The extended models including plot purchases are seen to be superior to the dichotomous rent-versus-buy model in identifying which household characteristics are associated with particular housing-tenure decisions.

We provide a first decomposition of the price gap between prices for single family houses and apartments into their microeconomic determinants. Using individual data from the collection of real estate transactions data for Berlin, Germany, we find a positive price gap for houses in Berlin in 1990 which is decreasing up to 1998. When controlling for structural characteristics, no positive price gap can be identified between 1996 and 2006. The application of Oaxaca decomposition reveals a growing preference for size (favoring houses), which is -since 2006 -offset by a growing preference for a more central location.

We propose an approach to empirically implement the theoretical framework proposed by Pryce et al (2011) for analysing property prices’ responses to flood frequency and severity. Our study concentrates on the case of infrequent floods where myopic and amnesic perceptions of risk should dominate, and uses a natural experiment to empirically test Pryce et al (2011)’s theoretical pattern. In this regime observed quality adjusted prices are expected to drift away from a risk-adjusted constant quality property price towards the zero-risk constant quality property price as the years pass since the last flood. When a flood occurs, actors become aware of the true flood risk and observed prices quickly adjusts downwards towards the risk adjusted price. The city of Brisbane suffered two major devastating floods in 1974 and 2011. The construction of a dam with two compartments, flood and water reservoir, in the mid 1980s lead inhabitants and the market to underestimate the risk of another majo...

The Joseph Rowntree Foundation has supported this project as part of its programme of research and innovative development projects, which it hopes will be of value to policy makers, practitioners and service users. The facts presented and views expressed in this report are, however, those of the author[s] and not necessarily those of the Foundation.

The impact of borrowing constraints on homeownership has been well established in the literature. Wealth is most likely to restrict homeownership followed by credit and income. Using recent movers from the 1979 National Longitudinal Survey of Youth and borrowing constraint definitions commonly used in the literature, we examine the impact of these constraints on the probability of homeownership during the housing market boom between 2003 and 2007. We show that whereas the pool of financially constrained households expanded, the marginal impact of borrowing constraints associated with income and credit quality declined during this period. The constraint associated with wealth, however, continued to have a negative impact on homeownership status, all else equal. The fact that lending standards became less strict is accepted; however the impact of this on homeownership has not been previously studied. Here we find that less restrictive underwriting does appear to have reduced the impact of income and credit quality on homeownership but the impact of the wealth constraint persists.

Government of India has been taken various initiatives for promoting employment generation in the
country. MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Scheme) and PMMY
(Pradhan Mantri MUDRA Yojana) are the most popular schemes of government of India. MGNERA
launched for providing at least 100 days legal guaranteed employment for unskilled manual work in rural
areas. On the other hand, PMMY is launched to provide financial support to the small/micro business
enterprises and individual to enable them to set up or expand their business activities and to encourage
self-employment by providing collateral-free loans up to Rs.10 lakh. The present paper is an attempt to
analyze the progress of MGNREGA and PMMY by doing comparison between the two states i.e., Uttar
Pradesh and Uttarakhand. The analysis is based on secondary data, which reveals that there is a
significant rise in the number of beneficiaries under MGNREGA in both the states. PMMY also helps the
various MSMEs to get financial support with the promise of competitive rates of Interest. After the
analysis, our study found that, the MGNREGA scheme in Uttar Pradesh over the last five years has been
fully utilized by the people, the number of beneficiaries under this scheme has been increased
significantly. The growth percentage from the year 2017-18 is 4.87%, from the year 2018-19 is 69.76%,
2019-21 is 82.19% and from 2020-21 is 485.71%. The MGNREGA scheme in Uttarakhand showing
unstable results, even it showed negative growth % in the year 2017-18 i.e., -15.38% and also during the
year 2019-20 i.e., -15.38. On the other hand, it also showed positive growth in the year 2018-19 and
2020-21 i.e., 18.18% and 9.09% respectively. The second scheme of government which we took for our
analysis is PMMY scheme. The PMMY scheme showed the fabulous growth in Uttar Pradesh as compared
to Uttarakhand, as Uttarakhand somehow not fully utilized the benefits of the scheme yet.
Keywords: MGNREGA, PMMY, Uttar Pradesh, Uttarakhand, Employment Generation

