The Municipal Cost of Foreclosure: A Chicago Case Study

The recent rise in nonprime mortgage foreclosures has opened a new and costly chapter in many of the nation's most distressed urban neighborhoods. Particularly problematic is the fact that today's foreclosures impose significant costs not only on borrowers and lenders, but also on municipal governments, neighboring homeowners and others with a financial interest in nearby properties. While there is an extensive literature on the impact that delinquency, default, and foreclosure have on lenders, borrowers, and other entities that are direct parties to the mortgage transaction in question, the costs that these mortgage failures impose on municipalities and other third parties are far less well understood. This is due to two factors. First, municipal and other third party costs are difficult to identify, and therefore often go undetected. Second, even where identified, the activities that generate costs often blend in with other governmental functions, or are otherwise difficult to quantify, reinforcing the tendency for them to remain invisible.This study attempts to fill that void. Using the City of Chicago as a case in point, this study presents a conceptual framework that makes explicit the various costs of foreclosure, especially as they relate to local governments and courts. By carefully reviewing the foreclosure process as it plays out in Chicago, the paper isolates 26 separate costs incurred for the provision of 'foreclosure related services.' These costs reflect actions undertaken by 15 separate governmental units that are part of the overall municipal infrastructure underlying the foreclosure process. While in some cases these municipal activities are limited to simple and relatively inexpensive ministerial duties of agencies like the Recorder of Deeds, in more complex foreclosure scenarios these municipal costs can reach tens of thousands of dollars. In extreme cases, the concentrated foreclosures can put downward pressure on area property values and indirectly rob area homeowners of hundreds of thousands of dollars of home equity

GHG mitigation in Australia: an overview of the current policy landscape

This report outlines Australia’s policy framework for greenhouse gas emissions reduction, identifies areas of potential change in the near term, and attempts to evaluate the impact of current policies on Australia’s emissions trajectory to 2020. It assesses Australia’s international commitments, and the major policies of federal and state institutions to reduce emissions. It also assesses the likely success of these policies in achieving Australia’s emissions reduction goals.Authored by Olivia Kember and Erwin Jackson with Merry Chandra

The future of the USO - Economic rationale for universal services and implications for a future-oriented USO

Universal service obligations (USO) in the postal sector currently enjoy considerable attention among politicians, practitioners and academics. The primary areas of interest have been the viability, costing and funding of the USO in a completely liberalized market. However, the purpose and the scope of the USO itself have so far not been questioned fundamentally. In this paper we first analyze the possible rationale for USO from an economic point of view. Then, we discuss the impact of converging postal and telecommunications markets on potential alternative means to provide USO in a more efficient way.Universal service, USO, covergence, postal sector

Impacts of the global economic crisis on cyprus tourism and policy responses

This study examines the impacts of the global economic crisis on Cyprus tourism and the pertinent policy responses. A qualitative approach was adopted by conducting eight semi-structured interviews with tourism authorities and suppliers/professionals. Findings indicated the main impacts of the crisis on Cypriot tourism: lack of competitiveness, decreased visitation/revenues, inadequate quality and escalated pricing. Furthermore, findings identify three types of policy measures: (i) immediate response measures; (ii) foreign investment in tourism; and (iii) diversification of the tourism product and quality improvement. The study highlights the need for Cyprus to develop a comprehensive tourism planning framework. It is suggested that crisis plans of small island states should be developed upon a holistic framework that leverages their destination capitals

The Debt Financing of Parenthood

Jacoby discusses the significant role of lenders in the parenthood market and how they might facilitate access and shape this industry in more profound ways. Second, she introduces the issue of financing assisted reproduction and adoption. Third, she reviews specialty loans for assisted reproduction and adoption, reflecting traditional research in case law and legal and nonlegal scholarly literature, as well as results from a review of news media and Web sites of prominent intermediaries and service suppliers. Lastly, she presents a sampling of political-economy implications relevant to assisted reproduction, leaving other issues for future investigation

