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on Urban and Real Estate Economics |
| By: | Thomas Vogl; Fernanda Da Silva; Husain Vaghjipurwala |
| Abstract: | Coworking Spaces first appeared in large metropolitan cities, with a concentration of urban amenities and proximity to high-skilled workers, business hubs and public transportation. The coworking concept is still evolving, considering spatial changes, new governance structures and proliferation from urban to remote, peripheral and rural areas. This development goes along with the pressure of land and building prices in the core of EU metropolitan areas, CSs are pushed outside the central business districts towards peripheral neighbourhoods or to deprived inner-city areas with affordable rents. Recently peripheral areas started to attract a growing number of coworking spaces in various European countries. There are different pull factors behind the emergence of CSs in these areas. While other researchers recognize the benefit of the low rent prices in rural real estate markets and associate the establishment of coworking with availability of affordable renting. It is becoming acknowledged that the factors behind the emergence of CSs in peripheral areas are miscellaneous. However, it is recognised that this relation is weak and ambivalent. By arguing that location factors of housing and CSs are similar but not the same, we open up the real estate perspective and follow a broader view on the success factors of coworking spaces. Based on the desk research, the authors constructed their own database of CSs in Germany and the UK. The authors gathered data on the residential prices and rents on a district level. To identfy real market differences between districts with and without CSs, the authors applied statistical analysis for independent samples. The research shows that periperheral locations are attracting CSs to significant extent and that CSs are attracted by different determinants. The authors argue that the role of CSs in rather limitited in attracting real estate investors and boosting the real estate market in periphereal areas. The focus of this study (CSs in peripheral areas) and the comparitative approach is original. Additionally, applying the housing prices to study the location of CSs is novel as well. |
| Keywords: | Coworking spaces; Germany; housing market; Peripheral areas |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_90&r=ure |
| By: | Hui Zeng; Tianzhou Ren; Xizan Jin |
| Abstract: | An important feature of China's housing market is the coexistence of high house price to income ratios and high homeownership rates, especially in several first-tier cities where house price to income ratios far exceed normal affordability. Based on questionnaire data from Hangzhou, China, and logistic regression models, our study finds that the most important factors driving the middle- and low-income groups to buy houses in China are: first, China's unique household registration and school district housing system, which leads parents who place special emphasis on education to buy houses in the city by all means; and second, the continuous rise in housing prices, which leads to a surge in investment demand and passive home purchase demand. The reasons why the middle and low income groups can afford the cost of home purchase are: first, China's unique kinship culture, where relatives and friends lend to each other to solve their down payment problem for home purchase; second, China's housing mortgage lending policy is more relaxed, and the middle and low income groups can easily obtain financial support for home purchase; third, China's economy continues to grow, and the real and expected income of the middle and low income groups keeps increasing, which guarantees the mortgage loan repayment ability. However, the high house price to income ratio leads to heavy financial pressure on the middle and low income groups and is not conducive to sustainable and healthy economic development. To this end, we suggest that the government implement a policy of equal rights for rent and purchase as soon as possible to promote the development of the rental market and expand investment channels for residents. |
| Keywords: | Hangzhou; home ownership rate; House Prices; school district housing |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_336&r=ure |
| By: | Xiaoxuan Zhang (University of Waikato); John Gibson (University of Waikato); Chao Li (University of Auckland) |
| Abstract: | Direct effects of regional development interventions on targeted areas may be amplified by positive spillovers from elsewhere or offset by negative spillovers. Yet spillovers are often ignored in the applied literature, where impact analyses based on difference-in-differences typically treat spatial units as independent of their neighbours. We study spatial spillovers from a popular regional development intervention in China – converting counties to cities. China’s top-down approach lets only central government bestow city status on an area, with over ten percent of counties upgraded to cities in the last two decades. A growing literature estimates impacts of these conversions, with spatial units typically treated as independent of their neighbours. In contrast, our spatial econometric models use a 20-year panel for almost 2500 county-level units to allow indirect spillover effects on indicators of local economic activity. The positive direct effects on GDP and luminosity of a county being upgraded are amplified through positive indirect effects, especially in the eastern regions of China where economic activity and population are more densely concentrated. The models without spatial lags that ignore spillovers give estimated effects of converting counties to cities that are only two-fifths to two thirds as large as the estimated effects coming from the spatial models. |
| Keywords: | County upgrading;luminosity;regional development;spatial spillovers;China |
| JEL: | R12 |
| Date: | 2023–11–07 |
| URL: | http://d.repec.org/n?u=RePEc:wai:econwp:23/07&r=ure |
| By: | Melike Toprak |
| Abstract: | This paper investigates how Kenyan agency played explicit and implicit role in shaping Chinese real estate investments in Nairobi. The study explores the key components of the real estate assemblage, the interactions between local agencies and Chinese companies, and the factors contributing to their convergence in housing projects. The main argument of this research is that examining the real estate assemblage will significantly advance our understanding of the dynamics between Kenyan and Chinese actors in the real estate sector by shedding light on their interactions and the complexities of the urban landscape. It addresses a notable gap in the literature on political geography by focusing on urban spaces in the context of Chinese investments in African countries rather than exclusively concentrating on resource-rich nations. The methodology employed in this research entails a detailed case study of Nairobi, with a specific focus on residential areas where Chinese actors are concentrated such as Kilimani, Kileleshwa, Lavington and Kitisuru. |
| Keywords: | Assemblage Thinking; China-Afrika Relations; housing market; Kenya |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:afres2023-043&r=ure |
| By: | Christopher Lyaruu; Samwel Alananga |
| Abstract: | The location of commercial real estate properties within Central Business Districts (CBDs) has traditionally been considered a crucial factor in determining their Property Rental Values (PRV). Theoretical predictions in the field of real estate economics suggest that properties situated in prime spatial locations and close to amenities command higher PRV. It is however, still questionable on whether such higher PRV is a response to spatial dependence to amenities or purely a hedonic attributes effect of the property. This study examined three study wards of Kisutu, Kivukoni, and Mchafukoge within the CBD of Dar es Salaam city. Through a hedonic model analysis using questionnaire data from 180 tenants, the results suggests that tenants in these areas primarily consider PRVs based on their intuitive considerations to other buildings, rather than assessing the marginal effect brought about by spatial amenities such as ocean views, wind and open spaces. Proximity to services, particularly for business purposes, also drives tenant choices. These findings challenge the conventional understanding of spatial amenities as key determinants of PRV in the CBD, highlighting the unique dynamics of the case study areas. These findings can inform real estate developers, and policymakers in making informed decisions in property development, and investment strategies aimed at promoting sustainable and equitable development in urban areas. |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:afres2023-022&r=ure |
| By: | Anett Wins; Marcelo Del Cajias |
| Abstract: | Modern location analysis evaluates location attractiveness almost in real time, combining the knowledge of local real estate experts and artificial intelligence. In this paper we develop an algorithm – The Amenities Magnet algorithm – that measures and benchmarks the attractiveness of locations based on the urban amenities’ footprint of the surrounding area, grouped according to relevance for residential purposes and taking distance information from Google and OpenStreetMap into account. As cities are continuously evolving, benchmarking locations’ amenity-wise change of attractiveness over time helps to detect upswing areas and thus supports investment decisions. According to the 15-minute city concept, the welfare of residents is proportional to the amenities accessible within a short walk or bike ride. Measuring individual scorings for the seven basic living needs results in a more detailed, disaggregated location assessment. Based on these insights, an advanced machine learning (ML) algorithm under the Gradient Boosting framework (XGBoost) is adapted to model residential rental prices for the region Greater Manchester, United Kingdom, and achieves an improved predictive power. To extract interpretable results and quantify the contribution of certain amenities to rental prices eXplainable Artificial Intelligence (XAI) methods are used. Tenants' willingness to pay (WTP) for accessibility to amenities varies by type. In Manchester tram stops, bars, schools and the proximity to the city center in particular emerged as relevant value drivers. Even if the results of the case study are not generally applicable, the methodology can be transferred to any market in order to reveal regional patterns. |
| Keywords: | Amenities Magnet algorithm; location analysis; residential rental pricing; XGBoost |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_102&r=ure |
| By: | Eldridge Moses (Department of Economics and ReSEP, Stellenbosch University) |
| Abstract: | This paper uses 2021 and 2022 school-level administration data to examine the relationship between primary and high school locations to determine whether high-quality secondary schools still mostly draw learners selectively from nearby 'feeder' primary schools, and as a result affect racial diversity in enrolments. We find that race is still a powerful predictor of access to high-quality secondary schools in South Africa. Gauteng's poorest-performing schools are home to mostly Black and Coloured learners, while its best-performing schools have an over-representation of White and Asian/Indian learners (relative to their overall population proportions in Gauteng). The findings in this paper suggest that the uneven distributions of high-quality schools, feeder zone rules and affordability constraints prevent many South African learners from enrolling in high-quality schools. |
| Keywords: | School choice, education quality, South Africa, inequality |
| JEL: | I24 I25 I28 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:sza:wpaper:wpapers379&r=ure |
| By: | Olusegun; Olanrele; Angela Maye-Banbury; Rebecca Sharpe |
| Abstract: | Automation of the property valuation has no doubt improve the accuracy of value estimation. The capabilities of GIS technology to spatially display objects, event or phenomenon in their real time have also uplift the property market. The GIS with its statistical module have enhances the house price determination taken into account the spatial relationship between the house price and the determinant factors eliminating the problem of autocorrelation and accounting for spatial interdependency of predicting factors against the hedonic (OLS) model. The study focuses on spatial statistics utilising exploratory and geographic weighted regressions in comparison to OLS regression in housing price estimation. Data for the median house price and predicting variables for the 33 Burroughs of Greater London was accessed from the database of the UK Data Service through the webpage of the London Data Store both of the geographical boundary data and statistics dataset. The study found that autocorrelation remains a problem in OLS regression with Moran’s I value of 0.1771and P=0.0139. Exploratory regression provided three (3) variables of significant contribution to house price having highest R2 (90%) and other statistics satisfied for the model fit resulting in more accurate price estimation. |
| Keywords: | Hedonic Model; Housing Price; Spatial statistics; Valuation |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_315&r=ure |
| By: | Guillaume Toussaint; Arnaud Simon |
| Abstract: | In France, since many years, urban disparity based on income is increasing in most metropolitan areas (INSEE 2023). This urban disparity refers to the unequal distribution of social groups in the urban space (Rhein 1994). This phenomenon is explained by 2 main factors: first, since the financialization of the French real estate market in the 90’s (Nappi-Choulet 2013), many households and investment funds are turning to real estate for investment, as it is presented as a safe haven, particularly luxury real estate. This has led to a significant concentration of property wealth by a small number of households, particularly in bourgeois districts (INSEE, 2021). Second, we observe an “entre-soi” phenomenon, particularly within the upper social classes (Préteceille 2006). The location of the housing became central for the upper social classes, to the point of becoming the most important characteristic in the housing choice process (Bouzols 2019). These social characteristics of luxury housing are not well documented in the real estate literature, and not quantified. The marketing literature brings elements to determine whether a product is considered as luxury or not. Based on the conceptual framework of luxury of Bachmann, Walsh, and Hammes (2019), which details different constructs of the luxury product , we will pose the following research question: is the social dimension of luxury the most important dimension in luxury real estate perception? Is location a luxury? To answer this question, we will develop a method in 3 steps. First, based on advertisement data, we will evaluate the proportion of properties that are posted on luxury ad sites in each municipality. This will determine if the municipality is perceived as luxury location by the real estate agent or not. Second, we will implement a mass appraisal model following XGBoost algorithm from an exhaustive transaction database (DV3F) to estimate the value of the whole stock of dwellings in Île-de-France (from land declaration database). Finally, we will develop spatial econometrics models (GWR, SDM) based on the estimated database from land declaration, to determine which factors determines what is a luxury housing. We run these models including each municipality defined as luxury by real estate agents. The implications of this work are two-fold: first, it will bring the conceptual model of Bachmann, Walsh, and Hammes (2019) in the poor luxury real estate literature: is luxury real estate only a question of social construct? This conceptual model will be modified according to the results. Second, it raises questions about growing spatial segmentation and “entre-soi” dynamics. |
| Keywords: | Entre-soi; Luxury housing; Spatial econometrics; Urban disparity |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_159&r=ure |
| By: | Bertoni, Marco (University of Padova and IZA-Bonn); Heller-Sahlgren, Gabriel (Research Institute of Industrial Economics (IFN)); Silva, Olma (LSE and IZA-Bonn) |
| Abstract: | We investigate the impact of attending a free school in England – that is, a new start-up school that enjoys considerable autonomy while remaining in the state sector. We analyse the effects of two secondary free schools with different teaching philosophies: one follows a ‘no excuse’ paradigm, while the other one adopts a ‘classical liberal’, knowledge-rich approach. We establish causal effects exploiting admission lotteries and a distance-based regression discontinuity design. Both schools have a strong positive impact on student test scores on average. However, we also find heterogeneous effects: the ‘no excuse’ school mostly benefits boys, while the ‘classical liberal’ school mainly benefits White British and non-poor students. Both schools similarly reduce student absences and school mobility. Peer quality, teacher characteristics, and inspectorate ratings cannot fully explain the schools’ effectiveness. Instead, a quantitative text analysis of the schools’ ‘vision and ethos’ statements shows that the ‘no excuse’ and ‘classical liberal’ philosophies adopted by the two free schools clearly set them apart from the counterfactual schools where rejected applicants enrol, and likely explain their heterogeneous effects. |
| Keywords: | School autonomy; Quasi-markets; Free schools; Achievement |
| JEL: | I21 I24 I28 |
| Date: | 2023–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1476&r=ure |
| By: | Pengpeng Li; Sili Liu; Qiulin Ke; Sonia Freire Trigo |
| Abstract: | The research builds on the knowledge that under high-rocketing housing prices in many attractive cities with favorable em-ployment prospects, some talented workers are forced to leave due to poor housing affordability. To retain them, some municipalities adopt housing subsidies for targeted talents as a policy instrument. In China, such policies are named as Talent Housing (TH) policies. However, due to complex effects (i.e., positive, negative, composite) of housing prices on talent flow, along with impacts of cities’ socio-economic conditions on talent flow, policymakers are uncertain about whether TH policies will have expected outcomes. Therefore, the research aims to explore the impact of TH policies on talent agglomeration, along with its relevant determinants in terms of cities’ economic conditions (e.g., work opportunities and housing affordability). Generalized Method of Moment (GMM) and Finite Distributed Lag Model (FDLM) were applied to analyze the causality between talented human capital and TH subsidies of 70 Chinese cities. The findings show that TH subsidies are conducive for talent agglomeration, in particular to home-buying subsidies which have a 1-year lag positive effect. Nevertheless, TH subsidies might be less effective in cities with poor work opportunities and high housing affordability. The research provides insights into the economic impacts of TH policies on talent flow and helps policymakers from different cities design more suitable TH policies for sustainable development. |
| Keywords: | Gmm; Housing subsidy; Talent agglomeration; Talent Housing |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_346&r=ure |
| By: | Thomas Lefebvre; Barbara Castillo Rico |
| Abstract: | The "Climate and Resilience" law aims to accelerate the ecological transition of French society and economy. All sectors are concerned: agriculture and transport, among others, but also housing. More specifically, this law targets landlords of the most energy-consuming properties by banning them from the rental market. In France, according to the regulation, more than 5.2 million dwellings are considered inefficient and won’t be allowed to be rented in 2028. The first rental restriction of this law came into effect in January 2023: the worst housing in terms of energy performance cannot be rented anymore. This represents around 500, 000 housing units. In this paper we assess the impact of this new regulation on the french real estate market. Do landlords renovate their housing or do they prefer to sell? Do their behavior have an impact on sales and rental prices ? What is the perception of the owners about these regulatory changes in favor of energy transition in housing? Based on the observation of 5 million listings published on the french leading professional real estate portal between 2018 and 2022 (SeLoger.com) and a survey that collected 5, 000 responses related to the perception of the impact of the law on the decision process to sell or buy a property, our results suggest that energy consumption of the dwelling has started to become a valuation and selection criteria to buy and sell on the french real estate market. Our results show a significant increase in the number of sales of low-energy homes since 2021: 19.2% of the properties listed on the market for sale in 2022 are not energy efficient versus 11% in 2021. In addition, dwellings with high energy consumption are listed on the market with a selling price of -3.9% less expensive than an equivalent property with better energy efficiency. Therefore, there is a significant difference in the evolution regarding the energy efficiency score. In France, prices of properties with higher energy efficiency have increased on average by +3.7% since July 2021, which is two times less than the other properties (+7%) |
| Keywords: | Housing Policy; Sustainable Real Estate; Valuation |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_195&r=ure |
| By: | Nikolas Müller; Kwast Dennis |
| Abstract: | Nowadays, in “past"-pandemic-times, visitor frequencies in inner cities and high streets have returned to pre-pandemic levels. Nevertheless, retailers' sales have not recovered to the same extent. The aim of the paper is to clarify whether a so-called “social transformation” of the inner city is taking place and whether this is part of the reason. For this purpose, based on Mass-Mobile-Data in a comparative GIS-Multi-Layer-Approach (Mix of Methods), different analyses were conducted in the downtown areas of major German cities (i.e. Berlin, Hamburg, Köln, Frankfurt, and Leipzig) in the years 2019 (Pre-COVID) and 2022 ("Past"-pandemic). The results show: visitor frequencies have regenerated, the temporal use of high streets has changed slightly, but the catchment area has changed massively. Accordingly, both the user groups and especially the retail-relevant purchasing power have changed seriously. In the city of Frankfurt, the shift in the social milieu has led to an average reduction in retail-relevant purchasing power of more than 500 euros per person in three years. The social transformation of the inner city is thus in full motion, affecting retail business models and hence the business models of asset managers with real estate in inner cities. Consequently, the results call for a stronger focus on user groups, their demands on the inner city, and a new definition of the inner city or its purpose respectively. The results are also relevant for policymakers and urban planners, as they make hitherto unmeasurable changes transparent. |