Government of India has been taken various initiatives for promoting employment generation in the country. MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Scheme) and PMMY (Pradhan Mantri MUDRA Yojana) are the most popular schemes of government of India. MGNERA launched for providing at least 100 days legal guaranteed employment for unskilled manual work in rural areas. On the other hand, PMMY is launched to provide financial support to the small/micro business enterprises and individual to enable them to set up or expand their business activities and to encourage self-employment by providing collateral-free loans up to Rs.10 lakh. The present paper is an attempt to analyze the progress of MGNREGA and PMMY by doing comparison between the two states i.e., Uttar Pradesh and Uttarakhand. The analysis is based on secondary data, which reveals that there is a significant rise in the number of beneficiaries under MGNREGA in both the states. PMMY also helps the various MSMEs to get financial support with the promise of competitive rates of Interest. After the analysis, our study found that, the MGNREGA scheme in Uttar Pradesh over the last five years has been fully utilized by the people, the number of beneficiaries under this scheme has been increased

The living arrangements of public assistance recipients have been a concern of policymakers and researchers alike. Although the effects of welfare on household composition have been studied extensively, relatively little research has examined how housing assistance might relate to household composition. This research explores the relationship between housing assistance and household composition using data from the New York City Housing Vacancy Survey. The results show that household composition is indeed related to the receipt of housing assistance. In particular, married and cohabiting partners are less likely to be recipients of housing assistance, all else being equal.

This paper presents a diagnostic tool for the rapid assessment of the housing market and housing policy in a given country, using a global comparative perspective. The aim of such an assessment is to ground proposed government interventions in the housing market in a broader housing market reform. The rapid assessment requires defining the critical components of housing policy and the key dimensions of housing market performance. The general methodology for the assessment was developed by the author in his recent book, Housing Policy Matters: A Global Analysis (Oxford Univ. Press, New York, Oxford, 2000). The book itself is based on two earlier foundations: (a) a conceptual framework for housing policy, developed by the author and the late Stephen Mayo in the 1993 World Bank housing policy paper, Housing: Enabling Markets to Work (World Bank, Washington, D.C., 1993); and (b) the comparative set of housing indicators for 53 countries, defined, tested, and assembled by the author and the late Stephen Mayo-together with independent consultants in each country-during 1990-1994 in the Housing Indicators Program, a joint program of the World Bank and the U.N. Centre for Human Settlements. In the past two years, the author has conducted eight housing policy assessments in Central and South America. In this article, he uses the study conducted in Panama to illustrate the usefulness of this diagnostic framework, and to demonstrate how to derive specific policy recommendations from a general comparative analysis.

Using data for welfare recipients who left the Temporary Assistance for Needy Families program during 1996 in Cuyahoga County (Cleveland), Ohio, the authors compare the determinants of labor market outcomes across three classes of housing assistance: those who receive a certificate or voucher, those who reside in a traditional public housing project, and those who reside in a Section 8 housing project. The statistical model includes spatially based measures of job opportunities for welfare recipients as well as measures of access to those opportunities.

This study examines the role of auctioneer's strategy used in determining pricing at art auctions. It characterizes the role of auctioneers, prices that the paintings were sold at and tests a series of hypotheses about their behavior. This is done using pricing data from an auction of paintings. It examines the relationship between the auctioneer's estimates and realized prices. It determines whether the auctioneer and the market evaluate different attributes of different paintings differently and finally, an analysis is undertaken on the determinants of prices in the art market as suggested by hedonic regression.

The increasing availability of privately produced longitudinal Consumer Reference Datasets (CRDs) presents substantial opportunities for housing and urban studies research, permitting the analysis of processes, including residential mobility, migration, and neighborhood change. Despite their growing popularity in academic and policy research, these datasets—which are produced by private companies for sale primarily to commercial interests—are not explicitly designed for research purposes and have not been comprehensively assessed in terms of data quality or representativeness. This article carries out a comparative analysis of the CRDs that two of the most prominent sources of consumer reference data—Data Axle and Infutor Data Solutions—produce for King County, Washington. Comparing these datasets with estimates from the American Community Survey at the county and census tract scales, this article identifies substantial limitations associated with each dataset in terms of population counts, demographic characteristics, distribution across census tracts, and residential mobility rates. It concludes that despite notable advantages, including the ability to provide valuable and novel insights into heretofore unobserved patterns of residential mobility at a range of spatial scales, these datasets contain systematic biases. These biases may lead researchers to underestimate population counts and mobility rates for low-income households, renters, young adults, and people of color, and should, therefore, be used with caution in social, demographic, and policy research.

Research on the effectiveness of credit counseling is surprisingly scarce given its widespread use and given that it has been around for at least three decades. This paper studies the effects of counseling on default by adopting an option-based approach to mortgage termination. Data come from a counseling program developed as result of the collaborative efforts of a large Midwest bank, Community Churches, and a local community development company implemented during the 1992-1996 period. We find some evidence that counseled borrowers defaulted less often than non-counseled borrowers and that counseling affects optimal exercise of the default option.