Sock-Yong Phang

Strategic development of airport and rail infrastructure: the case of Singapore

This article recounts how a number of strategic infrastructure investment decisions in airport and rail development taken by the Singapore government were at variance with recommendations emerging from cost-benefit analysis, but were considered necessary to support external competitiveness. This link between infrastructure provision and economic development may require decision makers to assess the trade-off between prudent macro-economic planning and efficient micro-economic management for major projects. In the case of airport hubs, the most difficult assessment might be the game consideration of how much, and how far ahead, excess capacity is needed to ensure the dominance of the hub.

Housing Policy, Wealth Formation and the Singapore Economy

This paper evaluates the contribution of housing policy in Singapore to financial sector development, housing wealth formation and macro-economic performance, both retrospectively and prospectively. It provides an overview of past housing policies and traces the linkages to the financial sector. Housing policy as effected through the Housing and Development Board and the Central Provident Fund (CPF) hampered the development of the commercial housing loans sector and domestic financial markets, but contributed to the overall growth and stability of the housing loans market and associated financial institutions. Housing policy and the trend of housing asset inflation contributed significantly to the formation of both gross and net housing wealth. Economic growth has not suffered from the heavy emphasis on housing investment although various policies that resulted in exogenous shifts in housing demand contributed to increased housing price volatility in the short term. The structure of the housing loans market has also allowed the CPF contribution rate to be more effectively used as an instrument for macro-economic stabilisation.

Government Policies and Private Housing Prices in Singapore

Regression models are used to show that interest rates, income growth rates and the supply of housing have not played a statistically significant role in the determination of private housing prices in Singapore between 1975 and 1994. Instead, private housing prices in Singapore were highly correlated with the prices for public-sector-built housing. Moreover, the timing of government policies relating to the use of compulsory savings for private housing finance purposes, the liberalisation of rules on public housing ownership criterion as well as for housing finance had a significant impact on private housing prices.

The multiplier effect: Singapore's hospitality industry

Abstract Singapores relatively high tourism multiplier makes tourism an invaluable part of that countrys economy.

The Multiplier Effect

Tourist spending can have successive and magnified effects on the host countrys economy in three ways. First, tourist spending creates direct revenues, called the direct-multiplier effect. Second, the recipients of direct expenditures spend that money to purchase necessary goods, for an indirect-multiplier effect. Third, the beneficiaries of the direct and indirect spending in turn spend that revenue on unrelated goods and services, thus creating an induced-multiplier effect. Given the increasingly higher tourism multipliers, tourisms contribution to Singapores economy has increased over time. Tourism contributed 11.9 percent to Singapores GDP in 1992, about half of that from direct revenues. Indirect and induced sources contributed about equally to the other half. While the direct effects of tourist expenditures on the Singapore economy are predominant, the indirect and induced effects are also significant, indicating strong sectorial linkages within the local economy, especially with respect to the hospitality industry.

Affordable Homeownership Policy: Implications for Housing Markets

Affordable homeownership is a policy that is often accorded a great deal of policy attention by governments of many countries. In this paper, we examine the market implications of setting a housing price to income ratio target for a market segment by the government. The policy requires active intervention by the government with regard to the targeted sector. We use a simple model of the housing market with a homeownership affordability target to derive the market implications of such targets. In the presence of uncertainty and resource constraints, the objective of homeownership affordability is achieved for the targeted group at the expense of greater volatility in residential construction activity. When the size of the targeted sector is significant in size, there are spillover price and crowding out effects on the non-targeted housing market segment. This results in political pressure on the government to expand homeownership affordability targets to increasing segments of the population. Housing price to income ratios tend to be fairly constant over time and across targeted groups, the housing supply is relatively price inelastic and the income elasticity of housing demand is less than one. The Singapore government intervenes extensively in the housing sector to ensure homeownership affordability, with a resulting homeownership rate of 91 percent for the resident population. The above hypotheses regarding the implications of setting housing price to income ratio targets are tested using the Singapore housing market. The experience and data for Singapore were found to support the above hypotheses.

Supply Elasticity of Housing

There exist real analytical difficulties in modelling the supply of housing due to its heterogeneity, durability, as well as the conversion of existing housing stock. The estimation methods used in the studies of the determinants of housing supply may be categorised into the following approaches: reduced form estimation, structural approaches, and error correction models. The various approaches to estimate supply elasticity give rise to a wide range of elasticity estimates. Estimates for the same city and for the same period can vary depending on the estimation method and data used. Empirical estimates of US housing supply elasticity also indicate significant geographical variations. Outside of the United States, the empirical literature on housing supply is small but growing rapidly. Studies show the United Kingdom to have less elastic supply as compared to the United States. Malaysia and Korea have inelastic supply curves for housing, while Thailand and the United States have elastic supply. Housing supply elasticity is dependent on a number of factors: the availability of land for new housing construction, planning systems, structure construction costs, government land regulations, and the degree of government intervention in housing markets on the supply side. Since the housing supply elasticity determines the level of house price and its variability when faced with a demand shock, the large impacts of speculation in real estate and housing bubbles are more likely where supply is inelastic. Housing supply elasticity also has implications for regional productivity and employment growth, as well as the distribution of income across and within cities.