| Keywords: | Mass-mobile-data; Retail-relevant purchasing power; Urban and regional analysis; Urban Development |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_94&r=ure |
| By: | Chien-Ling Lo |
| Abstract: | Commercial real estate regeneration markets are analysed in the context of the debate over the role of institutional investors in financing regeneration development as a primary source of the sustainable funding. This research aims to explore whether urban policy fosters economic sustainability of the regeneration real estate market by strengthening the scope of its maturity, resilience and competitiveness with the influence of municipal planning instruments and political leadership through regeneration policies. The research design of this research is embedded in the structure of the conceptual framework on market sustainability. Two sets of the property indices constructed constitute the rental values of the regeneration properties and standing properties in Manchester city centre respectively during the period from 1967 to 2017. This approach aims to evaluate the performance of the regeneration property market against the performance of the mainstream property market in Manchester as well as to assess the quantitative movements of the market performance indicating the level of economic sustainability. The evidence of rental value movement between 1984 and 2017 shows that the regeneration market has become more mature particularly after 1998 with steadily stable trends. Within the timeframe of the three property cycles, it can be observed that the rental value of regeneration properties after 1997 became more closely aligned with that of non-regeneration properties indicating a sign of market maturity. The evidence indicates that the regeneration office market is less economically resilient due to the higher possibility of being exposed to greater investment risk. The regeneration office market in Manchester city centre demonstrates a positive stature in achieving economic sustainability enhanced by Manchester being an economically resilient city able to compete for investment. |
| Keywords: | Economic Sustainability; institutional investor; Office Market; Urban Regeneration |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_171&r=ure |
| By: | Alejandro Fernandez |
| Abstract: | Improving the energy efficiency of the built environment is a critical element of the UK’s strategy to achieve net-zero emissions by 2050. Enhanced standards in new homes and subsidies for renovation are among the measures put in place to encourage energy efficiency. On the one hand, a literature stream has focused on the heterogeneity of energy savings across different household types and building typologies to assess renovations. On the other hand, the hedonic pricing literature has delved on the existence of energy premiums across different housing markets. While the distributional impact of different fabric interventions has recently become a focus of research, this has not been the case for increases in house prices across housing quality and age groups. It is in this context that this paper poses the question: “How do increases in house prices affect consumption across age groups, tenure and dwelling energy performance?” To assess the relationship between house prices and consumption, this paper draws from a body of economic research dealing with the Marginal Propensity to Consume (MPC) out of house price increases. This paper builds on a combination of two micro cross-sectional datasets: the English Housing Survey (EHS), including data on the housing stock and its inhabitants, and the Living Costs and Food Survey (LCFS), which holds detailed financial and consumption information. We find that older households, more likely to own outright and live in less energy-efficient houses, have increased their consumption in line with rises in house prices. On the contrary, middle-aged groups, more likely to rent and own with a mortgage, have not increased their consumption in line with house prices. The youngest group does seem to increase their consumption with raises in housing prices but less than the oldest one. Noticeably, improvements in the built environment related to energy efficiency drive consumption down since improved fabric standards result in increased housing costs that are compensated by reduced consumption. Based on the heterogeneity of consumption responses to house price increases, this paper contends that an energy transition model that subsidises older households to retrofit their homes is regressive by strengthening the wealth of older households while penalising younger ones with less housing equity and larger housing needs. The distributions of housing wealth and marginal propensity to consume are particularly relevant as grants and subsidised loans dependent on fabric conditions are likely to have heterogeneous effects over generations reinforcing the concentration of assets among older households. |
| Keywords: | Age Groups; Consumption; Energy Efficiency; House Prices |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_68&r=ure |
| By: | Moritz Stang; Bastian Krämer; Marcelo Del Cajias; Wolfgang Schäfers |
| Abstract: | Besides its structural and economic characteristics, the location of a property is probably one of the most important determinants of its underlying value. In contrast to property valuations, there are hardly any approaches to date that evaluate the quality of a real estate location in an automated manner. The reasons are the complexity, the number of interactions and the non-linearities underlying the quality specifications of a certain location. These are difficult to represent by traditional econometric models. The aim of this paper is thus to present a newly developed data-driven approach for the assessments of real estate locations. By combining a state-of-the-art machine learning algorithm and the local post-hoc model agnostic method of Shapley Additive Explanations, the newly developed SHAP location score is able to account for empirical complexities, especially for non-linearities and higher order interactions. The SHAP location score represents an intuitive and flexible approach based on econometric modeling techniques and the basic assumptions of hedonic pricing theory. The approach can be applied post-hoc to any common machine learning method and can be flexibly adapted to the respective needs. This constitutes a significant extension of traditional urban models and offers many advantages for a wide range of real estate players. |
| Keywords: | Automated Location Valuation Model; Explainable AI; Location Analytics; Machine Learning |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_139&r=ure |
| By: | Laetitia Tuffery; Soukaina Anougmar; Basak Bayramoglu; Carmen Cantuarias; Maia David |
| Abstract: | Cities concentrate almost 60% of the world's population. Worldwide, urban populations are highly vulnerable to climate change. Urban green spaces and related ecosystem services help increase inhabitants’ quality of life and well-being and mitigate the impacts of climate change. However, in terms of urban planning, green spaces can raise a dilemma by reducing the space available for vehicle traffic and parking. In this paper, we focus on green spaces around the tram network in the Lyon metropolitan area, France, to assess the social demand for the greening of the urban transport infrastructure, using a Discrete Choice Experiment (DCE). The survey was conducted in 2022 with 500 inhabitants. Our results show that respondents are in favor of urban greening due to its capacity to reduce air temperature and increase biodiversity. However, they are, on average, against a high reduction of the available space for traffic and parking, because of urban greening development. Outcomes also demonstrate a high heterogeneity in inhabitants’ preferences partly driven by their sensitivity and commitment to the environment. |
| Keywords: | Choice experiment; Transport infrastructure; urban greening; Urban traffic |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_67&r=ure |
| By: | Gülnaz engül Güne; Sinan Güne; Daniel Oeter |
| Abstract: | The demand for housing in Turkey has been increasing in recent years to meet the need for shelter as well as an investment good. Especially during Covid-19, housing prices continued to increase in many regions of Turkey, similar to the development in many other countries around the globe. The Turkish government conducted various measures to counter the severe economic consequences of Covid-19, and several of these measures have had direct and indirect impacts on the housing markets, too. This study analyzes the effect of selected economic measures applied during the pandemic on Turkey's housing prices. Due to data availability, this study focuses on the main housing markets in Turkey: Istanbul, Ankara, and Izmir, which account for more than one quarter of the Turkish population. The conducted economic measures and other macroeconomic factors are assessed over the Central Bank Money Supply, Consumer Price Index, Unemployment Rate, and Housing Loan Interest Rate variables to analyze potential effects. Hereby, residential real estate prices are evaluated on a regional level to show the potential diverging impacts of the respective measures on local housing markets. Descriptive statistics and stationarity levels of the variables used in the study are examined with the Dickey-Fuller (ADF) test. In the study, a Vector Auto-Regressive (VAR) model is used to analyze the various variables’ impact on housing markets in Tukey. While already several studies analyzed the impact of economic measures on house prices in different countries, this study uniquely assesses the impact of such measures in Turkey during Covid-19. The study also evaluates the impact of multiple macroeconomic factors on house prices, providing a more comprehensive understanding of the factors that cause fluctuations in house prices in Turkey. The study can guide policy decisions and investment strategies by providing insights into the impact of economic measures and other macroeconomic factors on house prices. |
| Keywords: | COVID-19; House Prices; Residential Real Estate; Vector-autoregressive models |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_237&r=ure |
| By: | Alexandra Verlhiac; Marie Breuille; Julie Le Gallo; Sébastien Houde |
| Abstract: | In a world subject to a higher frequency of extreme climatic events, migration appears as one adaptation strategy for households, so that demand for housing will change. While a large literature analyzes cross-country migration mechanisms linked to climatic events in developing countries, or focuses on specific case-study events in both developed or developing countries, the literature remains scarce with respect to the impact of climate risks on household location decisions and internal migration. In this context, the goal of this paper is to determine the relationship between climate shocks and intra-country residential migration, for the case of France. We propose a response function that includes the nature of the climatic shocks combined with local geographical characteristics. Our empirical strategy exploits short-term extreme climatic events, such as floods or large fires, as information shocks that impact households’ beliefs. These shocks, combined with household-level panel data pertaining to housing search behavior, allows us to estimate how extreme climatic events (ECEs) shift household location decisions. In particular, we exploit a large database containing housing search for a specific household before and after a climate event on real estate online platforms in France. Specifically, we first use a database of listings consultations on SeLoger platform containing more than 16 Millions search observations. Second, we use a database of real estate estimations on the Meilleurs Agents platform containing more than 100 000 search observations. We combine these datasets with a dataset of climate-related extreme events and official risk maps. Both of these datasets are spatially disaggregated at the municipality level for the Metropolitan France. |
| Keywords: | Climate; Migration; Online Platform; real estate |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_253&r=ure |
| By: | Jonas Rau |
| Abstract: | The city centres in Europe and Germany are in the process of structural change, which is questioning the current real estate value-creation concepts, especially the mono-functional focus on retail. Structural change is caused by megatrends such as social, technological and ecological change. The corona pandemic has further pushed and consolidated the change in citizens' habits. The change manifests itself, among others, in lower footfall and declining turnover. Vacancies are already on the rise in small and medium-sized towns as well as on the outskirts of large city centres. For owners of inner-city properties, it is existential to adapt the inner-city properties to the new environmental situation. Failure means further increases in vacancy rates, falling rents, trading-down effects and the permanent decline of the capital tied up in city centres. The current discourse sees numerous fields of action in the inner cities. At the core is the need to enrich and balance the diversity of functions. More housing, urban production, strengthening of communication and integration Climate adaptation/climate protection, to name a few. The aim is to increase resilience through numerous functions and uses, to make the inner city more exciting and attractive for citizens and generally to reverse the threat of trading-down effects. Currently, the perspective and interests of property owners are rather secondary in the debate. Accordingly, there is hardly any evidence of concrete mixes of uses in the properties that guarantee an equal balance of interests between the benefits of the citizens and the capital preservation of the owners. A representative survey of 1, 000 citizens will be used to fill this research void. The resulting database is intended to help owners of large-scale retail properties, in particular, those with a strategic and long-term approach, to find sustainable concepts for follow-up use that ensure the long-term preservation of the value of the capital tied up in the properties by providing needs-oriented real estate solutions that make a visit to the city centre an experience for citizens, while at the same time ensuring that the transformation is economically feasible and the long-term preservation of the value of the capital bound up in the properties. Since structural change is an international phenomenon, the insights gained in the survey of German citizens can also open up development perspectives for properties in other European countries. The results of the survey define the room for action for real estate owners and thus lay the foundation for the evidence-based and sustainable transformation of inner cities that brings added value for all stakeholders involved. |
| Keywords: | Capital preservation; Mixed-Use re-development; Survey; Transformation City Centre |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_132&r=ure |
| By: | Youjin Hahn (Yonsei University); Hyuncheol Bryant Kim (Hong Kong University of Science and Technology); Hee-Seung Yang (Yonsei University) |
| Abstract: | This study examines the one-year impacts of in-person schooling on high school students' outcomes during the COVID-19 pandemic in South Korea. Using high-quality administrative data and a student survey, the study finds that in-person schooling does not significantly affect average test scores, but it reduces educational inequality and enhances noncognitive traits such as class participation, school satisfaction, and career aspirations. The study also reveals that the changes in test score distributions are driven by boys rather than girls. The findings highlight the importance of addressing educational inequality in policy responses to recover from learning loss caused by the pandemic. |
| Keywords: | Schooling modes; in-person schooling; school closure; COVID-19 pandemic; education inequality |
| JEL: | I21 I28 J24 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:yon:wpaper:2023rwp-223&r=ure |
| By: | Yadigâr Gökçe imek; Serhat Basdogan; Ilir Nase |
| Abstract: | Virtual real estate investments are becoming an increasingly important investment instrument in terms of investing in virtual land assets in the Metaverse. In addition, when investment decisions in the Metaverse are analysed, it is observed that there are highly similar market movements with the real world. This situation can provide insight into real-world prediction when using traditional methods such as multiple linear regression (MLR) on very large databases. This paper analyses the correlation between the two worlds by obtaining statistical results using data mining algorithms.Purpose of the study is to identify the potential high-yielding ones among Istanbul neighborhoods with analyzes made for virtual lands, which are seen as a virtual real estate investment instrument, and to determine the relationship between them by comparative analysis of virtual land values and real estate values. In this context, Metaverse platform (overthereality.ai) where the world map is divided into virtual lands, was accessed with open access software to get the data of virtual lands traded in primary and secondary markets within the borders of Istanbul. At the same time, square meters prices data of residential units for sale were also accessed from the real estate site (sahibinden.com) with the highest sales volume in Turkey, and these data were converted into land values and statistically analyzed, together with virtual land values, specifically for Istanbul neighborhoods. |
| Keywords: | Correlation Analysis; land valuation; Virtual Land; Virtual Real Estate |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_305&r=ure |
| By: | Shelton Weeks; Daniel Huerta; Tm Allen; Jesse Wright |
| Abstract: | Triple-net lease (NNN) agreements require tenants to pay all property operating expenses in addition to rent and utilities. These expenses include real estate taxes, insurance, and maintenance, significantly relieving the landlord of a property’s operating burden. Given that much of the property’s operating responsibility rests with the tenant, NNN leased properties collect comparatively lower rents than those with conventional leases or other net leases that corresponds to the lower amount of risk assumed by the property owner. Extant literature provides little evidence on the impact of holding triple-net leased property portfolios on Real Estate Investment Trusts (REIT) performance. In this paper, we examine the relative performance of Equity REITs holding NNN leased property portfolios and the relationship between REIT NNN property portfolios and firm operational efficiency, profitability, and value. We believe this examination is relevant given the nature of REITs as pass-through identities designed to pay out 90% or more of earnings as dividends where the goal of the REIT manager is to efficiently and profitably operate real estate assets. We explore whether the strategy of holding NNN portfolios improves or sacrifices REIT performance and shareholder value. |
| Keywords: | Real Estate Investment Trust; Reit Performance; REIT Portfolio Management; Triple Net Lease |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_353&r=ure |
| By: | Dick Oosthuizen |
| Abstract: | Before the Great Recession, residential institutional investors predominantly bought and rented out condos, but then they increased their market share of rental houses from 17 percent in 2001 to 28 percent in 2018. Along with this change, rental survey data show that the annual house operating-cost premium of institutional investors relative to homeowners fell from 44 percent in 2001 to 28 percent in 2015. To measure how these reduced costs affected the housing bust of 2007–2011, I build a heterogeneous agent model of the housing market featuring corporate investors and two types of dwellings: condos and houses. A transition experiment intended to replicate the Great Recession yields three results. First, house prices would have fallen by 1.6 percentage points more without the corporate-cost reduction. Second, the corporate-cost reduction can explain the fall in the homeownership rate. Third, the cost reduction produced a welfare gain of 0.4 percent for homeowners and 0.6 percent for individual investors. |
| Keywords: | general equilibrium; housing; investors; housing prices; homeownership |
| JEL: | D10 D31 E21 E30 E51 |
| Date: | 2023–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:97147&r=ure |
| By: | Saiz, Albert (Massachusetts Institute of Technology) |
| Abstract: | Housing prices are rising faster than incomes in many areas of the world, reducing well-being and engendering social discontent. Passivity by municipal and national governments is no longer an option. In this essay, I will describe the tradeoffs between different housing policy objectives of governments and the public. I suggest that policy goals should be made explicit, and their tradeoffs acknowledged. Due to the durable impact of real estate development, housing and land-use policies should seek broad inter-partisan consensus. To avoid pernicious general equilibrium effects and because of limited public resources, subsidies ought to be carefully targeted. I will describe the thirty major economic strategies underpinning housing policies worldwide and discuss their main advantages and caveats. Effective housing programs must skillfully deploy a combination of these basic economic strategies, as I will illustrate through several global case studies. Programs should be carefully designed to anticipate behavioral responses from individuals, firms, governments, and markets. Unideological and professional implementation is critical for their success. |
| Keywords: | real earnings, housing and family income, social policy |
| JEL: | H53 I38 R21 R31 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izapps:pp203&r=ure |
| By: | Victoria Gregory; Samuel Jordan-Wood; Julian Kozlowski; Hannah Rubinton |
| Abstract: | Using an economic model, researchers find that racial wage disparities, the amenity externality and racial barriers to moving could help explain the Black-white gap in college attainment. |
| Keywords: | residential segregation; educational attainment; racial disparities |
| Date: | 2023–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:97238&r=ure |
| By: | Heidi Falkenbach; Harjunen Oskari; Erik Mäkelä; Elias Oikarinen |
