The long-run elasticity of new housing supply in the United States: Empirical evidence for 1950 to 1994

被引:64
作者
Blackley, DM [1 ]
机构
[1] Le Moyne Coll, Dept Econ, Syracuse, NY 13214 USA
关键词
US housing supply; residential construction;
D O I
10.1023/A:1007781228328
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
The long-run price elasticity for alternative specifications of new housing supply is estimated using U.S. annual data for 1950 through 1994. The basic model expresses residential construction as a linear function of new housing price and the prices of construction inputs. Long-run elasticities range from 1.6 to 3.7, suggesting that new housing supply is price elastic. Residential construction responds to both the real interest and expected inflation rates, but other construction cost variables perform poorly. However, the results are sensitive to the time-series processes underlying the variables. A modified model that expresses residential construction as a function of changes in input prices, rather than their levels, produces a long-run elasticity of about 0.8 and a significant inverse relationship between new housing supply and the construction wage rate.
引用
收藏
页码:25 / 42
页数:18
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