Income Polarization Between the Central Cities and Suburbs of U.S. Metropolises, 1950–1980

Abstract . Through an examination between 1950 and 1980 of household income in central cities and suburbs of the 37 largest Metropolitan Statistical Areas of the United States. was found that considerable polarization of household income groups had occurred. By 1980 the median share of the poorest within the total households of the central cities had risen to well over double the share of the group in the total households of the suburbs. The share of the wealthiest households in the total for the suburbs rose to double that of that group's share of the total central cities households. No generalizations could be made which would explain the degree nor the rate of polarization, though a number of socioeconomic variables were tested.     

纯分时定价与分时阶梯定价对政策目标实现的对比分析

基于双层需求模型,对分时阶梯定价与纯分时定价下的居民电力需求行为进行比较。利用相对需求方程检验两类定价下的相对需求是否具有非位似偏好性质,运用绝对需求方程分析居民在峰谷时的不同弹性特征。研究结论表明,分时阶梯与纯分时定价下存在不同的收入和电费位似偏好性质;居民的价格与需求弹性显著不同;两类定价下可以实现的政策目标也存在明显差异。本文为系统比较非线性定价与线性定价下的需求奠定了基础。     

Non-cooperative Households and the Size and Composition of Public Expenditure

This paper presents a model in which the composition and size of public spending are determined through a political process. Agents differ in wage rates, and live in households positively sorted by wage; household production benefits both partners but the partners interact non-cooperatively, hence the laissez-faire equilibrium is inefficient. There are three policy tools, a labour income tax rate, a cash transfer and an in-kind transfer. The latter can be combined with household production to generate a household public good. All agents agree on some form of public intervention to remedy the inefficiency, but low-wagers prefer high taxes and cash transfers, while high-wagers prefer low taxes and in-kind provision. Under the empirically plausible assumption that voting participation is positively correlated with income, the equilibrium policy will be of the sort preferred by voters with above-mean income. This effect is accentuated by increased inequality.A previous version of this paper has been presented at the 2004 EPCS conference in Berlin; we thank our discussant Stanley Winer, as well as two referees of this journal, for insightful comments     

Mineral-led Economic Growth, Drought Relief, and Incomes Policy

Abstract . Some analysts have hypothesized that rapid mineral led economic growth and drought in the rural economy have led to a severe worsening of the plight of the rural population in Botswana, with rural household income collapsing and income inequality worsening pronouncedly. Contrary to these hypotheses, Botswana's income data show that income distribution remained stable, since rural household incomes did not experience significant decline as a result of drought conditions. The government's incomes policy, the direct and indirect benefits of rapid employment growth, and the government's comprehensive drought relief support are seen as explanatory factors in this macroeconomic policy success.     

The Federal Housing Administration (FHA), tenure choice,and residential land use

This paper extends the standard, urban, residential land-use model to analyze the effects of Federal Housing Administration (FHA) mortgage insurance. On the demand side, households are differentiated by income and tenure; on the supply side, the cost of housing is related to the asset prices of land and structure and the cost of capital. Hypothesizing that capital cost is a function of household tenure and income, tenure is chosen to minimize this cost. The effect of FHA, then, is to expand the housing consumption of moderate-middle income households, by reducing their capital cost, while displacing those whose cost is not reduced.     

Challenges of green consumption in China: a household energy use perspective

To encourage economic progress, China's government has been pushing domestic consumption as a substitute for its waning growth in investment and exports. It has also been promoting greener policies for growth, of which green consumerism is a prime component. By examining the economy through the lens of household energy consumption, this paper lays out the challenges the nation must overcome through green consumption. We explore the trends in household energy use and decompose energy used indirectly by households into six factors: changes in total population, urbanization rate, energy efficiency, interindustry input mix, household consumption preferences, and per capita household consumption level. Doing so yields insights into how progress in industrial technology, household income, urbanization, and lifestyles has affected energy use in the production of goods and services used by households. It also offers policy suggestions on how China might guide lifestyle changes to effect green consumption.     