| Abstract: | We study how the announced future land rent increases capitalize into leasehold prices. We investigate a case, where the City of Helsinki, Finland, announced over 15-fold rent increases for the ground lease contracts on residential land that were expiring in the near future. Our empirical strategy is based on a difference-in-differences design where we compare transactions of the leasehold units with those of near-identical freehold apartments. We find that before the first rent increase episode homebuyers were inattentive to their expected long-run housing expenses, which resulted in significant overpricing of leasehold apartments relative to corresponding freehold units. The results further suggest that housing market participants react on announced contract renewals and appear to learn the importance of the ground ownership feature when they are exposed to more and more information regarding rental contract updates. Our paper provides new causal evidence on the capitalization of information on indirect and nontransparent financial flows in the long run. Our novel finding is that market participants learn the new policy regime and the market prices (only) gradually reflect the information on future financial flows. The market reaction to new information is not immediate or absent but sluggish, which is in line with a simple model of information diffusion. |
| Keywords: | capitalization; land leases; long-run discount rates |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_220&r=ure |
| By: | Kevin L. Kliesen |
| Abstract: | Two measures of housing construction have tended to peak before U.S. recessions after 1970, but the time from those peaks to a recession’s onset has differed. |
| Keywords: | housing construction; recessions |
| Date: | 2022–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:94933&r=ure |
| By: | Reema Bali; Anurita Bhatnagar |
| Abstract: | In India, there are several challenges facing the real estate education sector. One of the biggest challenges is the lack of standardization in the industry. There is no formal accreditation process for real estate education programs, which means that the quality of education can vary greatly from one institution to another. Another, challenge is the lack of practical training opportunities for students. Many real estate education programs(Bhatia & Reema, 2019) in India focus heavily on theoretical concepts, rather than providing hands-on training that would help students develop the skills they need to succeed in the industry. Despite these challenges, there are also many opportunities for growth and development in the Indian real estate education sector. One opportunity is the increasing demand for real estate professionals in India, as the country's economy continues to grow and develop.(Real Estate Demand in India Will Boom in 2023, n.d.) Additionally, the Indian government has recently announced plans to invest in the development of affordable housing(PMAY (U), n.d.), which could create new opportunities for real estate professionals(Indian Real Estate Industry: Overview, Market Size, Growth, Investments...IBEF, n.d.). Also, with the advent of technology and internet penetration, the online education system is getting more popular, and it is expected to play a vital role in providing education to people from remote areas, who otherwise have limited access to physical education centres.(10 Reasons to Study Real Estate! - Naveen Jindal School of Management | The University of Texas at Dallas, n.d.) This paper shall look at the various universities offering a master level degree in real estate. Further, looking at the various accreditations offered and their credibility and suitability for the Indian market. Being a professional course, requiring direct approach with this dynamic industry; how outreach(McGrath & Geurts, 2022) would play an important role in curriculum development(Real Estate Continuing Education Research Paper - 501 Words | Cram, n.d.). A comparative(Oloyede et al., 2017) with other jurisdictions(Kim & Pior, 2018) that offer real estate programs shall also be undertaken to highlight the best practices(Full Article: The Future of Real Estate Education: A Multi-Faceted Perspective, n.d.) that may be inculcated in India. |
| Keywords: | Higher Education Institutions (HEI); Industry led Programs; Master's Degree; Real Estate Education |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_80&r=ure |
| By: | Peter Parlasca Fries |
| Abstract: | The Covid Crisis affected nearly all European countries. In contrast, house prices continued their upswing without any exception across European Countries. However, in line with the economic recovery coming to an end from summer 2022, signals for the end of the house price bubbles could be seen as well. How did the housing markets in European countries develop during the Covid crisis and how were they affected by various shocks (Ukraine war, supply shortages and increasing inflation) the following year? First results of the analysis underline that house prices went up all over Europe, but turnover figures (number of sales, volume) started to decline already in the first half of 2022. The development of house prices over the last decade since 2013 differed widely between European countries and much more than the development of economic activity within European countries. Comparing the developments since 2008, it is worth mentioning that GDP recovery following the GFC and the Covid Crisis allowed nearly all countries to reach their pre-crisis level until 2022 before the Ukraine war related effects hit again the European economies from summer 2022. In contrast to the economic developments, housing markets in various European countries did not yet reach the pre-crisis level until 2022 although the upswing of the housing markets started in Europe around 2014 even without being hampered by the Covid crisis. In a small number of European countries house prices doubled between 2008 and 2022. The available data on quarterly house sales (number of transactions and volume) seems to be a promising data source to develop projections of the housing market in many European countries. |
| Keywords: | Covid Crisis; European economic development; housing market projections; Housing Prices |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_223&r=ure |
| By: | Mathieu Obertelli |
| Abstract: | The financialization of the Parisian office real estate market has led office users to become tenants, leaving the propriety to some big foreign investors. The latter need to reduce as much as possible the vacancy rate of the building in order to maximize their rent and to obtain an added value on the sale. However, the pandemic with the spread of telecommuting has reminded tenants that offices must meet the needs of their employees who are the end users (Gupta.2022) in order to bring them back to the office for the sake of integration and employee retention. The location is a significant criterion to attract new talents (Florida and Adler.2019). The study of Business Location Decisions has highlighted the role of quality of life as a Business Location Factor (Glaser and Bardo.1991; Love and Crompton.1999), especially for firms of the so-called “New Economy”, whose main input is the knowledge instead of natural resources. Studying office location strategies inevitably requires an interest in the people who occupy them. This study aims to assess which location factors are crucial for workers through a survey analysis. Whereas most of academic papers are based on business decision-makers at a regional scale to measure the quality of life, we want to study workers ‘preferences within the Parisian area at the neighbourhood scale in order to work on more specific local factors. To do so, we collect data from a representative sample of workers from Ile-de-France. In a first part, we want to assess the impact of the daily living concerns (public transports, safety, cost of living) and the quality of life (green spaces, visual image, atmosphere, entertainments, and environmental quality) on the satisfaction of employees about the neighbourhood where they work. Do amenities matter as much as firms think? In a second part, we ask them about their remote work habits because they could induce a mediating effect on their location preferences. Can we suppose than remote workers and non-remote workers have different expectations about public transport accessibility or entertainments? In a last part, we ask them about their sociodemographic profile. We know that workers ‘preferences vary between the age, the family situation, or the level of qualification. Finally, do amenities matter as much as firms think? Maybe the best place for workers is in fact the one closest to their house… |
| Keywords: | Office Real Estate; Quality of Life; Remote work; workers |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_232&r=ure |
| By: | Damien Nouvel |
| Abstract: | It is evident that the COVID-19 pandemic has accelerated the adoption and popularity of proptech. Remote work, social distancing, and the need for contactless transactions have driven the need for enhanced solutions that enable virtual property tours, online lease signing, and other digital services. Such global growth of the proptech sector has been mirrored by accelerated funding campaigns, increased number of proptech startups, and unprecedent interest from real estate developers as well as policy makers. A specific shift has been observed in the networks of the proptech around the world. Industry associations, accelerators, incubators, co-working spaces, and other forms of collaboration and networking have played a decisive role in taking the proptech into the next level. However, this networking intensifying efforts were not only attributed to the crisis as a trigger, but also to well-developed international-local high-tech innovation linkages, active innovation personal networks, and, in most cases, regional public and private readiness to adopt the new changes. In this study, we adopt a complexity-evolutionary perspective to illustrate the evolution of the proptech networks before and after the Covid-19 pandemic. Such approach is allowing us to assess the emergence of a cluster of proptech through studying the linkages between real estate actors, high-tech actors and startups and the funding organisations. Notions such as small events, windows of opportunities, local-international pipelines, regional readiness and path dependency are employed to draw a quasi-full picture of the proptech ecosystem in the last five years and its perspective for the near future. The study is taking the French proptech market as a case study. Our paper introduces the theoretical approach and the preliminary results of this study. |
| Keywords: | Complex adaptive systems; innovation networks; proptech; real estate digitalisation |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_233&r=ure |
| By: | Ewelina Nawrocka |
| Abstract: | Determining the relationship between the economy, the banking sector and the real estate market is a problem that is of interest to researchers around the world. Since the beginning of the 20th century, scholars have been formulating theories about the cyclicality of the real estate market. Burns [1935] was one of the first researchers to analyze the causes of their formation. Other scientists analyzed the lengths of the individual phases. It has been proven that the cycles are influenced by, among others, the availability of financing for housing investments, population changes, problems in the construction industry. An important role is also played by government housing programmes, which stabilize the level of investment in the economy. In indirectly the programmes stabilize the labor market also. One of the methods of studying the changes taking place in the real estate market is to analyze the parameters on the clock face of the real estate market. The main purpose of the presentation is to determine the current place on the clock face of the real estate market in which Poland is located. The study analyzes economic indicators of the country and parameters of the construction market as well as information from the banking sector. As a result of a long-term analysis of parameters that may affect disruptions in the business cycle and the real estate market cycle, in the presentation will indicate the moment of transition to the next phase on the clock face. It is a kind of continuation of an important thread of research started many years ago by other researchers around the world. To identify the course of the cycle, an analysis of real estate price dynamics and an analysis of the volatility of macroeconomic and market factors were used in Poland. |
| Keywords: | National economy, Property cycles |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_320&r=ure |
| By: | Léonard Moulin; Mara Soncin |
| Abstract: | The learning loss caused by the COVID-19 pandemic on students’ outcomes is likely to have lasting effects on which evidence is lacking. Using a differencein-differences design through a triple difference estimator, we identify the evolution of the COVID-19 pandemic’s impact on Italian students’ test scores in the two years following the COVID-19 outbreak. Our findings indicate a persistently negative effect on mathematics and reading scores for grade 5 and grade 8 students in 2021–22, two years after the pandemic began, despite a statistically significant recovery compared to the previous school year. Our analysis highlights the pandemic’s disproportionate impact on girls, leading to a decrease in their academic performance and an intensification of gender-based inequalities (with the exception of grade 8 reading). Our results also show that the pandemic had a greater adverse impact on the academic achievement of students who experienced more prolonged classroom closures. |
| Keywords: | COVID-19, learning loss, school closure, gender differences, Italy, POPULATION SCOLAIRE / SCHOOL POPULATION, EPIDEMIE / EPIDEMICS, SCOLARITE / SCHOOLING, ITALIE / ITALY, DIFFERENCE ENTRE SEXES / SEX DIFFERENTIALS |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:idg:wpaper:fvwbhosbll62ri5ntztc&r=ure |
| By: | Pierre M. Picard (DEM, Université du Luxembourg); Harris Selod (The World Bank) |
| Abstract: | We propose an urban land use model to discuss the conversion of customary agricultural land to formal and informal residential land in a developing country city. Because customary land sales are insecure, migrant buyers face a risk of eviction, which affects land markets in non-trivial ways. Both tenure risk and asymmetric information cause the city extent and population to be too small. Empirical tests of the model for Bamako, Mali, confirm the existence of tenure insecurity and information asymmetry in the primary but not in the secondary land market, consistently with information revelation after initial sales by customary holders. |
| Keywords: | Urbanization, Land Markets, Property Rights, Land Tenure Formalization, Market Failure. |
| JEL: | O12 R14 P14 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:23-09&r=ure |
| By: | Barbara Broadway (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne); Anna Zhu (RMIT University, Melbourne) |
| Abstract: | We investigate if geography matters to the success of an exogenous change in a country's institutional settings. We examine the causal impact from one of the largest welfare reforms in Australia, which used the levers of reducing Income Support payments and increasing participation requirements, to reduce welfare dependency and to improve employment outcomes among single mothers. Using a new administrative dataset, which captures the full universe of single mothers targeted by this reform, along with information from five other data sources, we find significant heterogeneity in the reform effects by geography. The reform did not have the intended effect in geographic regions that were relatively disadvantaged. The effect of the reform for all the local labour market in Australia is estimated with Regression Discontinuity models and correlated with the characteristics of the local labour market region. Our aim is to ask: is there spatial heterogeneity in the local reform effects? And if so, can we find patterns that describe how the reform’s effectiveness varies with local conditions such as employment opportunities, access to services, and community characteristics? |
| Keywords: | welfare reform, earnings, disadvantage, spatial heterogeneity |
| JEL: | I38 R12 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2023n13&r=ure |
| By: | Shahrokni, Nazanin; Sofos, Spyros |
| Abstract: | The development of Kuwait City’s urban agglomeration – home to 3 million inhabitants, 71.2 percent of the country’s population – is connected to the country’s discovery of oil in 1938. As citizenship became the key to benefiting from Kuwait’s oil wealth, a complex system of differential inclusion and exclusion was devised to identify those entitled and the type and extent of entitlement. Kuwait’s oil wealth presented the emirate’s rulers with the resources to turn Kuwait’s citadel into a modern administrative and commercial centre, but the new city plans largely failed to have an equalising effect. Instead, the existing hierarchical character and divides of Kuwait were grafted onto its urban space. The urban sprawl that replaced Kuwait’s citadel was divided into districts whose boundaries reinforced status, class, ethnic and gender divides. Housing and mobility in the city, leisure and work all became entangled in a complex web of exclusion and inclusion. This paper draws on the findings of a year-long project on the ecologies of inclusion and exclusion in urban Kuwait and its impact on inclusive and effective urban governance. |
| JEL: | R14 J01 |
| Date: | 2023–10–23 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120519&r=ure |
| By: | Tihana Škrinjarić (Bank of England, United Kingdom Author-Name2: Maja Sabol Author-Name2-First: Maja Author-Name2-Last: Sabol Author-Email2: maja.sabol@europarl.europa.eu Author-Workplace-Name2: European Parliament) |
| Abstract: | House price dynamics are particularly interesting for macroprudential policymakers due to their effects on financial stability and future macroeconomic performance. As the main goal of macroprudential policy is to mitigate systemic risks, it is essential to monitor the central tendency of future house price growth dynamics and focus on downside risks and their possible materialization. This research, the first of its kind applied to the Croatian housing market, tries to identify and capture the main drivers of house price-at-risk (HaR) for the period between 2002Q1 and 2022Q3. It also predicts downside risks to future real house price growth. Based on the quantile regression results, we conclude that downside risks on housing market have increased in recent years. The approach is found to be insightful to monitor the uncertainty of the forecasts and decomposing the drivers to house price forecasting. Our results have implications for a range of policies that influence housing markets. |
| Keywords: | financial stability, macroprudential policy, quantile regression, growth at risk, house price dynamics, downside risks |
| JEL: | E32 E44 E58 G01 G28 C22 |
| Date: | 2023–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:hnb:wpaper:73&r=ure |
| By: | David Autor; David Dorn; Gordon H. Hanson |
| Abstract: | Previous research finds that the greater geographic mobility of foreign than native-born workers following economic shocks helps to facilitate local labor market adjustment to shifting regional economic conditions. We examine the role that immigration may have played in enabling U.S. commuting zones to respond to manufacturing job loss caused by import competition from China. Although population headcounts of the foreign-born fell by more than those of the native-born in regions exposed to the China trade shock, the overall contribution of immigration to labor market adjustment in this episode was small. Because most U.S. immigrants arrived in the country after manufacturing regions were already mature, few took up jobs in industries that would later see increased import penetration from China. The foreign-born share of the working-age population in regions with high trade exposure was only three-fifths that in regions with low exposure. Immigration thus appears more likely to aid adjustment to cyclical shocks, in which job loss occurs in regions that had recent booms in hiring, rather than facilitating adjustment to secular regional decline, in which hiring booms occurred in the more distant past. |
| Keywords: | geographic mobility, foreign-born, native-born, economic shocks, China, immigration, labor |
| Date: | 2023–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:cep:poidwp:074&r=ure |
| By: | Cihan Ceviz; Kerem Yavuz Arslanli |
| Abstract: | Data storage and IT equipment housing is demanded rapidly over the last decade parallel to improving the significance of big data. Data Centers (DCs) have supplied service to this demand for decades by being real estate assets built up in strategic locations with housed IT equipment. In parallel with this demand, data center investments have boomed around the globe in the last decade. To develop the supplied service quality of the data center investments, a reputable private organization Uptime Institute provide certification to measure how well a data center as a real estate can be designed and developed by classifying it in 4 classes of tiers. Data center tiers are a classification system, ascending 1, 2, 3, and 4 show the commercial reputation and operational efficiency of data center investments. Data center tiers are awarded after the measurement of operational redundancy in general. The measurement includes performance criteria such as design, infrastructure efficiency, energy efficiency, operational cost structure and location. The research paper focuses on location criteria and their correlative significance on the other performance criteria in general and narrows down into the problem statement; “Many data centers in Turkey are developed by mainly wrong location selection and, it results in operational performance and TIER III and less certified investments”. The research paper aims to test whether a model can be invented for location selection and the best operational use correlation of data center investments. It analyzes Central & Eastern Europe data center real estate market data and selected data centers in a particular methodology for a benchmark to understand how location affects the operational use of a Data Center in Turkey. In the methodology, the research paper explores past data center location decision models like DEMATEL Method, Fuzzy DEMATEL Method and EDAS Method and their results on both energy efficiency and cost of the facility. Furthermore, the research paper utilizes this method to benchmark TIER IV certified data centers using the same fiber optic cable network and data infrastructure. This continuing research provides a map for Turkey data center investor's correlation between selecting the right location and the operational best use of a data center as a real estate. |
