Housing Market Research Paper Essay Example

Housing Market Research Paper Essay Trends and operations in the housing market underpin to a great extent the economic behavior of individuals and markets. This market’s unique economic importance is derived from several key features of the market, including its size, its indispensable character to people and its manners of financing, investment and consumption. It is thus easy to understand why many claim that housing economics underlie the current economic and financial slowdown. This paper aims to analyze the housing market as a primary indicator for the economy. Moreover, it uses key characteristics of the current situation in the market to explain macroeconomic concepts and theories. Thus, the main body of this paper is structured in accordance to economic reasoning and issues. The Housing Market and National Product The housing market contributes to a nation’s economy in several ways. Among the components of Gross National Product (GDP), housing activities represents production of construction-related goods and services, investments and housing services (i.e. renting activities). While the housing sector accounts to 3-10 percent of GDP and Gross National Income GNI and 20-30 percent of all gross fixed capital formation (Angel, 2000), countries differ in the division of housing activities between the government (e.g. through public housing schemes) and the private sector. Thus, it is clear that trends in this market significantly influence any country’s economy. We will write a custom essay sample on Housing Market Research Paper specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Housing Market Research Paper specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Housing Market Research Paper specifically for you FOR ONLY $16.38 $13.9/page Hire Writer When estimating the contribution of the housing market to measurements of national income and added value, economists consider several levels of economic activities: The simplest level of measurement is transactions in the marketplace. These include building and maintenance services, related industries, real-estate services, sales and rental. In addition, the purchase of new housing by households and landlords, known as residential investment, is another critical component of national income. However, other consumption issues are not made in the marketplace but must be considered as well. For example, once a person bought a house for himself, it would be fundamentally wrong to ignore the economic value of the house. That is, the house still serves as a valuable object, which provides housing to people, although they do not pay any rent for it. In order to consider this value as part of the economy, economists assume an imputed value of rent, as if the owner pays rent for himself. As a result, they prevent a paradoxical situation in which rented houses continue to create value (income for the owner and expense for the tenant), whereas unrented houses have no economic significance. The current housing market poses a major problem in terms of its underlying value creation. More specifically, excess construction during past years, boosted by fiscal incentives and reach supply in money markets, resulted in high rates of vacant houses. The major reason for that is the fact that the growth in the housing market outpaced the growth in population. Thus, not only equity investments depreciated due to lower sale and rental prices (the microeconomic equilibrium of demand and supply), but also the drop in growth rates of new tenants compared to creation of new houses has reduced the value of housing as an economic activity. Consequently, the US housing market has put a burden on the US economy. The housing sector has been a constant negative contributor to GDP, way before the outbreak of the financial crises. Residential Investment and Interest Rate Changes in interest rate typically bring about an opposite response in the housing market. An increase in the interest rate leads to a decrease in demand for housing and residential investment (Lipsey Cristal, 2005). This is due to several reasons: (ibid.) First, many potential buyers must take out mortgages to finance the investment. Increased interest rates lead to increase in the costs of loans, and hence make housing unaffordable for many people. Second, interest rates represent the opportunity cost of investment. Even for people who do not borrow to buy a home, the interest rate measures the opportunity cost of holding their wealth in housing rather than putting it in the bank. The higher interest rate shifts the demand curve for housing down. This causes the relative price of housing to fall, and the new price make potential investors to avoid residential investment, thus decreasing the supply of houses. Clearly, the drop in interest rates over the past two years may support the recovery process of the housing market. In order for that to happen, not only interest rates should remain low, but it will be also necessary that investors will perceive lower risk in the market. As in the case of other assets, it is possible that the current low prices, supported with sound fiscal and monetary policies, will bring about a faster recovery in this market than expected. The Housing Market and Fiscal Policy Fiscal decisions, in particular tax policies, have a critical influence on the housing market. In an open economy with a strong private housing market, government can encourage the housing market not by public ownership (i.e. direct government investments), but by other means: First, by allowing taxpayers to deduct interest on mortgages, the government can offset other trends in the market, and thus to subsidize home ownership and owner-occupied housing. Interestingly, the deduction is based on the nominal mortgage rate, so it is less influential today, because the inflation is rather low. Second, taxes on the income from a house (mainly rent), has a capitalization effect, which reduces the value of an asset. For example, a tax on the imputed income from owner-occupied housing depresses the value of houses (Rutherford, 2002). This effect may drive people to rent a house instead on owning it. Third, the US government can leverage its current ownership of mortgage companies by shifting some of its welfare expenditure to housing. By allowing in-kind transfers to low income Americans, houses can be occupied and welfare money can be saved through using those assets, which are currently depreciated. A secondary effect of such an action can be lower supply of va cant houses and thus higher price equilibrium in the housing market. Forth, the government needs to examine the degree to which it influences the level of risk in the market. Lower risk can be directly related not only to tax, but also to the barriers that are put on the different players. Higher residential investment can be achieved by allowing home builders to function effectively in a competitive and open economy, remove barriers that influence the efficiency of construction activities, and by ensuring regular supply of materials and machinery (Angel, 2000). It is clear, however, that all fiscal policy issues must be dealt with cautiously, in order to prevent the current situation, when too many incentives to the housing market have brought about overbuilding, excess supply, burden on national income arguably underpinned the recent economic and financial crisis.

