Residential property price premia (‘premia’) have long fascinated investors, particularly in times of euphoria, but their social, climatic and urban ramifications are much wider. A proper understanding of premia is hindered by the variety of exogenous influences determining them. They occur within idiosyncratic, complex, and continuously reconfiguring metropoli, conditioned by topography, history, regime, commerce, and culture. Given imperfectly competitive housing markets, conventional explanations for premia are either restricted to their financial dissection, trawl though metrics or cast around for hedonic coefficients. However, premia illuminate affordability and other problems in the broader planning and social debate. With the general significance of premia clarified, the research question of the project becomes: ‘What drives residential property price premium evolution in a metropolis?’ A complete answer involves dissecting the nature and establishing the location of putative premia and disentangling the influence and interactions of their various price drivers. To provide it, the project conducts a property and urban literature review. Based on theory’s insight that higher order contains lower order systems, it develops and investigates a general systems model of residential premia with two modes. The system is conditioned by ideology but forced by population and capital inflows. Within it, premia mutate, influenced by a nested hierarchy of more or less contaminated information. To investigate the model and its different modes, the project employs tests across system pointers, at the macro, meso (all urban) and micro spatial resolutions. First, the turbulence and permeability of residential property markets to exogenous influences is assessed. The project then looks at the urban mosaic in the growing Sunbelt migration city of Brisbane, Australia, over the boom period from 1998-2004. Locally, it conducts a case study and survey in one micro-location, seeking clues in transaction patterns (output), property system agents (components) and the information they use (feedback mechanisms). Finally, the project draws some relevant policy implications. Its key findings are that urban housing markets are open, complex and polarised. In an exuberant economic climate, migration and debt fuel metropolitan price escalation. Public urban initiatives reinforce central incumbent affluence or spark fresh bouts of speculation. Individual premia are heterogeneous but often feed off local construction projects or iconic refurbishment. Reflecting their demographics and motives, agent risk appetites are diverse although investors are usually less averse to renewal. System feedback involves a congruence of media and local activity signals. Neither local conviviality nor Bohemian influences are, by themselves, significant. Rather, buyer rationality is validated by post-purchase infrastructure completions. The thesis of this project is, hence, that in euphoric capital markets, migration and debt accelerates the endogenous mutation of property from homes within a community towards speculative paper assets. The implication is that the excessive proliferation of premia indicates economic imbalance and urban malaise which requires recognition and treatment. While premia are paid for perceived privilege or prospects, cognitive risk representations and expectations evolve. Sometimes judgment is contaminated by media fantasy but often validated by accommodating government policy and central revitalisation projects. Yet, within a wider social and ecological remit, rampant premia suggest flaws in urban strategy, governance and planning practice. In terms of windfall events or unearned rent, the cumulative effects of ill-considered projects and price distortions can be ugly and wasteful. They alienate and accentuate spatial privilege without generating sustainable jobs. The project has procedural and substantive policy implications. The dynamics of residential premia cannot be disentangled from capital market volatility, urban fragmentation and reconstitution. Enlightened property development requires visionary urban planning beyond electoral cycles. Rather than unregulated markets or disjointed incrementalism, the project points to the advantages of cohesive projects and inclusive hubs. It impels ecological and people-focused development to nurture capable, connected and considerate edge communities. Its first steps are theoretical recognition, policy clarification, government reform, market constraints, price and tax rationalisation and spatial transparency.

