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1 – 7 of 7Peter Karpestam and Peter Palm
The authors investigate how prices of condominiums are affected by the size of the tenant-owner associations that they belong to.
Abstract
Purpose
The authors investigate how prices of condominiums are affected by the size of the tenant-owner associations that they belong to.
Design/methodology/approach
The authors use data of sold apartments in the Swedish municipality Malmö 2013–2018 and estimate hedonic price regressions. The authors also perform semi-structured interviews with three senior professionals in real estate companies.
Findings
The authors find significantly negative relationships between the prices of condominiums and the size of tenant-owner associations. Also, regression results indicate that associations should be no smaller than 6–10 apartments. The interviews support that associations should not be too small or too big. The lower and upper limit was suggested by the respondents to 40–50 and 80–150 apartments, respectively. In these ranges, economies of scale can be achieved, and residents will not lose the sense of community and responsibility.
Research limitations/implications
The authors do not prove causality. Smaller associations may have relatively exclusive common amenities, about which we lack data. The same relationships may not exist in different market conditions.
Originality/value
The authors are not aware of previous studies with the same research question. The size of tenant-owner associations may affect the price through different channels. First, several of the banks in Sweden do not always grant mortgages for condominiums that belong to small associations. Second, larger associations may have better economies of scale and more efficient property management. Third, homeowners may prefer smaller tenant-owned associations, because they may feel less anonymous and provide more influence on common amenities.
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This paper aims to test two hypotheses related to the supposedly negative impact of rent control on residential mobility: the mobility of renters is, first, negatively related to…
Abstract
Purpose
This paper aims to test two hypotheses related to the supposedly negative impact of rent control on residential mobility: the mobility of renters is, first, negatively related to how attractive their residential areas are and, second, relatively high for renters living in properties built after 2005.
Design/methodology/approach
This paper estimates logit and multinomial logit regressions and models household moves. The multinomial logit regressions separate between short- and long-distance moves and between moves to rentals and to owned dwellings. This paper uses the “relative income” of the tenants’ residential areas to proxy area attractiveness. This paper estimates regressions for entire Sweden and the three largest “commuting” regions and municipalities, respectively.
Findings
The full sample provides support of both hypotheses in all regressions. Hypothesis one gets stronger support for moves to other rentals than moves to owned dwellings but about equally strong support for short- and long-distance moves. Hypothesis one obtains strongest support in Gothenburg municipality while hypothesis two obtains strongest support in the Malmö region. Also, hypothesis two obtains stronger support for short-distance moves than long-distance moves and slightly stronger support for moves to owned dwellings than those to rented dwellings.
Research limitations/implications
This paper does not estimate “how much” rent control affects mobility, and results cannot be used to design specific rent setting policies. Results may be sensitive to how different types of moves are defined.
Practical implications
Efforts to reform rent setting policies in Sweden are encouraged.
Originality/value
To the best of the author’s knowledge, this paper’s two hypotheses are not tested before in Sweden and can be tested without control groups.
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Bo Bengtsson, Peter G. Håkansson and Peter Karpestam
Transaction costs, responsive housing supply, rent controls, tenant protection, and access to credit affect residential mobility – these different parts of housing policy are…
Abstract
Transaction costs, responsive housing supply, rent controls, tenant protection, and access to credit affect residential mobility – these different parts of housing policy are included in what has been defined as housing regimes, which embrace regulations, laws, norms, and ideology as well as economic factors. In this chapter, we investigate how these regimes change by using institutional theories of path dependence. We use Sweden as an example and study three Swedish housing market reforms during the past decades that may have affected residential mobility, each related to one of the main institutional pillars of housing provision: tenure legislation, taxation, and finance. More precisely, we study the development of the rental regulation since the late 1960s, the tax reform in 1991, and the new reforms on mortgages since 2010. What caused these reforms? What were the main mechanisms behind them, and why did they occur at the time they did? We argue, besides affecting residential mobility, these reforms have the common feature of including interesting elements of path dependence and forming critical junctures that have led the development on to a new path. Institutions of tenure legislation, housing finance, and taxation are often claimed to have effects on residential mobility. Although they are seldom designed with the explicit aim of supporting (or counteracting) residential mobility, they may sometimes do so as more or less unintended consequences.
