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1
Isaac, Megbolugbe, Marks Allen, and Schwartz Mary. "The Economic Theory of Housing Demand: A Critical Review." Journal of Real Estate Research 6, no. 3 (January 1, 1991): 381–93. http://dx.doi.org/10.1080/10835547.1991.12090650.
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Morley, Clive L. "Tourism Demand: Characteristics, Segmentation and Aggregation." Tourism Economics 1, no. 4 (December 1995): 315–28. http://dx.doi.org/10.1177/135481669500100401.
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This paper aims to advance the understanding of the micro-economic foundations of tourism demand theory, particularly through bringing out some of the implications of the tour characteristics approach to utility analysis, and also through explicitly linking the micro-economic theory of the individual tourist to the aggregate level demand models as actually estimated. Important implications of the tour characteristics theory are that it yields theoretical rationales for the importance of market segmentation of tourism demand, and for tourism product differentiation. Consideration of the aggregation issues in the particular context of tourism demand shows aggregation to be justified and feasible when the market is segmented. Market segmentation is shown to be theoretically important for good tourism demand models, supporting its generally observed practical usefulness. Alternatively, aggregation can be justified through a random utility argument that assumes independence of individuals' tour decisions.
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Li, Lingyan, Jiangying An, Yan Li, and Xiaotong Guo. "Multiattribute Supply and Demand Matching Decision Model for Online-Listed Rental Housing: An Empirical Study Based on Shanghai." Discrete Dynamics in Nature and Society 2020 (August 1, 2020): 1–21. http://dx.doi.org/10.1155/2020/4827503.
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The mismatch between the supply and demand of online-listed rental housing (ORH) is an important factor restricting the operational efficiency of online rental service platforms. However, extant literature pays little attention to this problem. This study proposes an ORH multiattribute supply and demand matching decision model based on the perceived utility of matching both sides of this market. The model considers the multiattribute information of ORH, such as area, transportation, rent, room, and interior decoration, and quantifies their perceived utility values based on the theory of disappointment. Thereafter, we construct the matching decision model and verify it for feasibility by applying it to Shanghai’s ORH supply and demand information—our empirical case. The results show that this method can be applied to online rental housing platforms and meet the supply and demand matching requirements to the greatest extent. The constructed model takes into account the perceptions of both supply and demand parties, may promote the effective matching of ORH supply and demand, and bears theoretical implications for the improvement of rental housing matching in ORH platforms.
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Kristensen, Gustav. "Women's Economic Progress and the Demand for Housing: Theory, and Empirical Analyses Based on Danish Data." Urban Studies 34, no. 3 (March 1997): 403–18. http://dx.doi.org/10.1080/0042098976041.
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Styhre, Alexander. "Coping with irrationality in orthodox economic theory." International Journal of Organizational Analysis 24, no. 5 (November 7, 2016): 792–810. http://dx.doi.org/10.1108/ijoa-10-2015-0931.
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Purpose The purpose of this paper is to critically assess the assumptions regarding human behaviour in orthodox neoclassical economic theory. The orthodox neoclassical economic theory prescribes rational models of human behaviour, but the strictness of the criteria, developed to promote theoretical consistency and conceptual elegance, commonly fails to fully accommodate all of the empirical material. To save the core of the orthodox neoclassical economic theory research program and to neutralize and mute criticism regarding its predictive failures, its proponents engage in expedient theorizing, the expansion of the initial theoretical framework by adding ad hoc hypotheses and/or including additional explanatory factors; in many cases, dismissed as “unnecessary complications” (as in the case of morality and ethics – two conspicuously “non-economic” concepts) in the initial formulation of theoretical propositions of the core theories. Design/methodology/approach The paper reviews a body of heterogeneous literature to introduce and examine the use of expedient theorizing in economic thinking. Findings In the present case, the hyperrationalist axiom regarding the efficacy of calculative practices to maximize individual utility is accompanied by moralist concerns (and, by implication, corrective and disciplinary action) regarding the failure to adhere to such prescriptions. Expedient theorizing, thus, becomes a key mechanism in the political economy of truth that currently grants orthodox neoclassical economic theory significant authority to inform policy-making in substantial ways and considerable prestige. Originality/value The orthodox neoclassical economic theory constitutes the blueprint for policy-making and institutional change, and, therefore, the key economic ideas being the constitutive elements of the contemporary economy demand scholarly attention. The paper thus points at theoretical inconsistencies in the orthodox neoclassical economic theory and introduces the concept of expedient theorizing as its remedy.
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Cervelló-Royo, Roberto, Marina Segura, Regina García-Pérez, and Baldomero Segura-García del Río. "An Analysis of Preferences in Housing Demand by Means of a Multicriteria Methodology (AHP). A More Sustainable Approach." Sustainability 13, no. 14 (July 6, 2021): 7550. http://dx.doi.org/10.3390/su13147550.
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This paper examines key aspects of the behavior of housing demand from a sustainable standpoint. Most studies have mainly focused on housing supply, looking at quantitative predictions without considering the qualitative relationship found between housing values and housing demand on a sustainable and microeconomic scale. We used a multicriteria decision methodology (analytic hierarchy process—AHP) for the analysis of preferences in demand, based on the theory of multi-attribute utility of housing, to determine the relative importance of each characteristic of housing and its influence on the decision-making process. For this purpose, we carried out the study over three main groups of stakeholders in the housing market: real estate surveyors, real estate agents, and housing buyers (the latter representing the housing demand). Results show that although there might be some slight discrepancies among the three groups in the decision-making process and the weighting of housing attributes, the three groups agree in most of the process, especially when defining the criteria and the importance that each criterion has on the process of valuation. This study provides important managerial and sustainable implications for the real estate market related to urban public policy, as we highlight which criteria are most preferred.
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FRANCO, J. Agustín. "PRINCIPLES OF ECONOMETHICS FROM THE GIFFEN DEMAND." Technological and Economic Development of Economy 21, no. 4 (February 5, 2014): 557–76. http://dx.doi.org/10.3846/20294913.2013.876686.
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This paper raises an approach to the study of consumer behaviour and markets with a particular emphasis on agricultural commodities. It develops an analysis of demand for certain products during a recent economic recession in Spain by showing the behaviour of some of them as Giffen goods in some years. According to the theory of Giffen demand, there is a direct (positive) relationship between price and the quantity demanded. Thus, the income effect outweighs the substitution effect. The main contributions of this work can be summarized in the next three points: 1) This paper studies the consumer behaviour from a Giffen perspective, beyond a traditional and rational utility approach; 2) It also suggests a framework to analyse several socioeconomic proposals and theories related to the sustainability and Human Rights-based ethic level (intrinsic to Giffen behaviour); 3) Finally, this theory is a significant contribution to design better economic policies. The analysis of Giffen phenomenon has greater explanatory power than the classical theory of Marshall. It also helps to reveal a number of important effects that are usually ignored and that could contribute to clarify some current economic phenomena.
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Gorbunov, V. K., L. A. Kozlova, and A. G. Lvov. "To the Problem of Constructing Analytical Indexes of Market Demand: A Variative Approach." Voprosy statistiki 27, no. 3 (June 30, 2020): 65–80. http://dx.doi.org/10.34023/2313-6383-2020-27-3-65-80.
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The article develops methods for constructing economic (analytical) indexes in the framework of the holistic theory of market demand, built in recent years. By this, the economic indexes presented in the world literature within the framework of the theory of individual demand and, accordingly, related to households, acquire practical value.The introduction provides a brief overview of the main problems of modern indexology and the implementation of an economic approach dating back to the classical work of 1924 by the Soviet statistician A.A. Konüs. The properties of the most well-known «formula» indexes of Laspeyres, Paasche, and Fischer with respect to the fulfillment of the Fisher test criteria are described. These indexes play an important role in the methods proposed by the authors for constructing analytical indexes, which are determined through the function of consumer expenditures. The latter is determined by a utility function that rationalizes trade statistics. The rationalizing utility function is constructed ambiguously, and the corresponding task should be specified. Methods for its solution are proposed, developed within a non-parametric demand analysis of Afriat-Varian. The core of this analysis is the system of linear Afriat’s inequalities that determine the values of the utility function and marginal utility corresponding to statistical demand. This system can be inconsistent and unstable with respect to variations of non-exact demand statistics. In the case of compatibility, inequalities have many solutions, and the choice of different solutions of inequalities gives different values of analytical indexes. The authors suggest three types of tasks for the stable solution of Afriat’s inequalities, which define indexes with characteristics of optimism (low price indexes and high quantity indexes), pessimism (vice versa) and objectivity.Therefore, the problem of increasing the objectivity of consumer demand indexes receives a theoretically justified toolbox methods for calculating analytical market demand indexes that take into account, in contrast to formula indices, consumer preferences.