| Keywords: | Data Center; Location Selection Criteria; Operational Best Use; Tier Classification System |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_298&r=ure |
| By: | Benjamin Thomas Osafo |
| Abstract: | Housing has been considered as one of the basic needs of households. However, statistics indicate that households in Ghana are experiencing acute housing problems. The study sought to investigate the activities of four main stakeholders of households, mortgage institutions, estate developers and Government land sector agencies, in the housing industry to present sustainable recommendations to mitigate the problems. The principle of Demand and Supply, housing affordability theories and literature on housing in Ghana formed the basis of the literature review. The case study methodology was adopted, and the New Juaben Municipality of Ghana was used as the study area. Data from face-to-face interviews, focus group discussions and documents (secondary data) were analyzed to identify the findings of the study. It was realized that the prices of houses were high, households’ incomes were low, financial institutions experienced high interest and foreign exchange rate risks. Furthermore, there were unavailability and high cost of land and building materials whilst land title registration services were partially automated. It was therefore recommended that houses should be supplied with varying prices, employers should subsidize prices of houses for households, foreign exchange and policy rates should be stabilized. Furthermore, developers should have land banks and use locally produced quality building materials and the government fully automate the land registration services. |
| Keywords: | Estate Developers; Ghana; Households; housing; Mortgage |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:afres2023-019&r=ure |
| By: | Theresa Ukam Edet |
| Abstract: | Incorporating data analytics into real estate investment decisions can provide investors with vital tools and insights to help them manage the intricacies of the real estate market, maximise profits and align their investments with sustainability and ethical considerations. This study investigates how Lagos state valuers leverage data and data analysis approaches to make investment decisions for their clients. The first objective of the research is to identify the appraisal process used by Valuers in their feasibility and viability assessment. The second objective is to determine the type of data collected by Valuers for the preparation of feasibility and viability reports. The third is to identify the significant challenges faced by Valuers in obtaining the required data and how they overcome these challenges in the hope of giving the client the best possible service. Fourth is to examine the role of data analytics in real estate investment decisions, which includes data analysis stages, prospects, and suggested ways Vauers can implement a data-driven culture. Findings from this Study have shown that Real Estate professionals rely on data regarding investment decisions. However, many valuers have yet to explore data analytics or incorporate a data-driven culture in their organisations. |
| Keywords: | Data; Data analytics; Feasibility and Viability appraisals; Investment Decision |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:afres2023-046&r=ure |
| By: | Berke Bayhoca; Kerem Yavuz Arslanli |
| Abstract: | Security tokens, based on blockchain technology, are rapidly becoming widespread as new-era investment products. Real estate tokens have long stood out as one of the most popular of these tokens. The underlying reason is that the real estate industry is associated with low liquidity and lengthy and expensive transaction processes. Tokenization platforms and real estate market experts believe tokenization will solve many problems in the traditional market. The products that will emerge through tokenizing real estate assets can increase liquidity by removing high entry barriers in the market and creating a secondary market where intermediaries are minimized. Theoretically, this technology, which can provide secure access to a broad market in a short time, can also mean a new platform for both debt and capital increase. This thesis study examines the tokenization of real estate assets with both quantitative and qualitative approaches. Within the scope of the study, the structure of real estate tokens as financial products were examined, and their similarities and differences with traditional products were discussed. Moreover, an empirical analysis has been made by comparing the financial performance of real estate tokens actively traded in the secondary market with specific reference indices. The results of this study showed that real estate tokens have higher returns than selected market portfolios but have higher risks than traditional market products. |
| Keywords: | blockchain; Portfolio Management; Real Estate Tokens; tokenization |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_290&r=ure |
| By: | Samuel Jordan-Wood; Julian Kozlowski |
| Abstract: | Mortgage rates have risen sharply, but the impact on the typical borrower can be better gauged if one considers the average rate rather than the current rate. |
| Keywords: | mortgage rates |
| Date: | 2023–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:96305&r=ure |
| By: | Xudong An; Sadok El Ghoul; Omrane Guedhami; Ross Levine; Raluca Roman |
| Abstract: | Using comprehensive mortgage-level data, we discover that the social capital of the community in which households live positively influences the likelihood of the approval of their mortgage applications, the terms of approved mortgages, and the subsequent performance of those mortgages. The results hold when conditioning on extensive household and community characteristics and a battery of fixed effects, including individual effects, data permitting, and when employing instrumental variables and propensity score matching to address identification and selection concerns. Concerning causal mechanisms, evidence suggests that social capital enhances lender screening and monitoring of borrowers and increases the social costs to borrowers of defaulting on their debts. |
| Keywords: | consumer credit; mortgage approval; screening; loan performance; social capital; interpersonal connections; trust; banks; fintech |
| JEL: | G01 G28 D10 D12 E58 |
| Date: | 2023–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:97148&r=ure |
| By: | Michal Hebdzynski |
| Abstract: | The COVID-19 pandemic that started in early 2020 and the refugee crisis related to the Russian invasion on Ukraine in February 2022 have been the source of shocks to the housing rental market. It has been particularly visible in Poland, where the market reacted to the changing environment through multiple channels, out of which two are the areas of interest of this paper. First of those is the rent-setting factors channel as it may be hypothesized that in response to those shocks the preferences of market participants have changed. Secondly, the drastic changes of demand and its structure resulted in an unprecedented variation of rent levels. Based on the hedonic model of the market of Poznan (Poland) it has been documented, that the pandemic influenced revealed preferences of market participants towards certain housing characteristics, such as the number of rooms, proximity to green areas and proximity to city center, leaving the price elasticity of presence of balcony unchanged. As for the impact of the refugee crisis on the rent-setting factors, it has been shown that it has affected the tenants’ attitudes towards apartment furnishing, its type of heating and the type of building in which the apartment is located. Moreover, the quality-adjusted hedonic rent indices have been obtained using OLS, quantile regression and Spatial Autoregressive Model (SAR). Their goal has been to quantify the rent change of the market in years 2019-2023 but also to discuss the sensitivity of the rent indices to the rent-setting factors changes. The analysis has been conducted on the unique (in terms of the number of housing characteristics and their completeness) dataset of rental listings. However, in order to prove the validity of the results the comparison of some transactional and listings data has been provided. The early results show that the coefficients of the models built on the possessed dataset of apartment listings go in line with the ones obtained on the transactional data. Thus, running the analysis of the rent-setting factors on the listing data may be considered justified. |
| Keywords: | Covid-19 pandemic; refugees; Rental market; Revealed preferences |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_316&r=ure |
| By: | Minyi Hu; Nils Kok; Juan Palacios |
| Abstract: | Customer satisfaction is a leading indicator of their demand and the companies' performance, however, limited evidence research on how the satisfaction of tenant-customers of commercial offices, could contribute economic value to the building. The tenant survey provides us with the opportunity to research this question. Using the Kingsley tenant survey dataset collected from 2, 965 U.S. office buildings and 55, 951 corporate tenants, matched to the building characteristics data and financial performance data from the Costar database, and green certificate data from USGBC, we estimate the impact of tenant satisfaction on tenant's following leasing decision and the performance of the building. We document that 1 point higher overall satisfaction (on a scale of 1 to 5) is positively related to 8.36% higher willingness to renew the lease, 11.03% higher building recommendation, and 19.40% lower probability of actually moving out. In addition, analysis of the financial performance found that after controlling for the current period performance, 10% higher building level average overall satisfaction is related to 0.17% higher growth of gross rents, 0.66% higher growth effective gross rent, and 2.32% lower growth of vacancy rate. Besides, this beneficial effect is more significant for those tenants who have already stayed in the building for a long time, for the properties that are located in the submarkets with high occupancy rates, and for properties that have lower initial satisfaction levels. Further analysis using the mediation model documents that putting in sustainability and better property management company could improvement to tenants’ satisfaction and the performance of the building. Our research provides a shred of evidence for the financial implication of good customer relationship management in the real estate sector. |
| Keywords: | Commercial building performance; Property Management; Tenant decision; Tenant Satisfaction |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_143&r=ure |
| By: | - |
| Abstract: | This document is based on the statements and presentations delivered at the thirty-first General Assembly of the Forum of Ministers and High-Level Authorities on Housing and Urbanism in Latin America and the Caribbean (MINURVI), held on 5 and 6 December 2022 at ECLAC headquarters in Santiago. At the meeting, authorities, leaders and experts in housing and urban planning met with the aim of positioning habitat and housing as pillars for achieving sustainable urban development in the region and for working towards cities that are more just, inclusive and resilient. The General Assembly explored ideas related to the challenges, progress made and opportunities for creating cities that promote human rights and the right to the city, economic reactivation and the reduction of inequality and environmental impacts, as well as for rethinking the role of the State in achieving those objectives. The event was structured around four main themes: (i) the role of the State in the production of housing and urban development; (ii) funding and the land and housing markets; (iii) gender mainstreaming and care systems in inclusive cities; and (iv) the importance of sustainability and climate change in cities. These issues were explored in depth through panel sessions, presentations and exchanges at which authorities, technical experts, academics and representatives of civil society all participated. A ministerial dialogue was held on the second day of the meeting, during which the country that will chair MINURVI and the members who are to serve on its 2023 Executive Committee were elected. The Declaration of Santiago —the outcome document of the thirty-first General Assembly, containing the commitments assumed in pursuit of the region’s sustainable urban development— was also signed on that occasion. |
| Date: | 2023–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col043:68668&r=ure |
| By: | Rong Wang; Anupam Nanda; Eero Valtonen |
| Abstract: | Over the last few decades, there has been a consistent upward trend in global real estate investment, driven by global economic reforms and the emergence of an integrated global financial market. Previous studies have identified diversification benefits and the possibility of obtaining higher returns on investments as rationales for international real estate investment. However, there is still a paucity of literature examining the macroeconomic and institutional determinants of foreign real estate investment. In this paper, we use panel data models to determine the impacts of a range of those factors, such as infrastructure development, financial development, exchange rate risks, and interest rate on foreign real estate investment. The linkages between international volatility, institutional governance development, property regulations, and foreign real estate investment are also considered. Drawing on information on real estate sector transaction activities over 2003-2021 from the S&P Capital IQ Pro database and employing a range of econometric methods, the analysis finds robust economic growth, a strong domestic financial system, higher transparency of global real estate and a strong governance regime boost higher foreign capital flows into real estate sectors. However, different dimensions of governance appear to have varying levels of influence. These results are robust to a number of alternative specifications and common estimation biases. |
| Keywords: | Cross-border flows; Panel Data Analysis; Real Estate Investment |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_285&r=ure |
| By: | Kyeong Hee Seo; Kyung-Min Kim |
| Abstract: | The recovery pattern before and after the impact of the COVID-19 pandemic differs by urban commercial districts. Meanwhile, Cox et al.(2004)1 revealed intergenerational linkages between parents and children in consumption behavior. For example, millennials and Gen Zs attract attention as urban consumers, having their parent generation as open and wealthy baby boomers and Gen Xs. Since these generational characteristics are rising as an essential factor in retail, empirical research is needed. The change in the characteristics of the commercial district consumption population demands a change in perception of the population and the regional factors considered in studies about the vitality of commercial districts. Therefore, this study aims to determine how consuming population and regional characteristics change a commercial district's stagnation and recovery pattern. To this end, we identified the type of resilience in commercial districts through DTW(Dynamic Time Warping) clustering, a machine learning method based on quarterly sales and floating population changes in 1, 306 commercial districts in Seoul for 5.5 years from 2017 to the first half of 2022. Furthermore, it analyzes the leading causes that affect each type of commercial district's resilience with multinomial logistic regression. In detail, the demographic traits consist of the characteristics of visitors, residents, and workers around commercial districts. This detailed approach to the population factor was possible due to the government-driven data accumulation over the past five years, including origin-destination data based on mobile phone signal data. The analysis shows that the size of newly developed housing and offices near the commercial district, access to public transportation, and households with three or more members, including baby boomers, had a significant impact. Considering that the child generation of the baby boomers is the millennials, this study is meaningful in that it demonstrates the mutual consumption impact between the millennial-baby boomers and the Z-X generation at the urban commercial level. The results of this study can contribute to the revitalization of urban commercial districts and consumer trends of stakeholders such as government agencies, retail developers, and investors in situations where low birth rates, aging, and changes in generation characteristics affect urban vitality. 1. Waldkirch, A., Ng, S., & Cox, D. (2004). Intergenerational linkages in consumption behavior. Journal of Human Resources, 39(2), 355-381. |
| Keywords: | DTW-Clustering; intergenerational linkages in retail consumption; Millennials, Baby-boomer, Gen Z, Gen X; retail resilience |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_144&r=ure |
| By: | Syaikhu Usman |
| Keywords: | decentralization, regional governments, regional autonomy, good governance |
| URL: | http://d.repec.org/n?u=RePEc:agg:wpaper:415&r=ure |
| By: | Wang, Ruoyu; Cao, Mengqiu; Yao, Yao; Wu, Wenjie |
| Abstract: | Awareness is growing that the uneven provision of street urban green space (UGS) may lead to environmental injustice. Most previous studies have focused on the over-head perspective of street UGS provision. However, only a few studies have evaluated the disparities in visible street UGS provision. While a plethora of studies have focused on a single dimension of visible UGS provision, no previous studies have developed a framework for systematically evaluating visible street UGS provision. This study therefore proposes a novel 4 ‘A′ framework, and aims to assess different dimensions (namely: availability; accessibility; attractiveness; and aesthetics) of visible street UGS provision, using Beijing as a case study. It investigates inequities in different dimensions of visible street UGS provision. In addition, it also explores the extent to which a neighbourhood's economic level is associated with different dimensions of visible street UGS. Our results show that, in Beijing, the four chosen dimensions of visible street UGS provision significantly differ in terms of spatial distribution and the association between them. Furthermore, we found that the value of the Gini index and Moran's I index for attractiveness and aesthetics are higher than those for availability and accessibility, which indicates a more unequal distribution of visible street UGS from a qualitative perspective. We also found that a community's economic level is positively associated with attractiveness and aesthetics, while no evidence was found to support the claim that the economic level of a community associated with availability and accessibility. This study suggests that visible street UGS provision is unequal; therefore, urban planning policy should pay more attention to disparities in visible street UGS provision, particularly in urban areas. |
| Keywords: | 4 ‘A′ framework; Beijing; disparity; machine learning; street view data; visible street urban green space; 41971194 and 41801306 ; 52278085 |
| JEL: | C1 |
| Date: | 2022–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117694&r=ure |
| By: | Mayrano Andrianus Sitinjak (Badan Pusat Statistik Kabupaten Empat Lawang); Diny Ghuzini (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada) |
| Abstract: | This study examines the spatial distribution of youth unemployment rates (15–24 years old) and the impact of wages and industrial composition on these rates in Indonesian provinces. The persistently high youth unemployment rate and uneven distribution of youth labor across provinces have motivated this research. Data from 2010 to 2018, sourced from Sakernas and other BPS publications, were analyzed for 33 Indonesian provinces. This study employed Moran's index and spatial panel data regression methods. The findings reveal a clustered spatial pattern of youth unemployment rates among provinces. The best-fitting model, identified as the Spatial Durbin Model (SDM) with random effects, indicates that increasing the minimum wage ratio significantly contributes to higher youth unemployment rates. Conversely, higher real wages lead to a slight decrease, whereas greater industrial sector absorption reduces youth unemployment. However, increased absorption in the service sector amplifies youth unemployment. |
| Keywords: | Youth Unemployment, Minimum Wages, Industrial Mix, Spatial Panel |
| JEL: | C23 J30 J46 |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:gme:wpaper:202308008&r=ure |
| By: | Juan M. Sanchez; Olivia Wilkinson |
| Abstract: | U.S. households with preexisting mortgages have loan payments that are fixed. Wage growth means they spend a smaller share of income on housing. |
| Keywords: | mortgages |
| Date: | 2022–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:94830&r=ure |
| By: | Abukar Warsame |
| Abstract: | Housing affordability remains a pressing challenge in numerous African countries due to rapid urbanization, population growth, and economic disparities. This study explores the multifaceted nature of affordability by considering variables such as GDP per capita, inflation rate, slum population percentage, female-headed households, unemployment rate, lending interest rate, maximum loan-to-value ratio, cheapest house price and size, and typical monthly rental. By combining and weighing these variables, a comprehensive affordability measurement is obtained. Utilizing Principal Component Analysis (PCA), the dataset's dimensionality is reduced, revealing key variables contributing to affordability. Our preliminary results demonstrate that distinct components, encompassing socio-economic development, inequality, urbanization, labor markets, housing conditions, construction processes, and economic and business environment, influence affordability differently across countries. Understanding these factors enables policymakers to design targeted interventions such as income redistribution, slum improvement initiatives, gender-specific housing programs, employment generation measures, interest rate regulations, and housing finance accessibility policies. The findings from PCA, combined with examinations of the Gini coefficient, Human Development Index, and World Bank DBI quality index, facilitate evidence-based decision-making and the development of effective policies to enhance housing affordability and socio-economic conditions. |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:afres2023-033&r=ure |
