Determinants of house prices in Istanbul: a quantile regression approach

This paper uses quantile regression methods where a hedonic equation is estimated for each quantile of the conditional distribution of housing prices. The survey data are used to investigate the relationship between house prices and housing characteristics in Istanbul. This data set includes some housing characteristics of the dwellings like numbers of room, bathroom, heating system, location of house etc. In the results of this paper show some similarities and differences from earlier studies on housing prices. We find that age, cable tv, security, heating system, garage, kitchen area, increasing numbers of room and bathroom increase the house prices. Our findings also show that side variable which is a special factor for Istanbul real estate market has negative effect on the prices. It is clear that the factors of housing prices can change because of the properties of country, region or city. The results of this study may give some important interpretations for developing real estate market.     

Ethnic identity and economic welfare

In this study, we use rich survey data to understand the determinants of labor market success across refugees of different ethnicities in Turkey. In particular, we examine individual personality traits and integration barriers by considering metrics of refugees’ proximity to Turkey based on their home countries’ levels of cultural distance. Using microdata, we derive a refined index called ethnosizer scale to grasp the distance of minor ethnic identities in Istanbul to the dominant identity. Utilizing this parameter, we aim to analyze how the degree of commitment to the local society’s culture affects the economic welfare of refugees in Istanbul, in terms of their earnings, participation in labor markets and wage gap compared to the natives.     

Entrepreneurial Religion in the Age of Neoliberal Urbanism

The introduction to this symposium on entrepreneurial religion and neoliberal urbanism discusses leading scholarly approaches to religion and urban theory, arguing that, despite their merits, these approaches are in need of refinement. Theories on religion and urban theory too often describe religion as a reactionary phenomenon. Religious movements and spaces are generally defined as pockets of resistance and shelter against retreating or failing states under neoliberal restructuring programmes in the shadow of consumption dreams. Although religious actors and ideologies unquestionably form part of urban groups that are denied access to public and private means to wealth and security, the contributors to this symposium argue that within a global, comparative perspective, the entwinement of religion, state and market reveal more complicated configurations. Through a comparison of Islamic gated communities in Istanbul, Pentecostal prayer camps in Lagos and Pentecostal grassroots movements in the favelas of Rio de Janeiro, this symposium demonstrates that urban religion should also be regarded as a constitutive force of contemporary capitalism and should therefore be placed at the heart of the neoliberal construction of urban space instead of at its margins.     

Urban Renewal in Istanbul: Reconfigured Spaces,Robotic Lives

The article discusses Turkey's property‐led residential redevelopment model. This entails the demolition of an existing settlement, replacing it with blocks of apartments (usually constructed on the exact same site and at a higher density), some of which are then made available to displaced residents for purchase via mortgage loans with long maturities. While the authorities promote this model of urban renewal as an innovative public housing policy, I argue that, far from being an exception to market‐rate housing, the model is in fact a market‐disciplinary tool. It seeks to incorporate into the formal market not just spontaneously developed and only partially regulated spaces, but also the conduct of residents living in these informal neighborhoods. The article contributes to the immense literature on urban renewal and organized struggles around the right to housing by showing that urban renewal is not simply about dispossession and displacement. In the Turkish case, urban renewal does not necessarily seek to displace poor residents (even though it often ends up doing so), rather to incorporate them into a nascent mortgage origination market. The second half of the article introduces and elaborates on a case study in Istanbul.     

WHY FREE MARKETS SHOULD NOT BE BLAMED FOR THE CURRENT RECESSION

Interventionist thinkers are now claiming intellectual victory, blaming the free‐market system and its ideology for the current economic collapse. We find this thesis untenable, drawing on the Austrian Business Cycle Theory. Instead, we argue that the roots of our present downturn lie in the monetary system, whose institutional structure is far from any free‐market ideal. Moreover, several government policies have contributed to the problems.     