Singapore'S Housing Policies: Responding To The Challenges Of Economic Transitions

Singapore has developed its own unique state-driven housing system, with more than three quarters of its housing stock built by the Housing and Development Board and homeownership financed through Central Provident Fund savings. As a result, it has one of the highest homeownership rates amongst market economies. This paper provides a historical perspective of the main housing problems faced by successive prime ministers and their respective policy responses. Under the leadership of Prime Minister Lee Kuan Yew (1959–1990), the government established an integrated land-housing supply and housing finance framework to channel much needed resources into the housing sector to deal with a chronic housing shortage. Under Prime Minister Goh Chok Tong (1990–2004), asset enhancement schemes to renew aging estates as well as market deregulation measures were implemented. Prime Minister Lee Hsien Loong (2004–present) has been confronted with a different set of challenges — investment demand for housing, rising inequalities and rapidly aging population. These problems have brought about the introduction of carefully crafted macroprudential policies, targeted housing grants to assist low and middle income households, and schemes to help elderly households monetize their housing equity.

Environmental Taxation in Practice

Contents: Series preface Introduction. Part I Overview and Comparison of Different Taxes: Environmental taxes in Europe, Thomas Sterner and Gunnar KA hlin Environmental taxes in developing and transition economies, Randall A. Bluffstone. Part II Institutional Aspects and Political Economy of Implementation: Political economy obstacles to fuel taxation, Henrik Hammar, A...sa LA fgren and Thomas Sterner The Btu tax experience: what happened and why it happened, Dawn Erlandson Comparative politics and environmental taxation, Per G. Fredriksson and Daniel L. Millimet Enforcement of environmental charges: some economic aspects and evidence from the German waste water charge, Erik Gawel Inspections, pollution prices, and environmental performance: evidence from China, Susmita Dasgupta, Benoit Laplante, Nlandu Mamingi and Hua Wang The distributional implications of higher energy prices for the UK, Michael Common Public support for pollution fee policies for motor vehicles with revenue recycling: survey results, Alan Krupnik, Winston Harrington and Anna Alberini Distributional effects of alternative vehicle pollution control policies, Sarah E. West Cost-effectiveness of air pollution abatement in Poland, Tomasz Zylicz Environmental policy in transition economies: will pollution charges work?, Patrik SA derholm. Part III Ex-ante Analysis: A presumptive pigovian tax: complementing regulation to mimic an emissions fee, Gunnar S. Eskeland A deposit-refund system applied to non-point nitrogen emissions from agriculture, Lars GA[yen]rn Hansen UKs climate change levy: cost effectiveness, competitiveness and environmental impacts, Ardash Varma The environmental consequences of tax differentiation by vehicle age in Costa Rica, Nick Johnstone, Jaime EcheverrA--a, Ina Porres and Ronald MejA--as The scope for fuel substitution in manufacturing industries: a case study of Chile and Colombia, Diana L. Moss and James R. Tybout Estimates from a consumer demand system: implications for the incidence of environmental taxes, Sarah E. West and Roberton C. Williams III An econometric evaluation of sulphur taxes, James M. Griffin Impact analysis of car-related taxes on fuel consumption in Japan, Masayoshi Tanishita, Shigeru Kashima and William J. Hayes The cost effectiveness of alternative instruments for environmental protection in a second-best setting, Lawrence H. Goulder, Ian W.H. Parry, Roberton C. Williams III and Dallas Burtraw.Part IV Ex-post Analysis: Motor vehicle taxes as an environmental management instrument: the case of Singapore, Ngee-Choon Chia and Sock-Yong Phang Equilibrium, pollution and economic development in China, Hua Wang and David Wheeler Household responses to pricing garbage by the bag, Don Fullerton and Thomas C. Kinnaman Garbage and recycling with endogenous local policy, Thomas C. Kinnaman and Don Fullerton State taxes and interstate hazardous waste shipments, Arik Levinson The phase-out of leaded gasoline in the EU: a successful failure?, A...sa LA fren and Henrik Hammar Greenhouse gas emissions in Norway: do carbon taxes work?, Annegrete Bruvoll and Bodil Merethe Laesen Name index.

Motor vehicle taxes as an environmental management instrument: the case of Singapore

Being geographically small, land scarcity poses a potential constraint for economic growth in Singapore. Restraining car ownership and car use through motor vehicle taxes is part of the land-transport policy to ensure smoother traffic flow. This paper analyses the use of motor vehicle taxes in Singapore as an environmental management instrument. It evaluates the effectiveness of ownership and use taxes as instruments to internalise congestion and environment externality. Economic issues relating to the use of such taxes are also highlighted. It concludes that motor vehicle taxes offer Singapore a double dividend.