Daltons Law of Partial Pressures - Worked Problem

Dalton's Law of Partial Pressures - Worked Problem Daltons Law of Partial Pressures, or Daltons Law, states that the total pressure of a gas in a container is the sum of the partial pressures of the individual gases in the container. Here is a worked example problem showing how to use Daltons Law to calculate the pressure of a gas. Review Dalton's Law Daltons Law of Partial Pressures is a gas law that can be stated: Ptotal P1 P2 P3 ... Pn where P1, P2, P3, Pn are the partial pressures of the individual gases in the mixture. Example Dalton's Law Calculation The pressure of a mixture of nitrogen, carbon dioxide, and oxygen is 150 kPa. What is the partial pressure of oxygen if the partial pressures of the nitrogen and carbon dioxide are 100 kPA and 24 kPa, respectively? For this example, you can simply plug the numbers into the equation and solve for the unknown quantity. P Pnitrogen Pcarbon dioxide Poxygen 150 kPa 100 kPa 24 kPa Poxygen Poxygen 150 kPa - 100 kPa - 24 kPa Poxygen 26 kPa Check your work. Its a good idea to add up the partial pressure to make sure the sum is the total pressure!

Should government invest in small businesses Essay

Should government invest in small businesses - Essay Example Small businesses are very important for economic growth of a country. According to FSB, small and medium sized businesses contribute over 98 per cent of all businesses within an area (Ibbotson and Moran, 2005, pp. 556-563). In London, small businesses contribute significantly by providing job opportunities to unemployed people. The GDP of the entire United Kingdom is highly contributed by small and medium-sized entrepreneurs. In the year 2012, the Federation of Small Businesses surveyed 200 small businesses in London. Small businesses reported that they had better opportunities in entire London during Olympics and games. People from different countries visited London during games and sports. It helped most of the SMEs to earn huge profits. Small businesses are important because they lead to new innovations in marketing strategies. Most of the SMEs’ entrepreneurs belong from a lower age-group in London as per the report of FSB. Young people have the potential to convert their i nitiatives to application, which has sustained the market till now. Government investment in small businesses can provide better chances for small business to grow and develop, which in-turn can help in the economic development of London. The Prime Minister of United Kingdom has brought forward some evidential facts during the CBI speech on 25th of October. The Prime Minister mentioned that the existing small businesses since 2002 have proved to be very beneficial for the economic growth of United Kingdom especially London.

Producer Theory & Existence of equilibrium Assignment

Producer Theory & Existence of equilibrium - Assignment Example There are J producers in an economy. For a producer j, yj represents combination of the quantities of all inputs and outputs. Yj is the set of input and outputs that are technically feasible for the producer j. Without any production in the economy the feasibility condition would imply that the aggregate consumption (input-output) is not larger than the aggregate endowment. If there is production, then the total resources allocated for consumption increase depending on net outputs of corresponding goods. In Arrow-Debreu model the producer’s want ‘profit maximization’ meaning that the input-output combination selected by a firm on a given a price should be such that no other input-output combination gives more profit. We have assumed here that the prices are fixed and firms choose inputs-outputs so as to maximize profit limiting itself to technically feasible combination i.e. yj ? Yj. There are other assumptions that need to be considered for example the one that i s often called the ‘free disposal’ assumption which is- the firm can add any amount of input without reducing output or if we look at it from the cost minimizing concept then it means to add input which can be disposed of at zero cost. If we â€Å"let p be an original price called by the Walrasian Auctioneer and let yj(p) the associated profit maximizing response.