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Ömer, Özlem. "Dynamics of the US Housing Market: A Quantal Response Statistical Equilibrium Approach." Entropy 20, no. 11 (October 30, 2018): 831. http://dx.doi.org/10.3390/e20110831.
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In this article, we demonstrate that a quantal response statistical equilibrium approach to the US housing market with the help of the maximum entropy method of modeling is a powerful way of revealing different characteristics of the housing market behavior before, during and after the recent housing market crash in the US. In this line, a maximum entropy approach to quantal response statistical equilibrium model (QRSE) is employed in order to model housing market dynamics in different phases of the most recent housing market cycle using the S&P Case Shiller housing price index for 20 largest- Metropolitan Regions, and Freddie Mac housing price index (FMHPI) for 367 Metropolitan Cities for the US between 2000 and 2015. Estimated model parameters provide an alternative way to understand and explain the behaviors of economic agents, and market dynamics by questioning the traditional economic theory, which takes assumption for the behavior of rational utility maximizing representative agent with self-fulfilled expectations as given.
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Martínez, F. J. "The Bid—Choice Land-Use Model: An Integrated Economic Framework." Environment and Planning A: Economy and Space 24, no. 6 (June 1992): 871–85. http://dx.doi.org/10.1068/a240871.
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Alonso's bid-rent theory and the discrete-choice random-utility theory appear in the literature as well-established alternative frameworks to model urban land use. As both approaches share the support of microeconomic theory, the main issue addressed in this paper is the theoretical comparison of the two approaches. It is demonstrated that in perfectly competitive land markets these approaches are equivalent, therefore they should be understood as complementary rather than alternative. The case of markets subject to speculative land prices is then explored for the cases of speculative supply and/or speculative demand, with the discovery that both approaches are theoretically equivalent in every case studied, thus extending the previous conclusion for the general case. These conclusions provide the base for an integrated and more comprehensive urban economic theory and for the bid-choice land-use model.
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Hoderlein, Stefan, and Arthur Lewbel. "REGRESSOR DIMENSION REDUCTION WITH ECONOMIC CONSTRAINTS: THE EXAMPLE OF DEMAND SYSTEMS WITH MANY GOODS." Econometric Theory 28, no. 5 (August 16, 2012): 1087–120. http://dx.doi.org/10.1017/s0266466612000412.
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Microeconomic theory often yields models with multiple nonlinear equations, nonseparable unobservables, nonlinear cross equation restrictions, and many potentially multicolinear covariates. We show how statistical dimension reduction techniques can be applied in models with these features. In particular, we consider estimation of derivatives of average structural functions in large consumer demand systems, which depend nonlinearly on the prices of many goods. Utility maximization imposes nonlinear cross equation constraints including Slutsky symmetry, and preference heterogeneity yields demand functions that are nonseparable in unobservables. The standard method of achieving dimension reduction in demand systems is to impose strong, empirically questionable economic restrictions such as separability. In contrast, the validity of statistical methods of dimension-reduction such as principal components has not hitherto been studied in contexts like these. We derive the restrictions implied by utility maximization on dimension-reduced demand systems and characterize the implications for identification and estimation of structural marginal effects. We illustrate the results by reporting estimates of the effects of gasoline prices on the demands for many goods, without imposing any economic separability assumptions.
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Carter, Michael, Ghada Elabed, and Elena Serfilippi. "Behavioral economic insights on index insurance design." Agricultural Finance Review 75, no. 1 (May 5, 2015): 8–18. http://dx.doi.org/10.1108/afr-03-2015-0013.
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Purpose – While behavioral economic experiments have uncovered a wealth of insights concerning how people decide in the face of risk and uncertainty, the implications of these insights for the demand for agricultural insurance are under-explored. The purpose of this paper is to report on results from two recent field experiments that measure the extent to which farmer behavior departs from the predictions of expected utility theory and derives the implications of these departures for insurance demand. Design/methodology/approach – Framed behavioral field experiments were played with random samples of West African Cotton farmers who lived in areas that were being incorporated into a cotton insurance pilot program. Findings – Substantial numbers of farmers depart from expected utility behavior in ways that predict excess sensitivity to uncovered basis risk in insurance contracts; and, the fact that insurance premiums are typically framed as certain and unavoidable, while benefits are unknown and stochastic. Originality/value – Using novel field experimental methods, the work summarized here indicates that more careful design of index insurance contracts in conformity with the findings of behavioral economics could result in larger contract uptake and, ultimately, larger development impacts.
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Öztürk, Akin, Yunus Emre Kapusuz, and Harun Tanrıvermiş. "The dynamics of housing affordability and housing demand analysis in Ankara." International Journal of Housing Markets and Analysis 11, no. 5 (October 1, 2018): 828–51. http://dx.doi.org/10.1108/ijhma-08-2017-0079.
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Purpose Information about the current and future composition of the population in terms of household size and the desired housing preferences provides a good foundation for determining current and future housing needs. The policy-makers and developers can also use such knowledge as a starting point in their housing and commercial real estate investment decisions. In Turkey, urbanization and housing issues have accompanied the growth of industrialization. Within the scope of the country’s urbanization history, various instruments have been used to solve the lack of housing issues. The constructed houses should be accessible or affordable by fixed-income earners in the middle and lower socio-economic classes, who are mostly excluded. In particular, the real estate development sector has taken manageable risks by closely following the changing social and economic conditions and developing a variety of housing concepts. The purpose of this paper is to investigate the housing sector situation and affordability issues and then use time series analysis to present relationships between macroeconomic factors and housing demand in Ankara region. Design/methodology/approach The approach uses a survey of recent housing projects cover 2016 to 2018 for housing affordability conditions. Also, the study uses the Johansen co-integration test, variance analysis and impulse-response test to explain the relationships between macroeconomic indicators and housing demand for Ankara. Findings According to the results of time series analysis, the macroeconomic factors are affecting the demand and the number of houses sold. The research results try to find a negative or positive correlation between the numbers of houses sold and the monthly macroeconomic variables. Mortgage interest rates, usage permits, construction permits and household expenditure were found the most correlated with housing sold as a representative proxy of housing demand. This paper claims that current housing affordability is related to current housing supply and demand variables. If housing supply (as construction and usage permits) and income (as interest rates and expenditures) are at favorable levels, then housing transaction volumes increase. Research limitations/implications This paper highlights the need to examine how to assist developers to more rapidly develop knowledge and experience to reflect the implications of change in practice. This paper is formulating a housing demand model for real estate developers, using number of house sales and other administrative statistics in Ankara region. Practical implications If macroeconomic conditions are stable, then this encourages consumers to invest for housing whether they are affordable or not. According to the results, key factors of housing market are based on interest rates, income expectation and gaining social status. The consumers anymore not only want to buy a house to live and also want to gaining prestige. Originality/value The paper not only shows that current price is affordable or not but also supports why price is going up although price is not affordable. The findings identify how the market is developing and adhering to a product model development theory. The paper is different from previous studies because of the use of monthly income and supply proxies together in Turkey with time series model. These results are close to the theoretical expectations and provide good indicators for policy-makers.
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Shi, Song, Vince Mangioni, Xin Janet Ge, Shanaka Herath, Fethi Rabhi, and Rachida Ouysse. "House Price Forecasting from Investment Perspectives." Land 10, no. 10 (September 26, 2021): 1009. http://dx.doi.org/10.3390/land10101009.
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Housing market dynamics have primarily shifted from consumption- to investment-driven in many countries, including Australia. Building on investment theory, we investigated market dynamics by placing investment demand at the center using the error correction model (ECM). We found that house prices, rents, and interest rates are cointegrated in the long run under the present value investment framework. Other economic factors such as population growth, unemployment, migration, construction activities, and bank lending were also important determinants of the housing market dynamics. Our forecasting results show that the Sydney housing market will continue to grow with no significant price decline in the foreseeable future.
