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Recent Developments in the Economics of Housing
This collection compiles the most significant and contemporary literary contributions to the field of the economics of housing. Volume one includes articles that cover the housing markets demand and supply whilst considering these factors interactions on real estate valuations, home ownership and wealth decisions. Volume two focuses on the interfaces that occur from the dynamics of neighbourhoods and housing prices. It delves into how housing markets and their modeling have attracted particular policy interest, such as rent control, and concludes with thorough recent analyses of housing markets through a lens that emphasizes the importance of frictions, namely the Diamond-Mortensen-Pissarides (DMP) model. Tied together by an original introduction by the editor, this collection promises to be an informative read to scholars and academics immersed in this fascinating topic.
More Information
Contributors
Contents
More Information
This collection compiles the significant and contemporary literary contributions to the field of the economics of housing. Volume one includes articles that cover the housing markets demand and supply whilst considering these factors interactions on real estate valuations, home ownership and wealth decisions. Volume two focuses on the interfaces that occur from the dynamics of neighbourhoods and housing prices. It delves into how housing markets and their modeling have attracted particular policy interest, such as rent control, and concludes with thorough recent analyses of housing markets through a lens that emphasizes the importance of frictions, namely the Diamond-Mortensen-Pissarides (DMP) model. Tied together by an original introduction by the editor, this collection promises to be an informative read to scholars and academics immersed in this fascinating topic.
Contributors
43 articles, dating from 1969 to 2018
Contributors include: M.A. Davis, J. Geanakoplos, E. Glaeser, Y.M. Ioannides, P.A. Pathak, M. Piazzesi, E. Rossi-Hansberg, T.C. Schelling, R.J. Shiller, H. Sieg
Contributors include: M.A. Davis, J. Geanakoplos, E. Glaeser, Y.M. Ioannides, P.A. Pathak, M. Piazzesi, E. Rossi-Hansberg, T.C. Schelling, R.J. Shiller, H. Sieg
Contents
Contents:
Acknowledgements
Introduction Yannis M. Iaonnides
PART I HOUSING DEMAND, NEIGBHBORHOOD INTERACTIONS AND NEIGHBORHOOD CHOICE
1. Richard Dusansky and Paul W.Wilson (1993), ‘The Demand for Housing: Theoretical Considerations’, Journal of Economic Theory, 61 (1), October, 120–38
2. Yannis M. Ioannides and Jeffrey E. Zabel (2008), ‘Interactions, Neighborhood Selection and Housing Demand’, Journal of Urban Economics, 63 (1), January, 229–52
3. Edward L. Glaeser, Matthew E. Kahn and Jordan Rappaport (2008), ‘Why do the Poor Live in Cities? The Role of Public Transportation’, Journal of Urban Economics, 63 (1), January, 1–24
4. Patrick Bayer, Robert McMillan, Alvin Murphy and Christopher Timmins (2016), ‘A Dynamic Model of Demand for Houses and Neighbourhoods’, Econometrica, 84 (3), May, 893–942
5. Sanghoon Lee and Jeffrey Lin (2018), ‘Natural Amenities, Neighbourhood Dynamic, and Persistence in the Spatial Distribution of Income’, Review of Economic Studies, 85 (1), March, 663–94
6. Esteban Rossi-Hansberg, Pierre-Daniel Sarte and Raymond Owens III (2010), ‘Housing Externalities’, Journal of Political Economy, 118 (3), June, 485–535
7. Maisy Wong (2013), ‘Estimating Ethnic Preferences Using Ethnic Housing Quotas in Singapore’, Review of Economic Studies, 80 (3), July, 1178–214
PART II HOUSING PRODUCTION AND SUPPLY
