Papers by Augusto B. Agosto
Real estate and stocks are two significant asset class in an investor's portfolio. In order to sh... more Real estate and stocks are two significant asset class in an investor's portfolio. In order to shed light on how to optimize a portfolio and achieve asset diversification, the purpose of this study is to explore the link between these two markets. The study results show that the two markets are regarded as highly integrated using cointegration and vector error correction modeling methodologies, as well as data from the stock and real estate markets from 2000Q2 to 2022Q1. They suggest that while real estate and stock markets are good alternatives for investment allocation, investors cannot gain the benefits of diversity by building a portfolio that includes both the real estate and stock markets in the Philippines. Furthermore, the positive effects of stock prices on real estate corroborate the wealth effect hypothesis, which states that stock market contribute positively to the rise in real estate market. This suggests that house prices are rather high, and real estate is used considerably more as an investment vehicle.
Ledger Economics / Natural vs Built Capital
he paper “Estimates of Monetary Values of Ecosystem Services” examines how the economic value of ... more he paper “Estimates of Monetary Values of Ecosystem Services” examines how the economic value of ecosystem services can be quantified in monetary terms to support environmental accounting and policy analysis. The study compiles and analyzes existing valuation studies to estimate the monetary benefits provided by ecosystems—such as food production, water regulation, carbon sequestration, and recreational services—and expresses these values in comparable units (e.g., monetary value per hectare per year). Using these estimates, the authors develop Ecosystem Service Yield Factors (ES-YFs), which measure the relative productivity or value of ecosystem services across different countries and ecosystems. These factors enable comparisons of ecological contributions to economic welfare and can be used in natural capital accounting, land-use planning, and sustainability assessments.
This paper gives an overview of the value of ecosystem services of 10 main biomes expressed in mo... more This paper gives an overview of the value of ecosystem services of 10 main biomes expressed in monetary units. In total, over 320 publications were screened covering over 300 case study locations. Approximately 1350 value estimates were coded and stored in a searchable Ecosystem Service Value Database (ESVD). A selection of 665 value estimates was used for the analysis. Acknowledging the uncertainties and contextual nature of any valuation, the analysis shows that the total value of ecosystem services is considerable and ranges between 490 int$/year for the total bundle of ecosystem services that can potentially be provided by an 'average' hectare of open oceans to almost 350,000 int$/year for the potential services of an 'average' hectare of coral reefs. More importantly, our results show that most of this value is outside the market and best considered as non-tradable public benefits. The continued over-exploitation of ecosystems thus comes at the expense of the livelihood of the poor and future generations. Given that many of the positive externalities of ecosystems are lost or strongly reduced after land use conversion better accounting for the public goods and services provided by ecosystems is crucial to improve decision making and institutions for biodiversity conservation and sustainable ecosystem management.
The global scientific community, as consolidated in the reports of the Intergovernmental Panel on... more The global scientific community, as consolidated in the reports of the Intergovernmental Panel on Climate Change (IPCC), has reached an unequivocal consensus that the Earth's climate is warming at an unprecedented rate due to human activities. According to the IPCC's Sixth Assessment Report (AR6) , global temperatures are set to rise by more than 1.5°C unless there are immediate and large-scale reductions in greenhouse gas (GHG) emissions. For the Philippines, an archipelago nation located in the Western Pacific, this is not a distant threat but a present reality.
Zenodo (CERN European Organization for Nuclear Research), Aug 19, 2022
Addressing the cause of escalating housing prices in the time of the COVID-19 pandemic is relevan... more Addressing the cause of escalating housing prices in the time of the COVID-19 pandemic is relevant but timely. Housing is both a consumption and an investment good and for many Filipinos, it is a dream worth going abroad for. This thesis studies the housing prices in the Philippines between 2000 to 2020. The overall objective of this thesis is to answer whether important macroeconomic factors can explain these housing prices. Using an econometric model, the Engel-Granger two-step approach captures the dynamic of long-and short-run relationships of the variables. The co-integration test result shows that GDP per capita is positively associated with housing prices by 1.24% in the long term, the inflation rate by 0.08%, and unemployment rate by 0.398%. Furthermore, the error correction model results show that GDP per capita negatively affects the housing price by 0.075% while the interest rate negatively affects it by 0.01497%. Error correction model result shows that short-term and long-term deviation in the previous level can be adjusted by 11% in the subsequent nine periods. Among the variables that affect housing prices, the GDP per capita has the most significant effect size. This thesis seeks to offer its findings that strongly suggest that policy makers need to pay close attention to the effect of the GDP per capita on housing prices and thus provide policies that adopt in various time horizons.
Zenodo (CERN European Organization for Nuclear Research), Aug 24, 2022
Land is a key asset in wealth creation. It is one of the three sources or factors of production. ... more Land is a key asset in wealth creation. It is one of the three sources or factors of production. Since 2008, Cebu City have experienced continued real estate boom and urban growth. Growth begets a myriad of problems such as traffic congestion, housing backlog and unemployment. Land values are possibly the most fundamental factor in urban development planning. Understanding the determinants of land value is a basic requirement in policy making and in addressing the problems. This study will examine the 31 determinants of land value such as accessibility to transportation, neighborhood, distance to city center, neighborhood and others. The data set used were a result of a survey conducted with 52 real estate practitioners, valuers, assessors randomly selected and uses a 5 likert scale questionaires as a tool In analysing the data set, the research uses factor analysis, principal component analysis and multiple regression with SPSS. In arriving at the ranking of the factors in land values, the study assigned as dependent variable land value data obtained from the Bureau of Internal Revenue (BIR) zonal valuation.Based on the analysis made in this research, the priority and ranking can be categorized into mobility (accessibility to public transportation), livability (open space and parks, neighborhood, recreational facilities, environmental quality), economic (accessibility to employment, rental income), government regulation and taxation (zoning and government assessment and charges), and ownership. Findings of this research could be helpful in urban planning policy and decision-making processes. In particular urban planners, investors, land owners, brokers, valuers could use this model to evaluate the current situation and helps in determining residential land prices.
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Papers by Augusto B. Agosto