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Tanaka, Yasuhito. "An Elementary Mathematical Model for MMT (Modern Monetary Theory)." Research in Applied Economics 13, no. 3 (September 5, 2021): 1. http://dx.doi.org/10.5296/rae.v13i3.18989.
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In recent years, a school of economics called MMT (Modern Monetary Theory) has been attracting attention, but it has not been analyzed theoretically or mathematically. This study aims to provide a theoretical basis for the skeleton of the MMT argument, while maintaining the basics of the neoclassical microeconomic framework, such as utility maximization of consumers by means of utility functions and budget constraint, profit maximization of firms in monopolistic competition, and equilibrium of supply and demand of goods. Using a simple static model that includes economic growth due to technological progress, we will argue that: 1) a continuous budget deficit is necessary to maintain full employment when the economy is growing, and that this deficit does not have to be covered by future surpluses; 2) Inflation is caused when the actual budget deficit exceeds the level necessary and sufficient to maintain full employment. In order to avoid further inflation, it is necessary to maintain a certain level of budget deficit; 3) A shortfall in the budget deficit leads to recession and involuntary unemployment. To recover from this, a budget deficit that exceeds the level necessary to maintain full employment is required. However, since a continuous budget deficit is necessary after full employment is restored, the deficit created to overcome the recession does not need to be covered by future budget surpluses, nor should it be.
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Zhang, Wei-Bin. "Economic Development and International and Interregional Tourism." Economic and Regional Studies / Studia Ekonomiczne i Regionalne 13, no. 4 (December 1, 2020): 375–87. http://dx.doi.org/10.2478/ers-2020-0028.
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SummarySubject and purpose of work: Tourism was the fastest growing industry until the outbreak of Covid-2019. Nevertheless, there are a few studies on how the industry interacts with the rest of economies within a comprehensive analytical framework. The main concern of this study is how international and interregional tourism interacts with national economic development and economic structural change. Tourism and economic growth are investigated in a multi-regional small open economy which is perfectly competitive.Materials and methods: National economy consists of multiple regions and each region has three sectors: industry, service, and housing. Production side is the same as in the neoclassical growth theory. Households move freely between regions, equalizing utility level between regions by selecting housing, goods, tourism, and saving. A region’s amenity is endogenously related to the region’s population.Results: We explicitly solve the dynamics of the multi-regional economy. The system has a unique stable equilibrium point.Conclusions: We simulate the motion of the model and examine the effects of changes in the rate of interest, foreigners’ preference for visiting a region, a region ‘s total productivity of the service sector, domestic consumers’ preference for visiting a region, as well as the propensity to save, the propensity to consume regional services and housing.
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Zhang, Wei-Bin. "Economic Development and International and Interregional Tourism." Economic and Regional Studies / Studia Ekonomiczne i Regionalne 13, no. 4 (December 1, 2020): 375–87. http://dx.doi.org/10.2478/ers-2020-0028.
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Summary Subject and purpose of work: Tourism was the fastest growing industry until the outbreak of Covid-2019. Nevertheless, there are a few studies on how the industry interacts with the rest of economies within a comprehensive analytical framework. The main concern of this study is how international and interregional tourism interacts with national economic development and economic structural change. Tourism and economic growth are investigated in a multi-regional small open economy which is perfectly competitive. Materials and methods: National economy consists of multiple regions and each region has three sectors: industry, service, and housing. Production side is the same as in the neoclassical growth theory. Households move freely between regions, equalizing utility level between regions by selecting housing, goods, tourism, and saving. A region’s amenity is endogenously related to the region’s population. Results: We explicitly solve the dynamics of the multi-regional economy. The system has a unique stable equilibrium point. Conclusions: We simulate the motion of the model and examine the effects of changes in the rate of interest, foreigners’ preference for visiting a region, a region ‘s total productivity of the service sector, domestic consumers’ preference for visiting a region, as well as the propensity to save, the propensity to consume regional services and housing.
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Peng, Yichen, Jing Zhou, Qiang Xu, and Xiaoling Wu. "Cost Allocation in PPP Projects: An Analysis Based on the Theory of “Contracts as Reference Points”." Discrete Dynamics in Nature and Society 2014 (2014): 1–6. http://dx.doi.org/10.1155/2014/158765.
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In recent years, the demand for infrastructure has been largely driven by the economic development of many countries. PPP has proved to be an efficient way to draw private capital into public utility construction, where ownership allocation becomes one of the most important clauses to both the government and the private investor. In this paper, we establish mathematical models to analyze the equity allocation problem of PPP projects through a comparison of the models with and without the effects of the theory of “contracts as reference points.” We then derive some important conclusions from the optimal solution of the investment ratio.
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Zhang, Wei‐Bin. "Economic growth with space and fiscal policies with housing and public goods." Journal of Economic Studies 38, no. 4 (September 6, 2011): 452–82. http://dx.doi.org/10.1108/01443581111160897.
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PurposeThis study aims to examine dynamic interactions among economic growth, geography and the housing market with public goods financed by the government. A general dynamic equilibrium model of an isolated economy with economic geography, local public goods and capital accumulation is to be constructed. The economy has three sectors, supplying industrial goods, housing, and local public goods. The model synthesizes the main ideas in neoclassical growth theory, the Alonso urban model, and the Muth housing model in an alternative framework to the traditional growth theory.Design/methodology/approachThe model is based on the neoclassical growth theory with an alternative approach to household behavior. The paper shows how to solve the dynamics of the economic system and simulate the model to demonstrate dynamic interactions among economic growth, housing market, residential distribution and public goods over time and space.FindingsThe paper simulates equilibrium and motion of the spatial economy with Cobb‐Douglas production and utility functions. The simulation demonstrates, for example, that, as the tax rate on the land income is increased, the total capital stocks and the stocks employed by the three sectors are increased, the rate of interest falls and the output of the industrial sector and the wage rate are increased, the land devoted to local public goods falls and the land rent and housing rent rise over space, the consumption level of the industrial goods and the total expenditures on the public goods are increased.Practical implicationsThe paper provides some possible implications of the model for complicated consequences of government policy over time and space. In particular, the paper shows that a change in government policy not only has a macroeconomic impact over time, but also affects the economic geography of the national economy.Originality/valueThe paper offers insights into the linkage among growth, national public policies and economic geography.
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Arestis, Philip, and Ana González. "The housing market-bank credit relationship: Some thoughts on its causality." Panoeconomicus 61, no. 2 (2014): 145–60. http://dx.doi.org/10.2298/pan1402145a.
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The dominance of the orthodox paradigm over the last decades prior to the ?great recession? left no room for the notion of ?endogenous money? in the development of economic theory. However, this alternative direction of the causality of demand for money-credit and economic activity has been present in the heterodox economic thought since the 1930s and should be reconsidered in the current situation. In this context, the numerous episodes of housing bubbles, which have been taking place since 2007, create the perfect ?environment? to explore the notion of ?dynamic monetized production economy?. Our theoretical framework is estimated econometrically by using a sample of 6 developed economies which spans from 1970 to 2011. The non-stationary ?nature? of our data recommends the use of cointegration techniques (S?ren Johansen 1995) in order to estimate our models.
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Mikaeeli, Ali Reza, Mostafa Fahkravar, Meysam Esfahani, Salman Fadaei, and Ali Karimi. "The Theory Of Constraints: A Comparative assessment." Environment Conservation Journal 16, SE (December 5, 2015): 539–46. http://dx.doi.org/10.36953/ecj.2015.se1664.
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The worldwide economic reorganisation of the last decade has regularly been accompanied by appeals to concepts of lean manufacturing and flexible systems. These generally imply a scaling of productive and operating capacity to match demand and current throughput levels. The issue of how to manage scarce capacity has risen in priority both because of a constant search for greater efficiency and because of imbalances between the supply and demand of many resources. Multiple constraints have emerged throughout the Irish economy for individual firms, and for entire sectors. In “The Goal” Eli Goldratt reinvigorated traditional optimisation insights by presenting them in the repackaged form of the Theory of Constraints (Goldratt and Cox ,1993). This management best seller took the form of a thriller following the struggle of plant manager with 90 days to save his loss making operation from shutdown. In it Goldratt and Cox attack cost accounting as the “enemy number one of productivity” and instead called for a holistic process of ongoing improvement integrating techniques such as MRP, Just in Time and Statistical Process Control. This paper examines in detail the relative utility of the Theory of Constraints compared to traditional management accounting approaches to resource utilisation in aiding decisionmaking. It also considers the propagation and evolution of the Theory of Constraints and critically examines the response it has generated in the accounting and management literature. The continuing survival of cost accounting in the face of frequent assaults similar to Goldratt’s may in part be due to the ability of the discipline to adapt its practices to integrate the mandated improvements into practice and educational curricula. The paper reflects on the process by which new ideas are assimilated into the conventional management wisdom based on this example.