8. Edward L. Glaeser, Joseph Gyourko and Raven E. Saks (2006), ‘Urban Growth and Housing Supply’, Journal of Economic Geography, 6 (1), August, 71–89
9. Dennis Epple, Brett Gordon and Holger Sieg (2010), ‘A New Approach to Estimating the Production Function for Housing’, American Economic Review, 100 (3), June, 905–24
10. Albert Saiz (2010),’The Geographic Determinants of Housing Supply’, Quarterly Journal of Economics, 125 (3), August, 1253–96
PART III HOUSING MARKETS AND REAL ESTATE VALUATIONS
11. John M. Clapp (2004), ‘A Semiparametric Method for Estimating Local House Price Indices’, Real Estate Economics, 32 (1), February, 127–60
12. Andrew Caplin, Sumit Chopra, John Leahy, Yann LeCun and Trivikraman Thampy (2008), ‘Machine Learning and the Spatial Structure of Housing Returns’, Working Paper, December, 1–41
13. Philipe Bracke (2014),’House Prices and Rents: Microevidence from a Matched Dataset in Central London’, Real Estate Economics, 43 (2), June, 403–31
14. Stefano Giglio, Matteo Maggiori and Johannes Stroebel (2016), ’No-Bubble Condition: Model-Free Tests in Housing Markets’, Econometrica, 84 (3), May, 1047–91
PART IV HOUSING FINANCE, HOMEOWNERSHIP AND HOUSING IN WEALTH PORTFOLIO DECISIONS
15. John Geanakoplos (1997), ’Promises, Promises’ in W. Brian Arthur, Steven N. Durlauf and David A. Lane (eds), The Economy as an Evolving Complex System II, Chapter 12, Reading, Massachusetts, MA, USA: Addison-Wesley, January, 285–320
16. Marjorie Flavin and Takshi Yamashita (2002),’Owner-Occupied Housing and the Composition of the Household Portfolio’, American Economic Review, 92 (1), March, 345–62
17. Karl E. Case, John M. Quigley and Robert J. Shiller (2012),’Wealth Effects Revisited 1975–2012’, Critical Finance Review, 2 (1), July, 101–28
18. Jack Favilukis, Sydney C. Ludvigson, Stjn Van Nieuwerburgh (2017),’The Macroeconomic Effects of Housing Wealth, Housing Finance, and Limited Risk Sharing in General Equilibrium’, Journal of Political Economy, 125 (1), December, 140–223
19. Mathew Chambers, Carlos Garriga and Don E. Schlagenhauf (2009),’Accounting for Change in the Homeownership Rate’, International Economic Review, 50 (3), August, 677–726
Volume II
Acknowledgements
Introduction An introduction to both volumes by the editor appears in Volume I
PART I NEIGHBORHOOD DYNAMICS
1. Thomas C. Schelling (1969), ‘Models of Segregation’, American Economic Review Papers and Proceedings of the Eighty-first Annual Meeting of the American Economic Association, 59 (2), May, 488–93
2. Thomas C. Schelling (1971), ‘Dynamic Models of Segregation’, Journal of Mathematical Sociology, 1 (2), July, 143–86
3. Junfu Zhang (2004), ‘A Dynamic Model of Residential Segregation’, Journal of Mathematical Sociology, 28 (3), August, 147–70
4. Dejan Vinković and Alan Kirman (2006), ‘A Physical Analogue of the Schelling Model’, Proceedings of the National Academy of Sciences of the United States of America, 103 (51), December, 19261–65
5. Anna Hardman and Yannis M. Ioannides (2004),’Neigbors’ Income Distribution: Economic Segregation and Mixing in US Urban Neighborhoods’, Journal of Housing Economics, 13 (4), December, 368–82
6. Jan K. Brueckner and Stuart S. Rosenthal (2009), ‘Gentrification and Neigborhood Cycles: Will America’s Future Downtowns Be Rich?’, Review of Economics and Statistics, 91 (4), November, 725–43
7. David Card, Alexandre Mas and Jesse Rothstein (2008), ‘Tipping and the Dynamics of Segregation’, Quarterly Journal of Economics, 123 (1), February, 177–218
PART II DYNAMICS OF HOUSING PRICES
8. Raven E. Saks, Grace Wong and Min Hwang (2008), ‘Reassessing the Role of National and Local Shocks in Metropolitan Area Housing Markets’, Brooking-Wharton Papers on Urban Affairs, 9, January, 95–126
