  |
|
|
||||
|
||||
Why Has House Price Dispersion Gone Up?
Stijn Van Nieuwerburgh New York University; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR) Pierre-Olivier Weill University of California, Los Angeles; National Bureau of Economic Research (NBER) February 5, 2009 NYU Working Paper No. FIN-06-010 Abstract: We set up and solve a spatial, dynamic equilibrium model of the housing market based on two main assumptions: households with heterogenous abilities flow in and out metropolitan areas in response to local wage shocks, and the housing supply cannot adjust instantly because of regulatory constraints. In our equilibrium, house prices compensate for cross-sectional productivity differences. We increase productivity dispersion in the calibrated model in order to match the 30-year increase in cross-sectional wage dispersion that we document based on metropolitan-level data. We show that the model quantitatively matches the observed 30-year increase in dispersion of house prices across U.S. metropolitan areas. It is consistent with several other features of the cross-sectional distribution of house prices and wages. Working Paper Series Date posted: November 03, 2008 ; Last revised: February 25, 2009Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||
© 2010 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was served by apollo6 in 0.187 seconds.
One-Click Download
Facebook
Twitter
Digg
Del.icio.us
CiteULike