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Prastacos, P. "An Integrated Land-Use—Transportation Model for the San Francisco Region: 1. Design and Mathematical Structure." Environment and Planning A: Economy and Space 18, no. 3 (March 1986): 307–22. http://dx.doi.org/10.1068/a180307.
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This is the first of two papers presenting the structure and the empirical estimation of a planning land-use—transportation model for the San Francisco Bay Area. The model is based on random utility theory and considers in an integrated way the location of urban economic activity and housing, and urban travel. The model is formulated as a nonlinear optimization problem and is shown to result in expressions which are consistent with behavior at the individual level.
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Himmelberg, Charles, Christopher Mayer, and Todd Sinai. "Assessing High House Prices: Bubbles, Fundamentals and Misperceptions." Journal of Economic Perspectives 19, no. 4 (November 1, 2005): 67–92. http://dx.doi.org/10.1257/089533005775196769.
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How does one tell when rapid growth in house prices is caused by fundamental factors of supply and demand and when it is an unsustainable bubble? In this paper, we explain how to assess the state of house prices—both whether there is a bubble and what underlying factors support housing demand—in a way that is grounded in economic theory. In doing so, we correct four common fallacies about the costliness of the housing market. For a number of reasons, conventional metrics for assessing pricing in the housing market such as price-to-rent ratios or price-to-income ratios generally fail to reflect accurately the state of housing costs. To the eyes of analysts employing such measures, housing markets can appear “exuberant” even when houses are in fact reasonably priced. We construct a measure for evaluating the cost of home owning that is standard for economists—the imputed annual rental cost of owning a home, a variant of the user cost of housing—and apply it to 25 years of history across a wide variety of housing markets. This calculation enables us to estimate the time pattern of housing costs within a market. As of the end of 2004, our analysis reveals little evidence of a housing bubble.
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BuHamdan, Samer, Aladdin Alwisy, Ahmed Bouferguene, and Mohamed Al-Hussein. "The application of multi-attribute utility theory for a market share-based design evaluation." International Journal of Housing Markets and Analysis 12, no. 6 (November 4, 2019): 985–1003. http://dx.doi.org/10.1108/ijhma-11-2018-0087.
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PurposeThe purpose of this paper is to use the concepts of the multi-attribute utility theory to develop a model to evaluate the design of low-density residential units to increase the profit of the company from a certain design, by assessing the changes in the market shares as a result of the built unit’s attributes.Design/methodology/approachThe proposed platform consists of two stages: Stage I or relational model development and Stage II or design evaluation. Stage I is concerned with developing a mathematical model that links design variables (e.g. the R-Value of the building envelope and construction material) with the assessment attributes (e.g. price and carbon emissions). Stage II ensures the fulfillment of the corporation’s goals in maximizing profit and market shares using multi-attribute utility theory.FindingsThe application of the proposed model on a case study – a single-family house – shows that reducing the selling price of the unit is not always the best marketing strategy builders should pursue to increase their sales and accordingly their profit, as accounting for other attributes (e.g. performance, operational cost and environmental impact) leads to larger changes in the market shares and accordingly in profit.Research limitations/implicationsThe limitations of this research are manifested in the following points: it does not account for the impact of the marketing campaigns on the market shares; it considers the profit as a percentage of the construction cost; and it has not been validated on high-density residential buildings.Practical implicationsThis research provides speculative builders with a platform that allows the objective evaluation of houses’ designs prior to introducing them to the market so builders can increase their market shares and consequently their profit. The proposed platform also contributes to increasing the sustainable performance of the housing industry, as it allows for the assessment of the design against economic, environmental and social attributes concurrently, which ensures a balanced consideration of the built houses on sustainability pillars.Social implicationsThe proposed platform for design evaluation extends the assessment attributes beyond the traditionally considered economic and environmental attributes. By doing so, it assists decision-makers in evaluating the potential social influence of the proposed design and, as a result, reduces the unwanted impact.Originality/valueThis research combines the concepts of multi-attribute utility with market studies to develop an objective decision support tool for evaluating the design of speculative houses to increase the sustainable performance of the builders without compromising on their profit.
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Chen, Hong, and Shu Ai Shi. "Consumer Utility Function Analysis of Low Carbon Products." Advanced Materials Research 113-116 (June 2010): 584–87. http://dx.doi.org/10.4028/www.scientific.net/amr.113-116.584.
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Low carbon economy is gradually achieving global consensus by increasing number of countries. It is the basic way to address climate change and coordinate socio-economic development. The low carbon road with Chinese characteristic is the hotspot of academic research and it is a great challenge too. But few scholars did researches in low-carbon economy development from consumer preference. This paper analyzed the dual utility structure characteristic of low-carbon products from the perspective of low carbon products preference. According to consumer behavior theory, it concludes consumers have ultra-satisfaction consumption preference towards low-carbon products. The utility function has a positive real root which is not one. The paper hopes to provide the theoretical basis for analyzing market demand of low-carbon economy with the model.
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DING, Chengri, and Yi NIU. "Which is Driver? Land Price or Housing Price: Examining the Urban Spatial Structure of Beijing." Chinese Journal of Urban and Environmental Studies 04, no. 03 (September 2016): 1650026. http://dx.doi.org/10.1142/s2345748116500263.
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This paper examines the spatial structure of Beijing to determine the relationship between land price and housing price. The purposes of the paper are two-fold. One is to help to better understand the roles in which land markets play in urban development and the other is to explain skyrocketing land prices, particularly in the first decade of the 21st century. It has been debated whether land supply is the main cause for skyrocketing land prices. This paper, however, concludes that it is housing price that drives up skyrocketing land prices. The analytical framework to draw the conclusion is to investigate urban spatial development patterns to see if they are consistent with the outcomes of urban model/theory in which land is treated as a production factor for housing and land demand is a derived demand. If the answer is yes, we can conclude the driving role of housing prices on land prices, even though we recognize the effect of land supply restrictions on land prices. So the paper first examines the urban spatial pattern of Beijing, with reference to urban economic model. And then the paper estimates the parameters of a CES-type housing production function. The paper conducts numerical simulation to illustrate how a small increase in housing prices will lead to big increases in land prices. The paper concludes (1) effective roles of price mechanism in land and urban development as manifested by relatively fast decay of land prices compared to housing prices, as expected according to urban theory; and (2) a 25% increase in housing price can lead to 50–125% increases in land prices, depending on the distance to city center. We believe that our finding has substantial policy implications in China.
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Zheng, Shengqin, Ye Cheng, and Yingjie Ju. "Understanding the Intention and Behavior of Renting Houses among the Young Generation: Evidence from Jinan, China." Sustainability 11, no. 6 (March 13, 2019): 1507. http://dx.doi.org/10.3390/su11061507.
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In the last decade, the rapid growth of China’s economy and population has generated a large demand for housing. Increasingly high prices have become the main obstacle for homeownership, especially for the young generation. In this study, we investigate the determinants of rental housing among the young generation in Chinese cities. A theoretical model and hypotheses were proposed by extending the theory of planned behavior (TPB). An empirical analysis was conducted via the structural equation model validation to reveal the following conclusions. (1) Attitude towards behavior (perceived usefulness and perceived usability) are the most important factors influencing renting behavior. (2) Mandatory policies and regulatory pressures promote renting behavior. (3) The government’s economic incentives have a significant impact on perceptual behavior control and indirectly affect behavioral intentions through perceptual behavior control. Based on the above conclusions, this study proposed recommendations for the government and businesses. This study contributed to existing theory and practice by providing useful insights into the influences on the young generation’s renting intentions. Furthermore, these findings provide the government with implications for facilitating the sustainability of the housing market.
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Sehgal, M. L. "Marxian Socio-Political Economic Theory: Two Schools of Thought: Part-II." Advances in Social Sciences Research Journal 7, no. 5 (June 5, 2020): 452–77. http://dx.doi.org/10.14738/assrj.75.8280.