<p>Study I<i>Real Wage Determination in the Swedish Engineering Industry</i></p><p>This study uses the monopoly union model to examine the determination of real wages and in particular the effects of active labour market programmes (ALMPs) on real wages in the engineering industry. Quarterly data for the period 1970:1 to 1996:4 are used in a cointegration framework, utilising the Johansen's maximum likelihood procedure. On a basis of the Johansen (trace) test results, vector error correction (VEC) models are created in order to model the determination of real wages in the engineering industry. The estimation results support the presence of a long-run wage-raising effect to rises in the labour productivity, in the tax wedge, in the alternative real consumer wage and in real UI benefits. The estimation results also support the presence of a long-run wage-raising effect due to positive changes in the participation rates regarding ALMPs, relief jobs and labour market training. This could be interpreted as meaning that the possibility of being a participant in an ALMP increases the utility for workers of not being employed in the industry, which in turn could increase real wages in the industry in the long run. Finally, the estimation results show evidence of a long-run wage-reducing effect due to positive changes in the unemployment rate.</p><p>Study II<i>Intersectoral Wage Linkages in Sweden</i></p><p>The purpose of this study is to investigate whether the wage-setting in certain sectors of the Swedish economy affects the wage-setting in other sectors. The theoretical background is the Scandinavian model of inflation, which states that the wage-setting in the sectors exposed to international competition affects the wage-setting in the sheltered sectors of the economy. The Johansen maximum likelihood cointegration approach is applied to quarterly data on Swedish sector wages for the period 1980:1–2002:2. Different vector error correction (VEC) models are created, based on assumptions as to which sectors are exposed to international competition and which are not. The adaptability of wages between sectors is then tested by imposing restrictions on the estimated VEC models. Finally, Granger causality tests are performed in the different restricted/unrestricted VEC models to test for sector wage leadership. The empirical results indicate considerable adaptability in wages as between manufacturing, construction, the wholesale and retail trade, the central government sector and the municipalities and county councils sector. This is consistent with the assumptions of the Scandinavian model. Further, the empirical results indicate a low level of adaptability in wages as between the financial sector and manufacturing, and between the financial sector and the two public sectors. The Granger causality tests provide strong evidence for the presence of intersectoral wage causality, but no evidence of a wage-leading role in line with the assumptions of the Scandinavian model for any of the sectors. </p><p>Study III<i>Wage and Price Determination in the Private Sector in Sweden</i></p><p>The purpose of this study is to analyse wage and price determination in the private sector in Sweden during the period 1980–2003. The theoretical background is a variant of the “Imperfect competition model of inflation”, which assumes imperfect competition in the labour and product markets. According to the model wages and prices are determined as a result of a “battle of mark-ups” between trade unions and firms. The Johansen maximum likelihood cointegration approach is applied to quarterly Swedish data on consumer prices, import prices, private-sector nominal wages, private-sector labour productivity and the total unemployment rate for the period 1980:1–2003:3. The chosen cointegration rank of the estimated vector error correction (VEC) model is two. Thus, two cointegration relations are assumed: one for private-sector nominal wage determination and one for consumer price determination. </p><p>The estimation results indicate that an increase of consumer prices by one per cent lifts private-sector nominal wages by 0.8 per cent. Furthermore, an increase of private-sector nominal wages by one per cent increases consumer prices by one per cent. An increase of one percentage point in the total unemployment rate reduces private-sector nominal wages by about 4.5 per cent. The long-run effects of private-sector labour productivity and import prices on consumer prices are about –1.2 and 0.3 per cent, respectively. The Rehnberg agreement during 1991–92 and the monetary policy shift in 1993 affected the determination of private-sector nominal wages, private-sector labour productivity, import prices and the total unemployment rate. The “offensive” devaluation of the Swedish krona by 16 per cent in 1982:4, and the start of a floating Swedish krona and the substantial depreciation of the krona at this time affected the determination of import prices.</p>

<p>The aim of the thesis is twofold: to analyze the effects of the expectations on the Bothnia Line on the housing market and expectations on railway use. To fulfill these aims, three questions are considered:</p><p>1. To what extent is property prices influenced by the expected effects of the Bothnia Line?</p><p>2. Are there differences in expectations on regional development and future journeys between residents in different locations and with different individual characteristics?</p><p>3. How are trips to work affected by the expectations on the Bothnia Line and the performance of the train service according to residents in different locations?</p><p>Property prices are investigated quantitatively with data delivered from Lantmäteriet. The data contains every sold property from 1994 to 2001 in the municipalities of Umeå, Nordmaling, and Örnsköldsvik. Expectations on regional development and future traveling on the Bothnia Line were investigated with two questionnaires conducted in the autumn of 2002.</p><p>The empirical results from the study of property prices are clear. There are no signs of influence from the Bothnia Line on the property prices close to the railway stations or in the proximity of the railway.</p><p>The empirical results from the questionnaires reveal a mixed picture of the expectations. In the municipalities located furthest away from the railway, the expectations are low. On the contrary, a large proportion (>75 %) of the residents in municipalities along the railway line believe it can be useful for the population in general when searching for new employment opportunities. This is especially true for males living in Örnsköldsvik. A significantly smaller proportion (≈25 %) believes they will use the railway themselves.</p><p>One explanation to the geographic variations is that they are a result from an ongoing diffusion process. Residents in Örnsköldsvik were the first ones to have a visual image of the railway since the construction started there. As the construction continues, the expectations might increase in other locations as well. Another possibility is that people only react on word of mouth from someone that actually made a trip before they consider changing the mode of transport. If that is the case, the expectations will increase only after the opening of the railway line.</p><p>With the exception of residents in Nordmaling, expectations on future journeys with the Bothnia Line are low. The low expectations on journeys on the Bothnia Line might be explained by the lack of attraction between the places along the line. They are satisfied with their present situation and cannot find any rationale to consider other alternatives. It is a different story if they are forced to consider other alternatives. The result from a stated preference study shows that if they are offered employment at another place, the majority is willing to commute.</p>

