THE IMPACT OF REMITTANCES ON REGIONAL CONSUMPTION AND INVESTMENT

This paper examines the effects of international remittances on regional economic development using spatial data from an original household survey carried out in the Republic of Moldova. I analyze remittance flows with a model that estimates regional (urban and rural) budget shares of consumption and investment expenditure categories for rural and urban households. An important contribution of the paper is that it analyzes the effect of remittances in the regions where spending takes place, which is not necessarily the same as the region where the households originating this spending reside. Using the multinomial logit approach, I control for potential selectivity and endogeneity biases of remittances. The results show that remittances lead to significantly increasing marginal productive investments in urban regions at the expense of rural regions. The fundamental finding of the study is that remittances influence the flight of productive capital out of rural areas into urban regions (a pattern similar to the crowding‐out effect of the Dutch Disease). The analysis carried out in this paper can be applied to other temporary income transfers and exogenous spending injected in the region that affect households' regional expenditure patterns.     

唐代農村家庭生計探略

唐代的農村家庭是一個典型的生産單位和經濟單位。本文通過對於農家的土地占有和糧食産量等資料的考證,討論當時農民家庭的基本收入、消費和生産成本,試圖給出唐代農家經濟生活的大致輪廓。作爲比較的參照系,還對於一般城市平民和低級官僚家庭生活作了簡單勾勒。     

THE SOCIAL BENEFITS OF URBAN CULTURAL AMENITIES*

ABSTRACT. This paper uses a two-stage hedonic wage approach to derive the benefits from improvement of five cultural amenities. It is argued that the hedonic approach permits valuation of both private and local public aspects of cultural goods since access to the amenity is an essential input in the production of the final service flow. Empirical estimates of willingness to pay suggest price and income elasticities are approximately unity. Lower-bound estimates of marginal benefits for a representative city range from $0.85 million for an additional theater to $57.9 million for an additional zoo facility.     

STRUCTURAL ESTIMATION OF RESIDENTIAL MOBILITY AND HOUSING TENURE CHOICE*

ABSTRACT. This study is devoted to studying households'decisions to move and whether to rent or own after moving. It employs dynamic discrete choice models which condition households'decisions on their circumstances at every point in time during the length of the observation while accounting for individual heterogeneity. The results show that key dynamic elements, captured by means of lagged dependent variables, as well as household heterogeneity, are significant determinants of the tenure choice and mobility decisions. Moreover, homeowners are found to be responsive to housing market conditions when adjusting their housing stock. Housing-price appreciation is found to discourage renters from becoming homeowners. Finally, our results reject the proportional monetary transaction costs specification suggesting that monetary transaction costs might be fixed.     

Beyond the commodity economy: the persistence of informal economic activity in rural England

A widely held view in economic geography is that the commodity economy — in which goods and services are produced by capitalist firms for a profit under market conditions — has permeated, albeit slowly and unevenly, ever more areas of daily life. Until now, however, little evidence has been provided of the extent and unevenness of its penetration. This is the intention of this paper. First, secondary data are used to evaluate the penetration of commodification in the advanced economies. Rather than find its permeation into every crevice of daily life, a non-commodified sphere as large as the commodified sphere is identified. Reporting case study evidence on the commodification of household services in rural England, explanations are then sought for the persistence of these non-commodified spaces and the uneven penetration of commodification. This reveals that despite household services being more commodified in higher income rural areas, commodification and its uneven contours cannot be explained simply in terms of economic determinants. Although economic forces prevent the advance of commodification, especially in lower income rural areas, strong 'cultures of resistance' to the edicts of commodification also impede its deeper penetration. The paper thus concludes by outlining the roles played by both economic and cultural forces in shaping commodification and its uneven contours, as well as the need for economic geography to broaden its scope beyond the commodity economy.     

