Publication Type
Encyclopaedia
Version
publishedVersion
Publication Date
1-2012
Abstract
The supply elasticity of housing determines how quickly house prices respond to economic shocks and this has many real economic consequences. Malpezzi and Maclennan (2001) describes its importance in housing market analysis: „most housing models, and most policy analysis hinge on explicit or implicit estimates of the price elasticity of supply of housing: does the market respond to demand side shocks with more supply or higher prices‟. However, as pointed out by Quigley (1979), there exist real analytical difficulties in modeling the supply of housing. Attempting to measure the flow of housing services provided by the stock of housing is conceptually pleasing but hard to attempt. Moreover, there is no standard housing unit and each unit can vary considerably on many quality dimensions.
Keywords
Empirical estimates, Estimation methods, Housing supply elasticity
Discipline
Economics | Public Economics | Real Estate
Research Areas
Applied Microeconomics
Publication
International Encyclopedia of Housing and Home
First Page
66
Last Page
74
ISBN
9780080471631
Identifier
10.1016/B978-0-08-047163-1.00181-8
Publisher
Elsevier
City or Country
Amsterdam
Citation
KIM, Kyunghwan; PHANG, Sock-Yong; and WACHTER, Susan.
Supply Elasticity of Housing. (2012). International Encyclopedia of Housing and Home. 66-74.
Available at: https://ink.library.smu.edu.sg/soe_research/1253
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/B978-0-08-047163-1.00181-8