Price premiums and discounts are currently paid for various classes of wheat in the US marketplace. These premiums and the known heterogeneity of grain protein across landscapes beg the question of whether grain could be separated on the farm to maximize revenues. Theoretically, the concavity or convexity of a price function defines if an opportunity to segregate grain exists. Although this is true, prices in the market place are paid in stepped increments, which result in unique revenue maximizing solutions. This study was conducted to determine the economic feasibility of segregating wheat by protein content on the combine harvester during harvest. Both web-based and spreadsheet calculators were built to predict the best point in which to segregate a crop at, as well as define the protein level and quantity of each segregated volume of grain. The costs of segregation vary by operation, but fixed, variable, and opportunity costs are estimated to total $0.1739 bu⁻¹ if segregation is used every year. Revenue gains varied with the price schedule, field mean protein value, and the standard deviation of protein. Revenue gains increased in proportion to the size of a price step in a price schedule. Soft white winter wheat showed the greatest potential for segregation; however, on average yearly expected premiums are less than $.05 bu⁻¹, well below total variable costs. Price schedules occur which allow for profits of over $1.00 bu⁻¹ from segregation, although these are not the norm. Historically, on-combine grain segregation would not be economically feasible for the average producer. However, under certain supply and demand conditions, premiums occur that would make on-combine grain segregation profitable. Individuals will have to evaluate the feasibility on a case-by-case basis. / Graduation date: 2013

In explaining why service prices differ across countries (both developed and developing countries), most studies have paid attention to the role of structural variables such as population, trade balance, resource abundance etc., by using a full employment assumption. Due to the existence of high urban unemployment in developing countries, the assumption of full employment is not suitable. The objective of this study is to build general equilibrium models that can be used to explain the service price differences across developing countries by incorporating rural-urban migration and urban unemployment. Internal migration from rural to urban areas is allowed because of distortions in labor market. The current work includes structural variables that are used in the literature, such as agricultural land, mineral resources, labor endowment, trade deficit, population, and tourism, along with 2 new variables, manufacturing capital and services capital. This study also considers the effects of macroeconomic policies (fiscal and monetary policies) on service prices which are neglected in the literature. The theoretical models suggest that, ceteris paribus, larger land area, mineral resources, higher trade deficits, tourist receipts, and money supply increase service prices, but larger populations reduce service prices. The effects of services capital, labor force, the terms of trade, and government spending are ambiguous from the theoretical models. An empirical study is performed to test the theoretical implications. The empirical results suggest that larger endowments of land, mineral resources, manufacturing capital, labor force, and services capital, as well as higher trade deficits, tourist receipts, government spending, and money supply increase the service prices. Conversely, larger populations reduce service prices as predicted. / Graduation date: 1993

No description available.

Thesis (doctoral)--Rijksuniversiteit te Groningen, 1995. / Summary in Dutch. Material type: Dissertations. Includes bibliographical references (p. 283-291).

Poverty is currently wide spread in Georgia. This paper is dedicated to an analysis of the causes, the extent and the intensity of poverty in Georgia. With a strong focus on the period after Shevardnadze’s presidency, the paper shows how poverty has grown in the past 15 years. In spite of a rising per capita income, the variance within the distribution of income is also increasing. The widening gap between high and low incomes represents a danger for the Georgian society and is associated with high unemployment rates, a lack of education for entire societal strata and rising criminality. In addition, high inflation rates affect mainly low income groups. Apparently, the Rose Revolution of 2003 did not lead to an attenuation of poverty but rather intensified it.

A common electricity market in Europe will in all probability lead to a levelling out of the electricity price, which implies that Swedish consumers will face higher electricity prices with a European structure. This new market situation will force industry and energy suppliers to take new essential measures as actors in a deregulated European electricity market. In this thesis it is shown how over 30 Swedish small and medium-sized industries can reduce their use of electricity by about 50%. When scaling up the result to include all Swedish industry, the measures will lead to a significant reduction in global CO2 emissions, and a situation where Sweden will have a net export of electricity. Changing industrial energy use towards increased use of district heating will consequently affect the local energy suppliers. As a local energy supplier invests in CHP and co-operates on heat with an industry that has altered its energy use, the system cost will be halved. Considering higher European electricity prices, the benefits will be even higher with possibilities to reduce global emission with over 350%. In Sweden where district heating is very well established, heat driven absorption technology is especially favourable since it will lead to cost effective electricity production and increased utilization time for a CHP plant. Vapour compression chillers have been compared with heat driven absorption cooling for a local energy utility with a district cooling network and for industries in a Swedish municipality with CHP. The results show that the higher the share of absorption technology is, in comparison to compression chillers, the lower the production cost will be for producing cooling. This thesis illustrates measures for Swedish industry and energy suppliers in a fully deregulated European electricity market that will shift the energy systems in the direction of cost-effectiveness and resource effectiveness. The thesis also shows that the benefits of the measures will increase even more when accounting with electricity prices with a higher European structures. To methodically change the use of electricity would be an economical way to increase the competitiveness of Swedish plant in relation to other European plants. Taking advantage of these particularly Swedish conditions will contribute to the creation of lean resource systems, and as a result help the whole EU region to meet its commitment under the Kyoto Protocol. Altering industrial energy use towards less electricity and energy dependence will be a competitive alternative to new electricity production and help secure energy supply in the European Union.