| By: | Siq Huang; Anupam Nanda; Eero Valtonen |
| Abstract: | Research on ESG and real estate suggests that the industry can contribute to mitigating climate change by improving the “sustainability” of their property portfolio while also gaining better financial performance. However, the challenges of sustainable property investments (SPI) still exist due to the diffused causal chain between the high initial costs of investment and the resultant benefits in the long run. The aim of this study is to identify and model the impacts of SPI on the credit rating of Real Estate Investment Trusts (REITs), providing insight into the motivating factors that influence investors’ decisions to invest in properties with sustainability characters. The study was based on the panel data of 84 US equity REITs over 2014–2021. The regression analysis demonstrates a significant positive correlation between the sustainability of REITs’ property portfolio and their credit ratings, and that the advantages of SPI overshadow saving operational expenditures alone. The sub-period analysis also indicates that the marginal benefits of SPI may diminish over time, which, however, needs the support of further research. For robustness check, the type-year average of portfolio sustainability is used as an instrument variable in a two-stage model, and the results support previous findings. In short, this study supports the outlook that ESG-related investments are crucial parts of rating agencies’ assessment of REITs’ creditworthiness, and can enhance corporate financial performance through lowering firms’ debt financing costs. |
| Keywords: | Credit Rating; REITs; sustainability |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_282&r=ure |
| By: | Louis Johner; Zhaklin Krayushkina; Martin Hoesli |
| Abstract: | Major unexpected events have substantial effects on the volatility of listed real estate (LRE) investments, the most recent ones being the Covid-19 pandemic and the Ukraine conflict. Societal changes, such as the rise of e-commerce and remote working, are also affecting how we use buildings and hence how LRE prices react to shocks, these impacts often differing across property sectors and countries. Although listed and direct real estate have common economic drivers, it is well known that LRE reacts more sharply to shocks than direct real estate; this frequently being considered a drawback of LRE by investors. However, little research has investigated whether the higher volatility and liquidity of LRE can lead to higher risk-adjusted returns stemming from tactical portfolio rebalancing. This paper seeks to understand better how the volatility of European LRE across sectors and countries has changed over the period 2007-2022 and how this information can be incorporated in a dynamic portfolio framework. We investigate the impacts of rule-based tactical rebalancing on the performance and composition of a listed real estate portfolio. Finally, we examine the effects of such reallocation on the composition of a mixed-asset porfolio containing LRE. Specifically, this paper attempts to investigate the following research questions: How has the volatility of European LRE across sectors and countries changed over time? Can rule-based tactical rebalancing exploit changes in volatility to generate excess risk-adjusted returns? What are the implications of LRE tactical rebalancing on the composition of a mixed-asset portfolio? |
| Keywords: | Listed Real Estate; Mixed-asset Portfolio; Tactical rebalancing; Volatility |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_151&r=ure |
| By: | Ying Hui Chiang |
| Abstract: | Homeownership is considered a measure of financial stability and security in many countries, such as in Taiwan. Constrained by the current social and economic environment of high housing prices and low wages, young adults have a higher threshold for entering the housing market than their parents, resulting in generational inequality in housing opportunities. Past studies have found that young adults whose parents have higher levels of education and income are more likely to own their own homes. In Taiwan, owning a house is the best tool for accumulating wealth. Therefore, if parents have a house and resources, they are more likely to support their children to buy a house. That is, if parents have a house, the proportion of their children who own a house should be higher than those whose parents do not have a house. This article focuses on children born between 1980-1990 (a total of 3, 932, 350 people). According to administrative data statistics, parents had a house in that year (2004), and now (in 2020, that is, the 30-40-year-old group) they or their spouses have/have no house compared with those whose parents had no home. This study also found that in Taiwan, like in other countries, the younger generation has difficulty buying a house. The increase in the rate of parental home ownership has squeezed the housing opportunities of young and middle-aged adults, which may also lead to a slowdown in class mobility. The results show that parents who own a house have a higher chance of their children owning their own house. At the same time, children of high-income parents have a higher proportion of home ownership than children of low-income parents, regardless of whether the parents own a house. It can be seen that the children of the previous generation with higher incomes, especially those whose parents own houses, are more likely to hold houses. Therefore, the government should think about how to weaken the function of housing as a wealth accumulation tool to weaken the relationship between high housing prices and class mobility. |
| Keywords: | Home Ownership; Housing Policy; parent background; Young Adults |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_158&r=ure |
| By: | Raghu Dharmapuri Tirumala |
| Abstract: | Historically, sustainability in real estate has centered on green buildings and environmentally friendly structures. However, these efforts have often been confined to individual buildings, overlooking the broader ecosystem. This research paper expands the focus, investigating how various stakeholders in the real estate sector, including developers, financiers, suppliers, and advisors, are addressing environmental challenges. Utilizing the Global Reporting Initiative (GRI) as a framework, the paper analyzes publicly available company disclosures. The results highlight a strong emphasis on emission and energy-related indicators, while other vital aspects such as biodiversity, supplier assessment, and materials are often neglected. The paper also explores regional variations and alignment with global standards, providing insights into the current state of sustainability reporting within the industry. By identifying areas for improvement and underscoring the importance of a multi-stakeholder approach, this study contributes valuable perspectives to the ongoing dialogue on environmental stewardship in real estate and offers actionable recommendations for enhancing transparency and sustainability practices. |
| Keywords: | Australia; Environmental disclosure; India; real estate; Stakeholders; Transparency |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:afres2023-047&r=ure |
| By: | Samson Agbato; Bioye Aluko; Tunde Oladokun; Ayodele Adegoke; Olalekan Aboderin |
| Abstract: | This study is aimed at investigating the non-economic factors that affect land affordability, particularly in developing countries. To examine these factors, data was collected from 333 and 95 individuals who own residential plots at Redemption City and Ikosi Residential Scheme respectively. The findings of the study showed that different non- economic factors played a significant role in each of the two areas. In Redemption City, the important non-economic criteria included safety, comfort, quality management, proximity to markets, public transportation, and healthcare. On the other hand, the non-economic factors that were found to be significant in Ikosi Residential Scheme were proximity to public transportation, safety and comfort, a lack of environmental problems, and income levels. Overall, this study sheds light on the importance of considering non-economic factors when it comes to land affordability, particularly in developing countries. By doing so, private and public partnerships can be encouraged to work together to reduce the housing deficit in these areas. Additionally, the findings of the study can inform the formulation and revision of land policies that would benefit not only specific groups but all members of the community. |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:afres2023-032&r=ure |
| By: | Timothy Halliday; Rachel Inafuku; Lester Lusher; Aureo de Paula |
| Abstract: | This study pairs variation stemming from volcanic eruptions from Kilauea with the census of Hawai'i's public schools student test scores to estimate the impact of particulates and sulphur dioxide on student performance. We leverage spatial correlations in pollution in conjunction with proximity to Kilauea and wind direction to construct predictions of pollution exposure at each school. We precisely estimate that increased particulate pollution leads to a small but statistically significant drop in average test scores. Then, utilizing Hawai'i's rich diversity across schools in baseline exposure, we estimate sharp nonlinearities schools with higher baseline levels of pollution experience larger decreases in test scores than schools with less pollution exposure on average. At levels of particulate pollution higher than six micrograms per cubic meter (I?g/m3), we estimate that a one standard deviation increase in PM2.5 leads to a decline in test scores of 1.1 percent of a standard deviation. Lastly, we find that within schools the drop in test scores is concentrated among economically disadvantaged students. The effects of PM2.5 on student test scores are larger by a factor of ten for the poorest pupils. Similarly, the effects of SO2 are larger by a factor of six. We demonstrate that poor air quality disproportionately impacts the human capital accumulation of economically disadvantaged children. |
| Keywords: | VOG, particulates, test scores, kriging, environmental justice |
| Date: | 2022–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:cep:poidwp:051&r=ure |
| By: | Miroslav Despotovic; David Koch; Matthias Zeppelzauer; Stumpe Eric; Simon Thaler; Wolfgang A. Brunauer |
| Abstract: | Today's data analysis techniques allow for the combination of multiple different data modalities, which should also allow for more accurate feature extraction. In our research, we leverage the capacity of machine learning tools to build a model with shared neural network layers and multiple inputs that is more flexible and allows for more robust extraction of real estate attributes. The most common form of data for a real estate assessment is data structured in tables, such as size or year of construction, but also descriptions of the real estate. Other data that can also be easily found in real estate listings are visual data such as exterior and interior photographs. In the presented approach, we fuse textual information and variable quantity of interior photographs per condominium for condition assessment and investigate how multiple modalities can be efficiently combined using deep learning. We train and test the performance of a pre-trained convolutional neural network fine-tuned with variable quantity of interior views of selected condominiums. In parallel, we train and test the pre-trained bidirectional encoder-transformer language model using text data from the same observations. Finally, we build an experimental neural network model using both modalities for the same task and compare the performance with the models trained with a single modality. Our initial assumption that coupling both networks would lead to worse performance compared to fine-tuned single-modal models was not confirmed, as we achieved the better performance with the proposed multi-modal model despite the impairment of a very unbalanced dataset. The novelty here is the multimodal modeling of variable quantity of real estate-related attributes in a unified model that integrates all available modalities and can thus use their complementary information. With the presented approach, we intend to extend the existing information extraction methods for automated valuation models, which in turn would contribute to a higher transparency of valuation procedures and thus to more reliable statements about the value of real estate. |
| Keywords: | Avm; Computer vision; Hedonic Pricing; NLP |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_22&r=ure |
| By: | Bertram Steininger; Michael Truebestein; Lucas Casillo |
| Abstract: | Private and institutional investors alike use real estate investments in their multi-asset portfolios to reduce their total risks by the positive characteristics such as low volatility or correlation with other asset classes. However, investments in direct or private real estate also bear drawbacks such as high transaction costs, long transaction time, large volumes, low liquidity, or the need for real estate market expertise. Thus, the financial industry has developed various investment vehicles (open-end or closed-end funds, REITs, stocks, etc.) to lower the market entrance barriers for investors with lower investment volume and knowledge. One recent engineered product is a real estate token, a digital form of assets that is equipped with value, rights, and obligations. It enables the fractionalization of properties into small investment volumes using the Distributed Ledger Technology (DLT), and the trading, as well as the rent distribution, are organized in an automated process with Smart Contracts. Currently, the possibility to tokenize properties directly is limited so most projects use the indirect way through legal entities. This paper explains the most used concepts, recent developments, regulations, and a first market analysis for the tokenized properties in the USA and Europe (Switzerland and Germany). The development on the primary and secondary markets is demonstrated after the tokens have been issued through Security Token Offerings (STOs), using empirical data points such as returns, standard deviation, skewness, kurtosis, and correlation. The goal is to compare the tokens with other asset classes such as stocks, bonds, and direct real estate. |
| Keywords: | blockchain; real estate; Smart Contracts; tokenization |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_176&r=ure |
| By: | Bernhard Funk |
| Abstract: | Traditional economic theory applied to the field of real estate asumes a real estate cycle with regular patterns, especially up and down cycles. A certain minimum of economic stability is enabling factor for the business model of most real estate enterprises. Disruptive events hovever may challenge the paradigm of cycles that can be anticipated. This may imply a halt to economic activity. The current depression in transaction activity in Europe underlines reaction to uncertainty when investors are unsure about the „new normal“, hesitant to pursue transactions. Recent example of disruptive events is the war in Europe. Uncertainties and disruptive events in real estate markets trigger the desire of investors to allocate funds to other markets that offer the stability that is missed in domestic markets. For many decades US real estate markets have been considered a hedge against risks in domestic markets for various investor groups. Examples include outflows from countries in Middle and South America, for instance channelled into Florida real estate. Recent years also saw capital inflows from Asia into major US metropolitan markets. The current situation has reinforced the attention of German fund managers to look for geopolitical risks and other uncertainties when finetuning global asset allocations. The paper looks at the motives and decision-making process for German real estate funds in deciding on US investment allocations. Key questions are: Which factors drive decision-making when allocating capital to US real estate markets? Which factors are expected to impact the future volume of cross-border transactions of German real estate funds into US markets? |
| Keywords: | Cross border investments; Geographical allocation; Real Estate Funds; US real estate marktes |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_203&r=ure |
| By: | Lee Elliot Major; Andrew Eyles; Esme Lillywhite |
| Abstract: | New research reveals that school attendance in the UK is still well below the pre-pandemic norm. Andrew Eyles, Esme Lillywhite and Lee Elliot Major outline the scale of continued absenteeism among pupils across the country and the difficulty of tackling the problem. |
| Keywords: | schools, covid-19, social mobility |
| Date: | 2023–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:666&r=ure |
| By: | Ainoa Aparicio Fenoll (University of Turin/Collegio Carlo Alberto); Nadia Campaniello (University of Turin/Collegio Carlo Alberto); Ignacio Monzón (University of Turin/Collegio Carlo Alberto) |
| Abstract: | Do parents take into account their children’s ability when deciding on their education? If so, are parents’ perceptions accurate? We study this by analyzing a key educational decision. Parents choose whether their children start elementary school one year early. Do they select high ability kids to start early? We propose a novel methodology to identify the sign and strength of selection into early starting. We find robust evidence of positive selection. Had they started regularly, early starters would have obtained test scores 0.2 standard deviations higher than the average student. Our simple methodology applies to RDD settings in general |
| Keywords: | School starting age; Selection; Children; Education; Treatment effects |
| JEL: | I24 C21 J13 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:aoz:wpaper:286&r=ure |
| By: | Asep Suryahadi; Prio Sambodho |
| Keywords: | teacher absenteeism |
| URL: | http://d.repec.org/n?u=RePEc:agg:wpaper:283&r=ure |
| By: | Mantas Dirma; Jaunius Karmelavičius |
| Abstract: | Despite having introduced borrower-based measures (BBM), Lithuania's housing and mortgage markets were booming during the low-interest-rate period, casting doubt on the macroprudential toolkit's ability to contain excessive mortgage growth. This paper assesses the adequacy of BBMs’ parametrization in Lithuania. We do so by building a novel lifetime expected credit loss framework that is founded on actual loan-level default and household income data. We show that the BBM package effectively contains mortgage credit risk and that housing loans are more resilient to stress than in the preregulatory era. Our BBM limit calibration exercise reveals that (1) in the low-rate environment, income-based measures could have been tighter; and (2) borrowers taking out secondary mortgages rightly are and should be required to pledge a higher down payment. |
| Keywords: | macroprudential policy; borrower-based measures; LTV; mortgage credit risk; lifetime expected loss; probability of default. |
| Date: | 2023–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/227&r=ure |
| By: | Cevat Giray Aksoy; Jose Maria Barrero; Nicholas Bloom; Steven J. Davis; Mathias Dolls; Pablo Zarate |
| Abstract: | We quantify the commute time savings associated with work from home, drawing on data for 27 countries. The average daily time savings when working from home is 72 minutes in our sample. We estimate that work from home saved about two hours per week per worker in 2021 and 2022, and that it will save about one hour per week per worker after the pandemic ends. Workers allocate 40 percent of their time savings to their jobs and about 11 percent to caregiving activities. People living with children allocate more of their time savings to caregiving. |
| Keywords: | time savings, work from home, data, pandemic, caregiving |
| Date: | 2023–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:cep:poidwp:071&r=ure |
| By: | Koech Cheruiyot; Lungile Gamede |
| Abstract: | Big data is noted as being useful in various business markets, including the real estate market. By making use of data analytics to obtain actionable information significant from analyzing significant quantity of data, businesses may have an advantage over rivals in the market. This paper examines the current applications of big data analytics, its potential uses, as well as potential barriers to its use in the South African real estate market. A qualitative approach was adopted to administer semi-structured interviews to big data analytics specialists in the South African real estate market. Initial results show that Proptech market is still in its infancy in general and there is limited use of big data analytics in the South African real estate market in particular. However, there are benefits to using the technology, such as more efficient and effective customer service. Major challenges include the fact that the South African market is not ready to use it since there is no clarity or lack of knowledge that correlate the levels of investments needed and the accruing benefits. Challenges related to storage systems and costs and the scarcity of skills for technologies to support big data and big data analytics also prevail. |
| Keywords: | big data analytics; Proptech market; Real Estate Market; South Africa |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:afres2023-023&r=ure |
| By: | Jeongseob Kim; Jiwoong Jeong |
| Abstract: | This study explores the importance of sensory experiences of visitors to commercial streets and their role in vitalizing commercial districts, based on big data analysis using review data of social media. With the growth of online commerce, the vitality and function of commercial streets has been declining. According to sensory marketing theory, it is essential to develop commercial spaces that allow consumers to have positive experiences directly with their five senses, which is difficult to replace with online commerce, in order to attract more visitors. Urban designers and scholars have also emphasized the importance of sensory experiences in urban open spaces to revitalize commercial areas. Visitors evaluate their experiences with their five senses - sight, hearing, touch, smell, and taste - in offline commercial streets or stores, and unique and enjoyable sensory experiences can lead them to stay longer or revisit the places. Special visit experiences are often shared on social media, and these reviews contribute to attracting new visitors. Therefore, this study examines whether stores with positive sensory experiences on the commercial street attract more visitors. To explore the relationship between sensory experiences and commercial revitalization, this study analyzes Google review data for a place of interest (POI) in Seoul between 2017 and 2021 using text-mining techniques. Based on a dictionary-based classification of five sense-related experiences from the review data, the sensory experiences of each POI are quantified. Then, the sensory experiences of each POI are aggregated into those of a commercial block. Finally, the connection between floating population and sensory experiences at a commercial block level is analyzed using a spatial econometric model. The findings of this study could provide a new perspective in understanding the characteristics of urban commercial districts and be the basis for developing revitalization strategies of commercial areas. |