9. Sean Holly, M. Hashem Pesaran and Takashi Yamagata (2010), ‘A Spatio-temporal Model of House Prices in the USA’, Journal of Econometrics, 158 (1), September, 160–73
10. Katharina Knoll, Moritz Schularick and Thomas Steger (2017), ’No Price Like Home: Global House Prices, 1870 – 2012 ’, American Economic Review, 107 (2), February, 331–53
PART III HOUSING INDIVISIBILITY AND RENT CONTROL
11. Anna M. Hardman and Yannis M. Ioannides (1999),’Residential Mobility and the Housing Market in a Two-Sector Neoclassical Growth Model’, Scandinavian Journal of Economics, 101 (2), December, 315–35
12. Mamoru Kaneko, Tamon Ito and Yu-ichi Osawa (2006), ’Duality in Comparative Statics in Rental Housing Markets with Indivisibilities’, Journal of Urban Economics, 59 (1), January, 142–70
13. David H. Autor, Christopher J. Palmer and Parag A. Pathak (2014),’Housing Market Spillovers: Evidence from the End of Rent Control in Cambridge, Massachusetts’, Journal of Political Economy, 122 (3), June, 661–717
PART IV MACROECONOMIC ASPECTS OF HOUSING
14. Peter Englund and Yannis M. Ioannides (1993), ‘The Dynamics of Housing Prices: An International Perspective’, in Dieter Bös (ed.), Economics in a Changing World: Volume 3: Public Policy and Economic Organization, London, UK: St. Martin’s Press, 175–97
15. Morris A. Davis and Jonathan Heathcote (2005),’Housing and the Business Cycle’, International Economic Review, 46 (3), August, 751–84
16. Mateo Iacoviello and Stefano Neri (2010),’Housing Market Spillovers: Evidence from an Estimated DSGE Model’, American Economic Journal: Macroeconomics, 2, April, 125–64
17. Edward L. Glaeser, Joseph Gyourko, Eduardo Morales, Charles G. Nathanson (2014),’ Housing Dynamics: An Urban Approach’, Journal of Urban Economics, 81, May, 45–56
18. Matthew Rognlie (2015),’Deciphering the Fall and Rise in the Net Capital Share: Accumulation or Scarcity?’, Brookings Papers on Economic Activity, (1), Spring, 1–54
PART V DMP MODELS OF THE HOUSING MARKET
19. William C. Wheaton (1990), ‘Vacancy, Search, and Prices in a Housing Market Matching Model’, Journal of Political Economy, 98 (6), December, 1270–92
20. Monika Piazzesi and Martin Schneider (2009), ‘Momentum Traders in the Housing Market: Survey Evidence and a Search Model’, American Economic Review: Papers and Proceedings, 99 (2), May, 406–11
21. Allen Head and Huw Llyod-Ellis (2012),’Housing Liquidity, Mobility and the Labour Market’, Review of Economic Studies, 79 (4), 1559–89
22. David Genesove and Lu Han (2012), ’Search and Matching in the Housing Market ’, Journal of Urban Economics, 72 (9), July, 31–45
23. James Albrecht, Pieter A. Gautier and Susan Vroman (2016),’Directed Search in the Housing Market’, Review of Economic Dynamics, 19, January, 218–31
24. Yannis M. Ioannides and Jeffrey E. Zabel (2017),’Housing and Labor Market Vacancies and Beveridge Curves: Theoretical Framework and Illustrative Statistics’, Working Paper, 1–53
Index
Acknowledgements
Introduction Yannis M. Iaonnides
PART I HOUSING DEMAND, NEIGBHBORHOOD INTERACTIONS AND NEIGHBORHOOD CHOICE
1. Richard Dusansky and Paul W.Wilson (1993), ‘The Demand for Housing: Theoretical Considerations’, Journal of Economic Theory, 61 (1), October, 120–38
2. Yannis M. Ioannides and Jeffrey E. Zabel (2008), ‘Interactions, Neighborhood Selection and Housing Demand’, Journal of Urban Economics, 63 (1), January, 229–52
3. Edward L. Glaeser, Matthew E. Kahn and Jordan Rappaport (2008), ‘Why do the Poor Live in Cities? The Role of Public Transportation’, Journal of Urban Economics, 63 (1), January, 1–24
