Sources of fluctuations in the Boston economy

Article Abstract:

Sources of fluctuations in the economy of Boston, MA, from 1951 to 1971 are examined. For this purpose, vector autoregression models are developed to identify structural disturbances which may have affected aggregate or sectoral fluctuations in the city. Results show that the aggregate economy has been primarily shaped by both national and local shocks, but not by other fluctuation sources commonly perceived as the driver of economic growth in Boston. Defense spending is found to have minimal impact in most sectors. The findings suggest that the economic turnaround, referred to as the Massachusetts Miracle, can actually be traced to non-defense technology shocks. The subsequent downturn, on the other hand, is caused by negative demand shocks as well as factors unique to Boston.

Economic aspects, Economic development, Boston, Massachusetts, Massachusetts, Economic history

---

Transportation costs and the rent gradient

Article Abstract:

Spatial distribution housing price models typically show that transportation costs have a major role. Increased transit costs would therefore increase the hedonic price of centrally located residences. Empirical work confirms this analysis, but in unexpected ways. Changes in costs other than for gasoline appear to have been capitalized more or less correctly into housing costs, but time and gasoline cost changes have been overcapitalized. It is suggested that overcapitalization of gasoline costs was associated with unstable gasoline price expectations during the 1970s that were associated with boycotts and other trends of that time period. Time costs appear to have an extremely large effect, possibly due to the strong lack of utility of commuting time.

Finance, Transportation, Rents (Property)

---

The empirical content of the linearity-as-prepackaging hypothesis

Article Abstract:

A hypothesis is examined which suggests that the existence of arbitrage and repackagability in a market is indicated by the presence of a 'more linear' hedonic price index. Results indicate that the rental hedonic price linearity is not caused by the differing types of structures in the rental versus the owner-occupier markets, and that linearity as repackaging does have some content because landlords can combine and divide multiple units.

Analysis, Housing research

Similar abstracts:

• Abstracts: Are local property taxes important in the intrametropolitan location decisions of firms? An empirical analysis of the Minneapolis-St. Paul Metropolitan area
• Abstracts: Sources of inefficiency in subsidized housing programs: a comparison of U.S. and German experience. Theory and estimation in the economics of housing demand
• Abstracts: Will the Cure Cost More than the Cold? Denton on Terrorism and the Senate's "Horrible Ignorance". Federal IG's and Their Portable Computers: "A Quantum Improvement in the Way We Work"
• Abstracts: The response of city economies to national business cycles. A new testing procedure of the rank size distribution

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.