Effective Rental Housing Demand in the Tokyo Metropolitan Region

This paper reports on the estimation of housing demand for tenants in Tokyo Metropolitan Region using household level data for 1993. The results indicate that the rental housing demand is inelastic with respect to permanent income and price, with coefficients as 0.31 and -0.093 respectively. Other important variables, which determine housing demand for tenants are length of stay and type of household. Larger households demand more housing. However, keeping the size of household constant, households with elderly members have higher demand for housing. The only exception to the rule is households formed with members not belonging to same nucleus family demand less housing.     

THE EXTENDED ECONOMETRIC INPUT–OUTPUT MODEL WITH HETEROGENEOUS HOUSEHOLD DEMAND SYSTEM

This paper proposes an extension to the regional econometric input–output model (REIM) [Conway, R.S. (1990) The Washington Projection and Simulation Model: A Regional Interindustry Econometric Model. International Regional Science Review, 13, 141–165; Israilevich, P.R., G.J.D. Hewings, M. Sonis and G.R. Schindler (1997) Forecasting Structural Change with a Regional Econometric Input–Output Model. Journal of Regional Science, 37, 565–590]. We integrate a demand system with age and income parameters into the REIM. The extended model thus addresses concerns about the effects of household heterogeneity. The initial testing is conducted with a model for the Chicago metropolitan area. First, using aggregate expenditure data by income and age groups, the almost ideal demand system with group fixed effects is constructed. Next, the estimated demand system is linked to the REIM to reflect long-term changes in the age and income distribution of households. The long-range simulation from the extended model takes into account structural changes in expenditure type stemming from changing demographic composition. The extended model further broadens the scope of impact analysis under various scenarios associated with age and income changes.     

Determinants of credit to households: An approach using the life-cycle model

This paper applies a life-cycle model with individual income uncertainty in order to investigate the determinants of credit to households. We show that the household credit to GDP ratio depends on the lending-deposit interest rate spread, individual income uncertainty, and individual income persistence. We subsequently provide empirical evidence for the prediction of a theoretical model on the basis of data from OECD and EU countries.     

我国城镇居民平均消费倾向与收入分配状况关系的实证研究

中国的有效需求不足现象近年来成为一个被普遍关注的问题,而居民消费需求不足更是成为关注的焦点。本文在前人研究的基础上,从标准的消费者预期效用最大化模型出发,推导出中国城镇居民的个体"短视"消费模型和总量消费模型;运用我国1985～2004年城镇居民消费、收入及其他相关数据,通过误差修正模型和对数线性模型分别对数据进行了计量分析,发现在我国现阶段,城镇居民收入分配差距的扩大引起了居民平均消费倾向的减小,且其长期影响尤为显著。在对计量结果进行分析的基础上,本文给出了若干政策建议。     

Intrametropolitan migration: A simultaneous model of employment and residential location of white and black households

This study explores the relationship between the home and job location of the household within a metropolitan area. The model is an extension of the Alonso-Muth framework and allows the household to simultaneously choose its residential and employment location, monthly rent, number of rooms and the type of structure of the dwelling unit, so as to maximize its utility subject to the budget constraint.The data base is the Home Interview Survey conducted in 1965 by the (San Francisco) Bay Area Transportation Study Commission. The coefficients in the simultaneous model are estimated by two-stage least squares. The cross-section sample is stratified by tenure into renters and homeowners; by race into black and white households; and further by position in the life-cycle.The results of the location equations reveal that both the home and job location are responsive to each other which implies that the decentralization of jobs will result in the decentralization of residences for black households. The results of the housing equations imply that black and white households have almost identical elasticity of demand for housing. There is very slight evidence of price discrimination against black households. However, there is evidence that black households do face a geographical segregated market for rental housing.The results of this study argue that the decentralization of population is not due solely to rising incomes and will continue as long as industry decentralizes. Furthermore, governmental policies of increasing the income of central city residents, through subsidies to employers to locate in the central city will have a strong effect: inducing those residents to remain in or move into the central city. Thus, a policy that is meant to alleviate the plight of the city center may only result in strengthening the racial and income split between the suburb and the central city inhabitants.     

