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Housing Consumption (housing + consumption)
Selected AbstractsPRICE AND EFFICIENCY EFFECTS OF TAXES AND SUBSIDIES FOR AUSTRALIAN HOUSINGECONOMIC PAPERS: A JOURNAL OF APPLIED ECONOMICS AND POLICY, Issue 2 2007PETER ABELSON This paper quantifies the major subsidies and taxes that affect housing, the impacts on house prices and housing consumption, and the efficiency effects. Private housing receives an estimated net subsidy of $6.3 billion per annum. Most of this subsidy accrues to homeowners, who as a group receive about an 8% subsidy on imputed gross rentals. The rental sector receives a subsidy of approximately 0.4% of rents. On plausible (unitary elasticity) demand and supply assumptions, the homeowner subsidy increases all housing prices by about 2% and total housing consumption by about 2%, with the rise in consumption by home owners more than offsetting the fall in consumption by renters. The housing subsidy produces an estimated deadweight loss from expenditure on renovations of about $100 million per annum. However, contrary to previous work, the paper finds that the housing subsidy produces welfare gains from expenditure on new housing in the order of $187 million a year. This arises because the subsidy offsets the over-regulated supply of new housing. Transaction taxes on housing have a separate deadweight loss of $375 million per annum. Also, the unequal treatment of homeowners and renters creates a small annual deadweight loss. [source] Mode Choice, Commuting Cost, and Urban Household Behavior,JOURNAL OF REGIONAL SCIENCE, Issue 3 2005Joseph S. DeSalvo DeSalvo demonstrated that the urban model of Muth (1969) was robust to the extension to leisure choice. We show that the model is robust to mode choice as well. In addition, we derive the comparative static results that commuters choose higher speed modes for longer commutes, at higher wage rates, with greater tastes for housing, and with lower housing prices. Also, for a given distance commuted, we derive the comparative static result that commuters chose shorter duration commutes at higher wage rates. Whereas it is typically assumed that marginal commuting cost is positive and non-increasing with distance, we derive these results. Moreover, we derive the results that marginal commuting cost rises with an exogenous increase in housing price and falls with increased tastes for housing. We also explore the effects of exogenous commuting-cost changes on the endogenous variables of the model. The remaining comparative static results on housing consumption and location are qualitatively the same as in DeSalvo. [source] Population Ageing and House Prices in AustraliaTHE AUSTRALIAN ECONOMIC REVIEW, Issue 3 2010Ross Guest This article assesses the effect of population ageing on housing consumption and house prices. Using two approaches, this article finds that the ageing of the population may cause average real house prices to be between 3 and 27 per cent lower than they otherwise would be over the period 2008,2050. The first approach is an econometric estimation of house prices for Australia over the period 1980,2008. The second approach is a simulation of a life cycle-optimising model with representative overlapping generations. [source] | ||||||||||