| Keywords: | commercial revitalization; Retail; sensory experience; social media data |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_138&r=ure |
| By: | Marcel Byron Onditi |
| Abstract: | Property taxes, notably land rent, are crucial revenue sources particularly in third-world countries. Land rent is determined by factors like location and market forces and is governed in Kenya by the Land Act No. 6 of 2012. Manual valuation methods have led to inconsistencies, inefficiencies, and corruption. Many countries have adopted the Automated Valuation System (AVS), which lowers costs, enhances efficiency, ensures transparency, and boosts revenue collection. However, the adoption of AVS in developing nations remains largely uncharted in literature. The study seeks to fill this gap by scrutinizing various Automated Valuation Models (AVMs) for land rent taxation in Nairobi City County using data from the years 2020 to 2023. These datasets l existing land rents, property values, zoning ordinances, and public facilities’ locations. The research will use a case study of Nairobi City County, utilizing a cross-sectional quantitative research design and stratified random sampling considering the 20 zones in Nairobi as strata. The study will employ tools like ArcGIS Pro and R Statistic, the research will utilize techniques from multiple regression to Artificial Neural Networks to create prediction models for land rent. After assessing each model's accuracy, the most effective will be recommended for Kenya's use. |
| Keywords: | Automated Valuation Models; Land Rent Taxation; Prediction Models |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:afres2023-044&r=ure |
| By: | Prosper Turimubumwe |
| Abstract: | This paper aims to answer why affordable housing programmes implemented to assist low-income earners in selected countries (Burundi, Ethiopia, and South Africa) have not benefited low-income earners from owning housing in these programmes. The paper used a mixed research approach in data collection and analysis. The desk review, questionnaire, key informant interview (KII), and observation were used to collect primary and secondary data. Content and descriptive statistics were applied to analyse data. The findings show apart from South Africa where low-income earners can afford a house in affordable housing programmes, Burundi and Ethiopia programmes have served civil servants who are not low-income earners. Generally, Civil servants belong to medium- and high-income earners and can finance their housing using private financing. Public programmes for affordable housing have been benefiting those who were not in urgent need of housing. This has left low-income earners to live in horrible and miserable houses. The paper recommends that developing countries should well-define and determine who is low-income and prioritize low-income earners in public affordable housing programmes. |
| Keywords: | Affordable Housing; Burundi; Developing Countries; housing; Low-income |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:afres2023-013&r=ure |
| By: | Siyan Liu; Laura D. Quinby |
| Abstract: | Housing wealth is an important resource for economic security in retirement. Yet, Black households approaching retirement have only a fraction of the housing wealth held by White households. One reason is that Black households are less likely to own homes in the first place. A second reason, which is the focus of this paper, is that when they do own homes, they see lower wealth accumulation than White homeowners. This study uses the Panel Study of Income Dynamics to determine what share of the age-55 housing wealth gap is due to disadvantage at the time of first purchase and what share is due to slower appreciation of subsequent housing wealth. |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:crr:crrwps:wp2023-03&r=ure |
| By: | Imran Rasul; Pedro Souza; Aureo de Paula |
| Abstract: | Social interactions determine many economic behaviors, but information on social ties does not exist in most publicly available and widely used datasets. We present results on the identification of social networks from observational panel data that contains no information on social ties between agents. In the context of a canonical social interactions model, we provide sufficient conditions under which the social interactions matrix, endogenous and exogenous social effect parameters are all globally identified. While this result is relevant across different estimation strategies, we then describe how high-dimensional estimation techniques can be used to estimate the interactions model based on the Adaptive Elastic Net Generalized Method of Moments. We employ the method to study tax competition across US states. We find that the identified social interactions matrix implies tax competition differs markedly from the common assumption of competition between geographically neighboring states, providing further insights for the long-standing debate on the relative roles of factor mobility and yardstick competition in driving tax setting behavior across states. Most broadly, our identification and application show that the analysis of social interactions can be extended to economic realms where no network data exists. JEL Codes: C31, D85, H71. |
| Date: | 2023–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:cep:poidwp:081&r=ure |
| By: | Sun, He; Cabras, Stefano |
| Abstract: | In In burgeoning urban landscapes, the proliferation of the populace necessitates swift and accurate urban transit solutions to cater to the citizens' commuting requirements. A pivotal aspect of fostering optimized traffic management and ensuring resilient responses to unanticipated passenger surges is precisely forecasting hourly occupancy levels within urban subway systems. This study embarks on delineating a two-tiered model designed to address this imperative adeptly: 1. Preliminary Phase - Employing a Feed Forward Neural Network (FFNN): In the initial phase, a Feed Forward Neural Network (FFNN) is employed to gauge the occupancy levels across various subway stations. The FFNN, a class of artificial neural networks, is well-suited for this task because it can learn from the data and make predictions or decisions without being explicitly programmed to perform the task. Through a series of interconnected nodes, known as neurons, arranged in layers, the FFNN processes the input data, adjusts its weights based on the error of its predictions, and optimizes the network for accurate forecasting. For the random process of occupation levels in time and space, this phase encapsulates the so-called process filtration, wherein the underlying patterns and dynamics of subway occupancy are captured and represented in a structured format, ready for subsequent analysis. The estimates garnered from this phase are pivotal and form the foundation for the subsequent modelling stage. 2. Subsequent Phase - Implementing a Bayesian Proportional-Odds Model with Hourly Random Effects: With the estimates from the FFNN at disposal, the study transitions to the subsequent phase wherein a Bayesian Proportional-Odds Model is utilized. This model is particularly adept for scenarios where the response variable is ordinal, as in the case of occupancy levels (Low, Medium, High). The Bayesian framework, underpinned by the principles of probability, facilitates the incorporation of prior probabilities on model parameters and updates this knowledge with observed data to make informed predictions. The unique feature of this model is the incorporation of a random effect for hours, which acknowledges the inherent variability across different hours of the day. This is paramount in urban transit systems where passenger influx varies significantly with the hour. The synergy of these two models facilitates calibrated estimations of occupancy levels, both conditionally (relative to the sample) and unconditionally (on a detached test set). This dual-phase methodology furnishes analysts with a robust and reliable insight into the quality of predictions propounded by this model. This, in turn, avails a data-driven foundation for making informed decisions in real-time traffic management, emergency response planning, and overall operational optimization of urban subway systems. The model expounded in this study is presently under scrutiny for potential deployment by the Beijing Metro Group Ltd. This initiative reflects a practical stride towards embracing sophisticated analytical models to ameliorate urban transit management, thereby contributing to the broader objective of fostering sustainable and efficient urban living environments amidst the surging urban populace. |
| Keywords: | Bayesian Model Calibration; Deep Learning; Integrated Nested Laplace Approximation; Proportional Odds Model; Spatial-Temporal Modelling |
| Date: | 2023–11–07 |
| URL: | http://d.repec.org/n?u=RePEc:cte:wsrepe:38783&r=ure |
| By: | Tunbosun Oyedokun |
| Abstract: | Active learning has gained widespread acceptance over the past few decades as a way to enhance student learning in higher education institutions (HEIs). Unlike the traditional teacher-focused approach, active learning prioritises the constructivist learning theory and places students at the centre of learning design and delivery. Research shows that active learning can enhance knowledge retention, foster independent learning, and improve student satisfaction. Despite its numerous benefits, however, the adoption of active learning practices by HEI teachers is not always natural or intuitive. To address this challenge, HEIs often provide or mandate teacher professional development (TPD) programmes to enlighten and influence teachers to adopt active learning strategies. However, this practice is not universal. In Nigeria for instance, academics are usually employed based on their relevant (subject-specific) qualifications and are mostly not required to undergo any special teacher training to be promoted. This lack of teacher training opportunities is a significant obstacle to the widespread adoption of active learning practices in the sector. To address this challenge, this study - currently at the data collection stage - assesses the role TPD programmes could play in driving active learning in Nigeria, focusing specifically on the property and related subjects. The study adopts a qualitative research approach and semi-structured interviews for data collection. Data will be collected from Nigerian lecturers who have migrated to take up teaching roles in the UK and those currently lecturing in Nigeria. Ultimately, this research seeks to identify effective TPD strategies that can be employed to promote the adoption of active learning practices in Nigerian HEIs. |
| Keywords: | Active Learning; higher education institutions; real property; teacher professional development |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_333&r=ure |
| By: | Alex Moss; Kieran Farrelly |
| Abstract: | One of the key factors inhibiting the growth of the listed sector is the fact that generalist investors, who are the price setters, and drive funds flows and valuations, do not find it easy to group real estate stocks with other equities such as Financials, Information Technology, and Healthcare. As a result, they can often regard the sector as a unified whole and take a sector weighting according to the real estate and economic cycle, rather than maintaining a holding in certain stocks throughout the cycle. Historically, listed real estate has had very real estate-specific labels, be they asset (Retail, Office, Industrial, etc) or structure (REIT, PropCo) based. Even adopting the labels of unlisted funds, (Core, Value Add, Opportunistic) does not provide much guidance as listed real estate companies do not have a finite life and listed equity returns are not based on IRRs. In this study, we attach labels to the listed real estate sector which are commonly used by multi-asset fund managers to characterise equities across GICS groups. We draw upon the principles established by Fama and French in their work on factor models. Size, valuation, and leverage factors are utilised in the study, but the labels are expanded to take account of many other key price drivers. Much work has been done in the sector on cluster analysis, showing how companies with similar underlying asset types perform in a similar fashion and therefore provide little in the way of diversification. In this work, we look at how clusters can be grouped not by asset type but by theme (exposure to online retail, cloud storage, interest rates, the UK domestic economy, etc) across equity sectors, and how including listed real estate in these themes affects performance. We conclude by providing a new set of style and factor guidelines that can be used by generalist equity fund managers which enable them to include real estate stocks in their theme-based strategies. |
| Keywords: | REITS, Fund Management, Multi-Asset Portfolios, Factor Analysis |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_153&r=ure |
| By: | Carl White |
| Abstract: | Remote work, higher interest rates and other factors have made commercial real estate lending more challenging for banks, particularly community banks. |
| Keywords: | commercial real estate |
| Date: | 2023–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:96454&r=ure |
| By: | Gözde Karahan; Kerem Yavuz Arslanli |
| Abstract: | Models to be established in large geographies or for multiple location selections should be as dynamic as the urban area itself. As much as the feature selection of the variables to be used for site selection models, the accuracy of the catchment areas will make important differences in the right location decisions. With the study, methods to adjust the catchment area by using the features of the facility to be positioned and the differences of the geography will investigate. In general, facility location models are static models that evaluate demand and environmental conditions in a specific period. However, cities are dynamic and the demand and environmental conditions that will occur in cities are changing. Therefore, it is not efficient or applicable to use access areas determined by the literature in each site selection study. In addition, as the demographic variables focused on each sector and geography may change, the catchment area should be redefined according to the geography and sector. The study will focus on a location selection model that can be applied in a vast geography for a function that requires many locations to be determined. There are two questions that the study is designed to answer. First, how can the correct reach or area of attraction be determined for a large geography? Second, is it possible to produce dynamic site selection models by adjusting the catchment areas determined in the literature according to the characteristics of the geography? The method will be one of the most critical decisions in the study. There are two prescribed methods for determining the correct distance. First, according to the details of the fieldwork, a variable related to distance will be generated and it is assumed that this variable will pass through feature selection. Another method can be to perform a consistency test with segments produced for different reach distances. The findings of this study will be supported by further analysis for example case studies with different dependent variable data such as the number of users and/or sales data. In addition, the outputs of this study may support researchers to develop new adjustment methods for facilities that are not studied before. |
| Keywords: | catchment area; demographic segmentation; segmented geographies; site selection |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_257&r=ure |
| By: | Alfano, Marco (Lancaster University); Goerlach, Joseph-Simon (Bocconi University) |
| Abstract: | This paper estimates the effect of exposure to terrorist violence on education. Since terrorists may choose targets endogenously, we construct a set of novel instruments. To that end, we leverage exogenous variation from a local terrorist group's revenues and its affiliation with al-Qaeda. Across several Kenyan datasets we find that attacks suppress school enrolment more than predicted by difference-in-differences-type estimators. This indicates that terrorists target areas experiencing unobserved, positive shocks. Evidence suggests fears and concerns as mechanisms of impact, rather than educational supply. |
| Keywords: | conflict, education, instrumental variables |
| JEL: | D74 I25 O15 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16544&r=ure |
| By: | Gülnaz engül Güne; Kürat Yalçner; Harun Tanrivermis |
| Abstract: | The real estate sector is a rapidly growing sector considered the locomotive of economic development. However, besides rapid growth, unplanned urbanization has led to significant problems such as environmental pollution, degradation of natural vegetation and soil resources, reduction of water resources and drinking water, destruction of biodiversity and damage to the ozone layer, global warming, and climate change, as well as intensive waste problems. The building industry causes issues ranging from excessive consumption of natural resources to environmental pollution in building construction and use. For real estate markets to be characterized as sustainable, it is essential to leave livable areas for future generations and, at the same time to develop several economic, financial, and legal policies. The idea of sustainability is on the agenda of many organizations, such as the United Nations and the European Union Commission. The United Nations has listed 17 items within the scope of the 2030 Sustainable Development Goals: “sustainable cities and society”. Sustainability of societies and cities and leaving a livable world to future generations are the goals of developed countries. Therefore, supporting many environmental, legal, and political factors and providing economic development is necessary. While it is so crucial for the real estate sector to be sustainable, the concept of sustainability appears as an abstract concept. For this reason, studies to measure sustainability are extremely important. Within the scope of the research, a literature review was conducted on the measurement of sustainability in real estate markets. The review was taken advantage of Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guideline. Using keywords that may be related to the real estate sector, 113 studies in the Web of Science database and 152 studies in the Scopus database were analyzed in detail. The studies were evaluated by combining them with content analysis. According to the results of the research, it is seen that sustainability in real estate markets is mostly investigated at the environmental level. |
| Keywords: | Real Estate Index; Real Estate Market; sustainability; Sustainable Real Estates |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_228&r=ure |
| By: | Ilyas Saad |
| Keywords: | regional autonomy, allocation funds, local economy, budget allocation |
| URL: | http://d.repec.org/n?u=RePEc:agg:wpaper:414&r=ure |
| By: | Cevat Giray Aksoy; Jose Maria Barrero; Nicholas Bloom; Steven J. Davis; Mathias Dolls; Pablo Zarate |
| Abstract: | The pandemic triggered a large, lasting shift to work from home (WFH). To study this shift, we survey full-time workers who finished primary school in 27 countries as of mid-2021 and early 2022. Our cross country comparisons control for age, gender, education, and industry and treat the U.S. mean as the baseline. We find, first, that WFH averages 1.5 days per week in our sample, ranging widely across countries. Second, employers plan an average of 0.7 WFH days per week after the pandemic, but workers want 1.7 days. Third, employees value the option to WFH 2-3 days per week at 5 percent of pay, on average, with higher valuations for women, people with children and those with longer commutes. Fourth, most employees were favorably surprised by their WFH productivity during the pandemic. Fifth, looking across individuals, employer plans for WFH levels after the pandemic rise strongly with WFH productivity surprises during the pandemic. Sixth, looking across countries, planned WFH levels rise with the cumulative stringency of government mandated lockdowns during the pandemic. We draw on these results to explain the big shift to WFH and to consider some implications for workers, organization, cities, and the pace of innovation. |
| Keywords: | working from home, world, pandemic, age, gender, education, industry, productivity |
| Date: | 2022–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:cep:poidwp:057&r=ure |
| By: | Grazyna Wiejak-Roy; Alice Williams |
| Abstract: | The prevalent use of gifts, gratuities, and hospitality in the alternative real estate lending markets as part of business development practices has been observed, with the nature, scale, and type of such offerings varying significantly. With no formal regulation of the market, and a sole reliance on the U.K. Bribery Act (2010) alongside a handful of industry bodies, it begs the question of whether such offers may lead to market inefficiencies and unfair treatment of borrowers in the industry, resulting from the principal-agent problem arising. There has been substantial research demonstrating the benefits of including gifts, gratuities, and hospitality offers within any business development strategy as such practices lead to an increased number of real sales for the offering business. The resources exploring the principal-agent problem demonstrate the risks of such a problem arising and its impact on entire markets. Research has gone as far as to link the principal-agent problem to the misbehaviour of mortgage brokers within the regulated mortgage industry, an issue that became evident in financial crash of 2007/08. Minimal literature exists on business development practices involving the offering, and accepting, of gifts, gratuities, and hospitality. In this research perceptions have been sought from stakeholders within the alternative real estate lending market to determine the use and acceptance of gifts, gratuities, and hospitality. It is concluded that whilst there continues to be a place for such practices within the market, expectations of reciprocation from the recipient should be avoided, as it is at this point there becomes a significant risk of the principal-agent problem arising. |
| Keywords: | gifts; gratuities; Hospitality; real estate lending |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_125&r=ure |
