Supply Elasticity and the Housing Cycle of the 2000s
University of British Columbia - Sauder School of Business
February 21, 2012
Real Estate Economics, Forthcoming
There is no evidence that differences in supply elasticity caused cross sectional variation among US housing markets in the severity of the 2000s housing cycle. This is true in three sets of empirical specifications: a first that assumes identical demand changes in the 2000s across markets, a second that proxies for supply elasticity and demand changes in the 2000s with estimates based on price and quantity changes in the 1980s, and a third that uses physical and regulatory constraints to proxy for supply elasticity and uses state fixed effects to capture variation in demand conditions.
Keywords: housing demand, housing supply and markets
JEL Classification: R21, R31Accepted Paper Series
Date posted: February 22, 2012
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo1 in 0.453 seconds