Real estate prices in Beijing, 1644 to 1840

This paper provides the first estimates of housing price movements for Beijing in late pre-modern China. We hand-collect from archival sources transaction prices and other house attribute information from the 498 surviving house sale contracts for Beijing during the first two centuries of the Qing Dynasty (1644–1840), a long period without major wars, political turmoil, or significant institutional change in the Chinese capital. We use hedonic methods to construct a real estate price index for Beijing for the period. The regression analysis explains a major proportion of the variance of housing prices. We find that house prices grew steadily for the first half-century of the Qing Dynasty and declined afterwards in both nominal and real terms through the late eighteenth century. Nominal prices grew starting in the late eighteenth century and declined from the early nineteenth century through 1840. But these price changes occurred with contemporaneous price changes in basic measures of the cost of living: there was little change in real terms to the end of our period.     

Purchasing Competence: A Stakeholder‐Based Framework for Chief Purchasing Officers

A specific research stream within the purchasing and supply management literature focuses on the development of purchasing competence frameworks. We apply stakeholder theory and multiple methods of data collection to develop and confirm a hierarchy‐specific purchasing competence management framework for Chief Purchasing Officers and validate it using confirmatory factor analysis on empirical data from 124 multinational companies. The results reveal a significant relationship between Chief Purchasing Officers purchasing management competence and different purchasing performance measures confirming the appropriateness of stakeholder theory for such a competence framework.     

Toward Transparency: New Approaches and Their Application to Financial Markets

The Asian financial crisis in the late 1990s not only highlightedthe welfare consequences of transparency in the financial sectorbut also linked this relatively narrow problem to the broadercontext of transparency in governance. It has been observedthat objections to transparency, often on flimsy pretexts, arecommon even in industrialized countries. This article arguesthat transparency is indispensable to the financial sector anddescribes its desirable characteristics: access, timeliness,relevance, and quality. The authors emphasize the need to weighthe costs and benefits of a more transparent regulatory policy,and they explore the connection between information imperfections,macroeconomic policy, and questions of risk. The article arguesfor developing institutional infrastructure, standards, andaccounting practices that promote transparency, implementingincentives for disclosure and establishing regulations to minimizethe perverse incentives generated by safety net arrangements,such as deposit insurance. Because institutional developmentis gradual, the authors contend that relatively simple regulations,such as limits on credit expansion, may be the most reasonableoption for developing countries. They show that transparencyhas absolute limits because of the lack of adequate enforcementand argue that adequate enforcement may be predicated on broaderreforms in the public sector.      

Prices and Regional Variation in Welfare

One would expect regional differences in prices to influence conclusions concerning levels and distributions of well-being. Although there is anecdotal evidence of significant price dispersion across regions, there is no governmental source of data that measures differences in price levels. In this paper I integrate estimates of regional prices with expenditure data from the Consumer Expenditure Surveys to assess the influence of price differences on living standards in the United States. While prices have little effect on inequality, estimates of poverty and the standard of living change substantially with the inclusion of regional price variation.     

DEFAULT RISK PREMIA IN THE NEAR-CASH INVESTMENT MARKET: THE CASE OF AUCTION RATE PREFERRED STOCK VERSUS COMMERCIAL PAPER

Auction rate preferred stock (ARPS) is often regarded as an alternative to other near-cash instruments such as commercial paper while the dividend exclusion for ARPS offers tax advantages to corporate purchasers. The mean default risk premium for ARPS, relative to commercial paper, is estimated at 83 basis points during stable financial markets. This default premium appears to surge during unstable equity markets, having jumped by 192 basis points in November 1987. Lower-rated ARPS shows even larger changes, with yields 40–50 basis points above yields on high-rated ARPS, adjusted for the normal risk premium differential. The perceived risk change of ARPS underscores how quickly market participants re-evaluate default risk, and even the importance of the priority order among debt and equity claimants. Findings suggest ARPS and commercial paper are not an acceptable substitute for commercial paper during times of unsettled equity markets.     

Social norms and core outcomes in a sharecropping economy

This paper employs Greenberg'sTheory of Social Situations to explain the variation of sharecropping contracts across economies as a function of social norms that satisfy von Neumann-Morgenstern stability. We demonstrate that equal division and core outcomes are jointly possible when bargaining is unrestricted. By contrast, when the landlord acts as a monopsonist, core outcomes are the only possible social norm. In addition, if the presence of an outside wage is recognized, core and equal division norms may coincide.     

Expectative land rights, house consolidation and cemetery squatting: Some perspectives from Central Java

With more than 40% of the urban population of the Third World living in informal settlements, quasi- and extralegal adaptations have been utilized to appropriate land for housing. The most direct of these — squatting — has its inherent risks, however, for those who wish to improve their dwellings. Research has shown that house consolidation is more a function of resident perceptions than of strict legal categorization. This paper reports how such perceptions have triggered a greater rate of house consolidation among Javanese cemetery squatters than that in an adjoining area with formal land tenure.