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Marx, an idealist, who believed ‘Capitalism to be an Evil’ and ‘Socialism a Harbinger of Prosperity’, propagated his economic ideas whose basic Pillar was the Labor Theory of Value (LTV) which included Surplus –Value (SV), Falling Tendency of Rate of Profit, Price of a Commodity, Supply and Demand’ Relation, Inflation and Interest Rates. His Socio-political thought included the state would be the Monopolist without anybody owning any private property with religion being the opiate of the masses. He preached class struggle but ignored the middle class. He wanted to do away the State even with the violent Revolution. All this brought him in conflict both with his contemporary economists as well as with the future generation of economists. The 150 old Socio-political Economic Theory of Marx, though a noble idea, could not stand the test of the times and started falling under its weight. The duality in the minds of the people about its utility and applicability is best described by the celebrated Physicist- Einstein’s viewpoint which speaks volumes of the aura of the man named Karl Heinrich Marx:
“I am convinced (that) there is only one way to eliminate these grave evils, namely through the establishment of a socialist economy, accompanied by an educational system which would be oriented toward social goals. In such an economy, the means of production are owned by society itself and are utilized in a planned fashion. A ‘planned economy’, which adjusts production to the needs of the community, would distribute the work to be done among all those able to work and would guarantee a livelihood to every man, woman, and child”
But look at the lurking fear in the mind of the genius about the ‘planned economy’ as:
“Nevertheless, it is necessary to remember that a planned economy is not yet socialism. A planned economy as such may be accompanied by the ‘complete enslavement of the individual’. The achievement of socialism requires the solution of some extremely difficult socio-political problems: how is it possible, because of the far-reaching ‘centralization of political and economic power’, to ‘prevent bureaucracy from becoming all-powerful and overweening’? How can the ‘rights of the individual be protected’ and therewith a ‘democratic counterweight to the power of bureaucracy be assured’?”
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Bhattacharya, Debopam. "The Empirical Content of Binary Choice Models." Econometrica 89, no. 1 (2021): 457–74. http://dx.doi.org/10.3982/ecta16801.
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An important goal of empirical demand analysis is choice and welfare prediction on counterfactual budget sets arising from potential policy interventions. Such predictions are more credible when made without arbitrary functional‐form/distributional assumptions, and instead based solely on economic rationality, that is, that choice is consistent with utility maximization by a heterogeneous population. This paper investigates nonparametric economic rationality in the empirically important context of binary choice. We show that under general unobserved heterogeneity, economic rationality is equivalent to a pair of Slutsky‐like shape restrictions on choice‐probability functions. The forms of these restrictions differ from Slutsky inequalities for continuous goods. Unlike McFadden–Richter's stochastic revealed preference, our shape restrictions (a) are global, that is, their forms do not depend on which and how many budget sets are observed, (b) are closed form, hence easy to impose on parametric/semi/nonparametric models in practical applications, and (c) provide computationally simple, theory‐consistent bounds on demand and welfare predictions on counterfactual budge sets.
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Ivanov, Mile, Mihail Petkovski, and Elena Naumovska. "Money-in-the-Utility-Function: Model Simulations and Money Demand Estimation in the Case of the Republic of Macedonia." South East European Journal of Economics and Business 9, no. 2 (March 1, 2015): 7–20. http://dx.doi.org/10.2478/jeb-2014-0006.
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Abstract This paper aims to reassess and analyze the dynamic interactions between money, prices and economic activity in the case of the Republic of Macedonia. The first part of the paper simulates the property of the superneutrality of money, based on Sidrauski’s (1967) framework. The second part presents the money demand estimations on the monetary aggregate M2 for the period from 2002 to 2012, using the cointegration approach. Following Cziráky and Gillman (2006), we examine the validity of the Fisher equation in the case of Macedonia. The Fisher equation does not hold in the case of Macedonia, so the inflation rate must be included in the money demand specification. The estimated cointegration equation is in line with economic theory. The cointegration equation shows income elasticity less than unity (0,81), small and negative interest rate semi-elasticity (-0.17) and negative elasticity with respect to inflation. The short-run dynamics reveal that only 2,70% of the disequilibrium is corrected in a single quarter. The properties of stability imply that the M2 aggregate may serve as a proper policy indicator.
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Yang, Yu, Hua Zhou, Jun Hui Liu, and Yun Feng. "Dynamic Pricing Strategy and Optimal Resource Selection Strategy Based on Credibility Model." Applied Mechanics and Materials 668-669 (October 2014): 1615–20. http://dx.doi.org/10.4028/www.scientific.net/amm.668-669.1615.
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With the gradual development of Cloud Computing, the model of work and business will fundamentally change in the future. Current market trading mechanism under the cloud computing environment is lacking in flexibility and most of companies adopt a fixed-rate pricing model, which is difficult to meet the different needs of users. Based on cloud bank model, this paper introduces economic theory to provide a theoretical basis for the development of resource prices and propose a dynamic pricing strategy and maximize utility resource selection strategy based on market supply and demand and credit for cloud bank. In the last part of this paper, we use simulation platform to do a simple experiment to test this dynamic pricing strategy. Experiment result shows the pricing strategy could adjust computing resource prices automatically under the general market price rule conditions and maximize utility resource selection strategy could get the max utility for resource consumers.
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Mata, Maria Eugénia. "Cardinal Versus Ordinal Utility: António Horta Osório's Contribution." Journal of the History of Economic Thought 29, no. 4 (December 2007): 465–79. http://dx.doi.org/10.1080/10427710701666610.
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The history of economic thought remembers António Horta Osório for Schumpeter's reference to him in the History of Economic Analysis, in the context of a general appraisal of available works using mathematical instruments and language. This, however, does not do him justice, as he should also be praised for his pioneering interpretation of Pareto's general equilibrium. According to Stigler (1965), the definitive substitution of the cardinal utility hypothesis for the ordinal utility perspective was achieved by Johnson (1913) and Slutsky (1915). Weber (2001) discusses how far Pareto used cardinality, elects Slutsky (1915) as a pioneer of demand theory and prefers to reserve to R. G. Allen (1932–34), L. R. Klein and H. Rubin (1947–48), Samuelson (1947–48), R. C. Geary (1950–51), and Richard Stone (1954) the role of establishing ordinal utility in studying the utility function. This paper shows that Osório (1911) considered the subject of ordinalism before Johnson and Slutsky addressed the issue, as he had rejected the possibility of measuring utility and clearly stated that general equilibrium is not affected if cardinality is replaced by the ordinal conception for utility, according to Pareto's last formulation. Upon reading his book it becomes clear that not only was he perfectly aware of Edgeworth's contribution on the utility indifference curves, but also of Pareto's attempts to preserve general equilibrium from Fisher's criticism against cardinalism. Historians of economic thought have forgotten one of the early twentieth-century neoclassical economists. In this way the History of Economics has neglected an interesting proof of the consolidation of the Paretian ideas on ordinality, an issue that was an exciting and uncharted territory at that moment.
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Aminu Ahmed, Aliyu, and Ruqayya Aminu Muhammad. "RATIONALITY OR IRRATIONALITY? DECISION TO QUIT A JOB TO START A BUSINESS." International Journal of Advanced Research 9, no. 08 (August 31, 2021): 342–46. http://dx.doi.org/10.21474/ijar01/13271.
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The paper discusses rationality and decision making with a critical reflection on decisions by employees to quit jobs and set up fragile, micro, and rival businesses. This is a common phenomenon in management consulting businesses in especially emerging economies, where the demand for consultancy services is ballooning. The concepts of decision making and factors that influence decision making were discussed. Rationality and irrationality within the context of economics were briefly defined and theories such as (1) The utility theory , (2) The utility maximization theory and (3)The classical decision theory were used to explain the phenomenon. It was found that reasons for quitting or staying in a management consulting job is not only motivated by preparedness or readiness, rather a complex array of factors, some of which are observable and explainable while others may be attributable to complex cognitive processes that cannot be easily observed and explained. Deciding to leave a job is a complex but intentional rational decision that is influenced by many factors, some of which are observable, environmental, and cognitive. It is in the nature of the economic man to always decide, consequences of which might be sometimes predictable or influenced by events outside of the decision-makers control.
