Labor Demand Shocks and Housing Prices Across the United States: Does One Size Fit All?

2019 ◽  
Vol 33 (3) ◽  
pp. 212-219 ◽  
Author(s):  
Michael J. Osei ◽  
John V. Winters
Keyword(s):  
Housing Prices ◽  
Labor Demand ◽  
The United States ◽  
Demand Shocks ◽  
Metropolitan Statistical Areas ◽  
Positive Effects ◽  
Long Run ◽  
Time Periods ◽  
Total Labor ◽  
Using Data

This study examines whether effects of labor demand shocks on housing prices vary across time and space. Using data on 321 U.S. metropolitan statistical areas (MSAs), the authors estimate the medium- and long-run effects of increases in MSA-level employment and total labor income on housing prices. Instrumental variable estimates for different time periods, and also for coastal, noncoastal, large, and small metropolitan statistical areas, are obtained using the shift-share instrument. Results suggest that labor demand shocks have positive effects on housing prices; however, these effects appear to vary across time periods and across different types of MSAs.

scholarly journals The Neighborhood Effects of a Place-Based Policy—Causal Evidence from Atlanta’s Economic Development Priority Areas

2021 ◽  
Vol 13 (12) ◽  
pp. 6808
Author(s):  
Yuxi Luo ◽  
Zhaohua Zhang ◽  
Jun Zheng ◽  
Diane Hite
Keyword(s):  
Economic Development ◽  
Low Income ◽  
Neighborhood Effects ◽  
Economic Status ◽  
Housing Prices ◽  
Labor Demand ◽  
Housing Price ◽  
Poverty Rate ◽  
Priority Areas ◽  
Positive Effects

Place-based policies refer to government efforts to enhance the economic performance of an area within its jurisdiction. Applying various difference in differences strategies, this study evaluates the neighborhood effects of a place-based policy—the Economic Development Priority Areas (EDPA) of Atlanta, Georgia, USA. Since the census block groups are locally defined and the boundaries may change over time, we defined the neighborhoods by creating a set of 0.25-mile- diameter circles evenly distributed across Atlanta, and used the created buffers as the comparison unit. The empirical estimates showed that EDPA designation significantly reduced poverty rate and increased housing price of EDPA neighborhoods but had no beneficial effects on population size and employment rate. The heterogeneous analysis with respect to different initial economic status of the neighborhoods showed a relative larger and significant effect of EDPA designation on low-income neighborhoods. The increasing labor demand induced by EDPA designation in low-income neighborhoods attracted more population to migrate in and put upward pressure on housing prices. The estimation results are robust when replacing the 0.25-mile-diameter circle neighborhoods with 0.5-mile-diameter circle neighborhoods. Although we found some positive effects of the EDPA program in Atlanta, it would be misguided to assume similar effects occur in other areas implementing place-based policies.

ONE APPROACH TO RESOLVE THE EXCHANGE RATE PUZZLE: RESULTS USING DATA FROM THE UNITED KINGDOM AND THE UNITED STATES

2018 ◽  
Vol 63 (05) ◽  
pp. 1367-1384
Author(s):  
MOHAMED ARIFF ◽  
ALIREZA ZAREI
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
The United States ◽  
Cash Flows ◽  
Nominal Exchange Rate ◽  
Data Series ◽  
Test Procedures ◽  
Bretton Woods ◽  
Long Run ◽  
Using Data

We approach a significant research topic in international economics by restating the test procedures in a novel manner consistent with monetary theorems with controls using monetary variables and applying an appropriate econometric methodology to re-examine three aspects of exchange rate behavior. (i) Does the inflation (price) factor affect Nominal Exchange Rate (NER)? (ii) Do relative interest rates between countries affect a country’s exchange rate? (iii) Do the price and interest rate effects hold if controls for non-parity factors are embedded in tests? The data series for this study are taken over 55 years covering pre-and-post-Bretton Woods era: a second test was done over the post-Bretton Woods period only using 30 years of data. Also, the traditional factors of parity conditions are extended in this research to take into account recently theorized and tested non-parity factors related to cash flows. The resulting evidence affirms clearly that both the parity factors (prices and interest rates) and the non-parity factors affect exchange rates significantly over the long run, also over the 30-year period. In our view, these findings extend our knowledge of how currency behavior is consistent with parity and non-parity theorems.

