What is housing affordability? The case for the residual income approach

This article seeks to increase the awareness of and support for the residual income approach to housing affordability indicators and standards, especially in the United States. It begins with an overview of various semantic, substantive, and definitional issues relating to the notion of affordability, leading to an argument supporting the conceptual soundness of the residual income approach. The concept is then briefly set into the historical context of U.S. and British debates on affordability measures. This description is followed by a discussion of two of the principal issues involved in crafting an operational residual income standard: the selection of a normative standard for non-housing items and the treatment of taxes. The article concludes by considering some of the potential implications of the residual income paradigm for the analysis of housing problems and needs, for housing subsidy policy, and for mortgage underwriting practice

Cultural Authenticity and Regional Development

Abstract This paper examines the concept of "cultural authenticity" and explores its application in regional development and planning. It describes why cultural authenticity is important for a city or region. Cultural authenticity provides a competitive advantage to a region for attracting tourists and residents, it promotes economic and social equity, and it strengthens the sustainability of a region. The paper describes four examples of regional efforts in the U.S. to preserve cultural authenticity. Finally, the paper identifies several problems that arise in the application of cultural authenticity to regional development plans. The paper warns against patronizing attitudes, stereotyping, and illegal discrimination in the application of the concept of cultural authenticity to regional development and planning. The paper also warns that preserving cultural authenticity should not operate as a force against progress and modernity

The production of functionality by the elderly: a household production function approach

This paper extends Becker's model of the household production function of human capital to the production of elderly functionality. In this model, elderly functionality is produced with the direct inputs of assistive devices, personal assistance, and nutritional intake. Education, endowment variables (like genetic endowment and sex) and health conditions (like stroke) determine the production function environment. Data from the Survey of Asset and Health Dynamics Among the Oldest-Old (AHEAD) are used to estimate a production function of bathing functionality, using a two-stage estimation procedure. In the first stage, input demands for the endogenous functionality inputs are estimated, recognizing health heterogeneity. The results suggest that reverses in functionality caused by age and health conditions can be partially compensated for by the use of assistive devices (like grab bars and bathing equipment), secure nutritional intake, and moderate alcohol consumption. However, non-inputs like chronic health conditions, age, sex and genetic endowment exert a strong influence on the level of functionality.