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Fernández-Zamudio, Maria Angeles, Maria Dolores De-Miguel, and Pedro Caballero. "Water Demand Analysis for Tree Crops in Spanish Mediterranean Farms." Journal of Agricultural and Marine Sciences [JAMS] 11 (January 1, 2006): 29. http://dx.doi.org/10.24200/jams.vol11iss0pp29-36.
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Olive, vine and almond in rainfed farming systems are the most traditional crops in the large inland extensions of the Spanish Mediterranean. Their economic contributions enable farming activities to be maintained meaning that the villages remain inhabited. In the rainfed-farms in the Mediterranean regions it is possible to find only a certain proportion of the farms with some type of irrigation system. Given the water scarcity, the aim of this work is to determine the impact that an irrigationwater pricing policy would have on these regions, as outlined in the European Water Framework Directive. After analysing the direct effect water price would have on the net margin in these crops, demand functions have been obtained, applying the Multiattribute Utility Theory. The calculations, with reference to a farm that is representative of these regions, have been applied to two model scenarios, each with a different level of mechanization. Results show the impact on economic, social and environmental aspects of the pricing policy under the current water allotment. The work is completed by analysing the different contexts of irrigation-water availability on the farm. The study leads to the conclusion that increasing mechanization may be the most straightforward strategy to ensure the survival of these farms in the short to medium term if the current trend of increasing irrigation-water prices is consolidated.
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Grier, Karissa, Jennie L. Hill, Felicia Reese, Constance Covington, Franchennette Bennette, Lorien MacAuley, and Jamie Zoellner. "Feasibility of an experiential community garden and nutrition programme for youth living in public housing." Public Health Nutrition 18, no. 15 (February 23, 2015): 2759–69. http://dx.doi.org/10.1017/s1368980015000087.
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AbstractObjectiveFew published community garden studies have focused on low socio-economic youth living in public housing or used a community-based participatory research approach in conjunction with youth-focused community garden programmes. The objective of the present study was to evaluate the feasibility (i.e. demand, acceptability, implementation and limited-effectiveness testing) of a 10-week experiential theory-based gardening and nutrition education programme targeting youth living in public housing.DesignIn this mixed-methods feasibility study, demand and acceptability were measured using a combination of pre- and post-programme surveys and interviews. Implementation was measured via field notes and attendance. Limited-effectiveness was measured quantitatively using a pre–post design and repeated-measures ANOVA tests.SettingTwo public housing sites in the Dan River Region of south central Virginia, USA.SubjectsForty-three youth (primarily African American), twenty-five parents and two site leaders.ResultsThe positive demand and acceptability findings indicate the high potential of the programme to be used and be suitable for the youth, parents and site leaders. Field notes revealed numerous implementation facilitators and barriers. Youth weekly attendance averaged 4·6 of 10 sessions. Significant improvements (P<0·05) were found for some (e.g. fruit and vegetable asking self-efficacy, overall gardening knowledge, knowledge of MyPlate recommendations), but not all limited-effectiveness measures (e.g. willingness to try fruits and vegetables, fruit and vegetable eating self-efficacy).ConclusionsThis community-based participatory research study demonstrates numerous factors that supported and threatened the feasibility of a gardening and nutrition programme targeting youth in public housing. Lessons learned are being used to adapt and strengthen the programme for future efforts targeting fruit and vegetable behaviours.
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Zhang, Wei-Bin. "BUSINESS CYCLES, GROWTH, AND IMPORTED ENERGY IN A SMALL-OPEN GROWTH MODEL." Oradea Journal of Business and Economics 3, no. 2 (September 2018): 7–21. http://dx.doi.org/10.47535/1991ojbe047.
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This paper generalizes an economic growth model proposed by Zhang (2017) by allowing all constant coefficients to be time-dependent. This paper shows existence of business cycles in the generalized model due to periodic shocks. Zhang’s original model is developed for a small open economy with imported energy and imported goods. The economy is composed of two sectors and all markets are perfectly competitive. The economy has fixed land and population. Production side is the same as in neoclassical growth theory, while demand side is modelling with Zhang’s utility and concept of disposable income. We generalize and simulate the model. We demonstrate existence of business cycles due to different exogenous periodic shocks.
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Ngugi, Samuel Mungai, and Dr Lucy Wamugo. "CONSTRUCTION COST AND THE GROWTH IN SUPPLY OF REAL ESTATE HOUSING IN KENYA." American Journal of Finance 1, no. 1 (December 15, 2016): 56. http://dx.doi.org/10.47672/ajf.95.
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Purpose: The main purpose of this study was to establish the effects of construction cost on the growth in supply of real estate housing in Kenya. Methodology: The study adopted a descriptive research design. The target population was 78 registered real estate companies in Kenya. The sample size was therefore 39 registered real estate companies in Kenya. Primary data was collected through the administration of the questionnairesResults: The study found that finance cost, cost of building materials, cost of land and tax cost have a statistical and negative influence on the growth of supply of real estate housing. The study also concludes that increase in growth of real estate market despite the high interest rate could owe to the price inelastic demand for housing owing to economic disparity in the country. While low income earners, who are majority, are pushed away to less glossy and crowded homes where survival supersedes luxury, the upper middle income purchase of housing units is on the upward spiral.Unique contribution to theory, practice and policy: The study recommended that the government should lower interest expenses so as to encourage the increase in supply of affordable real estate housing. The bank should also lower their interest rates so that the real estate firms can be able to increase the supply of housing. The study also recommends that investors should consider investing in the real estate market despite the erratic interest rates.
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Yoo, Soyoung, Jiyong Eom, and Ingoo Han. "Factors Driving Consumer Involvement in Energy Consumption and Energy-Efficient Purchasing Behavior: Evidence from Korean Residential Buildings." Sustainability 12, no. 14 (July 10, 2020): 5573. http://dx.doi.org/10.3390/su12145573.
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The recent rapid transition in energy markets and technological advances in demand-side interventions has renewed attention on consumer behavior. A rich literature on potential factors affecting residential energy use or green technology adoption has highlighted the need to better understand the fundamental causes of consumer heterogeneity in buildings’ energy-related behavior. Unresolved questions such as which consumers are most likely to opt into demand-side management programs and what factors might explain the wide variation in behavioral responses to such programs make it difficult for policy-makers to develop cost-effective energy efficiency or demand response programs for residential buildings. This study extends the literature on involvement theory and energy-related behavior by proposing a holistic construct of household energy involvement (HEI) to represent consumers’ personal level of interest in energy services. Based on a survey of 5487 Korean households, it finds that HEI has a stronger association with consumer values, such as preferences for indoor thermal comfort and automation, than with socioeconomic or housing characteristics and demonstrates HEI’s potential as a reliable, integrated predictor of both energy consumption and energy-efficient purchases. The study illuminates the multifaceted influences that shape energy-related behavior in residential buildings and offers new tools to help utility regulators identify and profile viable market segments, improve the cost-effectiveness of their programs, and eventually promote urban sustainability.
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Ivanova, Rufina, Dilyara Mukhametzyanova, Olga Belay, Rustem Sirazetdinov, and Ella Biktemirova. "Modeling the innovative development of the economy based on the investment demand prognosis." E3S Web of Conferences 274 (2021): 05010. http://dx.doi.org/10.1051/e3sconf/202127405010.
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The effectiveness of innovation activity is largely determined by the relevant infrastructure which is the basic component of a developed economy. The correlation between the development of the innovative economy and the intensification of investment activity is revealed. On the basis of retrospective analysis of trends and patterns in the development of investment activity, an assessment of the resource support of the investment process in the Republic of Tatarstan is carried out. The need for advanced development of the production potential of the investment and construction complex of the region and the material and technical base on the basis of the development of the local raw material base is justified. An economic and mathematical model of the interaction of investment recourses that determine the level of innovative development of the region is proposed. On the basis of the theory of factor models, the quantitative relationships between the factors that have the greatest impact on investment development are investigated. They are: gross regional product, investment in fixed assets, the volume of contract work, the volume of investment in housing construction, the cost of research and development in the gross regional product, the share of innovation costs in industrial investment.
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Fanti, Luciano, Luca Gori, and Mauro Sodini. "Nonlinear Dynamics in a Cournot Duopoly with Different Attitudes towards Strategic Uncertainty." Abstract and Applied Analysis 2013 (2013): 1–11. http://dx.doi.org/10.1155/2013/323290.