Decomposing the Rural-Urban Differentials in Childhood Malnutrition in India, 1992–2006

Using data from multi-waves of the National Family Health Survey conducted in India between 1992 and 2006, this study examines the pattern of rural–urban differentials in childhood malnutrition in India over time. Furthermore, it identifies the factors responsible for the rural–urban gap in childhood malnutrition and quantifies their contribution. The result shows a considerable and widening gap in childhood malnutrition across rural–urban residence in the country over the study period. The rural–urban gap in childhood malnutrition has narrowed in a few states whereas it widened in most states over time. The economic status of the household and parental education was the most significant contributors to the rural–urban gap in childhood malnutrition in India. Based on the findings, this study suggests that to reduce the rural–urban gap in childhood malnutrition, focus should be given to the rural poor.     

Women's Empowerment Through Home–based Work: Evidence from India

This article examines the extent to which home–based production in the garment sector of Ahmedabad, India, serves to empower its female participants, defining empowerment in terms of control over enterprise income and decision–making within the household. It places this question within the literatures on resource theory and bargaining models of the household, both of which posit that improved access to resources increases women's power in the household. This study highlights why access to resources may not lead so directly to improvements in women's position in the household in the Indian context. It then discusses why home–based work may be less empowering than sources of work outside of the home. The arguments about the empowerment potential of women's access to resources through home–based work are tested by examining, first, the determinants of control over the income generated by women in home–based garment production and, second, to what extent access to and control over income from this source translates into involvement in decisions which are atypically women's and yet important to their lives. The results provide a better understanding of the potential of home–based work to offer women in urban India a source of economic activity that also can translate into increased intra–household power.     

Immigrants and homelessness—at risk in Canada's outer suburbs

Homelessness is a risk for growing numbers of immigrants. Largely as a result of low incomes, newcomers are more likely than the Canadian-born to spend over 50 percent of total household income on housing costs. Many newcomers suffer 'hidden homelessness'. They do not use shelters and other services, but share accommodation, couch-surf and rely on their social contacts for temporary and precarious housing. The adverse impact of low incomes on the housing experiences of Canadian newcomers is exacerbated in the outer suburbs of metropolitan areas where the supply of affordable housing is limited. This study explores the social backgrounds and housing experiences of immigrant households that are vulnerable to homelessness in outer suburbs through analysis of special tabulations from the 2001 census for York Region and interviews with representatives from local community organisations serving immigrant and low-income populations. The initial findings confirm that a high proportion of newcomers in York Region are at-risk of homelessness during the first 10 years of residence in Canada. Although renters are more vulnerable than homeowners, a substantial percentage of newcomers who are homeowners pay more than 30 percent of their total income on housing costs. The shortage of affordable rental housing in the outer suburbs exacerbates the impacts of low incomes, immigration status, household size and ethnoracial identities on immigrants' housing.     

HEDONIC PRICES,IDENTIFICATION, AND THE DEMAND FOR PUBLIC SAFETY*

In this paper, we use a two-stage intercity hedonic model to estimate household demand for public safety. This approach is shown to readily address the identification problem inherent in the hedonic model. Data from the 1980 Public Use Microdata Sample are used to estimate a willingness-to-pay function for the public-safety good. Income is found to be the primary determinant of willingness to pay. Indeed, the influence of income outweighs the combined impact of family life-cycle considerations.     

Caste and Regional Influences on the Practice of ‘Untouchability’ in India

Millions of people in India are born with scars that will last a lifetime. These are scars of social rather than physical blemish and they reduce the capacity of such persons to function in life, free of prejudice and untainted by stigma. The source of these wounds is the practice of ‘untouchability’, meaning that any physical contact with them is avoided because they are considered ‘unclean’. This article studies the nature of households in India that admit to ‘practising untouchability’ — in the sense of avoiding contact with persons they regard as unclean — and contrasts such households with those that claim to be not ‘practising untouchability’. Such a contrast is possible because the data used, which are from the Indian Human Development Survey, associate with each household a wealth of economic, social and demographic data. Consequently, it is possible to estimate the likelihood of a household practising untouchability, conditional upon the values pertaining to it of a number of relevant factors. These include its social group, its main source of income, the highest educational level of its members, its urban or rural location and its region of residence. The central finding of the analysis is that the practice of untouchability is determined more by the region in which a household is located than by the caste to which it belongs.     