Urinary Calculi Case Study Example | Topics and Well Written Essays - 250 words

Urinary Calculi - Case Study Example An imbalance in an individual’s metabolism is another causative factor of Urinary calculi. The imbalance leads to abnormally high levels of mineral salts agglomerating in the urine. Stones with uric acid composition occur in people having diseases such as gout, chronic dehydration and some cancers (Hesse, 2009). The third causative factor is hyperparathyroidism, a disorder affecting parathyroid glands making it overactive thus resulting to the production of excess parathyroid hormone. Other causative factors are type specific. Calcium stones result when there is too much calcium in the urine (Rao, Preminger & Kavanagh, 2009). Uric acid stones occur whenever there is a high amount of acid in the urine. Diet is also usable in analyzing the composition of a patient’s calculi. Patients taking little amount of water have a high tendency of experiencing dehydration. Dehydration is a causative factor leading urinary calculi. The state leads to dominance of the mineral salts resulting to the condition. An individual’s diet determines the contents of his or her calculi. An excess of calcium in the diet results in calcium

Justice And Injustice In The State Of Nature Essay

Justice And Injustice In The State Of Nature Essay According to Hobbes, in the State of Nature there is no property and both justice and injustice are impossible, whereas for Locke both property and justice and injustice exist before the Social Contract. Explain how each philosopher reaches his conclusion. Then make an evaluation. Which philosopher has the better argument? Which philosopher has the better position? Hobbes claimed that there is no property, justice and injustice in the State of Nature. To formulate Hobbes argument, firstly, we have to grasp Hobbesian world of pre-society, the State of Nature. For Hobbes, the State of Nature is a state of war, in which everyone regards one another as ememies, opposing against each other. In such situation, there is no guarantee that one can keep his or her own possessions constantly; also, there is no justice and injustice because no law has been established. Hobbess arguments are as following. Firstly, Bobbes pointed out a biological observation that everyone naturally has nearly equal faculties of body and mind, as a fundamental fact in the State of Natue. Even though we may find some people who are seemed stronger or smarter than the others, Hobbes added that if we count all abilities that everyone have by nature, we will find that everyone has quite equal abilities on averge. Besides, some may argue that some outstanding people, such as top scientists, have more abilities than the vulgur. However, Hobbes said, they attain their achievements not because of their more abilities than the others but because of their hard working in a long time; thus we cannot take their stories as the disproof that people do not have equal abilities by nature. In addition, Hobbes indicated that people always regard themselves being better than the others and this belief also can be taken as the evidence of peoples equality in natural faculties. From equality of abilities, hope and diffidence arise at the same time. On the one hand, since everyone has equal abilities, people naturally think they have chance to gain what they desire, so they persuit what they want actively. However, when two people desire the same thing and they cannot share it together, they will regard each other as opponent and enemy. Once the opposite state continues, it will be gradually extended to wrose situation in which everyone wants to destroy one another for his or her own conservation or pleasure. Hobbes concluded that there are three causes of quarrels: competition for gaining thing, diffidence for own conservation, and glory for reputation. In short, Hobbes claimed that with equal faculties, everyone has even opportunities to get what they want. However, because living resources are limited, it results in avoidlessly intense competitions among mankind. With consciousness that the others may have chances to get things we desire, we are commonly in an uneasy mental state. Since there is no arranged order or reasonable distribution in the state of nature, the best way to ensure ones living is to make efforts to get things as many as one can. What one is capable of obtaining is ones, no matter with what kind of methods, and that is why Bobbes said that force and fraud are two crucial virtues in the State of Nature, not justice. In the State of Nature, there is neither yours and mine, nor right and wrong. People do not have their respective legal possessions as their property. Everyone has to fight constantly to overcome their diffidence and earn their living. There is no justice and injustice because there is no law in the State of Nature. Property, justice and injustice, if they do exist, they will exist in the agreements of the members of a civil society. When people find that they can live in a more stable and peaceful state by composing society, they decide to consult with each other, set some social contracts besed on their mutual profits and transfer their right to the ruler. In this way, people start a recognized game in society and everyone who joins the game has to obey the commom rules, i.e., the laws. Then, we will have property, justice, and injustice. Locke provided a different interpretation of the origin of property, justice and injustice from Hobbes. Locke pointed that there are property, justice and injustice in the State of Nature, which are all protected by the law of nature. The State of Nature is governed by the law of nature, which ensures that property, justice and injustice exist in the State of Nature. Compared with Hobbesian State of Nature, Lockeian State of Nature is much more comfortable. It is a state of freedom in which people can decide their actions and deal with their possessions. It is also a state of equalty in wich people have reciprocal power and can share the same advantage of nature and mutual love. We have freedom and equality by nature, and both are from God. We are made by God. Because God prefer his creature to last during his pleasure, God gives us the rights to preserve ourselves. Following Gods will, we also have to preserve the other people, it means, we cannot invade the others unless we are offended. The law of nature can ensure peoples basic right, such as properties, liberty and so on, and restraint people to use their freedom to harm the others, unless out of lawful punishment. In sum, in the State of Nature, property, justice and injustice are all ensured by the law of nature. We can work hard to get what we desire and claim that we possess those things as our property. We can also judge what is just or injust according for everyones own conservation. After examining the theories of Hobbes and Locke, I think they both have some weak points in their arguments. Hobbes premise based on too many psychological suppositions and Lockes was out of religious belief. Hobbes pointed out that mankind are equal in both physical and mental abilities and he said we can find the proof from the fact that people always regard themselves as the best one. I think that this was just his subjective viewpoint. As for Locke, if one does not believe in God, then, the whole argument will not be set up. I prefer Lockes position, because I think even though Hobbes argument is reasonable in some points about mankinds competition, in his argument, mankind has no reason and just like animals in the jungle. Lockes position, in which mankind is free and equal, is more consisting with reason and would be a more stable basis for modern society.