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This paper analyses the dynamics of a duopoly with quantity-setting firms and different attitudes towards strategic uncertainty. By following the recent literature on decision making under uncertainty, where the Choquet expected utility theory is adopted to allow firms to plan their strategies, we investigate the effects of the interaction between pessimistic and optimistic firms on economic dynamics described by a two-dimensional map. In particular, the study of the local and global behaviour of the map is performed under three assumptions: (1) both firms have complete information on the market demand and adjust production over time depending on past behaviours (static expectations—“best reply” dynamics); (2) both firms have incomplete information and production is adjusted over time by following a mechanism based on marginal profits; and (3) one firm has incomplete information on the market demand and production decisions are based on the behaviour of marginal profits, and the rival has complete information on the market demand and static expectations. In cases 2 and 3 it is shown that complex dynamics and coexistence of attractors may arise. The analysis is carried forward through numerical simulations and the critical lines technique.
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Zapototska, V. "PRICING OF REGIONAL HOUSING MARKETS, THEORETICAL AND APPLIED ASPECTS." Bulletin of Taras Shevchenko National University of Kyiv. Geography, no. 66-67 (2017): 138–46. http://dx.doi.org/10.17721/1728-2721.2017.66.23.
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The article covers the theoretical and applied principles of price formation for housing within regional markets. In research process was found that the development of the regional housing market is subordinated to the action of regional development theories and general economic theories (cost and price). Among the spatial theories the influence of theories of agriculture placing and industry, central places, geographical location of economy, the theories of “growth poles”, “diffusion of innovations”, “center-periphery theory”, “city-centrality”. Economic theories are theories which actually are based on market process, formation of free market and theories of market`s processes regulation. It is proved that such theories do joint influence on pricing and the pricing mechanisms. It is proved that such theories do common influence on price formation and the pricing mechanisms. It was found, that pricing is an objective process, for determining and establishing prices within the region, which occurs primarily at regional and local level, touching individual regional market and is subjected to regulation by the state. It was established, that the formation of regional housing markets are too difficult process and are indicated by a large number of factors influencing to the processes of its formation. Through theoretical generalization, we identified six groups of factors that have a direct and indirect impact on supply and demand on the regional housing market. To the first group of factors attributed territorial housing market factors, among which are selected location of the property, infrastructure providing of this territory and ecological situation. The second group of factors includes quality characteristics of housing, among which are: construction materials; working characteristics and wearing out; architectural and planning features of the property. The third group is represented by economic factors, which include income of population, income of developers or property developers; the overall level of development of a region or settlement; investment factor; mortgage factor speculative factor and construction industry development in general. Group of demographic-settlement factors include an assessment of the demographic situation, labor market in the region, migration processes, the system of settlement and security of this area. Legislative and legal factors manifested through the state and regional policy in the housing market, housing programs, taxation processes, lending insurance and in the housing market. Social and psychological factors include behavior and preferences of consumers, price expectations, seasonality, ethnic or religious characteristics of the region. Here are presented the dynamics and confirmed differentiation in housing prices within the largest cities in Ukraine and in the city of Kyiv.
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Ahmed, Asad, Osman Hasan, Falah Awwad, and Nabil Bastaki. "Formalization of Cost and Utility in Microeconomics." Energies 13, no. 3 (February 6, 2020): 712. http://dx.doi.org/10.3390/en13030712.
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Cost and utility modeling of economics agents based on the differential theory is fundamental to the analysis of the microeconomics models. In particular, the first and second-order derivative tests are used to specify the desired properties of the cost and utility models. Traditionally, paper-and-pencil proof methods and computer-based tools are used to investigate the mathematical properties of these models. However, these techniques do not provide an accurate analysis due to their inability to exhaustively specify and verify the mathematical properties of the cost and utility models. Additionally, these techniques cannot accurately model and analyze pure continuous behaviors of the economic agents due to the utilization of computer arithmetic. On the other hand, an accurate analysis is direly needed in many safety and cost-critical microeconomics applications, such as agriculture and smart grids. To overcome the issues pertaining to the above-mentioned techniques, in this paper, we propose a theorem proving based methodology to formally analyze and specify the mathematical properties of functions used in microeconomics modeling. The proposed methodology is primarily based on a formalization of the derivative tests and root analysis of the polynomial functions, within the sound core of the HOL-Light theorem prover. We also provide a formalization of the first-order condition, which is used to analyze the maximum of the profit function in a higher-order-logic theorem prover. We then present the formal analysis of the utility, cost and first-order condition based on the polynomial functions. To illustrate the usefulness of proposed formalization, the proposed formalization is used to formally analyze and verify the quadratic cost and utility functions, which have been used in an optimal power flow problem and demand response (DR) program, respectively.
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Zhang, Wei-Bin. "Spatial agglomeration and economic development with the inclusion of interregional tourism." Ekonomski anali 62, no. 213 (2017): 93–128. http://dx.doi.org/10.2298/eka1713093z.
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The purpose of this paper is to extend Uzawa?s two-sector model of a national economy to an economy with any number of regions and interregional tourism. The paper studies interregional economic development with interactions between wealth accumulation, economic structure, interregional trade and tourism under assumptions of profit maximization, utility maximization, and perfect competition. The model is unique in interregional neoclassical growth theory in that it introduces endogenous tourism within a general equilibrium framework. The model is built on microeconomic foundations. It not only extends the well-known Solow growth model and the Uzawa two-sector model to a national economy with any number of heterogeneous regional economies, but also introduces tourist flows between regions. We demonstrate that the movement of the J-regional economy can be described by J+1 differential equations. We simulate the movement of a national economy with three regions. We show that the dynamic system has a unique equilibrium. We carry out comparative dynamic analysis with regard to the propensity to tour a region, the cost of travel from one region to another, the total factor productivity of a region?s industrial sector, the total factor productivity of a region?s service sector, the propensity to save, the parameters of a region?s amenity, the propensity to consume housing, and the national population. We demonstrate the dynamic effects of these changes on national GDP, wealth, and tourist patterns.
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Aminu Ahmed, Aliyu, and Rukayya Aminu Muhammad. "SIGNIFICANCE OF NEUROECONOMICS IN MEDIA CORPORATIONS SURVIVAL IN THE AGE OF DIGITALIZATION." International Journal of Advanced Research 9, no. 07 (July 31, 2021): 917–20. http://dx.doi.org/10.21474/ijar01/13194.
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The three concepts of neuroeconomics, behavioral economics and media economics were briefly examined, as relates to media corporations in the age of digitization and found to be closely related to human behavior mostly at individual level. The three concepts are also theoretically related because they all are concerned with human behavior and choices. There are varieties of theories in studying media economics, a few were examined and found to be relevant to Neuroeconomics, they include Theory of The Firm, The Consumer Theory, Theory of Ruinous Competition and Broadcast Media Concentration. The age of digitization has brought with it proliferation of especially electronic media, especially social media. This implies the traditional understanding of how media corporations operate have changed. It was found that consumption of digital media is rapidly increasing and becoming more personalized to individual behaviors and preferences, therefore neuroeconomics can help explain psychological mechanisms that lead to individual economic decision-making and understanding of media economics. Neuroeconomics , by leveraging on neuroscience, can contribute to understanding consumer habits, social networking and possibly predict choices of media consumers and/or detect consumers or groups that are likely to exhibit problematic behaviors. By using neuroeconomics models, media corporations can understand demand and consumer information, thereby tailoring media products in a way that will increase its value and utility to the consumers and ultimately profitability of the media corporations.
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D’Amours, Alban, and Léandre Nadeau. "L’économique de l’habitation : une revue de lalittérature." Articles 50, no. 2 (July 9, 2009): 191–231. http://dx.doi.org/10.7202/803043ar.
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Abstract This article has a two-fold purpose: first, to offer as complete an inventory aspossible of the literature written on the economics of housing, classifying thisliterature according to subject matter (in this sense, the article takes on theappearance of an annotated bibliography); and second, to take a hard look at thepresent state of economic theory in this field. The article is divided into the following six sections: 1) existing surveys;2) studies related to long-term cycles in residential construction; 3) theoriesexplaining short-term fluctuations; 4) verbal models; 5) econometric models;6) other studies. Some emphasis has been given to the authors' two principal conclusions. In theiropinion, the "residual" vision and the countercyclical hypothesis have not beenadequately tested in the past. Furthermore, the authors bring to light evidence,both theoretical and factual, which contradicts this theory (see Section 3). Then,in Section 5, the authors attempt to show how econometric models, except in the mostrecent papers, fail to take into account, adequately, the relationships between thehousing and mortgage markets and the builders. In addition, it is contended thatthese models are not truly representational of the whole sector, in that they areoften nothing more than simple demand or supply equations, or, even worse, neitherone nor the other.
