The Housing of Nations: Analysis and Policy in a Comparative Framework

269 Pages·1977·26.581 MB·English

by  Leland S. Burns, Leo Grebler (auth.)

THE HOUSING OF NATIONS
Also by Leland S. Burns
INVESTMENT TIME SCHEDULING IN URBAN RECONSTRUCTION
INTRA-METROPOLITAN CONTRASTS: THE ISLAND COMMUNITIES
THE COMPLEX METROPOLIS (with A. J. Harman)
HOUSING: SYMBOLANDSHELTER(with R. G. Healy, D. A. McAllister, and
B. K. Tjioe)
Also by Leo Grebler
CAPITAL FORMATION IN RESIDENTIAL REAL ESTATE (with D. M. Blank and
L. Winnick)
HOUSING ISSUES IN ECONOMIC STABILIZATION POLICY
EUROPE'S REBORN CITIES
URBAN RENEWAL IN EUROPEAN COUNTRIES
THE MEXICAN-AMERICAN PEOPLE (with J. W Moore and R. C. Guzman)
LARGE-SCALE HOUSING AND REAL ESTATE FIRMS
THE HOUSING
OF NATIONS
Analysis and Policy in a Comparative
Framework
Leland S. Burns and Leo Grebler
© Leland S. Burns and Leo Grebler 1977
Softcover reprint of the hardcover 1st edition 1977
All rights reserved. No part of this publication may be
reproduced or transmitted, in any form or by any means,
without permission
First published 1977 by
THE MACMILLAN PRESS LTD
London and Basingstoke
Associated companies in New York
Dublin Melbourne Johannesburg and Delhi
ISBN 978-1-349-03047-7 ISBN 978-1-349-03045-3 (eBook)
DOI 10.1007/978-1-349-03045-3
Library of Congress Catalog No. 76 43023
This book is sold subject
to the standard conditions
of the Net Book Agreement
Contents
List of Tables IX
Preface X111
Introduction 1
Why this Book? 2
The World Housing Supply 3
A Preview 12
The Definitional Thicket 15
Note on Coverage 18
2 Determinants of Housing Investment 20
International Cross-section Analysis 23
The Variables 25
The Sample 26
The Estimation Procedure 26
Multicollinearity 28
Empirical Results 30
Structural Stability 33
The Relative Importance of the Determinants 34
Other Variables 36
Trend Analysis for the United States 37
Appendix A Notes on Data and Sources 44
3 Determinants of Housing Consumption 47
Rent, Income, and Consumption 47
International Cross-section Analysis 53
Sample and Estimation Methods 53
Results of the Analysis 55
Interpretation 58
Appendix B Notes on Data and Sources 65
4 The Evolution of Housing Policies 68
The Failure of Private Initiative 70
Reform Efforts in the United States 72
Sanitation: the First Government Objective 74
VI Contents
Large-scale Intervention after World War I and Rent Control 76
Scope and Problems of European Housing Policies in the
Inter-war Period 77
Distinctive Features of U.S. Housing Policy 79
European Programs after the Second World War 83
Housing Policy in the Developing Countries 85
International Assistance Programs 89
Concluding Observations 93
5 A Theory of Housing Intervention 100
Criteria for Intervention 102
Internalities and Externalities 106
Internal Benefits 110
External Benefits Ill
Social Demand 113
The Incidence of Benefits 115
The Temporal Distribution 115
The Spatial Distribution 115
The Sectoral Distribution 117
Benefit Allocation: An Example 120
6 Social Costs Attributed to Poor Housing: A Review 126
The State of Knowledge 127
The Use of Knowledge 132
Toward a More Balanced View 136
7 A New Approach to Measuring Housing Benefits 141
The Measurement of Housing Benefits 141
Experimental Design 142
Criteria for Site Selection 143
Types of Benefit Streams 146
Summary of Case Studies 149
Miners in Korea 149
Steelworkers in Latin America 150
Synthetic Fiber Workers in Mexico 151
Recapitulation of Studies in Developing Countries !52
Studies in Less Developed U.S. Regions 153
The Relationship between Housing and the Structure of
Health 154
Housing and Deviant Behavior 156
Interpretation 162
A 'Second-best' Solution 164
Summary 168
Contents v11
Appendix C The Costs and Benefits of Housing In-
vestment: a Case Study 170
8 Effects of Housing Investment on the National Economy 193
Effects on Employment 193
Effects on Income and Saving 196