The Political Economy of the Revenue Deficit

A widely accepted hypothesis is that concessions demanded by and granted to vested interests are responsible for the steady decline in the government financial position. We argue that it was rather the supply-side shocks of the seventies combined with the political objective of protecting the poor that were responsible. We support our argument by examining time series of disaggregated government budget data, and the theory of incentives under imperfect information. The latter suggests that price controls in the presence of cost shocks would lead to systematic incentives to lower quality and investment. And therefore lower tax capacity and the ability to reduce poverty in the future. We illustrate these mechanisms at work in power, telecommunications, railways, roads, education, and tax collection. The analysis is hopeful, however, because if this causal mechanism were understood, a concerted attempt to rationalise user charges and improve quality would be more acceptable. The process would be helped by macroeconomic policies that keep interest rates low and prevent exchange rate volatility, while supply side policies keep inflation low.cost shocks, user charges, public goods, quality, deficits

The long-term impact and value of curative therapy for HIV: a modelling analysis

INTRODUCTION: Curative therapies (CTx) to achieve durable remission of HIV disease without the need for antiretroviral therapy (ART) are currently being explored. Our objective was to model the long-term health and cost outcomes of HIV in various countries, the impact of future CTx on those outcomes and the country-specific value-based prices (VBPs) of CTx. METHODS: We developed a decision-analytic model to estimate the future health economic impacts of a hypothetical CTx for HIV in countries with pre-existing access to ART (CTx+ART), compared to ART alone. We modelled populations in seven low-and-middle-income countries and five high-income countries, accounting for localized ART and other HIV-related costs, and calibrating variables for HIV epidemiology and ART uptake to reproduce historical HIV outcomes before projecting future outcomes to year 2100. Health was quantified using disability-adjusted life-years (DALYs). Base case, pessimistic and optimistic scenarios were modelled for CTx+ART and ART alone. Based on long-term outcomes and each country's estimated health opportunity cost, we calculated the country-specific VBP of CTx. RESULTS: The introduction of a hypothetical CTx lowered HIV prevalence and prevented future infections over time, which increased life-years, reduced the number of individuals on ART, reduced AIDS-related deaths, and ultimately led to fewer DALYs versus ART-alone. Our base case estimates for the VBP of CTx ranged from $5400 (Kenya) up to$812,300 (United States). Within each country, the VBP was driven to be greater primarily by lower ART coverage, lower HIV incidence and prevalence, and higher CTx cure probability. The VBP estimates were found to be greater in countries where HIV prevalence was higher, ART coverage was lower and the health opportunity cost was greater. CONCLUSIONS: Our results quantify the VBP for future curative CTx that may apply in different countries and under different circumstances. With greater CTx cure probability, durability and scale up, CTx commands a higher VBP, while improvements in ART coverage may mitigate its value. Our framework can be utilized for estimating this cost given a wide range of scenarios related to the attributes of a given CTx as well as various parameters of the HIV epidemic within a given country

Performance-based financing as a health system reform : mapping the key dimensions for monitoring and evaluation

Peer reviewedPublisher PD

Aged care in Australia: part I – policy, demand and funding

As population ageing means more people will require care and support, this research brief looks at demand and funding of formal and informal care. Introduction For a proportion of people, a long life comes with chronic illnesses, disability, or physical or cognitive decline. Some of them will require different levels of intervention to get on with their daily life. Aged care (known outside Australia as long term care, elder care, or social care) is the set of institutions that offers care interventions for the elderly in absence of cure. Population ageing means more people will require care and support. Much of it will be provided informally by family, but increasingly it will take the shape of formal aged care. Policy stakeholders in many countries have taken notice. Those in Australia are no exception – a landmark review in 2011 by the Productivity Commission has led to what will be a decade-long set of reforms. And many stakeholders are participating in a public and private discourse about the evolution of the system (see part 1 in brief 2 for summary of groups). In this setting, it is crucial to encourage an informed debate about the building blocks of an effective care system. This is one of two briefs offering an accessible overview of aged care policy in Australia, combining a broad range of data and latest insights, and capturing the ongoing conversation between policy and academia, particularly relating to CEPAR research. This first top-down research brief introduces the policy setting and looks at demand and funding of formal and informal care. The second brief takes a bottom-up approach by considering practical issues relating to the industry, workforce, access and quality of care