MARKET SHARE ANALYSIS: THE CASE OF THE BRITISH BREAKFAST CEREALS INDUSTRY

In this paper the authors apply simple econometric techniques to market share models for brand products in the British breakfast cereals market. Brand product price and advertising coefficients, as estimated by regression equations, are explored in the context of assumed profit and market share maximization, and an attempt is made to evaluate empirically firms' actual marketing strategies.     

THE ECONOMIC SCIENCE FICTION OF CLIMATE CHANGE: A FREE‐MARKET PERSPECTIVE ON THE STERN REVIEW AND THE IPCC

The Stern Review and the IPCC believe that anthropogenic climate change is a serious global threat and demands an urgent response. Examining the IPCC's projections of future climate change and Stern's estimates of its costs from a free‐market perspective shows that they are based on flawed methodological assumptions and reflect an excessively optimistic approach to knowledge of the future. The foundations of reliable knowledge for a sound policy framework have not been put in place.     

THE HOUSING MARKET AND THE RECOVERY

In the run up to the key Christmas period the talk is again of renewed weakness in consumer spending. Last month saw the volume of retail sales rise by only 0.1 per cent, and the annual rate of growth has now slowed to a shade over 3 per cent, down from its peak of 4.4 per cent back in July this summer. This weakness in consumer demand is also clearly being reflected in retail prices; with retailers discounting their prices to boost sales, headline inflation fell to 1.4per cent in October, while the underlying rate dropped to its lowest level for 25 years. This forecast release looks at the wider determinants of consumer spending, especially developments in the housing market. We argue that the slowdown in high street sales is a forbear of sluggish growth to come and that lower interest rates, if they materialise, are unlikely to have much of an impact. While consumer spending has been the driving force out of recession, for the recovery to be sustained, requires that exports and investment spending now take up the running.     

THE CHINA MODEL: IS IT A GOLDEN FORMULA?

The economic crisis is an opportunity for governments to face the fact that Keynesian interventionist policies are not the path to success. However, support for such policies is being sustained by misperceptions of China's remarkable economic progress in recent years. Its success is commonly attributed to government‐led initiatives, labelled as ‘The China Model’, which divert credit away from the true source of growth: its experience of the free market. This article examines the development of the free market in China and explains why the government's recent behaviour threatens to undermine the gains of recent decades.     

CHRISTIANITY, THE MARKET ECONOMY AND THE LIMITS TO HUMAN KNOWLEDGE

At one time, the prevailing view amongst Christian clergy in Britain would have been sympathetic towards the spontaneous order of the market economy and not sympathetic towards socialism. The spontaneous order, would, of course, have included the rich tapestry of philanthropic organisations and mutual societies that used to provide welfare for the poor. The clergy today are not generally sympathetic towards the market order. An understanding of Austrian ideas takes us to the view that, at the very least, socialist rationalism is the common enemy of Christians and those who support a free market order.     

TIME IS OF THE ESSENCE: THE IDEA OF THE COROLLARY OF THE COASE THEOREM AND A POSSIBLE APPLICATION

Extant theories on the application of the Coase Theorem to the development market have focused on the effects of zoning on the environment or upon property prices. As an original contribution to the Coasian research on the interface between the development market and the statutory planning machinery, this article seeks to develop a Coasian proposition informed by what has been called the corollary of the Coase Theorem, which allows for an empirical examination of the impact of property prices on decisions to use resources under different institutional arrangements. Our proposition is that the procedural steps taken to consume resources are not contingent on property prices unless the associated transaction costs are positive or property rights ambiguous.     

THE ENTERPRISE ACT:ASPECTS OF THE NEW REGIME1

The forthcoming Enterprise Act makes the Competition Commission (CC) determinative in relation to merger and market inquiries. It also introduces new competition‐based tests, the rationale for which is examined. Several procedural aspects of the new regime are explored, in particular the need for economic guidance to be published on the application of the new tests. A number of key economic considerations are then examined, including market definition, oligopoly pricing, entry and the scope for different perspectives as between economic analysis and business practice.     

