Housing demand, regional house prices and consumption
Name
1051454057-MIT.pdf
Description
Full printable version
Size
2.41 MB
Format
Adobe PDF
Checksum (MD5)
94fbb5d4a25a68941616c9d9fcfff554
Author(s)
Liebersohn, Carl J
Advisor(s)
Jonathan A. Parker.
Date Issued
2018
Publisher
Massachusetts Institute of Technology
Abstract
This paper provides a new explanation for regional variation in the 2000-2012 housing and consumption boom and bust. Cities with a greater share of growing industries experienced larger housing demand shocks, larger house price increases from 2001-2006 and greater price declines from 2006-2011. Consistent with theory, price effects were stronger in housing-supply inelastic cities. City-level differences in housing demand are also correlated with supply elasticity. Controlling for industry, I estimate a durables consumption-house price elasticity of 0.08 from 2001-2006, 60% smaller than estimates without the controls. Post- 2006, the estimated elasticity is 0.19 and housing prices rather than local conditions explain consumption changes.
Description
Thesis: S.M. in Management Science Research, Massachusetts Institute of Technology, Sloan School of Management, 2018.
Cataloged from PDF version of thesis.
Includes bibliographical references (pages 24-25).
Subjects
Sloan School of Management.
MIT Department
Sloan School of Management
Terms of Use
MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission.
Persistent DSpace Link