| By: | David Autor; Christina Patterson; John Van Reenen |
| Abstract: | National U.S. industrial concentration rose between 1992-2017. Simultaneously, the Herfindahl Index of local (six-digit-NAICS by county) employment concentration fell. This divergence between national and local employment concentration is due to structural transformation. Both sales and employment concentration rose within industry-by-county cells. But activity shifted from concentrated Manufacturing towards relatively unconcentrated Services. A stronger between-sector shift in employment relative to sales explains the fall in local employment concentration. Had sectoral employment shares remained at their 1992 levels, average local employment concentration would have risen by 9% by 2017 rather than falling by 7%. JEL: L11, L60, O31, O34, P33, R3 |
| Keywords: | Employment concentration, sales concentration, local labor markets, structural transformation |
| Date: | 2023–04–19 |
| URL: | http://d.repec.org/n?u=RePEc:cep:poidwp:069_updated&r=ure |
| By: | Alexis Pourcelot; Alain Coen |
| Abstract: | The purpose of this study is to investigate the effect of conventional and unconventional monetary policy shocks on housing price dynamics and the economy. We also examine the effect of a housing price shock on monetary policy and its implications for the economy. To do so, we implement an SVAR model for the six major European countries (France, Germany, Italy, Netherlands, Spain and the United Kingdom) and thirteen European markets (Paris, Lyon, Marseille, Berlin, Munich, Frankfurt, Amsterdam, Madrid, Barcelona, Seville, London, Birmingham and Manchester) for the last 20 years (2000-2020). We use impulse response functions to understand the effect of a policy rate and a balance sheet shock on housing prices. We also conduct a forecast error variance decomposition analysis to explore each shock’s effect on housing prices across markets. We find that a contractionary policy rate has a negative influence on house prices. Moreover, an expansionary balance sheet shock has a positive impact on housing prices in all countries, but the effect is heterogeneous according to markets. An unconventional monetary policy shock has greater explanatory power regarding housing prices than a conventional one except in the United Kingdom. The market-level analysis indicates that a conventional monetary policy shock explains a larger share of total housing price variance than an unconventional monetary policy shock in markets such as Paris, Lyon, Madrid, London, Birmingham, Manchester and Amsterdam whereas the opposite is true in the German markets, Barcelona and Seville. In Marseille, both policy types have the same explanatory power. Finally, we find that conventional and unconventional monetary policy shocks have a greater impact in more liberalized credit markets. |
| Keywords: | Conventional and unconventional monetary policy; House Prices; SVAR model |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_266&r=ure |
| By: | Titilayo A. Ukabam |
| Abstract: | Housing is crucial for national development as a capital product in terms of both economy and welfare. Macroeconomic policies comprise of fiscal policy, monetary policy, and exchange rate policy. These policies affect taxes, tariff, interest rate, inflation rate, employment rate and purchasing power. This study examined the effects of macroeconomic policies on housing development in Lagos State, Nigeria. The macroeconomic factors affecting housing development were incorporated into the questionnaire administered to real estate developers in Lagos State. The methods of analysis adopted were descriptive, correlation and multiple regression. The findings revealed that increase in interest rate, inflation rate, exchange rate and tariff will increase cost of housing development by 10.6%, 8.5%, 13.5% and 16% respectively. In conclusion, the current macroeconomic policies should be reviewed for favourable housing development, national capital formation of employment generation, income production and economic growth in Nigeria. |
| Keywords: | Cost; Development; housing; Macroeconomics; Policy |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:afres2023-015&r=ure |
| By: | William M. Rodgers |
| Abstract: | Since February 2022, out-of-school young adults have seen their employment-population ratio decline sharper than other groups. |
| Keywords: | young adults; employment-to-population ratio |
| Date: | 2022–11–29 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:95253&r=ure |
| By: | Daryl Fairweather |
| Abstract: | Daryl Fairweather, chief economist at real estate company Redfin, talks about behavioral economics and how it applies to purchasing a house. |
| Keywords: | behavioral economics; homebuyers; women in economics |
| Date: | 2023–04–25 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:96077&r=ure |
| By: | Julian Granna; Stefan Lang |
| Abstract: | Modeling real estate prices in the context of hedonic models typically involves fitting a Generalized Additive Model, where only the mean of a (lognormal) distribution is regressed on a set of variables, without taking into account other parameters of the distribution. Thus far, the application of regression models that model the full conditional distribution of the prices, has been infeasible for large data sets, even on powerful machines. Moreover, accounting for heterogeneity of effects regarding time and location, is often achieved by naive stratification of the data rather than on a model basis. We apply a novel batchwise backfitting algorithm in the context of a structured additive regression model that enables us to efficiently model all distributional parameters of an appropriate distribution. Using a large German dataset of rental prices comprising over a million observations, we choose variables relevant for modeling the location and scale parameters using a boosting variant of the algorithm. Moreover, we identify heterogeneity of covariates’ effects on the parameters with respect to both time and location on a model basis. In this way, we allow varying influence of variables on the prices’ distribution depending on the dwelling’s location and the date of sale. Modeling the full distribution of prices further enables us to investigate the influence of the variables not only on the median, but also on other quantiles of rental prices. |
| Keywords: | distributional regression; Hedonic regression; parameter instability |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_130&r=ure |
| By: | Matthias Soot; Sabine Horvath; Hans-Berndt Neuner; Alexandra Weitkamp |
| Abstract: | Property rates, usually used in the income approach, can be determined in a reverse income approach model for every transaction where the net yield is known. The height of the property rates represents the risk of the asset that is traded. The height of the yield, therefore, depends on influencing parameters that can explain the risk. A classical approach to investigate these influences is a multiple linear regression model. In an inhomogeneous market, the investigation leads to bad results for the classic approach. In this work, we will compare different parametric and non-parametric methods to model the height of the rates. Thus, we present the application of Artificial Neural Networks (ANN) as well as Random Forest Regression (RFR) as non-parametric methods and compare the results with parametric approaches like the classic multiple linear regression (MLR) as well as a Geographical Weighted Regression (GWR). The dataset consists of a submarket of mixed-use-buildings (residential and commercial) in the federal state of Lower Saxony (Germany). The asset class of mixed-use is only traded 200 times per year in the federal state with more than 8 million inhabitants. Therefore, the investigated sample (including 5 years of data) comes from the official purchase price database. Beside the building characteristics (No. of floors, year of construction and average rent per sqm), locational parameters are considered (standard land value, population forecast, and population structure). Due to the inhomogeneous rural, urban and socio-demographic environment, the models can be complex. The evaluation of the different approaches led to inhomogeneous results. No perfect method can be determined for the dataset. Our goal is to understand and interpret the different results in the view of how the methods work. Therefore, we investigate the results by means of the used influencing parameters (model size), sample sizes and the influence/significance of the parameters on the result. The patterns found are discussed in comparison of methods and in the context of the data. We conclude our contribution by formulating the possibilities and limitations. |
| Keywords: | Complexity; Machine Learning; mixed use buildings |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_241&r=ure |
| By: | Fabian Lachenmayer; Yassien Bachtal; Andreas Pfnür |
| Abstract: | Global developments have led to a fundamental change in the views and interests of consumers, especially regarding housing. Consumers have new demands for the housing of the future caused by complex circumstances. On the one hand, the use of sustainable building materials and renewable energies has increased due to rising energy costs and people’s growing concern for the environment. There has also been a massive increase in the desire for autocracy in housing. On the other hand, the socio-demographic developments, which show similar tendencies within the European Union, have changed the population’s mindset. An ageing society and the decreasing ability to act in old age are giving rise to new forms of housing. Therefore, there is an enormous desire for flexible living space that can be adapted to different stages of life. At the same time, these developments require digitalisation in housing. Digitisation is a necessary prerequisite for creating a new comfortable living environment and is an additional benefit for the residents. Thus, fast digital infrastructure and smart homes are coming into focus. The three megatrends - sustainability, socio-demographic developments and digitalisation - have an influence on future housing and are therefore focused on in this study. Against this background, the study itself consists of two parts. First, it will examine which aspects affiliated with the three megatrends are changing housing from the perspective of private households. Then the different demands for housing will be analysed, according to various identified subgroups. An extensive literature research forms the basis of the survey conducted with n= 962 private households in Germany. To achieve the research objectives, we conducted an experimental study that used the best-worst scaling method. The best-worst scaling method measures the individual strength of the respondents' perception of how a certain aspect will change future housing. Subsequently, a regression analysis is used to show the differences in perception of different subgroups. The results of this study show that sustainable aspects are particularly relevant for home buyers. Considering the current environmental developments and similar socio-demographic developments within Europe, the results provide valuable insights that can also be transferred to foreign real estate markets. Thus, the present results provide important impulses for housing industry practice and point out important paths for further research. |
| Keywords: | best-worst-scaling; future housing; megatrends; transformation process |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_157&r=ure |
| By: | Karl-Friedrich Keunecke |
| Abstract: | The analysis of price fluctuations of real estate equity companies he been approached from different perspectives, such as region, investment type or regional focus. However, the capital market volatility of different business models of real estate equity companies has not been investigated so far. The aim of this paper is to gain a better understanding of how real estate equity companies’ business models can be quantified and distinguished in the first place. We use real estate equity companies´ turnover along the two dimensions “area of economic activity” and “asset class” to distinguish between business models and to quantify turnover fragmentation. How the fragmentation of each dimension impacts the capital market volatility is relevant for our understanding of how diversification is valued by capital markets. Additionally, different business models and associated stocks might respond differently to varying market phases and external shocks. An analysis of these reactions is therefore a research objective with potentially interesting insights in terms of resiliency during crisis such as the Covid-19 pandemic. Our analysis is based on a sample of 48 real estate equity companies from Germany and Austria from Q1/2016 up until Q3/2022 with a total market capitalization of €89bn. The turnover data was collected by analyzing the business reports and in a survey among the companies in 2022. We use hierarchical clustering after Ward (1963) and a silhouette index to derive compact clusters of real estate equity companies sharing a comparable turnover structure, which can be interpreted as groups of business models. Based on those results we firstly analyze the fragmentation of each business model in terms of turnover fragmentation using the Hirschman-Herfindahl index and the relation between fragmentation and capital market volatility. Secondly, we construct a stock market index for each business model and investigate the first and second moment as well as the correlations with macroeconomic variables and sentiment indicators. Thirdly, the indices are subjected to a change point analysis based on the Pruned Exact Linear Time (PELT) method to identify breaks in the volatility of the return series. From here the individual time frames of each index based on the identified breaks are subjected to analysis and specifically the pandemic period. In addition to a better understanding of the complexity and fragmentation of the business models pursued by real estate equity companies and their impact on capital market volatility, this paper provides a basis for a systematic benchmarking approach for investors and regulators based on the identified groups of business models, as well as a better understanding of the resiliency of different business models during different market phases. |
| Keywords: | Business Models; Capital market volatility; COVID-19; real estate equity companies |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_246&r=ure |
| By: | Odersky, Moritz (University College Maastricht); Löffler, Max (Maastricht University) |
| Abstract: | We analyze the exposure of different income groups to the 2021 floods in Germany, which serve as an exemplary case of natural disasters intensified by anthropogenic climate change. To this end, we link official geo-coded satellite data on flood-affected buildings to neighborhood-level information on socio-economic status. We then document the empirical relationship between flood damages and household income. We limit comparisons to the vicinity of affected rivers and absorb a rich set of regional fixed effects to assess the differential exposure at the local level. Average household income is around 1, 500 euros or three percent lower in flood-affected neighborhoods than in non-affected neighborhoods nearby. Our study is the first to document this regressive exposure along the income distribution based on actual flood damage data in Europe. |
| Keywords: | climate change, differential exposure, floods, income distribution |
| JEL: | Q52 Q54 D30 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16540&r=ure |
| By: | Thomas Hagedorn (Institute of Transport Economics, Muenster); Till Kösters (Institute of Transport Economics, Muenster); Jan Wessel (Institute of Transport Economics, Muenster); Sebastian Specht (Institute of Transport Economics, Muenster) |
| Abstract: | We estimate the relationship between fuel prices and driving speeds on the German Autobahn. The speed price elasticities are higher on sections without a speed limit (-0.047) than on those with a limit (-0.033), thus underlining the distortionary effect of speed limits on previously estimated elasticities. We also find higher elasticities when drivers are alone on the road, for high prices, and slower drivers. Based on the undistorted speed price elasticities, we estimate the short-run fuel demand elasticity and the revealed value of time (20.71 Euro/h; 83% of gross wage), hence providing valuable input for policymakers and infrastructure planning. |
| Keywords: | fuel prices, speed price elasticity, no speed limit, short-run fuel demand elasticity, value of time, German Autobahn |
| JEL: | R41 R48 Q41 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:mut:wpaper:39&r=ure |
| By: | Anna Sophia Ressler; Jonas Hahn |
| Abstract: | Namibia is in the midst of a housing crisis: A significant shortage of adequate and affordable housing is posing great challenges for the country and its population. The government has long recognized the severity of the situation, yet despite its efforts to address the housing needs of its citizens, supply has not been able to keep pace with the growing demand. In light of this, cross-sector collaborations have been gaining prominence as viable alternative delivery mechanisms as opposed to the more traditional, government-led provision of housing. By leveraging the unique expertise, resources, and knowledge of each stakeholder group, such collaborative ventures aim to create more inclusive, sustainable, and people-centered housing solutions. Cross-sector collaborations, however, are complex endeavors and should not be regarded as an easy answer to challenging public issues. Drawing upon a comprehensive review of existing collaboration literature, we propose a framework for understanding the dynamics and intricacies of cross-sector collaborations in Namibia’s affordable housing sector, including drivers and initial conditions, processes and structures, as well as outcomes and constraints. Expert interviews are used to refine the proposed framework and to inform strategies for cross-sector collaborations aiming to increase the availability of adequate and affordable housing in Namibia. |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:afres2023-034&r=ure |
| By: | Nicholas Bloom; Steven J. Davis; Stephen Hansen; Peter Lambert; Raffaella Sadun; Bledi Taska |
| Abstract: | The pandemic catalyzed an enduring shift to remote work. To measure and characterize this shift, we examine more than 250 million job vacancy postings across five English-speaking countries. Our measurements rely on a state-of-the-art language-processing framework that we fit, test, and refine using 30, 000 human classifications. We achieve 99% accuracy in flagging job postings that advertise hybrid or fully remote work, greatly outperforming dictionary methods and also outperforming other machine-learning methods. From 2019 to early 2023, the share of postings that say new employees can work remotely one or more days per week rose more than three-fold in the U.S and by a factor of five or more in Australia, Canada, New Zealand and the U.K. These developments are highly non-uniform across and within cities, industries, occupations, and companies. Even when zooming in on employers in the same industry competing for talent in the same occupations, we find large differences in the share of job postings that explicitly offer remote work. |
| Keywords: | remote work, pandemic |
| Date: | 2023–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:cep:poidwp:067&r=ure |
| By: | Dandan Li; Lie Ma |
| Abstract: | Nowadays, Chinese real estate firms (CREFs) are facing challenges of tightened financing criteria, raised prices of land use rights, and increased industrial concentration. In response to market changes, more and more CREFs are involved in collaborative delivery through project-based joint ventures (JVs). However, when influenced by pluralistic delivering logics, the JVs’ internal operations can be hard to understand, and their behaviour may be difficult to predict. This paper uses institutional theory and hybrid organizing as a theoretical framework to explore how JVs coordinate and integrate their resources and competencies, as well as govern tensions between competing logics. In doing so, we first use a broad literature review and field interviews to capture institutional logics embodied in the Chinese real estate sector. As a result, two logics (i.e., mass production and unit production) and the underpinned practices are refined. Secondly, based on the case of CREF- Gemdale, we further investigate how the JV-Gemdale’s organizational structure, activities, and processes are assembled and mobilized during the collaborative delivery. In particular, we show that, instead of integration or differentiation approaches, as the literature typically suggests, JVs can selectively hybrid organize elements prescribed by competing logics. Subsequently, this paper further explores the manifestations of tensions and how the JV-Gemdale responds to them. The result shows that tensions and responses are influenced by how JVs selectively hybrid organize. Overall, our findings theoretically contribute to a better understanding of how project-based organizations navigate in pluralistic institutional environments. |
| Keywords: | Chinese real estate firms; Collaborative delivery; Hybrid organizing; Institutional logic |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_219&r=ure |
| By: | Viktorija Cohen; Arnas Burinskas |
| Abstract: | Real estate investment trusts (REITs) are widely used as a part of investment diversification opportunities of physical assets among investors. A number of studies on macroeconomic determinants suggest certain commonalities in commercial property market returns, which are driven by macroeconomic factors. This paper extends the range of common macroeconomic factors of REITs introduced by the existing literature. This paper outspreads the perspective of REITs analysis by employing up to 17 indicators in total that include not only usually used variables (GDP growth, CPI, equity markets indicators) but also new ones (among them with more significant relationships: business cycle, bond yields, PPI, industry production, credit for the private sector, hourly earnings for manufacturing, construction volumes, and building permits). We combine OLS regression (including time lags) with Granger causality and ARDL analysis to obtain more robust results. In the latter case, we identify the short and long-run relationship between EPRA and extended macro drivers. Our results confirm well-established relationships between EPRA, equity price growth, CPI, bond yields, and GDP. They also suggest the countercyclical behavior of EPRA, its negative relationship with PPI, industry variables, credit for the private sector and hourly earnings for manufacturing. However, it demonstrates a positive correlation between construction and residential building permits. The same results are obtained for short- and long-term perspectives. Furthermore, we demonstrate that including these new variables in the model increases its forecasting accuracy. Overall, our research contributes to an existing methodology of forecasting REITs' performance broadening the list of important macroeconomic variables that should be included in estimation of REIT’s performance. |