Legal Access to Reproductive Control Technology, Women’s Education, and Earnings Approaching Retirement

2020 ◽  
Vol 110 ◽  
pp. 231-235
Author(s):  
Jason M. Lindo ◽  
Mayra Pineda-Torres ◽  
David Pritchard ◽  
Hedieh Tajali
Keyword(s):  
Health Care Technology ◽  
Reproductive Health Care ◽  
Positive Effects ◽  
Reproductive Control ◽  
Long Run ◽  
Women's Earnings ◽  
Using Data ◽  
Care Technology ◽  
Retirement Study ◽  
Identification Strategy

What do historical changes in legal access to reproductive health care technology tell us about the long-run effects of such changes? We investigate this question using data from the Health and Retirement Study and an identification strategy leveraging variation in exposure to legal changes in access across cohorts born in the same states. We find positive effects on educational attainment that align with prior work but are not statistically significant. We also find positive effects on working in a Social Security-covered job in women's 20s and 30s but no evidence of positive effects on women's earnings in their 50s.

Subsidized Housing, Emergency Shelters, and Homelessness: An Empirical Investigation Using Data from the 1990 Census

2002 ◽  
Vol 2 (1) ◽  
Author(s):  
Dirk W. Early ◽  
Edgar O. Olsen
Keyword(s):  
Empirical Investigation ◽  
Housing Prices ◽  
The United States ◽  
Sensitivity Analyses ◽  
Housing Assistance ◽  
Housing Projects ◽  
Policy Responses ◽  
Point Estimates ◽  
Using Data ◽  
Price Differences

Abstract This paper uses data on the only systematic count of the homeless throughout the United States to estimate the effect on the rate of homelessness of a wide variety of potentially important determinants, including several major policy responses to homelessness that have not been included in previous studies. It improves upon estimates of the effect of previously studied determinants by using measures that correspond more closely to underlying theoretical constructs, especially by accounting for geographical price differences. It also conducts numerous sensitivity analyses and analyzes the consequences of the undercount of the homeless for point estimates and hypothesis tests. The paper's most important finding from a policy perspective is that targeting the current budget authority for housing assistance on the poorest eligible households will essentially eliminate homelessness among those who apply for assistance. Achieving this goal promptly without concentrating the poorest households in housing projects and without spending more money requires vouchering out project-based assistance. The primary methodological finding of the paper is that the 1990 Decennial Census did not produce sufficiently accurate counts, especially of the street homeless, to permit very precise estimates of the effects of many factors which surely affect the rate of homelessness. The main exception is the price of housing. Other things equal, higher housing prices lead to more homelessness.

scholarly journals NAFTA, Social Unionism, and Labour Movement Power in Canada and the United States

2005 ◽  
Vol 49 (4) ◽  
pp. 657-695 ◽  
Author(s):  
Ian Robinson
Keyword(s):  
United States ◽  
Trade Agreement ◽  
The United States ◽  
Negative Effects ◽  
Labour Movement ◽  
Positive Effects ◽  
The North ◽  
Long Run ◽  
Short Run ◽  
Negative Impacts

This paper considers how the North American Free Trade Agreement (NAFTA) is likely to affect labour movement power in Canada and the United States. The paper is divided into four parts. It first defines the concept of « labour movement power », breaking it down into its component parts. It next considers why we should care about what happens to labour movement power. It then outlines the principal negative and positive effects that the NAFTA is likely to have on labour movement power. Attention is also given to the beneficial consequences that the fight against the NAFTA has already had for the labour movement. It is argued that the NAFTA 's negative impacts are likely to outweight its positive ones in the short run and that the positive effects could substantially outweight its negative effects over the medium to long run. Whether it does will depend upon choices made in the next few years by labour movement leaders and activists.

scholarly journals Aggregate Demand, Idle Time, and Unemployment *

2015 ◽  
Vol 130 (2) ◽  
pp. 507-569 ◽  
Author(s):  
Pascal Michaillat ◽  
Emmanuel Saez
Keyword(s):  
Labor Market ◽  
Supply And Demand ◽  
Aggregate Demand ◽  
Labor Demand ◽  
Product Market ◽  
The United States ◽  
Idle Time ◽  
Price Equilibrium ◽  
Empirical Measures ◽  
Demand Shocks

