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China’s housing prices fell faster in December

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© Reuters. FILE PHOTO: Apartment complexes in Beijing, China on December 16, 2017. Photo taken December 16, 2017. REUTERS/Jason Lee

BEIJING (Reuters) – China’s home prices fell at a faster pace in December, a private survey showed on Sunday, reflecting continued weak demand amid rising COVID-19 cases despite a series of support measures.

China’s real estate market crisis worsened this summer, with official data showing housing prices, sales and investment all fell in recent months, adding pressure to the ailing economy.

Home prices in 100 cities fell for the sixth consecutive month in December, falling 0.08% from the previous month after falling 0.06% in November, according to a survey by the China Index Academy (CIA), one of the country’s largest independent real estate firms. Research companies.

The survey showed that out of 100 cities, 68 recorded a decrease in monthly prices, compared to 57 cities in November.

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China has in recent weeks ramped up its support for the industry in a bid to ease a long-running liquidity pressure that has hurt developers and delayed completion of many housing projects, further undermining buyers’ confidence. The moves included lifting a ban on raising funds through stock offerings for listed real estate companies.

The real estate sector also got a slight boost after Beijing abruptly abandoned its strict anti-coronavirus policy in early December, which could lure consumers back into showrooms. But the virus is now spreading largely unchecked and potentially infecting millions of people daily, according to some international health experts.

“Real estate policies may continue to maintain an accommodative tone with room for policy easing on the supply and demand side in 2023,” the real estate research firm said, adding, “The housing market is expected to gradually stabilize next year.”

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Economic

Does Angie recommend the professional license?

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Peter Blair and Mischa Fisher have it Smart new paper On Professional Licensing that uses data on millions of potential customers generated by Angi’s HomeAdivsor. HomeAdvisor consumers search for services, the platform knows if a service requires a license in a consumer’s case and tries to match the consumer with a suitable local provider, the local provider can then choose to accept or decline the lead. If a lead is accepted, the consumer and provider then negotiate the price and services—since negotiation is mostly handled offline, the main measure of benefit is the likelihood of the lead being accepted.

Many professions are licensed in one state but not in another (as I noted in My talk about professional licensing For a Heritage Foundation, that’s odd if you think there are strong arguments for professional licensing on safety or quality grounds). Thus, the authors compare the acceptable lead rate in states that require a license to complete a task with the rate in states where the same task is unlicensed. To better control for other factors, the authors compare only the acceptable lead rate in bordering counties of different states, as described below. Authors also control fixed effects for status, month, and task.

The bottom line is that the acceptable lead rate is 12.3 percentage points or 21% lower in a county/state that licenses an occupation/task compared to a similar county/state where the job is unlicensed. In other words, if you live in a state that requires a license to complete a task, it will be more difficult to find a contractor than if you live in a nearby state that does not license the task.

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Not surprisingly, the authors find that the acceptance rate decreases not because demand for the licensed service increases but because supply decreases when there are fewer licensed service providers. In the long run, we also know that prices go up in licensed industries (for example, my newspaper with Pizzola Licensing in the funeral services industry).

The authors combine their cross-sectional study with an event study showing that after New Jersey requires a license for pool contractors It is becoming difficult to find a pool contractor in a relative of New Jersey to other countries.

The authors concluded:

The current literature on licensing on digital platforms, which consists of three other papers, carefully measured the effect of licensing on consumer satisfaction and safety by demonstrating that customer subjective reports of service quality and objective platform actions for service provider safety do not increase in the presence of licensed service providers, despite the effect Positive licensing on prices (Hall et al., 2019; Farronato et al., 2020; Deyo, 2022).

… Taken together, our findings and those from three other papers examining licensing in digital labor markets indicate that the traditional view of licensing espoused by Friedman (1962)
About licensing in offline markets, for example, licensing is a restriction of the labor market with limited benefits, and it is also held in digital labor markets (Hall et al., 2019; Farronato et al., 2020; Deyo, 2019).
2022). Our work provides a clear example where labor market regulations developed to control the corresponding economy work against the efficiency gains that technological innovation promises to realize the digital economy (Goldfarb et al., 2015).

the post Does Angie recommend the professional license? Debuted marginal revolution.

