Comments on Jeff R. Crump's ‘The end of public housing as we know it: public housing policy,labor regulation and the US city’

Jeff Crump's discussion of housing policy in the United States is highly polemic but not very analytic or informative. Crump argues that federal housing policy is attempting to move people out of public housing and into the private housing market and the lowwage labor force. However, he fails to support his argument with credible evidence. My comments point out the most egregious of Crump's claims. I start with Crump's most extreme contentions that housing policy is coercing public housing residents into the low‐wage labor force. I then question his dismissive attitude toward the problems confronted by residents of distressed public housing and policies designed to help low‐income families move out of impoverished neighborhoods. I subsequently show how Crump exaggerates the extent to which federal housing policy is clearing central cities of subsidized low‐income housing. I conclude with a few words on the serious issues that a more informed critique of US housing policy could have raised. L'exposé de Jeff Crump sur la politique du logement aux Etats‐Unis relève principalement de la polémique, plus que de l'analyse ou de l'information. Selon lui, la politique fédérale tente de déplacer la population des logements sociaux vers les marchés de l'habitat privé et de la main‐d'?uvre à bas salaires. Toutefois, il n'apporte aucune preuve crédible à son propos. Ma réaction porte sur ses arguments les plus insignes, en commençant par ses allégations extrémistes selon lesquelles la politique du logement contraint les habitants des logements publics à des emplois peu rémunérés. Je remets ensuite en cause son dédain à l'égard des difficultés que rencontrent les résidents des logements sociaux insalubres, sans oublier les politiques prévues pour aider les familles à faibles revenus à quitter les quartiers pauvres. En conséquence, à mon avis, Crump exagère la mesure dans laquelle la politique fédérale élimine des centres‐villes les habitats à loyer modéré subventionnés. En quelques mots, ma conclusion porte sur les questions graves qu'aurait pu soulever un commentateur mieux documenté sur la politique du logement aux Etats‐Unis.     

Distinguishing external from internal scale effects: The case of public infrastructure

The recent applied production theory literature focusing on the economic performance of firms has increasingly recognized the importance of scale effects on costs and therefore efficiency. These scale effects may include short run returns due to fixity of privately demanded inputs (i.e., capital, long run internal returns to scale, and external factors affecting costs. Since these different types of scale effects can be thought of as shifts in and movements along cost curves, the different cost effects of such factors can be identified in a framework which explicitly takes them into account in the definition ofscale.In this article we formalize such a framework, and then use it to measure short run, long run (internal) and external scale effects from fixity of private capital, nonconstant returns to scale and public infrastructure. We then use these measures to identify the impacts of these different scale factors on productivity growth. The focus on public infrastructure as an important external scale factor is motivated by the current theoretical and policy interest in this issue; we show how a structural production theory model provides a rich basis for the analysis of the cost effects of infrastructure investment.     

Towards Assessing the Knowledge Gap in Medical Tourism

The medical tourism industry is a fast growing global niche market that generated $20 billion in income for destinations around the world. This study suggests and tests a mechanism to assess the medical tourism providers’ perceptions about the tourists’ perceived important product attributes when selecting a medical tourism destination. The results indicate that the various medical tourism providers groups do not vary in their perceptions regarding 24 important attributes of the medical tourism product and that they all agree that tourists perceive the medical variables to be more important than the tourism related variables. Using the Korean market for data collection, the study’s additional contribution is providing insights for Korean government agencies, operators of medical tourism hospitals, policymakers, and marketers.     

Diminishing effects of location? Some evidence from Swiss municipalities, 1950–2000

This paper analyzes how location has affected, in the second half of the twentieth century, the population growth of 2889 municipalities in Switzerland. The analysis demonstrates the temporal relativity of location attributes, even for small territorial divisions, such as the Swiss cantons. However, we also show that, both absolute and relative location attributes have weakened over time as population growth predictors, apparently due to improving road infrastructures, and growing motorization. The study has been made possible by a detailed historical population and accessibility database available for Swiss municipalities. To the best of our knowledge, no database of such scope and quality is available for any other European country.     

Unemployment Insurance and the Business Cycle: What Adjustments are Needed?

During the 2007–2011 economic downturn, the duration that one could collect unemployment insurance (UI) in the United States increased to an unprecedented 99 weeks, and the UI benefit amount increased by $25. This article explores the policy of increasing the generosity of UI during recessions using a model that accounts for the insurance and moral hazard implications of UI as well as the program's impact on job creation. When limited to adjusting the duration of benefits, a more generous UI system is optimal. However, due to UI's negative impact on job creation and the increased cost of providing benefits when unemployment is high, the optimal extension is just 1.3 months. When the government adjusts both the benefit amount and its duration, the optimal policy during downturns is a reduction in the replacement rate. This mitigates the decline in job creation and funds a UI extension of 4.3 months.     

Product Innovation Incentives: Monopoly vs. Competition

In contrast to Arrow's result for process innovations, we show that the gain from a product innovation can be larger to a secure monopolist than to a rivalrous firm that would face competition from independent sellers of the old product. A monopolist incurs profit diversion from its old good but may gain more than a rivalrous firm on the new good by coordinating the prices. In a Hotelling framework, we find simple conditions for the monopolist's gain to be larger. We also explain why the ranking of innovation incentives differs under vertical product differentiation.