Can the rise in housing price lead to crime? An empirical assessment of China

How responsive are housing markets in the OECD? National level estimates

“…Hence, in equilibrium, it is prices and the housing stocknot the level of constructionthat are simultaneously determined (Ihlanfeldt and Mayock, 2014[34]). This is the endogeneity bias considered in Saiz (2010 [22]) and the regional analysis performed below. However, other authors (Topel and Rosen, 1988[35]) extend this assumption by observing that endogeneity is also likely to affect investment dynamics and prices, since the adjustment of the housing stock from one equilibrium to another is driven primarily by investment.…”

“…Building on an analysis similar to Saiz (2010 [22]), the estimates of the supply elasticities turn out to be negatively affected by the presence of geographic or policy barriers. Where such barriers exist, housing supply cannot easily respond to price increases, even in competitive construction markets.…”

“…There is limited analytical work on the factors explaining differences in housing supply responsiveness across countries. Such research is comparatively more abundant when explaining differences across regional and metropolitan areas, especially in the United States (Green, Malpezzi and Mayo, 2005[21]; Saiz, 2010 [22]; Mayer and Somerville, 2000 [23]). The regional literature generally agrees on the role played by constraints to land use and urban development originating from either regulatory or geographic barriers.…”

“…Bearing these caveats in mind, it is still worth investigating how the variation of housing supply elasticities is affected by the combination of land use and urban development constraints, originating from either regulatory or geographic barriers in a way similar to that of Green, Malpezzi and Mayo (2005[21]) and Saiz (2010 [22]) in relation to US local markets. Even imperfectly captured, the cross-country heterogeneity in the estimated supply elasticities could still reflect largely the distinct institutional characteristics of each national housing market, as well as the geographic constraints to further development that are typical of each region.…”

“…7. In Saiz's (2010 [22]) analysis, available land is also identified by excluding steep surfaces. As this information is not available on a country-aggregate measure, such a correction is not included.…”