Table 2 - uploaded by Daniel Levy
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We use novel and unique data to study the effect of price changes in the market for luxury and middle class homes. We find that luxury home sales respond less to price changes than the middle-class home sales; in the market for luxury homes, past prices affect current prices; luxury home prices persist; and prices of luxury homes are stickier than...
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Recently, rapid increases in house prices have caught policy makers’ attention, especially where regional discrepancies are stark. House price fluctuations in large cities can amplify macroeconomic fluctuations and impair financial stability. Price rises in cities tend to be persistent, and since urban areas tend to attract speculative buyers, hous...
Citations
... Lee and Mori (2016) also proposed that certain types of housing gain visibility in terms of size, luxurious design, and high-quality locations with excellent neighborhood amenities. Additionally, by using the sampled data from the housing market in Israel, Levy and Snir (2018) found that, luxury housing prices are stickier and less flexible than the middle-class housing prices as the homebuyers in search of luxury will lead to price rigidities in some market segments and may affect the propagation of economic cycles. ...
... This is also consistent with the rationality of consumption behaviour sensitive to the economic cycle. In other words, during the economic recession, the price of housing with high luxury investment may show some rigidity that makes it undervalued by homebuyers (Levy & Snir, 2018). ...
Using the real options approach, we try to evaluate the luxury value inherent in high-end housing and estimate its premium returns based on the simulation of the model. The key finding of the paper is that the luxury premium from the value of the high-end housing can be identified by the real options model, which is rarely documented in the literature. In addition, the luxury value per unit size of high-end housing can be imputed through the model simulation. Based on the results, we find that the changes of the estimated value per unit size can explain the dynamic housing market behaviour in the recessions and expansions over the business cycle. The luxury value will even become negative during the recession period. In summary, the luxury premiums of high-end housing are higher than those of general housing, but not all highend housing has positive luxury premiums. If sellers and/or builders of high-end housing cannot meet the conditions that maximize the utility of high-end housing buyers, negative returns will accrue from selling high-end housing.
Wetlands are at the top of the list in terms of valuable ecosystem services, at the same time being one of the most sensitive ecosystems that are subject to human-induced changes. The delicate balance between their ever-changing waterlogged and dry areas, together with the associated rich flora and fauna, are easily
disturbed by human drivers, which are also responsible for long-term land use conversions. This paper aims to 1) document the spatial dynamics of the wetland
areas and lakes in the Jijia-Iași Wetlands Ramsar Site, using historical cartographic materials and modern land use data, and 2) pinpoint the anthropic drivers that shaped these dynamics, via a literature review. This Ramsar Site constitutes an
eloquent example of a wetland landscape that was mainly shaped by human intervention. A timeline is used to put into perspective the resulting maps and synthesised findings, and several inferences regarding the past, present, and future sensitivity of the wetlands in the study area are formulated. In 1935–2018, the two analysed elements followed opposite trends: while the wetland areas decreased from 10.61% of the study area to 4.79%, the lake features increased in size, from 0.68% of the Jijia-Iași Wetlands to 10.84%. In order to explain these changes, anthropogenic interventions were divided into three types of management (detrimental high human pressure, beneficial high human pressure, and beneficial low human pressure). In the long term scientific works, the unbalanced dynamics proved to be beneficial to the environment, as the construction of water collections determined a biodiversity boost and the designation of the study area as a Ramsar Site. This paper complements the scientific work focusing on “the Delta of Moldavia”, highlighting the practical implications of the management strategies applied during the reference period.