| Keywords: | ARDL model; EPRA index; Granger Causality; REITs |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_55&r=ure |
| By: | David Akinwamide |
| Abstract: | Digital technologies has transformed human experience in the virtual world. Metaverse work as a network of 3-D virtual worlds where human can interact, carry out business, and build connections through their ‘avatars’ or digital identity. These would also grant an access to digital ecosystem through its own currency, property and possessions. In the metaverse, disruptive technologies (such as AR and VR, Blockchain, AI, 3D reconstruction and IoT) support the trading of digital real estate assets (such as sales and purchase of virtual lands) in the form of Non-Fungible Tokens (NFTs). Investment in real estate metaverse is currently experiencing a great return. Presently, real estate sales in the metaverse have been concentrated on the 'Big Four' — Sandbox, Decentraland, Cryptovoxels and Somnium. Therefore, investment in digital real estate assets require some degree of skills and competencies in the metaverse. The concept of digital intelligence is a set of skills needed by investors to meet digital technologies' demand in trading of digital real estate assets and the virtual world's challenges. This paper therefore explore the need for digital intelligence in investing in digital real estate assets in the metaverse from a theoretical perspective. Review of relevant literature in the subject area was adopted for this study. This paper outlined the major benefits of digital intelligence in the purchase of digital real estate assets as identifying the virtual land with the highest traffic, understanding the digital footprints in a geospatial context among others. This paper provide policy implication on the need for investors in digital real estate assets to acquire necessary digital skills (such as digital: identity, rights, security, safety etc.) for a successful business transactions (sales and purchase of digital assets) in the metaverse. |
| Keywords: | Digital Assets; Digital Intelligence; Digital Real Estate; Metaverse |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_4&r=ure |
| By: | Kaixin Liu; Jiwei Zhou; Junda Wang |
| Abstract: | Using high-frequency donation data from a major medical crowdfunding site, this study demonstrates that the 2020 BLM surge decreased the fundraising gap between Black and non-Black beneficiaries by around 50%. The reduction is largely attributed to non-Black donors. Those in counties with moderate BLM activity were most impacted. Innovative instrumental variable utilizing weekends and rainfall identify global and local effects of BLM protests. Results suggest a broad social movement has a greater influence on behavior than a local event. Social media significantly magnifies the impact of protests. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2310.14590&r=ure |
| By: | Charlotte Guillard; Ralf Martin; Pierre Mohnen; Catherine Thomas; Dennis Verhoeven |
| Abstract: | Research and development is underprovided whenever it creates knowledge spillovers that drive a wedge between its total and private economic returns. Heterogeneity in the intensity of this market failure across technological areas provides an argument to vertically target public support for R&D. This paper examines potential welfare gains of such vertical industrial policy for innovation. It develops measures of private and spillover value of patented innovations using global data on patents and their citations. Our new method identifies a large number 'Hidden Giants' - i.e. innovations scoring higher on our new spillover measure than on the traditional forward citation count measure which are shown to be particularly prevalent among patents applied for by universities. The estimated distributions of private values by technology area are then used to parameterize a structural model of innovation. The model permits estimation of the marginal returns to technology-area-specific subsidies that reduce innovators' R&D costs. Marginal returns are high when knowledge spillovers in the technology area are valuable, when private innovation costs are low, and when private values in a technology sector are densely distributed around the private cost. The results show large variation in the marginal returns to subsidy and suggest that targeted industrial policy would have helped mitigate underprovision of R&D over the time period studied. Variation in the extent to which knowledge spillovers are internalized within countries also makes a compelling case for supranational policy coordination, especially among smaller countries. |
| Keywords: | research and development, patented innovations, decoupling, targeted industrial policy, Productivity |
| Date: | 2022–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:cep:poidwp:054&r=ure |
| By: | Simon Stevenson; Andrew Cohen |
| Abstract: | Over the last thirty years a large literature has developed that considered the investment opportunities that arise within the REIT (Real Estate Investment Trust) sector. This literature has considered an array of issues, including the relationship and diversification across different REIT sectors (e.g. Chong et al., 2012; Stevenson 2016), the role REITs can play in both real estate (e.g. Stevenson, 2001) and capital market (Liu & Mei, 1992; Lee & Stevenson, 2005) portfolios and also issues relating to international diversification in public real estate. Some papers have considered portfolio trading strategies within REITS (e.g. Cici et al., 2011; Feng et al., 2022; Zhou & Anderson, 2013) and also the analysis of Smart Beta strategies (Guidolin & Pedio, 2019) or the predictability of REIT returns (e.g. Akinsomi et al., 2016; Letdin et al., 2019; Ling et al., 2000; Li & Wang, 1995; Serrano & Hoesli, 2010, Stevenson, 2001). However, the majority of this literature has focused on relatively low-frequency data, on a monthly frequently or less. This paper takes a slightly different approach, focusing on both higher-frequency data, at a daily frequency, and more active trading strategies. The paper utilizes data obtained for the US Equity REIT sector and compares the performance of a variety of trading strategies commonly adopted by active traders. The analysis utilizes data source from Bloomberg and considers the viability of active trading strategies in the US Equity REIT sector. The strategies included consider approaches such as Relative Strength, Momentum and Mean Reversion over a variety of time horizons. The analysis also examines more fundamentally based measures, including Price to FFO (Funds from Operations). |
| Keywords: | REITs; Trading Strategies |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_112&r=ure |
| By: | Yan Yang |
| Abstract: | The existence of non-tradable shares was a unique phenomenon in the Chinese mainland stock market. Before the non-tradable share reform, only newly issued A-shares were tradable shares. Other shares issued before IPO were non-tradable. Non-tradable shareholders are usually major shareholders who also appoint the managers (CEO) of the company. Due to the absence of the rights to transfer in the stock market, non-tradable shares are, in theory, less valuable than tradable shares. The purpose of the non-tradable share reform was to equalize the rights of all shareholders. Non-tradable share reform has increased the shareholders’ rights, which also increased their incentive to monitor the performance of the management and thus corporate governance of the company. This study aims to investigate whether the non-tradable share reform has impacted on the corporate governance of listed real estate companies (“Indirect Real Estate”). Previous studies are inconclusive, and the empirical results were also mixed. This study measures the quality of corporate governance by the linkage between share price movements of the listed property companies and the price movements of the tangible asset (“Direct Real Estate”) held by these companies (“Linkage”). This measure is viable for real estate companies due to the availability of real estate price indices (indicator of Direct Real Estate Prices). Since the major form of tangible asset held by listed property companies are real estate assets, good governance should minimize the agency problems so that the company’s valuation reflects closely the price movements of the real estate assets it holds and therefore a stronger Linkage. A difference-in-differences approach is used to test the impact of the non-tradable share reform on the strength of the Linkage. The empirical results show that the increase in the strength of the Linkage after the reform for central state-owned companies is the largest and most significant, while that for private companies is the smallest and least significant. Among the state-owned companies, the strength of the Linkage after the reform has increase less for the local state-owned companies compared to that of the central state-owned companies. The results are consistent with the conjecture that the impact of non-tradable share reform on corporate governance, measured by the strength of the Linkage, decreases with the management’s incentive to maximize the value of the company. |
| Keywords: | Corporate Governance; direct and indirect real estate market linkage; government incentives; Property Rights |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_180&r=ure |
| By: | Adelheid Holl; Ruth Rama |
| Abstract: | Digital transformation plays an increasingly important role in the growth and competitiveness of small and medium-sized enterprises (SMEs), yet little is known regarding spatial inequalities in their adoption of advanced digital technologies. Using recent data from the Flash Eurobarometer 486, we study the spatial patterns of drivers for the implementation of new digital technologies in SMEs in Europe. In our analysis, the focus is on the possible influence of location. Considerable heterogeneity of SMEs is found in their propensity to adopt advanced digital technologies related to the strength of the local business environment and to the urban/rural hierarchy. |
| Keywords: | SMEs, Digitalisation, technology adoption, location. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:ipp:wpaper:2201&r=ure |
| By: | Makathimo Mwenda Kiambi |
| Abstract: | There is always a probability of occurrence of disagreement in the processes of acquisition, registration, administration, development, use, management, and disposal of real estate. The possibility that the rights of parties could be infringed or perceived to be infringed may have varied causes at each of the stages. The results of such disputes could undermine the objectives of the owners, users, developers, managers and other stakeholders in the real estate industry. Disputes put at risk the requirements for peaceful enjoyment and security of property rights. They present threats to the value of investments in real estate and escalate the costs of development. It is important that parties and stakeholders in the real estate industry understand the mechanisms and strategies for preventing and or resolving disputes to avert these adverse onsequences. The appropriate choice and implementation of methods that are effective, efficient, just or equitable and affordable is necessary to maintain stability in the industry. The protection of relationships between the players is useful in building confidence in the markets. Despite the general methods and approaches to dispute resolution being appreciated by professionals, the application and effectiveness in practice differs. Property being subject to National laws, regulations and policies presents diversity in suitability and permissibility for different mechanisms. The social cultural contexts present challenges that affect the acceptance and enforcement of results of the various dispute resolution mechanisms. It is the objective of this paper to review the real estate dispute resolution mechanisms in Kenya. |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:afres2023-031&r=ure |
| By: | Marianne Wyrwoll; Elisabeth Beusker |
| Abstract: | Real estate development contains a broad field of activity. It includes the entire life cycle in the context of individual properties, at neighbourhood or regional level. The process is characterised by the interdisciplinary cooperation of a large number of actors from different professions. The economic viability of projects is of central importance within real estate development. This is measured on the basis of profitability indicators. They can be used to identify and control problems and to recognise opportunities and risks. The introduction of new regulations, but also current tax and market devel-opments indicate that using profitability indicators for early risk detection is becoming increasingly important. An examination of the currently available literature indicates a large number of profitability indicators in real estate development. The literature does not determine whether the application of the various indicators is related to the entrepreneurial structures and the professional background of the users. So far, the identification of the criteria for the respective choice of performance indicators or their respective contexts of application is missing. In the context of this study, we test the hypothesis that the choice of profitability indicators depends significantly on the professional background of the user as well as the corporate structure. Based on a literature study, key profitability indicators are collected. In order to identify profitability indicators, we develop an online questionnaire to collect data from international real estate development companies. As part of the evaluation, we investigate the choice of indicators applied in relation to the above-mentioned contexts. The aim is to gain insight into real estate developers' choice of profitability indicators and to reveal their decision-making processes. |
| Keywords: | profitability indicators; Real Estate Development |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_48&r=ure |
| By: | Sara Mercandalli (UMR ART-Dev - Acteurs, Ressources et Territoires dans le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier); Pierre Girard (UMR ART-Dev - Acteurs, Ressources et Territoires dans le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier); Bécaye Dione (UMR ART-Dev - Acteurs, Ressources et Territoires dans le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier); Sandrine Michel (UMR ART-Dev - Acteurs, Ressources et Territoires dans le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier) |
| Abstract: | In Sub-Saharan Africa, unprecedented population growth, concomitant with limited industrialisation and job creation, have changed the configurations of rural-urban linkages in recent decades. Indeed, as primate cities do not act as strong engines of growth, territorial dynamics are rapidly being reshaped by renewed flows of people, goods, services and information within and between economic sectors, and between rural and urban areas. Rural densification and the fast expansion of small and medium-sized cities is one manifestation of these changes. As a result of silo thinking about rural and urban in most national strategies, plus the widespread informal economy and limited available statistics in the region, these new rural-urban linkages and their contribution to socioeconomic dynamics remain underexplored. Contributing to fill this gap, the aim of this paper is to present and test a method to assess rural-urban linkages and their possible role in territorial development in southern countries. We use a holistic approach and adopt an original posture, taking rural areas as the point of reference. Our method sets proxy indicators for specific information that is missing on rural-urban linkages. These indicators are then used to build a typology of territories according to potential rural-urban linkages, using a multivariate analysis and clustering. When applied to the case of Zimbabwe, the results reveal three types of districts, which differ in terms of the nature, intensity, direction and potential of rural-urban linkages for territorial development. We discuss the method's suitability in a diagnostic phase and how it could feed strategic thinking to mainstream rural-urban linkages in territorial development actions. |
| Keywords: | rural-urban linkages, assessment, small and medium-sized cities, territorial development, Zimbabwe |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04161783&r=ure |
| By: | Sylla Maldini; Andrée De Serres |
| Abstract: | The environmental, social, economic, institutional, and regulatory contexts in which organizations operate are increasingly critical and demanding when it comes to taking ESG issues into account. Corporate governance had to adapt and become increasingly sophisticated. The innovative organization must attest of the performance of its governance mode, its business model, and its sound management of ESG issues by measuring the impacts, both positive and negative, of its activities and decisions. We are entering a new era, the one of social, climate and ecological governance. The challenge is to identify the limits of the perimeter and the scope of these impacts, including their relationships with the different organizational levels. The overview of the academic and documentary literature on the concept of impact reveals its omnipresence in several frameworks and regulations, but also its importance in the development of major disclosure standards. The study of the nature of the impacts that must now be taken into consideration shows the preponderance of the environmental dimension, but also the complexity linked to the socio-economic dimension. In the real estate sector, the evaluation of the two-way impacts between the building and its natural and human ecosystem requires the integration of a multitude of research fields such as environmental psychology, social entrepreneurship, urban design, social life cycle analysis, etc. Indeed, the assessment of the impacts on the various stakeholders of the organization is multi-faceted, especially when it comes to assessing well-being. Their involvement seems essential for this exercise. |
| Keywords: | Environmental, Social and Governance; Impact; sustainability; Sustainable Real Estate |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_98&r=ure |
| By: | Niccolò Lomys (CSEF and Università degli Studi di Napoli Federico II.) |
| Abstract: | I study the dynamics of collective search in networks. Bayesian agents act in sequence, observe the choices of their connections, and privately acquire information about the qualities of different actions via sequential search. If search costs are not bounded away from zero, maximal learning occurs in sufficiently connected networks where individual neighborhood realizations weakly distort agents’ beliefs about the realized network. If search costs are bounded away from zero, maximal learning is possible in several stochastic networks, including almost-complete networks, but generally fails otherwise. When agents observe random numbers of immediate predecessors, the learning rate, the probability of wrong herds, and long-run efficiency properties are the same as in the complete network. The density of indirect connections affects convergence rates. Network transparency has short-run implications for welfare and efficiency. |
| Keywords: | Networks; Bayesian Learning; Search; Speed and Efficiency of Social Learning. |
| JEL: | C7 D6 D8 |
| Date: | 2023–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:sef:csefwp:688&r=ure |
| By: | Agnes Medinaceli (SDSN Bolivia); Lykke E. Andersen (SDSN Bolivia); Marcelo Delajara (Anker Research Institute); Richard Anker (Anker Research Institute); Martha Anker (Anker Research Institute) |
| Abstract: | This report provides updated estimates of family living income expenses and living wages for Dhaka, Bangladesh and its surrounding Satellite Cities, where most of Bangladesh’s garment industry is located. The update for 2023 takes into account inflation and changes in payroll deductions since the original Anker living wage study carried out in March 2016 (Khan et al., 2016). |
| Keywords: | Living costs, living wages, Anker Methodology, Bangladesh |
| JEL: | J30 J50 J80 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:iad:glliwa:230436&r=ure |
| By: | Caiwei Zhang; Lennon Choy |
| Abstract: | Limited land resources and large demand calls for intensive use of industrial land in China. However, delay in land development and idle land greatly deteriorate land use efficiency. This research focuses on the land development performance of industrial land in Guangdong, China. Land transactions of 4 cities from 2010-2016 have been investigated, among which more than two thirds have different degrees of delay in project completion. Influencing factors of land development efficiency are tested and analyzed from perspectives such as bilateral dependency. Bilateral dependency has been exemplified in Williamson’s transaction cost economics. It is often caused by asset specificity, which affects ex post contractual behaviors because lower values are implied for the re-arrangement of the assets. With motives to achieve optimal uses of industrial land, local governments in China often intervene the land market, for instance, designate areas to specific industries, or require the buyers to fulfill certain qualifications during land sales. Industrial clusters based on one or several core enterprises are common patterns in industrial land planning. Considering the long contract period and the uncertainty during contract enforcement, even if the achievement date of land development is dealed in land contract, it’s possible for both enterprises or governments to hold up the other party and cause delay. According to the empirical results, high-tech enterprises show worse performance than low-tech enterprises in land development efficiency. Nature of firm also has significant influence. State-owned firm delay the most while foreign developers perform the best. Besides, location of land, floor area ratio, investment scale etc. have influence on the land development efficiency. Different cities show different patterns under different industrial structures and land policies. The research findings are used for policy recommendations on land contract governance. |
| Keywords: | Bilateral dependency; Industrial land; land development; Transaction cost economics |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_288&r=ure |