Politics,income perceptions and living standards

Political and economic debates over community living standards, poverty and economic inequality often pay little attention to the subjective and socially conditioned aspects which influence public perceptions of material wellbeing. An attempt to explore the latter involved asking a national sample of Australian voters in 1988 to estimate the minimum weekly income on which they could ‘just make ends meet’. The amounts nominated varied not only according to the financial and domestic circumstances of respondents, but also with their age, education, housing situation and political affiliation. The relationships between these variables and the ‘making ends meet’ income level are estimated statistically and their implications explored with the help of several illustrative examples. Some speculations are offered as to what these results say about the social meaning of income levels and possible implications for public policy.     

Designing a socially efficient cultural policy: the case of municipal theaters in Warsaw

While public support for culture has become a less self-evident privilege than in the past, the economic evidence for benefits a society gains from these goods has become essential for both cultural economics and cultural policy. The aim of our study is to investigate socially preferred ways of allocating scarce public resources among municipal theaters in Warsaw. The problem investigated is a current issue for local policy-making, but in a broader sense, it illustrates how state-of-the-art stated preference methods can be employed to support cultural policy. We find that inhabitants of Warsaw assign a positive value to the broader accessibility of the theaters, and their willingness to pay for making them a truly public good (by introducing a program of highly discounted tickets) exceeds the costs of such a policy. However, we also find that the cost-benefit relationship varies across theaters with different types of plays in their repertories. Our results imply a different level of socially efficient support for experimental, drama, children’s and entertainment theaters.     

Out of the dark but not out of the cage: women's empowerment and gender relations in the Dangme West district of Ghana

In Ghana, strategies to address poverty among rural women have often been linked to women's empowerment programmes with credit as a core component of these. Yet, many programmes focus on the economic benefit to women without necessarily looking at the impact on gender relations at the household level and its implications on women. Using quantitative and qualitative data from the Dangme West district of Ghana, this article shows how poverty reduction programmes with credit components can reduce women's vulnerability to poverty and empower them. But much more needs to be done to complement these efforts. The study shows that women beneficiaries as against women non-beneficiaries have significantly improved their socio-economic status through access to financial and non-financial resources. This has in certain instances improved gender relations at the household level, with women being recognized as earners of income and contributors to household budget. However, some women still regard their spouses as ‘heads’ and require their consent in decisions even in issues that have to do with their own personal lives. Moreover, the improved economic status of women has resulted in a ‘power conflict’, creating confrontation between spouses. The article recommends that, as part of their programmes, assisting organizations and institutions must address ‘power relations’, the basis of gender subordination at the household level, otherwise socio-cultural norms and practices, underpinned by patriarchal structures, will remain ‘cages’ for rural women.     

Discerning institutional and spatial restructuring under emergent neoliberal projects in India

The policy of economic liberalization pursued by the Indian government since the 1990s in response to an economic slowdown has led to the creative destruction of institutional space and the built environment. India launched the Smart Cities Mission and the Delhi-Mumbai Industrial Corridor to enhance infrastructure delivery and employment opportunities. Focusing on these cases and using direct observation and in-depth personal interviews, this paper explores the role of emergent neoliberal projects in the country's institutional and spatial restructuring at different scales. The aim is to make a twofold contribution to urban research: first, to contribute to the discourse on neoliberalism by identifying institutional and spatial restructuring in India based on the concept of creative destruction; and second, by validating the significance of strong state and political willingness in distributing neoliberal benefits such as affordable housing and services to the poor. The paper argues for a stronger role of the state in creating equity in the urban development process and infrastructure delivery.     