Measurement of reciprocity in a village through social networks

This paper examines measuring of interdependency among households through their transactions by using information of individual villagers in a disadvantaged area in a developing country. To obtain the information, we created a village input–output table (VIOT) from household survey data conducted in a rural village in Lao PDR in 2015 and 2016. Because each household in the village is not only a producer but also a consumer who is trading products and consuming them, the VIOT is a simple but useful tool to know the economic transactions among villagers. The main findings are that four higher-income families, which mainly trade rice very frequently, are playing key roles in the village economy, and the interdependency among higher-income households is stronger than among lower/middle-income households. Additionally, this method can be used to form an economic policy such as poverty reduction because of informing households playing a key role in the village.     

The value of scarce water: Measuring the inefficiency of municipal regulations

Rather than allowing urban water prices to reflect scarcity rents during periods of drought-induced excess demand, policy makers have mandated command-and-control approaches, primarily rationing the use of water outdoors. While such policies are ubiquitous and likely inefficient, economists have not had access to sufficient data to estimate their economic impact. Using unique panel data on residential end-uses of water in 11 North American cities, we examine the welfare implications of urban water rationing in response to drought. Using estimates of expected marginal prices that vary both across and within markets, we estimate price elasticities specific to indoor and outdoor water use. Our results suggest that current policies do target water uses that households, themselves, are most willing to forgo. Nevertheless, we find that rationing outdoor water in cities has costly welfare implications, primarily due to household heterogeneity in willingness-to-pay for scarce water. We find that replacing rationing policies with a market-clearing “drought price” would result in welfare gains of more than 29% of what households in the sample spend each year on water.     

Dual careers,time‐use and satisfaction levels: evidence from the British Household Panel Survey

This article empirically examines time‐use and its impact on satisfaction levels among dual career households in a post‐industrial economy, the UK. Analysis explores the 1993–2009 British Household Panel Survey using panel probit regression. The evidence reveals distinctions in time‐use relative to gender, occupations and employment sector. Long hours persist among managers and professionals. The uneven division of household labour, further, continues to burden women with extensive amounts of housework and care. Satisfaction with working hours and amount/use of leisure time are lower among women, especially the public sector professionals. Provision of care, occupation and partner employment characteristics represent important satisfaction determinants present among women, while income (including partner's income) only has relevance among men. Housework does not itself generate dissatisfaction. It is the overload of household tasks, due to inequality in the household division of labour, which constrains many highly skilled working women reducing satisfaction with time‐use and life overall.     

Regional Inequalities in Consumption Patterns: A Multilevel Approach to the Case of Italy

The main aim of this paper is to evaluate the disparities in the Italian regions on the demand side. In more detail, an attempt will be made to find if the consumption behaviour of Italian households is different in the regions. With this in mind, Istat's 2000 Italian Family Budget data set was analysed. The data in question, which were collected through a two‐stage sample over Italy's 20 regions, contains information regarding the expenses of approximately 23,000 households. In this analysis, both households and regions are considered as units: households are nested in the regions so that the basic data structure is hierarchical. In order to take this hierarchical structure into account, a multilevel model was used, making it possible for parameters to vary randomly from region to region. The model in question also made it possible to consider heterogeneity across different groups (regions), such as stochastic variation. First, regional inequalities were tested using a simple model in which households constituted the first level of analysis and were grouped according to their region (the second level). As a second step, and in order to investigate the interaction between geographical context and income distribution, another model was used. This was cross‐classified by income and regions. The most relevant results showed that there is wide fragmentation of consumption behaviour and, at the same time, various differentiated types of behaviour in the regions under analysis. These territorial differentials become clear from income class and items of consumption.     

What drives equity market non-participation?

This paper produces endogenous equity market non-participation in an economy with uninsurable labor income risk and heterogeneous skill levels. Prudence and impatience generate stationary household wealth levels that depend on income. Skill, and therefore labor income, heterogeneity leads to wealth heterogeneity, with high skill households accumulating high wealth and low skill households accumulating low wealth. A HARA class utility with subsistence consumption requirement generates decreasing RRA with respect to household wealth. Consequently, low skill households also have significantly higher local RRA. In addition low skill households have less human capital and therefore have lower diversification demand for stocks. Low wealth, high RRA and low diversification demand predicts that low skill households do not hold stocks in the face of a moderate ownership cost. In addition, the model predicts a humped lifecycle wealth accumulation pattern and a humped lifecycle stock allocation pattern. I also find that stockholders exhibit a greater aggregate willingness to supply risky capital during the expansion phase of a business cycle, despite the lower conditional equity premium.     

