Housing the Poor in the Developing World: Methods of Analysis, Case Studies, and Policy

By A. Graham Tipple; Kenneth G. Willis | Go to book overview

NOTES
1
For a general review of rent control in developing countries, see Gilbert (1989), ch. 4.
2
Some of the assumptions required to derive this formula are somewhat restrictive. Possibly the most notable is the assumption that the price elasticity of demand for housing services is minus 1. Recent analysis for developing countries suggests a somewhat lower value (Malpezzi and Mayo, 1985). Use of the minus 1 value permits some simplification in the formula to estimate benefits. A comparison of the value of the net benefits (NB) computed using the mean values of the right-hand side variables (rather than using each observation to compute net benefits and then taking the mean) with equation [1] and their calculation with a price elasticity of minus 0.7 show differences that range from 1 to 12 per cent.
3
The use of logarithms in the formula comes from approximating the integration of the consumer surplus area under the demand curve.
4
The survey is described fully in Ministry of Planning (1987).
5
Whereas multi-collinearity in hedonic models reduces the precision of the coefficient estimates, the overall predictions remain quite unaffected. See Ozanne and Malpezzi (1985).
6
On the one hand, there may be a wealth effect, in that remittances are being amassed and allow the household to spend a larger share of its current income on housing. On the other hand, the amassing of funds may be making home purchase possible, which might have the effect of reducing current housing consumption as the family tries to increase its savings rate.
7
A potentially serious problem with this calculation is that market or asking rents are increased for the expected length of tenure over which the rents are frozen. While this may be the case, an examination of the rent-to-income ratios did not reveal recent mover households’ having to devote extraordinary shares of income to rent in order to secure a unit.
8
At the time of the study, the exchange rate was $US3=1 J D .
9
The average net benefit to tenants range from only 43 to 69 per cent of the rent reduction imposed on the landlords.
10
No systematic variations in revenue impacts were found for landlords of different types of properties of different sizes.
11
For more on the high vacancy rates in Jordan, see Struyk (1988).

-188-

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Housing the Poor in the Developing World: Methods of Analysis, Case Studies, and Policy
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Figures vii
  • Tables ix
  • Preface xv
  • 1 - Introduction to Housing Analysis and an Overview 1
  • 2 - Participant Observation 16
  • 3 - Cultural Change Analysis 35
  • 4 - Time Series Analysis 62
  • Notes 80
  • 5 - Comparative Analysis 81
  • 6 - Analysis of Government Mortgage Records 96
  • 7 - Ratio Analysis 113
  • 8 - Discriminant Analysis 126
  • 9 - Regression Analysis 143
  • 10 - Econometric Analysis 169
  • Notes 188
  • 11 - Contingent Valuation 189
  • 12 - Discounted Cash Flow Analysis 208
  • 13 - Cost-Benefit Analysis 234
  • 14 - Methods of Analysis and Policy 258
  • Bibliography 262
  • Index 279
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