Housing Supply in the Presence of Informality

We study housing supply in markets where informal housing is common. Using a combination of census and satellite data, we estimate housing supply for more than 90 metropolitan areas in Brazil. We find that widespread informal housing increases the housing supply elasticity, partially offsetting the downward pressure of geographical constraints. Our empirical approach is guided by a monocentric city model that includes informal housing. Our identification strategy relies on the use of two novel instruments, combining demographic data and public land ownership. We use the supply elasticity estimates to forecast the response of future housing prices to natural population growth.

Housing supply elasticity and growth: evidence from Italian cities

This paper examines the impact of housing supply elasticity on urban development. Using data for a sample of roughly one hundred Italian main cities observed over 40 years, we first estimate housing supply elasticities at the city level, measured as the correlation between the changes in the housing stock and in the house prices. Second, we show that differences in the elasticity of housing supply may determine the extent to which a demand shock translates into more intense employment growth or more expensive houses. To address endogeneity of housing supply elasticity, we exploit a synthetic measure of physical constraints to residential development as instrumental variable. We find that an exogenous increase in labor demand determines a rise of employment and house prices; however, in cities with a less elastic housing supply, the impact on economic growth is significantly lessened while the effects on house prices are larger.

Does monopsony exist in academic labor market?

This study aims to examine empirically the power of monopsony in the academic labor market, particularly in public universities. Upward sloping supply curve is indicative of monopsony and its power supply elasticity is suspected of demand for lecturers. The method used to estimate the supply equation for lecturer at four public universities in Indonesia is OLS model. A stratified sample is determined proportionally as much as 348 lecturers, by academic rank, gender and discipline. It is found that the supply elasticity is inelastic indicating that earnings lecturers are in non-competitive conditions. When employers face an inelastic supply curve, the marginal expenditure and average expenditure is very much different, which gave it the power to set wages, so it implies that the power of monopsony is big.

ANALYSIS OF NON-EQUILIBRIUM STATES OF MILK-RAW MATERIAL MARKET IN THE CONTEXT OF EFFECTIVE REGIONAL AGRARIAN POLICY IMPLEMENTATION

In order to analyze non-equilibrium states in the regional markets of milk-raw materials, a model of "estimated price" has been developed. That model is a function of two factors, an indicator opposite to the supply elasticity, the role of which is to assess the efficiency of the price stimulus and resource efficiency, acting as an indicator of the balanced state of the market. Four types of non-equilibrium market state were identified based on that model and tested on the example of individual markets of the VRO (Volga Region Okrug). Thus it is possible to classify markets according to two characteristics: surplus or deficit and positive or negative reaction of milk sales volume to price incentive. These parameters are determined by the structural characteristics of the market and, above all, by the level of development of the collective sector - agricultural organizations. In regions with low level of development of the collective sector there is a significant shortage in the market of milk-raw materials and a weak reaction of agricultural organizations to the price incentive. At the same time, the actual price of milk sales came close to the upper limit of the price range of the "estimated price," which as a matter offact indicates that there is a limit for further price incentives. However, even under these conditions, the structural position ofprocessors in the market is stronger and incapable of solving the deficit problem. Regions with a high level of development of the collective sector are characterized by two situations - either surplus or slight deficit with the possibility of transition to balance in the market and excessive price incentive. Here, the actual price turns out to be much higher than the "estimated price," which shows the presence of a complementary price, - an investment instrument for the development of dairy cattle breeding. The application of the "estimated price" tool allows to synthesize the methodology of several approaches. In particular the decomposition of the price factor of 1 ton of milk by two factors: full costs and profit from the sale of 1 ton of milk, allowed to link the provisions of the concept of supply elasticity and the theory of reproduction.