Government Budgets and Public Services: Some Criteria for Determining the Sources and Levels of Public Goods, including Transport Services

Instances of non-optimal consumption of public goods and services can easily arise if individual demand curves are not identical. It does not follow, however, that the best solution to the problem of too little consumption is an increase in government expenditure. Special user charges and voluntary contributions of time, goods, and money on the part of persons that value public goods more highly than the general population have long been important ways of supplementing government spending for social goods. The work trip appears to be a good example of a service area where existing cost structures and pricing methods may be biased against the voluntary associations which are needed to make the United States less dependent on foreign oil. This bias could be corrected by using an income-tax-surcharge to help finance the fixed costs associated with mass transit and other types of work trip pooling arrangements.     

REGIONAL DISTRIBUTION OF DEVELOPMENT GRANTS IN INDONESIA'S WATER SUPPLY SECTOR

Over successive five-year development plans, Indonesia has channeled large sums of foreign loans and domestic funds into water supply projects with the aim of providing clean water for a majority of households. Most projects have been planned and financed through the central government's public works ministry, though a growing share of rural water projects are being funded through earmarked grants provided to local governments. This paper examines how these central government transfers, in the aggregate, have responded to various indicators of expenditure needs. Overall, past allocations have matched existing demand and supply levels closely–funding has generally favored provinces with large populations, large numbers of water enterprises, extensive distribution networks in place, and high production capacity. They have not, however, worked in favor of either equalization or economic productivity objectives, as reflected by per capita income or GRDP growth rates. This analysis suggests that equity would be promoted either by including income-related factors in future block grant allocation formulas or by shifting funding emphasis in the water supply sector from grants-in-kind controlled by the central government to sectoral grants controlled mainly at the local level. Such policy reforms would also further promote the nation's professed goal of decentralizing infrastructure development.     

Estimating the Demand for Housing, Land, and Neighbourhood Characteristics

This paper provides estimates of the structure of demand for individual housing and neighbourhood characteristics and for land in two British cities. We estimate a hedonic price function, and from this obtain the implicit prices of house attributes. These prices are used to estimate a demand system for each city. These perform well, and enable us to calculate price and income elasticities for each of the non-dichotomous characteristics and for land. To counteract criticisms of demand estimates derived within the hedonic framework a method is developed for selecting an appropriate set of instrumental variables. Estimates derived from this method, however, differ only slightly from those obtained using the conventional techniques. Several features of these estimates provide insights into the unusual characteristics of the British housing market, the effects of constraints imposed by land use planning, and the effects of changing income distribution on the structure of demand.     

Optimal density of radial major roads in a two-dimensional monocentric city with endogenous residential distribution and housing prices

This paper proposes an analytical urban system equilibrium model for optimizing the density of radial major roads in a two-dimensional monocentric city. The proposed model involves four types of agents: local authorities, property developers, households and household workers (i.e. commuters). The local authorities aim to maximize the total social welfare of the urban system by determining the optimal density of radial major roads in the city. The property developers seek to determine the intensity of their capital investment in the land market to maximize the net profit generated from the housing supply. The households choose residential locations that maximize their utility within a budget constraint, and the commuters choose the radial major roads that minimize their individual costs of travel between home and workplace. A heuristic solution procedure is developed to find the urban system equilibrium solution. A system optimum model is also proposed to optimize the density of radial major roads that maximizes the social welfare of the urban system. The proposed model can endogenously determine household residential distribution and land values across the city, along with the housing market structure in terms of housing prices and space. Numerical comparative static analyses of congestion pricing and road infrastructure investment (adding a new radial major road) are carried out together with evaluation of the effects of the service level of radial major roads, urban population size, and household income level on the urban economy.