4. Patrick Bayer, Robert McMillan, Alvin Murphy and Christopher Timmins (2016), ‘A Dynamic Model of Demand for Houses and Neighbourhoods’, Econometrica, 84 (3), May, 893–942
5. Sanghoon Lee and Jeffrey Lin (2018), ‘Natural Amenities, Neighbourhood Dynamic, and Persistence in the Spatial Distribution of Income’, Review of Economic Studies, 85 (1), March, 663–94
6. Esteban Rossi-Hansberg, Pierre-Daniel Sarte and Raymond Owens III (2010), ‘Housing Externalities’, Journal of Political Economy, 118 (3), June, 485–535
7. Maisy Wong (2013), ‘Estimating Ethnic Preferences Using Ethnic Housing Quotas in Singapore’, Review of Economic Studies, 80 (3), July, 1178–214
PART II HOUSING PRODUCTION AND SUPPLY
8. Edward L. Glaeser, Joseph Gyourko and Raven E. Saks (2006), ‘Urban Growth and Housing Supply’, Journal of Economic Geography, 6 (1), August, 71–89
9. Dennis Epple, Brett Gordon and Holger Sieg (2010), ‘A New Approach to Estimating the Production Function for Housing’, American Economic Review, 100 (3), June, 905–24
10. Albert Saiz (2010),’The Geographic Determinants of Housing Supply’, Quarterly Journal of Economics, 125 (3), August, 1253–96
PART III HOUSING MARKETS AND REAL ESTATE VALUATIONS
11. John M. Clapp (2004), ‘A Semiparametric Method for Estimating Local House Price Indices’, Real Estate Economics, 32 (1), February, 127–60
12. Andrew Caplin, Sumit Chopra, John Leahy, Yann LeCun and Trivikraman Thampy (2008), ‘Machine Learning and the Spatial Structure of Housing Returns’, Working Paper, December, 1–41
13. Philipe Bracke (2014),’House Prices and Rents: Microevidence from a Matched Dataset in Central London’, Real Estate Economics, 43 (2), June, 403–31
14. Stefano Giglio, Matteo Maggiori and Johannes Stroebel (2016), ’No-Bubble Condition: Model-Free Tests in Housing Markets’, Econometrica, 84 (3), May, 1047–91
PART IV HOUSING FINANCE, HOMEOWNERSHIP AND HOUSING IN WEALTH PORTFOLIO DECISIONS
15. John Geanakoplos (1997), ’Promises, Promises’ in W. Brian Arthur, Steven N. Durlauf and David A. Lane (eds), The Economy as an Evolving Complex System II, Chapter 12, Reading, Massachusetts, MA, USA: Addison-Wesley, January, 285–320
16. Marjorie Flavin and Takshi Yamashita (2002),’Owner-Occupied Housing and the Composition of the Household Portfolio’, American Economic Review, 92 (1), March, 345–62
17. Karl E. Case, John M. Quigley and Robert J. Shiller (2012),’Wealth Effects Revisited 1975–2012’, Critical Finance Review, 2 (1), July, 101–28
18. Jack Favilukis, Sydney C. Ludvigson, Stjn Van Nieuwerburgh (2017),’The Macroeconomic Effects of Housing Wealth, Housing Finance, and Limited Risk Sharing in General Equilibrium’, Journal of Political Economy, 125 (1), December, 140–223
19. Mathew Chambers, Carlos Garriga and Don E. Schlagenhauf (2009),’Accounting for Change in the Homeownership Rate’, International Economic Review, 50 (3), August, 677–726
Volume II
Acknowledgements
Introduction An introduction to both volumes by the editor appears in Volume I
PART I NEIGHBORHOOD DYNAMICS
1. Thomas C. Schelling (1969), ‘Models of Segregation’, American Economic Review Papers and Proceedings of the Eighty-first Annual Meeting of the American Economic Association, 59 (2), May, 488–93
2. Thomas C. Schelling (1971), ‘Dynamic Models of Segregation’, Journal of Mathematical Sociology, 1 (2), July, 143–86
3. Junfu Zhang (2004), ‘A Dynamic Model of Residential Segregation’, Journal of Mathematical Sociology, 28 (3), August, 147–70
4. Dejan Vinković and Alan Kirman (2006), ‘A Physical Analogue of the Schelling Model’, Proceedings of the National Academy of Sciences of the United States of America, 103 (51), December, 19261–65