基于农户视角的农区发展研究

基于河南省11村的1251农户调查数据的分析表明:①农村发展的主要障碍是资金缺乏以及农区发展环境约束,农民自身素能(如缺乏技术、文化水平低等)也有一定影响。②农区发展中最希望得到的外部支持是给项目建厂或提供资金支持,还有一些农户期望政府提供其他发展生产上的帮助。③农户对未来的期望以改善生活条件为主,且随着未来时间段的变长,他们的总体期望变得更加模糊。④多数农户(占样本71.58%)对其生活现状"基本满意"或"满意"。⑤农户对其发展的考虑,受多种因素的影响。其中家庭收入状况、受教育水平、地理环境等的作用更为明显。基于农户视角对农区发展的分析,对有关农区发展政策的设计有借鉴意义。     

Microeconomic Formulation and Estimation of a Residential Location Choice Model: Implications for the Value of Time

Abstract We formulate a microeconomic model of residential location choice behavior as an aggregate of the individual behaviors of household members, subject to individual time constraints and a common income budget. A simplified version of the model is estimated from stated preference rank‐order data, yielding a function that may be interpretated as a conditional indirect utility function. We consider Box‐Tukey transformations, segmentation by income class, and a consistent treatment of data at different rank depths using the simultaneous mixed‐estimation method. Measures of the household's willingness‐to‐pay (through rents) for reducing travel times to work and study in the short run, are interpreted as subjective values of time and compared with such values derived from mode choice models. Our results are plausible, and consistent with recent findings showing that the short‐run benefits of transport projects derived by transport models are larger than benefits measured at the land use system.     

A Bigger Piece of a Very Small Pie: Intrahousehold Resource Allocation and Poverty Reduction in Africa

Feminist research has convincingly shown that an increase in household income does not necessarily lead to improvement in the well‐being of all members of the household. More questionable is the policy conclusion often drawn from this research for rural Africa: redressing gender imbalance in control of productive resources will significantly reduce poverty. This contribution argues that the evidence and analysis presented by two studies repeatedly cited to show that gender inequality is inefficient are problematic. It is mythical to suggest that tinkering with women's market position by exchanging unequal collective rights to productive resources for individual ones will decisively reduce rural poverty in Africa. That will depend on the restructuring of long‐term and deeply unequal processes of integration in the market, not on a firmer insertion of women within existing patterns of individualization and commodification of productive resources.     

Estimating the Marginal Willingness to Pay for Commuting

With informational frictions on the labor market, hedonic wage regressions provide biased estimates of the willingness to pay for job attributes. We show that a recent theoretical result, which states that the variation in job durations provides a basis for obtaining good estimates, can be generalized to a wide class of search models. We apply this result by estimating the marginal willingness of employed workers to pay for commuting, using Dutch longitudinal data. The average willingness to pay for one hour commuting is estimated to equal almost half of the hourly wage rate.     

Japan's FTA politics and the problem of agricultural trade liberalisation

Japan's willingness to negotiate Free Trade Agreements (FTAs) is not matched by a readiness to liberalise agricultural trade. Japan has used a variety of mechanisms to limit the extent of agricultural concessions in FTAs. Public choice theory predicts that FTAs are a more effective instrument for opening Japan's agricultural market than the WTO because they reshape the domestic politics of Japanese trade in ways that are conducive to further market opening. FTAs do this by altering the domestic politics of trade policymaking on the demand side as well as some aspects of the supply side. On the demand side, business groups mobilise even more strongly to demand an end to agricultural protection, whilst on the supply side, the value of FTAs for broader state interests are recognised by politician-leaders. Various structural obstacles in the policymaking process, however, prevent the altered demand and supply-side dynamics from necessarily delivering free trade outcomes.     

Valuing visitor benefits at Maehu Picchu

Abstract

This paper shows how the application of economic valuation techniques could assist decisionmakers in managing the unique archaeological site of Machu Picchu in a more efficient way. These techniques demonstrate that the current admission fee is very low compared with the typical tourist's willingness to pay. Raising the admission charge to 40 would not reduce the revenue raised and would, at the same time, reduce maintenance costs and damage to the site caused by high visitor numbers. Site managers should consider practising price discrimination whereby foreign tourists pay a fee substantially higher than that charged to Peruvian nationals.