Article Abstract:
A dynamic model of a landlord's decision to invest in the maintenance and renovation of housing is developed. This representation includes the intertemporal character of the problem, uncertainty, the function of future expectations, the maximum durability of housing, and the concept of adjustment costs. The incorporation of intertemporality and convex adjustment expenses optimizes the reinvestment path obviating the need for a one-time reinvestment initiative. The model comes in two versions. The first is for environments where there is perfect competition while the other is for non-perfect competition. The solutions of both models reveal the relationship between the optimal path of reinvestment and current and expected future rental prices, spending by the landlord that are in connection with the level of housing services, maintenance costs, and the adjustment cost element.
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Article Abstract:
A new approach for the measurement of climate demand is presented. Estimates of climate demand are useful for quantifying the effect of global warming and determining the spatial distribution of people throughout climatologically divergent regions. The method described employs a discrete choice utility maximization model that covers hedonic wage and rental regressions to measure demand for local public goods, including climate. Results demonstrate that there is a correlation between the willingness to pay quality of life index and the hedonic approach's ranking. In contrast, the migration approach fosters greater estimates of willingness to pay for a more moderate climate.
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Article Abstract:
Improvements in low income housing can be provided more cheaply by improving existing structures than by either new public construction or the Section 8 existing housing program. This is demonstrated by the use of Rosen's implicit markets approach to estimate the cost of repairing rental units in existing public structures. Allowance is made for inaccurate assessment of the state of repair of the housing and for certain inconsistencies in Rosen's original econometric model.
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