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The purpose of this paper is to simulate the indirect and direct effects of remittances in developing countries.
Abstract
Purpose
The purpose of this paper is to simulate the indirect and direct effects of remittances in developing countries.
Design/methodology/approach
The paper estimates a dynamic macroeconomic model and estimates the short‐run and long‐run dynamic multiplier effects of hypothetical temporary changes in remittances, as well as simulates the permanent effects of observed remittances.
Findings
The results indicate positive multiplier effects in general, and they also reveal a substantial variability across income categories and regions. The results indicate that low‐income economies are more inclined to spend their incomes on consumption and investments than middle‐income economies and, therefore, have a higher short‐run potential gain from receiving remittances. Low‐income economies typically reside in Sub‐Saharan Africa, whereas middle‐income economies are mainly found in East Europe, Latin America and North Africa and the Middle East. However, actual gains from remittances are highest in lower middle‐income economies because these countries receive more remittances. Generally, the short‐run effects are higher than the long‐run effects due to a sustained dependence of imported goods and services.
Research limitations/implications
The paper analyzes the effects of remittances on components in aggregate demand.
Practical implications
The results support the World Bank's current policy recommendation that remittances should be promoted.
Originality/value
The paper corrects the algebraic solution for dynamic multiplier effects in Glytsos's work, written in 2005, and estimates the model for a macroeconomic panel containing 115 developing countries. The paper considers the effects of the net flows of remittances rather than of inflows only.
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Ariuna Taivan, Gibson Nene and Inoussa Boubacar
The purpose of this study is to empirically examine the effect of commodity exports from Africa to China on the growth rate of per capita gross domestic product (GDP) after…
Abstract
Purpose
The purpose of this study is to empirically examine the effect of commodity exports from Africa to China on the growth rate of per capita gross domestic product (GDP) after controlling for variables that have been found to be important determinants of economic growth. This study uses a panel of 23 African countries for the period of 2001-2011.
Design/methodology/approach
The authors make use of a Barro-type empirical economic growth model which uses per capita GDP as the dependent variable. With regard to independent variables, the authors examine the China effect after controlling for variables that have been found to affect economic growth. To account for the China effect, we use the following three measures of trade with China: commodity export to China, commodity export to China relative to total export and commodity export to China relative to the world. The authors use panel data from 2001 to 2011.
Findings
Results indicate that the magnitudes of the effect, while statistically significant, are not large enough to induce positive growth rates. The results also indicate that the magnitudes of the effects depend on the colonial origin of the African countries.
Research limitations/implications
The data are limited to the 2001-2011 time frame because of data availability issues. This time frame does capture the era when China increased its trade with Africa. The choices of variables were also affected by data availability. However, the authors managed to find data on the main drivers of economic growth. Further research is needed to gain a more comprehensive analysis of the effects of commodity trade with China on Africa’s economy, given the partial character of the data set used in this study. Similarly, there is also a need for more detailed information on China’s trade activities.
Practical implications
While the results of this study show an improvement in the per capita growth rate, the changes are not large enough to put African countries on a path to a sustained prosperity. African governments which trade with China should consider investing more in manufacturing, so that they create more jobs locally and benefit more from their exports.
Social implications
The China–Africa relationship shows a small positive impact on societal well-being.
Originality/value
To the best of the authors’ knowledge, none of the existing studies on China–Africa relations attempted to understand the impact of China’s economic activity on the standards of living of African residents, where standard of living is measured by economic growth. The current study aims to bridge this gap. This study complements existing studies and uses a data set and methodology that has not been used before on this issue.
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