Identification of Bacteria in Wastewater Essay example -- Scientific R

The analytical techniques for direct detection, enumeration, isolation and identification many different types of pathogenic bacteria in wastewater and accompanying sludge require well-trained technicians. Also it's usually are unpredictable, difficult, hugely expensive, costly and time-consuming procedures. The task would be enormous if one contemplates the monitoring of hundreds of pathogens and parasites on a routine basis in water and wastewater treatment plants, receiving waters, soils and others environmental samples (Lucero-Ramirez, 2000 and Bitton, 2005). To avoid these problems, Toze (1997) reported that the indicator microorganisms are indicators of fecal pollution used to determine the relative risk of the possible presences of microbial pathogens. Indicator organisms are also used as models for the behavior of pathogens e.g. to determine the efficiency of treatment processes. In this study the bacterial load of the effluent samples examined in this study was summarized in Table 1. There are no significant differences between geometric means of TBC and TC cell number in all samples collected from STP1, STP2 and STP3. The log10 CFU /100 mL of TC of effluent samples collected from STPs was significantly different from the log10 of FC and enterococci cell number (P ≠¤0.05 as determined by ANOVA). The geometric mean values for the TC ranged from 6.12 to 5.39 log10 CFU /100 mL. Enterococci levels in treated effluent at STP1 were significantly less than STP2 and STP3. According to data collected from STPs under study, STP2 is specific for treated of the domestic sewage coming from medical centers, while STP1 treated the wastewater coming from laboratories that operate on the experiences of pharmaceutical in the educationa... ...tion complies with the WHO guidelines for unrestricted irrigation regarding the FC content (≠¤1000 CFU/100 mL or 3 log10 CFU/100 mL). According to Alcalde et al., (2003) the effluent which has these parameters can be used for unrestricted irrigation of several crops during the entire year without any additional disinfection treatment. This results were accepted by Deportes et al. (1998) who reported that during storage, indicators and pathogenic microorganisms remained either undetectable or at low level. Moreover, survivals of microorganisms that are associated with solids are more than when they are suspended in water (Straub et al., 1992). Works Cited Straub, T. M., Pepper, I. L. and Gerba, C. P. (1992): Persistence of viruses in desert soil amended with anaerobically digested sewage sludge. Journal of Applied Environmental and Microbiology (58), 636–645.