Based on an extensive sample of individual dwelling units, this article estimates the market value, or the implicit prices, of specific aspects of the bundles of residential services consumed by urban households. Quantitative estimates were obtained by regressing market price of owner- and renter-occupied dwelling units on measures of the qualitative and quantitative dimensions of the housing bundle. The measures of residential quality associated with individual dwelling units were obtained by using factor analysis to aggregate some 39 indexes of the quality of narrowly defined aspects of the dwelling units, structures, parcels, and micro-neighborhoods. The analysis indicates that the quality of the bundle of residential services has about as much effect on the price of housing as such objective aspects as the number of rooms, number of bathrooms, and lot size. The analysis also confirms the influence of neighborhood schools on the value of residential properties and indicates that rental propert...

Measuring the Value of Housing Quality

This article presents empirical estimates of racial discrimination in the New Haven, Connecticut, housing market. The results are based on over 200 rental units for which there is comprehensive information on the characteristics of the dwellings. Using multiple-regression techniques, we estimate that blacks and whites do pay different amounts for equivalent units. For black female-headed households the markup relative to white males is 16 percent; for black male-headed households, 7.5 percent. Also the work indicates that rents for whites in boundary (integrated) areas are about 7 percent lower than for black households in these areas.

Racial Discrimination, Segregation, and the Price of Housing

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Income and urban residence: an analysis of consumer demand for location

Income and Urban Residence: An Analysis of Consumer Demand

The test which KQ employ to demonstrate the existence of supply restrictions is based on the relative lack of single family houses available to blacks, pp 270-72 Thev find, in a sample which uses cities as observations, that the extent to which the actual black homeownership rate falls short of the expected rate is negatively correlated with the proportion of central city housing which is single family1 As KQ acknowledge, theirs is not a complete test of the supplyT restriction hypothesis This comment provides further tests of that hypothesis A relative lack of single family houses in the black housing submarket2 causes lower black homeownership because apartments are not generally available for owner occupancy and single family houses are usually owner occupied However, some single family houses in black areas may not be available for owner occupancy due to difficulties which blacks face in the mortgage market The procedure followed in this paper is to make a correction for housing stock characteristics Assuming the correction is made properly, the remaining difference between the black and white homneownership rates is due to the fact that blacks have more difficultv obtaining mortgages on single family houses Section I presents a linear probability-ofhomneownership function with a correction for housing stock characteristics Section II presents a model in which the type of tenure (own or rent) and the structure type of a household are jointly dependent variables Section III examines some implications for policv

Housing market discrimination, homeownership, and savings behavior

The general model, 660 — The regression model, 663 — Correlation and regression results, 666 — Evaluation, 667 — Some conclusions, 670 — Appendix, 671

A Market Separation Theory of Rent Differentials in Metropolitan Areas

AS A CONSEQUENCE of increased volatility in the level of rates, interest rate risk has assumed greater significance as a determinant of the systematic risk associated with holding common stock. The purpose of this paper is to assess the interest rate risk associated with the assets of public utility companies and to analyze the extent to which it is shared between three groups: (a) the consumer;' (b) the firm's stockholders; and (c) the firm's debtholders. The paper attempts to empirically estimate the division of the risk in the recent past, and its relationship to the unique risk characteristics associated with public utility stocks. We shall also discuss the roles played by financial management and regulatory policy in risk allocation. As an aside, the empirical analysis also serves as a limited test of the relationships between financial leverage and risk proposed by Haugen and Wichern in [3]. Section I of this paper provides some descriptive statistics that support the contention that Electric Utility Stocks are indeed unique in their risk characteristics. We then attempt to explain why this is true. Section II sets forth the design of a cross-section regression experiment used to (a) estimate the interest rate risk associated with the assets of an electric utility, and (b) provide results used in measuring the division of this risk among the three groups. Section III sets forth the procedures used to estimate the variables contained in the cross-section regression analysis, and Section IV provides the results of the regression, as well as estimates of the relative risk shares taken by debt and equity. The share shifted to consumers through regulatory policy is estimated independently in Section V. Finally, a discussion of the relationship between risk sharing and financial management and rate regulation is provided in Section VI. I. THE RELATIVE RISK CHARACTERISTICS OF ELECTRIC UTILITY STOCKS In this section, the common stocks of public utilities and of nonregulated firms are compared with respect to the nondiversifiable risk that can be associated with (a) changing interest rates, and (b) other market based factors. In doing so, we assume

Rate regulation, capital structure, and the sharing of interest rate risk in the electric utility industry†

Market efficiency: Mexico versus the U.S.

In this paper the semi-strong form of the efficient market hypothesis is tested with a trading rule based on Box-Jenkins forecasts of earnings per share numbers. The quarterly earnings per share series are modeled for a number of firms. The models are updated quarter by quarter and investments are made in the stocks with the largest forecasted growth rates for the next quarter. The risk-adjusted performance of such a strategy is shown to be inconsistant with semi-strong market efficiency.

Trading based on forecasts of earnings per share: A test of the efficient market hypothesis

In a world characterized by perfect and complete capital markets, the suc- cess (or failure) of a merger is judged by the merger's impact on stockholder wealth. With completeness, the merger's impact on the probability distribution generating stockholder returns is unimportant. The perfect market assumption

Robert A. Haugen

Papers

A Market Separation Theory of Rent Differentials in Metropolitan Areas

Rate regulation, capital structure, and the sharing of interest rate risk in the electric utility industry†

Market efficiency: Mexico versus the U.S.

Trading based on forecasts of earnings per share: A test of the efficient market hypothesis