Abstract This article develops a model of unemployment fluctuations. The model keeps the architecture of the general-disequilibrium model of Barro and Grossman (1971) but takes a matching approach to the labor and product markets instead of a disequilibrium approach. On the product and labor markets, both price and tightness adjust to equalize supply and demand. Since there are two equilibrium variables but only one equilibrium condition on each market, a price mechanism is needed to select an equilibrium. We focus on two polar mechanisms: fixed prices and competitive prices. When prices are fixed, aggregate demand affects unemployment as follows. An increase in aggregate demand leads firms to find more customers. This reduces the idle time of their employees and thus increases their labor demand. This in turn reduces unemployment. We combine the predictions of the model and empirical measures of product market tightness, labor market tightness, output, and employment to assess the sources of labor market fluctuations in the United States. First, we find that product market tightness and labor market tightness fluctuate a lot, which implies that the fixed-price equilibrium describes the data better than the competitive-price equilibrium. Next, we find that labor market tightness and employment are positively correlated, which suggests that the labor market fluctuations are mostly due to labor demand shocks and not to labor supply or mismatch shocks. Last, we find that product market tightness and output are positively correlated, which suggests that the labor demand shocks mostly reflect aggregate demand shocks and not technology shocks.

scholarly journals Macroeconomic effects of unconventional balance sheet policies in the United States and The Euro area

2020 ◽  
Vol 67 (5) ◽  
pp. 627-655
Author(s):  
Maciej Ryczkowski
Keyword(s):  
United States ◽  
Central Bank ◽  
Credit Risk ◽  
Balance Sheet ◽  
The United States ◽  
The Real ◽  
Positive Effects ◽  
Real Gdp ◽  
Long Run ◽  
Plausible Reason

Post Great Recession vector autoregression analysis revealed that the reserves? creation of the European Central Bank (ECB) until 2015 had an impact on the perceived credit risk that was either statistically insignificant or opposite to the expected one. The ECB?s unconventional measures returned the real GDP growth merely to an equilibrium of nil growth. In the United States, unconventional balance sheet policies of the Federal Reserve System (the Fed) significantly increased the real GDP by between 3.2% and 5.3% and reduced the initial rise of the perceived credit risk. We argue that the plausible reason for the discrepancy between the Fed and the ECB?s outcomes were the contrasting goals of both central banks. The major conclusion is that creation of money by the central bank may support the economy after a crisis, but it cannot deliver long-run prosperity. The positive effects of balance sheet policies were found to be short-lasting.

scholarly journals Does Immigration Affect Residential Real Estate Prices? Evidence From Australia

2020 ◽  
Author(s):  
Narvada Gopy-Ramdhany ◽  
Boopen SEETANAH
Keyword(s):  
Real Estate ◽  
Housing Prices ◽  
Housing Demand ◽  
Population Increase ◽  
Residential Real Estate ◽  
Vector Autoregressive ◽  
Long Run ◽  
Short Run ◽  
Real Estate Prices ◽  
Using Data

Abstract Worldwide migration flows have been gaining momentum over the past years, leading to population increases in some countries. Consequently, the population increase might have led to more housing demand in the host country. This study investigates the effect of immigration on housing prices in Australia by using data for eight states on a quarterly basis from 2004 – 2017. To study the possible dynamic and endogenous relationship between housing prices and immigration, a panel vector autoregressive error correction approach (PVECM) is adopted. Analysis of the results indicates that in the short run immigration positively and significantly affects housing prices, whereas in the long run no significant relationship was observed. From the regional breakdown and analysis, it is discerned that in some states there is significant and positive effect of immigration on residential real estate prices in the long run. Interestingly, analysis of reverse causation indicates that housing prices affect migration in a negative and significant way.

scholarly journals Trade Shocks and the Provision of Local Public Goods

2017 ◽  
Vol 9 (4) ◽  
pp. 101-143 ◽  
Author(s):  
Leo Feler ◽  
Mine Z. Senses
Keyword(s):  
Local Governments ◽  
Public Services ◽  
Housing Prices ◽  
Labor Demand ◽  
The United States ◽  
Income Shocks ◽  
Trade Shocks ◽  
Sales Taxation ◽  
Highly Correlated ◽  
The Impact

We analyze the impact of trade-induced income shocks on the size of local government and the provision of public services. Areas in the United States with declining labor demand and incomes due to increasing import competition from China experience relative declines in housing prices and business activity. Since local governments are disproportionately funded through property and sales taxation, declining property values and a decrease in economic activity translate into less revenue, which constrains the ability of local governments to provide public services. State and federal governments have limited ability to smooth local shocks, and the impact on the provision of public services is compounded when local income shocks are highly correlated with shocks in the rest of the state. The outcome is a relative decline not only in incomes but also in the quality of public services and amenities in trade exposed localities. (JEL F14, F16, H41, H71, R12, R31, R51)

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