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Indonesia Eyes $11 Billion in Capital Market Fundraising This Year By Reuters

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© Reuters. FILE PHOTO: A teller counts Indonesian rupiah banknotes at a teller in Jakarta, Indonesia, October 14, 2022. REUTERS/Willi Kurniawan

JAKARTA (Reuters) – Indonesia aims to raise capital market funds of 170 trillion rupiah ($10.92 billion) for this year, including from initial public offerings and debt instruments, far less than the amount sought, the country’s financial watchdog said on Monday. Collected in 2022.

About 260 trillion rupees were raised through the capital market last year, including the initial public offering of big tech company PT GoTo Gojek Tokopedia, which raised $1.1 billion in April.

Inarno Djagadi, head of capital market supervision at the Financial Services Authority, said 84 offers are in the pipeline with an estimated total value of 81.41 trillion rupees ($5.23 billion).

About 54.5 trillion rupees of that will be from 58 potential IPOs.

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Among the companies expected to go public in 2023 are two units of the state energy company Pertamina, Pertamina Geothermal Energy and Pertamina Hulu Energi.

People familiar with the matter told Reuters in December that Pertamina Hollow Energy could raise as much as $2 billion.

State-Owned Enterprises Minister Eric Thuhir said at a separate event on Monday that Palm Oil Palm Growers, a unit of state plantation company PTPN III, may launch an IPO as early as this year.

($1 = 15,570,0000 rupees)

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Resilient Germany overcomes energy crisis

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The author is the German Finance Minister

Once again, German industry and society proved more resilient and adaptable than some people had feared. Horror scenarios of dangerous energy rationing or a massive recession in our economy are often played out. But we’re not even close to that. With a challenging year just behind us, this is good news – not just for Germany, but for Europe as well.

companies and families He reacts quickly to sharp increases in energy prices. They installed more efficient production or heating facilities, and turned to imported substitutes and intermediates. The results are encouraging: German households and businesses have significantly reduced their gas consumption, despite the recent cold weather. From the start of the war in Ukraine until mid-December, industrial gas consumption in Germany (temperature-adjusted) was about 20 percent lower than the average level for the previous three years. even if some companies reduced production, especially in energy-intensive sectors, industrial output as a whole has fallen by only 1 percent since the beginning of 2022. In addition, in survey Released by the Ifo Institute in November, more than a third of German companies saw the possibility of further reducing gas consumption without jeopardizing production.

Rather than imposing excessive laws and regulations, we relied on price signals and the wisdom of market participants to create the right incentives and reduce gas consumption.

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We will take this approach in the coming months, when energy savings will still matter. Our latest relief measures will not distort price signals. To this end, the The Bundestag agreed The brakes on gas and electricity prices are in their last session in 2022. They are designed to operate without any interference with markets or prices. This system will pay a fixed amount for previous years’ depreciation and the current difference for a reference rate – regardless of current depreciation.

Energy price brakes are the main component of the German “protective shield”. Up to 200 billion euros available For measures in the period from 2022 to 2024. Given the size of the German economy, its high dependence in the past on Russian energy imports and the fact that the measures will end in 2024, these are balanced and fast mechanisms. Unlike the tools used in other countries, our new arrangements will not affect the process of price formation driven by supply and demand, or the incentives to save gas. Firms and households will continue to save at full market price when they reduce consumption by a unit of gas or electricity. In this way, price brakes also avoid creating additional demand for gas at the expense of consumers in other European countries. You don’t have to be afraid of distorting the competition or buying gas. In fact, A recent working paper from the International Monetary Fund On mitigating the impact of higher energy prices on households, he openly praises the German energy price brake.

Current developments confirm the effectiveness of a market-based approach – and show that we must also rely on price signals when it comes to reducing CO2 emissions. Last year, households and businesses only had a few weeks to adjust, but we’ve already seen a strong response. The effect of carbon dioxide prices can be stronger, as adjustment is possible over a much longer period and they additionally influence long-term expectations and decisions. Regulatory interventions and support schemes, even if well targeted, cannot compete with market coordination and incentives that support individual decision-making and foster innovation.

Europe and Germany can get through this crisis without collapsing industrial production. We also have the opportunity to efficiently deal with the transition to climate neutrality. Either way, we must trust price signals as well as the ability of individuals and companies to innovate and adapt.

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