A New Approach to Estimating the Production Function for Housing
By Dennis Epple, Brett R. Gordon, Holger Sieg. 2010
180 citations recorded by the source corpus.
Dating to the classic works of Alonso, Mills, and Muth, the production function for housing has played a central role in urban economics and local public finance. This paper provides a new flexible approach for estimating the housing production function which treats housing quantities and prices as latent variables. The empirical analysis is based on a comprehensive database of recently built properties in Allegheny County, Pennsylvania. We find that the new method proposed in this paper works well in the application and provides reasonable estimates for the underlying production function.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/9e9719a0dfe5655c8d364b9576dc80efea2d65f3
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
Citations in the corpus
- Supply Constraints and Housing Market Dynamics (2013, background): “In this section I show the results of a series of simulations, first varying parameters one at a time to demonstrate the effect and then showing how the estimated parameters for two cities — San Francisco and Atlanta — imply substantially different amounts of volatility, even given the exact same…”
- Fundamental factors in the housing markets of China (2014, methodology): “To infer the coefficients of fundamental factors in the equation of equilibrium housing price appreciation, we first apply the method proposed by Epple et al. (2010a) to estimate the land-share parameter in the housing production function in urban China.”
- Quantitative Spatial Economics (2017, unknown): “Other mobile factors of production, such as physical capital that is used in a construction sector (see, e.g., Epple et al. 2010, Combes et al. 2016, Ahlfeldt et al. 2015), can be introduced.”
- The economic effects of density: A synthesis (2019, methodology): “As an example, we convert the density elasticities of land prices into density elasticities of housing rents assuming a Cobb-Douglas housing production function (Epple et al. 2010) and a land share of 0.25 (Combes et al. 2016; Ahlfeldt et al. 2015).”