Effects on the Level of Prices 197
Effects on the Balance of Payments 203
Summary of Balance of Payments and Price Effects 205
Spatial Aspects 205
Political Implications 213
Multiple Goals of Public Policy 214
9 Toward Housing Policies for Social and Economic Develop-
ment 219
Objective and Subjective Priorities for Housing 220
Increasing Housing Allocations 225
Reducing Housing Costs 229
Savings through Technology 229
Savings through Quality Reduction 232
The Case for Second-best Solutions 233
Components of Second-best Solutions 235
The Provision of a 'Human Infrastructure' 237
The Provision of a Physical Infrastructure 239
The Enjoyment of Rights 239
Guidelines for Policy in Developing Nations 241
Glossary 246
Index 248
List of Tables
1.1 Levels and Rates of New Construction, World Regions,
approximately 1970 5
1.2 Distribution of World Population, 1950, 1975, and projected
2000 7
1.3 Urban Population as a Percentage of World Population,
1950, 1975, and projected 2000 9
1.4 Selected Indicators of Housing Quality, World Regions,
various years, 1960--70 11
2.1 Share of Housing in Total Output Relative to Development
Level, Population Growth and Urbanization, Thirty-nine
Nations, 1963-70 averages ( %) 24
2.2 Means, Standard Deviations, and Coefficients of Variation
for Variables, Investment Analysis, Thirty-nine Nations,
two time-periods 26
2.3 Comparison of Significance Levels, Linear and Non-linear
Fits, H Regressed on Y, Investment Analysis, Thirty-nine
Nations 27
2.4 Correlation Coefficients, Investment Analysis, Thirty-nine
Nations 28
2.5 Estimated Parameters, Regressions on H, Earlier and Later
Periods, Investment Analysis, Thi.rty-nine Nations 29
2.6 Estimated Parameters, Regressions on H, Pooled Sample
Investment Analysis, Thirty-nine Nations 34
2.7 Elasticities and Beta Coefficients, Investment Analysis,
Thirty-nine Nations 35
2.8 Trend Regressions, Residential Construction as a Percentage
of Gross National Product, United States, 1891-1970 39
3.1 Regressions of Rent and Consumption on Income, Para-
meters and Elasticities, Twenty-three Nations, 1960--9 49
3.2 Rent-Income Elasticities, Sixteen Nations, 1960--9 56
X List of Tables
3.3 Means, Standard Deviations, and Coefficients of Variation
for Variables, Consumption Analysis, Twenty-three Nati-
ons 57
3.4 t-Statistics of YJ, Leading R/C Zero to Four Years, Con-
sumption Analysis, Twenty-three Nations 57
3.5 Estimated Parameters, Regressions on R/C, Consumption
Analysis, Twenty-three Nations 58
3.6 Elasticities and Beta Coefficients, Consumption Analysis,
Twenty-three Nations 59
3.7 Correlation Coefficients, Consumption Analysis, Twenty-
three Nations 59
4.1 Distribution of International Aid for Housing and Related
Projects, 1970 and 1971 ( %) 92
5.1 Unadju~ted Distribution of Benefits and Costs of Total
Project, Hambaek, Korea 121
5.2 Adjusted Distribution of Benefits and Costs of Total Project,
Hambaek, Korea 123
7.1 Summary of Benefits Estimated, International Housing
Productivity Study 149
7.2 Change in Annual Number of Out-patient Visits after
Rehousing, Comparing Test and Control Groups by
Reason for Visit and by Sex and Age, South Dos Palos,
California, U.S. 155
7.3 Estimated Parameters, Regressions on Changes in Deviant
Behavior, Pine Ridge Indian Reservation, South Dakota,
u.s.
161
7.4 Estimated Parameters, Housing Component Determinants
of Health Change, South Dos Palos, California, U.S. 165
7.5 Derivation of Change in Number of Out-patient Visits,
South Dos Palos, California, U.S. 166
7.6 Costs of Plumbing Improvement and Health Benefit per
Family, South Dos Palos, California, U.S. 167
7.7 Costs of Waste Disposal System and Health Benefit per
Family, South Dos Palos, California, U.S. 168
C.l Estimated Parameters, Time Trends of Wages, Test and
Control Groups, Hambaek, Korea 175
C.2 Output during Overtime, Average Test Group and Control
Group Workers, Hambaek, Korea 180