THE INFLUENCE OF THE GREAT HANSHIN-AWAJI EARTHQUAKE ON THE LOCAL HOUSING MARKET

The Great Hanshin-Awaji Earthquake destroyed a huge number of houses and caused housing problems in the disaster area. This paper investigates the influence of the earthquake on the related housing market, mainly in terms of changes in house prices and housing rents, and analyzes the machanism of the changes. Empirical results by Hedonic analyses indicate the influences are different between house prices and housing rents and also between the disaster district and the surrounding area. Those differences are explained by the factors of the earthquake that would affect the housing market, such as decrease in income, diversity of damage among the districts and others.     

THE SINO-BRITISH JOINT DECLARATION, 1997, AND THE LAND MARKET OF HONG KONG*

In September, 1984, Britain and China concluded the Joint Declaration on the Future of Hong Kong. The Joint Declaration guarantees the continual practice of capitalism and a high degree of autonomy for Hong Kong for a period of 50 years after 1997. It helped to rebuild confidence and caused property prices to rise. However, Annex HI of the Joint Declaration places severe restraints on the present government, limiting its ability to respond to market trends and generate funds from land sales. This paper seeks to look at some of these effects. It is argued that there is very little room for the present government to maneouvre and that even now the constraints imposed by the Joint Declaration are affecting the land market in Hong Kong. Higher land prices, a slower rate of horizontal expansion of the city and a greater intensity of land use are likely consequences of the newly imposed contraints. The recent emphasis on inner city development and redevelopment vis-a-vis a new town development strategy is in part attributable to the Joint Declaration.     

THE STATE GIVETH AND THE STATE TAKETH AWAY: SUPPORTING THE RESEARCH-BASED PHARMACEUTICAL INDUSTRY IN EUROPE AND THE UK

The European research-based pharmaceutical industry has been declining relative to its US counterpart for more than a decade. It remains a substantial and successful industry, and the UK continues to be a particular success story, but many challenges lie ahead in an increasingly competitive global environment. Recent attempts to reinvigorate and support pharmaceutical and biotech research and development have been numerous, and in the UK now include the R&D tax credit. But it is the operating environment and the structure of the market for pharmaceuticals that represent the biggest challenges for the industry and policy-makers.     

THE MARKET ECONOMY AND THE TEACHINGS OF THE CHRISTIAN GOSPEL

The reality of the market economy is not an economy in which Christian values are generally evident. Although there are many prominent Christian capitalist writers, the real world is a world of rather more materialistic values. It does not have to be like that. It is possible for people to take Christian values out into the world of business and prosper.     

THE BUS INDUSTRY: FRANCHISE AND THE LOSS OF FREEDOM

Political pressure exists for the bus industry to be brought under local authority control by means of 'Quality Contracts.'These would take away from management the freedom for marketing, and especially for marketing by price, that was returned to them by the 'deregulation' of 1985. The proposed franchises would return the industry to the 'bad old days' and prevent its continued improvement through market forces from taking place. The Department of Transport considered the idea of franchises in 1985, but concluded that it would merely lead to monopoly power.     

AN ALGORITHMIC INFORMATION THEORETIC APPROACH TO THE BEHAVIOUR OF FINANCIAL MARKETS

Using frequency distributions of daily closing price time series of several financial market indices, we investigate whether the bias away from an equiprobable sequence distribution found in the data, predicted by algorithmic information theory, may account for some of the deviation of financial markets from log‐normal, and if so for how much of said deviation and over what sequence lengths. We do so by comparing the distributions of binary sequences from actual time series of financial markets and series built up from purely algorithmic means. Our discussion is a starting point for a further investigation of the market as a rule‐based system with an algorithmic component, despite its apparent randomness, and the use of the theory of algorithmic probability with new tools that can be applied to the study of the market price phenomenon. The main discussion is cast in terms of assumptions common to areas of economics in agreement with an algorithmic view of the market.