Study IReal Wage Determination in the Swedish Engineering Industry This study uses the monopoly union model to examine the determination of real wages and in particular the effects of active labour market programmes (ALMPs) on real wages in the engineering industry. Quarterly data for the period 1970:1 to 1996:4 are used in a cointegration framework, utilising the Johansen's maximum likelihood procedure. On a basis of the Johansen (trace) test results, vector error correction (VEC) models are created in order to model the determination of real wages in the engineering industry. The estimation results support the presence of a long-run wage-raising effect to rises in the labour productivity, in the tax wedge, in the alternative real consumer wage and in real UI benefits. The estimation results also support the presence of a long-run wage-raising effect due to positive changes in the participation rates regarding ALMPs, relief jobs and labour market training. This could be interpreted as meaning that the possibility of being a participant in an ALMP increases the utility for workers of not being employed in the industry, which in turn could increase real wages in the industry in the long run. Finally, the estimation results show evidence of a long-run wage-reducing effect due to positive changes in the unemployment rate. Study IIIntersectoral Wage Linkages in Sweden The purpose of this study is to investigate whether the wage-setting in certain sectors of the Swedish economy affects the wage-setting in other sectors. The theoretical background is the Scandinavian model of inflation, which states that the wage-setting in the sectors exposed to international competition affects the wage-setting in the sheltered sectors of the economy. The Johansen maximum likelihood cointegration approach is applied to quarterly data on Swedish sector wages for the period 1980:1–2002:2. Different vector error correction (VEC) models are created, based on assumptions as to which sectors are exposed to international competition and which are not. The adaptability of wages between sectors is then tested by imposing restrictions on the estimated VEC models. Finally, Granger causality tests are performed in the different restricted/unrestricted VEC models to test for sector wage leadership. The empirical results indicate considerable adaptability in wages as between manufacturing, construction, the wholesale and retail trade, the central government sector and the municipalities and county councils sector. This is consistent with the assumptions of the Scandinavian model. Further, the empirical results indicate a low level of adaptability in wages as between the financial sector and manufacturing, and between the financial sector and the two public sectors. The Granger causality tests provide strong evidence for the presence of intersectoral wage causality, but no evidence of a wage-leading role in line with the assumptions of the Scandinavian model for any of the sectors. Study IIIWage and Price Determination in the Private Sector in Sweden The purpose of this study is to analyse wage and price determination in the private sector in Sweden during the period 1980–2003. The theoretical background is a variant of the “Imperfect competition model of inflation”, which assumes imperfect competition in the labour and product markets. According to the model wages and prices are determined as a result of a “battle of mark-ups” between trade unions and firms. The Johansen maximum likelihood cointegration approach is applied to quarterly Swedish data on consumer prices, import prices, private-sector nominal wages, private-sector labour productivity and the total unemployment rate for the period 1980:1–2003:3. The chosen cointegration rank of the estimated vector error correction (VEC) model is two. Thus, two cointegration relations are assumed: one for private-sector nominal wage determination and one for consumer price determination. The estimation results indicate that an increase of consumer prices by one per cent lifts private-sector nominal wages by 0.8 per cent. Furthermore, an increase of private-sector nominal wages by one per cent increases consumer prices by one per cent. An increase of one percentage point in the total unemployment rate reduces private-sector nominal wages by about 4.5 per cent. The long-run effects of private-sector labour productivity and import prices on consumer prices are about –1.2 and 0.3 per cent, respectively. The Rehnberg agreement during 1991–92 and the monetary policy shift in 1993 affected the determination of private-sector nominal wages, private-sector labour productivity, import prices and the total unemployment rate. The “offensive” devaluation of the Swedish krona by 16 per cent in 1982:4, and the start of a floating Swedish krona and the substantial depreciation of the krona at this time affected the determination of import prices.