Block Rate Pricing of Water in Indonesia: An Analysis of Welfare Effects

Block rate pricing of piped water in Indonesian cities has a progressive structure: the marginal price paid increases with the volume of demand. This paper estimates household water demand in Salatiga city using the Burtless and Hausman model, and finds that its distribution is not unimodal—that data cluster around kinks. The main estimation results are a price elasticity of approximately–1.2 and an income elasticity of 0.05. These elasticities are mutually dependent. The estimated model is used to investigate the social welfare consequences of a shift to uniform pricing. The principal beneficiaries would be large households, which are not necessarily wealthy. While replacing the complex rate structure by a uniform marginal price would have positive effects on average welfare, the equity consequences would be small. To improve equity, water companies could reduce installation fees, giving low-income households access to water connections, or reinvest profits in network expansion to unserviced areas.     

Insurance premiums under demand constraints

Abstract

An alternative approach to the variance principle of premium determination is explored. The approach rationalises the principle in terms of an economic theory and formalises the notion that loadings in addition to the ‘fair’ premium are related to competition and expenses.     

A Long Run House Price Index: The Herengracht Index, 1628–1973

This article introduces a biennial historic index of real estate values for the period 1628 through 1973. This index is based on the transactions of the buildings on the Herengracht, one of the canals in Amsterdam. Since its development, the quality of the buildings on this canal has been on a constant, high level, which makes the Herengracht a unique sample to base a long run house price index upon. The index is a hedonic repeated-measures index and is estimated in real terms. An index is also constructed in nominal terms. The average real price increase after World War II is about 3.2% per annum. Nevertheless, the real value of the index in 1973 is only twice as high as it was in 1628.     

Spatial welfare economics versus ecological footprint: modeling agglomeration,externalities and trade

A welfare framework for the analysis of the spatial dimensions of sustainability is developed. It covers agglomeration effects, interregional trade, negative environmental externalities, and various land use categories. The model is used to compare rankings of spatial configurations according to evaluations based on social welfare and ecological footprint indicators. Five spatial configurations are considered for this purpose. The exercise is operationalized with the help of a two-region model of the economy, that is, in line with the ‘new economic geography.’ By generating a number of numerical ‘counter-examples,’ it is shown that the footprint method is inconsistent with an approach aimed at maximum social welfare. Unless environmental externalities are such a large problem that they overwhelm all other components of economic well-being, a ‘spatial welfare economic’ approach delivers totally different rankings of alternative land use configurations than the ecological footprint.      

Portfolio greenness and the financial performance of REITs

This paper investigates the effects of the energy efficiency and sustainability of commercial properties on the operating and stock performance of a sample of US REITs, providing insight into the net benefits of green buildings. We match data on LEED- and Energy Star-certified buildings with detailed information on REIT portfolios and calculate the share of green properties for each REIT over the 2000–2011 period. We estimate a two-stage regression model and document that the greenness of REITs is positively related to three measures of operating performance – return on assets, return on equity and the ratio of funds from operations to total revenue. We also document that there is no significant relationship between the greenness of property portfolios and abnormal stock returns, suggesting that stock prices already reflect the higher cash flows deriving from investments in more efficient properties. However, REITs with a higher fraction of green properties display significantly lower market betas.     

Criteria for continuing professional development of technology teachers’ professional knowledge: a theoretical perspective

Continuing professional teacher development (CPTD) is generally accepted as an indispensable tool for the professional development of technology teachers. The current theoretical framework for CPTD comprises a variety of models. However, criteria underpinning these models are not explicit. If, in turn, the criteria were explicit, it could serve as part of the pre-determined criteria for the evaluation of the quality of CPTD programmes. The quality of higher education is important to its stakeholders and the assurance thereof should be a continuous process. The aim of this article is to determine criteria for evaluating CPTD programmes through an analysis of CPTD models in different educational settings. The article takes the form of a literature study to determine which CPTD models exist and which aspects of such models are most suitable for facilitating development of technology teachers’ professional knowledge. A significant finding of this study is eight criteria for evaluating CPTD programmes.     

Project-based pedagogy for the facilitation of webpage design

Real issues of web design and development include many problem-solving tasks. There are, however, some inadequacies associated with the implementation of appropriate pedagogy for organised and structured instruction that supports the rational problem-solving paradigm. The purpose of this article is to report on a study for the design and implementation of an Instructional Web Design Programme (IWDP) with methodology-specific guidelines in an information systems design context. A second purpose is to discuss the pedagogy developed within the IWDP and its effects on promoting technological problem solving of learners in the project-based classroom. A qualitative, action-research approach was the basis for this study. The sample consisted of 17 learners at an institution of higher education. The researchers used a focus group interview, journals and essays to observe learners’ behaviour, to analyse their project designs and to assess their opinions and experiences with regard to the IWDP. An organised and structured instructional environment within the IWDP helped the teacher to promote technological problem solving. The teacher and learners acknowledged the components of the programme (for example, assessment criteria, range statements, performance indicators, pre-defined learner tasks and activities) in the project-based classroom. Practical and cognitive apprenticeship and experiential and situated learning were used to accommodate the problem-solving needs of learners. Learners indicated a need for a variety of tools and expert guidance in a peer-based collaborative learning environment.     

Mean and dispersion modelling for policy claims costs

A model for the statistical analysis of the total amount of insurance paid out on a policy is developed and applied. The model simultaneously deals with the number of claims (zero or more) and the amount of each claim. The number of claims is from a Poisson-based discrete distribution. Individual claim sizes are from a continuous right skewed distribution. The resulting distribution of total claim size is a mixed discrete-continuous model, with positive probability of a zero claim. The means and dispersions of the claim frequency and claim size distribution are modeled in terms of risk factors. The model is applied to a car insurance data set.