Publication Type

Encyclopaedia

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

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://dx.doi.org/10.1016/B978-0-08-047163-1.00181-8

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