Essays on Housing and Land Economics.

Macroeconomics;Public Finance;Housing Economics;Land Economics;Urban Economics;Economics;Business;Economics

Ehrlich, Gabriel M.Albouy, David Yves ;

University of Michigan

关键词: Macroeconomics;    Public Finance;    Housing Economics;    Land Economics;    Urban Economics;    Economics;    Business;    Economics;   

Others  :  https://deepblue.lib.umich.edu/bitstream/handle/2027.42/93986/gehrlich_1.pdf?sequence=1&isAllowed=y

瑞士|英语

来源: The Illinois Digital Environment for Access to Learning and Scholarship

【 摘 要 】

This dissertation comprises three chapters examining the economics of the housing and land markets. In ;;A Model of Sales, Prices, and Liquidity in the Housing Market,” I use a search and matching model of the housing market to address three main questions. First, what model of search and price determination best describesthe housing market? Second, can a general equilibrium model generate the observedcorrelations between housing market variables? Third, what shocks have driven thehistorical behavior of the housing market? A model of competitive search is more likely than a model featuring random search and bargaining. Simulated data from the model qualitatively matches the correlations between housing market time series. Finally, the recent housing boom and bust were associated with an increase andsubsequent decrease in the pool of eligible buyers, in addition to unrealized expectationsof higher future productivity, the estimated size of which suggests a role for unwarranted optimism on the part of housing market participants.In ;;Metropolitan Land Values and Housing Productivity,” David Albouy and I present the first nationwide index of directly-measured land values and investigate their relationship with housing prices. Construction prices and geographic and regulatory constraints increase the cost of housing relative to land. On average, one-third of housing costs are due to land, and the elasticity of substitution between land andother inputs is one-half. Conditional on input prices, housing productivity is low in larger cities. The increase in housing costs associated with greater regulation appears to outweigh any benefits from improved quality-of-life.In ;;Price and Time to Sale Dynamics in the Housing Market: the Role of IncompleteInformation,” I propose a model of the house-selling process in which sellers possess incomplete information regarding the state of the market. This model generates a negative correlation between house prices and time on market, a result that can persist even when realtors possess complete information. I construct an empirical measure of homeowner misperceptions regarding the state of the housing market, and show that sales volumes are negatively correlated with an increase in homeowners’ perceptions of house prices relative to actual market conditions.