The Effect of Mortgage Rate Buydowns on Housing Prices:

The model developed in this paper analyzes the effect of builder-financed FHA-VA mortgage subsidies or buydowns on the price of housing. Hedonic pricing equations are estimated for a locationally and qualitatively uniform sample of new tract development homes. The explanatory variables are vectors of physical and financial characteristics. The latter include a continuous variable for discount points paid by builders which is indicative of the magnitude of prepaid finance charges. The results indicate that a substantial portion of mortgage subsidy costs are shifted to buyers in the form of inflated housing prices.     

Comparisons between small business data base (USEEM) and Bureau of Labor Statistics (BLS) employment data: 1978–1986

Summary and conclusion The BLS versus USEEM comparison generally points out some major classification differences in the data sets particularly in the classification and growth of larger establishments. USEEM and BLS data generally agree as to the direction of employment growth over the 1978 to 1986 period. Differences occur in 7 of the 63 comparisons of employment growth — but BLS attributes a greater proportion of growth to larger reporting units, USEEM to smaller establishments. BLS and USEEM data have concurring positive or negative growth rates for all size classes in the construction, wholesale trade, services, and finance, insurance, and real estate industries.The fundamental question — in which size classes or units did employment growth primarily occur between 1978 and 1986 — has only indirectly been answered. Some industries — such as construction — produced similar results. Other sectors — such as wholesale trade — produced differences by size category. Clearly some combination of industry restructuring and different classification and collection procedures have affected the results.Researchers, once aware of procedural differences between the data sets, can cite USEEM data for a variety of dynamic uses, particularly in light of these new comparative tabulations available from the Bureau of Labor Statistics. For comparative static analysis, the BLS dataset is more comprehensive and better maintained.     

A RE-EXAMINATION OF THE PROXY HYPOTHESIS

In this study we examine whether the proxy hypothesis can explain the puzzling negative relation between real stock returns and expected inflation. Our study improves upon previous tests that suffer from model misspecification and are incomplete. With correctly specified models, we provide a comprehensive test using data from four major industrialized nations during the period of floating exchange rates. Results do not support the proxy hypothesis.     

A note on the determinants of residential succession

A recent paper by J. Brueckner [J. Urban Econ., 4, (1977)] presents empirical evidence that the Muth vintage model explains the neighborhood succession process better than the Bailey boundary externality model. This note shows that Brueckner's apparent empirical findings are spurious as a result of the construction of the dependent variable, and do not provide insight into the neighborhood succession process. Re-estimation of the corrected regressions using similar data yields results which are clearly supportive of neither theoretical model.     

Markets in the firm Ken Phillips

There is widespread acceptance of the advantages of a market economy but not yet of the next logical step of applying market principles to the internal operations of firms. The use of markets within firms would benefit companies and the economy. It would also require fundamental reappraisal of labour market regulations which imply master-servant relationships.     

Textile trade and the pattern of economic growth

Zusammenfassung Handel mit Textilien und wirtschaftliches Wachstum. — Dieser Aufsatz untersucht den Handel mit Textilien und Bekleidung sowie die Produktionsfaktoren, die mit der Wettbewerbsf?higkeit der Exporteure verbunden sind, und die Wirkung der allgemeinen Wettbewerbsf?higkeit auf den Entwicklungsproze\. Die Ausweitung der Textil- und Bekleidungsproduktion scheint im Entwicklungsproze\ sehr wichtig zu sein. Denn die Ausfuhr von Textilien und Bekleidung der gro\en Exportl?nder ist mit einem schnellen allgemeinen Exportwachstum sowie mit dem Zugang zu internationalem Kapital und mit schnellem Wachstum des Pro-Kopf-Einkommens verknüpft. Diejenigen L?nder, die bei der raschen Ausdehnung ihres Anteils auf den Weltm?rkten für Textilien und Bekleidung am erfolgreichsten gewesen sind, haben gleichzeitig mit Erfolg die Lohnstückkosten durch einen effizienten Kapitalcinsatz niedrig zu halten gewu\t. In diesen L?ndern sind die Ertr?ge für die Produktionsfaktoren au\er für den Faktor Arbeit sehr hoch. Insgesamt scheinen die effiziente Verwendung von Kapital und der hohe Lohn für die unternehmerische T?tigkeit eine Schlüsselstellung in dem dynamischen Entwicklungsproze einzunehmen.

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Résumé Le commerce de textile et la croissance économique. — Cet article examine le commerce de textile et de vêtement ainsi que les facteurs de production qui sont associés avec la compétitivité d’exportations et l’effet de la compétitivité générale sur le procès de développement. L’expansion de la production des textiles et des vêtements semble être un élément-clé dans le procès de développement. Les exportations des textiles et des vêtements par les grands pays exportatrices sont associées avec une rapide croissance des toutes les exportations, avec l’accès au capital international et avec une montée sensible du revenu par habitant. Les pays qui avaient beaucoup de succès d’augmenter rapidement leur rapport sur les marchés mondiaux des textiles et des vêtements sont ceux qui avaient beaucoup de succès de tenir les co?ts unitaires de main-d’oeuvre sur un niveau bas en utilisant le capital très effectivement. Ils sont aussi les pays qui offrent des taux de rendement très hauts aux facteurs exclusivement de la main-d’oeuvre. Comme résumé on peut dire que lútilisation effective de capital et les rémunérations hautes pour l‘activité des entrepreneurs semblent être le part-clé du procès dynamique de croissance.

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Resumen Comercio de textiles y el patrón de crecimiento económico. — En este artículo se examinan los patrones del comercio de textiles y vestuario, factores de producción que están asociados con la competitividad de exportatión y el impacto de la competitividad general sobre el proceso de desarrollo. La expansión de la producción de textiles y vestuario parece ser un elemento clave en el proceso de desarrollo. Las exportaciones de textiles y vestuario de los grandes países exportadores están asociadas con el rápido crecimiento general de las exportaciones, con el acceso a capitales internacionales y con el rápido incremento en el ingreso per cápita. Aquellos países que han mostrado ser los más exitosos en incrementar su participación en los mercados mundiales de textiles y vestuario son aquéllos que han tenido mayor éxito en mantener los costos de trabajo unitarios bajos, usando el capital en la forma más eficiente. Son también los países que ofrecen altas tasas de retorno a los factores no laborales. En suma, la eficiente utilizatión del capital y la alta recompensa al factor empresarial parecen ser elementos claves para un proceso de crecimiento dinámico.

     

An approximation to the finite sample distribution of Zellner's seemingly unrelated regression estimator

A multiple equation model of the seemingly unrelated regressions type is considered. We derive an Edgeworth expansion up to 0(T^-1), where T is the sample size, of the finite sampls distribution function of the seemingly unrelated regression estimator of the parameters in thie model. We examine the two-equation case where our results can be related to exact theory in the special case of orthogonal exogenous variables and we take as a particular numerical example Zellner's original application to micro-investment functions.