5. Anna Hardman and Yannis M. Ioannides (2004),’Neigbors’ Income Distribution: Economic Segregation and Mixing in US Urban Neighborhoods’, Journal of Housing Economics, 13 (4), December, 368–82
6. Jan K. Brueckner and Stuart S. Rosenthal (2009), ‘Gentrification and Neigborhood Cycles: Will America’s Future Downtowns Be Rich?’, Review of Economics and Statistics, 91 (4), November, 725–43
7. David Card, Alexandre Mas and Jesse Rothstein (2008), ‘Tipping and the Dynamics of Segregation’, Quarterly Journal of Economics, 123 (1), February, 177–218
PART II DYNAMICS OF HOUSING PRICES
8. Raven E. Saks, Grace Wong and Min Hwang (2008), ‘Reassessing the Role of National and Local Shocks in Metropolitan Area Housing Markets’, Brooking-Wharton Papers on Urban Affairs, 9, January, 95–126
9. Sean Holly, M. Hashem Pesaran and Takashi Yamagata (2010), ‘A Spatio-temporal Model of House Prices in the USA’, Journal of Econometrics, 158 (1), September, 160–73
10. Katharina Knoll, Moritz Schularick and Thomas Steger (2017), ’No Price Like Home: Global House Prices, 1870 – 2012 ’, American Economic Review, 107 (2), February, 331–53
PART III HOUSING INDIVISIBILITY AND RENT CONTROL
11. Anna M. Hardman and Yannis M. Ioannides (1999),’Residential Mobility and the Housing Market in a Two-Sector Neoclassical Growth Model’, Scandinavian Journal of Economics, 101 (2), December, 315–35
12. Mamoru Kaneko, Tamon Ito and Yu-ichi Osawa (2006), ’Duality in Comparative Statics in Rental Housing Markets with Indivisibilities’, Journal of Urban Economics, 59 (1), January, 142–70
13. David H. Autor, Christopher J. Palmer and Parag A. Pathak (2014),’Housing Market Spillovers: Evidence from the End of Rent Control in Cambridge, Massachusetts’, Journal of Political Economy, 122 (3), June, 661–717
PART IV MACROECONOMIC ASPECTS OF HOUSING
14. Peter Englund and Yannis M. Ioannides (1993), ‘The Dynamics of Housing Prices: An International Perspective’, in Dieter Bös (ed.), Economics in a Changing World: Volume 3: Public Policy and Economic Organization, London, UK: St. Martin’s Press, 175–97
15. Morris A. Davis and Jonathan Heathcote (2005),’Housing and the Business Cycle’, International Economic Review, 46 (3), August, 751–84
16. Mateo Iacoviello and Stefano Neri (2010),’Housing Market Spillovers: Evidence from an Estimated DSGE Model’, American Economic Journal: Macroeconomics, 2, April, 125–64
17. Edward L. Glaeser, Joseph Gyourko, Eduardo Morales, Charles G. Nathanson (2014),’ Housing Dynamics: An Urban Approach’, Journal of Urban Economics, 81, May, 45–56
18. Matthew Rognlie (2015),’Deciphering the Fall and Rise in the Net Capital Share: Accumulation or Scarcity?’, Brookings Papers on Economic Activity, (1), Spring, 1–54
PART V DMP MODELS OF THE HOUSING MARKET
19. William C. Wheaton (1990), ‘Vacancy, Search, and Prices in a Housing Market Matching Model’, Journal of Political Economy, 98 (6), December, 1270–92
20. Monika Piazzesi and Martin Schneider (2009), ‘Momentum Traders in the Housing Market: Survey Evidence and a Search Model’, American Economic Review: Papers and Proceedings, 99 (2), May, 406–11
21. Allen Head and Huw Llyod-Ellis (2012),’Housing Liquidity, Mobility and the Labour Market’, Review of Economic Studies, 79 (4), 1559–89
22. David Genesove and Lu Han (2012), ’Search and Matching in the Housing Market ’, Journal of Urban Economics, 72 (9), July, 31–45
23. James Albrecht, Pieter A. Gautier and Susan Vroman (2016),’Directed Search in the Housing Market’, Review of Economic Dynamics, 19, January, 218–31
24. Yannis M. Ioannides and Jeffrey E. Zabel (2017),’Housing and Labor Market Vacancies and Beveridge Curves: Theoretical Framework and Illustrative Statistics’, Working Paper, 1–53
Index
