Economics

Marketing Racism: The Imperialism of Rationality, Critical Race Theory, and Some Interdisciplinary Lessons for Neoclassical Economics

Marketing Racism: The Imperialism of Rationality, Critical Race Theory, and Some Interdisciplinary Lessons for Neoclassical Economics
Virginia Journal of Social Policy and The Law, v. 5, n. 1 (1997)

Anthony M. Bertelli
01/01/1997

Housing Partnerships: A New Approach to a Market at a Crossroads

Housing Partnerships: A New Approach to a Market at a Crossroads
Cambridge and London: MIT Press, pages xiv, 265.

Andrew Caplin, Sewin Chan, Charles Freeman & Joseph Tracy
01/01/1997

A revolutionary housing finance concept can help many more Americans buy the homes of their dreams, while simultaneously furnishing vast, new investment opportunities for financial institutions and investors. The idea: enable consumers to purchase part of a home through a new type of financing called Housing Partnership agreements.

Housing Partnerships: A New Approach to a Market at Crossroads provides a blueprint for the development of this alternative housing finance market, and offers a new and compelling housing finance option: instead of the existing two housing options -- renting or buying an entire dwelling -- would-be home owners can finance a percentage of a property, while the other portion is financed by institutional investors, who provide capital for the house in exchange for a proportion of the final sale price.

The home buyer (Managing Partner) and a financial institution (Limited Partner) would each own a fixed proportion of the home, resulting in co-ownership of the property. The Managing Partner would live in the entire home and when the house is sold, potential proceeds are split with the Limited Partner.

Housing Partnerships: A New Approach to a Market at a Crossroads proposes adapting the same legal form used successfully by commercial enterprises for the residential housing market. Why can't individual home owners, just like businesses, avail themselves to the benefits of this type of ownership? Why is the U.S. housing market the only one in which there is no way to sell any part of the return stream to other investors?

Housing Partnerships: A New Approach to a Market at a Crossroads has ideas to interest a range of readers, from prospective home buyers to realtors, from financial investors to those interested in housing and social policy development.

 

Making Progress in Relating Values, Goals, and Outcomes in the Evaluation of Local Economic Development Policy

Making Progress in Relating Values, Goals, and Outcomes in the Evaluation of Local Economic Development Policy
Economic Development Quarterly, Vol. 11, No. 3.

Smoke, P.
01/01/1997

Laura Reese and David Fasenfest highlight important conceptual, technical, and procedural issues regarding the relationship between values, goals, and results in the analysis of local economic development. Less insight is provided on how to make progress in resolving the difficult problems they outline. Experiences in developing countries, where analysts have long wrestled with similar concerns, indicate that improvements in designing, implementing, and evaluating local economic development policies can be realized by focusing on certain types of procedural reforms, including the use of multidisciplinary ex-ante policy appraisal; the adoption of a more broadly inclusive process to define, implement, and monitor local economic development policies; and greater emphasis on analysis of the specific institutional context in which local economic development policies must function. Recent work in the United States also suggests that policy makers should direct more attention to the critical problem of enforcing local economic development policy.

Using Mixture Models to Detect Sex Bias in Health Outcomes in Bangladesh

Using Mixture Models to Detect Sex Bias in Health Outcomes in Bangladesh
Journal of Econometrics 77 (1), March, 259-276.

Morduch, J. & Stern, H.
01/01/1997

Many interesting economic hypotheses entail differences in behaviors of groups within a population, but analyses of pooled samples shed only partial light on underlying segmentations. Finite mixture models are considered as an alternative to methods based on pooling. Robustness checks using t-regressions and a Bayesian analogue to the likelihood ratio test for model evaluation are developed. The methodology is used to investigate pro-son bias in child health outcomes in Bangladesh. While regression analysis on the entire sample appears to wash out evidence of bias, the mixture models reveal systematic girl-boy differences in health outcomes.

Residential Mobility and Mortgages

Residential Mobility and Mortgages
Regional Science and Urban Economics 26(3-4), June 1996, pages 287-311.

Sewin Chan
06/01/1996

Mortgage applications are a detailed and accurate source of household information that is verified by underwriters, making it a more accurate data source than self-reported survey answers. This paper discusses how mortgage data can be applied to areas of economics outside mortgage finance. As a supplement to variables from the application form, the self-selection of mortgage points is used to infer expected mobility. A duration model of housing spells is estimated, and the points indicator is shown to be highly significant in predicting mobility for low loan-to-value borrowers. The findings demonstrate the potential fruitfulness of using this new data source.

Public Infrastructure, Private Input Demand and Economic Performance in New England Manufacturing

Public Infrastructure, Private Input Demand and Economic Performance in New England Manufacturing
Journal of Business and Economic Statistics, Vol. 14, No. 1, Jan, pp 91-102.

Schwartz, A.E. & Morrison, C.
01/01/1996

Much of the current debate on the economic performance impacts of public infrastructure investment relates to the input-specific effects of such investment. In this article we explore these impacts by evaluating substitution patterns affecting private input use in New England manufacturing. Using a cost-based methodology, we find that, in the short run, public capital expenditures provide cost-saving benefits that exceed the associated investment costs due to substitutability between public capital and private inputs. Over time, however, stimulating investment in private capital increases economic performance more effectively than public capital expenditures alone and in fact reduces the cost incentive for such expenditures. In addition, growth in output motivated by infrastructure investment increases employment opportunities because this growth overrides short-run substitutability.

State Infrastructure and Productive Performance

State Infrastructure and Productive Performance
American Economic Review, December 1996, Vol. 86, No. 5, pp 1095-1111.

Schwartz, A.E. & Morrison, C.
01/01/1996

Recent research on productivity growth has focused on public infrastructure and its impact on economic growth and productivity. We construct a model of firms' technology and behavior, taking advantage of the analytical framework provided in the cost-function-based applied production-theory literature, and apply it to state-level data for U.S. manufacturing. We find that infrastructure investment provides a significant return to manufacturing firms and augments productivity growth. The net benefits of infrastructure investment may or may not be positive, depending upon the social costs of infrastructure investment and the relative growth rates of output and infrastructure.

Decentralization, Externalities, and Efficiency

Decentralization, Externalities, and Efficiency
Review of Economic Studies 62, April 1995, 223-247.

Morduch, J. Klibanoff, P.
01/01/1995

In the competitive model, externalities lead to inefficiencies, and inefficiencies increase with the size of externalities. However, as argued by Coase, these problems may be mitigated in a decentralized system through voluntary coordination We show how coordination is limited by the combination of two factors: respect for individual autonomy and the existence of private information. Together they imply that efficient outcomes can only be achieved through coordination when external effects are relatively large Moreover, there are instances in which coordination cannot yield any improvement at all, despite common knowledge that social gains from agreement exist This occurs when external effects are relatively small, and this may help to explain why coordination is so seldom observed in practice. When improvements are possible, we describe how simple subsidies can be used to implement second-best solutions and explain why standard solutions, such as Pigovian taxes, cannot be used. Possible extensions to issues arising in the structure of research joint ventures, assumptions in the endogenous growth literature, and the location of environmental hazards are also described.

Income Smoothing and Consumption Smoothing

Income Smoothing and Consumption Smoothing
Journal of Economic Perspectives 9(3), Summer 1995, 103-114.

Morduch, J.
01/01/1995

Examines the ways in which farm households in developing countries may self-insure, with a particular emphasis on the idea that farm households may seek to smooth their consumption by altering their methods of production. Quantifying the importance of risk; Consumption smoothing and risk; Income smoothing; Simplicity and complexity in low-income economies.

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