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Lapshina, M. L., O. O. Lukina, and D. D. Lapshin. "Using mathematical models in a disequilibrium economy with offsetting demand." Proceedings of the Voronezh State University of Engineering Technologies 82, no. 1 (May 15, 2020): 369–79. http://dx.doi.org/10.20914/2310-1202-2020-1-369-379.
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When modeling a nonequilibrium economy, the behavior of participants is described by the same optimization problems, including the criterion and internal technological and budgetary constraints, as in the theory of Walrasian equilibrium. They are only supplemented by external restrictions on the purchase (or sale) of scarce (slow-moving) products. Various principles are known for establishing these boundaries. They can be fixed (a rigid scheme of rationing) and not depend directly on the decisions of the participant, or be determined by the demand expressed by them (flexible scheme). The presented demand for rationable products, as a rule, does not coincide with the Walrasian one. We will call it an order. In well-known models, the order is considered equal to active demand. The concept of active demand has been successfully used in price control models. However, it is not the object of the choice of participants aimed at optimizing their criteria. Meanwhile, it seems natural that manufacturers and consumers, seeking to maximize utility, are free to choose order sizes at their own discretion. Modeling of the situation arising with this approach is the goal of the present work and is based on a modification of the rationing scheme proposed by J.P. Benassi The work also considers equilibrium models at fixed prices, in which participants, when forming demand, take into account the scarcity of products and the level of satisfaction of orders. Models are used to assess the impact of taxes, government spending, and other macro-regulators on employment and national income. The paper provides an overview of literary sources in the subject area, as well as an economic interpretation of the results.
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Moscati, Ivan. "W. E. Johnson's 1913 Paper and the Question of his Knowledge of Pareto." Journal of the History of Economic Thought 27, no. 3 (September 2005): 283–304. http://dx.doi.org/10.1080/09557570500183553.
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In December 1913, William Ernest Johnson (1858–1931), a Cambridge logician, published a famous article on demand theory in the Economic Journal (EJ) entitled “The Pure Theory of Utility Curves.” Although Johnson's treatment of the subject was in some ways original, in others it strongly resembled the analysis set forth by Vilfredo Pareto in earlier contributions, particularly in the Manuel d'économie politique (Italian edition 1906, French edition 1909). Despite this resemblance, Johnson did not cite Pareto. This failure to acknowledge Pareto's precedence aroused resentment and some suspicion of plagiarism among the Italian Paretians. In the end, however, the Paretian economists of the period generally assumed that Johnson was unfamiliar with Pareto's works and had obtained his results independently. For example, in 1916, Luigi Amoroso published a review of Johnson's 1913 paper in the Giornale degli Economisti, in which he wrote, “From Johnson's article it comes out that Johnson does not know Pareto's work” (Amoroso 1916, p. 410, author's translation). Amoroso attributed Johnson's ignorance of Pareto's work to a more general ignorance on the part of English economists, “Johnson's lacuna, more than particular to him, is a lacuna of the area in which he lives” (Amoroso 1916, p. 410, author's translation).
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Derlytsia, Andrii. "THE CONCEPTUAL FOUNDATIONS OF TRANSACTIONAL ANALYSIS OF PUBLIC FINANCE." Economic Analysis, no. 30(3) (2020): 72–80. http://dx.doi.org/10.35774/econa2020.03.072.
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Introduction. One of the least developed areas of the theory of economic institutionalism is transactional analysis of public finance. Its component – the theory of transaction costs, is mainly applied to the sphere of functioning of economic entities and the financial market. This necessitates the study of transactions in public finance as an economic phenomenon that requires an integrated approach and goes beyond purely transaction costs. The purpose of the article. The aim is to study the conceptual foundations, method and key areas of transactional analysis of public finance as a scientific field of institutional research. Method. To achieve this goal, the following general scientific methods were used: scientific abstraction, in highlighting the essential features of transactional analysis of public finance; comparative analysis, when assessing the differences in transaction costs in the public and market sectors; a systematic approach in identifying the components of transactional analysis of public finance. Results. Transactional analysis of public finance as a component of institutional research of public finance is considered. The role of transaction costs in the public sphere is shown and their ability to positively influence the efficiency of public finance due to the optimization of resource allocation in the public sector is substantiated. It is indicated that transaction costs in the public sphere are a necessary element to ensure compliance with supply and demand of public goods and other state services, which leads to increased utility of participants in collective interaction. The characteristic of the method of transactional analysis of public finance and its features is given. The main directions of transactional analysis of public finance from the standpoint of comparison of transaction costs, transaction losses and transaction benefits are outlined. The dualistic nature of transaction costs in relation to transformation costs is shown.
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Orrell, David. "The Color of Money: Threshold Effects in Quantum Economics." Quantum Reports 3, no. 2 (May 14, 2021): 325–32. http://dx.doi.org/10.3390/quantum3020020.
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Many cognitive phenomena of the sort studied by behavioral psychologists show evidence of a threshold effect, where a certain minimum impulse is required in order to produce a change. An example is the phenomenon of preference reversal, where a change in context affects a decision, but only if the effect on perceived utility is sufficiently large. Similar threshold effects play a role in the endowment effect, where the change of context from owning to buying something induces a step change in its perceived value, or the ultimatum game, where people demand a certain minimum threshold amount before a deal can be accepted. The situation is similar to the photoelectric experiment in physics, where a minimum threshold of energy from a photon is required in order to dislodge an electron from an atom. In physics, this quantum of energy is written as the product of Planck’s constant and frequency. This paper uses the concept of entropic force to derive a similar expression for quantum economics. The theory is applied to a range of cognitive and economic phenomena exhibiting a threshold effect.
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Mbuguah, John Mburu. "FACTORS AFFECTING THE SUPPLY OF AFFORDABLE RESIDENTIAL HOUSING UNITS IN KENYAN URBAN AREAS: A CASE OF NAIROBI CITY AND ITS ENVIRONS." International Journal of Finance 1, no. 1 (January 24, 2017): 53. http://dx.doi.org/10.47941/ijf.38.
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Purpose: The study focused on the factors affecting the supply of affordable residential housing units in Kenyan urban areas in the case of Nairobi city and its environs.Methodology: A descriptive survey research design was used. The target population comprised of all the real estate agents, valuers and property managers with headquarters in Nairobi totaling 90. A sample of 40% or 36 firms was taken and a random stratified sampling technique was used to select the sample units. The study used primary data collected through using questionnaires as well as secondary data as a source of literature review. The data collected was analyzed by use of descriptive statistics. In particular, frequency tables and proportions or percentages were used. In addition factor analysis was used to supplement the descriptive statistics.Results: Findings from factor analysis indicated that the factors affecting the supply of affordable residential housing in Nairobi could be reduced to a three factor model. Findings from the study indicated that upon calculation of the rotated factor loadings, the Eigen Values of the three factors were still greater than 1 and the three factors still explained 75.51% of the total variance. The Unrotated factor loadings gave a clear picture of the importance of the variables to the factors. It seemed from the study that Factor1 was mostly defined by ‘legal’ variable, factor2 by ‘cost’ variable, and factor3 by ‘financial’, ‘socioeconomic’ and ‘infrastructural’ variables.Unique contribution to theory, practice and policy: The study recommended that to address cost related constraints to the supply of affordable housing in Nairobi, the architectural community should engage in research on cheap building products. The government through the central government and through the newly created counties should make infrastructural investment a priority. The legal framework relating to housing needed to be overhauled by the introduction of a new act on housing. It was the responsibility of the government in collaboration with the private sector to ensure that the high level of unemployment was addressed, that the inflation rate was lowered to an acceptable level and that the economic growth was enhanced. It was important to increase the access of mortgages and housing finance products to both the banked and the unbanked. The factors affecting the demand of affordable residential housing in Nairobi and other urban areas would form an area of further study. In addition, the determinants of the prices of residential and non-residential houses in Nairobi would form an interesting study.