Price predictors in an extended hedonic regression framework: An application to wholesale cattle markets in Ethiopia

Livestock markets influence income generation for producers, but also accessibility and affordability of highly nutritious animal-sourced foods for consumers. Despite their importance, the functioning of livestock markets in lower-income countries is poorly understood and rarely studied compared to more developed countries. This study analyzes wholesale cattle markets in Ethiopia using a uniquely rich large-scale dataset covering both prices and cattle characteristics in 39 markets (in both highland and lowland areas) over a 10-year period, and hedonic regression models structured to understand both cattle price formation and seasonal and secular price dynamics. We show that cattle prices are influenced by a wide range of factors, including proxies for meat quality, religious fasting practices, climate-based seasonality but also climate shocks and availability of grazing land, competition from animal traction services, and rising consumer incomes. However, the implied effects of these factors are often significantly different in highland mixed crop-livestock areas compared to agro-pastoralist lowland areas, emphasizing the dualistic nature of cattle markets in Ethiopia. The analyses help inform the systemic challenges that Ethiopia will need to overcome to meet rising demand for beef products in the face of sustained income and population growth, as well as the adverse effects of climate change.     

HETEROGENEITY,FRICTIONAL ASSIGNMENT,AND HOME-OWNERSHIP

We study the composition of the housing stock across ownership and rental markets in a dynamic model of frictional assignment. Houses are rented or sold to heterogeneous households that sort over quality. Due to matching frictions and an increasing ownership surplus, wealthy households tend to own and lower value housing tends to be rented, even without financial frictions or rental supply constraints. When calibrated to match key housing market features of the average U.S. city, the model is consistent with observed empirical relationships across cities. We study the model's implications for affordability, ownership, and the impact of progressive property taxation.     

Tourism as sustainable development? The Albanian experience of ‘transition’

Despite significant increases in international tourist arrivals and tourism receipts since the fall of communism in central and eastern europe as a whole, in the rural southeastern corner of the continent, a region well‐endowed with a range of natural and cultural tourism resources, instability and uncertainty have constrained international tourism development in the 1990s. This regional context for tourism development and the specific issues which surround a tourism‐led development model in a small developing country are addressed with particular reference to the recent experience of Albania. As part of a sustainable rural development programme, rural tourism's role as a counterbalance to rejuvenated mass coastal tourism is evaluated. Potentially an important vehicle for cultural expression and employment regeneration, the adoption of rural tourism as a development vehicle is faced with a number of obstacles, which national, and perhaps international, development programmes need to address. Copyright © 2000 John Wiley & Sons, Ltd.