Hrvatsko društvo ekonomista

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July 2007. ::: Vol.58 No.07-08

Petar Filipić

INTRODUCTION TO THE MACROECONOMICS OF THE HOUSEHOLD SECTOR Izvorni znanstveni članak The aim of this paper is the analysis of macroeconomic implications of microeconomic level decision making in the household sector. In the paper we show that while owning a flat or a house is perceived as the main goal for an individual, for the society this is a road to lower effi ciency of the production factors. Our further investigation finds that (a) the economies with high proportion of owner-occupied housing, experience lower growth rates; (b) the economies with high percentage of renting activity in the household sector have a more mobile labour force; (c) negative externalities increase with the higher percentage of owner-occupied housing; (d) labour force mobility decreases with the higher stamp duty; (e) the demand for flats/houses becomes more a function of the exchange value than use value with the higher proportion of owner-occupied housing in the economy. In the fi nal comments we argue that even in this segment of the Croatian social life the politics (narrowly implied) have been found to dominate over the economic policy. What may, to some extent, serve as a consolation in this situation is the finding that in other countries, especially in Europe, the situation in the housing sector is similar and that there too the prices of flats and houses are quite prone to speculation. owner-occupied housing; renting; externalities; stamp duty; expectations Puni tekst (Hrvatski) Str. 393 - 420 (pdf, 290.07 KB)

INTRODUCTION TO THE MACROECONOMICS OF THE HOUSEHOLD SECTOR

Izvorni znanstveni članak

The aim of this paper is the analysis of macroeconomic implications of microeconomic level decision making in the household sector. In the paper we show that while owning a flat or a house is perceived as the main goal for an individual, for the society this is a road to lower effi ciency of the production factors. Our further investigation finds that (a) the economies with high proportion of owner-occupied housing, experience lower growth rates; (b) the economies with high percentage of renting activity in the household sector have a more mobile labour force; (c) negative externalities increase with the higher percentage of owner-occupied housing; (d) labour force mobility decreases with the higher stamp duty; (e) the demand for flats/houses becomes more a function of the exchange value than use value with the higher proportion of owner-occupied housing in the economy. In the fi nal comments we argue that even in this segment of the Croatian social life the politics (narrowly implied) have been found to dominate over the economic policy. What may, to some extent, serve as a consolation in this situation is the finding that in other countries, especially in Europe, the situation in the housing sector is similar and that there too the prices of flats and houses are quite prone to speculation.

owner-occupied housing; renting; externalities; stamp duty; expectations

Puni tekst (Hrvatski) Str. 393 - 420 (pdf, 290.07 KB)