Found 93 article(s) for author 'Edward Glaeser'

An Extrapolative Model of House Price Dynamics

An Extrapolative Model of House Price Dynamics. Edward Glaeser, March 2015, Paper. “A modest approximation by homebuyers leads house prices to display three attributes that are present in the data but usually missing from perfectly rational models of housing dynamics: momentum at one-year horizons, mean reversion at five-year horizons, and excess longer-term volatility relative to fundamentals. Valuing a house involves forecasting the current and future demand to live in the surrounding area. Buyers forecast using the history of transaction prices. Approximating buyers do not adjust for the expectations of past buyers, and instead assume…Link

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Maximising happiness does not maximise welfare

Maximising happiness does not maximise welfare, Edward Glaeser, October 15, 2014, Opinion. “Governments are now measuring happiness, or subjective wellbeing, and some have begun trying to maximise it. This column discusses recent research showing that happiness is not the same thing as utility. The choices people make suggest that they have desires and objectives other than happiness. It is therefore possible to make people worse off while increasing their reported subjective wellbeing…” Link

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Preserving History or Hindering Growth? The Heterogeneous Effects of Historic Districts on Local Housing Markets in New York City

Preserving History or Hindering Growth? The Heterogeneous Effects of Historic Districts on Local Housing Markets in New York City. Edward Glaeser, September 2014, Paper. “Since Brooklyn Heights was designated as New York City’s first landmarked neighborhood in 1965, the Landmarks Preservation Commission has designated 120 historic neighborhoods in the city. This paper develops a theory of heterogeneous impacts across neighborhoods and exploits variation in the timing of historic district designations in New York City to identify the effects of preservation policies on residential property markets. We combine an extensive…” Link

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Jobless men are the thorniest social issue in the US

Jobless men are the thorniest social issue in the US. Edward Glaeser, August 31, 2014, Opinion. “WHEN I was born, in 1967, only 5.2 percent of men between ages 25 and 54 were jobless. Over my lifetime, I have watched that number grow relentlessly to 16.6 percent today. This ocean of underemployment is the country’s most difficult social issue, because we are far from agreeing about how to get America working again. Those on the left favor infrastructure spending; the right wants to reform the social safety net. Political action, however, will require finding middle ground…” May require purchase or user account. Link

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How to Deregulate Cities and States

How to Deregulate Cities and States. Edward Glaeser, Cass Sunstein, August 24, 2014, Opinion. “A lot of attention has been devoted in recent years to overregulation at the national level. For many people, though, the regulations that hit hardest come from states and localities. The story of Uber’s fight with overzealous local regulators is only a well-publicized tip of the iceberg. A 2012 study conducted by the Institute for Justice finds that 102 trades and occupations now face licensing requirements in states or cities. The people who suffer most from them are those without a lot of money or advanced education…” Link

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How to Deregulate Cities and States; Cost-benefit analysis and ‘lookbacks’ could lift the unnecessary burdens of occupational licensing.

How to Deregulate Cities and States; Cost-benefit analysis and ‘lookbacks’ could lift the unnecessary burdens of occupational licensing. Edward Glaeser, Cass Sunstein, August 24, 2014, Opinion. “To engage in the gentle arts of design, hair cutting, beauty treatment and tree trimming, should people really be required to run some kind of regulatory gauntlet? A widely overlooked part of Paul Ryan’s antipoverty plan draws attention to the problem of occupational licensing, and it rightly calls on states and local governments “to begin to dismantle these barriers to upward mobility…” Link

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Housing Bubbles

Housing Bubbles. Edward Glaeser, August 2014, Paper. “Housing markets experience substantial price volatility, short term price change momentum and mean reversion of prices over the long run. Together these features, particularly at their most extreme, produce the classic shape of an asset bubble. In this paper, we review the stylized facts of housing bubbles and discuss theories that can potentially explain events like the boom-bust cycles of the 2000s. One set of theories assumes rationality and uses idiosyncratic features of the housing market, such as intensive search and short selling constraints, to explain the stylized facts. Cheap credit…” Link

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Unhappy Cities

Unhappy Cities. Edward Glaeser, July 2014, Paper. “There are persistent differences in self-reported subjective well-being across U.S. metropolitan areas, and residents of declining cities appear less happy than other Americans. Newer residents of these cities appear to be as unhappy as longer term residents, and yet some people continue to move to these areas. While the historical data on happiness are limited, the available facts suggest that cities that are now declining were also unhappy in their more prosperous past. One interpretation of these facts is that individuals do not…” May require purchase or user account. Link Verified October 11, 2014

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Housing Dynamics: An Urban Approach

Housing Dynamics: An Urban Approach. Edward Glaeser, May 2014, Paper. “A dynamic linear rational equilibrium model in the tradition of Alonso, Rosen and Roback is consistent with many outstanding stylized facts of housing markets. These include: (a) that the markets are local in nature; (b) that construction persistence is fully compatible with mean reversion in prices; and (c) that price changes are predictable. Calibration exercises to match moments of the real data have notable successes and failures. The volatility in local income processes as reflected in HMDA mortgage applicant data can account for much of the observed price…” Link

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Overview–the urban imperative: toward shared prosperity

Overview–The Urban Imperative: Toward Shared Prosperity. Edward Glaeser, May 1, 2014, Paper. “Urbanization is undoubtedly a key driver of development–cities provide the national platform for prosperity, job creation, and poverty reduction. But urbanization also poses enormous challenges that one is familiar with: congestion, air pollution, social divisions, crime, the breakdown of public services and infrastructure, and the slums that one billion urban resident’s call home. Urbanization is perhaps the single most important question in development today. It is clear that cities have not performed as well as can be expected in their transformative…” Link

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