Housing Prices in Australia Research Paper Example | Topics and Well Written Essays - 2500 words

Housing Prices in Australia - Research Paper Example The headline says: "Government policies, charges 'stifling' housing growth." The report says that "the Property Council of Australia is warning of a looming housing shortfall as prices and taxes increase." The surge in median house prices in the last seven years has shut many people out of the market, ABC News quoted the Council as saying. The report however is on Western Australia and not on the whole of Australia, but still there has to be concern to avoid a possible downturn. From a stable property market, there is a trend of slowing down due to circumstances or causes that are the primary focus of this study. However, the situation may not be serious. The causes will be enumerated in the literature review. Property market in Australia is a major source of wealth creation for investors, contributing to the socio-economic well being of all Australians. The Real Estate Institute of Australia states that in the financial year 2005/2006, property sales totaled $186.1 billion. The Institute further said that 67% of Australians owned their houses and 28% rented on the private market. Property affects everybody in Australia. Those who are renting their houses and those who own their houses are a subject of surveys by the prominent institutions in Australia and even from outside Australia. Over the pa The Real Estate Institute of Australia follows and conducts studies and trends in the real estate business in Australia. It is the national professional association for the real estate industry. Over the past years, right after the 1991-1992 economic recession, there has been a stable residential property market in Australia. But there is a growing defect that the Property Council of Australia has warned in its latest press release. This pertains to the higher taxes imposed by the government. 3.0 Purpose and Objectives This study will examine the underlying growth on the property market of Australia and the impact of the higher taxes. Surveys conducted by prestigious organizations like Standard and Poor's and Real Estate Institute of Australia and other similar organizations that have stakes in the property market have revealed a steady growth. This was recorded over the past 35 years by Standard & Poor's and the years preceding the 1991-1992 economic crisis. We will also study the present policies of government over real estate and their imposition of charges and taxes, whether these taxes or fees are bearable by the general public. The people who are at stake here are those who own or rent their houses. Following are the questions to be answered in the study: 1. Is the stable growth registered by the property

Applied economics Essay Example | Topics and Well Written Essays - 1000 words

Applied economics - Essay Example ucted to establish the functions of human capital earnings and its impacts on the decomposition of the periodic earnings into linear function forms, in which the log of earnings serve as both the function of schooling measure in terms of years of experience in work and other factors representing heterogeneity within a cross-section sample of people observed, and dependent variables. This simple statistical model has however been faced by some limitations, i.e., biasness in the estimation of returns to education and endogeneity in the schooling variables. As a positively correlated function of the unobserved variable of ability, people with varied ability to work and learn are in most instances a better position to school for longer periods; hence this enhanced ability will have a reflection of higher wages within their occupations. Additionally, existence of a symmetric correlation between any of the independent variables such as schooling and the error term in an OLS regression can consequently lead to bias in the estimates. In this case, effects of ability/heterogeneity have to be random in the sample to avoid positive correlations. Card (1999) explored the causal relationship of education on earnings, and explicitly the study analysed the heterogeneity between schooling of twins in contrast to their earnings. The assumption in the study was that twins would have the same ability and other external influences so that differences in wages could be more accurately associated with differences in education. Card used the pooled sample of men and women standing up to 198,075 aged from 16 – 66 during the years 1994 to 1996. In this given time frame, the study targeted the differences between individuals having 10, 12 and 16 years of schooling to their returns. An OLS regression analysis was used to inspect the human capital earning with variety of hourly, weekly and annual earnings. The study findings explored an interesting impact of an instrumental factor family